Q: What’s the difference between SB 9, and SB 1123?
A: SB 9 allows two primary homes (and often ADUs) on a single-family lot, with ministerial approval and no public hearing.
SB 1123 is statewide and enables up to 10 units on qualifying single-family lots.

Q: Can I demolish an existing home to qualify for SB 1123?
A: Yes, at least in LA — Los Angeles’ new implementation memo allows demolition to build up to ten units under SB 1123. Other cities will likely follow suit as they align their codes.

Q: What’s the ideal lot size for an SB 9 project?
A: In Los Angeles, look for 6,000 sq ft or larger — but the usable backyard matters more than the total area. Additions and garages can eat up buildable space.

Q: Can rear lots be land-locked, or do they need street frontage?
A: You need legal access, but it doesn’t have to front the street. An easement usually satisfies the requirement.

Q: Can an HOA block an SB 9 lot split?
A: Yes. CC&Rs and HOA rules are private contracts that supersede state law if they prohibit splitting. Always verify early in due diligence.

Q: Why do some lenders or appraisers value ADUs so low?
A: That was common before 2021 when ADUs were new. Appraisers now understand them and use income comps; four-unit configurations are increasingly accepted.

Q: Can SB 9 projects really outperform multifamily on returns?
A: Yes. If you plan and build efficiently, cash-on-cash returns and ROI can beat multifamily, thanks to faster permitting and strong rent comps. DSCR loans allow refinancing that often returns all initial capital while staying cash-flow positive.

Q: Typical cap rates?
A: Stabilized projects can reach 6.5–7 percent in many markets; in high-cost areas, smart site selection can underwrite double-digit returns.

Q: Why do approvals vary so much between cities?
A: Every new law requires staff retraining. Some cities embrace it — Alameda City approved a four-unit map in 42 days, San Jose and San Diego are improving, and even San Francisco has issued small-lot guides. Pick jurisdictions that are investing in implementation.

Q: Who helps when a city doesn’t understand the law?
A: The California Department of Housing & Community Development (HCD) is your friend. They issue technical letters and enforcement memos that can override local misinterpretation.

Q: Will permitting get easier?
A: Yes — cleanup legislation is underway to simplify SB 9 and SB 1123 just as ADU rules were streamlined. Expect faster paths and clearer checklists.

Q: Is there any workaround for the three-year owner-occupancy rule?
A: Some jurisdictions accept tenant-signed affidavits, and others waive it for certain projects. Always check your local policy before closing.

Q: Can I build under SB 9 now and lot-split later?
A: Yes — you can construct two units first and subdivide afterward if the SB 9 lot-split provision is still active.

Q: Has anything changed for Junior ADUs?
A: Yes. AB 1154 removed the owner-occupancy requirement for Junior ADUs, making it easier to pair them with SB 9 units on R-1 lots.

Q: How do utilities work for multi-unit SB 9 or 1123 sites?
A: Each split parcel needs its own main connections. LADWP requires separate service lines, and capacity reviews can take 90 days or more — budget and schedule accordingly.

Q: Is modular or prefab viable for these projects?
A: Yes. It works best when access, zoning, and factory-built approvals align. Not every site pencils, but it’s a growing option.

Q:Where can I check if my property qualifies for SB 9?
A: Use the free Riechers Engineering SB 9 Eligibility Tool — it screens zoning, wetlands, and fire zones instantly.

Q:Any communities for developers doing this kind of work?
A: Join Micro Development Mastery, our practitioner network for small-lot buildersand investors. It’s a place to share lessons and deal structures.

Q:Who can help with lending or capital for my project?
A: SCIP focuses on private credit for experienced infill developers — we finance bridge, construction, and refinance loans for SB 9 and similar projects.