How SB 684 and SB 1123 Could Address California’s Housing Crisis
SB 684, effective since July 1, 2024, introduces a ministerial approval process for housing projects featuring up to 10 single-family homes in multifamily zoning districts. The law removes discretionary reviews, California Environmental Quality Act (CEQA) requirements, and appeals, creating a faster and more predictable path to construction. By July 1, 2025, SB 1123 will expand these benefits to include vacant lots in single-family zoning districts, further broadening the scope of housing development opportunities.
For California, where land-use regulations and environmental constraints have long slowed housing development, this streamlined approval process could help meet the increasing demand for affordable homeownership options.
A Solution to California’s Housing Crisis
California faces an unprecedented housing crisis, with demand far exceeding supply, particularly in high-cost coastal areas like Santa Barbara and Ventura County. The shortage of affordable homes has led to skyrocketing rents, long commutes for workers, and an increasing number of residents being priced out of their communities. SB 684 and SB 1123 offer a targeted approach to addressing these challenges by enabling small-scale, infill development that maximizes underutilized land and encourages homeownership.
By expediting approvals and eliminating some of the barriers that have historically slowed housing production, these laws can contribute to an increase in housing supply, helping to stabilize home prices and rental costs. Furthermore, by allowing for smaller, more affordable homes, these policies can provide attainable housing options for middle-income buyers who often fall between the cracks of subsidized housing programs and the high-cost private market.
Optimizing Land Use in Urbanized Areas
Under SB 684, eligible lots must be zoned for multifamily residential use, no larger than five acres, and located within an incorporated city or an urbanized area. SB 1123 will further allow small-scale subdivisions on vacant parcels in single-family zones, maximizing the potential of underutilized land. High-demand areas in California stand to benefit significantly from these provisions, as they enable gentle infill development without overwhelming existing infrastructure.
Faster Project Timelines & Reduced Costs
A key advantage of these laws is the expedited approval timeline. Local agencies have only 60 days to approve or deny a project application, and if no action is taken within that period, the project is automatically approved. This efficiency eliminates lengthy delays and reduces carrying costs for developers, making small-scale projects more viable. Additionally, SB 684 allows for the ministerial issuance of building permits before final subdivision maps are recorded, enabling construction to begin earlier and accelerating the delivery of new housing units.
Encouraging Affordable Starter Homes
The high cost of living has made it difficult for young professionals, families, and essential workers to afford homes. By enabling small-scale developments with naturally affordable units, SB 684 and SB 1123 encourage the creation of starter homes—compact, efficient residences that offer an attainable entry point into homeownership. These homes can be built under various ownership models, including fee-simple ownership, community land trusts, and housing cooperatives, providing flexibility to developers and buyers alike.
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The passage of SB 684 and SB 1123 represents a pivotal moment for housing policy in California. Embracing these changes could mean more affordable housing opportunities, a stronger local economy, and a community that remains vibrant, inclusive, and sustainable for generations to come.