Senate Bill 9 is a great way to improve housing in the state However, implementing the bill is expensive due to the high costs associated with new construction. Building and energy codes require expensive upgrades such as fire sprinkler systems, solar installations, new sewer and power lines, and green building requirements like landscaping, water conservation, and low-impact development design. In addition, cities such as Los Angeles have implemented linkage fees, which penalize developers for building structures over a certain size, further increasing the costs of new construction. These additional costs make it difficult to build new housing units and make them more expensive for potential buyers. As a result, the high cost of new construction is one of the biggest challenges facing the implementation of SB 9.
SB9, the California Housing Opportunity and More Efficiency (HOME) Act, allows for lot splitting which can have many advantages for developers, property owners, and potential buyers.
Improve Cash flow: By subdividing the current parcel into smaller parcels, homeowners can sell or refinance them separately, which can increase cash flow.
Increased value: Lot splitting can increase the value of the property by creating more housing units on a single parcel of land.
Improve liquidity: Subdividing a parcel of land into smaller lots can improve liquidity by providing more options for buyers and investors.
Increase flexibility: Lot splitting allows developers to build a variety of housing types, catering to different needs and preferences of potential buyers.
Reduce risk: Lot splitting can reduce risk by providing more options for buyers and investors, and by creating more affordable housing options.
Address housing crisis: Lot splitting can create more housing units on a single parcel of land, which can help address the housing crisis in California.
Efficient use of land resources: By subdividing the land, it allows for more efficient use of land resources and can lead to the development of more affordable housing options.
Create opportunities for home owners: This bill benefits homeowners, and homeowners alone. SB 9 contains an owner occupancy requirement, which requires a homeowner to live in one of the units for three years from the time they get approval for a lot split. Additionally, this bill prohibits the development of small subdivisions and prohibits ministerial lot splits on adjacent parcels by the same individual to prevent investor speculation. In fact, allowing for more neighborhood scale housing in California’s communities actually curbs the market power of institutional investors. SB 9 also prevents profiteers from evicting or displacing tenants by excluding properties where a tenant has resided in the past three years.
Our newsletter is the perfect way to stay informed and up-to-date on all the latest news, events, and special offers related to our sites. By subscribing to our newsletter, you will receive regular updates and exclusive content, such as insider tips, new site features, and upcoming events.
Our newsletter is designed to provide you with a personalized experience, tailored to your interests and preferences. You can expect to receive engaging and informative content that will help you make the most of your visit to our sites.
So what are you waiting for? Sign up for our newsletter today and stay connected with all the latest happenings at our sites!