SB 423: Streamlining Housing Approvals in the Bay Area
Senate Bill 423, authored by State Senator Scott Wiener, significantly streamlines the approval process for housing projects in San Francisco and 18 other Bay Area cities. This landmark legislation bypasses lengthy discretionary reviews, expediting approvals for residential developments that include affordable housing components. By extending and expanding the provisions of the earlier SB 35, SB 423 reduces the typical approval timeline from over two years to just six months, transforming San Francisco from one of the slowest to one of the fastest cities in approving new housing. This change is expected to facilitate the construction of a broader range of housing projects, including market-rate and mixed-income developments, thereby contributing to the state's ambitious goal of building 2.5 million homes by 2031. Despite these advancements, challenges such as high construction costs and interest rates remain, and the specific implementation of SB 423 can vary across different jurisdictions.
Key Benefits of SB 423:
1. Expedited Approvals: SB 423 significantly reduces the time required for housing project approvals. In San Francisco, where approvals often take years, the new law aims to cut this down to just a few months[1][2].
2. Bypassing Discretionary Reviews: The law eliminates the need for discretionary reviews, which often delay projects. Instead, qualifying projects receive ministerial approval, bypassing local planning commission approvals and California Environmental Quality Act (CEQA) reviews[1][3].
3. Affordable Housing Requirements: To qualify for streamlined approval, projects must include at least 10% affordable housing or meet local inclusionary housing requirements if they are more stringent[1][4].
4. Wider Impact: While San Francisco is subject to annual reviews, 18 other Bay Area cities, including Palo Alto, Cupertino, and San Mateo, are also affected. These cities must comply with state housing element laws or face similar streamlined approval processes[1][3].
5. Increased Housing Production: By removing bureaucratic hurdles, SB 423 aims to boost housing production across the region, addressing the severe housing shortage and making it easier for developers to bring new projects to fruition[1][2].
Implications for Developers and Homeowners:
For developers and homeowners in the Bay Area, SB 423 presents an unprecedented opportunity to expedite housing projects. The law's streamlined processes reduce uncertainty and delays, making it more feasible to undertake new developments or renovations that add housing units. This is particularly beneficial in high-demand areas where housing approvals have historically been slow and cumbersome.
Conclusion:
In summary, SB 423 offers a transformative approach to housing approvals in the San Francisco Bay Area, enabling faster, more efficient development processes that can help meet the region's urgent housing needs.
Citations:
[1] https://therealdeal.com/sanfrancisco/2024/07/08/new-law-fast-tracks-housing-in-18-bay-area-cities-plus-sf/
[2] https://www.bizjournals.com/sanfrancisco/news/2024/07/01/sb-423-san-francisco.html
[3] https://www.bizjournals.com/sanfrancisco/news/2024/07/08/sb-423-san-francisco-bay-area-housing-streamlining.html
[4] https://www.reubenlaw.com/san-francisco-now-a-10-city-under-sb-423-sb-35/
[5] https://sfplanning.org/resource/sb423-application