No affordability requirement if you build new units per SB-9

[Felicia Nitu]

SB-9 provides a valuable opportunity for property owners to build new housing without affordability restrictions. This means new units can be developed without the requirement to designate them as affordable housing, making projects more flexible and financially viable.

Restrictions on RSO and Older Units

If a property includes Rent Stabilization Ordinance (RSO) units or housing built before 1978, demolition is not allowed under SB-9. These protections ensure existing rent-controlled housing remains intact.

Ellis Act Considerations

For landlords who previously withdrew units from the rental market using the Ellis Act, an Urban Lot Split is still possible, as long as withdrawn RSO units remain at least 70% intact. If these units are demolished or significantly altered, an SB-9 lot split won’t be allowed.

How Agents & Investors Benefit

For real estate agents, SB-9 opens new opportunities to market properties with development potential, making listings more attractive to buyers seeking value-add opportunities. Investors can capitalize on SB-9 by adding new housing units, increasing rental income, and maximizing property value, all without affordability restrictions.

By understanding these rules, agents and investors can identify prime opportunities and make informed decisions on SB-9 projects.