As we continue in the second quarter 2024, we wanted to bring to you the the five crucial new laws regarding commercial real estate that were implemented in 2024, and other deadlines you may need to be aware of. These updates, designed to address evolving market dynamics and stakeholder needs, promise to reshape the way businesses and investors operate within the state. This blog post will delve into the details of these changes, helping CRE professionals understand the implications and prepare for the future.

SB 423

For infill multifamily residential developments in jurisdictions that haven't been able to approve enough housing to meet their Regional Housing Needs Allocation, SB 35 established a simplified approval process in 2017. The sunset date of SB 35 was planned for 2026, but SB 423 pushes it back ten years, to 2036. Additionally, the law broadens the scope of SB 35, expanding its requirements—with some exceptions—to communities in the Coastal Zone and to those that have not adopted conforming housing elements. Additional technical changes to the regulations that apply to SB 35 projects are also made by SB 423. This bill will likely have an overall positive impact towards new multifamily development construction

SB 684

This bill mandates that a local government must ministerially approve a parcel map or a preliminary and final map for a qualifying housing development project that will result in 10 or fewer parcels and 10 or fewer units, without the need for a hearing or discretionary review. In order for the lot that is being divided to be covered by the bill, it needs to: 1)Be zoned for multifamily residential development; 2)Be no larger than five acres and substantially surrounded by qualified urban uses; 3)Be a legal parcel located within either of the following: (i) an incorporated city, the boundaries of which include some portion of an urbanized area, or (ii) an urbanized area or urban cluster in a county with a population greater than 600,000.

SB 696

The enactment of Senate Bill 696 marks a substantial development in California notarial procedures. By enabling notaries to perform acts that originate from other states, federally recognized Indian tribes, foreign states, or under federal law as if undertaken within California, the measure seeks to improve the accessibility and efficiency of notarization processes. The measure also includes provisions for online notarizations, which will enable notaries to conduct notarizations online after fulfilling certain standards by registering with the Secretary of State.

AB 1033

In California, homeowners have frequently rented out their accessory dwelling units, or ADUs. The sale of ADUs will now be permitted by AB 1033, which could effectively result in the creation of two or three unit condominiums on a given lot. Property owners in participating communities who choose to participate in the new program will have the option to sell their ADUs apart from the primary residence starting in 2024. This would also imply that these condominiums would require the creation of covenants, conditions, and restrictions, which are a homeowners association's set of guidelines controlling how a particular piece of property is used.

AB976

Previously, local governments in California were not allowed to mandate that the owner of the lot occupy the ADU or the primary residence on the lot with an ADU; however, this limitation was scheduled to end in 2025. The ban on ADU owner-occupancy requirements is now permanent thanks to AB 976.

If you have any more questions during your commercial real estate ventures, we are always here to help. Contact us at info@cbicommercial.com or 310-943-8530.