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How to get your permits fast or the benefits of using SB-423 in Compton
Compton is facing a shortage of housing, and property owners are finding it difficult to upgrade or build new homes. The primary problem is the slow approval process and high costs of development. The permitting process, which relies on personal judgment, has led to delays or stopped projects altogether. To tackle this issue, SB-423 was introduced. It offers property owners a faster approval route known as the ministerial process for building new homes. This law speeds up the building of market-rate homes, helping to increase the availability of affordable housing and contribute to solving the state's housing crisis.
What is SB-423 and how it helps Housing Development
SB-423 is a California law designed to make the approval process faster and easier for housing projects with two or more residential units. The law simplifies the approval process for certain projects, like those offering affordable housing for low- and middle-income individuals, by using a more straightforward method. It also sets specific timelines for permits, reducing delays and offering a quicker alternative to the typical slow housing development process. SB-423 builds upon 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 mixed-income levels, not just affordable housing for low-income residents. This allows for a wider variety of housing options in California, where many projects have previously focused mainly on affordable housing for low-income households.
How does SB-423 help projects get permits fast?
SB-423 uses a clear, rule-based approval method called ministerial approval, where government agencies approve or deny projects based on fixed guidelines, rather than personal judgment. Projects using this method don’t require an environmental review under the California Environmental Quality Act (CEQA). In contrast, projects requiring discretionary permits undergo more thorough evaluations, including community impact and environmental concerns, which can take more time.
What can you build under SB-423 in Compton?
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 building’s space should be dedicated to housing purposes.
Do the affordable unit rules apply?
For projects with 2 to 9 units, there is no requirement to include affordable units, so all units can be rented or sold at market rates.
For projects with 10 or more units, at least 10% of the units should be affordable. Rental units should be priced 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 preventing the demolition of rental units, including those rented in the last 10 years, rent-controlled units, and other affordable housing. This also applies to properties where rental units were demolished within the past 10 years before seeking SB-423 approval.
What are the labor protections under SB-423?
SB-423 ensures fair labor practices for projects with 10 or more units, guaranteeing standard 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, for buildings taller than 85 feet that are not fully affordable, developers should hire skilled workers if they obtain at least three competitive 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 Compton are eligible to get permits fast for a construction project?
Zoning districts eligible for SB-423 projects
SB-423 projects can be built in residential or mixed-use zones. These areas should be located near existing cities or towns, with at least 75% of the property’s boundary adjacent to developed land, such as homes, businesses, or public spaces.
What are the rules about historical buildings?
SB-423 protects historic buildings listed on national, state, or local historic registers, preventing their demolition.
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?
Building in coastal areas is prohibited until January 1, 2025. After that, projects cannot be located on sites outside of approved local coastal plans, in areas at risk of rising sea levels, not zoned for multi-family housing, within 100 feet of a wetland, or on important agricultural land.
How fast can you get the permits under SB-423 in Compton?
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 has government support for affordable housing, beyond just tax credits, and at least half of the units are designated for affordable housing.
Are the pre-submittal requirements necessary?
Yes, the pre-submittal requirements are necessary for SB-423 approval. Before applying, the project owner or developer should take certain steps, including submitting a "Notice of Intent."
Tribal Notification
After the Notice of Intent is submitted, the city has 30 days to notify Native American tribes connected to the project area. The tribes then have 30 days to respond. If a tribe believes the project may affect their cultural resources, the developer should work with them to address 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 meeting allows the public and local officials to provide feedback. In cities with more than 250,000 people, this meeting will likely take place during a regular Planning Commission session. Developers should confirm attendance and review feedback before proceeding 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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