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How to get your permits fast or the benefits of using SB-423 in Avalon
Avalon is dealing with a housing crisis, making it difficult for property owners to upgrade their properties or build new homes. The main reasons for this are the long permitting process and the high costs of development. The discretionary permitting process, which relies on subjective decisions, has often delayed or even stopped projects. To tackle this issue, SB-423 was introduced. It offers a faster and simpler permitting process, known as the ministerial process, for building new housing units. This law helps accelerate the construction of market-rate housing, increases the supply of affordable homes, and addresses the broader housing shortage in the state.
What is SB-423 and how it helps Housing Development
SB-423 is a California state law that simplifies the approval process for building 2 or more residential units. It allows projects that meet certain clear guidelines, like including affordable housing for low- and moderate-income residents, to go through a faster approval process. The law sets deadlines for permits, helping to speed up the approval process and reduce the long wait times usually associated with housing development. SB-423 extends the earlier SB-35 law, which will expire on January 1, 2036, a short period considering how long construction projects take.
How is SB-423 different from SB-35?
While SB-35 focused mainly on low-income housing, SB-423 encourages mixed-income developments, which can better meet California's overall housing needs. This change helps make more projects feasible, especially those that were previously limited by the requirement to focus only on low-income housing.
How does SB-423 help projects get permits fast?
SB-423 allows projects to go through a faster approval process based on clear, objective standards. This means government agencies should approve or deny a project based only on well-defined rules, without making subjective decisions. Projects that go through this process are also exempt from certain environmental reviews. In contrast, other approval processes let local agencies make subjective decisions based on factors like community impact or environmental concerns, often requiring extra permits.
What can you build under SB-423 in Avalon?
How many units do you need to build so that the project may qualify for SB-423?
The minimum number of units required for SB-423 projects is 2 (two).
Which mixed-use projects qualify under SB-423?
For SB-423, at least two-thirds of the building’s space should be used for residential living.
Do the affordable unit rules apply?
If you're planning to build 2-9 units, they can all be market-rate units, with no requirement for affordable housing.
For projects with 10 or more units, there are local rules for affordability. At least 10% of the units should be affordable. If the units are for rent, the affordable units should be priced for households earning 50% or less of the area's median income. If they are for sale, the affordable units should be priced for those earning 80% or less of the median income.
What are the rights of the protected tenants?
SB-423 protects tenants' rights by preventing the demolition of certain types of housing, such as those rented in the past 10 years, rent-controlled units, or properties with legal restrictions to keep them affordable. It also applies to properties where rental housing was demolished within the past 10 years before applying for SB-423 approval.
What are the labor protections under SB-423?
SB-423 has labor rules for projects with 10 or more units. These rules require that all construction workers, including subcontractors, are paid standard wages. For projects with 50 or more units, developers should also join an apprenticeship program and offer health care benefits. If the project is not fully affordable and is taller than 85 feet, they should hire skilled workers if they receive at least three qualified bids.
Projects with 2-9 units are not subject to these labor requirements.
Find out how many units your property can have to qualify for SB-423.
Which areas in Avalon are eligible to get permits fast for a construction project?
Zoning districts eligible for SB-423 projects
SB-423 projects can be built in areas designated for residential or mixed-use development. These areas should be near existing urban spaces, with at least 75% of the land's edges next to developed areas like homes, businesses, or public spaces.
What are the rules about historical buildings?
Historic buildings that are listed on national, state, or local registers cannot be torn down under SB-423.
Does SB-423 allow projects built in high-risk locations?
SB-423 projects cannot be built on earthquake fault zones, high fire hazard areas, flood plains, or floodways. These projects would have to follow the local restrictions.
Are there environmental restrictions?
Projects cannot be built on prime farmland, wetlands, hazardous waste sites, protected wildlife habitats, or conservation easements.
Are SB-423 projects allowed in coastal zones?
Building in coastal areas is not allowed until January 1, 2025. After that, projects cannot be built in areas that are not part of an approved local coastal plan, in areas at risk of rising sea levels, in zones not designated for multi-family housing, within 100 feet of wetlands, or on prime agricultural land.
How fast can you get the permits under SB-423 in Avalon?
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 stay valid as long as the development includes public funding for affordable housing, not just tax credits, and at least 50% of the units are affordable.
Are the pre-submittal requirements necessary?
Yes, before applying for an SB-423 project, the project sponsor or property owner should complete certain steps, which are documented in a "Notice of Intent."
Tribal Notification
The Notice of Intent triggers the requirement to inform California Native American tribes connected to the project area. The city has 30 days to notify the tribes, and the tribes have 30 days to respond. If a tribe feels the project will impact their cultural resources, the developer should work with the tribe to find a solution. If an agreement can't be reached, the city will declare the project ineligible for SB-423, and the developer will need to seek another approval process.
Public Meeting Requirements for Certain Areas
If the project is in a moderate or lower-income area, or an area with high poverty and segregation, a public meeting should be held within 45 days after the Notice of Intent is received. This meeting gives the public and local government a chance to share feedback. In larger cities (over 250,000 people), the meeting is held at a regular Planning Commission meeting. The developer should confirm attendance and review public comments before submitting the SB-423 application. If the local government doesn't organize the meeting, the developer should do so.
Check SB-423 eligibility for your property.
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