City of Baldwin Park
All You Need to Know About Building on Properties in Baldwin Park Under SB-9
Using SB-9 for property development in Baldwin Park City is an effective strategy for homeowners to access funds to decrease their mortgage debt. With additional capital, you can also construct more units to generate rental income or accommodate extended family members, while still residing in your primary home. To ensure the success of an SB-9 project, begin by determining your eligibility, understanding the applicable regulations for your property, and selecting the SB-9 option that provides the greatest financial benefit for properties in Baldwin Park City.
What is SB-9 and how does it apply to the properties in Baldwin Park City?
What is SB-9?
SB-9, or Senate Bill 9, aims to simplify the approval process for certain housing projects in California by streamlining local approvals. This law enables cities to fast-track these projects, removing the need for lengthy environmental reviews (CEQA) or discretionary approvals from bodies like the Planning Commission. While participation is optional for homeowners, properties should meet specific criteria to be eligible.
How does SB-9 apply to properties in Baldwin Park?
In Baldwin Park, SB-9 allows eligible homeowners to divide their properties into two lots and build up to two housing units on each. This could result in four total units, while following specific guidelines, including minimum lot size rules and conformity with zoning laws.
What can homeowners build under SB-9 or Baldwin Park’s HOME Act?
Urban Lot Split under SB-9
Under SB-9’s urban lot split, a property zoned for a single-family home can be divided 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?
Urban Development Units (Two-Unit Development) under SB-9
Urban development units or two-unit developments consist of two dwelling units created on a single-family lot, either through new construction or by adding 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?
SB-9 in Baldwin Park requires that new residential units be at least 500 square feet, while California state law allows units of any size.
An urban lot split allows for the construction of two units on a single property, including ADUs and JADUs.
What are the setbacks?
Interior sides and street sides require at least 4 feet, as does the rear of the lot.
What is the parking requirement under SB-9?
SB-9 requires one parking space per unit. New units can have parking in a garage (either attached or detached) or an open space on the lot. Tandem parking is not allowed; each spot should be independently accessible.
What are the lot constraints under SB-9?
SB-9 sets a maximum lot coverage of 45% for all structures. When splitting a lot, it can be divided into two nearly equal parcels. One lot should be at least 40% of the original area and a minimum of 1,200 square feet. The original lot should be at least 2,400 square feet, with each split lot requiring a street frontage of at least 9 feet for narrow lots (50 feet or less) and 12 feet for wider lots.
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 located in R-1 zoning districts, designated for single-family homes.
Can you disregard the environmental restrictions on the lot?
No, SB-9 in Baldwin Park protects areas such as wetlands, and hazardous waste sites unless proper safety measures are provided, floodplains, conservation zones, and habitats for protected species. These limitations help preserve environmentally sensitive zones from development.
Can you bypass the Historical Preservation limitations?
No, SB-9 follows Historical Preservation rules. Development cannot occur on properties in historic districts, those listed on the State Historic Resources Inventory, or city landmarks, preserving historically significant areas.
Is it allowed to demolish an affordable unit?
No, in Baldwin Park, demolishing or altering housing that is rent-controlled or designated as affordable for moderate, low, or very low-income families is prohibited under SB-9.
Is it allowed to build on a property in Coastal Zones?
Baldwin Park’s SB-9 does not specify rules for coastal zones, which often have stricter regulations. For clarity, it's best to contact the local planning department.
Is it allowed to build in High-Risk Areas?
Possibly. Construction is restricted in areas with high risks, such as earthquake fault zones, or flood-prone zones, to minimize the impact of natural disasters.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes, the homeowner is required to live on the property for an urban lot split project. Applicants should submit an affidavit stating they will occupy one of the units as their primary residence for at least 3 years after the final parcel map is recorded.
What are the rental regulations?
Short-term rentals are not allowed. Any unit on the property should be rented for more than 30 days.
Are existing tenants’ rights protected?
Yes, existing tenants' rights are protected. Developments cannot involve demolishing or altering housing that is rent-controlled, occupied by tenants within the past 3 years, or would result in more than 25% of the exterior structural walls being removed. Properties withdrawn from rental under the Ellis Act in the last 15 years are also safeguarded from demolition.
Can condominiums be proposed as part of my Urban Lot Split application?
No, condominiums cannot be included in an Urban Lot Split. The regulations do not allow for condominium airspace divisions or common interest developments on urban development units, or lots created through such splits.
What is the difference between SB-9 and SB-684?
SB-684 is a newer law than SB-9 that simplifies the process for building up to 10 housing units on urban lots smaller than 5 acres. Unlike SB-9, which is limited to certain properties, SB-684 applies to multi-family zones and vacant lots in single-family areas. Furthermore, SB-684 removes 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 can obtain ministerial approval, which streamlines the development process by following specific, objective criteria. This approach removes the need for subjective evaluations and shortens delays, allowing for the issuance of permits without the lengthy requirements of CEQA reviews or public hearings. Despite this efficiency, gaining approval for a lot split can still take as long as one and a half years.
What are objective standards?
"Objective zoning standards," "objective subdivision standards," and "objective design review standards" are standards that use measurable criteria known beforehand by both developers and officials, making the evaluation process predictable.
What types of objective standards qualify for a waiver under SB-9?
Under SB-9, objective standards may be waived if they obstruct the development of two units or lead to a unit being smaller than 500 square feet or having side and rear setbacks of less than 4 feet. If a regulation causes a unit to fall below these requirements, it can be modified or exempted to ensure compliance with the 500-square-foot minimum.
What are the steps to get the permits?
To get permits for an urban development unit or an urban lot split, here’s the process:
1. Prepare and Submit Application: Owners need to submit a detailed application with all required plans and documents to the city or local authority.
2. Review and Compliance Check: The submitted application is reviewed to confirm it meets zoning rules and development guidelines.
3. Evaluate Exceptions: If there are requests for any exceptions to standard requirements, they are assessed according to the outlined priorities.
4. Record Deed Restriction: A deed restriction should be recorded by the owner, specifying the terms of the project.
5. Approval and Permit Issuance: Once the review is completed and everything is in order, permits are approved, allowing construction to begin.
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 scenario, we propose constructing a 4,000-square-foot, three-story duplex along with a 1,000-square-foot Accessory Dwelling Unit (ADU). The total projected cost, including construction, permits, and professional fees (excluding land costs), is $2,141,576. The estimated market value of the completed property in Baldwin Park is around $2,250,000, leading to an ROI of [($2,250,000 - $2,167,306)/$2,141,576]*100 = 5%
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
In the second scenario, we plan to subdivide a lot and build two new 4,000-square-foot, three-story duplexes. The estimated total investment for this project, excluding land acquisition costs, is $3,453,525. The projected market value for these duplexes in Baldwin Park is $3,600,000, resulting in an ROI of 4%.
Conclusion:
SB-9 projects in Baldwin Park come with the risk of an ROI below 50%. To mitigate this risk, additional financial precautions should be taken, or the land should be acquired at a very favorable price.
See how much it will cost you to improve your property per SB-9
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