SB-423 offers flexibility in development with density bonuses.

[Felicia Nitu]

SB-423 strengthens housing streamlining in California by requiring proposed projects to comply with objective zoning, subdivision, and design standards, but it also offers something critical: flexibility.

Through the State Density Bonus Law, developers can request incentives, waivers, concessions, and parking reductions that allow them to modify local standards. This means they may be able to build taller, include more units, reduce setbacks, or avoid certain design constraints that would normally limit their project’s size or efficiency.

This flexibility helps projects become more financially feasible while still meeting local housing needs.

How agents and investors benefit:
For real estate agents, SB-423 opens new doors to market development-ready sites with greater potential. Investors gain access to unit counts, fewer parking requirements, and more buildable area, especially in areas where local rules might otherwise restrict growth. With the right property and strategy, SB-423 can significantly improve the return on infill and multifamily investments.