What is SB-9 and how does it apply to the properties in Unincorporated Sacramento County?

What is SB-9?

SB-9, also known as Senate Bill 9, is a California state law designed to streamline the process for certain housing developments. It allows property owners to split a single-family residential lot into two separate lots, each eligible for a residential unit. This legislation requires that local authorities approve these projects through a straightforward administrative process, bypassing discretionary reviews such as Conditional Use Authorization and extensive environmental evaluations under CEQA. Participation in SB-9 is optional for local jurisdictions, and projects should meet specific eligibility criteria outlined in the law.

How SB-9 applies to properties in Unincorporated Sacramento County?

SB-9 applies to properties in Unincorporated Sacramento County by allowing property owners to potentially split their lots into smaller parcels and build additional residential units, subject to specific criteria. This includes compliance with lot size requirements, zoning regulations, and other specifications such as environmental and historical preservation considerations. The process involves submitting applications for urban lot splits or second primary dwelling units, following set guidelines, and undergoing review by local authorities to ensure compliance before approvals are granted.

What can homeowners build under SB-9 or Unincorporated Sacramento County’s HOME Act?

Urban Lot Split under SB-9

This project aims to divide a property, initially at least 2,400 gross square feet in size, into two nearly equal-sized resultant lots.

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

This pertains to a housing project within a single-family residential zone that permits the construction of up to two homes.

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)

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

The minimum habitable area requirement for new units is set at 1,200 square feet for secondary dwelling units (SDUs), while there is no upper limit on unit size according to State regulation. In the case of an urban lot split, each resulting lot can support up to 2 units: either 1 primary unit paired with 1 SDU, or 1 primary unit with 1 ADU or JADU. This means that a single original lot can potentially host up to 4 residential units across the two resultant lots after subdivision, allowing for increased housing density under specific zoning conditions.

What are the setbacks?

The setback requirements under SB-9 require that:

• Front yards should be a minimum of 20 feet without Public Utility and Public Facility (PUPF) easements, or 24 feet with PUPF.
• Site street yards, typically for corner or through lots, require a minimum of 12.5 feet without PUPF, or 16.5 feet with PUPF.
• Side and rear yards for 1-2 story buildings should be at least 4 feet, with allowances for overhangs/eaves that may encroach up to 1 foot, maintaining a minimum of 3 feet from the property line.
• For 3-story buildings, side yards are required to be 10 feet, and rear yards vary based on lot depth, with a minimum of 25 feet for deeper lots and 20% of the average lot depth for shallower lots, potentially allowing projections into the rear yard.

What is the parking requirement under SB-9?

The parking requirement under SB-9 requires 1 parking space per dwelling unit. However, this requirement can be waived if the project is located within a half-mile of a major transit corridor, or if there is a car share vehicle available within one block of the parcel.

What are the lot constrains under SB-9?

Under SB-9 regulations, property owners can divide a single lot into two new lots, with each new lot required to be at least 1,200 square feet in size. Additionally, each new lot should range in size from 40% to 60% of the size of the original lot. This subdivision opportunity applies to both developed and vacant lots, providing flexibility in land use and development under specific zoning conditions.

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 SB-9 in Unincorporated Sacramento County are primarily single-family residential zones.

Can you disregard the environmental restrictions on the lot?

No, you cannot disregard the environmental restrictions in Unincorporated Sacramento County. The property should not be located on farmland, wetlands, habitat for protected species, or conservation lands or easements.

Can you bypass the Historical Preservation limitations?

No, you cannot disregard the historical preservation restrictions in Unincorporated Sacramento County. The property should not be located in a historic district, included in the State Historic Resources Inventory, or designated as a landmark or historic property by the County.

Is it allowed to demolish an affordable unit?

No, the project cannot involve the demolition or alteration of affordable housing units.

Is it allowed to build in High-Risk Areas?

Possibly, the development cannot be set in areas prone to high fire risk, hazardous waste sites, earthquake fault zones, or flood zones unless specific additional criteria are fulfilled.

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

Does the homeowner need to reside on the property?

Yes, for approval of an Urban Lot Split, the applicant should provide a signed affidavit confirming their intention to live in one of the dwelling units on either of the resulting lots as their primary residence for a minimum of 3 years after the Urban Lot Split is finalized.

Are existing tenants’ rights protected?

Yes, existing tenants' rights are safeguarded under the project, ensuring that no alterations or demolitions will affect rent-controlled housing, properties withdrawn from rental use using the Ellis Act within the past 15 years, or units occupied by tenants in the last three years. If a unit was occupied within this timeframe, any demolition impacting more than 25 percent of its exterior walls is prohibited.

What are the rental regulations?

Short-term rentals are prohibited in dwelling units, including Second Primary Dwelling Units (SDUs) and newly constructed primary dwellings. Rentals should 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 simplifies housing development by providing developers and local authorities with clear guidelines. Unlike discretionary processes influenced by personal judgment, ministerial approval strictly follows predefined criteria. This reduces bureaucratic hurdles, allowing qualifying housing projects to obtain permits without lengthy CEQA reviews or public hearings. Eliminating subjective assessments speeds up the process, facilitating quicker progress for housing initiatives. However, despite these efficiencies, approval for a lot split may still take up to 18 months.

What are objective standards?

"Objective zoning standards," "objective subdivision standards," and "objective design review standards" eliminate subjective assessments by government officials. They use standardized metrics that developers and officials can access before submitting their projects, ensuring consistent and reliable evaluations. This approach provides homeowners with clear and predictable guidelines for evaluating their proposals.

What are the steps to get the permits?

To apply for SB 9 permits in Unincorporated Sacramento, follow these steps:

• SB 9 Project Application:

Submit an application to Building Permits and Inspection (BPI) with a plot plan and required construction documents. Specify that you are applying for an SB 9 Second Primary Dwelling Unit (SDU), limited to a maximum size of 1,200 square feet. Clearly designate the primary dwelling without size limitation.

• Urban Lot Split Application:

Access the SB 9 Urban Lot Split Application on the PER Application Webpage. Complete Parts C and D to ensure the property meets SB 9 criteria. Submit all required project materials listed in Part E. Additional materials may be requested by PER to confirm eligibility. Applications are accepted via email or in-person, with submission details provided on the PER Application Webpage.

• Urban Lot Split Fee:

Pay a non-refundable fee of $11,970 for the Urban Lot Split application after submitting the completed application.

• Review Process:

Once payment is processed, your project will be assigned to a Project Manager who will distribute it to relevant departments and agencies for review. Conditions may be added during this stage. The Project Review Committee (PRC) will evaluate the project; no public hearing or notice is required, but applicant participation is encouraged.

• Decision and Approval:

The Planning Director will make the final decision on the Urban Lot Split application. If all criteria are met, written approval with applicable conditions will be issued. Processing typically takes 3 to 6 months, depending on applicant responsiveness and information provided.

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

For this option, we recommend constructing a three-story duplex with a total of 4,000 square feet, plus an additional 1,000-square-foot Accessory Dwelling Unit (ADU). The total estimated cost, which includes construction, permits, and professional fees (excluding land), is $2,160,406. The expected value of the completed property in Unincorporated San Mateo County is about $3,220,000, resulting in a return on investment (ROI) of [($3,220,000 - $2,160,406) / $2,160,406] * 100 = 49%.

Scenario 2

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

In this second scenario, we recommend splitting the lot to build two distinct three-story duplexes, each with 4,000 square feet. The projected cost, excluding land acquisition, is $3,466,851. The anticipated market value for these duplexes in Unincorporated San Mateo County is $5,152,000, leading to an ROI of 49%.

Conclusion:

Real estate projects in Unincorporated San Mateo County with SB-9 could provide returns of less than 50%. To reduce the risk of financial setbacks, think about using additional financial strategies or finding land at a much lower cost.