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How to get your permits fast or the benefits of using SB-423 in Santa Clarita
Santa Clarita faces a housing crisis, with property owners struggling to improve their properties or build new homes. This crisis was caused mainly by the lengthy permitting process and the high development costs. In particular, the discretionary permitting process, where decisions are made based on subjective judgments, ended up delaying or even stopping projects. SB-423 was issued to address the housing crisis. It allows property owners to go through a streamlined permitting process, called the ministerial process if they plan to build new units. This law helps speed up the development of market-rate units, increasing the availability of affordable homes and providing a solution to the state's housing shortage.
What is SB-423 and how it helps Housing Development
SB-423 is a California state law to streamline the approval process for 2 or more residential unit developments. It allows projects that meet objective criteria, such as building affordable housing requirements for lower- and moderate-income residents, to go through the ministerial approval process. The law introduces permit deadlines, designed to speed up the approval process and reduce the indefinite timeline typically associated with housing development. SB-423 is an extension of the previously issued SB-35, which is set to expire on January 1, 2036. This is a short time frame considering the length of a construction project.
How is SB-423 different from SB-35?
Compared with SB-35, the focus is on encouraging mixed-income developments, which helps to address California's housing needs more comprehensively. Before that, many projects weren't penciled out because of the exclusive low-income requirement.
How does SB-423 help projects get permits fast?
SB-423 allows projects to go through the ministerial approval permit process. The decision to issue a permit relies only on well-defined, objective standards. This means that government agencies must approve or deny a project based on clear criteria without using personal judgment. Ministerially approved projects are exempt from environmental reviews under CEQA. In contrast, the decisions under Discretionary review permits allow local agencies to use subjective judgment when approving or denying a project, often based on factors like community impact or environmental concerns, and require conditional use permits.
What can you build under SB-423 in Santa Clarita?
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).
What is the maximum number of units allowed for subdivision projects?
In Santa Clarita, the maximum number of units allowed is 10 or fewer for a subdivision project, which can be approved without a discretionary review.
Which mixed-use projects qualify under SB-423?
For SB-423 projects, at least two-thirds of the building's floor area should be used for residential purposes.
Do the affordable unit rules apply?
If you want to build 2-9 units, they can all be market-rate units. There is no need to have any affordable units.
For projects that propose 10 or more units, the local affordability rules apply, which means 10% of the units should be affordable. If you plan to rent the new units, the rate for the affordable units should be for households earning 50% or less 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 projects should protect tenants' rights by prohibiting the demolition of certain types of housing. This includes units that have been rented out in the last 10 years, units with rent control, or other legal restrictions to keep them affordable. 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?
Under SB-423, only projects that propose 10 or more units need to follow certain labor rules. These include ensuring all construction workers, including those hired by subcontractors, are paid standard wages. For projects with 50 or more units, developers should also participate in an apprenticeship program and provide health care benefits. Additionally, projects that are not fully affordable and are taller than 85 feet should hire a skilled workforce if they receive at least three qualifying 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 Santa Clarita 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 zoned for residential or mixed-use development. These areas must be close to existing urban areas, with at least 75% of the site’s perimeter adjoining developed land like homes, businesses, or public spaces.
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?
Building in coastal zones is prohibited until January 1, 2025. After that date, projects cannot be located on sites that are not part of a certified local coastal program or land use plan, in areas vulnerable to five feet of sea level rise, 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 Santa Clarita?
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 under SB-423, project sponsors or property owners should complete specific steps, documented through a "Notice of Intent."
Tribal Notification
Submitting the Notice of Intent requires notifying California Native American tribes linked to the area. The city has 30 days to send these notices, and tribes have 30 days to respond. If a tribe believes the project may impact cultural resources, the developer should work with them to find a solution. If no agreement is reached, the city will declare the project ineligible for SB-423, requiring the developer to seek other approval methods.
Public Meeting Requirements for Certain Areas
Projects located in moderate- or low-resource areas, or areas with high segregation and poverty, require a public meeting within 45 days of the Notice of Intent. This meeting lets the public and local officials share feedback. In cities with more than 250,000 residents, the meeting occurs during a regular Planning Commission session. Developers should confirm their attendance and review the feedback before submitting their SB-423 application. If the city doesn’t host the meeting, the developer should arrange it.
Check SB-423 eligibility for your property.
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