How New California & Berkeley Housing Laws Can Help You Build Generational Wealth
Developing your property is one of the most cost-efficient ways to create generational wealth for your family. With a wave of new California state housing bills and local Berkeley ordinances, homeowners now have unprecedented opportunities to add residential units, increase property value, and generate long-term income streams.
This article summarizes the key updates from Todd Talk Part 1, 2, and 3, including state mandates like SB 9, AB 68, AB 881, AB 2533, AB 1033 and local measures like Berkeley’s Amnesty Program and the Middle Housing Ordinance. You’ll also learn practical steps for planning your own project.
California State Laws Opening Doors for Homeowners
Over the past few years, California has passed a series of housing laws designed to increase housing supply and affordability:
AB 68, AB 881, SB 13 – These are examples of legislation that allow for residential property development beyond the main house, including up to three units on a single-family parcel: one main residence, one Accessory Dwelling Unit (ADU), and one Junior ADU (JADU).
SB 9 – Permits property owners in single-family zones to create duplexes or subdivide lots, with faster, no-hearing approvals. This means you could potentially build up to four units (a duplex on each new parcel).
AB 2533 – Simplifies the process of legalizing existing unpermitted ADUs built before January 1, 2020.
AB 1033 – Enables homeowners to sell an ADU separately from the main house, if the local jurisdiction adopts an ordinance to allow it.
These bills make it easier than ever for Bay Area homeowners to maximize their property’s potential.
Berkeley’s Local Ordinances: A Generational Wealth Opportunity
Berkeley has gone even further, passing local ordinances that give property owners powerful new tools:
Amnesty Program (2025–2028) – Homeowners can now legalize unpermitted ADUs or JADUs through a confidential, non-punitive program. Free confidential consultations are available with city staff to guide you through the process.
ADU Condo Conversion Ordinance (pending) – Soon, Berkeley may allow condo conversion of ADUs, letting you sell them independently.
Middle Housing Ordinance (passed June 26, 2025) – On November 1, 2025, Berkeley property owners with lots 5,000 sq ft or larger can build up to 5–7 units by right (not including ADUs). Projects that comply with height, setback, and open space standards can be approved over the counter—saving both time and money. This does not include any properties located within the hillside overlay district.
Rezoning Changes – Berkeley has eliminated single-family zoning in most areas, merging the R-1 and R-1A zones into the R-2 zone. Duplexes, triplexes, cottage courts, and small multifamily buildings are now allowed by right in most residential zones.
For property owners in Berkeley, these changes represent a rare chance to increase income, provide housing for families, or create shared ownership opportunities—all while contributing to the city’s housing goals.
What This Means for You: Middle Housing Ordinance & Developing Your Property
If you own a 5,000 sq ft+ lot in Berkeley, you now have the ability to build duplexes, triplexes, townhomes, and small multi-unit housing types that were once prohibited.
Streamlined approvals
No more lengthy discretionary reviews or public hearings.
Flexibility
Rent out units, sell them, or create shared ownership models.
Sustainability
Ordinance requires at least 40% permeable open space, keeping green areas intact.
And if your lot is smaller than 5,000 sq ft, you still have options. You can:
Add an ADU and/or JADU
Expand your existing home by lifting and adding a first story or creating a second-level addition
Explore duplex options under SB 9
How to Plan Your Project
Whether you’re considering an ADU, duplex, or Middle Housing development, first define your needs and goals:
Do you want rental income, a home for family, or a shared living model?
Once you’ve done that, here’s how we can help. We’ll:
Confirm your lot size and zoning – These are the foundation of your development plan.
Develop schematic alternative plans – This will show you the possibilities for placement and configuration of your project.
Confirm code conformance with the city – Once you land on a schematic plan, we’ll confirm that the plans conform with code.
Develop the planning set and shepherd the entitlement process – Berkeley staff now offer clearer, more objective checklists and design standards. An experienced architect can help you design to code while maximizing your return.
Design your project and manage all aspects of the building permit application submittal process – We guide you through all aspects of the process.
As Todd Jersey explains in Todd Talk Part 3, we can guide you through all aspects of this process and help you design a beautiful, high-performing project that will meet your needs and goals.
Building Generational Wealth Starts Now
Between California’s statewide housing bills and Berkeley’s bold local ordinances, Bay Area homeowners are uniquely positioned to build long-term financial security through property development. Whether it’s legalizing an existing ADU, subdividing your lot, or pursuing a Missing Middle Housing project, the opportunity to create generational wealth has never been greater.
If you’re ready to explore what’s possible for your property, reach out to Todd Jersey by filling out this form. We look forward to connecting with you.
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