What is SB-9 and how does it apply to the properties in Avalon City?

What is SB-9?

Senate Bill 9 (SB-9) simplifies the approval process for certain housing developments in California. It requires local governments to fast-track approval for these projects without requiring detailed environmental reviews (CEQA), conditional use permits, or other discretionary approvals from bodies like the Planning Commission or Historic Preservation Commission. While participation is optional, specific conditions should be met to qualify.

How does SB-9 apply to properties in Avalon?

SB-9 affects properties in Avalon by allowing the development of two residential units on existing single-family lots, including options like urban lot splits. This law simplifies the approval process for eligible housing projects, helping to address the housing shortage and promote higher-density development. It allows for constructing additional units while ensuring compliance with standards like lot size minimums and zoning rules.

What can homeowners build under SB-9 in Avalon?

Urban Lot Split options under SB-9

An urban lot split involves dividing a single property into two separate lots. This is only applicable to properties designated for single-family residences.

Under this option, you could have the following unit configurations:

Not sure if your property is located in a Single-family zoned area?

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Two-Unit Projects under SB-9

A two-unit project refers to the construction of primary dwelling units on a single-family lot. If a primary dwelling is already present, a second primary unit can be added to the same property.

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?

In Avalon, units under SB-9 can range from 500 to 800 square feet. However, California law under SB-9 permits units of any size, overriding local limits. For pre-existing primary dwellings over 800 square feet, no expansion is allowed. If the primary dwelling is under 800 square feet, it can be expanded to 800 square feet after an urban lot split.

Each lot created through an urban lot split under SB-9 can have up to two units, including ADUs and JADUs.

What are the setbacks?

A four-foot setback is required for the side and rear property lines. No setback is needed for existing legally established structures or new ones built in the same location and with the same dimensions as the existing structure.

What is the parking requirement under SB-9?

Each new primary dwelling unit should have at least one off-street parking space unless:

(1) The lot is within half a mile of:

• A corridor with bus service every 15 minutes during peak hours, or
• A rail or bus rapid transit station, a ferry terminal served by transit, or the intersection of two major bus routes with 15-minute service intervals during peak hours.

(2) The site is within one block of a car-share vehicle location.

What are the lot constraints under SB-9?

To qualify for a lot split, the original lot needs to be at least 2,400 square feet and cannot have been established through a prior urban lot split. Each newly created lot should be at least 1,200 square feet and fall within 40% to 60% of the total area of the original lot.

Development Analysis calculates the max size under SB-9 for the highest return.

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Who and which properties are eligible for SB-9 or the HOME Act?

Which zoning designations are eligible for SB-9?

Properties eligible for SB-9 are located in the LD (Low-Density Residential) and Low-Intensity Recreational zones.

Can you disregard the environmental restrictions on the lot?

• No, SB-9 prohibits development on sites that are any of the following:
  Prime farmland, farmland of statewide importance, or land designated for agricultural protection or preservation.
• Wetlands.
• Hazardous waste sites that haven't been cleared for residential use.
• Areas designated for conservation in an adopted natural community conservation plan, habitat conservation plan, or other protection plans.
• Habitat for protected species.
• Land with a conservation easement.

Can you bypass the Historical Preservation limitations?

No, the property cannot be classified as historic or located within a historic district listed in the State Historic Resources Inventory. Additionally, the lot cannot be designated as a City or county landmark or as a historic property or district by ordinance.

Is it allowed to demolish an affordable unit?

No, demolition or alteration in Avalon is not allowed for housing that is income-restricted for moderate, low, or very low-income households.

Is it allowed to build in High-Risk Areas?

It depends. Building in high-risk areas may be allowed under certain conditions, specifically if the site is not located in any of the following:

• A very high fire hazard severity zone, unless it complies with all required fire-hazard mitigation measures.
• A delineated earthquake fault zone, unless it meets applicable seismic protection standards.
• A 100-year flood hazard area, unless it has either received a Letter of Map Revision from FEMA or meets FEMA's floodplain management criteria.
• A regulatory floodway, unless it has received a no-rise certification for all development.

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 should submit an affidavit confirming their intention to occupy one of the units on the newly created lots as their primary residence for at least 3 years following the approval of the urban lot split.

What are the rental regulations?

No unit on the property can be rented for less than 30 days.

Are existing tenants’ rights protected?

Yes, tenants' rights are protected and demolition or alteration cannot occur for:

• Housing is subject to rent or price control by a public entity.
• Housing or lots that were previously rented and withdrawn under the Ellis Act within 15 years before the application.
• Housing occupied by a tenant within the last 3 years.

Can condominiums be proposed as part of my Urban Lot Split application?

Condominium airspace divisions and common interest developments are not allowed on lots formed by an urban lot split.

What is the difference between SB-9 and SB-684?

SB-684 is a more recent legislation compared to SB-9 and simplifies the process for developing up to 10 units on urban lots under 5 acres. Unlike SB-9, SB-684 applies to properties in multi-family zoning districts or vacant lots in single-family zones. A key advantage of SB-684 is that it does not impose the ownership restrictions found in SB-9 after development.

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 go through a ministerial approval process. This method streamlines housing development by offering clear and consistent guidelines. Unlike subjective approaches, ministerial approval relies on established criteria, which helps minimize bureaucratic delays. This means projects can obtain permits without extensive CEQA reviews or public hearings. Although this process accelerates approvals, it may still take up to 1.5 years for a lot split.

What are objective standards?

"Objective standards", "zoning, subdivision", and "design review standards", aim to remove personal bias from the approval process. These standards are based on specific, measurable criteria that developers and officials can refer to when submitting projects, ensuring a consistent and predictable evaluation.

What types of objective standards qualify for a waiver under SB 9?

SB-9 permits waivers for the following standards:

• Regulations that prevent the construction of two units, each at least 500 square feet.
• Setback restrictions on existing structures that interfere with the ability to build two units.
• Setback requirements exceeding 4 feet from side and rear property lines that restrict the construction of two units.

What are the steps to get the permits?

To obtain permits under SB-9 in Avalon City, take the following steps:

1. Review Local Regulations: Examine the local Planning and Zoning Law, as well as any guidelines regarding accessory dwelling units and housing projects.

2. Confirm Compliance: Ensure your proposed project aligns with all requirements, including rental restrictions, demolition regulations, location considerations, and rules for historic districts.

3. Prepare Your Application: Collect all necessary documentation for your housing development or urban lot split application.

4. Submit Your Application: Forward your application to the planning department for ministerial approval.

5. Request Tentative Map Extension: If necessary, ask for an extension of the tentative map expiration date from the relevant legislative body or advisory agency.

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 to get your Development 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?

In this analysis, we will take a look at two scenarios to evaluate expected expenses, property assessments, 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 propose constructing a three-story duplex with a total area of 4,000 square feet, along with a 1,000-square-foot Accessory Dwelling Unit (ADU). The total cost, which includes construction, permits, and professional services (excluding land acquisition), is estimated at $2,168,386. The projected market value of the finished property in Avalon is approximately $3,250,000, resulting in a return on investment (ROI) of [($3,250,000 - $2,168,386) / $2,168,386] * 100 = 50%.

Scenario 2

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

In this scenario, we suggest dividing the lot to build two separate three-story duplexes, each with 4,000 square feet. The total estimated cost, excluding land acquisition, is $3,478,561. The expected market value for these duplexes in Avalon is $5,200,000, resulting in an ROI of 50%.

Conclusion:

SB-9 projects in Avalon City offer a modest return on investment (ROI), positioning them as a relatively cautious option for real estate development, whether via lot split or two-unit projects.

See how much it will cost you to improve your property per SB-9

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