Part of the job of being a Realtor is keeping up with new laws that could affect their clients, their business, and the real estate industry as a whole. At a Silicon Valley Association of Realtors meeting this month, real estate attorney Harry Price with Price Law Firm in Los Altos shared some 2025 California laws aimed at increasing housing production and penalizing local governments that deliberately delay housing projects.
One such law, Senate Bill 450, clarifies the definition of "affordable housing" and streamlines the approval process for projects under Senate Bill 9. SB 9, also known as the California Housing Opportunity and More Efficiency (HOME) Act, allow duplexes and lot splits on single-family residential lots. The new law now requires local governments to approve or deny SB 9 project applications within 60 days and prohibits local governments from imposing excessive restrictions. Denial of projects is limited to only public health and safety grounds.
Sb 684, a 2023 law, allows the subdivision of multi-family zoned parcels of five acres or less to up to 10 lots. SB 1123 is a new law that further allows the subdivision of vacant single-family residential lots of less than 1.5 acres within single-family zones, clearing the path for the construction of more affordable "starter" homes.
California has passed more laws favoring accessory dwelling units. Assembly Bill 2533 expands the statewide "amnesty program" for unpermitted ADUs and junior ADUs built before Jan. 1, 2020. Property owners of these unpermitted units can now legalize them through a simplified permit process without facing excessive fees. The units just need to meet a list of basic health and safety standards which cities must provide.
AB 2553 eliminates minimum parking requirements and reduces vehicular traffic impact fees for new developments near transit stops, allowing for more housing production. "The state has loosened the area of these geographic developments and said they're not going to be as restrictive anymore, so you'll find that properties located close to these transit stops will be allowed to build more with fewer parking requirements," said Price. "Transit stops on El Camino Real and San Antonio Road could see more future developments."
SB 1037 gives the Attorney General power to impose civil penalties on local governments that violate certain state housing laws, such as failing to adopt a compliant housing element or ignoring state laws that require streamlined ministerial approval of certain housing projects. AB 2023 shifts the legal burden of proof onto local governments when the California Housing and Community Development determines that their housing element is non-compliant.
"In effect, we want to enable a city to get their General Plan in order and if they don't, the Attorney General has the power to penalize these cities," explained Price.
AB 2992 requires a buyer's agent and buyer to sign an agreement before the buyer makes an offer on a property. The purpose of this law is to help consumers have a clearer understanding of the services provided by Realtors and have more choice in selecting an agent who can help them through a complex transaction. The buyer representation agreement cannot last longer than three months except for agreements entered into between a real estate broker and a corporation, limited liability company, or partnership.
Price encourages real estate industry professionals and consumers to stay informed of these new laws. Understanding them can drive more informed decisions, avoid potential pitfalls, take advantage of new opportunities, and lead to smoother real estate transactions for all parties involved.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
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