For purposes of this article, the following terms shall have the following meanings:

(a) “Housing development” or “development” means new or substantially rehabilitated residential dwelling units constructed within a Workforce Housing Opportunity Zone. A residential project may include commercial development limited to the first floor of the structure and occupying not more than 50 percent of the square foot area of the structure in which it is located. Development within a zone shall be consistent with the general use designation, density, building intensity, and applicable policies specified for the area in either a sustainable communities strategy or an alternative planning strategy, for which the State Air Resources Board, pursuant to subparagraph (H) of paragraph (2) of subdivision (b) of Section 65080, has accepted a metropolitan planning organization’s determination that the sustainable communities strategy or the alternative planning strategy would, if implemented, achieve the greenhouse gas emission reduction targets.

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(b) “Local government” means a city, county, or city and county, whether chartered or general.

(c) “Workforce Housing Opportunity Zone” or “zone” means an area of contiguous or noncontiguous parcels identified on a city or county’s inventory of land suitable for residential development pursuant to paragraph (3) of subdivision (a) of Section 65583 established pursuant to Section 65621.

(Added by Stats. 2017, Ch. 369, Sec. 2. (SB 540) Effective January 1, 2018.)