Fight brews over extension of California housing law SB 35

In 2017, then California Gov. Jerry Brown signed into law a pro-housing bill, SB 35, that forces local governments that are failing to meet state housing goals to streamline approvals of multifamily projects if the projects comply with local zoning and meet certain affordability requirements.  

“SB 35, fundamentally, is about good government,” Scott Wiener, the San Francisco Democrat who authored the law, wrote recently on Twitter. “It ensures that when a builder complies with the rules — zoning, design, etc — it receives a permit quickly, w/o having to endure a years-long, chaotic, politicized process that can kill the project even though it complies with the rules.” 

“It has been absolutely transformational,” the politician added at a news conference earlier this year. 

Six years later, amid the dozens of state housing laws that California has since passed, SB 35 stands out for its effectiveness. The law has accelerated the production of likely tens of thousands of units statewide, mostly below market-rate housing. But it’s about to sunset at the end of 2025, and a fight over a proposed extension bill is heating up. 

“California needs all of its best tools to meet our aggressive & essential housing goals,” Wiener wrote. “We must not let one of our most effective streamlining laws lapse.” 

Wiener introduced the extension bill, called SB 423, in February. It would eliminate the scheduled sunset on SB 35, making the law permanent, and also introduce other changes to strengthen the current law. Among the new stipulations would be an extension of the law’s reach to the coastal zone and new rules that make it harder for cities to skirt requirements, such as a prohibition on extraneous permit requirements. 

Last month, the bill passed through the California Senate’s Housing Committee, and a hearing in the Government and Finance Committee is scheduled for later this month. So far Wiener’s proposal has earned enthusiastic support, including from homeless and pro-building nonprofits, such as California YIMBY, Abundant Housing LA and the California Housing Consortium. 

But it has generated opposition, setting it up to be perhaps the most contentious housing bill of the year. 

Some of the criticism comes from cities that view the effort, which fits with a broader, years-long theme of Sacramento-driven housing efforts, as an attack on local control over development.  

“While it may be frustrating for some developers to address concerns about traffic, parking and other development impacts, those directly affected by such projects have a right to be heard,” the League of California Cities, which is actively opposing the bill, said in a statement. “Removing public input will only further increase distrust and slow construction down even further.”

Another major source of opposition comes from labor groups, including the powerful State Building and Construction Trades Council. Labor opposition stems from another tweak to the current bill: In another effort to strengthen the existing legislation, the text of SB 423 includes a provision that removes a requirement that developers use union workers for mixed-income projects. 

In response, the Building and Construction Trades Council has paid for an attack ad that claims SB 423 would strip protections for workers, lower building standards and even enable gentrification. 

“Scott Wiener has big plans for California,” the spot concludes. “They just don’t include you.” 

The brewing fight over SB 423 comes as state lawmakers are weighing several additional new housing bills, including efforts to stop inappropriate opposition to projects that use the California Environmental Quality Act, extend accessory dwelling unit provisions and streamline approvals for starter homes in infill areas.