Evelyn Baez Nguyen

SB 9 Los Angeles – Its Provisions, Benefits & Limitations

SB 9 Los Angeles or HOME (Housing Opportunity and More Efficiency) Act is a law that focuses on increasing the housing supply across the state.

SB 9 Los Angeles or HOME (Housing Opportunity and More Efficiency) Act is a law that focuses on increasing the housing supply across the state. Moreover, this senate bill aims to promote a lot of positive changes in the housing scene of California. After all, the regulations make it easier to build more housing units on a single-family lot. But this is not all! The law also has to face several hurdles along the way to its implementation. Want to know more about it? If so, you have to keep reading the blog…

SB 9 Los Angeles, and Everything You Need to Know About It!

SB 9 allows homeowners to split their single-family unit and build four separate housing units on it. has great importance in the progress of housing development in Los Angeles, California. You should know that this bill is the result of years of government efforts to address the housing crisis in the state. Moreover, it brings so many progressive opportunities for homeowners, investors, and tenants. After all, it put off many restrictions from investing and developing housing units.

Did You Know?

The Senate Bill 9 or Home Act was passed by Governor Newsom on September 16, 2021, and it took effect on January 1, 2022. 

You can always consult a professional like Evely Baez for advice on SB 9 housing projects. Anyways, let’s talk about the provisions of SB 9 Los Angeles, and how it is influencing the housing and zoning scene in California. We’ll also talk about the limitations it faced and how the authorities held up with them.

Key Provisions of Senate Bill 9

Here is what Senate Bill 9 says about the housing and zoning regulations in Los Angeles, California. The bill came up with some major updates in the overall processes, including:

1. Additional housing units

This Senate housing bill allows homeowners to subdivide their single-family properties into fourplexes. As a result, they’ll have space to construct separate housing units over two split lots. However, keep in mind that you have to meet certain SB9 lot split requirements for this sort of execution.

2. Compliance with the Zoning Codes

The SB 9, Log Angeles requires all projects to comply with the existing Floor Area Ratio (FAR) guidelines from the zoning code. According to this, the maximum allowable building size should be relative to the lot size. You should know that the collective square footage of all the structures – existing and newly developed – should not exceed the FAR limit.

3. Eviction of Tenants

You should know that California Senate Bill 9 also protects the existing tenants from eviction or displacement because of the split. For this, the bill imposes several limitations for landlords or profiteers to take over the relevant properties. In simpler words, if the tenant has lived in the property for the last three years, you cannot target them for eviction. Moreover, sb 9, California, provides security to tenants and prevents sudden housing loss because of profit-driven motives.

Important!

Senate Bill 9 does not apply to any property having a history of eviction in the past 15 years.

The Positive Impact of SB 9 Los Angeles

Senate Bill 9 was passed with a focus on making a positive impact on the housing and zoning scene of LA. But did it manage to do so? Here are some of the ways in which the bill impacted homeowners, tenants, and investors:

1. More Housing Options

The major goal behind SB 9 was to increase the housing opportunities in Los Angeles and the regions where its implementation took place. You should know that California has been in a housing crisis for quite a long time. However, following the bill smartly has helped with this big time. After all, it lets homeowners replace their single-family unit with a four-unit housing property. This way they can either accommodate:

  • Their extended family
  • Tenants for rental income

“The main goal of SB 9 is to promote housing with equity, inclusivity, and affordability.” – The California H.O.M.E. Act

2. Improved Property Value

Another major benefit of Senate Bill 9 is that it can maximize the value of your land. Yes, it’s right! Because the bill allows for developing more units, it helps you increase long-term profitability too. In fact, you can also use it to generate more wealth and create a legacy.

3. Source of Rental Income

Sb 9 Los Angeles doesn’t just solve the long-standing housing shortage issue. In fact, it also has some financial benefits for the homeowners. How so? Well, it allows you to develop fourplexes on a single housing unit. And you rent these out to earn some extra income. This will solve the housing problem of tenants and will benefit you financially.

Challenges and Limitations of SB 9

Undoubtedly, Senate Bill 9 came with a lot of benefits for homeowners, developers, and tenants. However, it also faced challenges and limitations throughout the way. As a result, this made the implementation of the bill difficult. To resolve these issues, another bill, SB 450, was passed too. Anyway, here are the challenges of SB 9 Los Angeles:

Financial Costs

It’s a great thing that you can now build more units instead of settling for a single-family unit. But is it really? Well, you should know that there can be several financial challenges along the way. These may include:

  • Fluctuating property value
  • High construction costs
  • Limited financing opportunities

Considering these, many homeowners may hesitate to follow the law. After all, there can be more financial risk than benefit.

Zoning Regulations

This is one of the major challenges of SB 9. After all, the local governments might have to adjust their regulations in compliance with the law. As a result, it could create confusion or delay in the approval of additional units. Also, this could lead to inconsistent construction patterns and cause disruption in the already-made zoning plans. Also, authorities raised concerns about overdevelopment and negative impact on the neighborhood.

Construction Challenges

Another hurdle in the way of SB, Los Angeles implementation of the development. It may seem easy in the documents and blueprints. However, the execution can be way too complex. This is so because it can include complex modifications in the existing structures. Also, you may have to pay additional costs and experience delays too.

Does My Property Qualify for SB 9?

Your property/housing unit has to tick off a certain set of requirements to qualify for the SB 9, California. Not being compliant with even any one of these will result in disqualification. These include:

  • The property must be in an urban area or cluster (US Census Bureau)
  • The property must be used for single-family housing
  • The area of property should be at least 2,400 sq ft
  • No evictions in the last 15 years
  • Should not be located in a historic district
  • Should not be in an environmentally protected zone
  • The split shouldn’t disrupt existing affordable housing

Conclusion

Senate Bill 9 is one of the most efficient solutions to the California housing crisis. After all, it allows for the construction of four separate units to replace a single-family property. This means there can be more affordable housing opportunities in the state. Obviously, navigating laws like these alone can be overwhelming. Therefore, you should always have professional guidance by your side. You can always contact Evelyn for all sorts of real estate and housing decisions.

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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