Understanding California's SB 330: What You Need to Know

Introduction

In California's housing legislation landscape, Senate Bill 330 (SB 330), also known as the Housing Crisis Act of 2019, plays a crucial role in addressing the state's housing crisis. Enacted in 2019, SB 330 aims to streamline housing development, eliminate construction barriers, and boost housing supply. This blog post explores the key aspects of SB 330 and examines its implications for developers in California.

California faces a complex housing crisis marked by soaring costs, a shortage of affordable units, and widespread homelessness. Lawmakers have introduced measures to spur housing production and affordability. According to John Burns Research & Consulting, national home prices have risen by 5% year over year, with Orange County experiencing the highest appreciation at 11%. SB 330 takes a comprehensive approach by targeting regulatory constraints and expediting the development approval process.

Key Provisions of SB 330:

1. Applicable to "Housing Development Projects": This is defined, pursuant to Government Code Section 6589.5(h)(2)(B), as the following:

• The project is a development project consisting of two or more residential units.

• The project is a mixed-use development project where at least two-thirds of the square footage comprises residential use.

• The project is a transitional or supportive housing development project."

2. Streamlined Approval Process: SB 330 imposes limitations on the types of local regulations that can hinder housing development. Cities and counties are prohibited from enacting new policies that would reduce the number of housing units allowed on a particular property. Additionally, the bill restricts the imposition of downzoning—lowering density limits—and moratoriums on housing construction.

3. Permit Streamlining: One of the central objectives of SB 330 is to accelerate the issuance of building permits for housing projects. Under the legislation, local governments must process applications for eligible housing developments within specified timeframes, ensuring timely approvals and minimizing bureaucratic delays. This entails a limit of five (5) public project hearings, excluding CEQA hearings.

4. Vested Rights: A new section under SB330 allows the filing of a preliminary application (“PA”) which vests ordinances, policies, and standards, including fees, in effect at time of filing. Development applications must be filed within 180 days following the filing of a PA to avoid expiration.

5. Affordable Housing Preservation: Recognizing the importance of preserving existing affordable housing stock, SB 330 includes provisions to safeguard affordable units from demolition or conversion without replacement. Developers seeking to remove affordable housing units must demonstrate a one-for-one replacement or provide comparable replacement housing.

Implications and Challenges:

Certain restrictions apply to developers filing under SB-330. The city cannot approve a housing project that demolishes protected units before January 1, 2025, unless they are replaced. Protected units include those for low-income households, occupied by low-income households, or vacated under the Ellis Act within the last 10 years. Replacement requires a Planning Division determination, with the proposed project providing a one-for-one replacement of affordable units, complete with recorded affordability covenants. Units with rent or price controls in the past five years occupied by above-income tenants must also be replaced with controlled units. Additionally, developers cannot file under SB-330 for projects in a Very High Fire Hazard Severity Zone.

Legislative Enhancements to SB 330: AB 1886 and SB 8 Strengthen Housing Protections

Two bills recently passed further strengthen and extend the provisions of SB 330, ensuring its continued effectiveness in addressing California's housing crisis:

• AB 1886: Passed by the legislature and signed into law in 2023, AB 1886 clarifies that submitting an SB 330 application before housing element certification "vests" a project's entitlement to use the Builder's Remedy, even after the housing element is certified. Declared as a restatement of existing law, AB 1886 also codifies HCD guidance, making it applicable to pending applications. This bill builds on the foundation of SB 330 by streamlining housing approvals and preventing local jurisdictions from imposing barriers to housing development.

  
  

• SB 8: This bill extends SB 330’s provisions, ensuring protections for housing projects remain in place until 2028. SB 8 strengthens safeguards against delays or policy changes, guaranteeing that projects can proceed under the rules and regulations in place at the time of application.

  
  

Together, these bills reinforce the goals of SB 330 by providing additional clarity and extending its protections, supporting California's efforts to boost housing production and tackle its ongoing housing crisis.

Conclusion:

Senate Bill 330 is a significant move to tackle California's housing shortage and affordability issues by streamlining the entitlement/development process, incentivizing housing production, and preserving affordable units. Our team is proactively staying updated on new 2023 bills to enhance our expertise and expedite the entitlement process. Reach out if you need assistance navigating the complexities of entitlement – we're here to help!

To learn more about this Senate Bill and guidance from CREDE's Forward Planning Division, please contact our Director of Consulting Services, Bob Garrison at [email protected]