California Senate Bill 684 - Unlocking Opportunities for Builders and Property Owners

SB 684 empowers builders and property owners by streamlining the property-splitting processes, unlocking the value of their land, expediting development, and contributes to solving the state’s housing shortage. Let’s explore how this new legislation changes the game for property development and why it’s a win for everyone.

Breaking Down SB 684

Here’s why SB 684 is a game-changer. At its core, SB 684 simplifies the approval process for urban lot splits, cutting through the bureaucratic delays that have long hindered small-scale housing projects. SB 684 focuses on development projects of 10 or fewer residential units on urban lots under 5 acres. Local jurisdictions must now approve lot splits within 60 days of application, removing the discretionary reviews and zoning restrictions that have slowed development in the past.

You may also remember that we’ve been discussing Senate Bill 9 (SB 9), hailed as a victory for California and small zoning projects. A key provision of SB 9 also addresses Lot Splitting for Homeowners, splitting their single-family lots into two separate lots, which can potentially accommodate up to four residential units.

Unlocking Financial Potential

For property owners, the financial benefits of SB 684 are immense. Splitting a lot creates opportunities to build additional housing units, whether single-family homes, duplexes, or ADUs (Accessory Dwelling Units). These new developments can be sold for profit or rented to generate ongoing income, significantly increasing the value of previously underutilized land.

Moreover, property owners can now cater to diverse housing needs. Smaller lots and multi-unit developments appeal to a broader market, from young families to professionals seeking affordable living options. This flexibility makes land ownership more lucrative and aligns with California’s push to provide more housing.

What SB 684 Means for Property Ownership

While SB 684 grants more freedom to property owners, it also establishes guidelines to ensure responsible development. For instance, at least one of the resulting properties must be owner-occupied for three years after the split, fostering community stability. Additionally, each lot must measure at least 1,200 square feet post-split, balancing development potential with livability standards.

These rules encourage long-term investment while ensuring that new housing developments meet community needs and enhance neighborhoods.

Streamlining Costs and Timelines

One of SB 684’s most significant advantages is its ability to cut costs and expedite project timelines.

For example:

• Local governments are now prohibited from imposing excessive fees on lot splits, reducing upfront expenses for property owners and developers. 
• Environmental reviews are also waived for eligible properties, further eliminating costly hurdles.
• Perhaps the most impactful change is the 60-day approval window for lot-split applications. This expedited process means builders and property owners can move quickly from planning to construction, minimizing delays and increasing profitability.

Why do we believe its import for you to know?

G&M is your partner, and we know the challenges that property owners face for subdivision, and we believe SB 684 represents a massive opportunity for clients. The essential value to you is in helping property owners navigate the new rules, optimizing their land for development, and ensuring compliance with the legislation. By streamlining site planning, design, and permitting processes, G&M can make it easier to bring projects to life on time and within budget.

Additionally, the simplified approval process means the focus can be on more creative solutions and less on navigating regulatory red tape. This shift not only benefits you our clients but also enhances the efficiency and quality of housing developments across the state.

Why Now is the Time to Act

SB 684 is a win-win for California. It offers property owners and builders the chance to create new housing, boost their financial prospects, and help alleviate the state’s housing crisis. The streamlined process and reduced costs make this the ideal time to explore property-splitting opportunities.

If you’re a property owner or developer looking to take advantage of SB 684, partnering with G&M will make all the difference. With expert guidance, we can navigate the new regulations, optimize your project, and maximize your property’s potential.

Ready to split your property or explore development opportunities?

Contact Greenwood and Moore today to turn your vision into reality and take the first step toward a more profitable future.

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