New Law Encourages Apartment Developments & Multi-Family Housing

 

California SB 10 took effect on January 1, 2022.  The new state-wide bill impacts vacant land with the potential for apartment and multi-family developments throughout San Diego.  The bill authorizes local governments to zone most parcels (there are a few exclusions) for up to 10 units of residential density when the parcel is located in a transit-rich area, a jobs-rich area, or an urban infill site.  Just as apartment rent control laws took a while to be processed by the market, it is expected that this law and how local regulators implement it will take some time to sort out.  A copy of the bill can be found here. New Law Encourages Apartment Developments & Multi-Family Housing 

Once the local regulators weigh in to which sites qualify, then the brokerage, appraisal, and banking community will then sort out how this impacts highest and best use, property valuations, and underwriting rules for new commercial loans and the commercial appraisals that will back these loans.