Increase in Land Value

California has had a severe shortage of middle-income housing, or small multi-family housing near jobs and transit for decades. The lack of housing is causing a severe rent burden on Californians which leads to their displacement. SB9 legalizes middle-income housing while also helping increase the jobs in the construction sector, which had a 45% decrease in home construction due to COVID-19.

SB9, a bill signed into law by Gov. Gavin Newsom, has essentially put an end to single-family zoning restrictions in most neighbourhoods in California. The bill, which goes into effect on January 1, 2022, will make it easier for Californians to build more than one housing unit on their property. This will allow for small apartment complexes to be built in neighbourhoods that are close to public transit.

 What are the building parameters of SB9?

· Allows the split of a single-family lot into two lots, adding a second home, or placing a duplex on each lot

· A project under this law cannot result in the demolition or alteration of affordable or rent-controlled housing that has been occupied in the past 3 years

· Each new lot must be at least 1,200 square feet

· Units cannot be used for short-term rentals. They must be rented for 30 days or more at a time.

· Property owners must sign an affidavit stating they will occupy one of the units on the property as their primary residence for at least three years after splitting their property or adding extra units

· Historic landmarks and lots within a historic district are off-limits to new development

· Other exemptions include wetlands, farmland, and properties at high risk of fire

SB9 marks a shift from allowing only two large units on a single lot, a house and an accessory dwelling unit along with an attached junior unit no larger than 500 square feet, to allowing up to four housing units on a single lot.

Counties across the state will be required to approve development proposals ensuring they meet size and design standards. SB9 is designed to create the opportunity for additional housing while also preserving low-income, affordable units.

This creates a great opportunity for income while you live in your house. SB9 can allow for additional dwelling units on our land to alleviate the burden of your mortgage.

For more information, please contact Tango Properties at 818-400-1664 or email us at cbabalian@gmail.com.

Sources:

Postrel, Virginia. “California’s Smart Plan to Let Homeowners Be Homebuilders.” Bloomberg.com, Bloomberg, 3 Oct. 2021, https://www.bloomberg.com/opinion/articles/2021-10-03/california-housing-crisis-sb9-lets-homeowners-be-homebuilders. 

Atkins, et al. “SB 9.” California YIMBY, 16 Sept. 2021, https://cayimby.org/sb-9/. 

Atkins. “Bill Text.” Bill Text - SB-9 Housing Development: Approvals., 17 Sept. 2021, https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220SB9. 

Ridgeway, Eliza. “Controversial SB 9 Becomes Law, Modifying Single-Family Zoning.” Los Altos Town Crier, 29 Sept. 2021, https://www.losaltosonline.com/news/controversial-sb-9-becomes-law-modifying-single-family-zoning/article_69fab1f2-1af8-11ec-86ae-cfff98d40bab.html. 

Angst, Maggie. “What California's New SB9 Housing Law Means for Single-Family Zoning in Your Neighborhood.” The Mercury News, The Mercury News, 20 Sept. 2021, https://www.mercurynews.com/2021/09/17/what-californias-new-sb9-law-means-for-single-family-zoning-in-your-neighborhood/.