As California continues to grapple with a severe housing shortage, the state has introduced several key legislative changes aimed at addressing the crisis. Starting January 1, 2025, Senate Bill 450 (SB 450) and Senate Bill 1395 (SB 1395) will come into effect, ushering in significant changes to the housing development process. These laws are designed to encourage the construction of both market-rate and affordable housing, streamline approval processes, and reduce local barriers to development.
Senate Bill 450: Streamlining Housing in Single-Family Zones
SB 450 builds upon the California Housing Opportunity and More Efficiency (HOME) Act (SB 9), which was enacted in 2021. SB 9 allows the development of duplexes and lot splits in areas zoned for single-family homes. With SB 450 taking effect in 2025, the law strengthens these provisions and removes further regulatory barriers to promote higher-density housing in residential zones traditionally limited to single-family homes.
Key Features of SB 450
- Increased Housing Density: SB 450 clarifies the intent to allow increased housing density in single-family zones, making better use of available land and helping to address the housing shortage.
- Limiting Local Barriers: Local governments will be restricted from imposing excessive zoning, subdivision, or design standards that could obstruct or delay the development of projects permitted under SB 9.
- Faster Approval Process: Local agencies will be required to process applications for housing developments under SB 9 within 60 days, expediting approval and ensuring that projects proceed quickly.
- State Oversight: The California Department of Housing and Community Development (HCD) will have the authority to oversee and enforce compliance with these provisions, ensuring consistent implementation across the state.
Senate Bill 1395: Expanding Affordable Housing Opportunities
While SB 450 focuses on increasing housing density, SB 1395 tackles California’s urgent need for affordable housing. This bill introduces measures that aim to facilitate the development of more affordable housing units, particularly for low- and middle-income families.
Key Features of SB 1395
- Affordable Housing Expansion: SB 1395 expands eligibility for affordable housing programs, targeting residents who fall within low- and middle-income brackets. It aims to reduce the gap between the demand for affordable housing and its availability.
- Financial Incentives: The law provides additional financial incentives for developers to build affordable housing, such as tax credits and grants. These incentives aim to reduce the costs of development and make affordable housing projects more viable.
- Support for Local Governments: SB 1395 offers additional funding for local governments to assist in the development of affordable housing, including funding for infrastructure improvements and zoning changes necessary to accommodate new housing projects.
- Streamlined Approvals: Similar to SB 450, SB 1395 includes provisions to speed up the approval process for affordable housing projects, ensuring that these critical developments are not delayed by lengthy bureaucratic procedures.
Implications for Housing Development
The combination of SB 450 and SB 1395 signals a significant shift in California’s approach to housing development. SB 450 will increase housing density in single-family zones by facilitating duplexes and lot splits, while SB 1395 will focus on expanding access to affordable housing.
Both bills aim to streamline the development process by reducing local barriers, eliminating unnecessary regulatory hurdles, and expediting approval procedures. These changes are intended to make housing development faster, more efficient, and more accessible, ultimately helping California meet its ambitious housing goals.
Conclusion
California’s new housing laws—SB 450 and SB 1395—are designed to address the state’s severe housing shortage by promoting higher-density development and expanding access to affordable housing. As these laws take effect on January 1, 2025, they will help ease the housing crisis by removing barriers to development, accelerating the approval process, and providing financial incentives for developers. Together, these legislative measures represent a comprehensive strategy to increase both market-rate and affordable housing in California, ensuring that more residents can access safe, affordable homes.