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Single Family Zoning and California's New Law, SB-9

By
Real Estate Agent with eXp Realty of California, Inc. (lic. #01878277) DRE# 00949880

SB-9 was recently passed in CA.  The Press Enterprise says, "It allows property owners to split a single-family lot into two lots and place up to two units on each, creating the potential for up to four housing units on certain properties that are currently limited to single-family houses"  (More details).

Duplex

California does have a shortage of homes, but is this good solution?  I see it two ways.  One, if you are a homeowner with a sizable lot, this could be a chance for you to split the lot and add up to four units to it.  Rent three units out and live in the fourth unit.  There is a restriction for the property owner to live in one of the units for three years.  In three years, you could have four rentals.  It could lead to a real increase in your property value, as well as, an opportunity for high current income.

I also see this from the vantage point of a homeowner.  If I purchase a single family unit and one of my neighbors (or more than one) subdivides their property and adds four units, I think I am unhappy.  Worse, if it affects the value of my home in a negative way, then I have very little recourse.  It seems, to me, that politicians are stepping on the rights of one type of property owner to solve our state's lack of housing problem. 

In Ryan Lunquist's blog, Goodbye Single Family Zoning, he says, "In closing, this change in zoning is certainly unconventional and even scary to many, but the impact is still to be determined.  My advice?  Let's be objective about the issues, listen, embrace the facts, and avoid sensationalism."  

Estimates are that this will affect about 5.4% of existing single family home lots across California.  It seems like an arbitrary number to me.  What are your thoughts?  Is it an opportunity for current homeowners?  Or will it affect neighborhoods in a negative way?  Is this a property owner right's issue that will end up in court?  Will it make a difference?  If there are unforeseen or unintended consequences, will there be any recourse for the affected property owners?

 

 

 

Posted by

             eXp Realty of California, Inc

Raymond Henson, SRES, GRI, e-Pro

Past Client Testimonials   

3412 Babson Drive

Elk Grove, CA 95758

RayRHenson@gmail.com

916-698-8415

 

 

Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

As always, Roy Kelley.  Thank you for your input!

 

Hi Dorte Engel.  It does seem like a little more of a thought process would help or maybe they could have tried it first in areas that housing is needed the most.  An experiment on a smaller scale.

Oct 03, 2021 09:30 PM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Hi Wanda Kubat-Nerdin - Wanda Can!  I really did not see much on the infrastructure questions.  The parking alone could cause many problems.

 

Well said, Debe Maxwell, CRS.  Sadly, it is my state for only about 9 or 10 months more.  We feel like there is a target on our backs.

Oct 03, 2021 09:34 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Raymond Henson, eXp Realty just posted it hope you will be willing still to put it on your thread, Endre

Oct 03, 2021 10:35 PM
Rob Spinosa
US Bank - Larkspur, CA
Mortgage Loan Originator, Marin County

Very interesting to read a number of "Big Brother" comments above and not read anything about CA's attempt to address one of its more pressing problems --- homelessness.  There seems to be a concerted effort by some in this country to paint CA as the poster child for homelessness, a testament to its policies.  In reality, CA is "home" to 28% of the nation's homeless and about 50% of the nation's unsheltered homeless so there is indeed some truth to the scope of our problem. 

Yet while this measure is not specifically a homelessness initiative, the fact is that lack of affordable housing is the #1 cause of homelessness; not drugs, not race, not mental illness, etc. It's lack of affordable housing.  Many areas of CA suffer a huge supply/demand imbalance and this measure, if imperfect, just may help address that.  Will it be enough? Will it be effective? We don't know yet.  We do know government is the only entity big enough and powerful enough to attempt to affect a positive change. And yes, if it fails because we don't work with it instead of against it, then government and we, the taxpayers, will be the ones to deal with the consequences. This measure attempts to be part of the solution instead of part of the problem. For that alone, it deserves a chance.  Like Prop 13, all policy measures related to housing have sociological implications --- both good and bad.  This will be no different.

Oct 04, 2021 08:07 AM
Lynn B. Friedman CRS Atlanta, GA 404-617-6375

Rob Spinosa 
I can always count on your for a clear analysis. Thanks

Oct 07, 2021 06:41 PM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

For another thoughtful perspective regarding SB9 and SB10, make sure to read this post from Endre Barath, Jr. 

What's at Stake? With the passage of Senate Bills 9 and 10, the Landscape of the Single Family Neighborhood in California Will be Forever Changed.

Thank you, Endre, for adding to the discussion.  I share your concerns.

Oct 04, 2021 08:44 AM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

I appreciate your input, Rob Spinosa.  We do need to do something.  I spent a lot of time driving through Elk Grove and Sacramento just yesterday.  There are camps everywhere and their impacts on those neighborhoods are very bad.  I can't imagine how the businesses and homes with these large camps get by.  We will start to get some idea what government can do.  Sacramento just set aside a huge amount of money for housing the homeless.  We will see.

Oct 04, 2021 08:51 AM
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

I am working on it already. Plan to turn a fix upper into a 4X. Zoned for duplex in 1900. Looks horrible. Basement, front, 2 added on...  6 blocks from Google Village.

Oct 04, 2021 02:38 PM
Jim Paulson
Progressive Realty (Boise Idaho) www.Progressive-Realty.info - Boise, ID
Owner,Broker

Here in Boise, Idaho; they are doing away with many of our zoning subcatagies so you can build a duplex or a fourplex adjacent to a single family home.  It will be interesting to see how these changes play out in the long run.

Oct 04, 2021 11:39 PM
Kimo Jarrett
Cyber Properties - Huntington Beach, CA
Pro Lifestyle Solutions

Property owners will still have to adhere to the building codes and other codes from planning departments like landscape, setbacks, and parking, so, not all properties will be able to accommodate this opportunity, or am I mistaken? 

Oct 05, 2021 12:20 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Raymond Henson, eXp Realty ,

Loved reading your post and all the comments. I am also going to read Endre Barath, Jr. 's take on the subject. I for one am against this kind of legislation and feel there is little or no debates ..it's just passed! There will be un-intended consequences....as you said many who should know what is being passed have no clue it was on the table for discussion!

Oct 05, 2021 04:47 AM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Sam Shueh, best of luck with the project.  It would be interesting to see before and after pictures.

 

It will be interesting, Jim Paulson.  It is looking like this is becoming a trend in different states.

Oct 05, 2021 06:57 AM
Jim Paulson

I was visiting Bob "RealMan" Timm in Minot North Dakota yesterday and he showed me a community with a varied mix of homes.  I should have taken photos (maybe on the way back to the airport Saturday) to get feedback.  I didn't care for it since I feel for the people that built absolutely beautiful homes only to have an inexpensive duplex built next door and apartments at the gateway entrance to the community.

Oct 06, 2021 09:18 AM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Good morning, Kimo Jarrett.  It is tricky to read the actual text of the law, but it sounds like only objective standards can be applied, then the text says,

"A local agency shall not impose objective zoning standards, objective subdivision standards, and objective design review standards that would have the effect of physically precluding the construction of two units on either of the resulting parcels or that would result in a unit size of less than 800 square feet."

Also, regarding setbacks,

"a local agency may require a setback of up to four feet from the side and rear lot lines."

You are right, not all lots can accommodate this law or SB10.  It is predicted to be about 5.4% of the lots in CA.  Still, I would not be happy if I owned a neighboring lot next to that 5.4%.  I imagine there will be quite a few within that 5.4% very happy to make a profit.  There will be winners and losers.

I was with a few real estate friends this weekend; an ex-city planner, investors, a loan workout specialist, etc.  Surprisingly, they had not even heard about SB9 or 10, but their common consensus is the same as yours, namely, that existing standards will make it difficult for investors/homeowners to capitalize on the new laws. 

 

Oct 05, 2021 07:22 AM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Hi Dorie Dillard Austin TX.  As I have mentioned above in the comments, even those that should know that this law has passed do not know about it.  It seems remarkable to me that so few know about it and have had a chance to discuss it.  Heck, I knew little about it until my friend, Ryan Lundquist wrote about it in his Sacramento Appraisal Blog.   He gave me the idea for the blog.  I too have enjoyed reading all of the comments, including yours.  I am worried about the un-intended consequences and the neighbors that will be affected by the new law with little protection or recourse.  Thank you for your input.

Oct 05, 2021 07:31 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

With the limited supply of affordable houses, if any, this is one way to increase opportunities for more housing.  I'll be following this topic to see how it goes.  Some may have to make sacrifices, hopefully not too catastrophic!

Oct 05, 2021 08:55 AM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Hi Jan Green. The idealist in me has questions like, who gets to impose on those that will sacrifice?  How much of a sacrifice should they make? And should they have some compensation for their sacrifice.

The realist in my says the law is in place, how do I and, more importantly, my friends and clients profit from this new law?  My friend that runs an Airbnb comes to mind.  He has a large lot and he needs to meet someone like, John DL Arendsen for some creative ideas.  It is a quaint, well established neighborhood, just perfect for this opportunity.

Zoom, John Arendsen and Accessory Dwelling Units

Oct 05, 2021 10:56 AM
John DL Arendsen
CREST "BACKYARD' HOMES, ON THE LEVEL General & Manufactured Home Contractor, TAG Real Estate Sales & Investments - Leucadia, CA
Crest Backyard Homes "ADU" dealer & RE Developer

I see this from both the NIMBY and the YIMBY perspective. Being a property owner who enjoys the quality of life my family and I have expereienced for the past 40 years on a nice large parcel in a very comfortable home with neighbors spread out on 1 acre minimum sized parcels all around me I would definitely hate to see my neighbors start splitting and developing their  property/s this way. And I certainly think, rather know, it would negitively impact our overall property values, traffice and semi rural lifestyle. 

That said as a company that specializes in this particular niche I see it as a boon to consturction and development overall. And a way to offer housing to folks who really need it. We all deserve the right to live within proximity to where we work. 

Now whether that transelates to affordable is another thing. When we build a 1bdm, 1bth 430sf  ADU close to the coast for a rental property and it rents for $3000/mth is that affordable? I guess relatively speaking when homes are selling in the millions it is. However, is it affordable for the mailmah, waitress, school teacher or gardner who services your needs? I don't think so. 

So will lot splitting really provide more affordable housing or just additional housing, density, traffic and parking issues in the neighborhoods. But most importantly and something that I'm not seeing anyone addressing is the infrastructure. Namely, sewer, water, gas and elec services. Most of our infrastructures are already underserving our needs. This type of runaway development will only exacerbate that problem. And it will be a huge problem.

But wait for the next shoe to drop. SB10. Allowing up to a 10 unit apartment/townhome/condo complex on those same lots/parcels. That's now going through the State govenment and will no doubt be passed. When that happens you can expect some real aggrissive pushback. 

That's my 3 $CENTS$ adjusted for inflation. 😊

Oct 05, 2021 12:07 PM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

I would pay a lot more than 3 cents for your thoughts.  Thank you for your input, John DL Arendsen.  I really appreciate that your took the time for a thorough response, especially since you already are in the business of adding units to existing lots.  

I think SB10 was already signed by the governor and will take effect in Jan. 2022.

Oct 05, 2021 12:17 PM
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

Increasing density is an inevitable step as long as populations increase, otherwise there will be no more open space left. 

Oct 06, 2021 11:34 AM
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

Thanks for posting this.  Interesting-only 5% of residential lots expected to be affected? There is no easy solution for the homelessness or lack of affordable housing. If a homeowner makes new units available for rent on his property--do you think he will set rent prices so they are "affordable"? That's a subjective term--affordable for a homeless person with no income or affordable for a family with basic service jobs?   I have personally helped a few families who moved from CAL to the Kansas City area who just cannot afford  housing for their families with both parents working and other living expenses.  Even as we see wages rise, inflation is creeping up as well. The middle class is disappearing.

Oct 13, 2021 09:02 AM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

I have lived here my whole life, Mary Hutchison, SRES, ABR.  I have seen this problem get worse and worse over that time period.  This bill will do very little to address the issue and, you are correct, affordable is subjective.  Those living on the streets will not all of a sudden be able to move into these homes.  They face other, much more difficult situations.  Thank you very much for your thoughts.

Oct 13, 2021 03:12 PM