SB 423 in California: A Developer’s Roadmap to Faster Approvals and Compliance
If you’re a developer in California, you’ve probably heard about SB 423. It’s the latest state housing law aimed at cutting red tape and getting more projects built—especially in high-demand markets like Los Angeles.
At its core, SB 423 makes the development approval process faster, more predictable, and less risky. It extends the benefits of SB 35, which has helped many multifamily and mixed-use projects bypass lengthy local reviews. But SB 423 also expands the scope, adds new labor rules, and applies in more locations, including certain coastal areas.
At JDJ Consulting Group, we work with developers, investors, and property owners to navigate zoning codes, secure entitlements, and expedite permits. That means we help clients turn SB 423’s opportunities into actual, buildable projects—without getting lost in paperwork or city politics.
This guide is your roadmap to understanding the law, qualifying your project, and making the most of SB 423 with the right strategy from the start.
SB 423 Approval Timeline
Understanding SB 423 and Its Legislative Background
From SB 35 to SB 423 — The Legislative Journey
Back in 2017, California passed Senate Bill 35 (SB 35). The goal was simple—get more housing built by removing certain local approval barriers. Developers who met specific criteria could skip public hearings and environmental reviews under the California Environmental Quality Act (CEQA), as long as their projects complied with objective local standards.
While SB 35 was a step forward, it wasn’t perfect. Some jurisdictions resisted, affordable housing targets weren’t always met, and the law was set to expire in 2026.
Enter Senate Bill 423. Signed in 2023, SB 423:
Extends the streamlined approval process until January 1, 2036.
Expands where it can be used, including parts of the California Coastal Zone.
Introduces clearer labor rules based on project size.
Tightens enforcement on cities that aren’t meeting their Regional Housing Needs Assessment (RHNA) targets.
Legislative Goals and Policy Drivers
SB 423 wasn’t just a legal update—it’s a response to California’s housing shortage and affordability crisis. The state’s objectives are clear:
Accelerate housing production in high-need areas.
Ensure mixed-income development with meaningful affordable housing.
Reduce legal challenges and delays.
Support labor standards to protect workers.
This balance—speed, affordability, and labor compliance—is where developers must pay close attention. And it’s also where a consulting partner like JDJ makes the difference between a stalled project and one that breaks ground on time.
Table 1 — Key Differences Between SB 35 and SB 423
| Feature | SB 35 (2017) | SB 423 (2023) |
|---|---|---|
| Expiration Date | 2026 | 2036 |
| Coastal Zone Inclusion | Mostly excluded | Certain areas included |
| Labor Standards | Less specific | Tiered by project size and type |
| Housing Element Compliance | Trigger for streamlining | Still applies, but with expanded enforcement |
| Affordable Housing Rules | Required | Strengthened and more clearly defined |
Key Provisions of SB 423 Every Developer Must Know
If you’re considering a new housing or mixed-use project, SB 423 can save you months—sometimes years—on the approval timeline. But you need to know if your project fits the rules.
Streamlined Ministerial Approval Explained
The biggest win under SB 423 is ministerial approval. In plain English, that means:
Your project gets reviewed against clear, written standards (like height limits, setbacks, parking ratios).
No public hearings where neighborhood opposition can slow things down.
No CEQA review for qualifying projects.
Decisions made on a set timeline, not whenever the city feels ready.
For developers, this means less uncertainty and more predictable budgets.
Expanded Geographic and Project Scope
SB 423 now applies in:
Cities and counties failing to meet housing goals.
Certain coastal zones (previously off-limits under SB 35).
Transit-adjacent areas and infill parcels.
This expansion is a game-changer for markets like Los Angeles, where coastal demand is high but approvals have been slow.
Table 2 — Project Types Eligible for SB 423 Streamlining
| Project Type | Eligible Under SB 423? | Notes |
|---|---|---|
| 100% Affordable Housing | Yes | Fastest pathway with highest approval certainty |
| Mixed-Income Multifamily | Yes | Must meet inclusionary housing requirements |
| Market-Rate Multifamily | Yes (if city non-compliant) | Must include affordable units |
| Commercial Only | No | SB 423 applies to residential or mixed-use housing |
| Coastal Zone Infill Housing | Yes (select areas) | Subject to environmental and coastal commission rules |
Eligibility Checklist for Developers Under SB 423
Not every housing project qualifies for the streamlined approval benefits under SB 423. If you dive into design or invest resources before confirming eligibility, you risk costly delays or outright rejection. That’s why at JDJ Consulting Group, one of our first steps with clients is a thorough eligibility assessment to ensure their project fits within SB 423’s requirements from day one.
Let’s break down the critical factors you need to consider before moving forward.
Site Location Criteria
Your development site must meet specific zoning and environmental conditions to be eligible for SB 423 streamlined approvals. Here’s what matters most:
Zoning Compliance:
Your project must conform to the site’s current zoning designation, which typically means it must be allowed in residential or mixed-use zones. If the property is zoned commercial only, it won’t qualify unless it’s mixed-use with residential components.
Why this matters: Local governments want to ensure your project fits their land use plans and won’t cause conflicts with surrounding neighborhoods.Transit Proximity:
Many SB 423 projects must be located within a certain radius (commonly half a mile) of major transit stops like bus hubs, train stations, or light rail. This encourages sustainable, transit-oriented development that reduces traffic and greenhouse gas emissions.
Why this matters: Proximity to transit increases project eligibility and supports state goals for reducing car dependency.Infill Location:
SB 423 prioritizes infill sites—parcels surrounded by existing development—to minimize urban sprawl and make efficient use of infrastructure. Building on undeveloped land outside urban boundaries usually disqualifies projects from streamlined approvals.
Why this matters: Infill projects support environmental goals and maximize use of public resources.Environmental Safety:
Sites on hazardous waste lists, toxic cleanup zones, or other environmentally sensitive areas generally do not qualify unless they’ve undergone proper remediation.
Why this matters: Ensuring the safety of residents and protecting the environment is non-negotiable, even with streamlined approvals.
At JDJ Consulting, we leverage GIS mapping and city records to quickly verify these site criteria before committing to next steps.
Project Design Standards
Even though SB 423 removes some discretionary reviews, your project still must meet objective design standards outlined in your city’s zoning code. These rules are non-negotiable and are the main basis for ministerial approval.
Common objective standards include:
Building Height Limits:
Your building can’t exceed the maximum height allowed in the zoning district, whether that’s measured in feet or stories.Setbacks from Property Lines:
Minimum distances between your building and the property edge must be maintained for light, air, and privacy.Parking Space Requirements:
Cities often require a minimum number of parking spots per unit or per square foot, especially outside dense urban cores.Open Space or Landscaping Minimums:
Your project might need to provide common areas, green spaces, or landscaping buffers.
Failing to meet any of these objective standards will likely lead to rejection under SB 423’s ministerial review process. That’s why JDJ’s zoning experts carefully review these design elements early to catch potential issues and adjust plans accordingly.
Affordable Housing Commitments
SB 423 requires projects to include affordable housing units as part of the development. The specifics can vary depending on:
Project Type: Rental projects often have different affordability thresholds than for-sale condominiums or townhomes.
Local Inclusionary Housing Ordinances: Some cities have stricter requirements that supplement SB 423’s baseline.
Duration of Affordability:
Affordable units generally must remain affordable for at least 55 years if rental, and 45 years if ownership.
Why is this so important?
Missing or under-delivering on affordable housing components is one of the leading reasons SB 423 applications get rejected or delayed. Affordable housing is a state priority to address the housing crisis, and SB 423 helps ensure developments contribute to that goal.
At JDJ, we help clients:
Model affordability ratios early to ensure financial feasibility.
Develop plans that meet or exceed city and state affordability standards.
Prepare the necessary legal covenants and documentation.
This upfront planning saves time and prevents costly redesigns or compliance issues.
SB 423 Eligibility Checklist
- ✓ Site Zoned Residential or Mixed-Use
- ✓ Within 0.5 Miles of Major Transit Stop
- ✓ Located on Infill Parcel
- ✓ Compliance with Objective Design Standards
- ✓ Affordable Housing Commitment Included
Ready to Fast-Track Your Project Under SB 423?
Contact JDJ Consulting Group today to get expert guidance on zoning, permits, and compliance.
Get Started NowStep-by-Step Process for Securing SB 423 Approval
Navigating the SB 423 approval process can feel complex, but having a clear roadmap simplifies everything. At JDJ Consulting Group, we guide developers through each step to avoid delays and ensure smooth approvals.
Here’s how we approach it:
1. Pre-Application Preparation
Before submitting anything to the city, preparation is key. This phase sets the foundation for a successful approval.
Site Eligibility Analysis:
We confirm the site meets SB 423 criteria, including zoning, transit proximity, and environmental safety. This reduces the risk of outright denial.Zoning Maps and Housing Element Status:
We check the local jurisdiction’s housing element compliance because SB 423 applies differently depending on whether a city is meeting its RHNA targets.Labor Compliance Requirements:
Understanding labor rules early — such as prevailing wage or apprenticeship mandates — allows accurate project budgeting and contract planning.Affordable Housing Planning:
We help determine the percentage and type of affordable units required, making sure your design and financing plans align with these obligations.
Spending adequate time in this step prevents surprises later that can stall or derail your project.
2. Application Submission
After confirming eligibility and preparing documents, the formal application can be submitted.
SB 423 Standard Application:
This includes project plans, site maps, proof of compliance with objective standards, and affordable housing details.City-Specific Supplemental Forms:
Some cities, like San Francisco and Gilroy, require additional supplemental forms specific to SB 423. JDJ ensures these are complete and accurate to avoid processing delays.Supporting Studies:
Depending on the project, this may include traffic analysis, noise studies, or environmental technical reports (when required outside SB 423’s CEQA exemption scope).
Our team coordinates with architects, planners, and legal experts to assemble a complete package that meets all city and state requirements.
3. Approval Timelines
One of SB 423’s biggest advantages is its strict, enforceable timelines:
| Project Size | Review Period for Consistency Determination | Total Approval Deadline |
|---|---|---|
| 150 units or fewer | 60 calendar days | 90 calendar days |
| More than 150 units | 90 calendar days | 180 calendar days |
If the city doesn’t respond within these timelines, the project can move forward by default — a powerful incentive for municipalities to act promptly.
4. Post-Approval and Permitting
Once SB 423 ministerial approval is granted:
Developers can immediately begin applying for building permits.
The permits themselves are subject to standard building code reviews but are no longer subject to discretionary design reviews or CEQA delays.
JDJ continues supporting clients during permit issuance to ensure no unnecessary bottlenecks occur.
By following this structured process and leaning on experts like JDJ Consulting Group, developers can avoid common pitfalls and capitalize on SB 423’s streamlined framework.
Practical Benefits of SB 423 for Developers
SB 423 is not just another law — it’s a game changer for California developers aiming to build more housing, faster. Here’s why it matters:
Reduced Approval Times
SB 423’s elimination of discretionary hearings and CEQA reviews for qualifying projects can shave months or even years off approval timelines. Instead of navigating a complex web of public hearings and environmental lawsuits, you move through clear, objective standards with firm deadlines.
Predictable Development Costs
Approvals based on objective standards mean less uncertainty about design changes or city-imposed requirements after submission. You avoid unexpected redesigns that drive up architectural and consulting fees.
Knowing labor compliance tiers upfront also helps with budgeting — no surprises when bidding or hiring contractors.
Increased Access to Infill and Coastal Projects
SB 423 expands eligibility to certain coastal and infill areas that were previously off-limits or required lengthy reviews. For developers, this opens prime sites near transit and amenities that meet market demand but were once tough to entitle.
Stronger Investment Confidence
Investors value predictable timelines and fewer regulatory hurdles. SB 423’s clear deadlines and ministerial review process reduce risk, making it easier to secure financing. This improved confidence can also translate to better loan terms and faster equity raises.
Pro Tip from JDJ Consulting Group
We’ve worked with clients who faced 18-month discretionary review processes on typical projects. By leveraging streamlining laws like SB 35—and now SB 423—these same projects moved from concept to approval in under six months.
SB 423 builds on these foundations and makes fast-tracking multifamily housing more reliable and permanent through 2036.
Potential Challenges Developers Should Anticipate
While SB 423 offers great opportunities for faster approvals, developers should be aware of common hurdles that can slow down or complicate projects. Knowing these in advance helps you prepare and avoid costly delays.
Local Resistance
Some cities resist streamlined approvals. Even when projects meet all objective standards, local officials may use subjective design guidelines or delay reviews. This can stall your project or lead to additional requirements.
How JDJ Helps:
We prepare thorough compliance packages showing your project fully meets SB 423’s objective standards. This reduces the chance of pushback. We also maintain good relationships with city staff to help keep the process moving.
Labor Compliance Complexity
SB 423 adds labor rules that vary by project size:
Projects with 10 to 50 units require prevailing wage.
Projects with over 50 units require prevailing wage plus apprenticeships and healthcare benefits.
Projects taller than 85 feet require a skilled and trained workforce.
Understanding and meeting these requirements can be complicated and costly.
How JDJ Helps:
We connect clients with labor compliance experts early. This way, labor costs and contracts are clear before construction starts, preventing surprises during bidding.
Environmental and Coastal Zone Limitations
Even though SB 423 now applies to some coastal zones, environmental rules still apply. The California Coastal Commission may require additional approvals or studies, which can add time and cost.
How JDJ Helps:
We work with environmental consultants and coastal planners to navigate these overlays. We help anticipate and address coastal and environmental issues early so your project keeps moving forward.
Affordable Housing Integration
Meeting affordable housing rules is a must, but it’s often tricky to balance affordability with project economics. Getting it wrong can cause delays or denials.
How JDJ Helps:
We model financial feasibility up front to find the right mix of market-rate and affordable units. We also assist with drafting legal documents to satisfy affordability covenants and make sure your financing stays on track.
How JDJ Consulting Group Helps Developers Succeed Under SB 423
At JDJ Consulting Group, we don’t just guide you through the rules — we help you turn SB 423 into a competitive advantage. Here’s how we make it easier for developers:
Land-Use and Zoning Expertise
Our experts start by pinpointing sites eligible for SB 423’s streamlining benefits. We:
Analyze zoning maps and city codes.
Identify opportunities for density bonuses and mixed-use development.
Ensure your project meets all objective design standards from the start.
This early work stops surprises and saves time.
Permit Expediting Services
We know city approval processes inside out. That means:
Submitting complete, error-free applications the first time.
Following up consistently to keep your project on schedule.
Resolving review issues quickly before they cause delays.
Our permit expediting can cut months off typical approval timelines.
Strategic Compliance Planning
We help you comply with SB 423’s affordable housing and labor rules by:
Advising on affordable unit percentages and income levels.
Connecting you with labor consultants for wage and apprenticeship compliance.
Coordinating with environmental specialists if needed.
This reduces risk and protects your project budget.
Real Project Success Story
A recent developer client had a 90-unit infill project stuck for over a year. Using our SB 35 experience (the foundation for SB 423) and expediting strategies, we:
Cut approval time to just 6 months.
Handled labor compliance before bidding to avoid surprises.
Helped the project break ground ahead of schedule.
With SB 423’s expanded rules, future projects can expect even smoother and faster paths to approval.
SB 423 in the Context of Other California Housing Laws
SB 423 doesn’t operate in a vacuum. It’s part of a larger state effort to tackle California’s housing shortage through multiple laws working together. Understanding how SB 423 fits in helps developers plan smarter and take full advantage of all available tools.
Interactions with AB 2011 and SB 6
AB 2011 expands the types of parcels eligible for streamlined housing approvals, particularly in urban areas with transit access. It complements SB 423 by broadening where development can happen without discretionary review.
SB 6 requires cities to allow up to 10 units per parcel in areas zoned for single-family homes, making more land available for multifamily projects.
Together, these laws create more pathways for housing development. JDJ Consulting helps clients navigate which law best fits their project or how to combine benefits.
CEQA Reform Trends
SB 423 continues California’s trend toward limiting environmental review delays for housing projects. While CEQA remains a vital environmental protection law, new reforms encourage ministerial approvals that cut down on lawsuits and lengthy studies.
For developers, this means projects that meet objective standards can move forward faster, without the usual environmental red tape.
RHNA Compliance Pressure
The Regional Housing Needs Assessment (RHNA) requires cities to plan for enough housing to meet demand. Many jurisdictions are behind on their RHNA goals.
SB 423 applies particularly in places that are not meeting their RHNA targets. This gives developers a stronger chance of approval if the city wants to comply with state housing mandates.
JDJ Consulting Group closely monitors RHNA compliance in local jurisdictions to advise clients where SB 423 applies most effectively.
Common Challenges in SB 423 Projects
Estimated Time Saved Using SB 423
Typical discretionary review: 12-24 months
SB 423 streamlined review: 6-9 months
(Based on JDJ Consulting Group project experience)
Best Practices for Developers Leveraging SB 423
To fully benefit from SB 423, developers should adopt certain best practices — things JDJ Consulting Group recommends to every client:
Early Engagement with Experts
Start with a land-use consultant and zoning expert before purchasing property or designing plans. Early advice helps identify eligible sites and avoid costly mistakes.
Conducting Objective Standard Reviews
Review all city zoning codes carefully to ensure your project meets height, setback, parking, and landscaping rules. A small design tweak can be the difference between approval and rejection.
Preparing for Labor Negotiations
Labor compliance is complex but mandatory. Engage with unions and labor boards early to understand wage and apprenticeship obligations. JDJ can connect you with trusted labor compliance partners.
Integrating Affordable Housing Strategically
Plan affordable units in a way that balances community benefit and project feasibility. Use financial modeling to test different mixes and secure the best financing options.
Maintaining Clear Communication with City Staff
Building relationships with planning and permitting staff smooths the review process. JDJ helps clients navigate these relationships professionally and effectively.
Following these practices not only helps you get SB 423 approval but can save time and money throughout your project lifecycle.
Future Outlook for SB 423 and California Development Policy
SB 423 marks a significant step forward in California’s efforts to address its housing crisis, but the landscape continues to evolve. Developers and consultants alike should stay informed about potential changes and market shifts.
Legislative Amendments to Watch
The legislature regularly updates housing laws in response to market conditions and political priorities. Possible future amendments to SB 423 or related laws could:
Further expand eligible project types or geographic areas.
Introduce new affordability or labor standards.
Adjust CEQA exemptions to balance environmental concerns and housing needs.
At JDJ Consulting Group, we track these legislative changes closely to advise clients on adapting their projects proactively.
Market Response
Developers and investors are increasingly recognizing the value of streamlining laws like SB 423. The promise of faster approvals and clearer rules encourages more infill and mixed-use projects in urban areas.
This shift is also fueling new partnerships between public agencies and private developers, aligning incentives to meet California’s housing goals.
Opportunities in Los Angeles and Coastal Markets
Los Angeles, as a high-demand market with complex zoning and coastal restrictions, stands to benefit greatly from SB 423’s expanded scope.
JDJ Consulting Group’s deep expertise in Los Angeles zoning, coastal regulations, and permit expediting uniquely positions us to help developers navigate these opportunities and challenges.
Conclusion
SB 423 offers developers a powerful roadmap to faster, more predictable housing approvals in California. By extending and expanding the streamlined approval process, it addresses critical barriers that once slowed multifamily and mixed-use projects.
However, success under SB 423 requires careful planning, strict adherence to objective standards, and strategic compliance with affordability and labor rules.
That’s where JDJ Consulting Group comes in. Our combined expertise in zoning consulting, entitlement strategy, and permit expediting ensures developers don’t just understand SB 423 — they use it as a tool to unlock project potential and meet California’s housing needs efficiently.
If you’re ready to take advantage of SB 423 and accelerate your development projects, contact JDJ Consulting Group today. Let’s work together to turn regulatory complexity into a clear path forward. Call us at (818) 233-0750 or email us at sales@jdj-consulting.com to discuss your project details with our consultants.
SB 423 Approval Process Flowchart
Pre-Application Preparation
Application Submission
City Review & Approval
Building Permits Issued
SB 423 Eligibility Quiz
Frequently Asked Questions: SB 423 in California
What is SB 423 and how does it affect housing development in California?
SB 423 is a California law that extends and expands streamlined approval processes for certain housing projects. It helps developers get faster, ministerial approvals by meeting objective standards, reducing delays caused by discretionary reviews and environmental assessments.
Which projects qualify for SB 423 streamlined approval?
Projects that meet zoning, transit proximity, infill location, and affordable housing requirements generally qualify. Eligible developments include multifamily and mixed-use housing, especially in cities not meeting housing targets or in select coastal zones.
Does SB 423 apply to single-family home developments?
No, SB 423 primarily applies to multifamily and mixed-use residential projects. Single-family homes are usually not eligible for the streamlined approval process under this law.
How does SB 423 affect the California Environmental Quality Act (CEQA) review?
SB 423 allows qualifying projects to bypass CEQA’s lengthy environmental review process by providing ministerial approval based on objective standards, thus significantly shortening the timeline to approval.
What affordable housing requirements are included under SB 423?
SB 423 requires projects to include a percentage of affordable units that remain affordable for at least 55 years (for rentals) or 45 years (for ownership). These requirements vary by project type and local ordinances.
What labor standards must developers follow under SB 423?
Labor rules vary by project size: projects with 10+ units must pay prevailing wage, projects over 50 units require apprenticeships and healthcare benefits, and projects taller than 85 feet require a skilled, trained workforce.
How long does the city have to approve a project under SB 423?
Cities must review projects with 150 or fewer units within 60 days, and larger projects within 90 days. Failure to respond allows the project to proceed by default, accelerating approvals.
Can SB 423 be used for projects in coastal zones?
Yes, SB 423 expands streamlined approval to certain coastal areas, but projects may still be subject to California Coastal Commission review and additional environmental safeguards.
How does SB 423 interact with other housing laws like SB 35?
SB 423 builds on SB 35 by extending timelines, expanding eligible locations, and adding labor requirements. Both laws provide pathways for streamlined approvals but SB 423 offers broader and longer-lasting benefits.
What role does JDJ Consulting Group play in SB 423 projects?
JDJ Consulting Group assists developers by assessing eligibility, navigating zoning codes, preparing applications, expediting permits, and ensuring compliance with affordable housing and labor requirements to fast-track approvals.
What are common challenges when using SB 423?
Common challenges include local resistance, navigating labor compliance, managing coastal and environmental rules, and meeting affordable housing obligations. Early planning and expert guidance help overcome these obstacles.
How can developers maximize the benefits of SB 423?
Maximizing SB 423 requires early expert consultation, careful site and design reviews, strategic affordable housing integration, proactive labor compliance planning, and maintaining clear communication with city staff throughout the process.
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