Just to give a little insight on this legislation, it has been described, rightfully so, as a boon to for-profit real estate developers so it's one of the least socialist things California has done in recent memory. It's stripping away local control and more or less forcing municipalities, in the limited geographies where this legislation applies, to allow housing to be built with far fewer government regulations. Frankly I'm shocked it passed, but just goes to show how bad the housing crisis has gotten.
That of course doesn't rebut your comment about RHNA reminding you of socialism, but bringing up socialism when this thread is about legislation that's about as capitalist as you're going to get in California is a bit ironic.
Edit: I'm not criticizing you by pointing out the irony, but since you said you're not that familiar with California I thought I'd mention how capitalist this legislation is.