The Small Lot Subdivision is Back
For a while, it felt like the Small Lot Subdivision (SLS) was on life support. What started in 2005 as a revolutionary way to create fee-simple homeownership in Los Angeles had slowly become a victim of its own success, stifled by shrinking Floor Area Ratios (FAR) and an entitlement process that could drag on for years.
But the winds have shifted. Thanks to a massive wave of state-level legislation, the "Missing Middle" is finally getting the legal muscle it needs to punch through local red tape.
1. The Death of the "Discretionary" Delay (SB 684)
The biggest killer of small-scale housing wasn't the cost of lumber; it was the cost of time. SB 684 has effectively turned the subdivision process into a "by-right" ministerial act. For projects of 10 units or fewer on multi-family lots, the city can no longer force you into the public hearing gauntlet. If you meet the objective code standards, they must approve your map.
2. Guaranteed Bulk (SB 478)
SB 478 (The Housing Opportunity Act) set a state-wide floor for FAR. For projects between 3 and 10 units, cities are now prohibited from imposing an FAR of less than 1.5. This ensures you have the building volume to create livable, multi-story homes that buyers actually want to own.
3. The "Double Density" Stack (AB 1287)
AB 1287 introduced the "Double Bonus." By providing a slice of moderate-income housing in addition to very-low-income units, developers can now stack bonuses to achieve up to 100% density increases. This turns a standard triplex lot into a six-unit powerhouse.
4. Ending the Parking Pivot (AB 2097)
Parking requirements often meant the entire ground floor became a concrete garage. AB 2097 abolished minimum parking requirements for projects within a half-mile of a major transit stop, allowing for more creative site planning and more green space.
Having recently finished self-developing an SLS project under the old regime, I ask the universe, "Where were these reforms when I needed them!" (*shakes fists at the sky while falling to knees). I guess we are the ones that called for, and finally received, relief (you can thank me over a beer should you pursue one).
The era of "building by permission" is ending. By combining ministerial map approvals with guaranteed building bulk and density boosts, the path is clear for a new generation of Small Lot Subdivisions.