Senate Bill (SB) 9 (Atkins), signed into law by Governor Newsom on September 16, 2021, allows property owners within a single-family residential zone to build two units and/ or to subdivide lot into two parcels, for a total of four units. Some details of the legislation are still unclear as some provisions are difficult to interpret and the State is still working on their guidance. The affected State legislation is the additional Government Code Sections 65851.21 and 66411.7, and the amended Government Code Section66452.6 (Subdivision Map Act).

The bill requires approval of the following development activities:

• Two-unit housing development – Two homes on an eligible single-family residential parcel (whether the proposal adds up to two new housing units or adds one new unit to one existing unit).  A MDUD is a development resulting in no more than two dwelling units on a single lot, inclusive of new and existing structures.

• Urban lot split - A one-time subdivision of an existing single-family residential parcel into two parcels. This would allow up to four units (unless a jurisdiction decides to allow additional units). An Urban Lot Split (ULS) is an action that divides an existing single premise into no more than two separately conveyable lots.

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Regulations that Apply to both MDUDs and ULS Projects

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Qualified Zones for SB9

An MDUD/ULS is permitted on a lot zoned for single dwelling unit development but not multiple dwelling unit development. Specifically, it is allowed in zones where the Use Regulation Tables identify an MDUD allowed as a Limited Use: RS, RE, RX, and RT zones and Planned District Zones that permit single dwelling unit development but not multiple dwelling unit development.

Check the Zoning for your property by searching your address.

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Eligibility Requirements

MDUDs/ULSs are not permissible on certain premises. For example, they are not allowed if any portion of the parcel is located in or contains any of the following:

Prime farmland or farmland of statewide importance;

Wetlands;

The Very High Fire Hazard Severity Zones, unless the development complies with Chapter 7A of the California Building Code;

A hazardous waste site, unless the site has been cleared for residential or mixed uses;

Special Floor Hazard Areas, unless the premises have been subject to a Letter of Map Revision prepared by the Federal Emergency Management Agency (FEMA) and issued to the local jurisdiction or the premises meet the FEMA requirements necessary to meet minimum flood plain management criteria of the National Flood Insurance Program;

A delineated earthquake fault zone, unless the development complies with applicable seismic protection building code standards;

A regulatory floodway as determined by FEMA;

The Multi-Habitat Planning Area (MHPA) of the Multiple Species Conservation Program (MSCP) Subarea Plan;

Environmentally Sensitive Lands conserved by dedication, a covenant of easement, or conservation easement;

A historic district that is a designated historical resource or on a property containing a designated historical resource;

A development that requires demolition or alteration of a dwelling unit that contains rent-controlled housing or a dwelling that a tenant has occupied in the last three years

A development that requires the demolition or alteration of a dwelling unit that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate income, low income, or very low income;

Premises with SRO hotel rooms/dwelling units that were withdrawn from rent or lease in accordance with California Government Code Sections 7060 through 7060.7 during the 15 years preceding the applications; or

A development that requires the demolition of more than25% of the existing exterior structural walls of a dwelling unit that a tenant has not occupied in the last three years.

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Maximum Building Area under SB9

Development that involves an Urban Lot Split and construction of a MDUD shall comply with the FAR of the underlying zone unless the second dwelling unit results in the lot exceeding the FAR in the underlying zone. The second unit in this instance, is limited to 800 square feet.

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Development and Zoning Standards for MDUD

Unit Size:

If a dwelling unit already exists on the lot, the second primary dwelling unit can be no larger than 800 square feet if the parcel is non-compliant with development regulations such as the FAR in the underlying zone. The development shall otherwise comply with the development regulations in the underlying zone.

Rental information:

An MDUD shall not be rented for fewer than 31 days.

Parking

• No off-street parking is required if the unit is proposed within Transit Priority Area (TPA).
• For parcels outside of a TPA, one off-street parking space per dwelling unit is required for the third and fourth units (of any kind) constructed on the initial (unsubdivided) lot.
• One off-street parking space per dwelling unit is required within the Beach Impact Area of the Parking Overlay Zone unless the applicant can demonstrate to the satisfaction of the City Manager that there is access     to a car share or other shared vehicle within one block of the premises.

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Setbacks

• No setback is required for a conversion of an existing structure to a new dwelling unit;
• A dwelling unit constructed in the same location or within the building envelope as an existing structure may observe the same setbacks;
• Newly constructed dwelling units must comply with street and front setbacks in the underlying zone;
• Newly constructed one-story dwelling units with a 16-feet height or less may abut the interior side or rear property line;
• Newly constructed dwelling units exceeding 16-feet in height shall have a four-foot interior or rear setback if abutting a residential zone or a premise developed with exclusively residential uses.

Restrictions on Urban Lot Splits

In addition to the restrictions above, Urban Lot Split provisions may not be used in the following circumstances:

• The lot is not located in a single-family zone;
• The lot was established through a prior Urban Lot Split; or
• The recorded owner or any person acting with the recorded owner has previously subdivided an adjacent lot.

Parcels created through urban lot splits must comply with all the following:

• The two lots shall be approximately equal in size, with either lot not being smaller than 40 percent of the lot area of the original lot;
• The newly created lots shall not be smaller than 1,200 square feet;
• Any lots created shall be split in a manner that complies with the floor area ratio (FAR), street frontage, driveway width requirements and other standards in the underlying zone, whenever feasible:
• Developments that do not comply with street frontage and driveway width requirements of the base zone shall record an access easement on the lot.

Any rental unit created through an urban lot split shall not be rented for less than 31 days. In addition, only residential uses are permitted on a lot created by an urban lot split.

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Number of Dwelling Units

The regulations allow no more than two MDUDs, whether existing or new, on a lot. Under certain circumstances, an applicant may also use these regulations in conjunction with the Accessory Dwelling Unit regulations. However, under no circumstances shall the total number of dwelling units across the two lots result in more than four units.

For example:

No Urban Lot Split: A property would allow up to two MDUD units, subject to applicable regulations, and would allow up to two ADUs or JADUs; under no circumstances shall the total number of dwelling units result in more than four units. Constructing accessory units in this manner may restrict future development.

Urban Lot Split: If the project proposes a lot split using the ULS provisions and construction of MDUD units, then no ADUs/JADUs would be permitted. The project may propose up to two MDUDs on each lot resulting from the subdivision for a total of no more than four on the initial (unsubdivided)lot.

How to Apply

Applications for multi-family dwellings are being accepted in paperless digital formats:

• Digital Application Portal can be navigated here: Development Services Application Portal
• For new Permit Applications, request “Building Permit.”
• For changes to an existing issued permit (under construction), request “Construction Change to a Building Permit.”

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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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