SB 684 and SB 1123 Expedite the Entitlement Path for Small “Starter” Home Developments

SB 684, which took effect on July 1 of this year, provides for streamlined, ministerial processing of certain residential projects in multifamily zoning districts consisting of no more than 10 single-family homes. The law expanded the Starter Home Revitalization Act to further facilitate the construction of smaller, more naturally affordable “starter” homes. SB 1123, passed during the most recent legislative cycle and effective July 1, 2025, expands SB 684’s reach to legalize construction of up to 10 homes on vacant lots in single-family zoning districts, as well.

To expedite streamlining efforts, SB 684 and SB 1123 projects are exempt from discretionary review, environmental review under the California Environmental Quality Act (CEQA), and the right to appeal.

This Alert highlights SB 684’s streamlining incentives, associated siting requirements, and development specifications and denotes how SB 1123 will expand the law’s applicability to allow for more housing development on previously restricted land.

Ministerial Subdivision Approval

SB 684 provides for ministerial approval of projects with 10 or fewer parcels and housing developments with 10 or fewer residential units, so long as the following requirements are met:

Siting Requirements

The lot proposed to be subdivided must be:

• Zoned for multifamily residential development
• No larger than five acres
• A legal parcel located within an incorporated city or an urbanized area or urban cluster (as defined)
• Substantially surrounded by qualified urban uses (as defined)

In addition, the lot must not be:

• Previously split pursuant to SB 9 or SB 684
• Located on land with specified environmental conditions
• A site where development of housing would require the demolition or alteration of specified types of protected units

The newly created parcels must be at least 600 square feet (unless a local agency has allowed for a smaller minimum parcel size) and must be adequately served by public water and municipal sewer systems.

Development Requirements

New units on eligible parcels cannot exceed an average of 1,750 net habitable square feet. In addition, if the local jurisdiction’s housing element identifies the parcel in its housing site inventory, then the project’s density must result in at least as many units as projected for that parcel in the housing element. For all other sites, the project must result in at least as many units as the maximum allowable residential density for the parcel.

SB 684 housing units may be constructed under various ownership models, including fee-simple ownership, common interest developments, housing cooperatives, or community land trusts. The housing project need only form a homeowners’ association if required to do so by the Davis-Stirling Common Interest Development Act. Additionally, the housing units are subject to local inclusionary housing ordinances.

Ministerial Project Approval

Currently, SB 684 permits ministerial and expedited approval of a housing development project proposed for parcels subdivided in accordance with the requirements specified above. A local agency is afforded only 60 days to approve or deny the project application. If it makes no decision within that time limit, the project is deemed approved.

As part of its approval process, a local agency may impose certain objective zoning, subdivision, and design standards on the project, but the law expressly prohibits objective standards that: (1) would preclude development at densities deemed appropriate to accommodate housing for lower income; (2) are only being imposed because the project is proposed pursuant to SB 684; (3) require a setback between units; (4) require enclosed or covered parking; (5) impose side or rear setbacks, or parking standards which are inconsistent with current SB 9 requirements; or (6) impose a floor area ratio of less than 1.0 for projects with 3-7 units or 1.25 for projects of 8-10 units.

Ministerial Issuance of Building Permits at Tentative Map Phase

SB 684 also requires the ministerial issuance of a building permit for an approved housing development project before the final map has been recorded, meaning that construction can begin even though the official subdivision process is not yet fully complete. A jurisdiction may condition the issuance of a building permit on the project applicant fulfilling certain requirements, such as a guarantee that a final map will be recorded or the provision of security for the fulfillment of conditions of approval and construction of necessary infrastructure improvements. Notwithstanding the fact that construction may begin early, a certificate of occupancy may be issued only once the final map is recorded.

Pending SB 1123 Changes to Take Effect on July 1, 2025

The primary change effectuated by SB 1123 provides for the ministerial approval of SB 684 subdivisions on vacant parcels located within single-family zones. “Vacant” is defined in the statute as having no permanent structure, unless the permanent structure is abandoned and uninhabitable. In addition, SB 1123 reduces the eligible maximum lot size to 1.5 acres and requires that newly created parcels be no smaller than 1,200 square feet.

SB 1123 additionally revises minimum density requirements for parcels not identified in the housing element to require that the proposed development results in at least 66% of the maximum allowable residential density. SB 1123 also prohibits a jurisdiction from imposing a height limit on newly created parcels that is less than the height allowed pursuant to the existing zoning designation applicable to the lot.

Further changes to be implemented under SB 1123 include: (1) permitting newly created units to be owned as a tenancy in common; (2) prohibiting the separate sale of an existing dwelling unit from any other existing dwelling unit on the resulting parcel; and (3) in any jurisdiction that allows accessory dwelling units (ADUs) or junior ADUs on the newly created parcels, the jurisdiction will be prohibited from counting those units toward the 10-unit cap.

If you would like more information as to how to pursue a streamlined entitlement of your development project of 10 or fewer residential units, please contact Allen Matkins’ land use and entitlements team.