All you need to know about building on properties in Woodside City under SB-9
SB-9 can be a valuable tool for homeowners in Woodside City looking to boost their property's value and manage their finances. By using SB-9, you could potentially free up money to cover a substantial part of your mortgage. If you’re able to invest in adding more units, you could either earn rental income or provide extra space for family while staying in your current home. To make the most of SB-9, it’s important to first grasp the eligibility requirements, understand how local rules impact your property, and figure out which SB-9 option aligns best with your financial goals.
What is SB-9 and how does it apply to the properties in Woodside?
What is SB-9?
Senate Bill 9 or SB 9, enacted on September 16, 2021, allows for the division of a single-family zoned parcel into two distinct legal parcels, each of which can support up to two units. Additionally, it permits "ministerial approval" for constructing up to two primary residences on a single-family lot. This means that the project is approved at the staff level as long as it meets predefined standards or objective criteria, without needing discretionary review or subjective assessment.
How SB-9 applies to properties in Woodside?
SB-9 applies to properties in Woodside by allowing for the subdivision of single-family residential lots into two smaller lots, each capable of accommodating a residential unit. Property owners should meet stringent requirements related to zoning, environmental considerations, and objective design standards. The application process involves preparing a parcel map, obtaining necessary certifications, and adhering to deed restrictions that ensure compliance with SB-9 development standards. The town reviews applications ministerially, meaning without discretionary review, provided all objective criteria are met.
What can homeowners build under SB-9 or Woodside’s HOME Act?
Urban Lot Split under SB-9
An urban lot split involves dividing one parcel into two separate parcels in an area zoned for single-family residences.
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
A two-unit development refers to a housing project that includes two residential units on a single parcel designated for single-family residential zoning.
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?
New units under SB-9 must be at least 800 square feet. However, the state of California allows for any size of the unit.
A subdivided lot can contain up to two residential units, such as ADUs and JADUs.
What are the setbacks?
In Woodside, setbacks of up to 4feet from the side and rear boundaries of the lot may be required, except for existing structures or those rebuilt in the same location and dimensions as existing ones, which require no setbacks.
What is the parking requirement under SB-9?
Under SB-9, each unit may need 1 off-street parking space. However, parking requirements cannot be enforced if the parcel is within half a mile of a high-quality transit corridor or major transit stop, or if a car share vehicle is available within one block.
What are the lot constrains under SB-9?
Under SB-9 in Woodside, proposed lots should be a minimum of 40% the size of the existing parcel or 1,200 square feet, whichever is greater. Additionally, the lot cannot have been created through a prior SB-9 lot split.
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?
SB 9 allows properties in any single-family zoned district to be eligible for its provisions.
Can you disregard the environmental restrictions on the lot?
No, you should comply with environmental restrictions on the lot. These include avoiding prime farmland or farmland of statewide importance, wetlands, lands designated for conservation under natural community conservation plans or habitat conservation plans, and habitats for protected species.
Can you bypass the Historical Preservation limitations?
No, you cannot bypass historical preservation limitations under SB 9. Units cannot be developed on parcels listed in the State Historic Resources Inventory or within legally designated Town historic properties.
Is it allowed to demolish an affordable unit?
No, demolishing or altering an affordable unit in Woodside is not allowed if it is subject to a recorded covenant, ordinance, or law that requires affordable rent for moderate, low, or very low-income individuals and families.
Is it allowed to build in High-Risk Areas?
It Depends. Building in high-risk areas is generally not allowed under SB-9 if the project is on a hazardous waste site listed by the Department of Toxic Substances Control, unless cleared for residential use. Additionally, projects cannot be in very high fire hazard severity zones unless specific fire hazard mitigation measures are adopted. Projects may be located in earthquake fault zones or special flood hazard areas if they meet seismic protection and flood management standards set by state and federal regulations, respectively.
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 should sign an affidavit confirming their intention to live in one of the housing units as their primary residence for at least 3 years from the SB 9 lot split approval date, under penalty of perjury. This requirement does not apply if the applicant is a community land trust or a qualified nonprofit corporation.
Are existing tenants’ rights protected?
Yes, existing tenant protections in Woodside prevent projects from demolishing or altering housing under rent or price control by public entities, or on properties where accommodations have been withdrawn from rent or lease under state law within the last 15 years. Additionally, demolition of more than 25% of existing exterior structural walls of residential units is restricted unless allowed by local ordinance or if the site has not been tenant-occupied in the past 3 years.
What are the rental regulations?
Short-term rentals of 30 days or less are not allowed.
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 refers to adhering to set procedures to simplify the issuance of permits without discretionary reviews or public hearings, designed to speed up the process. However, approvals for lot divisions could still require an extended timeframe, potentially up to 1 and a half years.
What are objective standards?
"Objective zoning standards," "objective subdivision standards," and "objective design review standards" remove subjective judgments by government officials. They rely on standardized metrics accessible to developers and officials before submission, ensuring consistent and reliable project evaluations. This provides homeowners with clear and predictable guidelines for assessing their proposals.
What are the steps to get the permits?
To obtain SB 9 permits in Woodside, follow these steps:
- Applicability and Review Process:
Ensure your project meets specific criteria such as being within a single-family residential zone, not on prime farmland, not in protected wetlands or conservation areas, and complying with fire hazard zones and other environmental considerations.
- Parcel Map Requirements:
Prepare a parcel map by a licensed land surveyor or civil engineer. It must include detailed information such as lot boundaries, drainage facilities, easements, natural features, utility lines, and proposed lot sizes and configurations.
- Site Plan Exhibit Requirements:
Submit a site plan exhibit showing major natural features, existing structures, utilities, drainage, grading plans, and environmental considerations.
- Certification and Deed Restrictions:
Include necessary certificates on the parcel map, obtain approvals from relevant agencies, and record deed restrictions ensuring compliance with SB 9 development standards, including owner occupancy requirements.
- Review and Approval Process:
Submit your complete application to the Planning Department. The town and applicable agencies will review it within 60 days for compliance with objective standards. If approved, record the parcel map with the County of San Mateo.
- Notice and Finalization:
Notify adjacent property owners, finalize any outstanding requirements like notarized signatures, and ensure timely recordation of all documents.
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 $2,156,592. The expected value of the completed property in Woodside is about $5,200,000, resulting in a return on investment (ROI) of [($5,200,000 - $2,156,592) / $2,156,592] * 100 = 141%.
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 $3,461,960. The anticipated market value for these duplexes in Woodside is $8,320,000, leading to an ROI of 140%.
Conclusion:
In Woodside City, applying SB-9 for property development can result in substantial financial benefits, positioning it as a top spot for anyone thinking about starting new housing projects.