"No Net Loss" Law Memo

The purpose of the No Net Loss Law (Government Code Section 65863) is to ensure development opportunities remain available throughout the planning period to accommodate a jurisdiction’s regional housing need allocation, especially for lower- and moderate- income households. This memorandum provides guidance in understanding and implementing the No Net Loss Law.

Download the California Department of Housing and Community Development (HCD) Memo on No Net Loss Law.

The memorandum includes information on:

  • The background of the No Net Loss Law
  • The scope for the No Net Loss Law and guidelines to determine whether it applies to your jurisdiction
  • Responsibilities and requirements of the No Net Loss Law
  • Guidelines and parameters for maintaining sites
  • Jurisdiction actions
  • Lower-density development approval
  • California Environmental Quality Act (CEQA) considerations
  • Consequences of a failure to comply with the No Net Loss Law
  • Additional resources on No Net Loss and meeting your Regional Housing Needs Allocation (RHNA)