What is SB9 ?

In the wake of California's housing crisis, characterized by skyrocketing prices and a limited housing supply, Senate Bill 9 (SB9) emerged as a beacon of hope. Often referred to as "The California Home Act" the goal of SB9 was simple yet powerful: to streamline the construction of new residential units in single-family neighborhoods. With more people seeking affordable homes, SB9 has the potential to reshape the real estate landscape, making it easier for families to find suitable housing.

This will walk you through some of the essentials of SB9, what it entails, how it impacts homeowners and developers, as well as the benefits and challenges it presents.

What is SB9?

Senate Bill 9 (aka SB9), was enacted in September 2021. It allows California homeowners to split their single-family lots into two parcels. This new law permits each lot to have up to two residential units, allowing for as many as four residential units, where there was once only a single home.

This legislation is part of California's larger effort to combat its housing shortage, aiming to make housing not just existing but affordable for more residents.

How Does SB9 Work?

Understanding the mechanics of SB9 is important. These are some of the key points that clarify the bill and it's implementation:

1. Lot Splitting: Homeowners can divide their single-family lot into two separate lots, which increases flexibility and potential for property development.

   
   

2. Additional Units: Each lot can be entitled to have up to two residential units, meaning from one original lot, SB9 can permit up to four residential units.

   
   

3. By-Right Development: Developments that meet specific criteria can proceed without a lengthy approval process, speeding up the permitting phase significantly.

   
   

4. Owner Occupancy Requirement: Property owners may need to live in one of the homes for a certain period to qualify for these benefits.

   
   

5. Infrastructure and Zoning: SB9 allows for revisions to local zoning restrictions, which helps facilitate the necessary infrastructure to support increased housing density.

   
   

6. Updates: SB9 has seen several amendments including AB68, and AB1103 which add important flexibility to the use of SB9.

   
   

The Unique Advantages of SB9

Recognizing the unique benefits of SB9 is crucial for homeowners and investors. There are numerous benefits to the code, but some of the key advantages are:

1. Increased Housing Availability

One of the core benefits and goals of SB9 is its potential to increase housing supply. By allowing more units in zonings that previously only allowed for a single-family home, the new code can help increase California's urgent need for accessible housing.

For instance, if neighborhoods embrace this change, it could potentially lead to adding tens of thousands of new housing units. This increase in supply could lead to reduced competition, and greater price stabilization.

2. Increased Property Value

For homeowners, SB9 is likely to elevate property values. The mere ability to split a lot and add more units can make properties more attractive to potential buyers. In some cases, homeowners could see an increase of 10% to 20% in property value based simply on development potential.

3. Flexibility in Housing Types

SB9 allows homeowners the option to build various residential units, such as duplexes, triplexes, and accessory dwelling units (ADUs and JADUs).

This flexibility caters to diverse family structures and income levels, as families can create multigenerational homes or rental income opportunities.

4. Simplified Process for Development

The streamlined approval process encourages more homeowners to invest in housing developments. Reducing bureaucratic hurdles can accelerate construction timelines by as much as 30%, allowing communities to respond swiftly to housing needs.

5. Promotes Sustainable Living

By enabling higher-density housing, SB9 aims to foster sustainable living environments. More residential units close together can decrease reliance on cars, which helps lower carbon emissions and supports walkable neighborhoods.

6. Promotes Infrastructure Improvements and Expansion

Higher density often leads to improvements in services and infrastructure. More public transportation, parks, etc.

Considerations and Challenges Associated with SB9

While SB9 presents many advantages, it is essential to be aware of potential challenges:

1. Community Resistance

Local residents may resist new developments, especially those used to low-density living. Concerns about increased traffic and changes in neighborhood character can fuel resistance to SB9.

2. Potential Overcrowding

With greater housing density, there's a risk of overcrowding. For example, municipalities need to ensure that local infrastructure can accommodate increased traffic and population demands without compromising quality of life.

3. Development of Affordable Housing

Although SB9 expands housing options, it does not guarantee that new units will be affordable. Communities need to advocate for policies ensuring that housing remains accessible to lower-income families.

4. Property Values and Gentrification

Investments in these properties can lead to increased market values, triggering gentrification and complicating the already high barriers to home ownership and rents. This can potentially displace long-term residents who may no longer be able to afford to live in their own neighborhoods.

The Role of Local Governments

Local governments will play a vital role in implementing SB9 while addressing community needs.

1. Zoning Adjustments

City planning agencies may need to revise zoning laws to create clear guidelines for new developments. Establishing these rules upfront can help maintain neighborhood character while promoting orderly growth.

2. Engaging the Community

It is essential for local governments to engage residents through town hall meetings and community forums. An open dialogue can help alleviate fears surrounding changes and foster a sense of collaboration.

3. Infrastructure Planning

Municipalities must prioritize infrastructure planning to support increased density. They should evaluate traffic patterns, public transport, and access to essential services, like schools and healthcare facilities, to ensure sustainability.

Staying Informed About SB9

Whether you are a homeowner, prospective developer or investor, or simply curious about housing trends in California, staying informed about SB9 is important.

1. Consult Local Resources

Check your city or county website for information about how SB9 is being implemented in your area. Many regions have specific guidelines related to the bill.

2. Attend Community Meetings

Participate in local meetings discussing SB9 to voice concerns and understand its impact on your neighborhood.

3. Stay Updated with News and Resources

Keep an eye on local news and housing advocacy groups. Being aware of ongoing discussions can help you navigate the evolving housing landscape.

Navigating the Future of Housing in California

Senate Bill 9 is set to transform California's housing market by promoting more residential units in single-family zones. While the benefits, like increased housing availability and higher property values, are significant, it is essential to consider the community challenges and concerns that may arise.

As California adapts to these changes, community engagement, careful planning, and a focus on affordability will be vital.

By staying informed and participating in discussions about SB9, you can contribute to shaping a future that meets the diverse needs of your community. Together, we can harness the benefits of SB9 while addressing its challenges, paving the way for a more sustainable and equitable housing environment.

If you're considering building using the SB9 code, contact us for a free consultation.