To address the housing crisis in California, Senate Bill 684 (SB 684), passed in 2023 but effective as of July 1, 2024, aims to simplify the approval process for small-scale for-sale housing projects, facilitate a quicker development process, and help to alleviate the state’s housing shortage. Specifically, SB 684 mandates local agencies to ministerially approve proposed subdivisions for housing projects that result in 10 or fewer parcels, provided they meet specific criteria.[1] Applications for up to 10 units as part of a housing development on lots subdivided using this process and for building permits for construction of the units are also ministerial.[2] This streamlined, CEQA-exempt approval process applies to tract maps on lots zoned for multifamily residential development, no larger than 5 acres, substantially surrounded by qualified urban uses[3] and “infill” sites.

Exemptions and Requirements

Qualified projects are exempt from complying with certain minimum requirements related to the size, width, depth, or dimension of an individual parcel.[4] Additionally, these projects are not required to form a homeowners’ association, except as mandated by the Davis-Stirling Common Interest Development Act.[5]

Expediated Approval Process

Under SB 684, local agencies must approve or deny an application for a parcel map or tentative map for a housing development project within 60 days of receiving a completed application.[6] If the agency fails to act within this 60-day period, the application is automatically deemed approved. If the agency denies the application, it must provide a comprehensive written report within the 60-day timeframe, outlining any defects or deficiencies and offering detailed instructions on how the applicant can correct these issues.

Limited Objective Standards

While local agencies may impose limited objective standards, they cannot enforce objective zoning, subdivision, or design standards that require a setback between units,[7] certain parking requirements, and other standards that may preclude development.[8]

SB 684 imposes certain standards, such as a minimum parcel size,[9] specific forms of ownership,[10] minimum density, and a maximum average total area of floorspace for the proposed housing units.[11] Moreover, the proposed project must not result in the demolition or alteration of existing affordable housing units.[12]

Density Limitations

If a parcel is listed on the local jurisdiction’s Housing Element, the proposed project must result in as many units, including affordable units, projected for that parcel.[13] If a parcel is not listed in the local jurisdiction’s housing element, the proposed project must result in at least as many units as the maximum allowable residential density.

Impact on Development

For developers, SB 684 offers a more predictable and expedited pathway for small-scale housing developments, reducing the time and costs associated with obtaining approvals. The legislation encourages development in already developed areas, promoting efficient land use and infrastructure.

SB 684 represents another significant step towards addressing California’s housing crisis by streamlining the approval process for small-scale housing projects. Significantly, unlike some prior efforts, SB 684 incorporates ministerial approvals for subdivisions, allowing for development of for-sale units where a project meets the qualifications.

FOOTNOTES

[1] Govt. Code § 66499.41(a)(1).

[2] Govt. Code §§ 65852.28, 65913.4.5.

[3] “Qualified urban use” means any residential, commercial, public institutional, transit or transportation passenger facility or retail use. “Substantially surrounded” means at least 75% of perimeter of the project adjoins or is separated only by an improved public right-of-way from, parcels that are development with qualified urban uses. (Pub. Res. Code §§ 21072, 21159.25; Govt. Code § 66499.41(2)(B).)

[4] Govt. Code § 66499.41(b)(1).

[5] Govt. Code § 66499.41(b)(2).

[6] Govt. Code § 65852.28(c)(2).

[7] Except as required in the California Building Code. (Govt. Code § 65852.28(b)(2)(C).)

[8] Govt. Code § 65852.28(b)(2).

[9] Newly created parcels are no smaller than 600 square feet. (Govt. Code § 66499.41(a)(2)(C).)

[10] (i) Constructed on a fee simple ownership lots, (ii) part of a common interest development, (iii) part of a housing cooperative, or (iv) owned by a community land trust. (Govt. Code § 66499.41(a)(4).)

[11] Average total area of floorspace for the proposing housing units does not exceed 1,750 net habitable square feet. (Govt. Code § 66499.41(a)(6).)

[12] Govt. Code § 66499.41(a)(8).

[13] Govt. Code § 66499.41(a)(5).