Evelyn Baez Nguyen

SB 450 & Its Influence on Housing & Zoning, 2024

2024 has brought a lot of real estate development in California along its way. On such progress is SB 450! This legislative bill is passed in several states of the USA, including California, West Virginia, Oregon, Michigan, and Nevada.

2024 has brought a lot of real estate development in California along its way. On such progress is SB 450! This legislative bill is passed in several states of the USA, including California, West Virginia, Oregon, Michigan, and Nevada. Moreover, it seems to benefit several housing and zoning regulations in these states. But how is it exactly going to help? Is it beneficial for the authorities only? Well, you are about to find that out. This blog covers all the recent updates related to Senate Bill 450.

Expected Benefits of Senate Bill 450

  • End of Single-Unit Zoning
  • Easy Approval Process
  • Increased Housing Density 

SB 450 in California – Its Potential Impact, 2024

You should know that SB 450 was passed to support SB 9 of 2021. Moreover, the earlier passed bill allows homeowners to split their single-family lots into two. As a result, they can build a duplex in each of these units. However, many regions ruled out these rules. Therefore, the authorities felt the need of something more substantial to support convenient housing and zoning. And hence SB 450 was passed in September 19, 2024, in California.
“According to the senate bill 450, homeowners can build up to two units in a single-family residential zone. Their plan doesn’t require any need special approval, review or hearing.” – California Legislative Information
If you have any queries regarding housing and zoning rules, it is always wise to consult a real estate professional. Let’s have a look at how this Senate Bill is impacting the housing scene in California! We’ll talk about how it is impacting developers and investors.

1. Reduced Local Control

The best thing about this bill is going to be the reduced local control. Yes, that’s right! Apart from ending the single-unit-only zoning, SB 450 will also make the approval and development process convenient. How so? Well, by reducing the control through by minimizing the regulations.

2. Regulations for Second Primary Dwelling Units

According to this new bill, local government cannot apply any rules on the second primary dwelling unit that don’t also apply to all other building projects in the same area. However, they have the authority to establish zoning rules that are relatively lenient than the usual ones. Surely, this will promote consistency and flexibility in housing development.

3. Regulations for Urban Lot Splits

After the new laws are imposed, the local government can only set rules for splitting urban lots just as-is. In fact, they have to follow a condition. You should know that they can only establish rules regarding the design and improvement of the land/parcel. For instance, they can devise regulations about the size of the lots or how the land is graded (leveled or shaped).

4. Timeline for Approval

You should also know that the local authority has an approval period of 60 days. It has to review the complete application – for splitting a lot or building a second primary dwelling unit – during this time and make a decision. Moreover, it is up to the officials to deny or approve the application. However, if they fail to make a decision within this time, the application will be considered approved.

Important!

The authorities must provide a detailed review of why they have denied the application for an urban lot split or a second primary dwelling unit.

5. Condition for Denying an Application

Another reason for people awaiting the implementation of SB 450 is that it puts a condition on application denial. Yes, that’s true! The local authorities cannot reject applications on the basis of physical environmental concerns. These include the nature or the land of the urban lot or dwelling unit in question. Moreover, they can only deny an application if there are real risks to public health and safety.

When Will SB 450 be Implemented?

Senate Bill 450 will enter the implementation phase on January 1st, 2025. After this, local agencies will no longer be able to apply their own rules to the above-mentioned projects. They can only enforce a specific regulation if allowed by the law. With the conditions mentioned above, it is clear the authorities will not be able to create unnecessary hurdles anymore. So, this is surely going to be a positive step in the housing and zoning industries. Moreover, this will also benefit homeowners and investors – big time.

Benefits of SB 450 for Housing & Zoning

As aforementioned, the main purpose of passing this bill was to support SB 9. When the authorities decided to surpass the already existing regulations for zoning and housing, SB 450 was passed. Here are the benefits, we are expecting it to offer. Moreover, if you ever need help understanding the regulations regarding housing and development, feel free to contact Evelyn Baez. She has the market expertise and diverse knowledge to provide you with balanced advice. Anyway, back to the benefits now.

  • End of Single-Unit Zoning
  • With SB 450 in action, we expect the elimination of restrictions that limit development to just single-family homes. As a result, the construction of multi-family housing will be way easier than it used to be. In fact, it will allow you to construct multi-family units even in the areas designated for single-family use. In other words, you’ll be free to use your space as it suits you.

  • Easy Approval Process
  • This bill aims to simplify and speed up the approval process for housing developments. If you have come reading this far, you don’t have to follow an unnecessary set of rules just to get your application approved. Instead, there will just be a few important regulations set by the law. Resultingly, your application will be completed and approved without any extensive wait.

  • Increased Housing Density
  • The main benefit of SB 450 is that it encourages the construction of more housing units in urban areas. This will resolve the long-standing issues of housing shortages. After all, it will make housing accessible for everyone in California and other relevant regions. Also, more housing units mean increased affordability.

    Ending Thoughts on Senate Bill 450

    The public and real estate professionals are expecting a lot of good things from the newly passed Bill 450. This is so because it has simplified the regulations surrounding housing and zoning in California and other cities of the States. Also, the whole process of application approval will become a whole lot easier. What’s more, the authorities can’t approve the application for trivial reasons. So, splitting urban lots or developing secondary dwelling units will become more convenient.

    About the Author

    Evelyn Baez Nguyen is a multi-family specialist at Lyon Stahl Investment Real Estate in El Segundo California.

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