City of Alhambra

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

Using SB-9 for real estate developments in Alhambra City is an effective strategy for homeowners to secure funds for loan repayment. Additionally, if you have surplus capital, you can construct additional units to generate rental income or accommodate extended family while remaining in your primary residence. To ensure the success of an SB-9 project, begin by determining your eligibility, understanding the relevant regulations for your property, and choosing the most financially advantageous SB-9 option for properties in Alhambra.

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

What is SB-9?

SB-9, or Senate Bill 9, took effect on January 1, 2022. It aims to increase housing options in single-family neighborhoods and simplify the home-building process while preserving neighborhood character. The law streamlines the approval process for Two-Unit Developments and Urban Lot Splits. If a proposed development meets specific zoning, design, and subdivision standards, it should be approved through a straightforward ministerial review process. This approach is designed to promote housing growth while keeping in line with existing neighborhood features.

How does SB-9 apply to properties in Alhambra?

SB-9 impacts zoning regulations and development opportunities in Alhambra by expanding housing options in single-family areas and making the process of new home construction more efficient. Property owners and developers in Alhambra can expect a more predictable approval process for certain housing projects, which supports the growth and improvement of the local housing market.

What can homeowners build under SB-9 or Alhambra’s HOME Act?

Urban Lot Split under SB-9

Urban Lot Split under SB-9 allows a single-family lot to be divided into two, enabling the construction of two residences.

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

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

Urban Dwelling Units (Two Residential Units) under SB-9

A two-unit development is a housing project where two separate homes are built on a single-family lot or by adding a second unit to an existing home.

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?

Alhambra imposes an 800-square-foot limit on new residential units, but SB-9 per California state law, allows for larger units.

You can have two units on a lot created by an urban lot split, which includes ADUs and JADUs.

What are the setbacks?

Side setbacks for one-story structures on interior lots require 4 feet, with an extra foot per additional story. Corner lots follow street-side yard setbacks, and rear setbacks should be at least 4 feet. No setback is required for existing buildings.

What is the parking requirement under SB-9?

Each unit should provide at least 1 on-site parking space within an enclosed garage.

What are the lot constraints under SB-9?

The split of an existing parcel into new parcels should result in no more than 2 units, with each parcel at least 40% of the original lot and a minimum size of 1,200 square feet.

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 should be located within specific zoning districts, including the R-1 (Single-Family Residential) zone.

Can you disregard the environmental restrictions on the lot?

SB-9 does not apply to properties in environmentally sensitive areas, including wetlands, hazardous waste sites, floodways, conservation areas, and habitats for protected species. These areas are protected to prevent negative impacts from development.

Can you bypass the Historical Preservation limitations?

No, you cannot bypass historical preservation limitations. SB-9 prevents the approval of urban lot splits or new residential units on properties within historic districts, listed on the State's Historic Resource Inventory, or designated as city or county landmarks or historic districts according to local rules.

Is it allowed to demolish an affordable unit?

No, demolishing or altering affordable housing units is not allowed under SB-9. The regulations prohibit changes that would affect housing with rent restrictions for moderate, low, or very low-income families, as specified in recorded covenants or laws.

Is it allowed to build on a property in Coastal Zones?

SB-9 regulations in Alhambra do not specifically cover coastal zones. Coastal areas often have stricter building codes, so it is important to consult the planning department to understand and comply with local requirements before starting construction in these areas.

Is it allowed to build in High-Risk Areas?

It depends. Building in high-risk areas is generally discouraged due to safety concerns. Construction should avoid earthquake fault zones, flood hazard areas for the 100-year flood, and regulatory floodways unless proper safety measures are provided.

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

Does the homeowner need to reside on the property?

Yes, the homeowner should sign an affidavit indicating that they will occupy one of the housing units in a lot split property as their primary residence for at least 3 years from the approval date.

What are the rental regulations?

Under SB-9, short-term rentals of less than 31 days are not allowed.

Are existing tenants’ rights protected?

Yes, existing tenants' rights are protected. Regulations prevent the demolition or alteration of housing with rent or price controls by a public entity and ensure protection for housing occupied by tenants within the past 3 years.

New urban dwellings cannot demolish more than 25% of existing exterior walls unless the property has been unoccupied by tenants for the past 3 years. Properties where the owner has ended leases or withdrawn rental accommodations within the last 15 years are also protected.

Can condominiums be proposed as part of my Urban Lot Split application?

No, converting properties into condominiums involves a different process. SB-9 allows for splitting a single-family lot into two, which could potentially result in up to 4 units on a single-family property. However, creating condominiums requires the Parcel Map process, including filing fees, environmental assessments, public hearings, and appeal periods, which is separate from the SB-9 Urban Lot Split process.

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

SB-684, a more recent bill than SB-9, simplifies the process for developing up to 10 units on urban lots under 5 acres. Unlike SB-9, SB-684 applies to properties in multi-family zones or vacant lots in single-family zones. A key advantage of SB-684 is that it does not impose the ownership restrictions required by SB-9 after construction.

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 qualify for ministerial approval, which streamlines the development process by following predefined guidelines. Unlike discretionary approvals, this method avoids subjective decision-making and minimizes delays. It enables permits to be granted without the need for lengthy CEQA reviews or public hearings. Although it accelerates the process, final approval for a lot split can still take up to 1.5 years.

What are objective standards?

“Objective zoning standards," “objective subdivision standards," and “objective design review standards” are criteria used in planning that avoid personal judgment from public officials. Instead, they rely on clear, consistent rules that are available to both applicants and officials before any submission. These standards ensure that project evaluations are predictable and fair, giving homeowners a clear idea of what to expect from their proposals.

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

SB-9 allows for the waiver of objective standards if they would hinder the construction of two units or reduce either unit's size below 800 square feet. If a standard would cause a unit to be smaller than 800 square feet, it can be modified or waived to ensure the unit meets the 800-square-foot requirement.

What are the steps to get the permits?

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

1. Determine the Required Permit

Reach out to your local government or park authority, to identify the specific permit needed for your project.

2. Collect Required Documents

Gather all essential documents, including completed application forms, proof of ownership (if necessary), and project plans.

3. Pay Fees

Be prepared to pay any fees associated with the permit.

4. Submit Your Application

Submit your application according to the provided instructions, whether in person, by mail, or online.

5. Wait for Approval

Your application will be reviewed, and you will receive notification about its status, including any additional steps that may be required.

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 using CityStructure 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?

This analysis will 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

In this scenario, we suggest constructing a 4,000-square-foot, three-story duplex alongside a 1,000-square-foot Accessory Dwelling Unit (ADU). The total estimated cost, which includes construction, permits, and professional fees (but excludes land costs), is $2,167,306. The projected market value of the completed property in Alhambra is approximately $3,750,000, resulting in an ROI of [($3,750,000 - $2,167,306)/$2,167,306]*100 = 73%

Scenario 2

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

In this second scenario, we plan to subdivide a lot and build two new 4,000-square-foot, three-story duplexes. The estimated total investment for this project, excluding land acquisition costs, is $3,464,850. The projected market value for these duplexes in Alhambra is $6,000,000, resulting in an ROI of 73%.

Conclusion:

Real estate projects under SB-9 in Alhambra show promising returns above 50%, suggesting that pursuing development in this area is a valuable opportunity.