Today I wanted to give you a quick summary of Senate bills 9 and 10 that were recently passed here in California. They were created to address the housing shortage, and I’m excited about what they could mean for our market.

SB-9 lets any single-family homeowner become a developer by splitting their lot and building homes on each of those lots. You need to have 1,200 square feet on each of those lots, and they need to be of similar sizes. The homeowner also needs to reside in one of the units for at least three years after splitting the lot, which prevents investors from taking advantage of this. There’s a big push for accessory units right now, but this gives you the ability to add even more.

“Both SB-9 and SB-10 were made to address the housing shortage.”

SB-10 is a little more controversial. It lets local governments allow up to 10 homes per parcel. The bill cuts some of the red tape around doing so, and it makes it exempt from the EPA. However, the lot has to meet the definition of urban infill and be near public transportation or a job-rich area.

Now you’ve had a short primer on SB-9 and 10, and it could be something to talk about in your holiday conversations. If you have any further questions, feel free to reach out via phone or email. I’ll share the details as I learn more about these developments.