California Expanded Rules for Starter Home Development
New legislation removes site size limits and streamlines density requirements for builders in California.
Updated on Sept. 30, 2026 in Residential
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Should the state have the power to override local zoning laws to increase housing production?
Governor Gavin Newsom signed SB 1116 into law, creating broader standards for the development of small-lot starter homes. The measure eases regulatory barriers by adjusting lot size minimums and removing site size caps on multifamily projects across the state.
Why it matters
This legislation aims to bypass local regulatory hurdles that hindered the impact of the 2023 starter home law. By mandating that cities interpret rules to maximize production, the state seeks to increase the supply of housing units on previously underutilized urban parcels.
The law eliminates the previous five-acre site limit for multifamily projects and mandates a maximum front setback of 10 feet. Cities are now required to submit their implementing ordinances to the California Department of Housing and Community Development within 60 days.
The players
Gavin Newsom
The Governor of California who signed SB 1116 into law to expand residential development authority.
California Department of Housing and Community Development
The state agency responsible for overseeing local compliance and enforcing housing density regulations.
The details
SB 1116 updates the framework established by the 2023 starter home law by replacing narrow urban-surroundings tests with expanded infill standards. It allows builders to utilize vacant parcels that include abandoned structures and restricts local governments from imposing height limits on new buildings. These changes are designed to lower construction costs and increase the feasibility of developing high-density starter homes on small lots.
Timeline
2023: The original starter home law, SB 684, was enacted.
June 2026: The Assembly committee released its analysis of the bill.
September 30, 2026: Governor Gavin Newsom signed SB 1116 into law.
Within 60 days of September 30, 2026: Cities must submit implementing ordinances to the state.
Money Landscape
This legislation follows a multi-year effort to address California's housing supply crisis through aggressive state-level intervention in local zoning. It marks a significant shift away from the legacy of restrictive local control that has historically limited small-scale residential development.
Homeowners and prospective buyers in California may see an increase in local starter home inventory as developers gain access to previously restricted land. Residents should monitor local planning department updates over the next two months to see how their city adjusts its residential zoning ordinances.
The takeaway
SB 1116 prioritizes housing production by stripping away local setbacks and site size barriers that previously limited starter home projects. Residents should check their city's meeting agendas for updates on local zoning changes resulting from this new state mandate.
Further reading
For more on the state's efforts to increase housing density, see the Residential section.
Live Poll
Should the state have the power to override local zoning laws to increase housing production?
