How California SB9 Can Benefit Homeowners: Everything You Need to Know

California Senate Bill 9 (SB9) has been making waves in the real estate world, with its potential to greatly impact the housing market. Also known as the California H.O.M.E. Act. In this blog post, we’ll take an in-depth look at what SB9 is, how it works, and what the benefits are for homeowners.

What is SB9?

SB9 is a new California law that allows homeowners to build up to two additional dwelling units (ADUs) on their property, regardless of local zoning ordinances. This means that homeowners can potentially double the number of units on their property, creating a significant increase in living space and potential rental income.

How does SB9 work?

Under SB9, homeowners can apply for a permit to build up to two additional units on their property, which can be either attached or detached from the existing home. In order to qualify, the property must be zoned for residential use and have a single-family dwelling on it. Homeowners must also live on the property for at least three years after the units are built.

What are the benefits of SB9 for homeowners?

The benefits of SB9 for homeowners are numerous. First and foremost, it allows homeowners to unlock the full potential of their property by adding additional units. This can be especially beneficial for those who may have outgrown their current living space but don’t want to sell their home and move.

Additionally, the extra units can be used as rental properties, providing a steady source of income for the homeowner. This is especially appealing in areas where rental demand is high, such as in urban areas or near universities.

Another benefit of SB9 is that it can help address California’s ongoing housing crisis. With a shortage of affordable housing throughout the state, the addition of new units can help increase the overall supply and potentially bring down housing costs.

How can homeowners take advantage of SB9?

To take advantage of SB9, homeowners should consult with a qualified real estate agent or contractor who is familiar with the new law. They can provide guidance on the best way to add units to the property, as well as help navigate the permitting process.

It’s important for homeowners to also consider the potential costs associated with adding units. This can include construction costs, permit fees, and ongoing maintenance and management costs for rental properties.

SB9 offers a unique opportunity for California homeowners to unlock the full potential of their property and create additional living space and potential rental income. By consulting with the right professionals and carefully considering the costs and benefits, homeowners can take advantage of this new law and potentially improve their financial situation while also helping to address the state’s housing crisis.

Myths vs. Facts

What this bill does: Senate Bill 9 – the California Housing Opportunity and More Efficiency (HOME) Act streamlines the process for a homeowner to create a duplex or subdivide an existing lot. To be eligible for the streamlining provided by this bill, a parcel must meet a specific list of qualifications that protects historic districts, preserves the environmental quality and the look of communities, and prevents tenants from being displaced. This legislation will enable homeowners to create intergenerational wealth, and provide access to more rental and ownership options for working families who would otherwise be priced out of neighborhoods.

What’s different from last year: We took what was a good bill – which had widespread support in both the Senate and Assembly at the end of last year and on track to pass before it fell victim to the clock – and improved upon it since reintroducing it as SB 9 this year. We listened to concerns from homeowners, municipalities, and other stakeholders, and have incorporated many amendments to make the bill stronger, more clear, and address those concerns.

 Myth: My neighbors are going to be able to build 5 or 6 units next door to my single-family home.

 Fact: SB 9 would allow no more than four units on what is currently a single-family parcel. This bill encourages neighborhood-scale homes – meaning modifications to a property need to be in keeping with the look of the neighborhood.

 Myth: This is going to ruin the look of our neighborhood.

 Fact: In many communities across California – including in San Diego – there are beautiful duplexes and triplexes next door to traditional single-family homes. Look at Linda Vista, Hillcrest, and North Park – these are communities central to the city and job centers that are coveted places to live. In fact, many are beautiful and well-kept, providing not only a bright spot on the street but a comfortable place for not just one but two households to call home.

 Myth: This bill won’t help expand housing options that are more affordable and help real people.

 Fact: The HOME Act builds intergenerational wealth. For homeowners, it provides more options to maintain and build intergenerational wealth – a currency we know is crucial to combatting inequity and creating social mobility. There is no silver bullet to solving the housing crisis that has been decades in the making. SB 9 is one modest tool in the toolbox. This bill allows for more types of housing to create more equitable and inclusive neighborhoods.

 Myth: This is a land grab by institutional investors looking to ruin our neighborhoods.

 Fact: This bill benefits homeowners, and homeowners alone. SB 9 contains an owner occupancy requirement, which requires a homeowner to live in one of the units for three years from the time they get approval for a lot split. Additionally, this bill prohibits the development of small subdivisions and prohibits ministerial lot splits on adjacent parcels by the same individual to prevent investor speculation. In fact, allowing for more neighborhood-scale housing in California’s communities actually curbs the market power of institutional investors. SB 9 also prevents profiteers from evicting or displacing tenants by excluding properties where a tenant has resided in the past three years.

 Myth: This bill will destroy historic neighborhoods.

 Fact: SB 9 excludes historic and landmark districts.

 Myth: This will change local control of land use decisions.

 Fact: Homeowners must comply with local zoning requirements when developing a duplex (height, floor area ratios, lot coverage, etc.) as long as they do not physically preclude a duplex. This bill also allows locals to require a percolation test for any duplex proposed to be on septic tanks.

 Myth: Under SB 9, a lot split requires a single-family home to be demolished.

 Fact: This bill provides options for homeowners and does NOT require any demolition. SB 9 contains strong tenant protections to ensure rental housing is not demolished. A recent study shows that the additional housing options provided by SB 9 actually decreases the likelihood of a single-family home being torn down and replaced by a larger single-family home. Additionally, nearly 97% of all single-family homes would be retained under SB 9. This bill is one way to help solve the state’s housing production crisis. SB 9 provides more pathways to homeownership and expands access to the California dream.

 Myth: This bill does not take into consideration environmental and infrastructure concerns.

 Fact: Under this bill, the parcel must be located in a jurisdiction that is part of an urbanized area or urban cluster, as designated by the US Census. This means that it applies only to areas that meet certain population and density thresholds. It excludes very high fire hazard severity zones, prime agriculture land, hazardous waste sites, earthquake zones, floodplains that do not have adequate mitigation, and others. At the end of the day, if local governments do not allow people to build homes in an area, then the bill does not apply. Additionally, SB 9 does NOT make any changes to existing law, which specifies a local agency’s ability to impose impact fees.

To find out more about SB9 and all the opportunities available to homeowners. Feel free to reach out to the Property Nerds of the Boyenga Team to receive a consultation at your convenience.