What You Should Know About SB8 and SB9

California's high cost of living has resulted in an affordable housing crisis. In an effort to combat the problem, the state recently passed SB8 and SB9, two new statewide housing laws. Defining SB8 and SB9 in California is important because both measures affect renters and rental property owners. 

What Is SB8?

SB8 simply extends the Housing Crisis Act of 2019. It was originally due to expire in 2028, but SB8 has extended that deadline to 2030. The original act provides a few protections, such as preventing the state from downsizing the density of housing, limiting application fee increases, and shortening the approval process for new housing developments.

What Is SB9?

When comparing SB8 and SB9 in California, it's easy to see why the state passed these two provisions at the same time. While SB8 affects future developments, SB9 lightens the restrictions on the use of existing single-family properties, allowing property owners turn single-family homes into duplexes. 

However, SB9 does come with an important stipulation: When converting a traditional home, the property owner must live in one of the duplex's units for a minimum of three years. There are exceptions for natural disasters, such as earthquakes, wildfires, and similar acts of nature, though.

The Benefits of SB8 and SB9 in California

Both acts provide several benefits, but their overall benefit is triggering an influx of affordable housing. As property owners and developers take advantage of these acts, California expects an estimated inflow of 714,000 new homes. 

Previously, two-thirds of the state prohibited multi-family housing. SB8 and SB9 authorize these housing options, meaning developers can obtain financing for alternative types of housing projects.

The Drawbacks of SB8 and SB9

Most criticism of SB8 and SB9 in California targets the latter, as converting a single-family home into a duplex can make the property's resale more challenging. Property owners may have to sell for less. 

In addition, the state will only allow the conversion of 5.4% of all single-family homes. Even when a property can qualify, the property owner may not have the financial means to pay for the renovation. That has raised fears that large real estate investment firms will take over the California rental market.

Custom Build an Affordable Dream Home

Advanced Builders & Contractors plans and builds custom homes throughout many California communities. We'll help you design a multi-family floor plan that meets your needs and takes advantage of SB8 and SB9. Schedule a consultation with us today to get started.