Gov. Newsom Approves Senate Bill 9: Mo' Housing, Mo' Problems?

California has a problem: not enough affordable housing. No problem. Governor Newsom approves Senate Bill 9 (SB 9).

What exactly is SB 9?

SB 9 was introduced in 2020 by Senator Toni Atkins. SB 9 requires local governments to approve a housing development containing two residential units in single-family residential zones. Additionally, SB 9 would require local governments to approve urban lot splitting and creating duplexes in single-family residential zones. SB 9 permits four units on a single-family zoned lot and eliminates onsite parking requirements.

Key elements:

• Allows up to four (4) units on previously zoned single-family homes.

• Requires the City to approve either or both: A housing development of no more than two units (duplex) in a single-family zone; Or, allows for a lot split to take place (a single-family lot becoming two lots).

• Split lots could be sold separately, but the owner would need to have one of the housing units as their principal residence for 3 years.

• Prohibits the City from requiring more than one parking space per unit.

What does SB 9 hope to address?

• SB 9 aims to ease the housing crunch in California. With laxer residential zoning guidelines, proponents believes California would be able to create more much-needed housing units to address the housing availability and affordability issue.

What are some of the problems SB 9 may create?

• Opponents believe that most homeowners do not have the capital to redevelop their land, so gentrification would continue in certain neighborhoods.

• Takes away property rights of the homeowner who expected to live in neighborhoods originally zoned for single family.

• Creates parking problems, schools crowding, additional public resources burden (police, fire, sanitation, etc), and reduces green space (without a parks offset).

For real estate investors and developers alike, SB 9 may sounds like a golden opportunity; however, I foresee an ongoing political battle, especially NIMBY (not in my back yard) opponents in more suburban areas not wanting these dense urban housing units in their single family neighborhoods. Although we desperately need more additional housing in California, this "one size fits all" may not be the best approach.

Do you think Governor Newsom made the right choice to approve SB 9?