California Governor Signed SB 1116 for Housing
The new law expands developer rules to encourage the creation of more starter homes across California.
Updated on Sept. 30, 2026 in Residential
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Governor Gavin Newsom signed SB 1116 into law, updating regulations to accelerate the development of starter homes. The legislation builds upon the 2023 starter home law by removing restrictive barriers for multifamily and single-family projects.
Why it matters
The measure addresses specific implementation challenges and regulatory hurdles that developers faced under the previous starter home law. By streamlining requirements, the state aims to increase housing production across California.
SB 1116 eliminates the previous five-acre size limit for qualifying multifamily sites and prohibits cities from capping building stories. Developers must now adhere to front setback limits of 10 feet or less.
The players
Gavin Newsom
He is the current Governor of California who signed the legislation into law.
California Department of Housing and Community Development
This state agency oversees the implementation of housing laws and has the authority to void local ordinances for noncompliance.
The details
The law broadens infill standards and allows development on vacant parcels that feature abandoned or untenantable structures. It mandates that local governments interpret these rules liberally to maximize housing production statewide.
Timeline
SB 684 was enacted in 2023.
An assembly committee released its analysis of the bill in June 2026.
Governor Newsom signed SB 1116 into law on September 30, 2026.
Cities must submit implementing ordinances within 60 days of the enactment.
Culture Shift
This legislation represents a persistent shift toward state-level intervention in local zoning to address the ongoing housing affordability crisis. It reflects a broader movement to prioritize infill development over traditional suburban land-use patterns.
Residents may see an increase in new, smaller-scale housing developments within their neighborhoods as the state removes previous site-size restrictions. These changes are intended to provide more housing options by enabling development on previously overlooked or vacant lots.
The takeaway
The law requires cities to adopt a liberal interpretation of land-use standards to facilitate faster housing construction. Property owners and developers should monitor local municipal updates to understand how these new setbacks and lot size rules apply to specific parcels.
What happens next
Local cities are required to submit their implementing ordinances to the California Department of Housing and Community Development within 60 days of the September 30, 2026, signing.
Further reading
For additional context on local development trends, visit Residential.
Source note: This article includes information reported by HousingWire.
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Should the state have the power to override local zoning laws to increase housing production?
