Streamlined Multifamily Housing Approval (SB 423)

Senate Bill 423 (SB 423 and Government Code section 65913.4), formerly known as SB 35, provides a streamlined and ministerial review path for projects in jurisdictions that are not meeting State housing goals (Regional Housing Need Allocation, or RHNA) at both lower income levels and market-rate income levels. Ministerial projects do not require the approval through a public hearing, review under the California Environmental Quality Act (CEQA), or Neighborhood Notification. In the previous RHNA cycle, San Francisco successfully met its housing production goal for higher income housing but fell short in meeting the goal for lower income units. As a result, primarily affordable housing projects received ministerial review.

SB 423 requires San Francisco – unlike any other jurisdiction in the State – to report our RHNA compliance in 2024 (instead of 2026). In our new, shortened RHNA cycle, San Francisco has also fallen short of meeting both lower income and market rate housing goals. Consequently, market-rate projects that meet specific eligibility criteria will now receive ministerial review, in addition to affordable housing projects (eligibility criteria are outlined in the application).

Effective June 28, 2024, the following project types may be approved ministerially:

• Code complying projects with 2-9 dwelling units
• Code complying projects with 10 dwelling units that meet San Francisco’s Inclusionary affordable housing requirements
• Code complying projects with 11+ dwelling units that meet San Francisco’s Inclusionary affordable housing requirements, with a minimum of 10% of the dwelling units restricted as affordable to households at 50% AMI (rental) or 80% AMI (ownership)

The Planning Department’s timeline to review these ministerial projects is as follows:

• For projects with 150 dwelling units or fewer: 90 days
• For projects with more than 150 dwelling units: 180 days

There are preapplication requirements for SB 423 projects. SB 423 requires an applicant to complete notification to the California Native American Tribes, and, for projects in certain locations, hold an informational hearing at the Planning Commission prior to submitting an application for ministerial approval. (See CA Govt. Code Section 65913.4(b) and (q).) Applicants are required to submit a Notice of Intent to initiate these required pre-application requirements. The Planning Department will determine that an application for ministerial approval is incomplete if it is submitted prior to completion of these pre-application requirements. 

Due to the time necessary to complete the preapplication requirements for SB 423 projects, and the fact that a formal eligibility determination cannot be made until after a complete development application has been submitted, the Department recommends requesting a Project Review meeting prior to submitting the Notice of Intent. A Project Review meeting can provide an informal opportunity to discuss with staff the eligibility requirements for SB 423 projects.

For more information, please refer to Planning Director Bulletin 5 for 100% affordable housing projects or Planning Director Bulletin 9 for market-rate housing projects.

For questions, you can call the Planning counter at 628.652.7300 or email pic@sfgov.org where planners are able to assist you.