Our June 2022 analysis of a sample of ordinances from around the state found that some local regulations-such as low maximum unit size, height limitations, and other design rules-may render the construction of SB 9 homes infeasible. We also found that local governments have created restrictions that limit the potential of SB 9. Homeowners face multiple barriers to using SB 9 to split their lot and create new homes, including high construction costs and/or lack of expertise with homebuilding. However, we noted that it would be unlikely that anywhere near this number of homes would actually be built. A 2021 analysis by the Terner Center estimated that over 700,000 new homes would be newly feasible to build if SB 9 passed and taking into account on-the-ground market dynamics. Crucially, the law allows the owner to “split” their lot, which makes it easier to sell or finance additional homes on a single parcel. SB 9 allows homeowners to create up to four homes on an existing parcel, in effect, eliminating single-family-only zoning. In this commentary, we take a first look at SB 9’s preliminary outcomes by assessing new housing development enabled by the law in a handful of jurisdictions statewide, exploring how many applications were submitted, and talking to local planners about why the numbers are so low. Some of the state’s largest cities reported that they have received just a handful of applications for either lot splits or new units, while other cities reported none. One year in, we find that the impact of SB 9 has been limited so far. Others feared that the law might lead to speculation and unchecked growth at the expense of community character and vulnerable residents.
Upon the law’s passage, some hailed it as a major victory for zoning reform that would open up new avenues for small-scale homebuilding in previously exclusionary places. The California HOME Act-otherwise known as Senate Bill (SB) 9-took effect on January 1st, 2022 and makes it possible for homeowners to split their home’s lot and build up to four homes on a single-family parcel.
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