California has long faced a housing crisis marked by rising costs, limited supply, and growing demand for flexible living spaces. To address this, the state introduced the California HOME Act (SB9), a law that makes it easier for property owners and developers to add more housing units on single-family lots.
Whether you’re a homeowner looking for extra income or a developer planning long-term projects, SB9 provides valuable opportunities to expand property potential.
This article explains the key features of SB9, its benefits, challenges, and how you can take advantage of it effectively with the right guidance.
What Is the California HOME Act (SB9)?
The California HOME Act, also known as Senate Bill 9, was signed into law in 2021 and took effect on January 1, 2022. Its primary purpose is to address the state’s housing shortage by allowing property owners in single-family zones to split their lots and build additional units with fewer bureaucratic hurdles.
Key points about SB9 include:
- Lot Splits: Single-family parcels can be divided into two lots.
- Duplex Allowance: Each lot can host up to two residential units.
- Simplified Approval: Eligible projects receive ministerial approval, meaning no lengthy public hearings.
Key Provisions of SB9 That Benefit Property Owners
SB9 is structured to give homeowners and developers more flexibility. Here are some highlights:
- Lot Division: Owners can divide an existing parcel into two, opening the door for new construction opportunities.
- Duplex Construction: Building two units on a single lot or newly split lot is now possible.
- Faster Permits: As long as requirements are met, cities must approve projects without discretionary reviews.
- Statewide Consistency: Local zoning rules cannot block qualifying SB9 projects, reducing roadblocks from city ordinances.
How SB9 Helps Real Estate Developers and Homeowners
The HOME Act isn’t just about creating more housing units; it’s about unlocking new ways to use land effectively. Both homeowners and developers can benefit.
For Homeowners:
- Additional rental income from new units.
- Opportunity to provide housing for aging parents or adult children.
- Increase in property value by adding more living spaces.
For Developers:
- Ability to acquire single-family lots and build multiple units.
- Higher return on investment with smaller-scale residential projects.
- Fewer regulatory barriers compared to traditional rezoning requests.
Requirements and Eligibility for SB9 Projects
While SB9 creates new opportunities, there are clear eligibility rules:
- Location Restrictions: Lots must be in urban areas zoned for single-family housing.
- Lot Size: Typically, each split lot must be at least 1,200 square feet.
- Owner-Occupancy: For lot splits, one of the properties must be owner-occupied for a minimum of three years.
- Exclusions: SB9 cannot be used on historic sites, wetlands, or certain environmental hazard zones.
- Setbacks: Local setback requirements still apply, although reduced setbacks may be permitted.
Benefits of Building ADUs Under SB9
One of the biggest advantages of SB9 is how it aligns with Accessory Dwelling Unit (ADU) development, making it easier to create additional living spaces.
Benefits include:
- Simplified Approval Process: ADU and duplex applications are reviewed faster.
- Design Flexibility: Property owners can choose between backyard cottages, in-law suites, or duplex units.
- Increased Income Opportunities: ADUs provide steady rental income while also offering housing for family.
- Long-Term Value: Properties with ADUs or duplexes typically see stronger appreciation in California’s market.
Challenges and Limitations of SB9 to Keep in Mind
While SB9 is a big step forward, it isn’t without challenges.
- Local Restrictions: Some cities may add design or aesthetic requirements.
- Financing: Building new units still requires upfront investment and access to loans.
- Infrastructure Concerns: Parking, utility connections, and sewer lines may need upgrades.
- Community Pushback: Some neighborhoods may resist added density despite the law.
How Nestadu Helps Property Owners Navigate SB9
Building an ADU or duplex under SB9 is not just about construction; it’s also about navigating rules, ensuring compliance, and creating a design that fits your property. That’s where Nestadu comes in.
- Expert Guidance: Our team understands California zoning laws and SB9 regulations.
- Design Services: We create ADUs and duplexes that blend seamlessly with your existing home.
- End-to-End Support: From concept and permitting to construction, we manage the entire process.
- Transparent Pricing: Clients know what to expect with clear, upfront cost structures.
By working with professionals, homeowners and developers can avoid common pitfalls and focus on enjoying the benefits of their investment.
Steps to Start an SB9 Project in California
If you’re considering SB9 for your property, here’s a roadmap to get started:
- Evaluate Your Property: Determine eligibility based on zoning and lot size.
- Consult Professionals: Work with an experienced ADU builder like Nestadu.
- Create a Design Plan: Choose between duplexes, ADUs, or a mix of both.
- Submit Applications: Apply for ministerial approval with the local city.
- Begin Construction: With approvals in place, move into the building phase.
Final Thoughts – Is SB9 Right for You?
The California HOME Act (SB9) opens doors for property owners and developers to contribute to the housing supply while creating financial and lifestyle benefits. Whether you want to add rental income, house multiple generations, or expand your investment portfolio, SB9 offers a clear path forward.
With the right guidance, these projects don’t have to be overwhelming. Partnering with a trusted ADU builder like Nestadu ensures that every step from planning to construction is handled with expertise and care.