New California construction laws effective in 2026 streamline environmental reviews, expand housing near transit, and update building codes. CEQA exemptions increase for various projects, and transit-oriented development height limits rise with streamlined approvals. Title 24 introduces wildfire-resistant construction codes and electrification requirements. Private construction contracts face a 5% retention cap, standardized change order processes, and enhanced subcontractor disclosure. These changes accelerate development but raise compliance demands.
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