City of Agoura Hills

All You Need to Know About Building on Properties in Agoura Hills Under SB-9

Applying SB-9 for real estate projects in Agoura Hills City can be an effective strategy for homeowners to reduce a substantial part of their mortgage. With extra financial resources, you could add more units to generate rental income or accommodate family members while staying in your main residence. To ensure the success of an SB-9 project, begin by verifying your property's eligibility, familiarizing yourself with the regulations, and choosing the SB-9 option that offers the most financial benefit for your Agoura Hills City property.

What is SB-9 and how does it apply to the properties in Agoura Hills City?

What is SB-9?

SB-9 or Senate Bill 9, simplifies the approval process for specific housing initiatives in California. It instructs local authorities to expedite the endorsement of these projects using an alternative approach, avoiding the need for extensive environmental evaluations (CEQA), conditional use authorization, or similar discretionary approvals from the Planning Commission or Historic Preservation Commission. Participation in this program is voluntary but it requires meeting certain criteria.

How does SB-9 apply to properties in Agoura Hills?

SB-9 impacts properties in Agoura Hills by allowing for the creation of two new residential units on existing single-family lots through processes like urban lot splits. This legislation streamlines the approval process for qualifying housing developments to address housing shortages and promote denser urban development. It facilitates the construction of additional housing units while adhering to certain criteria and standards, such as minimum lot size requirements and compliance with zoning regulations.

What can homeowners build under SB-9 in Agoura Hills?

Urban Lot Split options under SB-9

An urban lot split is the process of dividing one property into two separate lots. This applies only to properties zoned for single-family homes.

Under this option, you could have the following unit configurations:

Not sure if your property is located in a Single-family zoned area?

Two-Unit Development under SB-9

A two-unit development refers to a residential project that includes two housing units on one parcel of land zoned for single-family use.

Under this option, you could have the following unit configurations:

How large can each new unit be, and how many can you have per lot?

Under SB-9, the Agoura Hills imposes that the maximum size for a dwelling is 800 square feet. Interestingly note that the SB-9 per State of California, allows the units to have any size, not limited to 800 square feet.

You can have two units per lot on a lot created through an urban lot split, including ADUs and JADUs.

What are the setbacks?

Setbacks for side and rear property lines should be at least 4 feet. No setback is required when you convert an existing structure or when a new structure is built on the same location and dimensions as an existing one.

What is the parking requirement under SB-9?

Under SB-9, off-street parking of at least one space per unit is typically required. However, there are exceptions. Parking requirements may be waived if the parcel is within a one-half-mile walking distance of either a high-quality transit corridor or a major transit stop.

What are the lot constraints under SB-9?

Under SB-9, in the scenario of an urban lot split, both newly created parcels should have a minimum of 1,200 square feet. After the lot split, neither parcel can be smaller than 40 percent of the original lot area proposed for subdivision.

Development Analysis calculates the max size under SB-9 for the highest return.

Who and which properties are eligible for SB-9 or the HOME Act?

Which zoning designations are eligible for SB-9?

Properties eligible for SB-9 are located in the Residential-Single Family District (RS), Residential-Low Density District (RL), and Residential-Very Low-Density District (RV), all within single-family zones.

Can you disregard the environmental restrictions on the lot?

Environmental restrictions for SB-9 development cannot be disregarded, as they protect important areas like wetlands and conservation lands. The property cannot be located on a hazardous waste site unless certain exemptions apply.

Can you bypass the Historical Preservation limitations?

No, Historical Preservation limitations cannot be bypassed. The development cannot take place on a property within a historic district, or listed on the State Historic Resources Inventory or Agoura Hills' local historic registry.

Is it allowed to demolish an affordable unit?

No, demolition or alteration of housing units with agreements or regulations that keep rents affordable for moderate, low, or very low-income households is not allowed in the proposed housing development.

Is it allowed to build in High-Risk Areas?

It depends. Building in high-risk areas might be possible under certain conditions, but strict regulations should be followed. For example, development in a FEMA flood zone is allowed only if a letter of map revision is obtained from FEMA or the project meets FEMA's minimum floodplain management requirements under the National Flood Insurance Program.

Additionally, construction in a regulatory floodway is not allowed unless a no-rise certification is secured.

What are the limitations after completing a project using SB-9?

Does the homeowner need to reside on the property?

Yes, the homeowner needs to live on the property. For an urban lot split, the applicant has to sign an affidavit stating they will occupy one of the units as their primary residence for at least three years after the split is approved. This requirement doesn’t apply to "community land trusts" or "qualified nonprofit corporations."

What are the rental regulations?

Any rental agreement for a unit on a parcel created through an urban lot split should be for more than 30 days.

Are existing tenants’ rights protected?

Yes, tenants' rights are protected. The development cannot involve demolishing or altering housing subject to rent control or price regulations by a public authority.

Additionally, if a tenant has lived in the housing within the last 3 years, the property cannot be affected. The development also cannot occur on a property where the owner has ended a lease or removed accommodations in the past 15 years.

Furthermore, demolishing more than 25% of existing exterior walls is not allowed unless the site hasn’t been tenant-occupied in the last 3 years.

What is the difference between SB-9 and SB-684?

SB-684 is a newer bill than SB-9, and it streamlines the development process of up to 10 units on urban lots that are smaller than 5 acres. As opposed to SB-9, SB-684 is applicable on properties that are within multi-family zoning areas or on vacant lots within single-family zoning areas. The great part about SB-684 is that it doesn't have the ownership limitations that SB-9 imposes after development.

Below we compared SB-9 and SB-684 for you to understand the development framework outlined by each bill.

How to get permits under SB-9 or the HOME Act?

Does SB-9 projects qualify for a ministerial approval process and what does it mean?

Yes, projects under SB-9 are eligible for a ministerial approval process. Ministerial approval simplifies the housing development process by providing clear and consistent guidelines. Unlike subjective methods, ministerial approval follows set criteria, reducing bureaucratic delays. This approach allows projects to get permits without extensive CEQA reviews or public hearings. While it speeds up the process, obtaining approval for a lot split may still take up to 1.5 years.

What are objective standards?

"Objective standards", "zoning, subdivision", and "design review standards", are designed to eliminate personal judgment from the approval process. These standards are based on clear, measurable criteria that developers and officials can reference before submitting their projects. This ensures a consistent and predictable evaluation process.

What types of objective standards qualify for a waiver under SB 9?

Under SB-9, objective standards may be waived if they would physically prevent the construction of up to 2 units or if they would result in either unit being smaller than 800 square feet. If an objective standard would make one or both units less than 800 square feet, it can be waived or adjusted only as needed to allow the affected unit(s) to meet the 800-square-foot minimum.

What are the steps to get the permits?

To get permits for SB-9 developments, property owners should follow these steps:

1. Prepare Application: Fill out the application form from the planning and community development department.

2. Submit Application: Turn in the completed application form for review.

3. Review Process: The director checks the application to ensure it meets all requirements.

4. Approval: If everything is in order, the permit is granted, and the project can move forward.

5. Denial: If there are significant issues that cannot be fixed, the director might deny the application.

6. Expiration: If a certificate of occupancy isn't obtained within three years of approval, the permit expires. An extension of up to 12 months may be granted if you're actively working to get approvals from other agencies.

How fast can you complete a project per SB-9?

This information outlines the different phases of the project along with their respective durations.

Feasibility Study with deciding the final scope of the project:
- Maximum of 3 days to get your Development Analysis
Secure Financing: 2 to 3 weeks
Hiring the Team: 2 weeks
Design Process:
- Schematic Design: 1-2 months
- Permit Set / Design Development Drawing Set: 2-3 months
- Construction Drawing Set: 2-3 months
Entitlements and Building Permits: 6 to 9 months with the possibility of extending further due to departmental backlogs
Construction:
- Lot Split only: 1 year
- Single Family House/Duplex: 1 year
- Accessory Dwelling Unit (ADU): 3 to 6 months

How much does an SB-9 project cost?

In this analysis, we will take a look at two scenarios to evaluate expected expenses, property assessments, and potential profits for real estate projects.

Scenario 1

New 4,000 sq. ft 3-Story Duplex + 1,000 sq. ft ADU

For this scenario, we propose constructing a three-story duplex with a total area of 4,000 square feet, along with a 1,000-square-foot Accessory Dwelling Unit (ADU). The total cost, which includes construction, permits, and professional services (excluding land acquisition), is estimated at $2,161,508. The projected market value of the finished property in Agoura Hills is approximately $3,250,000, resulting in a return on investment (ROI) of [($3,250,000 - $2,161,508) / $2,161,508] * 100 = 50%.

Scenario 2

Lot Split with 2 new 4,000 sq. ft 3-story Duplexes

In this scenario, we suggest dividing the lot to build two separate three-story duplexes, each with 4,000 square feet. The total estimated cost, excluding land acquisition, is $3,468,340. The expected market value for these duplexes in Agoura Hills is $5,200,000, resulting in an ROI of 50%.

Conclusion:

SB-9 projects in Agoura Hills City provide a moderate return on investment (ROI), making them a relatively conservative choice for real estate development, whether through lot splitting or new construction.