Chris Parker / September 22, 2021
Late last week, Gov. Newsom signed two bills from the state senate that have been closely watched by the state’s construction/realty/housing industries. Now the question is: How will they impact the state’s largest city?
The more significant law of the two is Senate Bill 9, or SB 9, which has been called by some the “killer of single-family housing” in California. That’s because when the law takes effect on Jan. 1, residents of property in single-family zones will be able to divide their lots and build duplexes on each lot, effectively turning one dwelling unit into four.
However, the new law has a couple of huge caveats that could significantly water down its impact in Los Angeles. The new law allows local municipalities to exempt certain areas from being eligible for the extra housing that SB9 allows. Specifically, SB9 says that historic areas may be exempted and/or areas where there is a life/safety concern.
The Los Angeles City Council earlier this summer voted to oppose SB9. And because the state law doesn’t take effect until Jan. 1, the City Council now has three-and-a-half months to pass an ordinance that would exempt a significant number of neighborhoods across the city.
For example, the council could block SB9 from taking effect in the city’s 35 Historic Preservation Overlay Zones, or HPOZs, which stretch from the Balboa Highlands in the North Valley to Vinegar Hill in San Pedro.
The council could also vote to impose limitations grounded in life-safety protection measures similar to how the city prohibits ADUs in the Very High Fire Hazard Severity Zone unless certain exceptions are met.
Of course, the City Council could also do nothing and the full breadth of SB9 would be eligible to homeowners across the city. But most council watchers don’t expect the councilmembers to sit this one out. Look for announcements soon touting emergency motions that will carve out parts of the city from being eligible for SB9 development.
The other senate bill that Gov. Newsom signed last week was SB10, which allows cities to approve upzoning that would lead to more housing density while exempting the environmental review that would normally come with such a change. But that upzoning can only occur if the local city council votes to allow it. The Los Angeles City Council voted to oppose SB10 as well so it is doubtful that councilmembers will support any new upzoning that would be allowed under SB10.
Bottom line: Keep an eye on the City Council and how it responds in the coming 3-plus months to SB9.
