Simplifying California SB 684

Develop Your Residential Projects with Confidence

In recent years, California has introduced a series of legislative measures designed to tackle the state’s growing housing crisis. Among these measures, California SB 684 stands out as a pivotal piece of housing legislation. For residential developers and builders, understanding the nuances of this bill is essential for navigating the regulatory landscape, especially if you’re involved in California infill housing development projects or small-scale housing projects. In this guide, we’ll explore what California SB 684 is, how it impacts residential development, and what builders need to know to take full advantage of the new opportunities it offers.

What is California SB 684?

California SB 684 is a significant piece of housing legislation aimed at streamlining the approval process for small-scale housing projects in California. The bill, which took effect on July 1, 2024, as part of the state’s broader efforts to increase the availability of affordable housing, primarily focuses on infill development projects—developments on underutilized or vacant land within existing urban areas.

The core of SB 684’s provisions centers on ministerial approvals, meaning developers can bypass the lengthy discretionary review processes, such as public hearings, CEQA reviews, and other bureaucratic hurdles. This change makes it easier and faster for builders to move forward with projects without being delayed by often unpredictable and time-consuming approval processes.

Key Provisions of SB 684

SB 684 is designed to reduce obstacles for residential developers, especially those engaged in California infill housing development projects. Below are the key provisions:

1. Streamlined Parcel Subdivisions: The legislation allows for ministerial approval of multifamily parcel subdivisions—up to 10 separate parcels—without requiring public hearings or CEQA review. This provision significantly expedites the process of dividing large plots of land into smaller, more manageable parcels for new housing development.
2. Ministerial Approval Process: Unlike the traditional discretionary approval process, which can be cumbersome and subject to delays, SB 684 ensures that projects meeting certain criteria are approved based solely on compliance with zoning laws and building codes. This greatly reduces the potential for political interference or delays due to public opposition.
3. Eligibility for Multifamily Housing: The bill is particularly beneficial for multifamily housing developers, as it facilitates the development of projects that include apartment buildings, townhomes, and condominiums. This provision aims to address the housing shortage in urban areas by making it easier to build within existing city limits.
4. Focus on Urban Areas: SB 684 specifically targets urban infill sites, which are often the most challenging areas to develop. By removing barriers to approval, the bill makes it more attractive for developers to repurpose vacant or underutilized land within city boundaries, rather than expanding into suburban or rural areas.

How Does SB 684 Benefit Residential Developers?

For residential developers, SB 684 presents a range of advantages, particularly when it comes to speed, efficiency, and cost-effectiveness:

1. Encouragement of Sustainable Development: SB 684 promotes sustainable growth by encouraging developers to focus on infill development, which is generally more environmentally friendly than sprawling suburban developments. These projects make use of existing infrastructure, reducing the need for new roads, utilities, and services, and helping to preserve open space.
2. Reduced Approval Time: One of the biggest challenges developers face in California is the time it takes to get projects approved. By reducing the need for public hearings and environmental reviews, SB 684 accelerates the entire process, allowing developers to break ground on projects more quickly and efficiently.
3. Cost Savings: The elimination of certain approval requirements also translates into cost savings for developers. Without the need for extensive environmental studies and public hearings, developers can save both time and money, which can be redirected to other parts of the project, such as construction or amenities.
4. Increased Project Feasibility: With faster approvals and lower costs, small-scale housing projects are now more financially viable, even in high-demand urban areas where land is scarce and expensive. SB 684 makes it easier for developers to secure financing and ensure that their projects remain on track.

Eligibility and Site Requirements for Residential Development

California’s SB 684 introduces several critical provisions designed to streamline the approval process for small-scale housing projects and infill development. These provisions help to focus the bill’s benefits on specific types of land and housing projects that meet particular criteria. Below, we highlight the essential eligibility requirements for sites and housing under SB 684, as well as the protections and exclusions built into the legislation.

Subdivisions for Multi-Family Residential Development

1. Lot Size: For projects under SB 684, the proposed lots must be less than 5 acres. This limitation ensures the legislation targets smaller infill projects rather than large-scale subdivisions in suburban or rural areas.
2. Zoning: The lots must be zoned for multi-family residential development. This includes areas designated under the “Multiple Residential” zoning category in the Department of Housing and Community Development’s zoning regulations. In addition, Commercial (C) and Public (P) zones are also eligible for subdivision under SB 684.

Environmental Exclusions and Protections

3. Protected Areas: SB 684 protects environmentally sensitive areas from being developed under the legislation. Specifically, projects under this bill cannot be located on lands that are:
   • Prime farmland or farmland of statewide importance.
   • Wetlands or land identified for conservation in a natural community conservation plan.
   • Habitat for protected species or lands under a conservation easement.

These exclusions are designed to ensure that California’s agricultural and environmentally sensitive lands remain protected from urban sprawl while promoting development in more suitable locations.

Demolition Protections

SB 684 includes several demolition protections to prevent the displacement of tenants in affordable housing. Under this legislation, projects cannot result in the demolition or alteration of housing that meets any of the following criteria:

1. Occupied Housing: Housing that has been occupied by a tenant in the last five years prior to the application for development, including vacant properties, cannot be demolished. This protects units that may have been occupied by tenants who would otherwise be displaced by the new development.
2. Affordable Housing: Housing subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to low, very low, or extremely low-income households cannot be demolished under SB 684.
3. Rent Stabilization Ordinance (RSO) Housing: Housing that is subject to the Rent Stabilization Ordinance (RSO) is also protected, ensuring that affordable housing options are not removed from the market due to new development projects.

Restricted Sites for SB 684 Projects

SB 684 provides a clear outline of restricted sites that cannot be developed under the legislation. These site exclusions aim to safeguard certain high-risk or ecologically sensitive areas. SB 684 projects cannot be located on the following types of sites unless specific conditions are met or additional approvals are granted:

1. High Fire Hazard Severity Zones: Areas identified as very high fire hazard severity zones are restricted, ensuring that development doesn’t occur in regions at significant risk of wildfires.
2. Hazardous Sites: Hazardous waste sites are excluded from SB 684 development unless the Department of Building and Safety (LADBS) verifies that certain safety standards and remediation requirements have been met.
3. Flood Zones: Regulatory floodways and special flood hazard areas are also restricted from SB 684 development, ensuring that projects are not built in areas prone to flooding, which could endanger residents and properties.
4. Earthquake Fault Zones: Sites within earthquake fault zones are excluded from development under SB 684 unless they pass specific safety checks and verification from the LADBS.

SB 684: Why It’s a Game-Changer for Developers

California’s housing crisis is well-documented, and SB 684 represents a forward-thinking approach to solving the problem. Addressing the approval process bottlenecks allows developers to focus on what matters most: building homes. Whether you’re engaged in infill residential development or tackling a small-scale housing project, this legislation provides a clearer path to success.

The bill directly addresses the state’s need for more housing by cutting through red tape, encouraging developers to build within existing urban boundaries, and ultimately reducing housing costs by making development projects more feasible. By enabling the construction of more housing units in less time, SB 684 holds the potential to significantly impact California’s housing supply in the coming years.

What This Means for Residential Builders

For residential builders, SB 684 provides new opportunities to expand their portfolios with less risk and greater ease. Builders who specialize in urban developments or have the capacity to work on California infill housing development projects should take advantage of this streamlined process to access the ministerial approval pathway. This could open the door to a broader range of projects that were previously mired in regulatory delays.

Additionally, the California legislature continues to introduce new laws that could further simplify the development process, so it’s essential for builders to stay informed on the latest updates, such as SB 1211 and other changes in California housing legislation.

Other Relevant Legislation: SB 1211 and Non-Ductile Concrete

While SB 684 is an important step toward easing the development process, it is not the only piece of legislation that builders should be aware of. SB 1211, for example, also offers significant implications for residential developers, particularly regarding accessory dwelling units (ADUs). This legislation expands the permissible number of ADUs on a property, providing developers with more opportunities to build secondary units on residential lots.

Conclusion

California’s SB 684 offers residential developers a significant opportunity to accelerate the pace of housing development in urban areas. With streamlined approvals, reduced costs, and an emphasis on infill development, this legislation makes it easier for developers to build small-scale housing projects that meet the growing demand for affordable housing.

If you’re a residential developer or builder looking to take advantage of California SB 684 and other legislative changes, contact Stone and Stryder, LLC today. With over 25 years of experience in construction project management, we can guide you through the complexities of the development process and help you make the most of California’s evolving housing laws. Let’s discuss your next project!