Victory for Charter Beach Cities in Ruling on SB 9

Mercedes Shaffer l Broker l Published in AOA Magazine

In a landmark decision, a Superior Court judge has dealt a significant blow to state control over local development.  The ruling deemed a California law allowing multifamily buildings on single-family lots unconstitutional.  SB 9, enacted in January 2022, permitted the splitting of single-family lots into two, each accommodating two homes, without necessitating a public process. 

This ruling was a victory for the charter cities of Redondo Beach, Carson, Torrance, Whittier and Del Mar and sets a precedent for other beach communities like Santa Monica, Huntington Beach and Newport Beach that are opposed to Sacramento imposing laws that will create higher population density.

Advocates of SB 9, including affordable housing proponents and developers, saw it as a solution to California's housing crisis.  However, opponents, particularly those advocating for controlled growth, foresaw its potential to disrupt single-family neighborhoods.

In a detailed 12-page judgment, Los Angeles County Superior Court Judge Curtis A. Kin articulated that while the state can supersede local laws for matters of "statewide concern," SB 9 lacked a clear connection to affordable housing.  He stated, "The court finds that SB 9 is neither reasonably related to ensuring access to affordable housing nor narrowly tailored to avoid unnecessary interference in local governments."  As such, Kin ruled SB 9 unconstitutional, citing a violation of the 'home rule' doctrine.

The decision has been hailed as a monumental victory for charter cities across California because it signifies a triumph over what many perceive as government overreach from Sacramento.  In beach communities like Redondo Beach, the ruling comes as a relief.  Cities such as Redondo Beach and Huntington Beach share a desire to maintain their laid-back beach atmosphere without succumbing to overcrowding.  SB 9 threatened to disrupt this balance, potentially transforming tranquil neighborhoods into high-density areas.

For developers and investors eyeing profits from lot splits, the ruling delivers a setback.  The hope of making use of SB 9's provisions for housing development and financial gain is dashed. However, for residents concerned about preserving the character and charm of their communities, it is a welcomed outcome.

Despite differing opinions on SB 9, its demise in the courtroom represents a win for all stakeholders.  It safeguards local autonomy in decision-making regarding development, ensuring that communities retain control over their housing landscape.  Moreover, it reaffirms the principle of home rule, preventing undue interference from state mandates that lack a clear nexus to the stated objective of addressing housing affordability.

In the ongoing struggle between government mandates and property rights, the recent victory in the courtroom over SB 9 resonates deeply with housing providers and property owners.  Just as the ruling defended the rights of charter cities to regulate their development, there's a parallel desire for similar victories in the realm of landlord-tenant laws.  Housing providers are forced to navigate burdensome regulations and bureaucratic hurdles imposed by government agencies, hindering their ability to efficiently manage properties and address housing needs.

Whether you support or oppose SB 9, the true triumph lies in affirming local autonomy and curbing government overreach.  This ruling is a call to action for further victories that protect property rights and foster an environment where housing providers can effectively serve their communities.

If you have questions about buying, selling or doing a 1031 exchange, CONTACT ME.  I can be reached at 714.330.9999, InvestingInTheOC@gmail.com, or you can visit my website at InvestingInTheOC.com.  I’m Mercedes Shaffer, a multifamily real estate agent with Real Broker, helping you build wealth one door at a time. DRE 02114448.