Do You Want to Make the Most of Your Home?

Most California Homeowners Don't Know This Huge Change In Housing Laws

Do You Want To Make The Most of Your Home?

Hey, we’re Framework First. We’re determined to make the most of each and every home. Will yours be next?

As of September 2021, the California Housing Laws have changed again giving homeowners many more options to create not only additional housing, but additional wealth with their home and property.

Why California homeowners should be excited!

Today many people are still not aware of the legal changes allowing ADUs and JADUs (Accessory Dwelling Units and Junior Accessory Dwelling Units) which started in 2019. However, in the past month not only has the previous expiration of 2025 been extended to 2030, Senate Bill 9 has dramatically changed the Housing Laws again.

This new package of bills named the ‘Building Opportunities for All’ establishes even more opportunities for homeowners to make big changes in our communities.

Provides options for homeowners to build wealth
Benefits for homeowners Not investors
Maximum number of units per lot
No historic neighborhoods
Respects local control
Promotes infill growth

With these new laws a lot of changes will be made and numerous opportunities for homeowners, however tenants are protected also. Senate Bill 9 prevents profiteers from evicting or displacing tenants by excluding properties where a tenant has resided in the past three years.

How will SB 9 help me build wealth?

Families who own a property in an urbanized area or urban cluster, which have certain population and density thresholds can potentially build a duplex or even up to four homes on their land. This can help provide affordable rental housing to tenants while increasing the homeowner’s ability to generate passive income with their property. There are even possibilities for subdividing their property giving the tenant a path to homeownership. This new law is really never before heard of in our State of California. This will benefit both the homeowner in allowing them to have a rental property without having to buy a second home for a rental. A much more affordable path to wealth in our expensive State where many Californians struggle to afford one home, much less two.

This also provides an affordable housing option for a tenant to rent the new second dwelling. As there will be limits by lot size and coverage, the new rental home may be smaller in size and have a more affordable monthly rent, therefore also helping the tenant.

Will this really help the single family homeowner or only help investors with money?

Senate Bill 9 prohibits the development of small subdivisions and ministerial (without discretionary review or hearings) lot splits on adjacent parcels by the same individual. There is also an owner occupancy requirement on lot splitting as well as other requirements. The maximum number of units on a single family parcel is limited to four.

No small subdivisions
Owner occupancy on lot splits
No lot splits on adjacent parcels by the same person
Maximum of four units on a single family parcel
No displacing or evicting tenants

These restrictions and more neighborhood housing scale should actually curb the market power of institutional investors. With SB 9 the State is actually putting the power into the hands of the homeowners with real, viable options to change their property.

What areas or properties are excluded?

This bill is to promote infill growth in typical single family homes that are located in jurisdictions determined by the US Census to be part of an urbanized area. Which means there are population requirements. In addition, there are other exclusions such as:

Very high fire hazard severity zones
Prime agricultural land
Hazardous waste sites
Earthquake zones
Floodplains without adequate mitigation

Basically, if your local government (Planning and Building Departments) do not allow homes to be built in that area, SB 9 will not apply.

What does the new California home law do?

Senate Bill 9 is known as the California Housing Opportunity and More Efficiency Act or ‘HOME’ Act. This really streamlines the process to help homeowners create a duplex or even subdivide their lot, which once was almost impossible. Or very likely impossible, especially subdividing your property. This law is an amazing opportunity for homeowners to create passive income and wealth, while also helping to improve the availability of housing in California. There are many restrictions and some properties will not qualify, but many will, which will help increase our housing options. With the average home in California at a cost of almost $600,000 many are not able to afford a home of their own. The HOME Act will likely change that with the possibility of subdividing your property.

There have been many amendments to SB 9 and may be more to come as local jurisdictions try and sort out the requirements and restrictions of this new law. Together with our new ADU and JADU laws one thing is for certain, California Housing Laws have changed dramatically.

Find out what your options are, and get started building generational wealth for your family!