All you need to know about building on properties in San Mateo City under SB-9
Implementing SB-9 for property projects in San Mateo City can be an effective strategy for homeowners seeking to reduce their mortgage. With the right investment, you could expand your property by adding extra units, either to earn rental income or to accommodate family members while staying in your current home. To ensure a successful SB-9 projects, begin by familiarizing yourself with the eligibility criteria, how local regulations impact your property, and which SB-9 approach fits best with your financial goals in San Mateo City.
What is SB-9 and how does it apply to the properties in San Mateo City?
What is SB-9?
SB-9, or Senate Bill 9, is a California law aimed at simplifying the approval process for specific housing projects. It permits property owners to divide a single-family residential lot into two lots, each able to have a residential unit. This law requires local governments to approve these projects through a ministerial process, avoiding discretionary reviews like Conditional Use Authorization or extensive CEQA evaluations. Local jurisdictions can choose whether to participate, and projects should meet the strict eligibility criteria set by the law.
How SB-9 applies to properties in San Mateo City?
SB-9 applies to properties in San Mateo City by allowing for the ministerial approval of urban lot splits and the development of up to two residential units on each resulting parcel in single-family residential zones. This legislation streamlines the approval process, bypassing discretionary reviews like certain historic and environmental evaluations. Property owners should meet specific eligibility criteria, including compliance with objective zoning and subdivision standards.
What can homeowners build under SB-9 or San Mateo City’s HOME Act?
Urban Lot Split under SB-9
Refers to dividing an existing single-family zoned property into a maximum of two separate single-family zoned properties.
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 refers to a housing project in a single-family home area that allows for building 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)
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 new units should be at least 800 square feet in floor area, though California State SB-9 allows for units of any size. On a lot created through an Urban Lot Split, no more than two dwelling units are allowed per parcel, including primary units, SB-9 units, ADUs, and JADUs.
What are the setbacks?
Rear and side yard setbacks should be at least 4 feet, except for existing legal structures or new structures built in the same location and size as an existing legal structure, which require no setbacks.
What is the parking requirement under SB-9?
SB-9 requires 1 off-street parking space per unit, but exemptions apply for projects near major transit stops or within proximity to car shares, such as the Hillsdale, Hayward Park, and San Mateo Caltrain stations, and along El Camino Real, recognized as a high-quality transit corridor.
What are the lot constrains under SB-9?
Under SB-9, there are specific constraints regarding parcel size. The original parcel should be at least 2,400 square feet to qualify for splitting, with each resulting new parcel required to be at least 1,200 square feet, which is 40% of the original parcel's size. Additionally, SB-9 prohibits the consecutive splitting of parcels previously divided through SB-9 urban lot splits.
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?
Properties eligible for SB-9 are located in single-family residential zoning districts, such as R1-A, R1-B, or R1-C.
Can you disregard the environmental restrictions on the lot?
No, SB-9 development cannot bypass environmental restrictions such as wetlands or conservation easements on the lot.
Can you bypass the Historical Preservation limitations?
No, SB-9 projects cannot bypass historical preservation limitations. Properties should not be located in a historic district or listed on the State Historic Resources Inventory.
Is it allowed to demolish an affordable unit?
No, it is not permitted to demolish or alter an affordable unit that is subject to a recorded covenant, ordinance, or law restricting rents to levels affordable for moderate, low, or very low-income individuals and families.
Is it allowed to build in High-Risk Areas?
Yes, it may be allowed, provided the parcel is not situated in high-risk areas such as high fire hazard zones, floodplain, floodway, earthquake fault zones, or sites with hazardous materials, subject to specific conditions.
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, the homeowner should submit a signed affidavit stating they intend to live in one of the housing units as their primary residence for at least 3 years after the Urban Lot Split is approved and the Final Map is recorded.
Are existing tenants’ rights protected?
Yes, SB 9 ensures that housing cannot be demolished or altered if it falls under rent or price control by a public entity, or if it has been occupied by tenants within the last three years. Furthermore, properties where owners have used the Ellis Act to withdraw accommodations from rental within the past 15 years are also safeguarded from alteration or demolition under SB 9 regulations.
What are the rental regulations?
Short-term rentals are prohibited for any dwelling unit. Rental or lease agreements should be for periods lasting at least 30 consecutive 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 streamlines the housing development process by offering clear guidelines to developers and local authorities. Unlike discretionary processes, which can be swayed by personal judgments, ministerial approval follows strictly predefined criteria. This approach reduces bureaucratic obstacles, enabling housing projects meeting the criteria to secure permits without extensive CEQA reviews or public hearings. By eliminating subjective assessments, ministerial approval accelerates the process, fostering quicker advancement for housing initiatives. However, despite the streamlined process, 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" remove subjective evaluations by government officials. These standards rely on standardized metrics accessible to developers and officials before submission, ensuring consistent and reliable project evaluations. This framework offers homeowners clear and predictable guidelines for assessing their proposals.
What are the steps to get the permits?
To get SB 9 permits in San Mateo City, follow these steps:
- Verify property ownership with a recent preliminary title report showing current owners and any restrictions.
- Submit digital plans in a single PDF format (preferred) or 5-8 bound sets of full-size project plans if submitting hard copies.
- Provide a written description of the project, included on the plan cover sheet if submitting hard copies.
- Include digital photos of the project site and adjacent properties.
- Pay the required Processing Deposit and Fees for your application.
- Submit a full site boundary survey stamped and signed by a licensed California Land Surveyor.
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.
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 $2,159,198. The expected value of the completed property in San Mateo City is about $6,135,000, resulting in a return on investment (ROI) of [($6,135,000 - $2,159,198) / $2,159,198] * 100 = 184%.
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 $3,461,530. The anticipated market value for these duplexes in San Mateo City is $9,816,000, leading to an ROI of 184%.
Conclusion:
In San Mateo City, applying SB-9 for property development can provide substantial financial rewards, making it an attractive opportunity for anyone interested in starting new housing projects.