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All You Need to Know About Building on Properties in Bell Under SB-9
Homeowners in Bell can use SB-9 to help cover much of their mortgage by adding extra units to their property. With the funds from this, they could either rent out the new units or use them to house family members while staying in their main home. For a successful SB-9 project, it’s essential to confirm if the property qualifies, understand the relevant rules, and choose the SB-9 approach that offers the best financial advantage.
What is SB-9 and how does it apply to the properties in Bell?
What is SB-9?
SB-9, or Senate Bill 9, is created to make it easier for certain housing projects to get approved in California. It instructs local governments to fast-track these types of developments, bypassing lengthy environmental reviews or CEQA and other typical approvals from groups like the Planning Commission or Historic Preservation Commission.
How does SB-9 apply to properties in Bell?
In Bell, SB-9 opens up options for expanding residential spaces and dividing lots. Homeowners can split their properties and add new housing units, provided they follow the city's specific rules and requirements.
What can homeowners build under SB-9 or Bell’s HOME Act?
Urban Lot Split under SB-9
An urban lot split allows homeowners with single-family properties to divide their lot into two separate lots. Each of these lots can then be developed independently, offering more flexibility in building additional homes.
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 Development under SB-9
A Two-Unit Development allows homeowners to build up to two houses on land that is designated for single-family homes.
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 Bell, Newly constructed residential units should be at least 800 square feet in size. California law does not set a maximum size limit for these units, allowing builders the option to make them larger if desired.
An urban lot split allows two housing units to be built on one property, which can also include ADUs and JADUs.
What are the setbacks?
In Bell, the minimum setback requirement is 4 feet from the side and rear property lines. If a new structure is built in the same location and dimensions as an existing one, no setbacks are needed.
What is the parking requirement under SB-9?
Each new unit may need one off-street parking space. However, parking is not required if:
- The property is within a half-mile walking distance of a high-quality transit corridor or major transit station.
- A car-share vehicle is available within a block of the property.
What are the lot constraints under SB-9?
A property can be divided into two lots of nearly equal size, with the smaller lot covering no less than 40% of the original property. Both new lots should be at least 1,200 square feet.
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 single-family zoning districts.
Can you disregard the environmental restrictions on the lot?
No, SB-9 cannot be applied to land in environmentally sensitive areas, such as wetlands, hazardous waste sites, flood zones, conservation lands, or habitats for endangered species. These protections are intended to protect these areas from potential development impacts.
Can you bypass the Historical Preservation limitations?
No, new developments should comply with Historical Preservation rules unless it’s verified that the property is not in a historic district, on the State Historic Resources Inventory, or recognized as a local landmark or historic site.
Is it allowed to demolish an affordable unit?
No, under SB-9, you cannot demolish or alter any housing protected by laws or agreements that ensure affordability for moderate, low, or very low-income families.
Is it allowed to build on a property in Coastal Zones?
Yes, construction in Coastal Zones is possible but should follow the California Coastal Act of 1976, often requiring a coastal development permit. This includes following guidelines to protect coastal resources and minimize environmental impact, as outlined by the Coastal Act and local rules.
Is it allowed to build in High-Risk Areas?
It depends. Building in high-risk zones, such as wildfire-prone areas, earthquake fault zones, and flood-prone locations like the 100-year floodplain, is generally discouraged. Exceptions may apply for certain flood areas, provided they meet FEMA or National Flood Insurance Program standards.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes, the homeowner should live on the property. For an urban lot split, the applicant has to sign a statement agreeing to use one of the homes as their main residence for at least 3 years after the lot split is finalized.
What are the rental regulations?
Any units built through SB-9 should be rented out for a minimum of 30 days.
Are existing tenants’ rights protected?
Yes, tenants' rights are protected under specific conditions to prevent the loss of affordable housing. These protections ensure that:
- Rent-controlled properties or homes with tenants from the last 3 years cannot be demolished or altered.
- The property cannot be one where tenants were removed from leases within the past 15 years.
- The new development cannot demolish more than 25% of the building's exterior walls.
What is the difference between SB-9 and SB-684?
SB-684 is a more recent law that allows up to 10 housing units to be built on urban lots smaller than 5 acres. Unlike SB-9, which only applies to single-family homes, SB-684 can be used for multi-family housing and vacant lots in single-family neighborhoods. One key benefit of SB-684 is that it doesn't limit who can own the property after construction.
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 go through a ministerial approval process. This means the development is approved based on clear rules, avoiding delays caused by subjective decisions. The process is faster because it bypasses long environmental reviews and public hearings. However, it may still take up to 18 months to finalize a lot split.
What are objective standards?
"Objective zoning standards," "objective subdivision standards," and "objective design review standards" are clear, measurable guidelines that developers and city officials can follow when reviewing projects. These standards remove personal judgment from the process, ensuring consistency and fairness in how projects are evaluated. They give homeowners clear rules to follow when planning their developments.
What types of objective standards qualify for a waiver under SB-9?
SB-9 allows certain objective standards to be waived, such as:
- Setback rules that prevent the construction of two units.
- Setback requirements of more than 4 feet from side and rear property lines that could limit building two units.
What are the steps to get the permits?
To get permits for an SB-9 project in Bell, follow these steps:
1. Check Local Rules: Review the city's zoning laws and any specific rules for accessory units and housing projects.
2. Make Sure It Follows the Rules: Confirm that your project complies with all requirements, such as rent control, limits on demolitions, location rules, and any special regulations for historic areas.
3. Prepare Your Documents: Gather all the necessary paperwork for your urban lot split or housing development application.
4. Submit Your Application: Send your completed application to the local agency for approval.
5. Request an Extension (if needed): If your tentative map is about to expire, ask the appropriate agency for an extension.
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 breakdown looks at two possible scenarios to help understand costs, property values, 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, the plan is to build a three-story duplex that totals 4,000 square feet, plus a 1,000-square-foot Accessory Dwelling Unit (ADU). The total cost for construction, permits, and professional services (excluding the cost of the land) is estimated to be $2,162,729. After the property is completed in Bell, it is expected to be worth around $3,385,000, resulting in an ROI of [($3,385,000 - $2,162,729)/$2,162,729]*100 = 57%
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
In the second scenario, the lot would be divided, and two separate three-story duplexes (each 4,000 sq. ft.) would be built. The total estimated cost for this project, excluding land costs, is $3,469,283. The expected market value for both duplexes in Bell combined is $5,416,000, providing an ROI of 56%.
Conclusion:
SB-9 projects in Bell offer a modest and positive return on investment (ROI), making it a steady and worthwhile option for real estate development, whether through lot splitting or new construction.
See how much it will cost you to improve your property per SB-9
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