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This Bill was signed by Governor Newsom and filed with the Secretary of State on October 11, 2023. The bill's contents are provided in Section 65913.16 and added to the California Government Code.

Bill Text - SB-4 Planning and zoning: housing development: higher education institutions and religious institutions.

How much land in California is owned by faith-based religious and non-profit educational institutions? Approximately 171,000 acres of potentially developable land.

https://ternercenter.berkeley.edu/research-and-policy/faith-based-and-college-land-housing/

SB-4: Streamlines the real property residential development process by allowing eligible housing projects to be built on land owned by religious institutions and independent institutions of higher education, regardless of existing zoning regulations, provided specific criteria are met.

SB-4 opens a world of possibilities for faith-based institutions (FBIs) and nonprofitorganizations (NPOs) that own real property. It not only provides opportunities in zoning, densities, approvals, and land valuations but also empowers these entities to make a significant and positive impact on affordable housing, fostering a sense of optimism and hope about the legislation's potential.

SB-4, a beacon of fairness, has established a legal framework for faith-based institutions and nonprofits to develop their properties into affordable residential housing. This new law not only streamlines the process but also defines punitive measures for municipalities that object to unnecessary barriers to development, ensuring a fair and equitable system that stakeholders can have confidence in.

Article:

The seismic shift in California's development approval process has significantly altered the landscape of real property development. This transformation has profound implications for property owners, developers, and local municipalities.

Property owners, including faith-based and non-profit organizations, as well as developers who choose to partner, are now confronted with a redefined power structure and the daunting task of navigating intricate new laws. Meanwhile, local municipalities find themselves stripped of authority in property development. This shift in power dynamics is a crucial aspect of the new system that stakeholders must be aware of.

Under the new regulations, the California Legislature now holds the ultimate authority over property development approvals. Local municipalities are now limited to granting ministerial approvals that align with state-level mandates. Any objection from the local municipality can trigger legal action and the withholding of state and federal funds, paving the way for a more efficient and fair approval process.

The days of local municipalities operating as obstructionists are short-lived. Even though there is currently push back, the string of litigation against them will, over time, cause them to understand that they are no longer the captain of the ship. A series of court challenges, where the FBIs and NPs must sue, will level the playing field, as municipal power structures have been demoted to private, first-class status, with limited authority, other than stamping what complies with state-level mandates.

The traditional 'Not in my back yard' stance, often referred to as 'NIMBYs', is being replaced with a more inclusive 'Yes in God s Backyard,' or 'YIGBY' approach, reflecting a positive and accepting shift in community attitudes.

Religious institutionmeans an institution owned, controlled, and operated and maintained by a bona fide church, religious denomination, or religious organization composed of multidenominational members of the same well-recognized religion, lawfully operating as a nonprofit religious corporation pursuant to Part 4 (commencing with Section 9110), or as a corporation sole pursuant to Part 6 (commencing with Section 10000), of Division 2 of Title 1 of the Corporations Code.

https://leginfo.legislature.ca.gov/faces/codes_displayexpandedbranch.xhtml?tocCode=CORP&division=2.&title=1.&part=4.&chapter=&article=

An independent institution of higher education has the same meaning as defined in Section 66010 of the Education Code.

Article 1. Definitions - Sections 66010 :: California Education Code :: 2005 California Code :: California Code :: U.S. Codes and Statutes :: U.S. Law :: Justia

Let's dig into the facts: Applies to FBIs and NPs' real property owners.

This law requires that a housing development project be a use, upon the request of an applicant who applies for streamlined approval, on any land owned by an independent institution of higher education or a religious institution as of January 1, 2024.

The land must be owned by an FBI or NP, including independent institutions of higher education, with a qualified developer, as defined in Section 50079 of the Health and Safety Code.

Requires ministerial approvals (without discretionary permits or review under the California Environmental Quality Act) of development applications.

This new law is designed to reduce risk and uncertainty by providing ministerial approval and overriding local zoning restrictions.

The site, proposed project, and developer must meet state-mandated criteria.

Nonprofit corporations, limited partnerships in which the managing general partner is a nonprofit corporation, or limited liability companies in which a managing member is a nonprofit corporation that, at the time the application is submitted, owns or manages property that has a welfare exemption under the state tax code.

Affordability: 100 percent of the units must be affordable to low-income households, excluding the manager's unit(s). Additionally, 20 percent of the units must be affordable to moderate-income families, and 5 percent of the units can be reserved for staff of the institution owning the property.

Childcare centers and facilities operated by community-based organizations for the provision of recreational, social, or educational services for use by the residents of the development and members of the local community in which the development is located are permitted.

Prevailing Wages and Labor Standards (use of labor union workers): Projects with 10 or more units must pay prevailing wages, and those with 50 or more units must also meet specific labor standards. This increases the project's cost by 30% to 40%.

For all other property zoning, the development may include commercial uses that are permitted without a conditional use permit or planned unit development permit.

Conditional use permit:

This law allows a development proponent to apply for a development that is subject to a specified streamlined, ministerial approval process, not subject to a conditional use permit, if the development satisfies specific objective planning standards.

Parking:

Parking: One off-street (on-site) parking space per unit, unless state or local law provides for a lower standard. No parking is required if the project is within one-half mile of public transit or one block of a car-sharing vehicle.

Interested parties should take the time to read SB-4. There is a treasure trove of opportunities for participants in this sector.

Churches own 20-25% of land in the United States, made possible by tax exemptions for religious organizations. Imagine what would happen if the foundation of this development scheme were to spread across the United States. Where California goes, so goes the nation.