What to choose: ADU or SB9

Traditionally, people in need of splitting their property go with building ADUs by using the services of reliable construction companies. However, if you’re interested in exploring more lot-splitting options, SB9 could be the way to go. We’ll go over the main aspects of this law and how you can make the most out of it. Additionally, we’ll explain how building an ADU after a lot-split works & if it’s possible to do so.

What Does Senate Bill 9 Mean, and why do we need it?

In response to the severe housing crisis, California Senate Bill 9 was passed. This bill allows two distinct activities on lots designated as single-family dwellings.

A comprehensive list of what Senate Bill 9 permits and prohibits:

1. SB9 permits the division of one parcel into two. They can be treated as independent entities and used to generate revenue.
2. SB9 makes it possible to transform a single-family dwelling into a duplex or even to construct an additional single-family home.
3. Before SB9, homeowners in California used to seek out a POA (property owner’s association) for permission. Now, homeowners can consider subdividing their properties and selling one of the divisions for a profit. This method is becoming more common as people look for additional income sources.
4. SB9 had the effect of making it easier for homeowners to subdivide their properties into additional single-family homes.
5. In the past, local governments could use their discretion to approve lot splits. Today, this action is considered routine and does not require much.

SB9 was introduced with the intention of adding additional real estate stock to the market, as was the case with other ADU legislation.

How does Senate Bill 9 function?

SB9 makes it easy to divide up parcels of land in residential areas, simplifying the entire process – forming two new, smaller lots. This makes it easier to divide up residential spaces for maximum use. This makes it easier to build an extra house or sell a newly divided lot.

Instead of the traditional single-family home, constructing duplexes is a smart choice. This helps maximize the potential of your land and make it a more valuable space. This could potentially permit up to four housing units which was not possible before.

Senate Bill 9 Requirements: Minimum

SB9 requires that you own and occupy your property as your primary residence for at least 36 months prior to applying for the program.

What is more, the bill has prohibited ministers from dividing land that is adjacent to their own properties, meaning that they are held by a single individual. This is to prevent possible speculation from investors.

SB9 seeks to offer home renters a greater degree of security and protection against eviction. It stipulates that a tenant who has been living in the same residence for at least three years cannot be displaced from their house.

What Residence to Build after Splitting your Lot with SB9?

When dividing a property into two, it is essential to adhere to local zoning regulations. This is known as “by right” and must be followed by homeowners who have gone through the splitting process. However, these laws should not make building a duplex impossible.

In order to take advantage of the simplified regulations established by the law, you must meet certain requirements. Residents must adhere to zoning regulations and ensure their unit is designed in such a way that it fits in with the character of their neighborhood.

While these requirements may be interpreted differently depending on local conditions, they provide an overarching framework for compliance.

ADU split vs. SB9 split: Main Differences

Whatever you choose, it’s beneficial to weigh both options and make an informed decision. Get a rundown of the major contrasts between SB9 and ADUs. Certain cost effects may arise, so be sure to take them into consideration.

Setting up the necessary utilities for a new property can get quite costly; when it comes to hooking up a home to the street-side municipal infrastructure, a lot of times, ‘ right of way’ work is required. This may be costly, but it’s often worth the investment in the long term.

When investing in multi-unit properties, it’s important to understand the laws and rules surrounding owner occupancy. Make sure you understand what is allowed and what isn’t before you decide to invest – as that could affect your ability to sell individual units down the line.

Here’s a list of major differences between going with SB9 and applying ADUs:

1. SB9 enables you to divide a large property into two entities possible to be sold as standalone products. These parcels of land can be purchased even with existing housing structures. As for ADUs, these can’t be sold on their own but must remain part of the main dwelling.
2. SB9 is relevant exclusively to family dwellings that are placed within designated zoning areas, whether by going with ADUs, you will enable yourself to construct up to two structures on a multi-family zoned land.
3. If you are dividing your lot, then abiding by SB9, the property ought to be in your possession for at least 36 months. With ADUs, there is more freedom in this regard.
4. In high-fire and heritage areas, it is not allowed to construct SB9 structures; however, constructing an ADU split can offer the chance to build in those places.
5. SB9 does not offer any fee or permit discounts when it comes to the construction of a single-family house, which still remains at its original level.

Is it Possible to Apply SB9 and then Build an ADU?

Generally, the answer to this question would be “yes “unless the city explicitly prohibits it from being built upon such a large divide.

Depending on where you reside, the way in which you can apply SB9 and ADU laws can vary greatly. Depending on what’s allowed in the area, a homeowner may, for example, have a duplex plus two additional dwelling units. Conversely, the regulations for ADUs vary by city and are not consistent.

To illustrate, Sun Diego passed a law that reverses ADU rules for those who utilized the SB9 legislation. SB9 has changed the rules for homeowners who have divided their lots. Consequently, they are now unable to qualify for any of the home-building incentives offered by the city’s ADU program.

Basically, if you have the authorization to construct an ADU on a property divided through SB9 legislation, then you will be able to do so. It’s essential that you comply with ADU regulations & laws in the relevant jurisdiction. Neglecting this may incur costly errors or penalties for non-adherence. Therefore, if you carry out a split, the addition of an ADU might be possible; however, this is only viable if it adheres to the zoning regulations.

Create an appointment with ADU BUILDERS CALIFORNIA to talk about your real estate and to get a comprehensive understanding of all your ADU options.