SB 1385 Summary

• Establishes the Neighborhood Homes Act, allowing housing developments as permitted uses on parcels zoned for office or retail commercial use, subject to minimum density requirements (10-30 units per acre depending on jurisdiction type).

• Requires housing developments on commercial lots to comply with zoning, parking, design, and other local requirements applicable to residential zones with equivalent density, and to comply with public notice, hearing, and comment procedures.

• Allows local agencies to exempt commercial parcels from these provisions only if they reallocate the lost residential density to other suitable sites with no net loss in residential density in the jurisdiction.

• Permits applicants to request establishment of or annexation to a Mello-Roos Community Facilities District to finance improvements and services for units developed under the act, and exempts such projects from development fees to the extent facilities are funded by the district.

• Clarifies that housing developments under this section remain subject to all state and local housing, environmental, and labor laws, including the California Coastal Act, California Environmental Quality Act, and Housing Accountability Act.