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How to get your permits fast or the benefits of using SB-423 in Cerritos
Cerritos is facing a housing shortage, with property owners having difficulty improving or building new homes. This issue is mainly due to the slow permitting process and high development costs. Specifically, the permitting process, which relies on personal judgment, has caused delays or prevented projects from moving forward. SB-423 was introduced to help solve this problem. It offers property owners a faster approval process, known as the ministerial process, for building new homes. This law helps speed up the construction of market-rate homes, making more affordable housing available and contributing to solving the state's housing shortage.
What is SB-423 and how it helps Housing Development
SB-423 is a California law that makes it easier and quicker to get approval for projects with 2 or more residential units. It speeds up the process by allowing certain projects, like those providing affordable housing for low- and middle-income residents, to go through a ministerial approval process. The law also sets clear deadlines for permits, reducing delays and offering a quicker option than the usual slow housing development process. SB-423 builds on a previous law, SB-35, which will expire on January 1, 2036, limiting the time available for long-term projects.
How is SB-423 different from SB-35?
SB-423 differs from SB-35 by supporting projects that include a mixed-income level, not just affordable housing for low-income people. This helps meet a wider range of housing needs in California, where many projects have focused only on affordable housing for lower-income residents.
How does SB-423 help projects get permits fast?
SB-423 uses a simple approval process, known as ministerial approval, where decisions are made based on clear, fixed rules. This means government agencies approve or deny projects based on set guidelines, rather than personal opinions. Projects that go through this process don’t need an environmental review under the California Environmental Quality Act (CEQA). In contrast, discretionary permits require more detailed assessments, considering factors like community impact and environmental concerns, which can take more time.
What can you build under SB-423 in Cerritos?
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 for SB-423, a building should use at least two-thirds of its space for a housing project.
Do the affordable unit rules apply?
For projects with 2 to 9 units, there’s no requirement to include affordable units, so all the units can be market-rate.
For projects with 10 or more units, at least 10% of the units should be affordable. Rental units should be affordable for households earning 50% or less of the area median income (AMI), while ownership units should be affordable for households earning 80% or less of the AMI.
What are the rights of the protected tenants?
SB-423 protects certain tenants by stopping the demolition of rental units, including those rented in the past 10 years, rent-controlled units, and other affordable housing. This also applies to properties where rental units were demolished within the last 10 years before applying for SB-423 approval.
What are the labor protections under SB-423?
SB-423 ensures labor protections for projects with 10 or more units, guaranteeing fair wages for all construction workers, including subcontractors. For projects with 50 or more units, developers should provide healthcare benefits and participate in apprenticeship programs. Additionally, if a building is over 85 feet tall and not fully affordable, developers should hire skilled workers if they receive at least three competitive bids.
Projects with 2 to 9 units don’t need to follow these labor protections.
Find out how many units your property can have to qualify for SB-423.
Which areas in Cerritos 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 must be near existing urban spaces, with at least 75% of the property’s boundary next to developed land, such as homes, businesses, or public areas.
What are the rules about historical buildings?
Historic buildings listed on national, state, or local historic registers cannot be demolished 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 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 banned until January 1, 2025. After that, projects cannot be built on sites that are not part of a certified local coastal program or land use plan, in areas at risk of rising sea levels, not zoned for multi-family housing, within 100 feet of a wetland, or on prime agricultural land.
How fast can you get the permits under SB-423 in Cerritos?
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 approvals remain valid as long as the project receives government support for affordable housing, beyond just tax credits, and at least 50% of the units are designated as affordable.
Are the pre-submittal requirements necessary?
Yes, before applying for SB-423 approval, the project owner or developer should complete certain steps, including submitting a "Notice of Intent."
Tribal Notification
Once the Notice of Intent is submitted, the city should notify any Native American tribes linked to the project area within 30 days. The tribes then have 30 days to respond. If a tribe believes the project could affect their cultural resources, the developer needs to work with them to address the concerns. If no agreement is reached, the city will reject the project under SB-423, and the developer will need to explore other approval options.
Public Meeting Requirements for Certain Areas
For projects in areas with moderate or low resources, high segregation, or poverty, a public meeting should be held within 45 days of submitting the Notice of Intent. This gives the public and local officials a chance to provide feedback. In larger cities (over 250,000 people), the meeting will likely take place during a regular Planning Commission session. The developer should confirm their attendance and review the public comments before continuing with the SB-423 application. If the local government doesn’t organize the meeting, the developers should do so themselves.
Check SB-423 eligibility for your property.
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