What exactly is Senate Bill 9 (SB 9)?
Senate Bill 9 (SB 9) is a California law that went into effect on January 1, 2022. It allows property owners to split their single-family residential lots into two parcels and build up to two residential units on each parcel, potentially creating up to four units where only one was previously allowed.
Does my San Francisco property qualify for SB 9 development?
Most single-family zoned properties in San Francisco qualify for SB 9 development, but there are exceptions. Properties in historic districts, high fire hazard zones without proper mitigation, or those that would require demolishing rent-controlled or affordable housing may be ineligible. A professional assessment can determine your property’s eligibility.
How much does an SB 9 development typically cost in San Francisco?
Development costs vary widely based on project scope, site conditions, and design choices. For a basic two-unit development in San Francisco, costs typically range from $450,000 to $650,000, including permits, design, and construction. Lot splits and more extensive projects will have additional costs.
How long does the SB 9 approval process take in San Francisco?
Under SB 9, cities must process applications ministerially (without discretionary review) and approve them within 60 days if they meet all objective standards. However, in practice, the entire process from initial application to permit issuance in San Francisco typically takes 4-6 months, depending on application completeness and department workload.
Can I sell the newly created parcels after a lot split?
Yes, you can sell the newly created parcels after completing an SB 9 lot split. However, the owner must sign an affidavit stating they intend to occupy one of the units as their principal residence for at least three years from the date of the lot split approval, unless the owner is a qualified nonprofit or community land trust.
Do I need to provide parking for new units under SB 9?
SB 9 generally prohibits cities from requiring more than one parking space per unit. Additionally, no parking can be required if the property is within one-half mile of public transit or within one block of a car share vehicle. San Francisco has its own specific parking requirements within these parameters.
How much can SB 9 development increase my property’s value?
In San Francisco’s premium real estate market, properly executed SB 9 developments can increase property values by 40-70% or more, depending on location, quality of construction, and market conditions. Additionally, new rental units can generate substantial monthly income.
Can I build Accessory Dwelling Units (ADUs) instead of using SB 9?
Yes, San Francisco property owners can choose to build ADUs under existing ADU programs instead of utilizing SB 9. The best approach depends on your specific goals, property characteristics, and financial considerations. SB 9 generally offers more development potential but may involve more complex processes.