Why a California Plan to Build More Homes is Failing
May 27, 2024 by California’s 2021 law, SB9, aimed to alleviate the state’s housing shortage by allowing single-family homeowners to subdivide their lots and build multiunit properties. However, two years later, resistance from local officials and complex regulations have hindered its success. Fewer than 500 property owners have applied to subdivide their land, resulting in only a few dozen new housing units. Local governments have imposed restrictions on height, square footage, and design, making it difficult for homeowners to benefit from SB9. For example, Temple City imposed strict requirements, leading to no SB9 applications. Some cities, like Redondo Beach, have legally challenged the law, further complicating its implementation. State Senator Toni Atkins, who introduced SB9, is working on new legislation to address these issues, while startups are emerging to help homeowners navigate the regulations. These companies offer services to handle applications and permits, and in some cases, purchase excess lot space from homeowners to sell to developers. Despite these efforts, the impact of SB9 is far less significant than the growth seen with accessory dwelling units (ADUs) after similar legislation. The number of lot-split applications under SB9 has increased modestly but remains low compared to the surge in ADU permits.