Possible Development Scenarios under SB-9 San Francisco

Scenario 1

Two units + ADU & Not Lot Split

SB-9 Parcel Development Scenarios for Projects that do not use the Lot Split Provision Without the lot split provisions, an SB-9 project could either demolish an existing single-family house and construct a new duplex, or convert the existing single-family structure into a duplex. This type of project does not require owner occupancy after project application (unlike those also pursuing a lot split). Neither unit would be subject to rent control, and the units could be sold as condominiums at project completion. Parcels of any size are eligible for SB-9 development without a lot split, and although there are no minimum or maximum unit sizes required by SB-9, the City must allow each unit to be at least 800 square feet. The Accessory Dwelling Units that may be added in this scenario are State Program Accessory Dwelling Units.

Scenario 2

Two units + ADUs & Lot Split

SB-9 Parcel Development Scenarios for Projects that also use the Lot Split Provision. The second path for SB-9 development is to split a single-family lot into two lots. Both lots must be at least1,200 square feet. Neither lot can be more than 60% of the size of the original lot. This type of project requires an affidavit from the applicant that they intend to occupy one of the housing units as their principal residence for a minimum of three years from the date of the approved lot split, unless the applicant is a community land trust or a qualified nonprofit corporation. None of the primary units created on a parcel that was split under SB-9would be subject to rent control, and the units could be sold independently at project completion. The Accessory Dwelling Units that may be added in this scenario are State Program Accessory Dwelling Units.

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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.  

SB-9 is a very exciting new law for home owners and home buyers but not all the single family lots are eligible. So, first you need to check if the property is eligible for SB-9.

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