If you're a California homeowner, you've probably heard about Senate Bill 9 (SB9) and its potential to transform residential properties. SB9, which went into effect on January 1, 2022, is designed to help ease the state's housing shortage by allowing homeowners to split single-family lots, creating space for more dwellings and affordable housing options.
So, what does SB9 mean for you? Let's break it down.
What SB9 Offers
SB9 allows homeowners to divide a single-family lot into two separate lots and build up to two dwelling units on each. This means you can potentially turn one lot into four dwellings! These units could be a combination of duplexes or a primary home with an accessory dwelling unit (ADU) or junior accessory dwelling unit (JADU).
However, the bill is still evolving, and there are a few things to consider when planning a lot split under SB9, especially if you're thinking about future resale or rental income.
Requirements for Lot-Splits
Before moving forward with a lot split, there are a few essential requirements:
- Lot Size: After splitting, each lot must be at least 1,200 square feet.
- Limitations: A lot can only be split once, and adjacent lots under the same ownership can't be split.
- Development Standards: Local agencies may impose additional requirements, such as setbacks and access routes.
- Ministerial Approval: New dwellings must be approved using objective standards, streamlining the permitting process and avoiding subjective style rules.
Also, parking isn’t required if your property is within a half-mile of public transit—a big plus in dense urban areas.
Ideal Properties for Lot-Splitting
SB9 benefits homeowners with deep or corner lots. Deep lots allow for easier placement of new units while maintaining privacy and functionality. Corner lots are especially advantageous because of the extra street frontage, which simplifies access and enhances curb appeal.
Pros and Cons of SB9
SB9 opens up opportunities for homeowners to generate additional income, whether by selling part of their property or building rental units. It’s also an excellent option for multigenerational living, offering families the chance to stay close while still having separate spaces.
On the downside, SB9 isn’t without its challenges. Development and impact fees apply to duplexes, and lot splits can involve hefty parcel-mapping costs. Additionally, owner-occupancy is required for at least three years, limiting the appeal for some developers. Lastly, while SB9 aims to streamline approvals, the process can still be slow in cities without established procedures.
Is SB9 the Future?
Though SB9 hasn’t been widely utilized yet, its potential is significant, especially as new legislation like Assembly Bill 1033 evolves. AB 1033 could make it easier to sell ADUs separately from the main house, increasing the flexibility and appeal of lot splits for homeowners.
In conclusion, while SB9 still has a few wrinkles to iron out, it presents a promising opportunity for California homeowners to maximize their property’s potential, whether for investment, family living, or helping ease the state’s housing crisis.
If you're considering a lot split or want to learn more about SB9, I’m here to help you navigate the process.
Let's explore how you can make the most of this new housing opportunity.
