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

What is SB-9?

SB-9, also known as Senate Bill 9, is a California state law designed to streamline the approval process for certain housing projects. It allows property owners to split a single-family residential lot into two separate lots, each eligible for a residential unit. This legislation mandates local authorities to expedite approval through a ministerial process, bypassing the need for discretionary reviews such as Conditional Use Authorization or extensive environmental evaluations under the California Environmental Quality Act (CEQA). Participation in SB-9 is optional for local jurisdictions, and projects should meet strict eligibility criteria outlined in the law.

How SB-9 applies to properties in Unincorporated San Mateo County?

SB-9 applies in unincorporated San Mateo County by allowing for ministerial approval of urban lot splits and two-unit residential projects in designated areas, such as urbanized zones. The law mandates compliance with objective zoning, subdivision, and design review standards while maintaining certain restrictions, like protecting affordable housing and following environmental regulations. While it streamlines approval processes, local zoning regulations and public hearings may still apply, particularly in coastal zones where additional considerations are necessary despite SB-9's provisions.

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

Urban Lot Split under SB-9

This process involves dividing a single parcel of land into two separate parcels, allowing for the construction of residential units on each new parcel.

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 within a single-family residential zone that includes the development of no more than two residential units.

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?

Under SB-9, new units should be at least 800 square feet. The State law does not limit the size of units. However, a local agency is not required to allow more than two units on any parcel created through SB-9, including ADUs or JADUs.

What are the setbacks?

Setbacks under SB-9 are limited to a maximum of 4 feet for rear and side yards. No setback is required for units built within an existing living area or in the same location and dimensions as an existing structure.

What is the parking requirement under SB-9?

Under SB-9, 1 off-street parking space per unit is required. However, no parking is required if the parcel is within half a mile walking distance of a high-quality transit corridor or major transit stop, or within one block of a car share vehicle.

What are the lot constrains under SB-9?

Under SB-9 in the County, urban lot splits should create two parcels of roughly equal size, with no more than a 60/40 split, and each parcel should be at least 1,200 square feet. Parcels previously split under SB-9 cannot be split again.

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 located in single-family residential zones.

Can you disregard the environmental restrictions on the lot?

No, they cannot be ignored. Parcels should not include prime agricultural land, wetlands, protected species habitats, or land under a conservation easement.

Can you bypass the Historical Preservation limitations?

No, properties should follow historical preservation guidelines. They cannot be designated as local or state historic landmarks, nor can they be located within local or state historic districts.

Is it allowed to demolish an affordable unit?

No, you cannot demolish or alter an affordable unit if it's bound by a recorded covenant, ordinance, or law ensuring its affordability for moderate, low, or very low-income residents and families.

Is it allowed to build in High-Risk Areas?

Potentially, yes. Parcels placed in zones with significant fire hazards, earthquake fault zones, floodplains, floodways, or areas with hazardous materials may be eligible for building if specific conditions are satisfied.

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

Constructing on properties within Coastal Zones under SB 9 is limited. Regular coastal land use rules still apply, but local agencies don't need public hearings specifically for SB 9 projects seeking coastal development permits.

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, applicants for an SB 9 urban lot split should sign an affidavit affirming their intent to reside in one of the units for 3 years, unless they are a community land trust or qualified nonprofit corporation.

Are existing tenants’ rights protected?

Yes, SB 9 projects should not lead to the demolition or alteration of affordable housing, rent-controlled housing, housing withdrawn from the rental market in the last 15 years, or housing occupied by a tenant within the past 3 years.

What are the rental regulations?

Units developed under SB 9 are prohibited from being used for rentals shorter 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 the housing development process by providing developers and local authorities with straightforward guidelines. Unlike discretionary processes, which can be influenced by personal opinions, ministerial approval follows strictly to predefined criteria. This approach reduces bureaucratic hurdles, allowing housing projects that meet the criteria to obtain permits without lengthy CEQA reviews or public hearings. By eliminating subjective assessments, ministerial approval speeds up the process, facilitating faster progress for housing initiatives. However, even with this streamlined process, approval for a lot split can 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 rely on standardized metrics that developers and officials can access before submission, ensuring consistent and reliable evaluations of projects. This provides homeowners with clear and predictable guidelines for evaluating their proposals.

What are the steps to get the permits?

To obtain SB 9 permits in unincorporated San Mateo County, follow these steps:

• Review Eligibility:

Ensure the property is located within designated "urbanized areas or urban clusters" as defined by the United States Census Bureau.

• Comply with Coastal Zone Regulations:

If applicable, follow coastal zone land use regulations, noting that public hearings for coastal development permits are not required for SB 9 projects, but other zoning regulations may necessitate hearings.

• Meet Objective Standards:

Develop plans that comply with objective zoning, subdivision, and design review standards without conflicting with SB 9 requirements. This includes ensuring each unit is at least 800 square feet.

• Ensure Property Qualifications:

Confirm the property is not designated as a local or state historic landmark or located within a historic district.

• Affidavit of Intent:

Sign an affidavit declaring an intention to reside in one of the units for three years, unless applying as a community land trust or qualified nonprofit corporation.

• Public Health and Safety Review:

Be aware that the local agency can deny the project if it poses a specific, unmitigable adverse impact on public health, safety, or the environment.

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

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 $2,170,268. The expected value of the completed property in San Mateo County is about $6,315,000, resulting in a return on investment (ROI) of [($6,315,000 - $2,170,268) / $2,170,268] * 100 = 191%.

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 $3,449,518. The anticipated market value for these duplexes in San Mateo County is $10,104,000, leading to an ROI of 193%.

Conclusion:

Implementing SB-9 for property development in San Mateo County can offer considerable financial advantages, making it an appealing choice for those interested in launching new housing projects.

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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