What new SB-9 housing law means for single-family zoning in California

What is Senate Bill 9 and what it means for homeowners?

California Senate Bill 9 is the most controversial of the two new laws. It allows property owners to split a single-family lot into two lots, add a second home to their lot or split their lot into two and place duplexes on each. The last option would create four housing units on a property currently limited to a single-family house.

The new law will mark a shift from current policies that allow only two large units — a stand-alone house and an accessory dwelling unit — on single-family lots, as well as an attached junior unit no larger than 500 square feet.

Under the new law, cities and counties across California will be required to approve development proposals as long as they meet this law specified size and design standards.

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Can homeowners use Bill 9?

Homeowners or landlords can apply to upzone their properties through their local jurisdiction, but only if they plan to live on the property for a while.

Property owners must sign an affidavit stating they will occupy one of the housing units as their primary residence for at least three years after splitting their property or adding additional units.

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What are the caveats of Bill 9?

The law is designed to create additional housing while also preserving low-income, affordable units.

A proposed project under this new law cannot result in the demolition or alteration of affordable or rent-controlled housing or market-rate housing that has been occupied by a tenant in the past three years. Properties listed as historic landmarks or those located within a historic district are off-limits for new development. Wetlands and farmland are also exempt.

If someone chooses to split their property in two, each new lot must be at least 1,200 square feet, according to the new law.

Any unit created as a result of the law cannot be used for short-term rentals. They must be rented for a term longer than 30 days.

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Does this law allow for offices and new housing units on single-family properties?

No. Any new units created under SB 9 must only be used for residential purposes.

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Do cities and counties have to abide by SB-9?

Under SB 9, local government officials may only deny a development application if they find that the proposed project would have a “specific, adverse impact” on “public health and safety or the physical environment” and there are no feasible and satisfactory mitigation options.

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Will local rules about maximum square footage, building height and parking apply?

Proposals under this new law must adhere to objective zoning and design review standards established by local cities and counties. Developments must still follow local zoning rules such as those governing height and yard size requirements.

No parking is required for additional units if the property is within a half-mile of a major public transit stop. However, a local agency can require up to one parking space per unit if there are no frequent transit stops nearby.

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Homeowners start with a Feasibility Study

Feasibility studies help you figure out if a project SB9 is the right thing to do to reach your goals. This is what you need to do before paying a lot of money and wasting time:

1. Check if your property is located in one of the qualified zones by searching your address here
2. Understand the type of development you could build on your property considering your lot size and the existing building(s). Being allowed to build per zoning and have enough room to add building area on your lot, are two different things. This needs to be calculated;
3. Choose the location of the new building(s) for each development option;
4. Check if the calculated size of the new building(s) is enough for you to:
   • get the ROI from renting or sale it
   • host family and friends
   • afford to build
   • give you the market value to cover the construction costs
5. You can do all these things on your own or get it right away with your Development Analysis.

Once you have all these figured out, it's time to look for a team to help you complete the project. Going through these 5 Steps before deciding to move on with your project, it'll help you have a focused conversation with an architect, contractor and with your lender. Choosing a realistic path, it'll make you and your team have a positive experience going through this project.  

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