What is SB-9 and how does it apply to the properties in Menlo Park?

What is SB-9?

SB 9, also known as Senate Bill 9, requires that proposed housing developments with up to two primary residential units on a single parcel in a single-family residential zone can seek ministerial approval. Additionally, SB 9 requires local agencies to approve parcel maps for urban lot splits, creating two parcels from one single-family residential parcel, under specific conditions. This legislation enables the potential construction of up to four primary units on existing single-family-zoned lots (with up to two units on each of the newly created lots from an urban lot split). Existing ADU laws can also be combined with SB 9 regulations on lots that remain undivided, allowing for a total of four units on a single-family lot (two primary units and two ADUs). It's important to note that SB 9's streamlined development review and permitting process does not apply to the demolition and reconstruction of single-family dwellings.

How SB-9 applies to properties in Menlo Park?

SB-9 applies to properties in Menlo Park by allowing for the streamlined approval of housing developments that involve urban lot splits or the addition of up to two residential units on a single-family residential parcel. The legislation requires ministerial approval for such projects, bypassing discretionary review processes in many cases. This facilitates quicker permitting and development timelines, provided the projects meet specific criteria outlined in local zoning and subdivision regulations.

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

Urban Lot Split under SB-9

Urban lot split refers to dividing a parcel within a residential single-family zone into a maximum of two parcels.

In this case you could have the following unit configurations:

A. Lot 1 Single-Family Dwelling (SFD)
Lot 2 Single-Family Dwelling (SFD)

B. Lot 1 Single-Family Dwelling (SFD)
Lot 2 Duplex

C. Lot 1 Duplex
Lot 2 Duplex

D. Lot 1 Single-Family Dwelling (SFD) + Single-Family Dwelling (SFD)
Lot 2 Single-Family Dwelling (SFD)

E. Lot 1 Single-Family Dwelling (SFD) + Single-Family Dwelling (SFD)
Lot 2 Single-Family Dwelling (SFD) + Single-Family Dwelling (SFD)

Two-Unit Housing Development under SB-9

A two-unit housing development refers to a project that includes a maximum of two primary dwelling units. This development can either propose two new units or add one new unit to an existing unit.

You could have the following unit configurations:

• Single-Family Dwelling (SFD) + Single-Family Dwelling (SFD)
• Single-Family Dwelling (SFD) + Single-Family Dwelling (SFD) + ADU (max. size 1,200 sqft) or JADU (max. size 500 sqft)
• Duplex
• Duplex + ADU (max. size 1,200 sqft) or JADU (max. size 500 sqft)
• Duplex + 2 ADU (max. size 1,200 sqft)

Deciding which development option works best for you is not easy, unless you understand their cost and ROI for your property. You need an SB-9 Analysis for each option to make the best decision.

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How large the new units could be and what are the lot contains?

The new units under SB 9 should be at least 800 square feet in size. However, SB 9 in California allows for flexibility in unit size beyond this minimum requirement.

Additionally, the maximum height for residential structures is capped at 28 feet.

What are the setbacks?

Setbacks refer to the minimum distances required between property lines and structures:

Ground Floor Yards:

• Front: Follows the required front yard of the underlying zoning district, unless the front property line is newly created on a panhandle lot, where a minimum of 4 feet is required.
• Side: 4 feet, unless the side property line abuts a newly created panhandle, in which case no side yard is required.
• Rear: 4 feet.
• No yards are required for existing structures or structures constructed in the same location and dimensions as existing ones. Zero lot line developments at newly created interior lot lines also do not require yards.

Second Floor Yards (Step Back):

• Second floor yards match the applicable yards of the underlying zoning district, except for required yards for new interior lot lines where a minimum of 4 feet is required.
• No second floor yard is required for zero lot line developments at newly created interior lot lines.

Corner Lots:

When a corner lot is subdivided along the street-side property line:

• Ground Floor Yards: Front requires 12 feet, rear requires 4 feet, and side requires 4 feet.
• Second Floor Yards: Front requires 12 feet, rear requires 10 feet, and side follows the setback applicable to the underlying zoning district.
• No yards are required for zero lot line developments at newly created interior lot lines.

What is the parking requirement under SB-9?

Each unit is required to have 1 uncovered parking space, unless exempted. Exemptions include proximity to transit corridors or major stops, or availability of a car share vehicle nearby. Parking spaces can be located in required yards, with limitations on placement in the front yard. Tandem parking is allowed, and if in a garage or carport, the covered area counts toward maximum floor area, unit size, and building coverage limits.

What are the lot constrains under SB-9?

Under SB-9, lot constraints specify that after an urban lot split, the minimum lot size should be at least 40% of the original lot size and no less than 1,200 square feet. In panhandle subdivisions, the panhandle area counts towards the total lot area.

For side-by-side urban lot splits, the minimum width of the subdivided lots depends on the original lot width: less than 65 feet wide requires lots to be 50% of the original width, while 65 feet or wider requires lots to be at least 40% of the original width.

Don't leave money on the table by limiting the size of your project to a minimum! SB-9 Analysis calculates for you the maximum building area so you can get the highest return.

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

What are the zoning districts for properties eligible for SB-9?

Properties eligible for SB-9 are typically located in the following zoning districts:

1. R-1-U
2. R-1-U (LM)
3. R-1-S
4. R-1-S (FG)
5. R-E
6. R-E-S

Can you bypass the Historical Preservation limitations?

No, disregarding the environmental restrictions on the lot is not allowed if the property is located within a historic district, listed on the State Historic Resources Inventory, or designated as a city or county landmark or historic property or district.

Is it allowed to demolish an affordable unit?

No, demolishing and altering an affordable unit is not allowed if the housing is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to moderate, low, or very low-income persons and families.

Start by checking if your property is eligible for SB-9 because not all the single-family zoned lots are eligible.

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

Does the homeowner need to reside on the property?

Yes, a homeowner should provide an affidavit stating their intention to reside in one of the housing units resulting from an urban lot split as their primary residence for a minimum of 3 years from the approval date. However, this affidavit is waived if the applicant is a community land trust or a qualified nonprofit corporation.

Are existing tenants’ rights protected?

Yes, demolishing or altering housing is prohibited to protect housing stability and tenant rights. This includes housing that falls under local rent control regulations, properties where accommodations were withdrawn from rent or lease in the past 15 years, and housing occupied by a tenant within the last 3 years.

What are the rental regulations?

Units resulting from an urban lot split cannot be rented out for short-term stays and should have durations longer than 30 days.

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

Projects subject to SB-9 can move forward using a ministerial permit process, avoiding discretionary review or hearings.

What does ministerial approval mean?

Ministerial approval in housing development simplifies procedures by following established guidelines and bypassing discretionary processes. It uses specific criteria to expedite permit issuance without prolonged reviews or public hearings. Despite this streamlined approach, approval for lot divisions can still require up to 18 months in certain instances.

What are objective standards?

Objective standards encompass zoning regulations, subdivision criteria, and design review guidelines intended to eliminate subjective judgments by government officials. They utilize standardized criteria used by developers and officials when submitting proposals, ensuring consistent and predictable project evaluations.

What are the steps to get the permits?

To obtain SB 9 permits in Menlo Park, follow these steps:

• Understand Local Regulations:

Begin by thoroughly reviewing Menlo Park's Planning and Zoning Laws and ordinances governing accessory dwelling units and housing developments. Understanding these regulations is crucial as they form the basis for project compliance.

• Verify Compliance:

Once familiar with local ordinances, ensure that the proposed development complies with all requirements. This includes confirming compliance to rent restrictions, demolition limitations, site specifications, and any guidelines applicable to historical districts.

• Gather Necessary Documents:

Compile all essential paperwork required for the housing project or urban lot split application. This may involve architectural plans, environmental assessments, financial records, and other pertinent materials to support the application.

• Submit the Application:

Submit the completed application to the appropriate local authority for ministerial approval. This initiates the official review process and moves the project forward towards obtaining the necessary permits.

The permitting process is complex, and you'll need to hire professionals to draft the drawing set and to go through the process for you. SB-9 Analysis comes with referrals to local professionals that can help you complete the project.

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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 (CityStructure)
• Weeks if using other resources

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

Permit Planning and Building Permits: 9 to 15 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 a SB-9 project costs?

In this analysis, we'll explore two scenarios to assess anticipated expenses, property assessments, and potential profits for real estate ventures.

Scenario 1

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

In this first option, we recommend building a three-story duplex with a total of 4,000 square feet, along with an additional 1,000-square-foot Accessory Dwelling Unit (ADU). The overall estimated cost, covering construction, permits, and professional fees (excluding the land), is $2,152,366. The estimated value of the completed property in Menlo Park is about $5,690,000, which gives a return on investment (ROI) of [($5,690,000 - $2,152,366) / $2,152,366] * 100 = 164%.

Scenario 2

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

For this second option, we suggest splitting the lot to build two separate three-story duplexes, each with 4,000 square feet. The projected cost, excluding the land, is $3,465,416. The anticipated market value for these duplexes in Menlo Park is $9,104,000, leading to an ROI of 163%.

Conclusion:

Real estate projects applying SB-9 in Menlo Park City offer excellent returns, making it an appealing option for property development.

Balancing costs and market value from the very beginning is key to an SB-9 project with positive returns. SB-9 Analysis gives you all this information for your project.

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