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

Beverly Hills is experiencing a housing shortage, with property owners finding it difficult to improve or build new homes. The main obstacles are long approval processes and high construction costs. The current system, which involves subjective decision-making, often causes delays and even stops projects from moving forward. To solve these problems, SB-423 was introduced. It provides a faster and simpler approval process known as the ministerial process. This streamlined approach makes it easier to build both regular and affordable housing, helping to ease the state’s housing crisis.

What is SB-423 and how it helps Housing Development

SB-423 is a California law created to speed up and simplify the approval process for housing projects that include two or more units. Projects that meet certain criteria, such as providing affordable housing for low- and middle-income households, can take advantage of a ministerial approval process. The law also sets timelines for permit approvals to prevent unnecessary delays. SB-423 builds on a previous law, SB-35, which will expire on January 1, 2036, and may not work for larger, long-term projects.

How is SB-423 different from SB-35?

SB-423 expands the scope of SB-35 by supporting mixed-income developments, instead of focusing mainly on low-income housing. This allows for a more diverse range of housing solutions and gives developers more flexibility in their planning.

How does SB-423 help projects get permits fast?

SB-423 uses a straightforward approval process called ministerial approval, where decisions are based on clear rules, not subjective judgment. This reduces delays and removes the need for lengthy environmental reviews under CEQA. In contrast, discretionary permits involve more complex considerations, like community impact and environmental concerns, often leading to longer approval times.

What can you build under SB-423 in Beverly Hills?

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?

To qualify under SB-423, at least two-thirds of the space in a mixed-use development should be dedicated to housing projects.

Do the affordable unit rules apply?

For smaller projects with 2 to 9 units, there is no requirement to include affordable housing, so developers can build market-rate units only.

For larger projects with 10 or more units, local affordable housing rules should be followed. At least 10% of the units should be affordable. For rental units, these should be available to households earning no more than 50% of the area median income (AMI). The ownership units should be affordable to those earning 80% or less of AMI.

What are the rights of the protected tenants?

SB-423 helps protect tenants by preventing the demolition of certain rental properties, including those rented in the past 10 years, rent-controlled units, and homes meant for affordable housing. It also applies to properties where rental housing was torn down in the last decade before applying for SB-423 approval.

What are the labor protections under SB-423?

For projects with 10 or more units, developers should ensure workers are paid standard wages, including subcontractors. Projects with 50 or more units also require healthcare benefits and apprenticeship programs. For buildings over 85 feet tall that are not fully affordable, developers should hire skilled labor if at least three qualified bids are submitted.

Projects with fewer than 10 units are not subject to these labor rules.

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

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

Zoning districts eligible for SB-423 projects

SB-423 allows projects to be built in areas designated for housing or mixed-use development. These areas should be close to already developed land, with at least 75% of their boundaries bordering existing homes, businesses, or public spaces.

What are the rules about historical buildings?

SB-423 protects historical buildings by preventing the demolition of structures listed in national, state, or local historic registers.

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 placed on prime farmland, wetlands, hazardous waste sites, protected wildlife habitats, or conservation easements.

Are SB-423 projects allowed in coastal zones?

Construction in coastal zones is prohibited until January 1, 2025. After that, building will be restricted in areas not part of certified coastal programs, on land at risk of flooding from rising sea levels, in zones where multi-family housing is not allowed, within 100 feet of wetlands, or on prime agricultural land.

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

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 in effect if the development receives government funding specifically for affordable housing (excluding tax credit programs) and at least 50% of the units are designated as affordable.

Are the pre-submittal requirements necessary?

Yes. Before submitting a project under SB-423, the property owner or developer should complete certain steps and submit a "Notice of Intent" to keep a record of these actions.

Tribal Notification

Once the Notice of Intent is filed, the city should inform Native American tribes associated with the area within 30 days. The tribes have 30 days to respond. If a tribe feels the project could impact their cultural resources, the developer should work with them to resolve any concerns. If they can't agree, the city will disqualify the project from SB-423, and the developer will need to pursue a different approval process.

Public Meeting Requirements for Certain Areas

For projects in neighborhoods with fewer resources or higher segregation and poverty levels, a public meeting should be held within 45 days of submitting the Notice of Intent. This allows the community and local government to provide input. In large cities with over 250,000 people, the meeting usually takes place during a regular Planning Commission session. Developers should confirm they attended and considered the feedback before submitting their application. If the city doesn't organize the meeting, the developers should do so themselves.

Check SB-423 eligibility for your property.

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