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SB-9 CALIFORNIA HOUSING ACT

New Opportunities
for California Homeowners

If you’re a California homeowner, your home could offer more value for you thanks to new residential zoning laws. Effective January 1, 2022, Senate Bill 9 (SB 9) gives homeowners in many single-family zones the green light to build additional units on their current property or subdivide their land into two separate entities and sell one of the lots. Whether you’ve thought about a multigenerational home, a guest house, or a rental income stream, SB 9 offers the opportunity to build more on your existing homesite and we can help. As a leading single-home replacement builder, we specialize in custom homebuilding solutions that maximize the space and potential of your existing homesite.

Interested in learning about plan options for your specific homesite?

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DETAILS ABOUT SB 9

What this bill does

SB 9, also known as the California Housing Opportunity and More Efficiency (“HOME”) Act, went into effect on January 1, 2022, and gives existing homeowners the opportunity to:

  1. Build an additional unit on a single-unit zoned homesite; or
  2. Subdivide a single-unit zoned homesite into two separate lots

SB 9 Housing split lot illustration

Why was SB 9 created?

The bill is designed to address the state’s housing crisis and create more equitable and inclusive neighborhoods. It also provides homeowners with additional options to maintain and build intergenerational wealth.

How does SB 9 differ from previous zoning?

Prior to SB 9, Single Unit Dwelling (R-1) zones only allowed one primary dwelling unit per homesite, with the exception of duplex corner lots and ADUs. SB 9 also includes amendments from previous housing acts that address the concerns of local homeowners and municipalities.

What are the qualifications?

While allowances vary by city and county, any new housing created as a result of this bill must meet a specific list of qualifications that include:

  • Protecting historic districts and preserving the environmental quality of communities
  • Preventing existing rental tenants from being displaced
  • Compliance with local zoning requirements related to height, floor area ratios, lot coverage etc.
  • A property located within an urban area and zoned for single-family use, as designated by the US Census
  • Homeowners who split their property must commit to occupying one of the lots as their primary residence for a minimum of three years

What are the limitations?

  • Properties located within a historic zone, landmark district, flood zone, fire hazard zone, on prime farmland, or within other environmentally protected areas
  • Properties that require the alteration or demolition of any rent-controlled or moderate, low, or very low-income housing
  • Any units occupied by a rental tenant within the past three years
  • Building more than four units on what is currently a single-family lot
  • Small subdivisions and ministerial lot splits on adjacent lots by the same individual to prevent investor speculation
  • Requirements and exclusions can vary by city and neighborhood

To learn the limitations and requirements of your specific area, contact us and we can go over the options for your property.

How you can benefit from SB 9

If you are a homeowner, SB 9 opens up a variety of housing development options to optimize your property’s potential, including:

  • Building a lot split and two-unit development on your current property for multigenerational living or as a rental
  • Subdivide your lot and sell one to pay for a new home on the other lot
  • Subdivide your lot and build one duplex and up to two units on each lot for a maximum total of 4 units across both lots*
  • Subdivide your lot and build a duplex on one to rent and a new single-family home on the other

* Maximum units allowed vary by area

Discover what’s possible for your property under SB 9

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The foregoing description of SB 9 is a summary and is not intended to be complete. Please refer to the full text of SB 9. In addition, the foregoing summary does not constitute legal advice, and we encourage you to consult with your own legal advisor regarding SB 9 and how it may apply to your particular situation.

TJH Home interior

Build More on Your Homesite

If you have been looking for ways to increase the value and potential revenue of your property, we can help you take advantage of the SB 9 housing act. We offer an end-to-end custom homebuilding program and will work with you to find the right fit for your needs. Each of our home plans is equipped with expertly curated design packages, smart-home technology, transparent pricing, and a comprehensive 10-year warranty. Plus, we’ll handle all of the build details and provide a guaranteed completion time frame for a stress-free homebuilding experience from start to finish.

TAKE THE NEXT STEP

Complete the form below to learn the zoning specifics for your property, program details, and which TJH home plans are right for you.

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