SB 423: Streamlining Housing Approvals in San Francisco

Senate Bill 423 introduces significant changes to the housing approval process in San Francisco, building on the earlier SB 35 by further streamlining the approval of residential developments. This legislation is particularly impactful in San Francisco, where it mandates a shift from discretionary to ministerial approval for qualifying projects, thereby reducing the typical approval timeline from around two years to just six months. The law expands streamlined approval to include market-rate housing projects, not just affordable ones, and requires San Francisco to meet state housing goals with annual reviews. Despite these advancements, the specific implementation of SB 423 can vary, and challenges such as high construction costs and interest rates remain.

New Status:

As of June 28, 2024, San Francisco has been designated a "10% city" under SB 423 for the first time[1][2].

Review Timelines:

- 90 days for projects with 150 units or fewer  

- 180 days for projects with more than 150 units

Expanded Scope:

Expanded Scope: Unlike previous legislation (SB 35), SB 423 now applies to market-rate housing projects in San Francisco, not just affordable housing[3].

Streamlined Process:

The law mandates a simplified permitting procedure, bypassing local obstacles and reducing approval times significantly[3].

Environmental Review Exemption:

Eligible projects are exempt from extensive environmental reviews[4].

Planning Commission Bypass:

Most housing projects can now receive "over-the-counter" approvals, avoiding Planning Commission hearings and appeals to the Board of Supervisors[4].

Approval Time Reduction:

Expected to cut average entitlement time from two years to under six months[4].

Sunset Date:

SB 423 extends these provisions until 2036[5].

Controversy:

While aimed at addressing the housing crisis, some local officials express concerns about potential impacts on affordable housing and community input[3].

Conclusion:

This legislation marks a significant shift in San Francisco's housing approval process, aiming to accelerate housing production by streamlining approvals for both market-rate and affordable housing projects.

Citations:

[1] https://www.reubenlaw.com/san-francisco-now-a-10-city-under-sb-423-sb-35/

[2] https://sfplanning.org/resource/sb423-application

[3] https://www.yahoo.com/news/san-francisco-benefits-housing-law-035648622.html

[4] https://www.globest.com/2024/07/02/over-the-counter-project-approvals-triggered-in-san-francisco/?slreturn=20240730163325

[5] https://cayimby.org/legislation/sb-423/

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Fast-Tracking Housing in San Francisco: The Benefits of SF's New Approval Process for Property Owners

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SB 423: Streamlining Housing Approvals in the Bay Area