All Forum Posts by: Felicia Nitu

SB-684 streamlines the approval process for small housing projects in San Diego, even in high-risk CEQA zones. However, strict environmental and safety regulations apply to ensure new developments are both resilient and compliant with state standards.

How SB-684 Works in High-Risk CEQA Zones


// Property & Lot Requirements
· SB-684 applies to properties up to 5 acres.
· Allows 2 to 10 residential units, each up to 1,750 sq. ft.
· A maximum of 10 lots per project, with each lot at least 600 sq. ft.

// Fire & Earthquake Safety
· No building allowed in Very High Fire Severity Zones, as designated by state fire maps or the Department of Forestry and Fire Protection.
· In earthquake fault zones, construction is restricted unless the project meets strict seismic safety standards.

// Flood Zone Restrictions
· Development in flood zones must follow floodplain management and federal flood control regulations.
· Projects in floodways require certification to ensure they don’t increase flood risks.


How SB-684 Benefits Real Estate Agents and Investors

If projects meet environmental safety standards, SB-684 still can create new development and sales opportunities in areas were zoning once restricted growth. More units mean more listings, more transactions, and higher returns. Agents and investors who understand these regulations can capitalize on small-lot development and turn overlooked properties into profitable projects.

Unlike ADUs, which must remain under the same property title, San Diego's SB-9 allows homeowners to sell newly built homes separately. This creates a major opportunity for property owners to develop and sell, adding new inventory to the market.

How SB-9 Unlocks Sales Potential

// Separate Ownership

· Homes built under SB-9 can be sold as individual legal parcels.
· ADUs must remain part of the main property and cannot be sold separately.

// More Development Options

· SB-9 allows lot subdivision, creating up to 4 independent units (2 per lot) or a duplex (if no lot split), plus ADUs/JADUs.
· Ideal for homeowners looking to maximize property value through direct sales.

// Key Requirements

· Each new parcel must be at least 1,200 square feet and no smaller than 40% of the original lot.
· Homeowners must live on-site for at least 3 years after the lot split.
· Must follow local zoning rules, including 4-foot minimum setbacks.
· Tenant protections apply. Homes under rent control or affordability restrictions cannot be demolished or altered.

What does this mean for real estate agents? More listings, more sales, and new opportunities to help homeowners maximize their property's value.

Why?

San Diego's SB-9 requires homeowners to live on the property for at least 3 years after an urban lot split, unless they qualify for an exemption.

If you're an investor or a homeowner looking for flexibility, this rule could LIMIT your ability to sell or rent out the new units right away.

To move forward with a lot split, homeowners must sign an affidavit stating they will live in one of the units as their primary residence.

The only EXCEPTIONS? Community land trusts and qualified nonprofit corporations, which can split and sell without living on-site.

Hello Ryan! Yes, SB 684 has a lot of restrictions, but it’s meant to help with lot splits. There could still be some opportunities for new housing, and hopefully, the law will also be eased for single-family properties in the future.

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Ever wondered what truly separates a TIC from a condo? Understanding TIC vs. Condo Ownership just got easier! While both involve shared spaces, the way ownership works is entirely different, and it can impact your rights, control, and future flexibility.

Who Really Owns What?

// Shared Ownership, Different Rules
TIC Owners: Hold fractional shares of the entire property, but no one owns a specific unit outright. No right of survivorship. If an owner passes away, their share goes to their estate.
Condo Owners: Own their units exclusively while sharing common spaces. The HOA governs those areas and may assign exclusive rights to amenities like parking or pool.

// Differences in Control & Management
TIC: All owners collectively manage the property, often requiring group decisions on maintenance and sales.
Condo: An HOA enforces rules, collects fees, and oversees shared spaces, reducing direct owner control.

// Which One is Right for You?
TIC offers lower entry costs and flexibility but comes with shared risks and complexities. Condo ownership provides clear property rights but means living under HOA rules. Understanding these differences can help buyers make the right choice.

TICs and condos offer distinct opportunities for agents. TICs appeal to buyers seeking lower-cost entry into competitive markets, while condos attract buyers looking for property rights. Agents who understand these differences can better guide clients, increase transactions, and unlock more sales opportunities.

In San Francisco, SB-423 eliminates the 311-neighborhood notification requirement for projects with 2 or more units, removing a major limitation for developers. Instead of facing neighborhood opposition, builders now notify Native American tribes,

How SB-423 Speeds Up Development 

// No More Neighborhood Delays
· Developers avoid local opposition and political roadblocks.

// Tribal Notification Process

· Builders must notify Native American tribes instead of local communities.
· Tribal reviews take up to 6 months, but the process stays more predictable. 

// Faster, Smoother Approvals

· Fewer objections increase approval rates and reduce red tape.
· Faster timelines bring more housing to the market without local interference.

How SB-423 Benefits Real Estate Agents and Developers

SB-423 removes a key barrier to residential development, allowing agents and developers to move projects forward with fewer delays. With faster approvals, more housing hits the market, creating more listings, more transactions, and bigger opportunities.

SB-684 makes it easier to develop up to 10 units on vacant lots in single-family zones without needing a zoning change. It applies to urban lots under 5 acres, setting clear size and spacing rules to keep new housing functional and efficient.

How SB-684Property Works 

// Lot & Unit Size Requirements

· The lot must be vacant and in a single-family zone.
· Each lot must be at least 600 square feet.
· New residential units cannot exceed 1,750 square feet each. 

// Setbacks & Spacing

· A minimum 4-foot setback is required from side and rear property lines.

// Tenant Protection & Restrictions

· If a home on the lot had tenants in the past 5 years, SB-684 still applies, but you cannot demolish or alter the existing structure.

How does SB-684 Benefit Real Estate Agents and Investors?

SB-684 creates new development opportunities, turning vacant lots into high-value listings. Agents can close more deals, sell more units, and earn bigger commissions, all without large-lot requirements or rezoning hurdles. It’s a powerful way to help clients build and sell in single-family zones.

Hi Jay, the affordable housing requirement can definitely be a dealbreaker for some projects. And you're right, those timelines are often misleading since the real delays come from back-and-forth revisions after submission. Still, at least this is a step toward streamlining the process. Hopefully, it actually plays out as intended.

AB 1033 allows ADUs to be sold as condominiums under specific conditions, creating new pathways for homeownership.

Properties eligible for this must meet certain criteria. If a qualified nonprofit builds the ADU, it can be sold separately from the main home. Additionally, if there is a recorded tenancy agreement, the ADU can be sold as an independent unit.

More ways for Real Estate Agents to benefit from AB 1033

// New Listing Opportunities:

• More properties to list and sell as ADUs gain condo status

• Ability to represent both the primary home and ADU as separate sales

• Potential to attract buyers looking for affordable entry-level ownership
  

// Investment Consultant Services:

• Helping clients understand how to legally separate and sell ADUs

• Advising property owners on maximizing value through ADU sales

• Connecting clients with lenders and legal experts for ADU transactions
  

// Business Development:

• Becoming a preferred resource for ADU-to-condo conversions

• Leveraging AB 1033 knowledge to attract new clients and listings