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Land Use,
Real Estate/Development

Jan. 5, 2022

SB 9 & 10: Did California say goodbye to the single-family home?

Senate Bill 9 allows certain single-family-zoned properties to be split and two units to be built on each new lot. Senate Bill 10 allows a jurisdiction to rezone any property for up to 10 residential units without California Environmental Quality Act review.

A. Jeanne Grove

Partner, Nixon Peabody

real estate

1 Embarcadero Ctr
San Francisco , CA 94111

UC Hastings COL; San Francisco CA

Jeanne is co-chair of the firm's Real Estate Practice Group. She has nearly two decades of experience in HOA and co-ownership issues, purchase/sale disputes, and boundary/title/development and construction matters. Ms. Grove is also a California-licensed real estate broker.

Jonathan Kathrein

Associate, Kaufman, Dolowich, Voluck, LLP

Email: jkathrein@kdvlaw.com

Jonathan is a Land Use/Transactional associate at the firm. He handles LLC formation, due diligence for potential acquisitions (e.g., title, environmental, leasing, and land use), purchase/sale agreements, and land use/project entitlement matters. Mr. Kathrein regularly appears in front of planning commissions, design review boards, city councils, and boards of supervisors.

In 2021, the California Legislature passed two major land use bills that took effect January 1, 2022: Senate Bills 9 and 10, codified at Government Code Sections 66452.6, 65852.21, 66411.7, 65913.5. SB 9 allows certain single-family-zoned properties to be split and two units to be built on each new lot. SB 10 allows a jurisdiction to rezone any property for up to 10 residential units without California Environmental Quality Act review.

SB 9 will significantly reduce the zoning barriers to allow single-family residential parcels to be split and allow for building two units on each parcel. SB 9 has two components, a zoning component and a subdivision component. However, the new law has many limitations.

The zoning component requires a local jurisdiction to ministerially approve the development of two units on any single-family property. The subdivision component of SB 9 requires a local jurisdiction to ministerially approve the division of a single-family zone residential parcel. Each of the two new parcels may not be less than 40% of the original lot. Neither new lot may be less than 1,200 square feet. The applicant must provide a signed affidavit declaring an intent to occupy one of the units for a minimum of three years. The created units may not be used for short-term rental. Serial division of lots are also prohibited; the division may only be done once.

Despite the broad brush of SB 9, there are many exceptions that result in its quite limited application. First, SB 9 is limited to urbanized areas and urban clusters. Even if the property is in an urbanized area or urban cluster, SB 9 applies only in areas that are not prime farm land, wetlands, very high fire severity zones, hazardous waste sites, earthquake fault zones, 1% annual flood hazard zones and regulatory floodways, lands identified for conservation, or habitat for protected species. Second, SB 9 does not apply to rental properties or properties that are tenant-occupied for the past three years, properties that were built 15 years ago or more, or properties subject to the current Wildfire Anti-Price Gouging Act, or that have had an Ellis Act eviction in the past 15 years. SB 9 also does not allow the demolition of housing restricted to moderate income or below.

SB 10 allows a jurisdiction to up-zone a residential or residential mixed-use zoned property to allow for up to 10 residential units on one parcel. It only applies if a parcel is both within 1/2 mile of a major transit stop and the property is an urban infill site. An urban infill site means the parcel is adjoined by 75% urban uses, previously zoned as residential or at least two-thirds residential if mixed use, and urbanized or part of an urban cluster as designated by the U.S. Census Bureau.

If the property does not fall under one of these many exceptions and otherwise meets the criteria of SB 9/10, the lot split or upzoning of a property is not subject to California Environmental Quality Act review. The purpose of CEQA exemption is to further streamline this type of development.

There are many exceptions in the new housing law. California has not yet said goodbye to the single-family home. However, SB 9/10 represents a victory for housing advocates who desire greater state control. If state policy continues in this direction, SB 9/10 will be a significant step toward losing the single-family home in the name of creating more housing units in the state. 

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