SB9 in Los Altos Hills

Los Altos Hills earns a D grade for SB9 implementation. This grade signals a city that has largely failed to facilitate SB9 housing development. Investors should expect significant barriers to approval and little to no SB9-driven growth in the near term.

Los Altos Hills adopted an urgency ordinance in 2021 that imposed income restrictions on SB9 units. The town enforces restrictive standards across the entire jurisdiction, including strict setbacks and design controls that limit the feasibility of SB9 projects. The ordinance is not standard; it adds income-based eligibility requirements and other constraints that go beyond state SB9 mandates.

Despite four SB9 applications submitted in 2022, none were approved. After 2022, no further applications were filed through 2025, indicating a complete stall in SB9 activity. The city’s 2021 urgency ordinance requiring income restrictions on SB9 units created a significant barrier to approvals. These restrictions likely discouraged applicants and contributed to the zero approvals and absence of new applications. The town-wide restrictive standards further limited the ability to develop SB9 projects. There is no charter city litigation affecting SB9 in Los Altos Hills.

The California Department of Housing and Community Development (HCD) issued an enforcement letter in January 2026 finding Los Altos Hills non-compliant with SB9 and Accessory Dwelling Unit (ADU) laws. The letter specifically cited the 2021 urgency ordinance’s income restrictions as a violation of state law. This enforcement action confirms the city’s failure to meet SB9 requirements and puts pressure on Los Altos Hills to revise its ordinance to comply with state housing mandates.

Investors should avoid Los Altos Hills for SB9 projects at this time. The city’s zero approval rate and flat application trajectory demonstrate a hostile environment for SB9 development. The income restrictions and restrictive standards effectively block SB9 housing production. The recent HCD enforcement letter signals ongoing legal and regulatory uncertainty. Until Los Altos Hills removes illegal barriers and begins approving SB9 applications, this market is not viable for SB9 investment. For the grading methodology, see the SB9 City Guide post.