SB9 in San Jose

San Jose earns a B+ grade, signaling a city with growing but still limited SB9 activity. For investors, this means the market is opening up, but approvals remain relatively modest compared to applications. The city shows potential for increased SB9 development, making it a viable option for those willing to navigate a moderately active regulatory environment.

San Jose’s SB9 ordinance follows a standard framework consistent with state law. It allows for lot splits and duplex developments on single-family parcels without minimum lot size exceptions beyond state requirements. Setbacks and design standards are typical for Silicon Valley, with no extraordinary restrictions. Parking requirements align with standard local zoning, requiring at least one off-street parking space per unit unless otherwise exempted. The ordinance does not impose additional burdens beyond state SB9 mandates.

San Jose’s SB9 program began with moderate activity in 2022, with 11 applications and a strong approval rate of 45%. The following year saw a decline in approvals despite a similar number of applications, dropping to just one approval in 2023. However, 2024 marked a significant increase in applications, tripling to 33, though approvals only rose slightly to three. This suggests growing interest from property owners but continued cautious or slow approval processing by the city. No applications or approvals were recorded in 2025, which may reflect reporting delays or a temporary pause in filings. The city is not a charter city, so no litigation has suppressed SB9 activity. The trajectory is positive as the volume of applications increased substantially in 2024, indicating growing awareness and utilization of SB9 opportunities. The relatively low approval rate (17% overall) points to either stringent local review or procedural hurdles that limit the pace of conversions and splits.

There is no record of enforcement action by the California Department of Housing and Community Development against San Jose related to SB9 compliance. The city appears to be in good standing with state requirements.

San Jose represents a growing SB9 market with clear potential but notable challenges. The rising number of applications shows increasing interest, but the low approval rate signals that investors should expect a measured pace of project greenlighting. This is not a rapid-deployment environment but one where patient investors can find opportunities as the city’s program matures. Given the trajectory and regulatory stability, San Jose is a buy market for investors who can manage longer timelines and navigate local review processes effectively. For the grading methodology, see the SB9 City Guide post.