What Are The Implications of SB 9 & SB 10?

If you have been following real estate news, you have likely heard about Senate Bills SB 9 and SB 10. The Senate approved both on August 31, 2021, and Governor Newsom has signed the bills into law. So, what are the implications of SB 9 and SB 10? 

While the bills are structured differently and encompass different things, both could dramatically affect heritage conservation efforts throughout California, and more specifically, on a local level. They were created to address the affordable housing crisis in our state by easing land-use restrictions and making it easier to create multi-family housing, and increase density. 

However, while there is broad agreement that our state is in dire need of more housing, many question whether the implications of SB 9 and SB 10 are worth the negatives associated with them. Both homeowners and taxpayer advocates oppose SB 9 and SB 10 because of tax increases and the possibility of local governments losing control.

SB 9 makes the process of subdividing an existing single-family residential lot easier, meaning an owner could easily create a duplex or other new infill construction. SB 10 seeks to enable legislation for jurisdictions interested in changing the zoning requirements in urban areas near public transit. The bill allows up to 10 units per parcel without any California Environmental Quality Act (CEQA) oversight.

One of the biggest concerns is that there are not any protections in place for historic buildings or properties with SB 10. It allows developers to bypass the CEQA review with little to no public input or review process. This could mean the loss of many historic resources that could easily be demolished.

The good news is that single-family homes located in single-family residential zones will not be revalued under SB 9 and SB 10, thanks to Proposition 13. However, single-family homes not located in one of these zones could see potential valuation challenges when sold.

Polling suggests that most California voters oppose SB 9 and SB 10. 

To learn more about SB 9 and SB 10, visit https://leginfo.legislature.ca.gov/faces/billSearchClient.xhtml and use the “Bill Search” feature to learn more. 

I’m a local real estate professional who has decades of experience in the Pasadena area. I am available to assist you in buying or selling a home, so please contact me if you would like to schedule a time to discuss your needs. Please be well and stay healthy and safe!