The Altadena freeze: what SB 1090 stops and where starter homes still work
SB 1090 freezes new SB 684 and SB 1123 starter home filings in Altadena ZIPs 91001 and 91003 until 2030. Who is grandfathered, and why January 1 matters.
October 24, 2026
Updated October 24, 2026.
On September 30, 2026, the Governor signed SB 1090 (Pérez) as Chapter 1006, Statutes of 2026. It is an urgency statute, so it took effect that day. It pauses the starter home lot split path in Altadena's two ZIP Codes while families who lost homes in the Eaton Fire rebuild. Here is what changed, what did not, and where the path still works.
What is frozen, and for how long
SB 684 (2023) and SB 1123 (2024) created a ministerial path to split a qualifying lot into as many as 10 parcels and build as many as 10 homes, with a 60 day decision clock (Government Code Sections 66499.41 and 65852.28). SB 1090 turns that path off for a housing development or map in ZIP Code 91001 or 91003 if the application is submitted on or after October 1, 2026. The freeze runs until January 1, 2030, when the statewide versions of both sections return. Nothing changes anywhere else in California.
Who is grandfathered
The intent language says the moratorium is prospective only. The operative text adds conditions that are easy to miss:
- A development application or preliminary application must have been submitted in writing before October 1, 2026.
- A complete application must follow within 180 days after October 1, 2026. By my count that is March 30, 2027.
- If the County finds it incomplete, the missing items are due within 90 days of its written notice, or the application expires.
Projects that are 100% affordable, deed restricted and sponsored by a community land trust or qualifying nonprofit are also exempt. If you filed before October 1, calendar the 180 day deadline and confirm with your land use attorney that your filing counts.
What still works in Altadena
SB 1090 amends only the two starter home sections. It does not change the rules for rebuilding a home, for ADUs, or for SB 9 duplexes and lot splits. The County's Eaton Fire interim ordinance lets a like-for-like rebuild grow by up to 10% or 200 square feet, whichever is greater, and drops the covered parking requirement for rebuilds. Parcels in very high fire hazard severity zones are also subject to a 2025 executive order on SB 9, so check your parcel's zone and the current County rules before planning a split.
Why the Legislature did it
The findings cite "predatory development practices" after the January 2025 Eaton Fire and a gap in protection: Altadena was devastated, yet it is not covered by SB 684's own carve out for very high fire severity areas, and parts of it fall outside the Governor's 2025 executive order. The stated aim is to give residents time to rebuild without investor pressure. Some local builders argued the pause limits owners' own options, and that debate is fair. These are people's homes, and anyone working in Altadena should respect what the community asked for.
Everywhere else, January 1 matters
Outside 91001 and 91003, the path is unchanged today. I walked through it in Issue 6, the SB 1123 backyard stack. SB 1116 (Chapter 808) changes it for applications received on or after January 1, 2027: a 1.25 FAR floor regardless of unit count, height measured in feet rather than floors, front setbacks capped at 10 feet, smaller parcels on multifamily lots, and a new location test in place of "substantially surrounded" by urban uses. AB 2601 (Chapter 955) makes the map and the homes eligible for concurrent processing. A December filing is reviewed under today's rules, a January filing under the new ones. Most changes loosen standards, but the location test is new, so a site could gain or lose eligibility. Run your parcel both ways with your land use attorney before December 31.
An illustrative example
Round numbers, illustrative only, not a real property or a quote: a vacant single-family lot elsewhere in LA County, eight for-sale starter homes of about 1,200 square feet.
| Line item (illustrative) | Amount |
|---|---|
| Land | $1,200,000 |
| Hard costs (9,600 sq ft at $250) | $2,400,000 |
| Soft costs, fees, interest | $400,000 |
| Total cost | $4,000,000 |
| Construction loan at 75% of cost | $3,000,000 |
| Developer equity | $1,000,000 |
| Sales (8 homes at $650,000) | $5,200,000 |
| Selling costs (about 5%) | ($260,000) |
| Profit before tax | $940,000 |
That is about 23% on cost. The same eight homes on an unfiled lot in 91001 or 91003 are off this path until 2030.
How I'd finance it
If you are rebuilding your own home in Altadena, a construction loan on the rebuild is the core tool, sized around your budget, your builder and what insurance covers. For small developers elsewhere in LA County, I size construction loans up to 75% of cost. Starter homes for sale go on a for-sale construction loan repaid from closings. Rentals are usually limited by income at 1.20x DSCR, sized at 6.5% on a 30 year amortization, and the perm is sized the same way to take out the construction loan. See how we work with LA developers. Not legal advice; confirm with your land use attorney.
Trevor Damyan, President, Commercial Lending Solutions
Sources
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