More than 60 housing bills were passed by California lawmakers in 2023, with a significant focus on affordable housing. Two pivotal bills that will significantly impact affordable housing projects, SB 423 and SB 4, came into effect in January 2024. The approval process for affordable housing projects involves navigating local zoning laws and the California Environmental Quality Act (CEQA), leading to delays and additional labor costs. The new housing bills aim to address these challenges and encourage construction for California affordable housing.
Streamlining Approvals: SB 423
To foster housing construction and meet housing goals, California cities are mandated to approve a specific number of housing projects each year. SB 423, an extension of SB 35, requires areas falling short of housing goals to streamline the approval process for affordable housing projects. SB 423 introduces a notable addition to SB 35 by including by-right approvals for building projects in areas designated as “coastal zones.”
Planning and Zoning: SB 4
The second bill that took effect in January is SB 4. This legislation enables 100% affordable housing developments on land not previously available for development. Qualifying land is owned by religious institutions and nonprofit colleges or universities, potentially unlocking 171,000 acres of developable land, as estimated by The Terner Center for Housing Innovation at UC Berkeley.
Another critical aspect of SB 4 is that affordable housing projects on such land are exempt from participating in CEQA, a time-consuming environmental impact assessment process. This exemption streamlines the affordable housing construction process, saving developers both time and money.
How CEDA Can Help Your California Affordable Housing Projects:
The California Energy Design Assistance (CEDA) program actively promotes the electrification and decarbonization of new construction and major renovations. To achieve these goals, CEDA collaborates with project teams to reduce energy demand, consumption, and carbon emissions. Funding for the program comes from the California Public Utility Commission. The program is free to participate in, allowing projects to unenroll at any time without repercussions. CEDA offers decarbonization and design team incentives to qualified projects.
Affordable housing projects can benefit from the CEDA program in several ways:
- Assistance in meeting decarbonization goals
- No cost and no commitment
- Support with financial incentives
The program incentives align and layer on top of the Building Initiative for Low-Emissions Development (BUILD) program.
While SB 423 and SB 4 bring positive changes to California’s affordable housing, financial challenges remain. To address this, the CEDA program assists affordable housing projects in achieving decarbonization goals. Additionally, it helps offset initial costs associated with implementing energy-efficient measures in buildings.
