If you own a home in California, you might be able to increase your property’s value with an SB9 lot split. This state law allows homeowners to subdivide their lot, creating new opportunities to build, sell, or generate rental income.
What is SB9?
SB9, officially known as Senate Bill 9, is a California state law that allows homeowners to split their single-family lot into two separate parcels. This law was passed to help address the state’s housing crisis by making it easier to build additional housing units on existing residential properties.
Before SB9, local zoning laws restricted most single-family homeowners from subdividing their land or adding additional housing beyond a single home and an accessory dwelling unit (ADU). However, SB9 overrides local zoning restrictions, giving homeowners new opportunities to develop their property.
Here’s what SB9 allows:
- Urban Lot Splits – Homeowners can legally divide their single-family lot into two independent parcels, each with its own property title.
- Additional Housing Development – Each newly created lot can have up to two full-sized homes, allowing for a total of four housing units where only one was previously permitted.
- Bypassing Lengthy Zoning Approvals – SB9 lot splits do not require public hearings, conditional use permits, or city council approvals, making the process much faster and more predictable than traditional lot splits.
SB9 is designed specifically for individual homeowners, meaning large real estate developers cannot take advantage of it in the same way. Currently, homeowners must sign an affidavit stating they intend to live on the property for at least three years. However, proposed changes to the law could eliminate this requirement in the near future.
For homeowners, this presents a unique opportunity to unlock equity by selling the newly created lot, developing new housing for rental income, or providing a home for family members—without the usual zoning restrictions.
Who Can Benefit from an SB9 Lot Split?
- Homeowners looking to build long-term equity by holding onto an extra parcel for future resale.
- Families who want to create housing for relatives without buying additional land.
- Homeowners seeking financial flexibility by selling the new lot or developing it for rental income.
Common Misconceptions
- “SB9 isn’t allowed in my city.” SB9 is a state law that overrides many local zoning restrictions.
- “My property taxes will increase significantly.” The new lot will receive its own tax bill, but there is no full reassessment of your home.
- “The process is too complicated.” A qualified engineering firm can handle all aspects of the lot split, from surveys to final approvals.
How to Check If Your Property Qualifies
To qualify for an SB9 lot split, your property must generally meet these requirements:
- Located in a single-family zone
- At least 1,200 square feet in size
- Not in a historic district or subject to HOA restrictions
- Has enough access for future development
Cost and Timeline
The cost of an SB9 lot split typically ranges between $55,000 and $75,000, with most fees covered upfront. The process usually takes 9-12 months, depending on location and complexity.
Next Steps
If you’re interested in increasing your property’s value, the first step is to check whether your lot qualifies.
