A stairway to heaven? Maybe. Higher cash flow for California landlords, it can be as simple as changing the number of enclosed stairs needed in small spaces multi-family buildings.
That’s the debate surrounding Assembly Bill 835. California’s fire marshal is finalizing a report to comply with the bill and potentially reform real estate investment across the state.
Why stairwell rules are important for small landlords
According to the current International Construction Code, which is followed in some capacity, buildings above three units in most U.S. jurisdictions are required to have at least two enclosed stairwells, which form the core of any apartment building. Assembly Bill 835 seeks to allow single-stair multifamily buildings with more than three units.
The proposed ruling is certainly not unique in America. Many jurisdictions, including Seattle and New York, allow stairwells for single-family homes (maximum of six units). However, it is a financial game-changer for small landlords California YIMBY’s website explains, reducing construction costs, creating more livable square footage and making apartment buildings possible are built on smaller, narrower and oddly shaped plots. More apartments mean more cash flow.
The author of AB 835, Assemblymember Alex Lee, sees the bill as opening up more sites rather than a dramatic rewrite of the code. Lee told Defeating Mitpitas:
“I see AB 835 as a first step in overhauling California’s building codes for stairwells. If California were to allow single-stair apartments above three stories, we could open up previously undevelopable properties and create more high-density housing. Single-stair apartments also allow for more efficient use of building spaces, along with a greater variety of housing units.”
In practice, eliminating an additional staircase could create more usable outdoor space, provide much-needed additional parking, and facilitate higher rents and lower tenant turnover.
The opposition
The Pew Charities estimates that one-stair, four- to six-unit buildings with relatively small floor plans cost about 6% to 13% less to build than comparable two-stair designs, in part because they are on narrower lots and use simpler cores. In addition, Pew states that safety is not compromised by eliminating the second stage.
Jim Pauley, president of the National Fire Protection Association however, stated that safety data could not be viewed uniform, saying: “While the report celebrates the outcome of modern safety codes, it could also be used to open the door wider to circumvent the process she developed,” noting that well-funded fire departments in New York and Seattle, both of which allow a single exit staircase in buildings up to four stories under their respective codes, allow for much faster response times than elsewhere in the country.
The fire brigade unions have taken a harder line. The International Association of Firefighters (IAFF) has launched campaigns in several US states and cities, including Los Angeles and Connecticut, arguing that single-exit designs “compromise escape routes and complicate firefighters’ response.” In short, they argue that affordability should not come before safety.
“We all want to see more affordable housing built, but not at the expense of human lives,” general president Edward Kelly said on the IAFF website. “One stairwell means one entrance and one exit when the fire brigade goes upstairs And families trying to come down is a recipe for disaster.”
His feelings were repeated by IAFF Secretary General-Treasurer Frank Líma, who stated:
“Removing a second stair as an emergency exit – a critical life safety feature – is not an acceptable trade-off for additional housing. That’s the bottom line. The proponents of this ‘only one way out’ design have excessive confidence on fire alarms and sprinklers to perform flawlessly. And that is a big gamble on public safety.”
More technology, building codes and safer units
Proponents of single-stair multifamily buildings point to higher safety standards and building codes that have led to fewer fires. “New fire safety standards in our building codes have made new buildings much safer overall,” said a Los Angeles council member Nithya Raman said in support of considering the change.
As with many issues, there is also talk of building code reform ultimately become political: Supporters of an outright ban on gas stoves – often the cause of fires inside apartment buildings– proponents of electrification have risen against the oil and gas industry, backed by the Trump administration.
Other states are following suit
The one stage argument is is adopted elsewhere. Colorado, Pennsylvania, Rhode Island, Minnesota, Oregon, Virginia and Washington state have already implemented some form of single-tier surcharge for buildings over three stories, with some restrictions related to building size, according to Pew.
The urge for a greater housing supply
The 2027 edition of the International Building Code is expected Unpleasant ratify the single staircase for apartments up to four floors, under certain conditions defined boundaries, according to Boston Indicators and other sources. The push to increase housing supply and defuse the affordability crisis by expanding the number of permitted units in small multifamily buildings has been a central argument for Zoning reform advocateswho would like to put an end to single-family neighborhoods.
As single-family homes become scarcer, multi-family homes become increasingly important
The start of single-family homes reaches a period of 11 months low in mid-2025 amid higher financing and construction costs, underscoring the importance of maximizing multifamily housing. Conversely, multifamily starts rose 30.6% in June compared to the previous year, with all regions except the Midwest reporting stronger gains for multifamily, according to KPMG Economicswhich summarizes data from the National Association of Home Builders.
Final Thoughts: Practical Strategies for Landlords to Increase Cash Flow in Small Multifamily Buildings
Even if building code reform is successful in advocating for single stairs in small multifamily buildings, retrofitting apartment buildings accordingly is usually far more expensive than it’s worth.
However, there are more practical ways to increase cash flow with your existing multifamily properties. These include:
- To add ADUs: If the zoning plan and space permit, adding an ADU on your existing plot is a relatively simple way to generate more cash flow without getting involved in major construction work.
- Take advantage of it “missing center”housing reforms: Zoning changes in some U.S. cities have legalized duplexes, triplexes and fourplexes in dense residential neighborhoods, often eliminating parking minimums to allow for more units.
- Implement a classic added value strategy: Upgrading kitchens and bathrooms is a proven way to increase rents, especially for landlords with sublet buildings in rapidly appreciating neighborhoods.
- Utilities upgrades and separation: Where practicable, adding washrooms, upgrading parking facilities, implementing a ratio utility billing system (RUBS), and partial metering systems where permitted are all practical, relatively simple ways to increase cash flow.
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