SB9 in Santa Monica

Santa Monica earns a B grade for SB9 implementation. This indicates a city with growing but still limited activity under SB9, offering cautious optimism for investors. The city shows a clear upward trajectory in applications and approvals, signaling increasing openness to SB9 projects. However, the total volume remains modest, reflecting some remaining barriers or local constraints. Investors should see Santa Monica as a market with potential but not yet fully unlocked.

Santa Monica is a charter city with a standard SB9 compliance ordinance. The local rules do not impose unusual restrictions beyond state SB9 requirements. The ordinance permits lot splits and duplex development on qualifying parcels, with typical setback and design standards consistent with state law. Parking requirements are moderate but do not significantly hinder SB9 projects. The city’s progressive housing policy supports SB9 as part of broader efforts to increase housing supply.

Santa Monica saw no SB9 applications or approvals in 2022, reflecting initial caution or lack of awareness. Activity began in 2023 with two applications and full approvals, demonstrating early adoption. In 2024, applications more than doubled to five, but approvals only reached two, indicating some projects faced challenges or delays. The absence of applications in 2025 is notable but may reflect project timing or market conditions rather than policy barriers. As a charter city, Santa Monica was not subject to litigation suppressing SB9 activity, allowing steady policy implementation. The city’s progressive stance and outreach likely contributed to the strong growth trajectory despite modest absolute numbers.

No enforcement action by the California Department of Housing and Community Development (HCD) is on record for Santa Monica. The city remains in compliance with SB9 requirements without any formal enforcement or lawsuits.

Santa Monica is a buy market for investors focused on SB9 opportunities. The city’s steady increase in applications and approvals shows growing confidence in SB9 development. The absence of enforcement issues and the city’s progressive housing policies reduce regulatory risk. While total volume remains low, the strong growth trajectory suggests this market will continue to open up. Investors should prioritize early engagement and local expertise to navigate design and approval nuances. Santa Monica offers a solid foundation for SB9 investment with upside potential as the market matures. For the grading methodology, see the SB9 City Guide post.