Dan J. Harkey

Educator & Private Money Lending Consultant

California Senate Bill 35 (SB-35) Tiny Home Subdivisions

SB-35 was enacted in 2017 and is a key piece of legislation aimed at addressing the state’s housing crisis by streamlining the approval process for certain residential developments.

by Dan J. Harkey

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Summary

SB-35 is clearly another social engineering scheme patterned after AFFH, Affirmative Furthering Fair Housing, created by then-President Obama. It is designed to subdivide standard residential lots into super tiny parcels for a small home.

Legislation text:

https://legiscan.com/CA/text/SB1123/id/2927306

Here’s a comprehensive overview:

Purpose and Goals

SB-35 was designed to:

  • Increase housing supply, especially affordable housing.
  • Streamline approvals for housing projects in jurisdictions failing to meet their Regional Housing Needs Allocation (RHNA) targets.
  • Remove local political barriers to housing development by enforcing a ministerial (non-discretionary) approval process 

Key Provisions

To qualify for SB-35 streamlining, a project must:

  • Be in a jurisdiction that has not met its RHNA goals.
  • Include a minimum percentage of affordable units:
  • 10% if the jurisdiction failed to meet above-moderate income RHNA goals.
  • 50% if it failed to meet low-income RHNA goals 
  • Comply with objective zoning and design standards.
  • Be on land zoned for residential use and not in ecologically protected areas.
  • Be a multi-unit development (not single-family homes).
  • Use a skilled and trained workforce, meeting prevailing wage requirements 

Approval Timeline

  • Projects with fewer than 150 units: 60-day approval window.
  • Projects with 150 or more units: 90-day approval window.
  • If the local agency fails to act within the deadline, the project is automatically deemed approved 

Impact and Implementation

  • SB 35 has led to the approval of thousands of housing units, including major projects like the Vallco Mall redevelopment in Cupertino and 681 Florida Street in San Francisco
  • As of 2023, over 18,000 units had been proposed under SB 35, with two-thirds designated as affordable housing 

Challenges and Criticisms

  • Local opposition: Many cities opposed SB 35, citing loss of local control over zoning.
  • Legal challenges: Cities like Huntington Beach sued the state but lost in court 

Limited use: Despite its potential, SB 35 has not been widely adopted due to financial and political hurdles 

  • Concerns about gentrification and reduced public input in planning processes 

Recent Amendments

  • SB 423 (2023) extended SB 35’s sunset date to January 1, 2036, expanded its scope to charter cities, and narrowed exemptions in coastal zones 

SB 35 – Key Points

  • Purpose: Streamlines housing development approvals in cities that fail to meet state housing goals.
  • Eligibility Criteria:
    • Jurisdiction must be non-compliant with RHNA targets.
    • The project must include affordable housing (10–50% depending on income category).
    • Must comply with objective zoning and design standards.
    • Located on residentially zoned land, not in protected areas.
    • Must be a multi-unit development.
  • Labor Requirements:
    • Use of a skilled and trained workforce.
    • Must pay prevailing wages.
  • Approval Process:
    • Ministerial (non-discretionary) approval—no public hearings.
    • Approval deadlines:
      • 60 days for projects <150 units.
      • 90 days for projects ≥150 units.
    • Automatic approval if deadlines are missed.
  • Impact:
    • Thousands of units have been approved, with many being affordable.
    • Used in significant developments like Cupertino’s Vallco Mall.
  • Recent Update:
    • SB 423 (2023) extended SB 35 to 2036 and expanded its scope to charter cities.