Dan J. Harkey

Educator & Private Money Lending Consultant

AB-2243, California: Housing on Commercially Zoned Land

Here’s a detailed summary of California Assembly Bill (AB) 2243, which significantly expands the scope and impact of AB 2011 and SB 6 to promote housing development on commercially zoned land:

by Dan J. Harkey

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Overview:

🔑 Key Expansions Introduced by AB 2243

1. Regional Mall Redevelopment

  • Eligibility Expansion: Mixed-income projects can now be developed on regional mall sites up to 100 acres, up from the previous 20-acre limit 
  • Definition of Regional Mall:
    • At least 250,000 sq ft of retail use.
    • Two-thirds of permitted uses must be retail.
    • At least two retail units must be 10,000 sq ft or more.
  • Development Standards:
    • Average block size ≤ 3 acres.
    • A minimum of 5% of the site is dedicated to open space.
    • Buildings must be within 10 feet of newly created streets for at least 60% of the frontage 

2. Narrower Commercial Corridors

  • AB 2243 reduces the minimum right-of-way requirement from 70 feet to 50 feet for specific projects, allowing more sites to qualify 

3. Freeway Proximity

  • Projects within 500 feet of a freeway are now eligible, provided they meet strict air quality and design standards:
    • Centralized HVAC system.
    • Air intakes must face away from the freeway.
    • Minimum air filtration rating of MERV 16.
    • No balconies facing the freeway 

4. Streamlining Requirements

  • Consistency Determination:
    • Must be issued within 30 days of resubmittal.
    • Local agencies must provide a complete list of conflicting standards.
  • Project Approval Timeline:
    • Approval required within 60 days (≤150 units) or 90 days (>150 units) after consistency is confirmed 

5. Coastal Zone Clarifications

  • AB 2243 incorporates SB 35’s coastal zone restrictions but clarifies that coastal development permits are required.
  • Permits must be approved if the project complies with the objective standards of the local coastal program 

6. Conversion of Existing Buildings

  • Projects converting non-residential buildings to residential use cannot be required to add new common open space beyond what already exists 

Here’s a visual summary of California AB 2243, highlighting the impact of its key provisions:

Chart Highlights

  • Streamlined Approval Timelines and Freeway Proximity Eligibility are among the most impactful changes.
  • Regional Mall Redevelopment significantly expands development opportunities.
  • Coastal Zone Permit Changes and Building Conversion Rules offer targeted improvements.