A pro-housing group sued Gov. Newsom on Wednesday over his decision to restrict SB 9, a housing law that allows owners to parcel up their properties, in the wake of the January fires.

YIMBY Law, a San Francisco-based organization, alleges that Newsom's executive order over the summer allowing cities to suspend SB 9 is a constitutional overreach and violates the California Emergency Services Act, which states that emergency powers can only be used to mitigate ongoing disasters, not potential ones.

It's the latest chapter in the fight over how much density should be allowed in the rebuilding of fire-stricken communities such as Altadena and Pacific Palisades.

Proponents of SB 9, a 2021 state law that allows homeowners to split single-family lots into as many as four properties, claim it's a valuable tool to address the housing crisis by adding density. They also claim it's a resource for fire victims hoping to sell their properties, since land that can be subdivided is more valuable than a single-family lot.

Critics claim that the density afforded by SB 9 would destroy the character of single-family neighborhoods, while also slowing down evacuations in fire-prone areas by packing in more homes and residents.

Newsom sided with the critics in July, signing an executive order allowing L.A.-area governments to suspend SB 9. Many took him up on the offer immediately, including Mayor Bass, as well as officials in Pasadena, Malibu and L.A. County. All are named in the lawsuit along with Gov. Newsom.

"SB 9 adds housing and flexibility," said YIMBY Law executive director Sonja Trauss. "We want everyone to be able to rebuild, but suspending SB 9 devalues those properties."

Trauss said many fire victims are underinsured and currently deciding whether it's financially possible to rebuild. For many, a helpful option would be to use SB 9 to divide the lot into two, then sell one and use the money to build on the other.

She added that the move seemed out of step with Gov. Newsom's other initiatives in the wake of the fires, including streamlining the permitting process for single-family homes and ADUs.

"If you want to build a 3,000-square-foot house and a 700-square-foot ADU, it's easier. But if you want to build two homes as a duplex, it's harder," Trauss said. "It's baffling."

A spokesperson for Newsom defended the move in a statement.

"We will not allow outside groups — even longstanding allies — to attack the Palisades, and communities in the highest fire risk areas throughout L.A. County, or undermine local flexibility after the horror of these fires," said spokesperson Tara Gallegos. "Our obligation is to survivors, full stop. We will not negotiate that away. If defending them requires drawing firm lines, we will draw them."

The suit was originally supposed to be filed on Monday, Dec. 8, but was delayed after potential movement from Newsom's office to restore SB 9 in fire areas, a spokesperson for YIMBY Law said.

An agreement was never reached, and the suit was filed on Wednesday.

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