Definition
SB 6 (Caballero), Chapter 365, Statutes of 2022, the Middle Class Housing Act, codified at Government Code § 65912.110 et seq., allows residential development — including market-rate housing — on any parcel that is zoned for retail commercial or parking use, provided the parcel meets site eligibility criteria and the project complies with labor standards. SB 6 overrides local general plan designations and zoning codes that would otherwise prohibit residential use on these sites.
Effective: January 1, 2023
What SB 6 Allows
SB 6 permits an applicant to propose a residential or mixed-use residential project on a commercially zoned site regardless of what the local general plan or zoning code says about residential use on that parcel. Key characteristics:
- Market-rate housing is allowed. Unlike AB 2011's streamlined pathway, SB 6 does not require affordable set-asides or a 100% affordable project to use the override. Market-rate residential projects qualify.
- Discretionary review still applies. SB 6 does not provide ministerial approval. Projects must go through the city's normal discretionary review process — design review, planning commission hearings, CEQA, and standard conditions of approval. The city retains its discretionary authority; what SB 6 eliminates is the ability to use the commercial zoning designation as the sole basis for prohibiting residential use.
- The override is for residential use, not for bypassing all local standards. Cities may still apply objective development standards, design review, and other applicable local requirements — consistent with the Housing Accountability Act's constraints on discretionary review of qualifying housing projects.
Site Eligibility Requirements
A site qualifies for SB 6 if it meets all of the following criteria:
- The parcel is zoned for retail commercial use (including shopping centers, commercial corridors, and strip malls) or for surface parking or parking structure use at the time of application.
- The parcel is not located in a very high fire hazard severity zone, a special flood hazard area, or other sensitive site types specified in the statute.
- The parcel is not on prime farmland or farmland of statewide importance.
- The parcel must be located within a city or urbanized county — SB 6 is directed at urban infill, not rural commercial conversion.
Labor Standards: Skilled and Trained Workforce
All projects using the SB 6 pathway must use a "skilled and trained workforce" as defined in Labor Code § 3075 et seq. This is a higher standard than prevailing wage alone:
- All workers in each apprenticeable craft must be paid prevailing wages.
- A specified percentage of workers in each apprenticeable craft must have graduated from a Joint Apprenticeship Training Committee (JATC) program — for most crafts, at least 30% to 60% depending on the craft and project location.
The skilled and trained workforce requirement applies to all workers on the project, not just a subset. This is a significant labor condition that differs from the prevailing wage-only requirement in some other housing statutes.
SB 6 vs. AB 2011: Key Differences
| Feature | SB 6 | AB 2011 |
|---|---|---|
| Market-rate housing allowed | Yes | Only in Pathway 2 (mixed-income); Pathway 1 requires 100% affordable |
| Ministerial (by-right) approval | No — discretionary review still applies | Yes — ministerial for qualifying projects |
| CEQA review | Yes — CEQA applies | No — ministerial projects are CEQA-exempt |
| Labor standards | Skilled and trained workforce required for all projects | Prevailing wage + skilled and trained for Pathway 2; prevailing wage for Pathway 1 |
| Eligible sites | Retail commercial and parking zones | Retail commercial, hotel, and office zones |
Interaction with SB 35 and SB 423
A project on a SB 6-eligible site may also separately qualify for ministerial approval under SB 35 or SB 423 if it meets the eligibility criteria for those statutes (transit proximity, affordability thresholds, labor standards, etc.). SB 6 unlocks the residential use on the site; SB 423 or SB 35 would provide the ministerial approval pathway. A developer on a commercial site who wants both market-rate approval and ministerial processing would need to satisfy SB 423's eligibility criteria — SB 6 alone does not get them ministerial processing.
SB 6 opens California's commercially zoned parcels to residential development, but it does not eliminate discretionary review. Cities that receive SB 6 applications must process them through normal planning procedures while understanding that the commercial zoning designation alone cannot be used to prohibit residential use. Legislaide helps cities identify SB 6-eligible parcels and assess how SB 6 interacts with existing zoning and design review procedures.
Frequently Asked Questions
What is SB 6?
SB 6 (Caballero, Chapter 365, Statutes of 2022, Government Code § 65912.110 et seq.) is the Middle Class Housing Act. Effective January 1, 2023, it allows residential development — including market-rate housing — on commercially zoned parcels throughout California, overriding local general plan and zoning designations that would otherwise prohibit residential use.
How is SB 6 different from AB 2011?
Both allow residential development on commercial sites. Key differences: SB 6 allows market-rate housing with no affordability requirement; AB 2011 allows ministerial (no public hearing, no CEQA) approval for qualifying affordable projects. SB 6 requires full discretionary review — the city can still hold hearings and apply CEQA. AB 2011 provides faster, ministerial processing.
What site eligibility requirements apply under SB 6?
A site qualifies for SB 6 if it is: zoned for retail commercial or parking use; not on certain excluded site types (fire hazard zones, wetlands, farmland, etc.); and the project meets applicable labor standards. The overarching requirement is that the site's underlying commercial zoning must be the only impediment to residential use.
What labor standards does SB 6 require?
All SB 6 residential projects must comply with prevailing wage and use a skilled and trained workforce for construction. This is a more demanding labor standard than standard residential construction — reflecting the Legislature's trade-off of allowing market-rate housing on commercial land in exchange for union labor standards.
What can cities still require from an SB 6 project?
Cities may still apply: objective design standards, standard discretionary review (including CEQA, planning commission hearings, and conditions of approval), building code requirements, and health and safety standards. What cities cannot do is deny the project solely because residential use is not otherwise permitted by the zoning or general plan.
Published April 6, 2026 by Legal Team at Legislaide.