Key facts
- California Governor Gavin Newsom signed legislation to make it easier to build small, for-sale homes.
- Senate Bill 1116 strengthens the state's 2023 Starter Home Revitalization Act.
- The law provides a ministerial approval path for qualifying small-lot subdivisions and housing projects of up to 10 homes.
- SB 1116 removes a five-acre cap on qualifying multifamily sites and broadens the definition of vacant single-family parcels.
- Minimum lot sizes can be 480 square feet in multifamily zones and 960 square feet in single-family zones.
- Local governments must submit implementing ordinances to the California Department of Housing and Community Development within 60 days.
Governor Gavin Newsom has signed legislation aimed at facilitating the construction of small, for-sale homes in California. Senate Bill 1116, which passed both chambers of the state legislature without opposition, enhances the existing 2023 Starter Home Revitalization Act by providing a streamlined, ministerial approval process for qualifying small-lot subdivisions and housing projects comprising up to 10 homes.
The new law addresses early implementation challenges encountered with the previous starter home legislation, SB 684. According to Senator Anna Caballero, the bill's sponsor, local interpretations and regulatory hurdles had previously limited the effectiveness of the starter home law. SB 1116 expands the types of sites eligible for streamlined approval and modifies local standards that could reduce the number of homes a project can yield.
Supporters of the bill, including California YIMBY, argue that revisions to local height, setback, lot-size, and procedural rules will make smaller, more affordable starter homes more feasible. However, opponents, such as local government and neighborhood groups, have expressed concerns that the measure further curtails local zoning authority and could lead to increased density in areas with limited infrastructure.
Key provisions of SB 1116 include the removal of a five-acre cap on qualifying multifamily sites and a broadened definition of vacant single-family parcels to include sites with abandoned or untenantable structures. The bill also replaces a narrow urban-surroundings test with more expansive infill standards. While cities can still regulate building height in feet, they are prohibited from separately limiting the number of stories. The measure also restricts front setbacks to a maximum of 10 feet and generally disallows internal setbacks between newly created parcels unless required by the state building code. Minimum lot sizes are permitted to be as small as 480 square feet in multifamily zones and 960 square feet in single-family zones.
SB 1116 mandates that local governments interpret the law liberally to maximize housing production. Cities are required to submit their implementing ordinances to the California Department of Housing and Community Development within 60 days. The department has the authority to flag noncompliant provisions, and ordinances may become void if not submitted or if cities fail to respond to the department's findings.