Senate Bills 9 & 10: Help On the Horizon for Tahoe-Truckee's Housing Crisis
Last month we discussed the new moratorium on Short Term Rental applications happening first in Placer County and now, here in the Town of Truckee. Highlighting the ongoing California housing crisis we are seeing various attempts to mitigate this by placing restrictions on second-home buyers and increasing government influence in other areas.
California passed two new Senate bills allowing for the rezoning of traditionally single-family-zoned neighborhoods. Senate Bill 9 (SB-9) effectively requires cities and counties throughout the state to approve development proposal applications that seek to change single-family zoning to allow for multiple dwellings on one property. Senate Bill 10 (SB-10) would authorize a local government to adopt an ordinance to zone any parcel for up to 10 units of residential density per parcel, at a height specified in the ordinance, if the parcel is located in a transit-rich area or an urban infill site. It would override HOA agreements and voter initiatives that prohibited or limited such development in those areas.
How SB-9 and SB-10 could affect the Lake Tahoe and Truckee real estate market?
Passed by Gov. Gavin Newsom in September, the new bills would allow for more multi-family units on land once zoned for single-family homes. Also, the bills would mitigate obstacles for builders and streamline the construction process via bypassing the often lengthy and costly review process.
With the passage of SB-9 and SB-10, we now await guidance from the Tahoe Regional Planning Agency as to how this new legislation fits into the building policies for communities within the basin. We will keep you informed with the latest information.
An article in the Tahoe Daily Tribune, the TRPA’s Public Information Officer Jeff Cowen, said, “We know that updating some of Tahoe’s density standards can really help with workforce and ‘missing middle’ housing as well as reducing greenhouse gas emissions.”
What this might mean for Lake Tahoe and Truckee is that where traditionally there have been restrictions surrounding single-family zoning to remain lots with one home plus another “accessory dwelling” with a maximum of 500 square feet, any property owner can now add a second home to a single lot, split the lot entirely in two, or split the property in two and add duplexes to each. Further development of a lot is still subject to current coverage rules which will limit growth.
There are of course exemptions to this new law. No more than 25% of the walls of a currently standing dwelling may be demolished, nor does it allow for the demolition of affordable low-income or rent-controlled housing. Any historical landmarks or historical areas are exempt, as are farmlands, wetlands, and any properties at high-risk of flood or fire.
Will this law put a dent in California’s housing shortage?
From a September 20th, 2021 Mercury News article, according to a recent study by the Terner Center for Housing Innovation at UC Berkeley, it is estimated that just 5.4% of the state’s current single-family lots have the potential to be developed under SB 9. The bill provides financial feasibility for up to 714,000 new housing units. While that’s only a fraction of the 3.5 million new housing units Gov. Newsom wants to see built by 2025, SB-9 might be a step in the right direction.
What is Senate Bill 10?
Senate Bill 10 eases the local government’s ability to rezoning process .The new legislation also allows cities to bypass lengthy review requirements under the California Environmental Quality Act in an attempt to help reduce costs and the time it takes for projects to be approved.
Much like the advent of the new restrictions on STR’s, the new bills aim to address the ongoing housing crisis throughout Truckee-Tahoe by providing easier access to the construction of new housing. However, a few major points of contention remain. The new bills effectively put an end to single-family zoning in California, bypass the California Environmental Quality Act, and do not properly address affordability issues. There is a loss of due-process when local governance is taken out of the equation which could impact emergency service routes, existence for adequate parking, and the affordability piece.
Find out more about how the new SB-9 bill could affect you here, and you can read the full legislature here.
