California's Senate Bill 9: The Key to Expanding Your Property’s Potential

Senate Bill 9, the Housing Opportunity and More Efficiency (HOME) Act, a California law that took effect on January 1, 2022, is creating new opportunities for homeowners and developers in Los Angeles by allowing the subdivision of single-family lots and the construction of additional housing units. 

While the law aims to address the housing shortage, the process involves zoning regulations, city approvals, and construction challenges that can be difficult to navigate.

1. Eligible Parcels

   • Must be in an urbanized area or urban cluster.

   • Zoned for single-family residential use.

   • Not in designated hazard zones (fire, flood, earthquake fault).

   • Cannot be in historic or environmentally sensitive areas.

2. Lot Splitting Requirements

   • Minimum lot size after splitting: 1,200 square feet

   • Each lot must be roughly equal in size (60/40 split allowed)

   • The owner must sign an affidavit to live in one of the units for at least three years.

   • No previous lot splits under SB 9 are allowed on the same parcel.

3. Development Regulations

   • Up to two primary units per lot (four units total after a split).

   • Cities cannot require new parking if the site is near public transit or a car-share service

   • No demolition of rent-controlled, affordable, or tenant-occupied housing in the past three years

   • Cities can set objective design standards but cannot block projects unless there’s a risk to public health/safety.

1. Zoning and Eligibility Restrictions

   • Not all properties qualify, wetlands, floodplains, historic sites, and high-risk fire or earthquake zones are exempt.

   • Local governments can still impose objective design standards that may limit the scale or feasibility of projects.

2. Infrastructure and Utility Costs

   • Adding more units may require costly upgrades to sewers, water lines, and electrical systems.

   • Utility companies may require significant fees for new connections.

3. Parking and Access Requirements

   • SB 9 waives parking if the site is near public transit, but for others, parking space requirements can limit development potential.

   • Providing separate access for new units may be difficult on smaller or irregular lots.

4. Construction and Financing Challenges

   • Traditional lenders may be hesitant to finance SB 9 projects due to uncertainty in the resale value of newly created lots.

   • Construction costs are high, and builders face labor shortages in Los Angeles.

5. HOA and Neighborhood Opposition

   • Some Homeowners’ Associations (HOAs) may prohibit SB 9 lot splits.

   • Neighbors often oppose new development, leading to pushback and potential legal disputes.

6. Profitability and Market Demand

   • Not all areas will have a high demand for SB 9 Housing

   • The cost of splitting lots, permitting, and construction may not be justified by rental income or resale values in every neighborhood.

The SB 9 law in Los Angeles provides several benefits for land development projects, making it easier for property owners to increase housing density and maximize property value. Here’s how:

1. Increased Development Potential

   • Allows lot splits, turning a single-family property into two separate lots.

   • Enables construction of up to four units per property (two on each lot), significantly increasing housing density.

2. Faster Approval Process

   • Projects that meet SB 9 criteria must be approved ministerially, meaning no public hearings or discretionary reviews that could delay development.

   • Bypassing NIMBY (Not In My Backyard) opposition makes it easier to get projects off the ground.

3. Higher Property Value & Rental Income

   • Landowners can increase property value by adding more units.

   • More rental units mean higher cash flow potential.

4. Promotes Affordable & Entry-Level Housing

   • Unlike other housing laws, SB 9 does not require affordable housing units, allowing flexibility in pricing and tenant selection.

   • Smaller homes, duplexes, and ADUs (Accessory Dwelling Units) can be more affordable than traditional single-family homes.

   • Increases opportunities for first-time buyers and renters.

5. Reduced Parking Requirements

   • If the property is near public transit, no additional parking is required, reducing construction costs.

6. Supports Homeowners & Small-Scale Development

   • Homeowners can build and rent units for extra income.

   • Small developers gain opportunities without needing massive projects.

   • Creates potential for multi-generational housing, allowing families to stay together.

7. Supports California’s Housing Shortage

   • Helps address Los Angeles’ housing crisis by creating more housing options in areas previously limited to single-family homes.

   • Increases supply in high-demand areas, potentially stabilizing housing prices.

Knowing how to move through these requirements efficiently can save time and resources. At JDJ Consulting Group, we specialize in turning SB 9 opportunities into profitable, streamlined development projects. We help property owners maximize their investment while ensuring compliance with Los Angeles regulations.

Our Expertise:

• Strategic Land Use Planning – We analyze your property’s potential and develop a custom strategy to optimize density, layout, and design.

• Faster Permitting & Approvals – Our connections with city officials streamline the process, reducing wait times and eliminating unnecessary roadblocks.

• Smart Pre-Construction Planning – From feasibility studies to cost projections, we ensure your project is built on a solid financial and regulatory foundation.

• Expert Construction Management – We oversee your development from start to finish, ensuring quality, efficiency, and profitability.

Get Started Today!

Don’t let regulatory hurdles or project complexities hold you back. Schedule a consultation with JDJ Consulting Group and take the first step toward unlocking your property’s full potential.

Email us today at [email protected] | [email protected] or call us at (818) 827-6243 | (310) 924-4975. You can also visit our website at  https://jdj-consulting.com to learn more!