SB9 in Anaheim

Anaheim receives a grade of D, reflecting extremely limited SB9 activity despite having a permanent ordinance in place. For investors, this grade signals a market where SB9 development is effectively stalled. The city has not approved any SB9 projects through 2025, indicating significant barriers to practical implementation or lack of local support for these types of housing conversions and splits.

Anaheim adopted a permanent SB9 ordinance that complies with the state’s minimum requirements. The ordinance does not impose any major restrictions beyond what state law mandates. This means standard setbacks, no additional lot size minimums beyond state limits, and no unique design or parking requirements that would significantly hinder SB9 projects. The ordinance is straightforward and aligns with state law without adding local barriers.

Despite having a compliant ordinance, Anaheim has seen virtually no SB9 approvals. All three applications submitted in 2022 failed to receive approval, and no further applications were filed in subsequent years through 2025. This flat trajectory suggests either administrative reluctance, procedural delays, or local opposition preventing projects from moving forward. There is no record of charter city litigation affecting SB9 implementation in Anaheim, so legal challenges are not a factor. The lack of approvals despite a permissive ordinance points to implementation issues rather than regulatory barriers on paper.

There is no record of any enforcement action by the California Department of Housing and Community Development (HCD) against Anaheim regarding SB9 compliance. The city remains under no formal enforcement or legal pressure to change its practices.

Investors should avoid relying on SB9 as a near-term development strategy in Anaheim. The zero approval rate and absence of applications after 2022 indicate that the city’s permitting process or local conditions are not conducive to SB9 projects. While the ordinance meets state standards, the practical reality is that SB9 development is not happening. Investors should consider other markets with demonstrated SB9 activity or wait for signs of administrative change before committing resources here. For the grading methodology, see the SB9 City Guide post.