SB 423 is a 2023 California law that extends and expands SB 35’s streamlined, ministerial approval process for multifamily housing, letting qualifying projects in cities that are behind on their housing goals skip discretionary hearings and environmental review. Projects approved under it face strict limits on how much parking a city may require.
- Statute
- Gov. Code 65913.4 (Wiener), signed October 11, 2023
- In effect
- January 1, 2024, through January 1, 2036
- Key fact
- No parking may be required within a half mile of public transit; elsewhere, no more than 1 space per unit
SB 35 and SB 423
SB 35 (Wiener, 2017) created the streamlined approval process in 2018 and was set to expire in 2026. SB 423 extended it to January 1, 2036, opened it to parts of the coastal zone beginning January 1, 2025, revised its labor standards and widened the sites that qualify. People still call projects approved this way SB 35 projects; the process is the same section of the Government Code.
Who can use SB 423 streamlining
- The jurisdiction: streamlining is available where HCD has determined the city or county is not making sufficient progress toward its regional housing need, which covers most of California, or where it lacks a compliant housing element.
- The site: an urban infill parcel zoned for residential or mixed use, or, since SB 423, a site where office, retail or parking is a principally permitted use.
- The project: a multifamily development of two or more units that meets the site’s objective zoning and design standards, with at least two-thirds of its square footage residential.
- Exclusions: sites such as prime farmland, wetlands, hazardous waste sites, floodways, protected habitat, very high fire hazard zones without mitigation, and sites that would demolish rent-controlled or recently occupied rental housing.
Affordability and labor standards
- Affordability: at least 10 percent of units affordable to households at or below 80 percent of area median income where a jurisdiction has fallen behind only on above-moderate income housing, and at least 50 percent affordable to lower income households where it has fallen behind on lower income housing.
- Prevailing wage: required for projects of more than 10 units.
- Larger projects: projects of 50 or more units must also meet apprenticeship and health care standards for construction workers.
- Tall buildings: projects over 85 feet must use a skilled and trained workforce, with limited exceptions.
The SB 423 approval clock
Approval is ministerial: no public hearing on whether to approve, and no review under the California Environmental Quality Act. A city has 60 days, for projects of 150 units or fewer, or 90 days, for larger projects, to identify in writing any conflict with objective standards. If it does not, the project is deemed consistent. Design review must be objective and cannot delay the decision, which is due within 90 days for projects of 150 units or fewer and 180 days for larger ones.
SB 423 parking rules
Streamlined projects carry their own parking limits, inherited from SB 35. A city may not impose any parking requirement if the project is:
- Within a half mile of public transit.
- Within an architecturally and historically significant historic district.
- In an area where on-street parking permits are required but not offered to the project’s occupants.
- Within one block of a car share vehicle.
Everywhere else, a city may require no more than one space per unit. Near transit, these rules overlap with AB 2097; together they mean the stall count on a streamlined project is the owner’s decision.
SB 423 and SB 79
SB 79 lets qualifying projects near transit use the SB 423 ministerial path if they meet SB 423’s environmental, labor and affordability standards. That pairing matters: SB 79 sets how tall and dense a station-area building may be, and SB 423 sets how fast the city must say yes.
SB 423 timeline
- September 29, 2017: SB 35 is signed; streamlining begins January 1, 2018.
- October 11, 2023: Governor Newsom signs SB 423 (Wiener).
- January 1, 2024: SB 423 takes effect, extending streamlining to January 1, 2036.
- January 1, 2025: streamlining reaches eligible coastal zone sites.
- July 1, 2026: SB 79 takes effect and links station-area projects to the SB 423 path.
How SB 423 works with other California laws
| Law | What it does for parking and housing near transit |
|---|---|
| SB 79 (2025) | Sets state floors for height, density and floor area around qualifying rail and BRT stops |
| AB 2097 (2022) | Bars minimum parking requirements on most projects within a half mile of a major transit stop |
| Density Bonus Law | Adds homes in exchange for affordable units and caps the parking a city may require |
| SB 423 (2023) | Ministerial, streamlined approval with its own parking limits near transit |
| AB 1317 (2023) | Separates the cost of parking from rent in new buildings of 16 or more units in ten counties |
| AB 894 (2023) | Lets owners share underused parking and count it toward requirements |
The Parkonomics view
Streamlining compresses the schedule, which compresses the time to get parking right. On a discretionary project, the garage gets redesigned through hearings; on an SB 423 project, the plans that go in are close to the plans that get built. That puts the parking demand analysis, the pricing model and any shared parking deal at the front of the schedule, before the application is complete. Bring an owner’s parking consultant in at the planning stage, when a stall count is still a choice rather than a change order.
SB 423: frequently asked questions
What is the difference between SB 35 and SB 423?
SB 35 (2017) created California’s streamlined ministerial approval process for qualifying housing. SB 423 (2023) extended it to 2036, opened it to parts of the coastal zone, revised its labor standards and made more sites eligible. They are the same section of law, Gov. Code 65913.4.
How long does SB 423 approval take?
A city must flag conflicts with objective standards within 60 days for projects of 150 units or fewer, or 90 days for larger ones, and must approve a compliant project within 90 or 180 days of a complete application.
Does SB 423 require parking?
No parking may be required within a half mile of public transit, in a significant historic district, where street permits are required but not offered to residents, or within one block of a car share vehicle. Elsewhere a city may require no more than one space per unit.
Does SB 423 apply in Los Angeles?
Yes, where HCD has determined the jurisdiction is subject to streamlining and the site and project meet the law’s criteria. Most California jurisdictions are subject to streamlining for at least some income levels.
Do SB 423 projects need CEQA review?
No. Approval is ministerial, so the California Environmental Quality Act does not apply to the approval decision.
Is SB 423 the same as SB 79?
No. SB 79 sets height and density floors near transit stops. SB 423 is an approval process. SB 79 projects can use the SB 423 process if they meet its standards.
Related terms: SB 79, AB 2097, Density Bonus Law, AB 1317, AB 894, Residential Permit Parking, Parking Minimums, Owner’s Parking Consultant
Further reading: The Zoning Arrives Before the Train, The Multifamily Gap, Santa Monica’s Height Fight Is a Parking Fight, The Underwriting Frame
Sources: Gov. Code 65913.4; SB 423 (Wiener), Stats. 2023; SB 35 (Wiener), Stats. 2017; HCD, Updated Streamlined Ministerial Approval Process Guidelines; Senate Housing Committee analysis of SB 423.