SB9 in Pasadena

Pasadena receives a grade of D for its implementation of Senate Bill 9 (SB9). This grade reflects the city’s minimal progress in approving SB9 projects, signaling significant challenges for developers and investors interested in utilizing California’s duplex and lot-split provisions. Although Pasadena’s ordinance complies with state requirements, the practical outcome is a near absence of approvals, indicating that substantial barriers remain in place. This low grade highlights that Pasadena is not currently fostering an environment conducive to SB9-driven housing development.

As a charter city, Pasadena has adopted a standard SB9 compliance ordinance that aligns closely with state law. The city’s regulations do not impose additional restrictions beyond those mandated by SB9. Setbacks, minimum lot sizes, design standards, and parking requirements adhere to typical SB9 guidelines without significant tightening or relaxation. On paper, Pasadena’s ordinance is straightforward and does not create unique procedural or regulatory hurdles. This means that the ordinance itself should not be a barrier to SB9 development, as it maintains the baseline state requirements without adding complexity.

Despite having a compliant ordinance, Pasadena has seen almost no SB9 activity. The submission of only two applications in 2023, with no approvals, and no other applications in the surrounding years, points to a lack of practical implementation. This flat trajectory suggests that factors beyond the written ordinance are limiting SB9 development. Possible explanations include administrative resistance within city departments, unclear or inefficient processing procedures, or local opposition that discourages applicants. Pasadena’s status as a charter city has not resulted in litigation or formal challenges that might explain the inactivity, unlike some other charter cities. The absence of any upward trend in applications or approvals indicates that the local market and regulatory environment are not currently supportive of SB9 projects. For investors, this means that Pasadena does not offer a reliable or predictable pathway for SB9 development at this time.

There is no record of enforcement action by the California Department of Housing and Community Development (HCD) against Pasadena related to SB9 compliance. The lack of enforcement suggests that Pasadena is not in violation of state SB9 requirements on paper. However, the absence of enforcement does not translate into active facilitation or encouragement of SB9 projects. Pasadena remains compliant but inactive in terms of approving SB9 applications.

Investors should exercise caution and generally avoid pursuing SB9 projects in Pasadena at this time. The city’s zero approval rate and flat application trajectory over four years demonstrate that SB9 is not a viable development strategy in this market. The risk of sunk costs, delays, and administrative obstacles is high given the lack of approvals despite a compliant ordinance. Until Pasadena shows concrete progress in processing and approving SB9 applications, investors are advised to seek opportunities in other cities with more active and supportive SB9 implementation. Pasadena’s current environment does not support efficient or predictable SB9 development. For the grading methodology, see the SB9 City Guide post.