Senate Bill 9 Split Your Lot In 2 And Build 4 Homes In 2022

  • By: Scott Hodge
  • Date: January 6, 2022
  • Time to read: 3 min.

Today we’re going to talk about Senate Bill 9 and the Bottom Line Up Front is Senate Bill 9 will allow homeowners to split the lot that their primary home is on into 2 separate lots and build up to 2 homes on each lot, and yes this applies to homes that are currently zoned for 1 residential unit.

The law will take affect in January 2022 and Under the new law, homeowners have several options:

#1 – You could split your lot in two and simply build another single-family home, creating two homes on one lot.

  • #2 – You could Split the lot in two build another a duplex, keeping your current home. This creates 3 homes on one lot.
  • #3 – Split the lot in two, tear down your existing home and build two duplexes. This would maximize the lots potential with four homes. And finally,
  • #4 – Split the lot in two, each with a single-family home with an ADU in the back of each lot. This would also create four units.

Now, there is a very important caveat with Senate Bill 9, under the new law, property owners would have to live in one of the units for at least three years after their new home is built. That stipulation was specifically designed to stop developers from buying up all of the available single-family homes with lots large enough to split.

Some argue that this law could destroy the suburbs by significantly increasing population density in those areas.

But researchers say these fears likely won’t come to pass. Because out of the 554,000 single-family lots in San Diego County, there are around 398,000 of those lots that are eligible to be split under Senate Bill 9. However, according to a recent feasibility study, only 54,500 of those lots are able to be split due to setbacks, lot size and other issues, or about 9.7 percent of the total single family lots in San Diego County.

It should come as no surprise that there are a few areas throughout San Diego County that are exempt from the new law, including most of South Park, Old Town, and parts of Escondido due to theirstatus as historic districts. Senate Bill 9 mandates that such locally designated historic districts are exempt.

So, how will this law impact San Diego’s real estate market? Right now, it’s hard to predict how many homeowners will have both the financial resources and the desire to split their lots and add more homes on them. Some analyst argue due to the extremely high cost of new construction most homeowners aren’t likely to take advantage of this new law.

Regardless, we will be watching to see what impact this new law has on the San Diego real estate market as well as the supply of available homes, however, I wouldn’t expect to see a lot of change in the near future. Fortunately, this law was written for the benefit of single family homeowners and not investors and builders.

So, that’s a quick snapshot of Senate Bill 9. Thanks again for watching this video guys! If you have any questions about Senate Bill 9, or any other real estate related questions feel free to leave them in the comments below or reach out to me directly. Have a great day, and I will see you next time.

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