What is SB 9?
How to Use Senate Bill 9 (SB 9) to Build More Homes in California
California's housing crisis has prompted significant legislative action, one of the most impactful being Senate Bill 9 (SB 9). Effective from January 1, 2022, SB 9 allows homeowners to add more housing units in single-family zones, making it easier to build and expand housing options. This blog will guide you through the essentials of SB 9, how to leverage it, and answer some frequently asked questions.
What is SB 9?
SB 9, the California Housing Opportunity and More Efficiency (HOME) Act, is a law that enables homeowners to develop up to four housing units on lots previously zoned for single-family residences. This law is part of California's strategy to increase housing supply and affordability.
Why Use SB 9?
Earn Money: You can sell part of your lot to builders or future homeowners, potentially earning hundreds of thousands of dollars.
Address the Housing Crisis: By creating more housing units, you can help make homeownership more affordable, especially for friends or family who struggle with high housing costs.
Key Provisions of SB 9
Lot Splits
- Homeowners can split a single-family lot into two separate lots.
- Each new lot must be at least 1,200 square feet, and the split must be roughly equal (no more than a 60/40 split).
- You can build two residential units on each new lot, allowing for a total of four units.
Duplexes
- On single-family zoned lots, homeowners can build a second home.
- If you split the lot, you can then build two homes on each lot.
Eligibility Checklist
To utilize SB 9, your property must meet the following criteria:
- Zoning: Property must be zoned for single-family residences.
- Location: Must be in an urbanized area or urban cluster.
- Restrictions: Not on prime farmland, wetlands, conservation land, or habitat for protected species.
- Safety: Not on hazardous waste sites, earthquake fault zones, 100-year floodplains, or floodways.
- Historical Significance: Not a historic landmark or in a historic district.
- Recent Evictions: No Ellis Act evictions in the past 15 years.
- Owner Occupancy: If splitting the lot, you must plan to live in one of the homes for at least three years (except for community land trusts).
Special Conditions
- Fire Zones: SB 9 cannot be used in very high fire hazard severity zones unless state mitigation requirements are met.
- Rental Housing: Cannot demolish or alter housing that has had a tenant in the last 3 years. Only 25% of the exterior walls can be removed.
- ADUs: Existing Accessory Dwelling Units (ADUs) count toward the maximum number of homes per lot.
- Septic Systems: A percolation test may be required if not connected to a sewer system.
- One Lot Split Only: Lots created by a SB 9 split cannot be further divided. Adjacent lots cannot be split using SB 9.
- No Short-term Rentals: Homes built under SB 9 can only be rented long-term (minimum 31 days).
Steps to Utilize SB 9
1. Submit Plans to the City: Local regulations may require an architect. The city must approve SB 9 projects at the staff level without a public hearing.
2. Sell and/or Build: You can split the lot and sell the new lot without building on it.
Regular Dwelling Units (Houses and Duplexes)
- Size and Height: Limited by existing zoning but must allow exemptions for two 800 sq ft units.
- Yard Requirements: Side and rear yards may be reduced to 4 feet.
- Parking: No parking required if within 1/2 mile of major transit or within a block of carshare. Otherwise, up to 1 parking space per unit.
- HOA Restrictions: HOAs can ban additional dwelling units.
- Sale: Each home can be sold separately.
Accessory Dwelling Units (ADUs) & Junior ADUs (JADUs)
- ADUs:
- Exempt from impact fees if under 750 sq ft; exempt from school fees if under 500 sq ft.
- Can be built despite HOA rules.
- Can be attached or detached.
- Maximum size: 1,200 sq ft for detached, 800 sq ft or 50% of house area for attached.
- No parking required if near transit or in certain districts.
- JADUs:
- Max size: 500 sq ft.
- Must be part of the main house.
- Can share a bathroom with the main house.
- Efficiency kitchen allowed.
- Owner-occupancy may be required.
Frequently Asked Questions
Can I rent out a home built using SB 9?
Yes, but only for long-term rentals (minimum 31 days).
Can I sell a home built using SB 9?
Yes, each home can be sold separately.
Can I sell an Accessory Dwelling Unit (ADU) built using SB 9?
This requires further clarification from the bill authors.
My property is zoned for 2 units. Can I use SB 9?
No, but you can use local zoning to build 2 homes and state ADU laws (AB 68) to build up to 2 ADUs for a total of 4 homes.
Can I use SB 9 in a Homeowners Association (HOA)?
It depends on HOA rules. SB 9 overrides local zoning, but HOA rules still apply.
Can I use SB 9 to split off a front or side yard?
Yes.
If my lot is not near transit or carshare, can I rent out my driveway to a carshare company to meet the requirement?
Yes.
My neighborhood uses point-to-point carshare without fixed locations. Does that count?
Further clarification is needed.
Can I list my car on a peer-to-peer carshare site to meet the requirement?
Further clarification is needed.
If I do a SB 9 lot split, does the property get automatically re-assessed for property tax purposes?
No, reassessment occurs with new ownership or new construction. You may request a downward reassessment if the value decreases.
Can I use SB 9 to split a lot and sell the backyard?
Yes, consult a Realtor and possibly an architect.
I want to buy a vacant lot and build a custom home. Can I use SB 9?
Yes, but if splitting the lot, you must live in one of the homes for at least three years.
Can a landlord use SB 9?
Yes, as long as the property is single-family zoned and meets all other criteria. They must also plan to live on the property for three years if splitting the lot.
Can a developer use SB 9?
Developers can build two homes on a single lot but cannot split the lot unless planning to live on the property.
What parts of local zoning does SB 9 override?
Density, minimum lot size, parking, and certain yard requirements, as long as they allow two 800 sq ft units.
Can a non-conforming lot or building use SB 9?
Yes, and replacement buildings can maintain non-conforming setbacks.
How does SB 9 work with large lots?
Large lots can first be divided using existing subdivision laws and then split again using SB 9, but this must be done by different owners.
Are there restrictions on the shape of lots in a lot split?
Cities may require that both lots have street access. Odd-shaped lots are allowed as long as the smaller lot has at least 40% of the original lot.
Can mobile or manufactured homes be used for SB 9 buildings?
Yes, if they comply with all applicable regulations.
Should I use an ADU or an SB 9 Regular Dwelling Unit?
This depends on your project goals and jurisdiction rules. ADUs are often easier and more flexible, but regular dwelling units might be better for larger or more independent living spaces.
Can you sell your ADU separately?
Generally, ADUs cannot be sold separately unless local laws specifically allow it, which often requires significant modifications.
Further Reading
For more details, refer to the [California HCD ADU Handbook](https://www.hcd.ca.gov/policy-research/docs/adu_december_2020_handbook.pdf).
