The California Department of Housing and Community Development ruled on Friday that San Francisco did not meet its housing permitting goals in 2023, making it the first city in the state to be subject to SB 423.

Under the new law, a majority of housing projects in the city now will be eligible for "over-the-counter" approvals, meaning they won't need approval from the Planning Commission and therefore cannot be appealed to the Board of Supervisors.

The new state law, which also exempts eligible projects from extensive environmental reviews, is expected to cut the average time frame for entitlements from two years to under six months in San Francisco, the San Francisco Chronicle reported.

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