SB 9 Lot Splitting in California: A Comprehensive Guide

Owning a large portion of land can offer significant advantages, especially in a prime location like California. Splitting it into several parcels provides additional living space or an extra means of income.

With the rising costs and increasing demand for prime lots across the state, more and more landowners resort to lot splitting. Regardless of your reason, knowing the local requirements, as well as San Jose zoning regulations surrounding lot splitting, is essential. This guide has everything you need to know about lot splitting in California. Once land division is complete, reach out to Valley Home Builders for award-winning design and building services in San Jose and neighboring communities.

What Is SB 9 Lot Splitting?

Senate Bill (SB) 9, or the California Housing Opportunity and More Efficiency (HOME) Act, is a California law allowing the development of two dwelling units on a lot originally zoned for a single-family unit. It also permits the splitting of lots into two parcels.

Enacted on January 1, 2022, the California lot split law is designed to help landowners maximize the use of their property by dividing their portion of land to accommodate additional housing units. Since the goal of SB 9 is to create more affordable housing, the law prohibits demolishing existing rental units that have been rented in the last three years.

Who Uses SB 9 Lot Splitting?

SB 9 is highly beneficial for landowners, especially those who own properties in prime locations and have deep or corner lots. Deep lots are known for their long lengths, providing ample space for additional division. Corner lots, meanwhile, have bigger frontage and are accessible from two streets.

The California HOME Act is also often used by homeowners looking to make the most of their space. Some owners take advantage of the law to build accessory dwelling units (ADUs) within their property where other family members can stay. Our experts at Valley Home Builders can guide you through the lot-splitting process under SB 9 so you can better understand how the law can work for you.

When to Use It?

There are several reasons landowners like you might want to use the law to your advantage, such as:

• Building additional housing units within the property
• Creating space to allow multigenerational living
• Developing rental units to generate income
• Selling subdivided lots

Who Qualifies for Lot Splitting?

If you are a property owner in San Jose interested in splitting your property under the California HOME Act, determining your eligibility is important before starting the application process. These are the requirements under the SB 9 law:

1. Property Zoning

Your property must be:

• Located within an urban area or cluster
• Zoned as a single-family dwelling
• At least 2,400 sq. ft. in size
• Free of tenant evictions within the last 15 years
• Located outside of historic, flood, fire hazard and earthquake zones, prime farmlands and environmentally protected areas
• Free from previous splits under SB 9

2. Owner Occupancy

The homeowners must sign an affidavit proving their agreement to live in one of the housing units for no less than three years.

3. Lender Approval

For properties under a mortgage, the homeowner needs to secure permission from the lender agreeing to a partial release of the mortgage. An option to refinance the loan is also possible.

It is important to note that the law is still relatively new. While it aims to streamline the process and help landowners maximize land use, consulting experts like Valley Home Builders about requirements for SB 9 in San Jose is highly recommended.

Applying for Lot Splitting Under SB 9 in San Jose

The enactment of SB 9 makes applying for a lot split in San Jose and other areas of California simpler and faster. Here is a quick step-by-step guide when applying:

1. Determine your land’s eligibility. Refer to the qualifications mentioned above.
2. Decide on new lot lines. Keep in mind that the split can be either 50/50 or 60/40 and that each new lot must be at least 1,200 sq. ft.
3. Secure the lender’s approval or opt to refinance your loan.
4. Complete the paperwork.
5. Submit the application, pay the fees and wait for approval.

Valley Home Builders is one of the few companies in San Jose that offers lot-splitting services. Inquire about the process with our friendly specialists.

Benefits of Lot Splitting

SB 9 lot splitting offers plenty of benefits for you as the landowner and also for the renters and the broader community. The low supply of housing units in California can hardly keep up with the growing demand, leading to exponential prices. The SB 9 law aims to increase the housing supply and make it more affordable for the public while empowering you to invest in your property.

At Valley Home Builders, we work directly with the homeowners and landowners, who benefit from this new housing law through:

• Increased property value: Lot splitting creates additional buildable lots, which is advantageous for homeowners as it increases property value.
• Additional income streams: The creation of dwelling units allows property owners to lease spaces and generate rental income.
• Multigenerational living: Accessory dwelling units within one property facilitate multigenerational living. Families can live closer to one another on the same property.
• Enhanced property control: SB 9 gives homeowners the right to decide how to use their land. In addition to living with their family members, owners can create homeownership opportunities for their loved ones.
• A streamlined approval process: The California HOME Act aims to simplify the approval process of splitting properties, helping owners save time and money and allowing them to proceed with construction immediately.
• Optimized land use: The law allows for better use of land in urban areas and serves as a way to mitigate the housing shortage. It promotes infill development by building on underutilized land in prime locations.

Consult With Valley Home Builders for SB 9 Plans

Valley Home Builders is a full-service company for home remodeling and expansions in San Jose and nearby communities within the southern Bay Area. We specialize in large-scale real estate development projects, providing property owners with turnkey design and architectural solutions.

Our team of in-house experts can provide support if you are looking to build additional dwelling units within your property under SB 9. Contact us to learn how we can help and for more information about our services.