A Guide to SB9, aka Senate Bill 9 in California
2021 California Senate Bill 9 (SB9), also known as the California Housing Opportunity and More Efficiency (HOME) Act is a bill to promote the creation of housing units in single-family residential zones in the State of California. The impact of this legislation is to enable property owners to subdivide and add additional residences, resulting in the creation of more housing but also presenting an amazing investment opportunity.
Owners of certain single-family properties can now build either two 800 square foot minimum homes or one duplex on their property with a maximum of four housing units on a previously single-family lot. That means property owners can potentially have a total of 4 units across 2 lots. The bill aims to streamline the approval process for certain housing developments and urban lot splits, while also addressing concerns related to housing affordability, historic preservation, and transportation access.
The bill seeks to achieve these goals by establishing specific criteria for ministerial approval of proposed housing developments and urban lot splits, allowing for the extension of tentative map expiration, and providing clear guidelines for local agencies to follow. By doing so, the bill aims to facilitate the construction of new housing units, particularly those that are affordable, without requiring lengthy discretionary reviews and hearings.
Key provisions of the bill include:
Simplified Subdivisions: It makes it easier to divide a piece of land into smaller parts for building houses.
Clear Conditions to Qualify: For this easier process, the housing project must meet some conditions. The place needs to be in a city or urban area, follow certain size rules, and not affect certain affordable housing.
Clear Building Rules: Local authorities can make rules for buildings, but these rules need to be clear and not depend on personal opinions. They can't stop you from building two homes, and each home needs to be a certain size.
Parking and Access: You might need to provide some parking, but not always. If you're close to public transportation, you might not need as much parking.
Affidavit and Renting: If you use this process, you might need to promise to live in one of the homes for a few years. Also, if you rent out the homes, the renters need to stay for more than a month.
Extension and Limits: There are limits to how long the process can be extended, and it doesn't work if you want to build more than two homes.
Coastal Areas and Existing Laws: Some coastal rules and laws still apply, and this new process doesn't change everything.
Here's an example of development strategies based on the bill.
Let us take the confusion out of understanding Senate Bill 9. If you or someone you know is seeking guidance on Senate Bill 9 for a custom home build, schedule a free consultation with us today!
SB 9 Eligibility Requirements for Housing Developments
The following are eligibility requirements to qualify for the simplified process of subdividing land and building up to four units:
Location: The proposed housing development must be in a city or urban area designated by the United States Census Bureau as an urbanized area or urban cluster.
Parcel Size: The land being developed, and the result of the process needs to meet certain size requirements outlined in the bill.
Affordable Housing: The proposed development must not require the demolition or alteration of certain types of affordable housing, including housing with rent restrictions for moderate, low, or very low-income individuals or families.
No Recent Demolitions: The development cannot involve the demolition or alteration of housing occupied by a tenant within the last three years.
Historic Restrictions: The land should not be located within a historic district, on the State Historic Resources Inventory, or designated as a city or county landmark or historic property.
Existing Structures: The proposed development cannot involve demolishing more than 25% of existing exterior structural walls unless specific conditions are met.
Adjacent Structures: The bill allows for adjacent or connected structures if they meet building code safety standards and allow separate ownership.
Owner Occupancy: The developer must sign an affidavit confirming that they intend to live in one of the housing units for a minimum of three years unless they are a community land trust or qualified nonprofit corporation.
What is the Process to Use SB 9?
The following are the steps or items to consider when utilizing SB 9, assuming your project conforms to its requirements.
Determine Eligibility: Assess whether your proposed housing development meets the eligibility criteria outlined in the bill. This could include factors such as the type of development (e.g., urban lot split), location within designated urban areas, compliance with zoning standards, and not requiring the demolition of specific types of housing. It is important to work with experts to assess the potential to leverage this bill, or you could risk developing documentation that is not applicable. Buildable will take care of this for you at the onset. Additionally, improvements may be required to fulfil the conditions of the subdivision, so it’s important to understand the costs upfront.
Reports and Documentation: Prepare the necessary application documents, including the parcel map and any required supporting materials. Make sure to develop all the required documentation to demonstrate that your project meets the criteria specified in the bill. This could include surveys, maps, environmental reports, etc. There will be multiple parties involved with this.
Prepare Application: Prepare the necessary application documents, including the parcel map and any required supporting materials for submission to the local agency. Make sure to include all the required information to demonstrate that your project meets the criteria specified in the bill.
Submit Application to Local Agency: Submit the application to the relevant local agency responsible for reviewing and approving development projects. Ensure that your application package is complete and complies with any local agency-specific requirements.
Review and Approval: The local agency will review your application to determine if it meets the criteria set forth in the bill. The review process is expected to be ministerial, meaning that it involves objective and uniform standards without discretionary review. The agency will assess factors such as zoning compliance, lot size, setbacks, and other relevant standards.
Comply with Conditions: If the application is approved, comply with any conditions set by the local agency. These conditions could include requirements related to parking, access, easements, and other relevant factors.
Sign Affidavit: If required by the bill, sign an affidavit stating your intention to occupy one of the housing units as your principal residence for a specified minimum duration (unless you are exempted under specific categories, such as community land trusts or qualified nonprofit corporations).
Construction and Development: Once you've obtained approval and fulfilled any specified conditions, proceed with the construction and development of the housing units as outlined in your approved application.
Annual Reporting: If applicable, the local agency may require reporting on the housing units created under the provisions of the bill in their annual housing element report.
Who Does SB9 Benefit?
The bill primarily benefits individuals and families seeking housing in California, particularly those looking for affordable housing options. It aims to address housing shortages and affordability challenges by streamlining the approval process for certain housing developments and urban lot splits. By making it easier to create new housing units, the bill can potentially increase the supply of housing, which may help alleviate housing shortages and contribute to more affordable housing options for residents.
Additionally, the bill benefits developers and property owners by providing clearer and more predictable guidelines for the approval of housing projects. The streamlined process outlined in the bill could reduce the time and uncertainty associated with obtaining approvals, potentially making housing development projects more financially viable.
Who Does SB9 Not Benefit?
While the bill primarily focuses on streamlining housing development processes and promoting affordable housing, there are potential stakeholders who might not benefit or could potentially face challenges as a result of its provisions. Some of these could include:
Neighboring Property Owners: Depending on the specific provisions and standards set by the local agency, neighboring property owners might be concerned about potential changes in building sizes, setbacks, and overall neighborhood density that could result from the streamlined housing development process.
Developers Focused on Larger Projects: The bill primarily seems geared towards smaller-scale developments and urban lot splits. Developers with larger projects might not find the provisions of this bill relevant to their needs or might find that they are still subject to more comprehensive regulatory processes.
Local Government Officials: While the bill aims to streamline processes, it could potentially limit the discretion of local government officials in certain decision-making aspects related to housing development, especially when it comes to design review and certain zoning standards.
Environmental Advocates: The bill exempts projects approved through the streamlined process from the California Environmental Quality Act (CEQA) review. This could be of concern to environmental advocates who view CEQA as an essential tool for assessing and mitigating potential environmental impacts of development projects.
Affordable Housing Advocates: While the bill promotes housing development, it might not provide direct mechanisms to ensure that a significant portion of the newly developed units are specifically dedicated to affordable housing, which could be a concern for advocates focused solely on addressing affordability challenges.
How Buildable Can Help Guide You Through the SB9 Process of Land Splitting & Home Building
At Buildable, we specialize in demystifying the complex and often opaque process of land development in San Diego, CA. Our mission is to guide our clients smoothly through their projects, helping to avoid common pitfalls while saving both time and money. From the outset, Buildable takes the lead, leveraging our network of reliable partners to ensure your project is not only completed within budget but also meets your timeline. To learn more about how we can assist you and to discuss your specific project needs, schedule a consultation with us here.
