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How to get your permits fast or the benefits of using SB-423 in Alhambra

Alhambra faces a housing crisis that has made it challenging for property owners to improve or construct homes. The lengthy permitting process and high development costs are major obstacles, with discretionary permits often delaying or stopping projects due to subjective decision-making. SB-423 addresses this issue by providing a faster ministerial approval process for new housing units. This streamlined approach supports the development of both market-rate and affordable homes, contributing to solutions for the housing shortage.

What is SB-423 and how it helps Housing Development

SB-423 is a California law created to simplify the approval process for building two or more residential units. It allows qualifying projects, such as those including affordable housing for lower- and moderate-income residents, to use a streamlined ministerial approval process. This law sets clear deadlines for permits, speeding up the typically long and uncertain timeline for housing development. SB-423 extends the provisions of SB-35, which will remain effective until January 1, 2036—a limited timeframe given the duration of many construction projects.

How is SB-423 different from SB-35?

SB-423 places greater emphasis on encouraging mixed-income developments, addressing California’s housing needs more comprehensively. Unlike SB-35, which focuses mainly on low-income housing, SB-423 ensures that a broader range of projects can qualify, making it easier for developers to move forward with feasible plans.

How does SB-423 help projects get permits fast?

SB-423 allows projects to go through a faster approval process called ministerial approval, where permits are granted based only on clear, objective criteria. This means government agencies should approve or deny a project based on these established standards, without personal judgment. Ministerially approved projects do not need environmental reviews under CEQA. On the other hand, discretionary review permits give local agencies more flexibility, allowing them to base decisions on subjective factors like community impact or environmental concerns, and often require additional conditional use permits, which can lead to delays.

What can you build under SB-423 in Alhambra?

How many units do you need to build so that the project may qualify for SB-423?

You can build residential projects with at least 2 (two) units under SB-423.

Which mixed-use projects qualify under SB-423?

Under SB-423, mixed-use projects qualify if at least two-thirds of their floor area is dedicated to residential use.

Do the affordable unit rules apply?

Affordable unit rules apply to projects with 10 or more units. These projects should include 10% affordable units. Rental units should be priced for households earning 50% or less of the area median income (AMI), and ownership units should be for those earning 80% or less of AMI. Projects with 2-9 units are not required to have affordable housing.

What are the rights of the protected tenants?

SB-423 protects tenants by prohibiting the demolition of units rented within the past 10 years, rent-controlled units, or those with legal affordability restrictions. The law also prevents projects from moving forward if rental units were demolished in the last 10 years.

What are the labor protections under SB-423?

For labor protections, projects with 10 or more units should pay standard wages to workers. For projects with 50 or more units, developers should also participate in apprenticeship programs and offer health care benefits. Projects taller than 85 feet that are not fully affordable should hire skilled workers if they receive three or more qualifying bids.

Smaller projects with 2-9 units are exempt from these labor requirements.

Find out how many units your property can have to qualify for SB-423.

Which areas in Alhambra are eligible to get permits fast for a construction project?

Zoning districts eligible for SB-423 projects

In Alhambra, SB-423 projects can be built in areas zoned for residential or mixed-use development. These areas should be close to urban spaces, with at least 75% of the property's border next to already developed areas such as homes, businesses, or public spaces.

What are the rules about historical buildings?

Historic buildings listed on national, state, or local registers cannot be demolished under SB-423.

Does SB-423 allow projects built in high-risk locations?

SB-423 also has certain restrictions for high-risk and sensitive areas. Projects cannot be built in earthquake fault zones, wildfire hazard areas, flood plains, or floodways, and local rules will apply in these cases.

Are there environmental restrictions?

The law (SB-423) prohibits construction on prime farmland, wetlands, hazardous waste sites, protected wildlife habitats, or land with conservation easements.

Are SB-423 projects allowed in coastal zones?

For coastal zones, construction is not allowed under SB-423 until January 1, 2025. After this date, projects must follow specific restrictions, such as avoiding areas vulnerable to significant sea level rise, locations not included in certified coastal plans, and land that is not zoned for multi-family housing or prime agricultural land.

How fast can you get the permits under SB-423 in Alhambra?

Projects that propose 150 units or fewer:

Eligibility Review deadline: 60 days from submittal

Approval deadline, including Design Review: 90 days from submittal

For projects with more than 150 units:

Eligibility Review deadline: 90 days from submittal

Approval deadline, including Design Review: 180 days from submittal

SB 423 project approvals remain valid as long as the development includes public investment for housing affordability beyond just tax credits, and at least 50% of the units are affordable.

Are the pre-submittal requirements necessary?

Yes, before applying for SB-423 approval, project sponsors or property owners should complete certain steps, documented through a "Notice of Intent."

Tribal Notification

When the Notice of Intent is submitted, it triggers the requirement to notify California Native American tribes with ties to the project area. The city has 30 days to notify these tribes, and the tribes have 30 days to respond. If a tribe believes the project could affect cultural resources, the developer should collaborate with the tribe to address concerns. If no resolution is reached, the city will declare the project ineligible for SB-423, and the developer will need to seek other approval methods.

Public Meeting Requirements for Certain Areas

For projects in moderate- or low-resource areas or areas with high segregation and poverty, a public meeting should be held within 45 days of submitting the Notice of Intent. This meeting allows the public and local government to provide input. In cities with more than 250,000 residents, this meeting will take place during a regular Planning Commission session. Developers should confirm their attendance and review the public feedback before submitting the SB-423 application. If the city doesn’t organize the meeting, the developers should do so themselves.