Housing Laws

California passed Senate Bill 330, known as the Housing Crisis Act of 2019, to help address the state’s housing shortage by streamlining the building approval process. In the past, lengthy permitting procedures, layered regulations, and local review timelines often delayed housing development. SB 330 aims to reduce these barriers by requiring cities like the City of San Marcos to act more quickly and predictably when reviewing housing proposals. It’s designed to cut down on delays and make it easier to build more homes across the state.

What this means for San Marcos 

• Faster Housing Approvals: The City now has stricter deadlines to approve or deny housing project applications, resulting in a faster overall process for developers.
• Fewer Barriers for Developers: Once a preliminary housing application is submitted, the City cannot add new requirements—such as additional fees or procedural hurdles—during the review process.
• Prevents Downzoning: SB 330 restricts cities from reducing housing capacity by lowering allowable densities or changing zoning to permit fewer homes, helping preserve development potential.
• Increased Housing Production: By reducing local limitations and streamlining approvals, the law aims to boost housing availability across California.

Senate Bill 8 (SB 8) Extension

SB 330 was originally set to expire in 2025, butSenate Bill 8, passed in 2021, extended its provisions throughJanuary 1, 2030. SB 8 also clarified and strengthened certain aspects of SB 330, including protections against the reduction of existing housing capacity and additional transparency requirements during the review process.

In September 2022, California passed Assembly Bill 2097 to help create more housing by removing parking requirements for new developments. In the past, cities often required developers to build a certain number of parking spaces, which added to costs and reduced the space available for housing. Under AB 2097 cities cannot require developers to provide parking for projects near public transit. The goal is to reduce costs, encourage public transportation use, and make it easier to build more housing.

What this means for San Marcos

For San Marcos, AB 2097 means that for new housing developments near public transportation (such as bus stops or train stations), the city cannot require a set number of parking spaces. This could lead to:

• More housing projects, as developers face fewer requirements, making it easier and cheaper to build.
• Encouraging residents to rely more on public transportation, potentially reducing traffic and environmental impacts.
• Less focus on car parking and more space dedicated to housing or other community needs.

Senate Bill 35, which took effect on January 1, 2018, established a streamlined, ministerial review process for certain multifamily affordable housing projects in local jurisdictions that have not met regional housing needs.  

What this means for San Marcos

Streamlined Approval for Eligible Projects: Multifamily housing projects that meet the law’s requirements, such as affordable housing quotas and compliance with local zoning laws, qualify for a streamlined review. This means they can bypass certain reviews, such as some public hearings and environmental impact assessments, speeding up the approval process significantly.

Focus on Affordable Housing: Projects that include a significant percentage of affordable housing units are more likely to qualify for SB 35's streamlined process, encouraging the development of more affordable housing options within the city.

Increased Accountability: San Marcos must meet certain housing production targets set by the state. If the city falls behind, more projects may become eligible for SB 35, limiting the city’s discretion over approvals until it meets its housing goals.

State Density Bonus Law

The California Density Bonus Law (Government Code Section 65915) is a state mandate that encourages affordable housing development by providing developers with incentives and concessions to exceed the maximum number of dwelling units, depending on the type and amount of below-market-rate homes they build. Qualifying applicants can also receive reductions in required development standards.

What this means for San Marcos

More Housing on the Same Property: Developers can build more homes on a piece of land than normally allowed by local zoning, helping to increase housing supply. For example, if the city’s plan limits a property to 10 homes, a developer might be able to build up to 20 with the density bonus.

Flexibility on Building Standards: Developers can request reductions in requirements like building height or how far homes must be set back from the property line if these rules prevent them from reaching the maximum density allowed under the law.

Reduced Parking Requirements: For certain types of projects, such as those near public transportation or with affordable housing, the city may not be able to require as much parking, which can lower the cost and make it easier to build more homes.

Encouraging Affordable Housing: To qualify for the density bonus and other incentives, developers must typically include a percentage of affordable housing units in their project, which supports the city’s goal of providing more housing options for people at different income levels.

Under the Density Bonus Law, local governments are required to grant qualifying projects the following benefits:

• Incentives or concessions that provide cost reductions to facilitate affordable housing production.
• Waivers of development standards that would otherwise physically preclude the construction of a project at the permitted density and with the granted incentives.
• Reductions in parking requirements, particularly for projects that qualify under specific conditions such as being located near transit-oriented developments.

Developers can increase the number of homes on a property by up to 50% under standard density bonus provisions. However, recent updates to the law, such as Assembly Bill 1287, allow for additional density bonuses when at least 20% of the units are reserved for low- and moderate-income households, potentially leading to a greater overall density increase. The provisions allowing up to a 100% density increase generally apply to projects that are 100% affordable.

Developers who qualify can receive flexibility on other development standards, such as setbacks (the required distance between buildings and property lines) and height limits. Parking reductions, including the possibility of eliminating parking requirements entirely, are applicable primarily to projects located within designated transit-oriented development areas, ensuring accessibility and reducing reliance on personal vehicles.

These provisions are designed to support the creation of more affordable housing while balancing local planning considerations and community concerns. 

Over the past decade, the California State Legislature has made significant changes to Government Code §65852, making it easier and more affordable for property owners to build accessory dwelling units (ADUs). These units, often referred to as "granny flats" or "in-law units," provide additional housing options in residential areas. Recently, the state has also enacted a bill that allows homeowners to obtain retroactive building permits for unpermitted ADUs, ensuring these homes can be legalized and made safe.

What this means for San Marcos

Easier Construction of ADUs: Homeowners in San Marcos will find it simpler to build ADUs, as the state has reduced regulatory hurdles and fees, making it a more attractive option for adding housing to existing properties.

Streamlined Approval Process: The approval process for ADUs has been expedited, allowing homeowners to bypass some of the lengthy procedures that previously delayed construction. This means quicker turnaround times for permits.

Legalization of Existing Units: With the new bill permitting retroactive building permits, homeowners can now legalize previously unpermitted ADUs, bringing them up to code and ensuring compliance with safety regulations.

Increased Housing Options: The easier construction and legalization of ADUs will help increase the housing supply in San Marcos, offering more options for residents and potentially alleviating housing shortages.

 See questions about ADUs(PDF, 1MB) 

Senate Bill 6, known as the Middle Class Housing Act, andAssembly Bill 2011, known as the Affordable Housing and High Road Jobs Act, enable residential development on properties that are currently designated for commercial or retail use. These laws aim to help address California’s housing shortage by allowing more flexibility in how land is utilized, facilitating the conversion of underused commercial properties into housing.

What this means for San Marcos

Increased Housing Opportunities: These laws provide opportunities to develop residential units on land that was previously restricted to commercial or retail purposes, helping to expand the housing supply in the city.

Flexibility in Land Use: By allowing residential projects in areas designated for commercial use, San Marcos can adapt to changing market conditions and community needs, making better use of available land.

Support for Affordable Housing: Both pieces of legislation emphasize the development of affordable housing options, encouraging projects that cater to middle-income families and promote diversity in the housing market.

Potential for Revitalization: Converting underutilized commercial properties into residential units can lead to the revitalization of certain areas in San Marcos, fostering community development and enhancing local amenities.

San Marcos is dedicated to community-centered planning, guiding growth and development in ways that reflect local values and priorities. The city’s policies provide a balanced framework to support quality of life, align with state requirements, and address the needs of residents, businesses, and organizations. 

Senate Bill 9, enacted in 2021, allows homeowners in single-family residential zones to subdivide their lots and build up to two housing units per parcel. This law aims to address California's housing shortage by enabling small-scale residential infill development while maintaining local planning oversight through objective design standards.

For qualifying properties, SB 9 provides the following opportunities:

Lot Splitting: Property owners can divide their single-family lots into two separate parcels, each allowing two housing units, potentially enabling up to four units on the original lot.

Ministerial Approval: Eligible projects bypass discretionary reviews, expediting the development process.

Owner-Occupancy Requirement: One of the new units must be owner-occupied for at least three years to prevent speculative development.

Exclusions and Limitations: SB 9 does not apply to environmentally sensitive areas or historic districts, ensuring preservation of critical spaces.

For an overview of the Urban Lot Split and Two-Unit Residential Development application process, including relevant San Marcos Municipal Code sections 19.44 and 20.470, development standards, and additional Engineering requirements, please visit the SB9 Process resource page(PDF, 2MB).

SB 79 - Transit Oriented Development. was introduced by Senator Scott Wiener and was signed by Governor Newsom on October 10, 2025. This bill was amended 13 times, before reaching the version presented to the Governor in September 2025.

• This bill requires that a housing development project, as defined, within a specified distance of a transit oriented development stop, as defined, be an allowed use as a transit-oriented housing development on any site zoned for residential, mixed, or commercial development, if the development complies with applicable requirements, as specified.
• Among these requirements, the bill requires a project to include at least 5 dwelling units and establish requirements concerning height limits, density, and residential floor area ratio in accordance with a development’s proximity to specified tiers of  stops.
• The bill provides that, for the purposes of the Housing Accountability Act, a proposed development consistent with the applicable standards of these provisions as well as applicable local objective general plan and zoning standards shall be deemed consistent, compliant, and in conformity with prescribed requirements, as specified.
• The bill provides that a local government that denies a project meeting the requirements of these provisions located in a high-resource area, as defined, would be presumed in violation of the Housing Accountability Act, as specified, and immediately liable for penalties, beginning on January 1, 2027, as provided. These provisions do not apply to a local agency until July 1, 2026, or within unincorporated areas of counties until the 7th regional housing needs allocation cycle. The bill would specify that a development proposed pursuant to these provisions is eligible for streamlined, ministerial approval pursuant to specified law, except that the bill exempts a project under these provisions from specified requirements and would specify that the project is required to comply with certain affordability requirements, under that law.