Development Made Easier with California Bills - SB 684, SB 1123, SB 79

The State of California is pushing for more housing, and in the process they've passed some powerful legislation that can benefit property owners. These new laws streamline the process for building smaller, more affordable "starter" homes and multi-family units on existing urban lots. For you, this can mean new opportunities to add value to your property and create much-needed housing. As a general contractor, I'm staying on top of these changes to help my clients navigate the new landscape of infill development. Here’s a look at three of the most significant bills.

SB 684: The Starter Home Subdivision Act

SB 684, which went into effect on July 1, 2024, is a game-changer for infill development. It creates a new, streamlined path for property owners to subdivide their multi-family zoned lots and build up to 10 homes on them. The key benefit here is ministerial approval, which means the project is approved automatically if it meets all the objective standards—no lengthy public hearings, discretionary reviews, or environmental (CEQA) reports needed. This dramatically reduces the time, cost, and risk of the traditional permitting process.

What it means for you:

  • You can develop a single lot into a small community of homes, like townhouses or condos.

  • The process is much faster and more predictable than a typical project.

  • The homes can be sold individually (fee-simple ownership), creating valuable assets and a new source of income.

  • The law applies to multi-family zoned lots that are 5 acres or less and are already surrounded by urban uses.

SB 1123: The Vacant Lot Expansion

Building on the foundation of SB 684, SB 1123, effective July 1, 2025, expands the same ministerial approval process to include vacant lots in single-family zones. This bill is a direct response to the housing shortage in traditional neighborhoods. It allows for the subdivision of a vacant single-family lot (up to 1.5 acres) to build up to 10 new homes, just like SB 684.

What it means for you:

  • If you own a vacant lot in a single-family neighborhood, you may now have the ability to build multiple homes on it, rather than just one.

  • This bill is perfect for creating small-scale, "missing middle" housing that fits into the existing fabric of a community.

  • It provides a new avenue for development in areas that were previously off-limits to multi-unit projects.

Important Note: Both SB 684 and SB 1123 include strong tenant protections, prohibiting the demolition of most existing housing units. These bills are specifically for infill development on lots that are either vacant or have no protected tenants.

SB 79: Transit-Oriented Development

SB 79, also a recent bill, focuses on increasing housing density around major transit hubs. It "upzones" areas near train and rapid bus stops, allowing for denser, taller housing projects. The goal is to make it easier for people to live near transit, reducing traffic congestion and emissions.

What it means for you:

  • If your property is within a certain distance of a major transit stop, the local zoning rules may have changed to allow for more units.

  • This opens the door for larger projects that might not have been possible before, such as small apartment buildings or mixed-use developments.

  • It’s a great opportunity to contribute to a sustainable, transit-friendly future while maximizing your property's value.

Why this matters for you, the client?

The common thread in all these bills is that they simplify and de-risk the development process. As a general contractor, this is huge. It means we can give you a more accurate timeline and a more predictable budget. By using these new laws, we can bypass a lot of the bureaucratic red tape that has traditionally made it difficult to build in California. If you're considering a new construction project, adding units, or subdividing your property, these bills are a powerful tool we can use together to make it happen.

Let's talk about your project and how these new laws can benefit you.

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