Cal. Government Code § 66204

(a) (1) A city, county, or city and county with a housing sustainability district approved by the department under Section 66202 shall be entitled to a zoning incentive payment, upon appropriation of funds by the Legislature for that purpose. (2) The amount of payment provided to a city, county, or city and county pursuant to this section shall be based on the number of new residential units constructed within the housing sustainability district. Replacement units constructed in accordance with Section 66208 and any units constructed by a developer who elects to not be subject to the housing sustainability district ordinance pursuant to subdivision (f) of Section 66205 shall not be considered new residential units for purposes of this section. (b) The department shall issue the first half of the zoning incentive payment to the city, county, or city and county upon preliminary approval of the housing sustainability district ordinance and issuance of the environmental impact report pursuant to Section 21155.10 of the Public Resources Code. The department shall issue the second half of the zoning incentive payment within 10 days of submission of proof of issuance of building permits by the city, county, or city and county for the projected units of residential construction within the zone, provided that the city, county, or city and county has received a certificate of compliance for the applicable year pursuant to Section 66203.