What is SB-423 and how it helps Housing Development

SB-423 is a California law designed to make it easier to get approval for building two or more residential units. It allows projects that meet certain requirements, like including affordable housing for low- and moderate-income residents, to go through a faster approval process. This law sets clear deadlines for permits, speeding up the usually long and unpredictable approval process for housing projects. SB-423 builds on SB-35, which will stay in effect until January 1, 2036, a relatively short time for many construction projects.

How is SB-423 different from SB-35?

SB-423 focuses more on encouraging mixed-income developments, helping to address California's broader housing needs. Unlike SB-35, which mainly supports low-income housing, SB-423 allows a wider range of projects to qualify, making it easier for developers to move forward with their plans.

How does SB-423 help projects get permits fast?

SB-423 streamlines the approval process by using a method called ministerial approval, where permits are granted based on clear, objective standards. This means that government agencies should approve or deny projects according to these set rules, without personal judgment. Projects that go through ministerial approval do not need an environmental review under CEQA.

In contrast, discretionary review permits give local agencies more flexibility to make decisions based on factors like community impact or environmental concerns, often causing delays and requiring additional permits.

What can you build under SB-423 in Arcadia?

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

To qualify for SB-423, the project should include a minimum of 2 (two) residential units.

Which mixed-use projects qualify under SB-423?

To qualify for SB-423, mixed-use projects should have at least two-thirds of their floor space used for residential purposes.

Do the affordable unit rules apply?

Affordable housing requirements apply to projects with 10 or more units. These projects should include 10% affordable units. For rental units, the rent should be affordable for households earning 50% or less of the area’s median income (AMI), while for ownership units, they should be for those earning 80% or less of AMI. Projects with 2-9 units are not required to include affordable housing.

What are the rights of the protected tenants?

SB-423 protects tenants by preventing the demolition of units that have been rented in the past 10 years, rent-controlled units, or those with legal affordability restrictions. It also stops 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. If the project has 50 or more units, the developer should also participate in apprenticeship programs and provide health care benefits. For projects taller than 85 feet that are not entirely affordable, skilled workers should be hired if the project receives 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.

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

Zoning districts eligible for SB-423 projects

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

What are the rules about historical buildings?

SB-423 prevents the demolition of historic buildings that are listed on national, state, or local registers.

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

SB-423 restricts projects in high-risk areas. Construction is not allowed in earthquake fault zones, wildfire-prone areas, flood plains, or floodways, and local rules will also apply in these zones.

Are there environmental restrictions?

SB-423 also prohibits building on prime farmland, wetlands, hazardous waste sites, protected wildlife habitats, or land with conservation protections.

Are SB-423 projects allowed in coastal zones?

In coastal zones, SB-423 restricts construction until January 1, 2025. After this date, projects should follow specific rules, including avoiding areas at risk of significant sea level rise, locations not covered by certified coastal plans, and land that isn't designated for multi-family housing or prime agricultural use.

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

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 must complete certain steps, which are documented through a "Notice of Intent."

Tribal Notification

When the Notice of Intent is submitted, the city must notify California Native American tribes connected to the area. The city has 30 days to send the notice, and the tribes have 30 days to respond. If a tribe feels the project could impact cultural resources, the developer must work with the tribe to address their concerns. If no agreement is reached, the city will declare the project ineligible for SB-423, and the developer will need to find another way to get approval.

Public Meeting Requirements for Certain Areas

For projects in areas of moderate or low-resource areas or high levels of segregation and poverty, a public meeting must be held within 45 days of submitting the Notice of Intent. This meeting allows the community and local government to provide feedback. In cities with over 250,000 people, the meeting will be part of a regular Planning Commission session. Developers should attend and review the public feedback before submitting the SB-423 application. If the city doesn’t organize the meeting, the developer is responsible for doing so.

Check SB-423 eligibility for your property to plan your build.

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