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On April 22, 2025, SB 677 did not advance in the Senate Housing Committee, failing by a narrow 4-3 vote. Despite this setback, Senator Wiener claims he will continue working on the bill.
Key Provisions of SB 677
Enhancements to SB 9 (Small-Scale Housing)
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Mandatory Ministerial Approval: Requires local governments to approve housing developments with up to two units on lots zoned for single-family or up to four units, removing discretionary review processes. LegiScan+2FindHOALaw+2BillTrack50+2
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Elimination of Owner-Occupancy Requirements: Removes the mandate for applicants to reside in one of the units, facilitating broader participation in housing development. LegiScan
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Override of HOA and CC&R Restrictions: Invalidates homeowners association rules and covenants that prohibit or unreasonably restrict such developments. Senator Scott Wiener+2FindHOALaw+2LegiScan+2
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Increased Minimum Unit Size: Raises the minimum allowable unit size from 800 to 1,750 net habitable square feet, promoting more livable housing options. Terner Center+5LegiScan+5Digital Democracy | CalMatters+5
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Simplified Urban Lot Splits: Removes previous constraints, such as the 40% minimum parcel size and limitations on prior subdivisions, to ease the process of lot splitting. BillTrack50+1California YIMBY+1
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Impact Fee Exemptions: Prohibits local agencies from imposing impact fees on housing units smaller than 1,750 square feet and mandates proportional fees for larger units. LegiScan+1Digital Democracy | CalMatters+1
Modifications to SB 423 (Streamlined Multifamily Housing)
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Reduced Affordable Housing Requirement: Lowers the inclusionary housing requirement from 50% to 20% for jurisdictions that have met their market-rate housing goals but not their affordable housing targets. Terner Center+1Senator Scott Wiener+1
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More Frequent RHNA Assessments: Changes the evaluation frequency of Regional Housing Needs Allocation (RHNA) compliance from every four years to every two years, enabling quicker identification of housing shortfalls.BillTrack50+4Senator Scott Wiener+4LegiScan+4
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Shifted Burden of Proof: Places the responsibility on local governments to provide evidence when denying developments based on environmental criteria, aiming to prevent misuse of environmental regulations to block housing projects. LegiScan+2Senator Scott Wiener+2Digital Democracy | CalMatters+2
Additional Provisions:
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Coastal Zone Considerations: Clarifies that while developments in coastal zones must still obtain coastal development permits, local agencies are not required to hold public hearings for these applications, streamlining the approval process. Digital Democracy | CalMatters+1LegiScan+1
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State Oversight of Local Ordinances: Mandates that local governments submit any new ordinances related to SB 9 to the Department of Housing and Community Development (HCD) within 60 days, allowing the department to review and ensure compliance with state housing laws. Terner Center
Is this even Constitutional or should it be?