SB 677: The California Bill That Could Simplify Small-Scale Housing Project
California’s housing crisis isn’t breaking news—but the potential solutions coming down the pipeline might be.
One of the most promising proposals right now? Senate Bill 677 (SB 677).
This bill aims to cut through the red tape that often slows down (or kills) small housing projects like duplexes, lot splits, and ADUs (Accessory Dwelling Units). If passed, SB 677 could significantly change the way homeowners, investors, and developers approach real estate in the state.
Here’s why this matters—and what you need to know.
What Is SB 677?
SB 677 is designed to streamline the approval process for small residential projects. It would require ministerial approval—meaning no discretionary reviews or public hearings—for:
Housing developments of up to two residential units
Properties that are zoned for up to four units
In short, if your project meets basic objective standards (like setbacks and height limits), cities would have no choice but to approve it.
Why Is Ministerial Approval a Big Deal?
Ministerial approval takes the uncertainty out of the building process. Today, even if your project technically complies with zoning, it can still be delayed—or outright denied—because of subjective factors like neighbor opposition, planning commission preferences, or political pressure.
With SB 677:
If your project checks all the objective boxes, it moves forward.
Public hearings and case-by-case reviews would no longer slow you down.
You get faster timelines, lower costs, and less risk.
Key Highlights of SB 677
🏡 Allows up to two units per lot under ministerial review
🚫 Prevents cities from banning units under 1,750 sq ft of habitable space
🔓 Blocks local agencies from denying projects based on minor preexisting site conditions unless they pose a serious health/safety issue
🛠️ Gives property owners more certainty when pursuing lot splits, duplexes, and ADU developments
🏘️ Supports infill development—one of the fastest ways to create new housing supply without expanding urban sprawl
What This Means for Homeowners and Investors
If you’re thinking about:
Building a backyard ADU
Converting a single-family home into a duplex
Splitting a larger lot into two smaller lots
SB 677 could make your project simpler, faster, and more affordable.
It’s particularly powerful in markets where zoning laws are tight but the need for flexible, small-scale housing is exploding.
For investors, this bill could unlock new opportunities to create higher cash flow on traditionally “low density” lots—without needing to navigate long, unpredictable approval processes.
Final Thoughts
While SB 677 is still working its way through the legislative process, it’s one of the most promising housing bills introduced this year. It reflects a growing recognition that we can’t solve California’s housing crisis without rethinking how we approve and build small-scale housing.
In a state where time is money, reducing barriers to building could be a game changer.
Work with our team of ADU investment experts to increase your property value, earn rental income, or expand your family's living space.
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