There has been a big change in California real estate. Basically, residential lots can be split into two parcels and homes can be converted into duplexes. Senate Bill 9 (SB9) was signed by the Governor and applies across California to every residential parcel in urbanized areas, such as the South Coast, starting January 1, 2022. This can even apply to people who own lots as small 2,400 square feet which would now allow two lots of 1,200 square feet to be created. The purpose of this law is to efficiently increase the number of homes available to occupy or purchase.
You may be wondering if this will affect you? If you are a homeowner, you may have increased opportunities to divide your land and develop it. If you are a first time home buyer, within several years you will have more opportunities to buy a home. If you are a tenant, the law protects you for at least 3 years before a landlord could alter your rental as part of developing their parcel.
Let’s say you own a Montecito property, probably with half an acre or more. How easy would it be to split?Some homes are smack in the middle, making it difficult to split. However, homes that are on the edge of the property could be easy to split, since there is a large vacant space. Clearly some owners will choose to take advantage of the lot split opportunities of Senate Bill 9, and others will not or cannot split their lots.
SB9 also allows all existing homes to be divided into duplexes, potentially creating much larger units than the current ADU limit of 1,200 square feet.
Montecito Market Report
If a parcel’s configuration allows for splitting, each lot can have either a single home or a duplex and each lot can be sold separately. In some cases, a single-family home will become two lots,each with a duplex. This could be a financial win for the property owner. Some properties will gain value from their configuration of house and land. Potential buyers will soon pay a premium price for such lots, even if the current owner chooses not to develop it. If you are shopping for property, you might include the potential of a lot split in your evaluation of the homes you are shown.
This new law overrides local laws and applies throughout the State of California. There are a lot of details in SB9. If you are a property owner and want to know how this applies to your situation, let’s chat. Really smart buyers can take advantage of this little know secret, at least for a few months, before this becomes common knowledge. Please give me a call if this interests you.
Client Talk…
The data relating to real estate for sale on this web site comes from the Internet Data Exchange Program of the Santa Barbara Multiple Listing Service. Real estate listings held by brokerage firms other than the displaying broker(s) are marked with the ‘MLS’ logo and detailed information about them includes the name of the listing brokers. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) nor displaying broker shall be responsible for any typographical errors, misinformation, or misprints. 2021 Santa Barbara Multiple Listing Service. All rights reserved.
Equal Housing Opportunity. We do business in accordance with the Federal Fair Housing Law