If you own a lot in any of the City's single-family or multifamily zones, you may be eligible to build up to 10 homes and sell them individually, all by-right!

The Starter Home Revitalization Act (SHRA), established by Senate Bills 684 (Caballero, 2023) and 1123 (Caballero, 2024), makes it easier to build and sell up to 10 homes on a residentially zoned lot -- including single-family and multifamily sites -- regardless of what is allowed in the underlying zone. If a site is already developed, a property owner may designate existing house(s) or structure(s) as a "remainder parcel" and develop up to 10 for-sale units on the rest of the site (if it meets the eligibility criteria).

"[The SHRA] enables the construction of more homes for sale on a single parcel of land [...] increasing the supply of small, low-cost homes for sale."

-Senator Caballero

If a property meets the criteria under the SHRA, both the building permit and subdivision applications shall be processed ministerially, without the need for a public hearing.

What the SHRA Allows

The SHRA allows design flexibility, not restricting developments to a specific residential type (e.g., detached single dwelling units, duplexes, townhomes, multiple dwelling units, etc.). While projects must meet the applicable standards of the underlying zone, those standards may only apply as long as they allow developments consistent with the SHRA. Once the SHRA's thresholds are met, eligible projects may be developed notwithstanding local restrictions.

The following graphics illustrate development potential under the SHRA. These graphics are intended for informational purposes only and may not represent all available development scenarios.

Requirements

Eligibility criteria include:

All Residential Zones

• The existing parcel must be outside of the State Very High Fire Hazard Severity Zone
• The average floor area for any new housing units shall not exceed 1,750 habitable square feet

Please review Information Bulletin 414 for details about program eligibility and application processing.

More information about the use of remainder parcels and the types of residential development allowed under the SHRA can be found in the following California Department of Housing and Community Development (HCD) Letters of Technical Assistance:

• City of San Diego – Use of Remainder Parcels under the Starter Home Revitalization Act (SHRA) – Letter of Technical Assistance
• City of Los Angeles – Starter Home Revitalization Act (SHRA) – Letter of Technical Assistance

Note: This page is not a substitute for, and may not always match, the current version of the regulations. Applicants should always refer to the California Government Code and San Diego Municipal Code when submitting development permit applications.