All you need to know about building on properties in Pacifica City under SB-9
Using SB-9 for real estate projects in Pacifica City can help homeowners pay off a big part of their loan. If you have the money, you can add more units to make rental income or have space for extended family while still living in your main home. To get your SB-9 project right, start by learning about the eligibility, how the rules apply to your property, and which SB-9 option works best financially for your place in Pacifica City.
What is SB-9 and how does it apply to the properties in Pacifica?
What is SB-9?
SB-9 (Senate Bill), also known as the California HOME Act, was signed into law on September 16, 2021. This legislation simplifies the housing development process by requiring that proposed developments with up to two residential units in single-family residential zones undergo a ministerial approval process. This administrative process bypasses discretionary reviews and public hearings, provided the projects meet specific criteria aimed at promoting more efficient housing opportunities.
How SB-9 applies to properties in Pacifica?
It applies to properties in Pacifica by allowing for urban lot splits and two-unit residential developments under specific guidelines and standards. This legislation streamlines the approval process for qualifying housing projects, bypassing discretionary reviews in favor of ministerial approval, provided they meet the established criteria. This enables property owners to potentially create additional residential units on their lots, promoting denser housing options in compliance with local zoning regulations and other requirements.
What can homeowners build under SB-9 or Pacifica’s HOME Act?
Urban Lot Split under SB-9
Under SB-9, an urban lot split involves subdividing an existing parcel into a maximum of two separate parcels, ensuring compliance with defined criteria and standards.
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 Development under SB-9
SB-9's two-unit development pertains to projects that include either creating up to two new dwelling units or adding one new dwelling unit to an existing primary dwelling 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.
How large the new units could be and what are the lot contains?
The minimum floor area required is 800 square feet for the new units, but SB-9 in California allows units of any size. Additionally, the City does not authorize ADUs or JADUs on parcels utilizing both two-unit residential developments and urban lot splits.
What are the setbacks?
Setbacks are not necessary for existing legal structures or those built in the same location and dimensions as an existing legal structure. New structures, however, should maintain a minimum 4-foot setback from both the rear and side property lines.
What is the parking requirement under SB-9?
Under SB-9, each unit should provide 1 off-street parking space within a garage. However, no off-street parking is required for developments that are within a half-mile walking distance of a high-quality transit corridor or a major transit stop, or within one block of a car share. Tandem parking is not allowed under these regulations.
What are the lot constrains under SB-9?
Each lot split resulting parcel should be at least 1,200 square feet in size, and no smaller than 40 percent of the original parcel's size. Sequential splitting of a parcel previously divided under SB-9 is prohibited, as is splitting if the owner or an associated party has subdivided an adjacent parcel under SB-9.
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.
Who and which properties are eligible for SB-9 or HOME Act?
What are the zoning districts for properties eligible for SB-9?
The eligible zoning districts for properties under SB-9 include R-1 (Single-Family Residential), R-1-H (Single-Family Residential Hillside), and R-2 (Two-Family Residential).
Can you bypass the Historical Preservation limitations?
No, you cannot ignore Historical Preservation limitations in Pacifica if the parcel is located within a historic district, listed on the State Historic Resources Inventory, or designated as a city landmark or historic property according to local ordinances.
Is it allowed to demolish an affordable unit?
No, it is not allowed to demolish or alter an affordable unit in Pacifica if it is subject to a recorded covenant, ordinance, or law that requires affordable rent levels for moderate, low, or very low-income individuals and families.
Is it allowed to build on a property on Coastal Zones?
Yes, you can build on a property located in Coastal Zones, but you should obtain a Coastal Development Permit (CDP) if you plan to develop an SB-9 project.
Start by checking if your property is eligible for SB-9 because not all the single-family zoned lots are eligible.
What are the ownership and development limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes, homeowners in Pacifica should sign an affidavit confirming their plan to live in one of the housing units as their primary residence for at least 3 years following the approval of the lot split.
Are existing tenants’ rights protected?
Yes, existing tenants' rights in Pacifica are protected under SB-9, which prohibits the demolition or alteration of housing covered by rent or price controls enforced by public entities. It also safeguards parcels where accommodations have been withdrawn from rent or lease within the last 15 years prior to the development application. Furthermore, SB-9 ensures that housing occupied by tenants within the past 3 years cannot be demolished or altered.
What are the rental regulations?
Rental regulations for units developed under SB-9 require leases to be for periods 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 follows established protocols to streamline permit issuance without discretionary reviews or public hearings, aiming to expedite the process. However, in cases involving lot divisions, approvals can still take up to 18 months.=.
What are objective standards?
Objective standards encompass zoning regulations, subdivision criteria, and design review guidelines that eliminate subjective judgments by government officials. These standards rely on standardized criteria used uniformly by developers and officials during proposal submissions, ensuring evaluations of projects are consistent, predictable, and impartial.
What are the steps to get the permits?
Here are the steps to obtain SB 9 permits in Pacifica:
- Begin by thoroughly reviewing Pacifica's Planning and Zoning Laws and ordinances governing ADUs and housing developments to understand local regulations essential for project compliance.
- Verify that the proposed development complies with all local ordinances, ensuring adherence to rent controls, restrictions on demolition, site specifications, and guidelines applicable to historical areas.
- Gather all necessary documentation required for the housing project or urban lot split application, including architectural designs, environmental assessments, financial records, and other relevant materials.
- Submit the completed application to the appropriate local authority for ministerial approval, initiating the formal review process and advancing 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.Get SB-9 Analysis
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, plus a 1,000-square-foot Accessory Dwelling Unit (ADU). The estimated overall cost, which includes construction, permits, and professional fees (excluding land), is $2,155,346. The expected value of the completed property in Pacifica is approximately $4,275,000, giving an ROI of [($4,275,000 - $2,155,346) / $2,155,346] * 100 = 98%.
Scenario 2
Lot Split with 2 new 4,000 sq.ft 3-story Duplexes
For the second option, we suggest dividing the lot to build two separate three-story duplexes, each with 4,000 square feet. The estimated cost, excluding land, is $3,461,142. The anticipated market value for these duplexes in Pacifica is $6,840,000, resulting in an ROI of 98%.
Conclusion:
In Pacifica, real estate projects under SB-9 offer impressive returns, making it a compelling spot for anyone thinking about development projects.