SB9 in Hayward

Hayward earns a C grade for SB9 implementation, indicating moderate but declining activity with limited approvals. Investors should approach this market cautiously, as the city shows some willingness to process SB9 applications but has recently stalled approvals. The environment is neither strongly supportive nor entirely obstructive, resulting in a mixed risk profile for SB9-driven development.

Hayward’s SB9 ordinance is standard for an East Bay city. It allows for lot splits and duplex conversions consistent with state law. The ordinance includes typical setback requirements, minimum lot sizes, and design standards that do not impose unusual barriers. Parking requirements remain in place but are not excessively restrictive. Overall, the ordinance does not add significant hurdles beyond the state baseline.

In 2022, Hayward approved both SB9 applications submitted, reflecting initial compliance and some openness to SB9 projects. However, starting in 2023, the city approved no applications despite a rise in submissions to six. This pattern continued in 2024 with five applications and zero approvals. By 2025, no applications were filed, indicating a sharp decline in developer interest or confidence in the city’s SB9 process. The drop-off in approvals suggests that Hayward’s planning department or city council may have shifted toward a more cautious or restrictive interpretation of SB9 rules. There is no record of charter city litigation affecting Hayward, so the decline is likely due to local administrative decisions rather than legal barriers. The lack of approvals after 2022 has discouraged applicants, leading to the absence of filings in 2025.

There is no record of any enforcement action by the California Department of Housing and Community Development (HCD) against Hayward related to SB9 compliance. The city remains under no formal enforcement pressure.

Investors should take a wait-and-see approach in Hayward. The initial approvals in 2022 showed some potential, but the subsequent halt in approvals and drop in applications reveal a city that is not reliably processing SB9 projects. Without enforcement pressure or ordinance changes, the current environment is uncertain and likely to remain slow. Investors should monitor any shifts in city policy or staffing before committing to SB9 development in Hayward. For the grading methodology, see the SB9 City Guide post.