S
an Antonio Road in Palo Alto on March 13, 2024. Photo by Devin Roberts.
The Silicon Valley Association of Realtors (SILVAR) provides weekly updates on local housing data and trends. This week, they explain new California real estate laws aimed at boosting housing inventory and streamlining construction and purchases.
Several laws are now in effect to increase housing production. Senate Bill 450 makes it easier for homeowners to build duplexes on single-family lots by closing loopholes that allowed cities to block such projects. The law also limits local governments' ability to impose excessive restrictions or delays, requiring them to approve or deny SB 9 projects within 60 days.
Assembly Bill 2553 expands the area around transit corridors where reduced vehicular traffic impact fees and minimum parking requirements are waived, encouraging denser development near high-transit areas. This could lead to more developments in Palo Alto and Mountain View along El Camino Real and San Antonio Road.
Tougher penalties for non-compliance with state housing laws have been implemented under Senate Bill 1037. The law gives the California attorney general power to impose civil penalties on cities that fail to adopt compliant housing elements or ignore state laws requiring streamlined approval of certain projects. This could lead to monthly fines of $10,000 to $50,000 for non-compliant municipalities.
California has also amended laws limiting local government control over Accessory Dwelling Units (ADUs). AB 2533 expands the statewide amnesty program, allowing property owners to legalize unpermitted ADUs without facing penalties or excessive fees. This could significantly boost state-mandated housing goals.
A new law requires buyers and their agents to sign a buyer-broker representation agreement before making an offer on a property. This aims to ensure transparency and standardization in the homebuying process, as required by industry standards cemented into law through California Assembly Bill 2992.
