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    New South Bay Listings with Large Lots to Utilize Potential CA Legislation

    September 10, 2021

    By: Richard Haynes
    New South Bay

    The past couple of weeks have brought calls and texts from clients regarding the latest California Senate Bills to pass in the Senate and State Legislatures. If signed by Governor Newsom, these could become news laws throughout the state.

    SB9 and SB10 could be another transformative shift in California real estate law, much like we have seen recently regarding ADUs and statewide rent control. I have not studied the bills in depth like I have with other proposed bills, but let me give you a very brief synopsis from local papers.

    Senate Bill 9

    This bill could effectively eliminate R-1 zoning throughout the state, allowing for owners to build duplexes or complete lot splits.

    Read more about the bill here: Senate Bill 9

    Senate Bill 10

    This bill could allow cities to zone any parcel near transit or job-rich areas for up to 10-units of residential housing.

    Read more about the bill here: Senate Bill 10

    Governor Gavin Newsom has until October 10, 2021, to sign or veto the bill.

    I have read very little on the topic, and please, this post is not meant to be political, but to inform you of impacts (positively or negatively) to property throughout the state and locally here in the South Bay. You should read the text within each bill for full understanding and how it might affect you.

    If Governor Newsom comes out in support or signs the bill(s), then I will do a very deep dive into each bill.

    From what I am hearing, SB10 is less controversial because it is optional for cities. The SB9 bill would be mandatory, but it looks as if there might be carve out where to qualify, one would have to live at the residence for a certain period of time.

    I am going to stop there because truly, I have not yet done my homework.

    Be on the watch for the Governor’s decision as it could be another tectonic shift for California real estate.

    Three Intriguing Properties

    With all the information noted above, I want to highlight newly listed properties that might be able to take advantage of this new legislation.

    There are many more options than these three properties, but I settled on three “fresh” listings to have your imagination run wild and inspire you to read the bills. Try to figure out how they could be utilized under the proposed bills…especially SB9.

    • 4559 Marloma Drive, Rolling Hills Estates
      • 2 beds, 3 baths, 2,445 sq. ft., 15,473 sq. ft. lot
      • Asking Price: $1,750,000

    This listing might be an awkward 2-bedroom home, but the significant square footage of 2,445 could surely support a large four-bedroom home, or even five bedrooms. Under SB9, this large and relatively flat lot, has plenty of room to add another large structure at the back of the lot. Furthermore, does the bridal trail access from PV Drive North offer an easement for separate entry from the street? Could be a very intriguing property if the new legislation is signed by the Governor.

    • 2418 Ralston Lane, Redondo Beach
      • 4 beds, 3 baths, 2,378 sq. ft., 9,251 sq. ft. lot
      • Asking Price: $$1,885,000

    Another nicely sized home offering just under 2,400 square feet. If you failed to look closely, there are two separate structures, a turnkey 3-bedroom home and a 1-bedroom detached home with a kitchen and loft. This lot is also larger as the back portion has its neighbor’s backyard space. As a result, both buildings have huge yard spaces, parking, and room to expand further. SB9 would just serve to enhance what is already there.

    • 6260 Via Canada, Rancho Palos Verdes
      • 3 beds, 2 baths, 2,326 sq. ft., 17,362 sq. ft. lot
      • Asking Price: $1,745,000

    On the East side of the Hill is another interesting SB9 land play. If you look at the drone shots, this property is already set up like a classic “flag lot.” Just fill in the pool, subdivide the lot and add an easement for the driveway and voilà, build your second home on the front of the lot. Now, it is always easier said then done, but you can clearly see the vision and how the potential new law could enhance density on this lot from R-1 to R-2.


    Whether or not you agree or disagree with the proposed legislation, it is worth studying the proposed law to see how you can profit on a new purchase. And conversely, to see if it might affect a future purchase or property negatively.

    Maybe it is time to buy? Maybe it is time to sell?

    Even if the law is passed, these things take time, as in years, if not decades.

    So don’t make any rash decisions.

    I’ll watch for the latest developments and if SB9 or SB10 passes, you can bet there will be an in depth post coming your way.


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