California Guides

SB 4: Affordable Housing on Religious and Nonprofit Land — A Compliance Guide for California Cities

Bill: SB 4Effective: July 1, 2024Signed: October 11, 2023

SB 4 requires California cities to ministerially approve 100% affordable housing on land owned by religious institutions and nonprofit colleges — regardless of local zoning. As of July 1, 2024, a church parking lot in a single-family zone can host a 100% affordable apartment building without a public hearing or CEQA review.

SB 4Affordable HousingReligious LandNonprofit CollegeMinisterial ApprovalCaliforniaHousing

What SB 4 Does

SB 4 (Wiener, Chapter 778, Statutes of 2023) created Government Code § 65913.16, a new ministerial housing approval pathway for 100% affordable residential projects on land owned by religious institutions and nonprofit colleges. Effective July 1, 2024, qualifying projects must be approved ministerially — without public hearings, without CEQA review, and regardless of how the site is currently zoned.

The practical impact is significant: church parking lots, underused campus parcels, and institutional properties in single-family or commercial zones can now host multifamily affordable housing that local zoning would not otherwise permit. Cities have no authority to deny qualifying SB 4 applications based on zoning inconsistency.

Who This Matters To In City Hall

RoleWhy This Matters to You
Planning DirectorSB 4 applications arriving at the counter must be triaged immediately: Is the landowner eligible? Is the project 100% affordable? Does the site meet the exclusion criteria? These are ministerial determinations — staff approves or denies on objective criteria alone.
City AttorneyDenial of a qualifying SB 4 project exposes the city to Housing Accountability Act enforcement and mandatory attorney fee liability. Counsel should brief staff on the statute's scope before applications arrive.
City ManagerReligious institutions and nonprofit colleges are beginning to partner with affordable housing developers to use this pathway. Applications may arrive with more sophistication and legal support than typical residential submittals.
Housing Element CoordinatorSB 4 sites — institutional properties with ministerial affordable housing potential — may now be counted in Housing Element site inventories. Assess whether your jurisdiction's site inventory accounts for SB 4-eligible parcels.

Legislation Overview

SB 4 (Wiener) | Chapter 778, Statutes of 2023 | Signed: October 11, 2023 | Effective: July 1, 2024 | Creates: Government Code § 65913.16

Who Is an Eligible Landowner

SB 4 covers two categories of landowner:

  • Religious institutions: A religious institution is a nonprofit entity that holds property primarily for religious worship or religious educational uses. The institution does not need to be the project developer — it can lease or ground-lease the land to an affordable housing developer while retaining ownership.
  • Nonprofit colleges: An independent institution of higher education that is a nonprofit, as defined in Education Code § 66010. Community colleges operated by community college districts are public agencies, not nonprofit colleges, and do not qualify under this definition.

The landowner must hold title to the parcel. A religious institution that leases a building from a private owner does not qualify — the institution must own the land.

Project Eligibility Requirements

To qualify for SB 4 ministerial approval, the project must:

  • Be 100% affordable: All units must be deed-restricted and affordable to households at or below 80% of Area Median Income (AMI). SB 4 does not allow market-rate units in the project.
  • Meet site exclusions: The parcel may not be in a very high fire hazard severity zone (unless within a local responsibility area and meeting certain conditions), a special flood hazard zone (FEMA 100-year), wetlands, habitat for endangered or special-status species, or on prime farmland or farmland of statewide importance.
  • Not displace tenants: The parcel may not have had a residential use within the past five years — SB 4 is not a tool for demolishing existing housing.
  • Comply with labor standards: Projects of 10 or more units must use a skilled and trained workforce or pay prevailing wages. Projects of 50 or more units must also provide qualifying healthcare coverage.

What Agencies May and May Not Do

Agencies may still require: Compliance with objective zoning standards (height, setbacks, lot coverage — objectively stated), building code compliance, and standard impact fee payments. Objective design standards that do not preclude the project are permissible.

Agencies may NOT impose: Zoning consistency denials, CEQA review, public hearings, architectural review, neighborhood compatibility analysis, or any other discretionary review condition. The city's role is limited to ministerial review of objective criteria.

Coastal Zone and Fire Hazard Zone Considerations

SB 4 does not exclude the coastal zone — qualifying projects in the coastal zone must still obtain a coastal development permit (CDP) from the appropriate coastal authority, but the city's own planning approval is ministerial. Cities with coastal jurisdiction should establish a dual-track intake process, similar to the SB 423 coastal approach.

The very high fire hazard severity zone (VHFHSZ) exclusion is a significant eligibility screen in many jurisdictions. Many institutional properties — particularly churches with large campuses — may sit partially within mapped VHFHSZ areas. Staff must verify site-specific fire hazard designation at intake before routing the application.

Compliance Risk Assessment

RiskLevelConsequence of Non-Compliance
Denying based on zoning inconsistencyHIGHSB 4 expressly overrides local zoning. Denial based on zoning designation is a HAA violation subject to writ of mandate and mandatory attorney fees.
Requiring CEQA review for qualifying projectsHIGHSB 4 projects are ministerially approved and CEQA-exempt. Requesting an initial study, MND, or EIR is a de facto illegal condition.
Incorrect landowner eligibility screeningMEDIUMWrongly approving or denying based on incorrect landowner classification. Cities should establish a clear intake checklist for nonprofit verification.
Applying subjective design standardsMEDIUMSB 4 allows objective design standards only. Standards requiring staff or commission judgment about aesthetic compatibility are impermissible.
Missing coastal zone CDP coordinationLOWCities in the coastal zone that fail to establish a dual-track intake process may create processing delays that applicants could challenge as de facto denials.

Key Dates

DateEvent
October 11, 2023Governor signs SB 4
July 1, 2024SB 4 takes effect; ministerial approval required for qualifying projects
Current (2026)Cities should have intake procedures in place; audit any SB 4 applications received since July 1, 2024 for compliance

Action Checklist

Immediate — Complete Now

  • Planning Director: Create an SB 4 eligibility screening checklist covering landowner type, 100% affordability commitment, site exclusions (fire hazard zone, flood zone, wetlands), and tenant protection.
  • City Attorney: Review any applications from religious institutions or nonprofit colleges received since July 1, 2024 that were routed through discretionary review — assess HAA exposure.
  • Planning Department: Identify institutional properties in your jurisdiction that may qualify for SB 4 development so staff is prepared when applications arrive.

Near-Term — By June 30, 2026

  • Coastal jurisdictions: Establish a dual-track SB 4 intake process: ministerial planning approval on the city side; concurrent CDP routing to the applicable coastal authority.
  • Housing Element Coordinator: Assess whether SB 4-eligible sites in your jurisdiction should be added to the Housing Element site inventory for the current RHNA cycle.

Frequently Asked Questions

Does a church need to build the housing itself, or can it lease the land to a developer?

The religious institution must own the land, but it does not have to be the developer. Ground leases and land leases to affordable housing developers — where the institution retains land ownership — qualify under SB 4. This is the most common structure for faith-based affordable housing projects.

Does the project need to serve a specific income level?

All units must be affordable to households at or below 80% AMI. The statute does not specify a minimum percentage of units at lower income tiers within the overall 80% AMI ceiling — but the deed restrictions must cover all units. Projects with a mix of 30%, 50%, and 80% AMI units qualify as long as every unit is deed-restricted at or below 80% AMI.

Can the city require design standards that reference neighboring property aesthetics?

No. SB 4 allows only objective design standards — criteria that are met or not met based on verifiable, measurable factors. Standards that ask whether a project is "compatible with" or "consistent with" the surrounding neighborhood require subjective judgment and are impermissible as applied to SB 4 projects.

SB 4 creates a ministerial pathway that many religious institutions are beginning to explore in earnest — often with the assistance of sophisticated affordable housing developers. Cities that are unprepared for these applications risk both legal exposure and missed opportunities to advance local housing goals. Legislaide helps planning departments build SB 4 intake workflows that process these applications correctly from day one.

Published April 6, 2026 by Legal Team at Legislaide.

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