In a major step forward for California’s housing market, the recently passed SB 684 opens the door for subdividing small lots into single-family fee simple homes in urban neighborhoods. This law promises to streamline the development process, cut costs, and provide more affordable housing options for entry-level buyers.

SB 684 allows owners of multifamily-zoned properties to subdivide their land into individual, fee-simple homes—not just condos—without the need for a homeowners association or CC&Rs. This will enable the creation of up to three single-family homes on lots that were previously limited to one or two. Additionally, it requires cities to allow a 30-unit-per-acre density standard for all multifamily zones, regardless of existing restrictions.

Perhaps most notably, the process is simplified: Lot splits are approved administratively within 60 days—without public hearings—and there are no discretionary reviews, making it quicker and easier for developers to get projects off the ground. Environmental reviews are waived for eligible properties, and local governments are prohibited from imposing excessive fees.

This law also aims to provide more affordable housing options. Homes built on subdivided lots will be smaller (under 1,750 square feet), thus making them more affordable for young families and professionals seeking housing. Property owners can also benefit financially, either by selling these homes or renting them out, significantly increasing the value of their land.

For developers, SB 684 represents an opportunity to optimize property value and take advantage of the new streamlined the approval process while also creating projects that align with California’s housing needs.

We’re excited about SB 684 and its ability to reshape the housing landscape. Let us know if you’d like help understanding your property’s potential.