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SB 6 (Caballero) SB 6 allows residential development ("housing development projects") on property zoned for retail and office space without requiring such properties to be rezoned, provided that developers pay construction personnel a prevailing wage and use a skilled and trained workforce. Housing development projects include both residential and mixed-use projects provided that at least 50 percent of the project square footage is dedicated for residential use. The legislation does not include affordability standards. Unlike AB 2011, projects proposed under SB 6 are not ministerial, but applicants can apply other provisions of State law, such as SB 35 or the Housing Accountability Act, which may limit or constrain the local jurisdiction's authority to approve or deny an application, and in some instances make such projects subject to ministerial review. Only objective standards may be applied. The bill goes into effect July 1 , 2023, and its provisions are repealed on January 1, 2033. Approval Process Local governments may adopt an ordinance to implement SB 6, with the ordinance adoption exempt from CEQA. Project approval would consider the housing development project an "allowable use" if specified conditions are met, such as minimum allowable densities, and standards applicable to the zoning district or nearest zooning district that permits the allowable density. Public notice, comment, hearing, or other procedures, site location and size, inclusionary requirements, and prevailing wage, and a skilled and trained workforce requirement must also be met, as noted below. Locations where SB 6 may be applied: • A zone where office, retail, or parking are a principally permitted use. • Within an urbanized area or urban cluster. • Site smaller than 20 acres. • Not on or adjoined to a site where more than 1/3 of the square footage is dedicated to industrial use (meaning either used for, zoned or designated to be used for, industrial). Project Criteria Project must be a housing development project that includes residential units or a mixed-use project where at least half of the square footage is designated for residential use. A Project must be consistent with approved sustainable community strategy or alternative plan. If commercial tenants exist in place at a prospective development site, project managers must provide relocation assistance to certain qualifying independently owned tenants. Affordability Requirements There are no affordability requirements. However, a local jurisdiction may apply its local inclusionary zoning requirements. Page 10 of 15