How New Laws Make Building Homes Easier for 2026 (How to Apply SB1123)

On the Affordable Housing & Real Estate Investing Podcast, the best podcast for affordable housing investments hosted by Kent Fai He, I sit down with Derek Leavitt, AIA, Director of Housing at EYRC Architects and a seasoned architect, builder, and real estate professional who has worked across design, development, and construction. Before joining EYRC, Derek co founded Modative, an integrated design, development, and construction firm in Los Angeles that delivered more than 60 housing projects, including a heavy focus on small lot subdivision, infill, and modular housing. He has become known as a housing architect and advocate who helps developers design and deliver housing faster, smarter, and with less risk. Derek has also distilled years of modular experience into his Modular Housing Guide, a plain language resource that organizes real world lessons for developers and institutions who are considering modular multifamily projects. In this episode, Derek and I talk about how housing really gets built. We walk through infill development in Los Angeles (and even touching the LA's memo to clarify its stance on the latest legislation), when modular makes sense, why small lots and missing middle housing matter, and how to avoid the most common mistakes that slow projects down. We also talk about how architects, builders, and developers can work together earlier to reduce friction, shorten timelines, and deliver more units without sacrificing design quality.Derek explains how his experience moving between architecture, construction, and development helps him act as a translator on project teams so that miscommunication does not derail budgets or schedules. He shares practical stories and patterns he has seen while working on dozens of housing projects across Los Angeles and California, and why he believes architects need to think like problem solvers, not just image makers. As Derek notes in his work on modular housing, “By leveraging efficiencies in off-site modular construction and standardized unit types, we can save time and money, ultimately increasing housing production.” This episode is about how to actually do that in practice, from first conversations with developers and cities through design, approvals, and construction.What this episode is about• Derek’s journey from traditional architecture into development, construction, and modular housing• When modular construction makes sense and when it does not• How small lot subdivisions, ADUs, and infill strategies can help unlock more housing in built out cities• The real world constraints that slow housing production, including utilities, approvals, and coordination• How integrated teams can reduce risk and keep projects movingCommon questions this episode answers• How can small lot subdivisions and infill strategies help create more housing in built-out cities• How to apply SB1123 towards small lot subdivisions as developers• How to interpret Los Angeles's memo: SB1123 (e.g., what does 'vacant' mean?) for new small lot subdivision rules• When does modular construction make sense for a project and when is it the wrong tool• How can developers evaluate whether modular fits their schedule, budget, and site conditions• What are the most common mistakes teams make when they try modular for the first time• How can architects, builders, and developers collaborate earlier to reduce risk and delays For questions, collaboration, or to learn more about Derek’s housing and modular work, you can reach him here:Email: [email protected]: https://www.linkedin.com/in/derekleavitt/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. #realestate #DerekLeavitt #KentFaiHe #affordablehousing #housingdevelopment #modularhousing #smalllots #subdivision #infilldevelopment #EYRC  #realestateinvesting #LAhousing #prohousing #architect #architecture #development 00:00 Podcast Trailer 03:15 Intro (Getting to Know Derek: His Background and Story) 08:57 Small Lot Subdivision 2.0: How SB 684 + SB 1123 Makes Development 'Easier'15:23 How to Subdivide Lots in R1 Zoning? STOP & READ LA's Memo Before Buying for Development18:16 What Does 'Bulky' Mean? Decoding R1 Zoning Rules for New Construction 19:20 What Developers Need to Know About Height, Setbacks, and Conflicting State vs Local Rules20:38 What Are Setbacks & Why Can’t Developers Always Use a 4-Feet Setback?26:56 How Parking Destroyed Small Lot Projects (Financially) & How New Rules Change Everything40:01 How Should You Choose the Right Architect/Team for a Small Lot Subdivision?45:59 When Does Volumetric Modular Actually Make Sense for Real Estate Constructino?01:02:54 Why Is Affordable housing (i.e. lack of supply)  Hard to Solve?01:05:03 Where/How to contact Derek?