California’s Latest Housing Bills
New housing bills addressing California’s housing crisis will go effective in 2025. Signed in September, these laws aim to increase housing supply and affordability by removing construction barriers, streamlining processes, and increasing density in high-demand areas. This includes redefining transit stops, expediting approvals for certain projects, expanding housing options, and reducing developer costs.
See Below our Summary of Each Major Law effective in 2025:
SUBDIVISIONS
SB 1123: Small Lot Subdivisions on Single Family Lots
Effective July 1, 2025
- As an add-on to SB 684, which streamlined ministerial approval for up to 10-unit small lot subdivisions for multi-family zoned lots, SB1123 will expand the existing law to apply to single-family zoned lots.
- Eligible single family zoned lots can be up to 1.5 acres, considered vacant, and must be substantially surrounded by urban uses.
- Vacant, in this senate bill, means having no permanent structure or an abandoned and uninhabitable structure.
- On single family zoned lots, divided parcels cannot be smaller than 1,200 sq ft.
- Similar to SB 684, objective standards (eg. front setback) are not allowed if they physically preclude the minimum density allowed under SB 1123.
- Local agencies are authorized to place height limits on these projects, but they can be no less than the existing underlying zoning allows.
- Both SB 684 and SB 1123 projects must be approved ministerially within 60 days.
SB 450: Expedites SB 9 Projects
Effective January 1, 2025
- Sets a 60-day deadline for local agencies to decide on SB 9 applications, which allow single-family lot splits and additional units.
- If no decision is made within 60 days, the application is automatically approved.
- The bill removes the 25% demolition limit for exterior walls, previously required by SB 9 to preserve neighborhood character.
- It prohibits local agencies from imposing new objective standards beyond those in the original SB 9 legislation, such as zoning rules, lot size requirements, or design criteria.
AB 3177: Reduces Barriers & Fees for Subdivisions and other Major Projects
Effective January 1, 2025
- Reduces traffic impact fees for housing within 1/2 mile of major transit stops.
- Prohibits road widening land dedications (where developers must give up land for free to widen roads) in transit-rich areas, with exceptions for public safety.
- Allows these dedications for housing outside transit areas with 500+ feet of street frontage, balancing development needs in different locations.
PARKING
AB 2553: Redefines “Major Transit Stop”
Effective January 1, 2025
- This law builds upon AB 2097 (2022), which prohibits minimum parking requirements for developments within 1/2 mile of public transit.
- Expands the definition of “major transit stops” to include bus stops with 20-minute service intervals (previously 15 minutes).
- It offers reduced traffic impact fees for developments near planned transit stops set to be completed within a year.
ADUs
SB 1211: Allows Additional ADUs on Multifamily Lots
Effective January 1, 2025
- Allows up to 8 detached ADUs on existing multifamily lots, not exceeding existing unit count.
- Permits 2 detached ADUs on lots with new proposed multifamily dwellings.
- Prohibits local agencies from requiring replacement of parking spaces when an uncovered parking area is converted to an ADU.
- Prohibits imposing unauthorized objective standards on ministerially approved ADUs.
DEVELOPMENT FEES
SB 937: Delays Most Development Fees Until CofO is Issued
Effective January 1, 2025
- Delays most development fees until final inspection or occupancy certificate issuance.
- Allows utility connection fees at service application, capped at actual connection costs.
- Applies to various projects, including 100% affordable housing, density bonus projects and small developments (10 or fewer units).
These bills form a comprehensive strategy to address the state’s housing issues. By expanding the definition of major transit stops (SB 2553), increasing flexibility for accessory dwelling units (SB 1211), streamlining approvals for certain subdivisions (SB 1123), deferring development fees (SB 937), promoting housing in transit priority areas (SB 3177), and setting deadlines for SB-9 housing application decisions with restrictions on imposing objective standards (SB-450), lawmakers are creating a more favorable environment for housing development.
How can Pattern Planning & Development Inc. help you utilize these new laws?
While promising, these measures’ true impact will only become apparent through implementation. Pattern Planning and Development Inc. offers expert guidance to navigate these new laws, optimizing your projects for California’s evolving housing landscape.
We can help you determine whether your property or project qualifies for any of these new laws, and how they may affect you. Our land use consulting services can help provide due-diligence support and/or managing the approval process for you. Each law has its own intricacies and we will utilize our experience to help you navigate the most ideal scenario for your property. Please contact us to learn more.