California Expanded Rules for Starter Home Development
New legislation removes site size limits and streamlines lot requirements to boost construction across the state.
Updated on Sept. 30, 2026 in Residential
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Governor Gavin Newsom has signed SB 1116 into law, expanding opportunities for starter home development by loosening land-use restrictions. The bill updates requirements for small-lot subdivisions to help address housing production barriers identified since 2023.
Why it matters
The legislation removes regulatory hurdles that previously limited construction, aiming to accelerate the development of affordable starter homes. By addressing implementation issues from the state's 2023 starter home law, this measure seeks to standardize development rules across local jurisdictions.
The law removes the previous five-acre limit on qualifying multifamily sites and caps front setbacks at 10 feet. Cities are required to submit implementing ordinances to the California Department of Housing and Community Development within 60 days.
The players
Governor Gavin Newsom
The current Governor of California who signed SB 1116 to accelerate housing development.
California Department of Housing and Community Development
The state agency responsible for overseeing housing policy and ensuring local compliance with development laws.
The details
SB 1116 broadens the criteria for eligible projects by allowing development on vacant parcels that include abandoned or untenantable structures. It also prohibits local governments from restricting building stories, mandating that ordinances be interpreted liberally to maximize housing production. These changes replace the narrower urban-surroundings test found in the 2023 starter home law with broader infill standards to streamline project approvals.
Timeline
2023: California enacted SB 684, the initial starter home law.
June 2026: The Assembly committee released its analysis of the bill.
September 30, 2026: Governor Newsom signed SB 1116 into law.
Within 60 days of enactment: Cities must submit implementing ordinances to the state department.
The Home Front
This legislation marks a significant expansion of the state’s infill development strategy established by SB 684. It signals a shift toward stricter state oversight of local zoning to prioritize the creation of smaller, high-density residential properties.
Homeowners in California should monitor upcoming local zoning updates as cities bring their building codes into compliance with these new lot-size rules. If you are considering property development or redevelopment, consult with a licensed architect to understand how the new setback and lot-size standards apply to your parcel.
The takeaway
The law streamlines development by lowering minimum lot sizes and removing previous site-area caps. Residents should watch for notices from their local city planning office regarding updated ordinances that reflect these new state-mandated standards.
Further reading
Learn more about the latest housing policies and construction guidelines in the California Residential section.
Source note: This article includes information reported by HousingWire.
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