City of Artesia
All You Need to Know About Building on Properties in Artesia Under SB-9
Applying SB-9 for real estate projects in Artesia City is a great way for homeowners to get money to pay down a big part of their loan. If you have extra funds, you can add more units to earn rental income or create space for family members while still living in your main home. To make an SB-9 project successful, start by checking if your property qualifies, understanding the rules, and picking the SB-9 option that provides the best financial benefits for your property in Artesia City.
What is SB-9 and how does it apply to the properties in Artesia City?
What is SB-9?
SB-9, also known as Senate Bill 9, is intended to make it easier and faster to get approval for some residential projects in California. It directs local governments to speed up the approval process by using a streamlined approach, bypassing the requirement for extensive environmental reviews, Conditional Use Permits, and similar approvals from planning or historic preservation boards. Participation in this program is optional and requires meeting certain criteria.
How does SB-9 apply to properties in Artesia?
In Artesia, SB-9 offers significant opportunities for expanding housing options. It allows property owners to split lots and build additional two units, potentially increasing housing density and investment returns. This provision can help streamline the development of more residential units on existing properties.
What can homeowners build under SB-9 or Artesia’s HOME Act?
Urban Lot Split under SB-9
An urban lot split divides a single-family residential property into two separate lots.
Under this option, you could have the following unit configurations:
Not sure if your property is located in a Single-family zoned area?
Two-Unit Projects under SB-9
A two-unit project under SB-9 is a housing development where two dwelling units are built on a single-family lot, whether as a new construction or an addition to an existing home.
Under this option, you could have the following unit configurations:
How large can each new unit be, and how many can you have per lot?
Artesia's SB-9 regulations require new residential units to be between 500 and 800 square feet, but SB-9 per State of California offers more flexibility, allowing for larger units.
An urban lot split allows you to have two units on a single property, including ADUs or JADUs.
What are the setbacks?
New constructions require a minimum distance of 4 feet from side and rear lot lines, with front setbacks complying with local zoning or HOA guidelines. Existing structures or those built in the same location are exempt from these rules.
What is the parking requirement under SB-9?
SB-9 requires each new primary dwelling unit to have at least one off-street parking space. Exceptions are possible if the lot is within a half-mile of various transit options, such as bus service routes, transit stations, ferry terminals, or major bus intersections. It also applies if the site is within one block of a car-share vehicle location.
What are the lot constraints under SB-9?
For a lot to qualify for a lot split under SB-9, it should be at least 2,400 square feet. After splitting, each new lot should be at least 1,200 square feet. Additionally, the size of each new lot needs to be between 40% and 60% of the original lot's area.
Development Analysis calculates the max size under SB-9 for the highest return.
Who and which properties are eligible for SB-9 or the HOME Act?
Which zoning designations are eligible for SB-9?
Artesia's under SB-9 applies to properties in single-family residential areas.
Can you disregard the environmental restrictions on the lot?
No, environmental restrictions cannot be ignored. Properties located in sensitive environmental areas—such as wetlands, hazardous waste sites unless approved for residential use, floodways, conservation zones, and habitats for protected species—are not eligible for exemption. These restrictions protect important ecological areas from the impacts of development.
Can you bypass the Historical Preservation limitations?
No, Historical Preservation rules cannot be bypassed. The lot cannot be a historic property or located in a historic district listed on the State Historic Resources Inventory. Additionally, it should not be designated as a city or county landmark or part of a historic district by ordinance.
Is it allowed to demolish an affordable unit?
No. It is not allowed to demolish or alter housing units that are subject to agreements or regulations ensuring affordable rents for moderate, low, or very low-income individuals and families.
Is it allowed to build in High-Risk Areas?
Possibly. Building in high-risk areas may be possible but comes with strict conditions:
- In very high fire hazard zones, construction is allowed only if the site meets all required fire safety standards.
- Construction in earthquake fault zones is allowed only if it follows seismic safety building codes.
- Building in flood hazard areas is allowed if the site has a Letter of Map Revision from FEMA or meets National Flood Insurance Program criteria.
- In regulatory floodways, construction is allowed only if the site has a no-rise certification.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes, the applicant for an urban lot split is required to sign a statement agreeing to live in one of the new dwelling units as their primary residence for at least 3 years after the project is approved.
What are the rental regulations?
Short-term rentals are not allowed. No dwelling unit on the property can be rented for less than 30 days.
Are existing tenants’ rights protected?
Yes. The development cannot include demolishing or altering housing that is under rent or price control, housing that was taken off the rental market under the Ellis Act within the past 15 years, or housing occupied by a tenant in the last 3 years. Also, demolishing up to 25 percent of the existing exterior walls of a dwelling is allowed only if the property has not been rented in the last 3 years.
What is the difference between SB-9 and SB-684?
SB-684 is a more recent legislation than SB-9 and simplifies the process for developing up to 10 housing units on urban lots under 5 acres. Unlike SB-9, SB-684 is relevant for properties located in multi-family zoning districts or vacant lots in single-family zones. Moreover, SB-684 does not impose the same ownership limitations that SB-9 does.
Below we compared SB-9 and SB-684 for you to understand the development framework outlined by each bill.
How to get permits under SB-9 or the HOME Act?
Does SB-9 projects qualify for a ministerial approval process and what does it mean?
Yes, projects under SB-9 can receive ministerial approval, which streamlines development by following established, objective criteria. This approach avoids subjective evaluations and minimizes delays, allowing permits to be granted without lengthy CEQA reviews or public hearings. Despite the efficiency of this process, obtaining approval for a lot split can still take as long as 1.5 years.
What are objective standards?
“Objective zoning standards”, “subdivision standards”, and “design review standards” aim to remove personal opinions from the evaluation process. These standards use fixed, measurable benchmarks that both developers and officials can refer to before submission. This ensures a consistent and reliable assessment of projects, providing homeowners with clear expectations for their proposals.
What types of objective standards qualify for a waiver under SB 9?
Under SB-9, objective standards can be waived if they prevent the construction of two units or result in a unit being less than 500 square feet. If a regulation would cause a unit to fall below this size, it can be adjusted or waived to allow the unit to meet the 500-square-foot minimum.
What are the steps to get the permits?
To get the permits, follow these steps:
1. Submit Your Application
Begin by submitting your permit application to the local authority, typically the city or local municipality.
2. Review for Completeness
The authority will check your application to ensure it’s complete and includes all necessary documents. If any information is missing, they may ask for clarification or additional materials.
3. Pay Application Fees
Depending on local rules, there might be fees associated with the permit application. These fees are usually paid when you submit your application.
4. Undergo Review
After confirming that your application is complete, it will be reviewed by the appropriate departments to ensure it meets zoning regulations, building codes, and other relevant standards.
5. Receive Approval or Denial
Once the review is done, your application will either be approved or denied. If approved, you will get the permits needed to start your project. If denied, you will receive reasons for the decision and may be able to address the issues and resubmit your application.
6. Get Your Permits
If approved, the permits will be issued, allowing you to begin work according to the approved plans.
7. Pass Compliance Inspections
During construction, building inspectors may visit to ensure that the work matches the approved plans and permits.
8. Final Approval
When construction is complete, a final inspection will be conducted. If everything meets the necessary standards, you will receive final approval, and the project will be considered complete.
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 using CityStructure Analysis
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
Entitlements and Building Permits: 6 to 9 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 an SB-9 project cost?
This analysis will examine two scenarios to evaluate expected expenses, property valuations, and potential profits for real estate projects.
Scenario 1
New 4,000 sq. ft 3-Story Duplex + 1,000 sq. ft ADU
For this scenario, we suggest constructing a three-story duplex with a total floor area of 4,000 square feet and a 1,000-square-foot Accessory Dwelling Unit (ADU). The estimated overall cost, including construction, permits, and professional services (excluding land), is $2,138,956. The anticipated market value of the finished property in Artesia is approximately $3,500,000, resulting in a return on investment (ROI) of [($3,500,000 - $2,138,956) / $2,138,956] * 100 = 64%.
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
In this second scenario, we recommend dividing the lot to build two distinct three-story duplexes, each with 4,000 square feet. The total estimated cost, not including land acquisition, is $3,449,905. The projected market value for these duplexes in Artesia is $5,600,000, leading to an ROI of 63%.
Conclusion:
SB-9 projects in Artesia show a strong return on investment, making the city a promising location for real estate development.
See how much it will cost you to improve your property per SB-9
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