MORE SHOTS AND FIRED BACK NO OFFICERS WERE HURT. >>> NOW, TO CALIFORNIA'S HOUSING CRISIS, HOMEOWNERS ARE FINDING MORE OPTIONS TO SPLIT AND SELL THEIR BACKYARD THAT CAN LEAD TO MORE HOUSING, ACTUALLY. HOW A NEW LAW IS OPENING UP OPPORTUNITIES FOR FIXED INCOME RETIREES AND OTHERS AS WELL. >> Reporter: GALE AND HER HUSBAND BOUGHT THEIR PROPERTY IN THE LATE '70s. IT IS WHERE THEY WANT TO AGE IN PLACE. >> YOU KNOW, WE ALL NEED A PLACE TO GET AWAY AND BE ABLE TO RELAX AND DECOMPRESS. >> Reporter: THERE ARE TREES TO PRUNE. SO MANY THEY WANTED TO SPLIT THEIR LOT DECADES AGO. IT WAS NOT LEGAL UNTIL TWO YEARS AGO WHEN SB-9 GAVE HOMEOWNERS THE GREEN LIGHT TO SPLIT THEIR LOTS AND BUILD FOUR HOMES ON A SINGLE PARCEL. >> THIS WILL GIVE US A CHANCE TO BE ABLE TO PAY OFF, FINALLY, THE LAST PART OF OUR MORTGAGE. >> Reporter: THE CASH THEY ARE SET TO RECEIVE, GIVING UP 40% OF THEIR LOT WILL PROVIDE SECURITY AS HER HUSBAND IS BATTLING HEALTH ISSUES. >> THIS IS, THIS IS, THIS IS A SIMPLE WAY OF DOING IT. >> Reporter: BUT INSTEAD OF NAVIGATING ON THEIR OWN A DAUNTING MAZE AND PAYING THOUSANDS OF FEES. SHE FOUND A COMPANY TO HELP. THE CO-FOUNDER OF THE OAKLAND BASED START UP THAT DOES THE WORK TO SPLIT THE LOT AND SELLS IT TO THE HIGHEST BIDDER. >> WE FOCUS ON CITIES THAT WANT MORE HOUSING AND RECOGNIZE THE PROBLEM AND ARE GENERALLY FAVORABLE TO MISSING MIDDLE DEVELOPMENT. >> HOMEOWNERS GET MONEY IN EXCHANGE AND BUILDING STARTER HOMES FOR SALE ON THE NEWLY CREATED SPACE USING FINANCING WITH HOMEOWNERS BUYING THE UNITS FOR RENTAL INCOME OR A FAMILY MEMBER TO LIVE IN. >> THEY ARE CREATING A NEW OPTION FOR PEOPLE THAT WE VIEW AS A NEW VERSION OF THE AMERICAN DREAM. WHERE, PEOPLE IN THAT MIDDLE INCOME RANGE CAN AFFORD TO BUY A HOME IN CALIFORNIA AGAIN. >> Reporter: WORKING ON POLICY AT THE TURNER CENTER FOR HOUSING. HE SAYS IT IS TOO EARLY TO DETERMINE THE IMPACT THEY WILL HAVE ON THE HOUSING CRISIS. >> IF THE LEGISLATURE FOLLOWS WHAT THEY HAVE BEEN DOING, KEEP REFINING THE LEGISLATION EVERY YEAR, MAKING IT EASIER AND EASIER FOR MORE PEOPLE TO PURSUE LOT SPLITS WE WILL FIND THAT MORE UNITS ARE BEING CONSTRUCTED >> THEY BELIEVE THERE IS POTENTIAL TO CREATE MORE HOUSING IF LOT SPLIT LAWS ARE SIMPLIFIED WITHIN THE MORE THAN 500 LOCAL JURISDICTIONS ACROSS THE STATE. >> THEY ARE WORKING WITHIN THE BOUNDS OF SOMETHING THAT HAS NOT BEEN LEGAL FOR THE LAST 40 AND 50 YEARS. SO, THERE MIGHT BE HICCUPS ALONG THE WAY. >> Reporter: ANALYSIS FROM THE TURNER CENTER SHOWS THERE ARE 700,000 PARCELS IN CALIFORNIA THAT COULD BE SPLIT UNDER SB-9 AS THE STATE FACES SHORTAGE OF 3.5 MILLION HOMES. >> THE ANY HOUSING THAT IS BUILT IN CALIFORNIA IN PARTICULAR IN SANTA CLARA VALLEY AT THE MOMENT IT IS A I
