Build ADUs using SB-9

Unlocking Housing Potential: Building ADUs with California’s New SB-9 Law

California’s housing crisis has sparked a wave of legislative reforms aimed at increasing housing supply and reducing costs. One of the most impactful changes has been Senate Bill 9 (SB-9), which came into effect on January 1, 2022. This new law provides a simplified process for homeowners to build Additional Dwelling Units (ADUs) or even split their property into two separate lots, making it a game-changer for those looking to create new housing options. But how does SB-9 work, and what should homeowners consider before starting an ADU project? Here’s everything you need to know.

What is SB-9?

SB-9, also known as the California Home Act, was signed into law to address the severe shortage of affordable housing throughout the state. It allows homeowners to build up to four residential units on a single-family zoned lot—two main homes and two ADUs—without going through the traditional, lengthy permitting process. The law makes it easier to add housing by streamlining the approval process for property owners who wish to subdivide their land or add extra units.

Key Provisions of SB-9

1. Lot Splits: SB-9 permits homeowners to divide their property into two separate lots. Each new lot can contain up to two residential units, allowing for the creation of four units on what was previously a single-family parcel.

2. Simplified Approval Process: Under SB-9, projects are subject to a ministerial approval process, which means they don’t have to go through public hearings or get discretionary approvals. This streamlines the timeline for building ADUs and reduces the overall cost.

3. Owner Occupancy Requirement: For property splits, SB-9 requires that the homeowner occupy one of the units as their primary residence for at least three years. This provision aims to prevent large developers from taking advantage of the law and encourages owner-occupied housing.

4. Local Control: While SB-9 supersedes many local zoning regulations, municipalities can still impose certain design and size standards, as long as these don’t make building impossible. Homeowners should check their city’s specific requirements before beginning a project.

How SB-9 Can Benefit Homeowners

For homeowners, SB-9 opens the door to increased property value and passive income. Adding an ADU or splitting your property provides opportunities for renting out units, housing family members, or even selling the new lot. With ADUs increasingly in demand, these units can offer an affordable housing solution for renters while providing a steady income stream for homeowners.

The simplified approval process means less red tape and shorter waiting periods, so you can start construction sooner. By taking advantage of SB-9, homeowners can maximize the potential of their property while contributing to California’s goal of increasing housing availability.

Key Considerations Before Building

While SB-9 offers numerous benefits, it’s essential to approach ADU projects with careful planning:

• Consult with Professionals: Work with an architect or contractor familiar with SB-9 regulations to ensure your project is compliant and feasible.

• Understand the Costs: Though the approval process is streamlined, ADU construction can still be expensive. Evaluate all costs, including building, utilities, and impact fees.

• Check Local Regulations: Even with SB-9 in place, local jurisdictions can impose certain design standards or restrictions, so make sure your project adheres to any city-specific rules.

Final Thoughts

SB-9 has made it easier than ever for homeowners to create new housing opportunities and generate extra income by building ADUs. With the right planning and professional guidance, you can unlock your property’s full potential while helping alleviate California’s housing shortage.