Dan J. Harkey

Educator & Private Money Lending Consultant

AB 2243: Streamlined Housing Approvals for Residential Developments on Commercially Zoned Property.

Assembly Bill (“AB”) 2243 expands the existing streamlining process for residential developments on commercially zoned properties. The law took effect January 1, 2025.

by Dan J. Harkey

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AB 2243 is an expansion of an earlier bill, AB 2011

https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB2243

Feature AB 2011 (2022) AB 2243 (2024 Expansion)
Eligible Sites Commercial corridors only Adds regional malls (≤100 acres), narrower corridors, and sites within 500 ft of freeways
Freeway Proximity Prohibited within 500 ft Allowed with HVAC, air filtration, and no freeway-facing balconies
Regional Mall Projects Not eligible Eligible if site has ≥250,000 sq ft retail, 2/3 retail use, and two 10,000+ sq ft stores
Approval Timelines 60–90 days from application 60–90 days from consistency determination; 30 days for resubmittals
Coastal Zone Projects Unclear permit rules Clarifies coastal permit requirements and streamlining under SB 35
Conversion Projects Subject to density limits No density limit unless >20% new square footage; open space limits relaxed
Minimum Density Requirements Not specified 50–75% of allowable density, depending on transit proximity and date
Objective Standards Based on the closest multifamily zone Must not reduce unit size or preclude required density

Here’s your updated presentation with a new slide titled “Examples of Qualifying Projects Under AB 2243”, featuring:

  • Mixed-income housing on regional mall sites
  • Freeway-adjacent developments with air quality standards
  • Infill housing on narrow commercial corridors
  • Conversion of vacant commercial buildings