Downey Told a Church to Rezone First; HCD Says SB 4 Doesn't

You own a church campus with room to spare, and a partner ready to build affordable housing on it. California's SB 4 — the 2023 "Yes In God's Backyard" faith-lands law — promises ministerial, by-right approval: no discretionary hearing, no rezone. Then the city reads its own code: altering any structure on the site ends the church's legal status as a "nonconforming use." So before one unit is approved, you'd have to rezone the site.

Here's the thing: HCD's position is that SB 4 carries the church along with the housing — by right, without a rezone.

The project, and the barrier

Abbey Road, Inc. / Penny Lane Centers wants to build 60 units of affordable housing on part of St. Mark's Church campus at 10354 Downey Avenue, using the SB 4 ministerial track. Per HCD, half of the units will be permanent supportive housing, for households at 30, 50, and 60 percent of area median income. HCD notes Downey is home to 258 people experiencing homelessness.

The catch is the zoning. The site's general plan designation is Medium Density Residential, which should correspond to R-3. But the parcel is zoned R-1, single-family — and religious uses aren't permitted in R-1, so St. Mark's is already a legal nonconforming use. Downey's code says such a use may continue only if there is "no relocation of, alteration or addition to any use, building, or structure." Because the project alters a structure, the City says the church would lose that status — so the applicant must rezone to R-3 first, then re-permit the church.

What SB 4 actually says about the church

HCD starts with the statute. SB 4 (Gov. Code § 65913.16) folds an existing religious use into the by-right approval, quoting:

"[A] development project that is eligible for approval as a use by right pursuant to this section includes any religious institutional use … if all of the following criteria are met: (1) The total square footage of nonresidential space on the site does not exceed the amount previously existing … (2) The new uses abide by the same operational conditions as contained in the previous conditional use permit."

Both criteria are met here, in HCD's read: the project actually reduces total nonresidential square footage, and the church keeps the same operating conditions. As HCD put it: "Since both criteria are met, the church use may continue, despite the City's conflicting objective standard about nonconforming uses."

Why does the nonconforming-use rule give way? Because SB 4 only requires a project to meet objective development standards "that are not in conflict with this section" (Gov. Code § 65913.16(c)(10)). A rule that would end the church's right to operate — and force a rezone — conflicts with that command, so in HCD's position it can't be enforced to block the project.

Verified against HCD's Letter of Support and Technical Assistance to the City of Downey — 10354 Downey Avenue, July 8, 2026, signed by Melinda Coy, Housing Accountability Unit Chief.

The zoning should never have been R-1

HCD adds a second point: state law requires a city's zoning to be consistent with its general plan (Gov. Code § 65860(a)). Downey's R-1 zoning is inconsistent with the site's Medium Density Residential designation — if it matched, the site would be R-3, where religious uses are conditionally permitted.

The City promised to fix this. Housing-element Program 1.3 commits Downey to "Resolve General Plan and Zoning Ordinance inconsistencies in residential land use designations" within three years of adoption. The housing element was adopted October 11, 2022, so the deadline was October 11, 2025 — now past. HCD is blunt: "the Applicant should not be punished for the City's failure to comply with state law in a timely manner."

HCD flags the enforcement risk, not a verdict: it may revoke its finding that Downey's housing element complies and may refer noncompliance to the Attorney General (Gov. Code § 65585). HCD "urges the City to process the project expeditiously under SB 4, without requiring a rezone, and allow the church to continue operating."

Why it's worth knowing

For a faith landowner, developer, or planner, the lesson is leverage: a "rezone first" demand — or a nonconforming-use rule aimed at the existing church — may not survive SB 4, in HCD's reading. Check whether your project keeps nonresidential square footage flat and the religious use's conditions unchanged — the two hinges.

One caution: this is a Letter of Support and Technical Assistance — HCD's interpretation, not a court ruling. HCD letters carry weight, but courts are the final word, and your parcel's facts matter. Verify with your jurisdiction and counsel before relying on any of it. None of this is legal advice.

What CrossBeam does with it

When the letter lands on your desk, CrossBeam turns it around the same day: what each item is actually asking, the code or law behind it, and a written response you can hand to your team or your attorney — the back-and-forth that used to eat weeks, done in a couple of hours.