SB-423 sites must be zoned residential or mixed use to qualify.

[Felicia Nitu]

One of the key criteria under SB-423 is zoning. To qualify for streamlined residential development, a site must be zoned for residential or mixed-use. But there's more flexibility built in, thanks to recent legislation.

Per the Middle-Class Housing Act of 2022 (SB-6), sites zoned for office or retail may also qualify, as long as they meet specific criteria laid out under SB-6. This expands opportunities beyond traditional housing zones, opening the door to converting underused commercial sites into new housing.

Another key requirement: the site must have a general plan designation, meaning the local jurisdiction has officially mapped out the area’s intended use. This ensures that development aligns with citywide planning goals.

How Real Estate Agents and Investors Benefit:

For agents, this creates a new way to pitch sites that were once off the table. Vacant office parcels? Old strip malls? These can now be marketed as potential housing opportunities, especially in areas struggling to meet housing targets.

For investors, it broadens the field for acquisition. Properties that previously had limited utility can now become housing projects with less red tape, thanks to SB-423’s streamlined process. Combined with SB-6, this is a powerful tool for spotting hidden value in zoning maps.