SB 423: Streamlining Housing Approvals in San Francisco
SB 423 has significantly changed the approval landscape for qualifying housing projects in San Francisco. Because the City has not met its current state housing-production targets, eligible code-compliant residential projects can use a streamlined ministerial approval process rather than the City's traditional discretionary review process.
For property owners and developers, this can create new opportunities for projects ranging from smaller multifamily developments to larger mixed-income housing. Eligibility depends on the project, site, number of units, affordability requirements, and compliance with applicable objective standards.
What SB 423 Changes in San Francisco:
Ministerial Approval: Qualifying projects are reviewed against objective standards rather than through a discretionary approval process. Ministerial projects do not require Planning Commission approval through a public hearing, CEQA review associated with the entitlement, or Neighborhood Notification..
Projects Starting at Two Units:
Under San Francisco's current SB 423 implementation, qualifying code-compliant projects with two or more dwelling units may be eligible for ministerial approval. Projects with 2–9 units currently have no SB 423 affordability requirement, while larger projects are subject to additional affordability requirements.
Defined Review Timelines:
SF Planning currently identifies a review period of 90 days for projects with 150 units or fewer and 180 days for projects with more than 150 units.
The SB 423 Approval Process:
Before submitting an SB 423 application in San Francisco, applicants must submit a Notice of Intent and complete the required tribal consultation process. Projects in certain neighborhoods may also require an informational hearing before the SB 423 development application is submitted.
Once these preliminary requirements are completed, an eligible project can proceed through the City's streamlined ministerial review process. Because eligibility depends on both state law and San Francisco's implementation requirements, evaluating the approval pathway early in the design process can be particularly valuable.
Environmental Review Exemption:
Eligible projects are exempt from extensive environmental reviews[4].
What This Means for Property Owners:
SB 423 can be relevant to more than large housing developments. Its availability for qualifying projects beginning at two units makes it worth considering when evaluating certain smaller multifamily development opportunities in San Francisco.
However, the fastest approval pathway is not necessarily the best development strategy for every property. Zoning, existing buildings, allowable density, site constraints, construction costs, unit configuration, affordability requirements, and long-term ownership goals should all be considered when evaluating a project.
Conclusion:
SB 423 has created an important alternative approval pathway for qualifying housing projects in San Francisco. By replacing certain discretionary approvals with objective ministerial review, the law can provide greater predictability and potentially reduce entitlement time for eligible projects.
Considering a San Francisco housing project? Contact Ojanen Chiou Architects to discuss your property, development goals, and potential approval pathways.
Current SB 423 Resources: