How SB-9 will change the landscape of residential neighborhoods

It's no secret that building additional housing is a huge priority for the state of California. Recent senate bills SB-9 and SB-684 streamline the process of adding additional units within existing single family neighborhoods. It's a dramatic change to a procedure that for years has been close to impossible to navigate successfully. 

For those living in residential neighborhoods; prepare to see more backyard construction and lot splits in your area. This also means that YOU can build more easily if it's something you have been thinking of. Opportunities to add ADUs or other additional units to your property just burst wide open. 

Cities like San Francisco and Oakland are notoriously difficult to build in, even for professional developers and certainly for homeowners. Say you wanted to build an ADU. Even if you followed the letter of the law as far as zoning and building codes, the neighborhood notification process has been almost impossible to get through. Add to that the fact that planning departments have historically held a lot of discretionary power, making the viability of projects very uncertain.

Now, California cities are being heavily incentivized to start issuing building permits for new housing units ASAP. (in fact, the state requires it)

Senate Bill 9 (CA SB 9) facilitates the creation of up to four housing units in the lot area typically used for one single-family home. Importantly, it requires ministerial instead of discretionary approval. Meaning that objective standards will be applied. In other words, if you follow the rules, the planning department cannot deny the project. Also, there is no 311 neighborhood notification required; a huge shift in how new builds are managed. 

SB 9 applies to single-family home neighborhoods. Think parts of the Sunset and Richmond, Ingleside, etc. in SF, or Rockridge and Temescal in Oakland.

The rules do NOT make it easier to add additional square footage to single family homes. (sorry) They DO make it easier to add ADUs, or even do a lot split and build condos. 

For lots larger than 2400 square feet, the law allows the existing lot to be split into two separate ones, each with up to 2 units. Without doing a split, a single family home lot is now permitted to have up to 3 units instead of 1. That could look like the creation of a duplex by adding a unit on top of or below the existing house, or construction of a new building on the lot with 1 or 2 units. 

Local setback rules, height limits, and other restrictions may apply. However, under the new guidelines those rules cannot be so restrictive that it prevents a unit of at least 800 sq ft from being built. 

Senate Bill 684 - provides for a similar procedure for lots that are already zoned as multi-family. Allowable density has increased, and approvals will be streamlined considerably. 

For sellers: If you are preparing to sell a fixer-upper, vacant lot, or small home on large lot, you *must* hire a knowledgeable agent to promote and sell it. Illustrating the property's full potential to buyers will be a critical part of the marketing process. 

For buyers: The potential that certain properties possess has changed *radically* under these new laws. Can't afford your dream house now? Want to house hack and unlock future upside potential? We can help you map out the possibilities!