SB 9: ‘Draconian,’ or the answer to the housing shortage?

A new state housing law intended to increase residential housing stock is raising eyebrows in local planning commissions across California.

Senate Bill 9 allows property owners to split their residential parcels into two lots – to either add a second home or a replace the existing residence with a pair of duplexes – in the hopes of incentivizing the development of affordable housing units in residential neighborhoods.

A joint meeting with the Sonoma City Council and the Planning Commission is scheduled for Oct. 20, at which time the City’s legal council will explain in greater detail how such recently passed housing bills will impact the development of the community of Sonoma.

Senate Bill 9, aka SB 9 or the California Housing Opportunity and More Efficiency (HOME) Act, was signed into law by Gov. Newsom on Sept. 16 and almost immediately sounded alarm bells in municipalities across the state. Under the bill, cities and counties are required to approve such split-lot proposals as long as they meet size and design standards – effectively removing oversight by city and county planning commissions.

The law spurred Mike Nugent, who’s running in the Nov. 2 election for the open seat on the Sonoma City Council, to describe it as “draconian” and name it among the top issues facing the City of Sonoma in the coming year.

“All of a sudden we have to face the new reality that we may not having the zoning and planning authority we used to have as a community,” Nugent said at a Sept. 28 candidates forum.

The Sonoma City Council also expressed significant reservations over the bill, sending a letter to Newsom opposing the bill’s “one-size-fits-all approach to land use policy that would undermine our local City planning efforts, not allow for community input or review of projects, and does not even guarantee affordable housing,” as described in a Sept. 20 city staff report.

Introduced by state Sen. Toni Atkins (D-San Diego), the goal of SB 9 is to increase available housing stock at more affordable prices in residential neighborhoods. It comes with several caveats: The parcel must be a minimum of 2,400 square feet and zoned for single-family residential development, it can’t be in a historic district (or be historic itself), and it can’t be in a rural or high-fire zone.

Additionally, a split lot under SB 9 cannot require the demolition or alteration of current affordable housing, nor can it displace established renters.

“Making a meaningful impact on this crisis will take bold investments, strong collaboration across sectors and political courage from our leaders and communities to do the right thing and build housing for all,” Newsom said upon signing the legislation.

According to a study by U.C. Berkeley’s Terner Center for Housing Innovation, of the state’s approximately 7.5 million existing single-family parcels, about 6.1 million would be eligible for development under SB 9.

In Sonoma County, the study estimated that about 2,688 single-family residential parcels would be newly eligible for lot splitting under SB 9.

However, the vast majority of such parcels “would not be affected because of an absence of physical capacity or financial feasibility,” according to the Terner Center study. In other words, most eligible property owners either lack the finances to redevelop their residential homes, the available space on their property or, perhaps more importantly, the desire.

“Converting a house to a duplex and renting out half may be most profitable for a homeowner, but that will not happen if that homeowner is uninterested in living more closely with others in what was formerly ‘their’ space or in becoming a landlord or homeseller,” the study concludes.

After factoring in regulations, market conditions and development alternatives, the Terner Center found that the most likely option for California owners of SB 9-eligible single-family parcels was “doing nothing.”

“Generally speaking, for most parcels it just doesn’t pencil out to do very much even with Senate Bill 9,” said David Garcia, policy director at the Terner Center, in an online presentation of the study.

In the end, the study found that about 5.4% of the state’s single-family parcels could feasibly allow for new development under SB 9 – though how many of those property owners will ever utilize the option remains to be seen.

Sonoma Planning Commissioner Chair Ron Wellander concedes it’s unclear how many people would take advantage of the opportunities presented under SB 9, but he’s still troubled by the lack of local say in the matter.

“It is disconcerting to lose control of local oversight in the development of our community and that is what is happening,” Wellander wrote in an email to the Index-Tribune. “SB 9 allows for parcels within a single-family residential zone to be split, allowing the construction of an additional housing unit approved ministerially, without discretionary review or a hearing. Only objective standards can be imposed on the project.”

Wellander said Sonoma can’t solve the state housing crisis alone, but he recognizes the City’s obligation to contribute its part in adding housing.

“The hope is to do so in a way that we can retain the overall fabric of our historic town, maintaining its charm and appeal cherished by many,” Wellander said.

Sonoma Planning Director David Storer said he and his team have been tracking SB 9 “for some time.”

“There’s clearly a lot of public agencies opposed to the bill,” said Storer.

Storer explained that traditionally in such development proposals, planning commissions must approve what’s referred to as a “tentative parcel map,” which detail the design and improvements in a proposed subdivision.

“The tentative parcel map disappears with SB 9,” said Storer, rendering a planning commission essentially “out of the game.”

Storer said the Sonoma Planning Department is still currently processing the law and its implications to the City. But, given the Terner Center study estimates that about 5% of eligible homes have the capacity to act under SB 9, he’s unsure of its local impact.

“Translate that to Sonoma and there’s not a lot of people that are going to be knocking on our door about it,” said Storer.

Email Jason Walsh at Jason.walsh@sonomanews.com.