(a) The Legislature finds and declares all of the following:

(1) The lack of affordable housing is a critical problem that threatens the economic, environmental, and social quality of life in California.

(2) It is in the public interest to encourage priority housing development projects in which 100 percent of the units, exclusive of any manager’s unit or units, are reserved for lower income households, as defined in § 50079.5 of the Health and Safety Code, and ensure such developments are not unnecessarily delayed or caused to fail through abuse of the judicial process. To this end, this section shall be construed broadly.

(b) (1) (A) In all civil actions brought by any plaintiff to challenge the approval or permitting of a priority housing development project, including, but not limited to, actions brought pursuant to § 21167 of the Public Resources Code, a defendant may bring a special motion to strike the whole or any part of a pleading. The court shall deny the motion to strike if it determines that the plaintiff has established that there is a probability that the plaintiff will prevail on the claim.

(B) The court shall make its determination on the special motion to strike based on the pleadings, and supporting and opposing affidavits stating the facts upon which the liability or defense is based. Affidavits submitted with the pleadings may include a request for judicial notice of facts and documents relevant to the court’s determination.

(C) (i) If the court is unable to determine whether the plaintiff has established a probability that the plaintiff will prevail on the claim without reviewing the administrative record in an action where the administrative record is required, the court shall make its determination on the special motion to strike based on the documents specified in subparagraph (B) and the administrative record, once prepared.

(ii) If the court determines that an administrative record is required for its decision, the moving party may, notwithstanding the 60-day filing requirement pursuant to paragraph (4) and without appealing an order denying a special motion to strike pursuant to paragraph (7), file the special motion to strike within 60 days of the service of the administrative record or, in the court’s discretion, at any later time it deems proper.

(D) If the court determines that the plaintiff has established a probability that the plaintiff will prevail on the claim, neither that determination nor the fact of that determination shall be admissible in evidence at any later stage of the case, or in any subsequent action, and no burden of proof or degree of proof otherwise applicable shall be affected by that determination in any later stage of the case or in any subsequent proceeding.

(2) In any action subject to paragraph (1), a prevailing defendant on a special motion to strike shall be entitled to recover that defendant’s attorney’s fees and costs. If the court finds that a special motion to strike is frivolous or is solely intended to cause unnecessary delay, the court shall award costs and reasonable attorney’s fees to a plaintiff prevailing on the motion, pursuant to Section 128.5.

(3) This subdivision does not apply to any enforcement action brought in the name of the people of the State of California by the Attorney General, district attorney, or city attorney, acting as a public prosecutor.

(4) The special motion may be filed within 60 days of the service of the complaint or, in the court’s discretion, at any later time upon terms it deems proper. The motion shall be scheduled by the clerk of the court for a hearing not more than 30 days after the service of the motion unless the docket conditions of the court require a later hearing.

(5) All discovery proceedings in the action shall be stayed upon the filing of a notice of motion made pursuant to this section. The stay of discovery shall remain in effect until notice of entry of the order ruling on the motion. The court, on noticed motion and for good cause shown, may order that specified discovery be conducted notwithstanding this subdivision.

(6) For purposes of this section, “complaint” includes “cross-complaint” and “petition,” “plaintiff” includes “cross-complainant” and “petitioner,” and “defendant” includes “cross-defendant” and “respondent.”

(7) An order granting or denying a special motion to strike is appealable under Section 904.1.

(c) “Priority housing development” means a development in which 100 percent of the units, exclusive of any manager’s unit or units, will be reserved for lower income households, as defined in § 50079.5 of the Health and Safety Code, for at least 55 years.

(Added by Stats. 2023, Ch. 779, Sec. 1. (SB 439) Effective January 1, 2024.)