Governor Newsom Signs Bill to Expand Access to Townhomes, Condos
SB 1116 Strengthens the Starter Home Revitalization Act
“We’re creating more pathways to homeownership for California families”
Los Angeles – Today, California Governor Gavin Newsom signed into law SB 1116, a bill which strengthens the Starter Home Revitalization Act (SB 684 from 2023, and SB 1123 from 2024), and will lead to the construction of more for-sale townhomes and condominiums.
“There is nothing like seeing someone get the keys to their own home, the unforgettable excitement of achieving something once thought impossible,” said Senator Anna M. Caballero, author of SB 1116. “I’m proud to have authored this bill that will help more Californians achieve the dream, making it easier to build smaller houses, townhomes and condominiums that families can afford to own. I’m grateful to Governor Newsom, my legislative colleagues, and our coalition partners like California YIMBY for helping to make homeownership possible for California families.”
SB 1116 enables more starter homes to be built by increasing design flexibility, updating definitions, adding new reporting requirements, and making other improvements and technical clarifications.
“Many of California’s most cherished historic neighborhoods feature townhomes, bungalow courts, and other smaller, more affordable homes,” said Brian Hanlon, CEO of California YIMBY. “Decades ago, most cities zoned affordable homeownership out of existence, and now homeownership is at a near 4-decade low. By signing SB 1116 into law, Governor Newsom has substantially strengthened the Starter Home Revitalization Act, giving more Californians a shot at homeownership. Thanks to Governor Newsom and to Senator Anna Caballero for their leadership in making California more affordable for everyone.”
“Homeownership remains one of the most reliable ways families build wealth, strengthen local economies, and create stability for the next generation,” said Esmeralda Lopez, California State Director for Unidos US. “For too many Latino and working families in California, homeownership has become increasingly out of reach as housing costs rise and entry-level homes remain scarce. SB 1116 will help communities build more starter homes — including townhomes, small-lot homes and other entry-level options — by removing barriers and improving the approval process for smaller homeownership projects.”
“We need to build a new California Dream here in the Golden State, and the Starter Home Revitalization Act is doing just that,” said Jacob Pierce, Policy Associate, Abundant Housing LA. “By building on the successes of recent legislation, SB 1116 will lead to more homes to buy at prices everyday Californians can afford and in communities where they want to live.”
“California has the second-lowest homeownership rate in the country, and we have got to bring starter homes back,” said Noerena Limón, CEO of Casita Coalition. “SB 1116 recognizes that good housing policy often requires us to keep learning and improving as barriers emerge. We commend Senator Caballero, the Legislature, and Governor Newsom for continuing to fine-tune the Starter Home Revitalization Act and help translate its promise into attainable, neighborhood-scale homes. ”
The bill builds on California YIMBY’s earlier sponsored legislation, SB 684 (2023, Caballero), which fast-tracks the subdivision of urban lots into for-sale townhomes and condos, and SB 1123 (2024, Caballero), which expanded eligibility of these projects to single-family areas. The latest updates address limitations enacted by local jurisdictions that reduced the number of potential homes that could be built on these lots.