SB9 in Hermosa Beach

Hermosa Beach receives a D grade for its implementation of Senate Bill 9 (SB9). This grade reflects a highly restrictive development environment where SB9 activity is minimal to nonexistent. The city’s policies and local attitudes create significant obstacles for small-lot housing projects, including duplexes and lot splits that SB9 is designed to promote. As a result, developers and investors should anticipate considerable challenges in pursuing SB9-driven projects within Hermosa Beach. The D grade signals that the city’s regulatory framework and community priorities currently limit the potential for meaningful infill housing growth under SB9.

Hermosa Beach’s SB9 ordinance reflects the characteristics of a small coastal community with a development culture focused on preserving neighborhood character rather than encouraging housing expansion. The ordinance enforces stringent design standards, including strict setback requirements and parking mandates that significantly constrain the feasibility of SB9 projects. Unlike more permissive jurisdictions, Hermosa Beach does not offer streamlined approval processes or relaxed minimum lot size requirements that would facilitate duplexes or lot splits. These regulatory barriers effectively suppress SB9 uptake by increasing project complexity, cost, and uncertainty. The ordinance’s restrictive provisions run counter to the state’s intent to promote small-scale infill housing through SB9, limiting the city’s ability to respond to housing demand pressures.

From 2022 through 2025, Hermosa Beach saw virtually no SB9 activity. The single application filed in 2024 was ultimately not approved, reflecting strong local resistance to SB9 projects. This resistance stems from both the city’s restrictive policies and community opposition to increased density and changes in neighborhood character. Hermosa Beach’s development environment remains focused on preservation rather than expansion, which has kept SB9-driven housing development near zero. Although the trajectory is marked as strong growth due to the 2024 application, this has not resulted in any approvals or meaningful shifts in development patterns. The city is not a charter city and has no known litigation related to SB9 compliance. Overall, the market context suggests that Hermosa Beach remains a challenging environment for SB9 projects, with limited near-term prospects for growth despite some nascent interest.

There is no record of any enforcement action by the California Department of Housing and Community Development (HCD) against Hermosa Beach related to SB9 compliance. The absence of enforcement indicates that the city has not been formally challenged or penalized for its restrictive SB9 policies. However, this lack of enforcement does not imply facilitation of SB9 projects but rather reflects the city’s low level of SB9 activity and its cautious approach to implementation.

Investors should exercise caution when considering SB9-driven development opportunities in Hermosa Beach. The city’s restrictive ordinance, combined with a zero percent approval rate from 2022 to 2025, indicates a highly unfavorable environment for SB9 projects. While the 2024 application signals some emerging interest, entrenched local opposition and stringent regulations create significant barriers to project approval. Near-term investments based on SB9 in Hermosa Beach carry high risk due to the city’s focus on preserving existing neighborhood character and its reluctance to embrace increased density. Investors seeking SB9 opportunities would be better served targeting cities with more permissive policies, demonstrated approval activity, and a supportive regulatory environment. For the grading methodology, see the SB9 City Guide post.