Dan J. Harkey

Educator & Private Money Lending Consultant

SB-1123, California: Tiny Lots- Allows Ministerial approval for 10 or Fewer Parcels on Lots of 5 Acres or Less

Here’s a comprehensive summary of California Senate Bill 1123 (SB 1123), which builds upon and expands the provisions of SB 684 (2023) to streamline housing development further:

by Dan J. Harkey

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SB-1123, California: Tiny Lots- Allows Ministerial approval for 10 or Fewer Parcels on Lots of 5 Acres or Less

https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202320240SB1123

https://www.allenmatkins.com/real-ideas/sb-684-and-sb-1123-expedite-the-entitlement-path-for-small-starter-home-developments.html

Here’s a comprehensive summary of California Senate Bill 1123 (SB 1123), which builds upon and expands the provisions of SB 684 (2023) to streamline housing development further:

Background: SB 684 (2023)

SB 684 introduced the Starter Home Revitalization Act, which:

  • Allowed ministerial (non-discretionary) approval for subdivisions creating 10 or fewer parcels and housing developments with 10 or fewer units.
  • Applied to multifamily zones that are no larger than 5 acres, substantially surrounded by qualified urban uses.
  • Required parcels to be at least 600 square feet and units to average no more than 1,750 net habitable square feet 

Key Expansions and Modifications in SB 1123 (Effective July 1, 2025)

1. Expansion to Single-Family Zones

  • SB 1123 allows the same streamlined approval process for vacant lots in single-family zones, provided:
    • The lot is no larger than 1.5 acres.
    • Qualified urban uses substantially surround it.
    • Newly created parcels are at least 1,200 square feet 

2. Density Requirements Adjusted

  • For parcels not listed in a jurisdiction’s housing element, the required density is reduced:
    • Must meet at least 66% of either:
      • The maximum allowable residential density under local zoning, or
      • The density under Government Code Section 65583.2(c)(3)(B)

3. Ownership and Parcel Restrictions

  • Permits tenancy-in-common ownership models.
  • Prohibits the separate sale of existing dwelling units from others on the same parcel

4. Parcel Design Standards

  • Adds frontage to the list of parcel characteristics (size, width, depth) that cannot be regulated beyond the minimums set by SB 684 

5. Accessory Dwelling Units (ADUs)

  • Clarifies that ADUs and JADUs, if allowed by the city, do not count toward the 10-unit cap 

6. Height Limits

  • Cities cannot impose height limits lower than those allowed by the existing zoning designation 

Implementation and Impact

SB 1123 aims to:

  • Increase affordable homeownership opportunities, especially in areas traditionally zoned for single-family homes.
  • Reduce bureaucratic delays by eliminating discretionary reviews and CEQA requirements.
  • Encourage “missing middle” housing types like duplexes, townhomes, and small lot subdivisions 

7. Zoning Eligibility

  • SB 684: Applies only to multifamily-zoned lots.
  • SB 1123: Expands eligibility to vacant single-family-zoned lots (≤ 1.5 acres).

8. Parcel Size Requirements

  • SB 684: Minimum parcel size of 600 square feet.
  • SB 1123: For single-family zones, the minimum parcel size is 1,200 square feet.

9. Density Requirements

  • SB 684: Requires developments to meet maximum allowable residential density.
  • SB 1123: Lowers the threshold to 66% of either:
    • Local zoning maximum density, or
    • Density under Gov. Code §65583.2(c)(3)(B).

9. Parcel Design Standards

  • SB 684: Limits the regulation of size, width, depth, and dimensions.
  • SB 1123: Adds frontage to the list of characteristics cities cannot regulate beyond SB 684 minimums.

5. Ownership Restrictions

  • SB 684: Silent on ownership structure.
  • SB 1123: Prohibits alienation of existing dwelling units from others on the same lot (e.g., no separate sale of units).

6. Accessory Dwelling Units (ADUs)

  • SB 684: Cities not required to permit ADUs/JADUs.
  • SB 1123: Clarifies that if permitted, ADUs/JADUs do not count toward the 10-unit cap.

7. Height Limits

  • SB 684: No specific provision.
  • SB 1123: Cities cannot impose height limits lower than those allowed by existing zoning.

8. Slide 2 Highlights:

  • Small Lot Subdivisions: 10 townhomes on a 1-acre multifamily-zoned lot.
  • Duplexes on Vacant Single-Family Lots: 5 duplexes on a 1.2-acre vacant lot.
  • Infill Townhomes: 8 townhomes on an underutilized urban parcel.
  • Tenancy in Common Projects: 10-unit shared ownership on subdivided parcel.