What Is an SB9 Lot Split?
If you own a home in California, you may be sitting on untapped value. Thanks to Senate Bill 9 (SB9), many single-family homeowners can now split their lot into two legal parcels — opening the door to new development, rental income, or a profitable sale.
Passed in 2021, SB9 was created to combat California’s housing shortage by allowing property owners to add housing units on land previously restricted by local zoning. The law effectively empowers everyday homeowners to act like small-scale developers, turning their single-family lots into income-producing opportunities.
How SB9 Lot Split Works
The SB9 lot split allows a qualifying single-family property to be divided into two independent parcels, each capable of holding up to two residential units.
Here’s what SB9 enables you to do:
- 🏘 Urban Lot Split: Legally divide one single-family parcel into two separate lots, each with its own APN (Assessor’s Parcel Number) and title.
- 🏗 Build Up to Four Homes: Each new parcel can host two full-size dwellings, allowing as many as four housing units where only one home was once allowed.
- ⚡ Simplified Approval Process: SB9 projects bypass public hearings and conditional use permits, making approvals faster, more predictable, and less political.
Unlike large-scale developers, SB9 is designed for individual homeowners. Applicants must sign an owner-occupancy affidavit confirming they intend to live on one of the lots for at least three years (though this rule may be relaxed in future updates).
Why SB9 Is a Game-Changer for Homeowners
An SB9 lot split in California gives you multiple strategies to unlock your property’s hidden equity:
- 💰 Sell the New Lot: Subdivide and sell one parcel to a builder or investor while keeping your original home.
- 🏠 Build for Family: Create a new home or ADU for relatives without buying another property.
- 🏗 Develop for Income: Construct rental units or a duplex to generate long-term passive income.
- 📈 Increase Property Value: A subdivided parcel often commands a premium, instantly raising your property’s total worth.
Who Can Benefit from an SB9 Lot Split
- Homeowners seeking to build wealth or supplement income.
- Families looking to add a home for children or aging parents.
- Investors interested in infill development or small-lot construction.
- Property owners who want flexibility — either to sell, build, or hold for future appreciation.
Common Misconceptions About SB9
“SB9 isn’t allowed in my city.”
SB9 is state law, meaning it overrides local zoning restrictions in most California jurisdictions.
“My property taxes will skyrocket.”
When you split your lot, the new parcel receives its own tax assessment, but your existing home’s base tax value under Prop 13 stays intact.
“It’s too complicated or expensive.”
The process is straightforward with the right team. Licensed engineers and surveyors can handle the subdivision mapping, city approvals, and documentation.
SB9 Qualification Requirements
To qualify for an SB9 lot split, your property must generally meet these conditions:
- Zoned for single-family residential use
- At least 1,200 square feet in total lot size
- Not located in a historic district, wetlands, or high-fire-risk zone
- Not subject to HOA restrictions that prohibit lot splits
- Provides adequate access for emergency vehicles and future construction
Each parcel created must be roughly equal in size (no smaller than 40 % of the original lot).
Cost and Timeline
On average, an SB9 lot split costs $55,000 – $75,000, including surveying, engineering, city fees, and recording costs.
Typical project duration: 9–12 months, depending on the city’s review process and whether you plan to build immediately after the split.
While the upfront cost may seem high, many homeowners find the increase in property value far exceeds the expense — especially in high-demand areas like Los Angeles, Torrance, and the South Bay.
Why SB9 Is an Equity-Building Opportunity
By subdividing your land, you’re essentially creating a new real estate asset from your existing property — a parcel you can sell, develop, or finance.
This strategy allows you to:
- Tap into built-up home equity without selling your residence.
- Build long-term generational wealth by adding rentable or sellable units.
- Increase your property’s flexibility and resale appeal.
In a housing market where buildable land is scarce, an SB9 lot split can unlock six figures or more in hidden value.
How to Get Started
- Verify Eligibility: Check your zoning and parcel size.
- Hire an Engineer or Land-Use Consultant: They’ll prepare your parcel map and file your SB9 application.
- Submit to Your City: Your city must approve compliant applications ministerially (no public hearing required).
- Record the Split and Build: Once approved, record the new lot and start planning your development or sale.
At Ybarra Commercial Group, we work with homeowners, engineers, and investors across the South Bay to identify SB9 opportunities, evaluate financial returns, and guide you from concept to completion.
Final Thoughts
California’s SB9 lot split law has changed the real estate landscape — giving everyday homeowners the same tools developers use to build wealth. Whether you’re looking to sell a newly created parcel, add rental income, or build multigenerational housing, SB9 can transform your property into an investment engine.
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