On the Affordable Housing & Real Estate Investing Podcast, the best podcast for affordable housing investments hosted by Kent Fai He, I sit down with Luiza 'Lu' Kapreliants and Joseph Snyder to break down what SB 1123 and small lot subdivision really look like in practice in Los Angeles.

This episode is a reality check for developers who think state law alone guarantees density. Lu and Joseph explain where SB1123 helps, where local zoning or objective requirements still apply, and where developers get tripped up when they do not read city memos carefully.

They walk through the real tension between state rules and local requirements, especially around height limits, setbacks, frontage, and design standards. While SB 1123 overrides certain local controls, cities can still enforce others, which makes early site analysis critical.

Lu and Joseph also explain how remainder lots and flag lot style configurations are actually being used on real sites using a REAL life example in our conversation.

These strategies can unlock additional units, but they come with technical requirements that many developers miss, including access, frontage connections, and grading constraints.

Their feasibility studies include real cost ranges that help developers underwrite projects confidently. Construction costs, soft costs, and total per square foot numbers are discussed so you can quickly assess whether a small lot deal make sense financially.

This episode is essential listening for developers, architects, and investors who want to apply SB1123 without making expensive mistakes. Knowing the law is not enough. Understanding how cities interpret and apply it... is what determines success.

Why This Episode Matters

Many developers hear about SB 1123 and assume density is automatic. This episode explains why that assumption is dangerous. Lu and Joseph show:

• What SB 1123 actually allows?
• What local rules still apply?
• Why LA’s SB 1123 memo matters?
• How remainder lots really work?
• Where projects fail during plan check?
• How costs impact feasibility?

This episode saves developers time and money while getting straight to the point with tactical steps that you can apply today, regardless of your experience level.

Common Questions This Episode Answers

• How does SB 1123 work in practice?
• What zoning rules still apply under SB 1123?
• Can cities block SB 1123 projects?
• What is a remainder lot?
• How to satisfy the 'vacant' home requirement for SB1123?
• What is a flag lot configuration?
• How much do small lot subdivision development projects really cost to build?

If you have questions or want to connect with Lu and Joseph, you can reach them via email (PLEASE let them know you heard about them from our Affordable Housing podcast to support our mission);
Lu - [email protected]
Joseph - [email protected]

Please DM any questions or content suggestions to Kent Fai He, affordable housing developer, educator, and host of the Affordable Housing & Real Estate Investing Podcast, the best podcast for affordable housing investments in the United States.

Disclaimer: This content is for informational and entertainment purposes only. It is not legal, financial, investment, insurance, or tax advice. It is not an offer or solicitation for any investments. Always do your own research before making investment decisions.

#AffordableHousing #LuKapreliants #JosephSnyder #SB1123 #KentFaiHe #SmallLotSubdivision #LosAngelesHousing #RealEstateDevelopment #UrbanInfill #ZoningRules #SB9 #AffordableHousingPodcast

00:00 Podcast Trailer 
04:15 Intro (Getting to Know Lu and Joseph: Their Background and Story) 
08:37 What is the Opportunity for SB-9 Lot Split Projects Across California: 50,000+ ?!
19:31 How to Subdivide a Single Family Lot into 10 Lots - Real Life 1st Draft Example!
20:40 How To Design Around City-Specific Rules for Small Lot Subdivisions - Los Angeles SB1123 Example
24:17 Step-by-Step Overview For Small Lot Subdivisions: How to Work with Architects & Engineers
28:26 How Fast Can an SB 9 or SB1123 Project Be Built (Optimistic Scenario)
29:43 What Does Ministerial Approval Mean? How Does The Process Work?
31:35  What Kind of Pushback Can You Expect Even With SB 1123? 
35:52 What is the Opportunity for SB-9 Lot Split Projects Across California: 50,000+ ?!
45:28 How 8–10 Units Can Make Expensive Infrastructure for Development Financially Feasible 
46:32 What does it Cost to Build an SB 1123 Project - How to Find the Right Lot?!
47:50 From $250 to $300/Sq Ft: How Much Does It Cost to Build Small Lot Subdivisions?
49:42 Lu - Why Is Affordable housing (i.e. lack of supply)  Hard to Solve?
51:12  Joseph - Why Is Affordable housing (i.e. lack of supply)  Hard to Solve? 
53:33 Where/How to contact Joseph? 
54:28 Where/How to contact Lu?