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

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 1 July 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 in size.
    • 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.ion 

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.ion   

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).

10.  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.

11..  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).

12.  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.

  . Height Limits

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

13.  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.