City of Azusa
All You Need to Know About Building on Properties in Azusa Under SB-9
Using SB-9 for real estate projects in Azusa City is a great way for homeowners to get money to pay down a big portion of their loans. If you have extra funds, you can add more units to earn rental income or make space for family members while still living in your main house. To succeed with an SB-9 project, start by figuring out if your property is eligible, understanding how the rules affect it, and choosing the SB-9 option that makes the most financial sense for your property in Azusa City.
What is SB-9 and how does it apply to the properties in Azusa City?
What is SB-9?
Senate Bill 9 streamlines the approval process for certain housing projects in California by directing local governments to fast-track approvals through a different method. This approach bypasses lengthy environmental reviews (CEQA), conditional use permits, and other discretionary approvals from bodies like the Planning Commission or Historic Preservation Commission. While joining the program is optional, projects must meet specific requirements to qualify.
How does SB-9 apply to properties in Azusa?
In Azusa, SB-9 allows property owners to take advantage of urban lot splits and build additional two housing units, reducing the city's control over these developments. Projects that meet the requirements receive faster approval, with objective standards replacing lengthy discretionary reviews.
What can homeowners build under SB-9 or Azusa’s HOME Act?
Urban Lot Split under SB-9
Urban lot split under SB-9 is the process of dividing a single-family property lot 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 allows for the development of two primary housing units on a single-family property. If a primary unit is already on the lot, a second primary unit can be added.
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?
While Artesia requires a minimum of 500 square feet and a maximum of 800 square feet for new residential units under SB-9, California's SB-9 regulations allow for larger units.
An urban lot split allows for the construction of two units on a single property, including ADUs and JADUs.
What are the setbacks?
New units require a minimum setback of 4 feet from side and rear property lines, and at least 25 feet for front setbacks. If an existing legally built structure is in place, no setback is needed for a new unit in the same location and dimensions.
What is the parking requirement under SB-9?
Each new home should have at least one off-street parking space unless the lot is within half a mile of a bus route with regular 15-minute service or near a transit station, ferry terminal, or major bus routes. The parking requirement can also be waived if a car-shared vehicle is available within one block.
What are the lot constraints under SB-9?
The original lot should be at least 2,400 square feet, with each new lot no smaller than 1,200 square feet. Each resulting lot should also 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?
Properties eligible for SB-9 are those located in single-family residential zones.
Can you disregard the environmental restrictions on the lot?
No, under Azusa City's SB-9 rules, properties cannot be located on or include areas such as hazardous waste sites unless zoned for residential use or meeting state safety requirements, prime farmland, wetlands, lands under a conservation plan, protected species habitats, or those under a conservation easement.
Can you bypass the Historical Preservation limitations?
No, properties subject to SB-9 regulations in Azusa cannot be historic landmarks or located within a designated historic district. Any property listed in the State Historic Resources Inventory or classified as a historic site by local ordinance is not eligible for SB-9 benefits.
Is it allowed to demolish an affordable unit?
No, under SB-9 in Azusa, housing designated for moderate, low, or very low-income households cannot be demolished or altered.
Is it allowed to build in High-Risk Areas?
Possibly, but certain conditions apply. Properties located in high-risk areas, such as very high fire severity zones, earthquake fault zones, 100-year flood zones, or floodways, can be developed if they meet the necessary safety and building code requirements, including FEMA standards.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes, under SB-9, the homeowner applying for an urban lot split should sign a statement confirming they will live in one of the units as their main residence for at least 3 years after the split is approved.
What are the rental regulations?
Short-term rentals are not allowed. Any unit cannot be rented for less than 30 days.
Are existing tenants’ rights protected?
Yes, SB-9 protects certain housing types from being demolished or altered. This includes homes under rent control, properties removed from rental under the Ellis Act within the last 15 years, and homes that had tenants within the past 3 years.
Can condominiums be proposed as part of my Urban Lot Split application?
No. Condominium airspace divisions and common interest developments are not allowed in an Urban Lot Split application.
What is the difference between SB-9 and SB-684?
SB-684, being a newer law than SB-9, streamlines the development process for constructing up to 10 housing units on urban lots smaller than 5 acres. In contrast to SB-9, SB-684 applies to properties in multi-family zoning areas or unoccupied lots in single-family zones. Additionally, SB-684 eliminates the ownership restrictions found in SB-9.
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, SB-9 projects are eligible for ministerial approval, which simplifies the development process by adhering to clear and objective standards. This method eliminates subjective assessments and reduces wait times, enabling permits to be issued without extensive CEQA reviews or public hearings. However, even with this streamlined approach, securing approval for a lot split may still take up to one and a half years.
What are objective standards?
“Objective zoning standards”, “objective subdivision standards”, and “objective design review standards” are based on measurable criteria. These standards are not subject to personal opinions or interpretation by officials, ensuring consistency and fairness in the decision-making process.
What types of objective standards qualify for a waiver under SB-9?
Objective standards may be waived under SB-9 if they hinder the building of two units or cause a unit to be smaller than 500 square feet. If a rule leads to a unit being less than this minimum size, it can be modified or exempted to ensure compliance with the 500-square-foot requirement.
What are the steps to get the permits?
To get permits for SB-9 developments, property owners should follow these steps:
1. Adopt Standards: The city or county needs to set clear rules for design, development, and subdivision, covering aspects like lot layout, unit size, setbacks, height, landscaping, and architectural features.
2. Emergency Ordinance: Given the urgency of SB 9, local governments might pass an emergency ordinance to manage urban lot splits and two-unit projects. This requires a fast-tracked approval process with a four-fifths majority vote from the City Council.
3. Environmental Compliance: The new ordinance is usually exempt from detailed environmental reviews under the California Environmental Quality Act (CEQA), making the approval process smoother.
4. Implementation: Once the ordinance is approved, it goes into effect immediately. The City Clerk is responsible for publishing it in a local newspaper within a set period.
5. Record-Keeping: The ordinance will include rules for keeping records and documenting the process.
6. Notice of Exemption: The City Council will instruct staff to file a notice of exemption with the county clerk’s office within a specified timeframe.
7. Final Approval: After completing these steps, the ordinance is officially adopted and approved by the City Council.4o mini
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
In this first scenario, we recommend developing a three-story duplex with a total area of 4,000 square feet and a 1,000-square-foot Accessory Dwelling Unit (ADU). The estimated total expenditure, covering construction, permits, and professional fees (excluding land costs), is $2,159,951. The anticipated market value for the finished property in Azusa is around $2,500,000, translating to an ROI of [($2,500,000 - $2,159,951)/$2,159,951]*100 = 16%
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
In the second scenario, we suggest subdividing a lot and constructing two separate three-story duplexes, each with a total area of 4,000 square feet. The projected total cost for this development, excluding land acquisition, is $3,466,261. The estimated market value for these duplexes in Azusa is $4,000,000, resulting in an ROI of 15%.
Conclusion:
Pursuing SB-9 projects in Azusa might result in an ROI below 50%. To reduce this risk, consider implementing additional financial measures or securing the land at a significantly lower cost.
See how much it will cost you to improve your property per SB-9
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