Empowering Homeowners: BuildCasa's Path to Profitable Lot Splitting
Navigating SB 9 with BuildCasa's Turnkey Approach
BuildCasa is a company designed to help homeowners navigate the complexity of lot splitting. They buy the extra yard space from homeowners, develop the lot, and pay the homeowner upon completion of the project.
More Housing Good? More Housing Bad?
In America, laws govern how we plan, implement, and design our neighborhoods. Zoning is the basis of what can get built where. Building codes protect the health, safety, and welfare of citizens. Planning and town boards ensure orderly neighborhood growth.
Since California’s ADU reform bill in 2016, 1 in 5 houses built as of 2022 are ADUs, resulting in over +80K ADUs permitted in California alone. That is enormous growth to the housing supply (even if not all are being used as additional housing). While the entire country has not unanimously adopted ADUs, you can’t deny the success of the law.
In 2022, Senate Bill 9 went into effect in California. SB 9 allows single family homeowners to split their lot and build up to 4 units total. Each split lot can contain up to 2 units. This is different from building an ADU. ADUs are accessory to the primary dwelling. This means that owners can’t sell the ADU as a standalone single-family home so it can only be rented.
SB 9’s adoption is slow, complex, and facing backlash. Just this week, an LA county judge ruled the bill unconstitutional in several charter cities.
Despite the headaches, several companies are springing up to help homeowners with this process, like BuildCasa.
Turnkey Development
BuildCasa conducts a feasibility study to ensure the lot is eligible and that any proposed structure will make a return for both the homeowner and BuildCasa. Once vetted, BuildCasa pays the homeowner a deposit and begins the long, arduous process of lot splitting, design, and construction. According to BuildCasa, homeowners can make up to $400K from the process.
Currently, they don’t serve as developers. They sell the lots to builders who will build, own, and resell or invest in the new units. BuildCasa is the facilitator. Their goal is to navigate the bureaucratic nightmare for homeowners. By getting their foot in the door with local municipalities and builders, BuildCasa hopes to replicate and scale the process for homeowners throughout California.
Success Stories
Unfortunately, it’s too early to see widespread implementation of SB 9, and completed projects are hard to find online. I’m optimistic that designers, architects, and builders will find creative solutions to this new bill. Only time will tell if the YIMBYs will win out on this one.