Summary:

California’s housing crisis is exacerbated by complex, opaque permitting processes that delay development and increase costs.  Senate Bill 489 (SB‑489), signed into Law in October 2025, addresses these challenges by strengthening the Permit Streamlining Act (PSA) and imposing new transparency requirements on Local Agency Formation Commissions (LAFCOs).  The goal is to expedite housing approvals, make them more transparent, and ensure greater predictability.

Background: Why SB‑489 Was Needed

• The Permit Streamlining Act (Gov. Code §§ 65920–65964.5) establishes timelines for approving development projects, but has historically been applied mainly to cities and counties.
• Housing projects often require approvals from multiple agencies—LAFCOs, utilities, and special districts- creating bottlenecks.
• Lack of precise, publicly accessible application requirements leads to delays and higher costs.  Every month of delay adds financing and construction expenses, ultimately passed on to homebuyers.  

Key Provisions of SB‑489

1.  Expanded Permit Streamlining Act Coverage

• Applies PSA provisions to ministerial housing development projects, as defined in the Housing Crisis Act (HCA).
• Clarifies that PSA timelines encompass all approvals required to entitle and build housing projects, thereby closing the gaps between entitlement and post-entitlement permits.  

2.  Mandatory Online Transparency

• Public agencies must publish online:
• A complete list of required application materials for each type of housing approval.
• The criteria used to determine application completeness.
• The name of the approval type (e.g., subdivision map, utility connection permit).  
• Applies to all agencies, not just cities/counties—closing a significant transparency gap.

3.  LAFCO Requirements

• Each LAFCO must:
• Establish written policies and procedures for organizational changes (formation, annexation, reorganization).
• Include all forms necessary for a complete application.
• Post these policies and forms on its website for public access.  

4.  Housing Development Project Definition

• Includes:
• Projects with only residential units.
• Mixed-use projects where ≥2/3 of square footage is residential (or ≥50% for large projects meeting specific conditions).
• Single-unit proposals.

5.  No State Reimbursement

• SB‑489 imposes a state-mandated local program, but local agencies can recover costs through service fees, so no reimbursement is required under Article XIII B of the California Constitution.

Impact on Housing Development

• Developers: Gain clarity and predictability—reducing delays and financing risk.
• Local agencies must modernize their processes and maintain online transparency.
• Housing Supply: Faster approvals help lower costs and accelerate production, supporting California’s housing and climate goals.

✅ Compliance Checklist for SB‑489

Before 1 January 2026:

• Public Agencies: Publish online lists of required materials, completeness criteria, and approval names for housing projects.
• LAFCOs: Post written policies, procedures, and complete application forms for organizational changes.
• Update internal workflows to meet PSA timelines for ministerial housing projects.
• Train staff in new transparency and documentation requirements.

Here’s the Pre‑SB‑489 vs Post‑SB‑489 Comparison Table for clarity:

✅ Comparison Table: SB‑489 Requirements

Bottom Line

SB‑489 closes transparency gaps and enforces streamlined timelines across all housing-related approvals, including those handled by LAFCOs. This ensures developers have transparent, predictable processes and agencies adopt modern, accessible workflows.

SB‑489 is a strategic step toward solving California’s housing crisis by reducing bureaucratic friction.  By mandating transparency and extending streamlined timelines to all housing-related approvals, the Law ensures that developers and agencies operate under clear, predictable rules—accelerating housing delivery statewide and offering hope for a brighter future in California’s housing landscape.