Are you taking advantage of SB 9 and the great opportunity for Californian’s?

California has one of the lowest homeownership rates in the country, with the Midwest holding the highest at 69% and the lowest rates in the West at 60% 2 . To alleviate this housing crisis, Governor Gavin Newsome passed a package of bills called “Building Opportunities for All,’ Senate Bill 9, which expects to create new development opportunities for homeowners. The Turner Center, Berkley 2021 analysis estimated that over 700,000 new homes would be newly feasible, via the building opportunities using SB 9 [4]. 

The goal of SB9 in 2021, was to develop new approaches for homeownership, seeking to also look at new strategies to lower mortgage payments, add more living space, increase home value, and earn additional income. Then in 2023, many amendments were incorporated to make the bill stronger, clearer, and address concerns brought by communities.

Over the next months, we’ll be looking more closely at SB 9 and the great opportunities for Californians. You may not have given much thought to the option of subdividing your property, but as you’ll soon learn with SB 9, this is a great way for property owners to consider a strategy that was not possible or easily available to Californians in the past. 

So, let’s start this new series with an overview of the basic tenants of the bill, what you might have heard, and address SB 9 and what it can really mean for you and your neighborhood [1].

I’ve heard: Anyone and any lot can qualify for SB9. What are the qualifications that make my property eligible and split apart possible?

Reality: My property may be eligible [3] if it is:

• Property is within an urban area or cluster.
• Home is zoned single-family residential.
• The initial home is 2,400 sq. ft. or larger.
• There have been NO evictions on the property in the last 15 years.
• The property is Not in a historic zone, flood zone, fire hazard zone, earthquake zone, hazardous waste site, prime farmland, or within other environmentally protected areas like conservation zones and endangered species habitats.
• No SB 9 action has been taken and No split has been done previously.

I’ve heard: This could easily take over my neighborhood, since any building, even a multi-unit building can be built next to my single-family home? 

Reality: the important thing to keep in mind is that SB 9 allows for no more than 4-units on what is a single-family lot. The idea being to encourage communities to scale homes, on larger lots, yet with the idea that any changes to a property must to be in keeping with the local appearance of the neighborhood [1].

I’ve heard: Are all properties an option; can any property be sub divided no matter the lot size?

Reality:  Under SB 9 you are allowed to have up to 2 dwellings per lot [3] . So, if you split a single-family lot, that property can now become four dwellings [1]. However, keep in mind your minimum lot size after splitting the parcel is at least 1200 sq ft in size. The minimum requirement for the smallest parcel is 40% of the entire lot. As you may expect, you can split the lot in many ways, 60/40, 50/50, or 45/55 split for example.

I’ve heard: Do I have to demolish my home for the lot split?

Reality: NO demolition is required by the homeowner. The goal of the bill is to answer California’s housing problems, add more living space, increase home values, earn additional income, and expand access to homeownership in California. In fact, 97% [1] of single-family homes are expected to be preserved during this process.

So much to think about with SB9, and a lot to consider, but what we think is important here is the incredible opportunity this bill creates for land use, and an incredible opportunity to create future wealth for California’s property owners. We’ve just scratched the surface of what you should know, what to consider and does your property qualify?

Greenwood & Moore, Inc. (G&M) Is Your Partner

Finally, bear in mind, Greenwood & Moore is your partner, with SB 9, and the many other decisions you are considering regarding your property’s needs. Interested in learning more about your property and is this a good opportunity for you?

No matter the scope, size, or type of project we are here to support your engineering goals. We’ll look forward to hearing from you soon.



[1]  https://focus.senate.ca.gov/sb9

[2]  SB9 Requirements

[3[  What is SB9?

[4]  Terner Center Report, 2021

Since 1994, G&M’s goal is to “Make our Clients' Vision a Reality."