California SB 9 - market implications

[German E.]

A few days ago the California Assembly passed SB 9, which now needs to go back to the Senate for a reconciliation process and then go up for signature by the governor.  If passed, it would be a step towards resolving the housing crisis in the state. How big a step is debatable, but it might make a big difference for some forms of investment.  I wonder what thoughts people have about it here in BiggerPockets. 

SB 9 has two separate sections. The first is a law that would grant people the ability to permit duplex construction in most single family homes. The second would allow to subdivide an existing SFH lot into two independent lots, to encourage construction of second homes in back patios. This second law would require the owner to sign an affidavit stating that they have the intention to live at the home for at least 3 years.

What do you think are the biggest market implications of this law, if passed?