Senate Bill 9, also known as the HOME Act, was signed into law late last year and went into effect this past January. This new legislation hopes to simplify homeowners’ ability to create housing. It allows the addition of a second dwelling on an existing lot or the subdivision of that lot. Following the subdivision, two units may be constructed on each of the new lots. Since these parcels were initially zoned for single-family homes, the potential to add additional housing stock in the East Bay could be the answer to the housing shortage we feel.
Here is what you should know before adding a unit or subdividing your lot
- Subdivided parcels must be for residential use only.
- Two homes may be created on one parcel, whether the proposal adds up to two new residential units or one new unit to one existing unit.
- If a subdivision is done, the subdivider must occupy one of the units for a minimum of three years.
- Each new parcel must be approximately equal in size.
- No parcel can be less than 1,200 square feet.
Financing Considerations
You should know funding a project under SB-9 is different, and possibly more challenging, than a traditional home mortgage. There are some programs that can help.
CalHFA offers grants for ADUs to those with low to moderate incomes. It also provides up to $40,000 to reimburse costs associated with pre-development and non-recurring closing costs. Depending on the location, this might include design work, property surveys, permits, soil tests, impact fees, and energy reports.
Interested in finding an East Bay parcel large enough to benefit from the Home Act?
As a top producing agent with 20+ years of experience in the East Bay, I have helped hundreds of clients showcase and maximize the sale of their homes in the Greater San Francisco Bay Area and the counties of Alameda and Contra Costa, and my experience as a former appraiser allows me to help my clients understand the market. If you have any questions, I am here to be a resource for you
January 24, 2023 
