City of Beverly Hills
All You Need to Know About Building on Properties in Beverly Hills Under SB-9
Using SB-9 for real estate in Beverly Hills gives homeowners a practical way to lower their mortgage. If you have extra funds, you can build additional units to rent out or house family members while living in your main residence. To get started with an SB-9 project, check if your property qualifies, understand the regulations, and choose the SB-9 option that best suits your financial plans in Beverly Hills.
What is SB-9 and how does it apply to the properties in Beverly Hills City?
What is SB-9?
SB-9 or Senate Bill 9, is a California law designed to simplify the approval process for certain housing projects. It requires local governments to expedite the approval of these developments through a faster process, avoiding lengthy environmental reviews like CEQA or conditional use permits from commissions such as the Planning Commission or Historic Preservation Commission. Participation is optional, based on meeting specific eligibility criteria.
How does SB-9 apply to properties in Beverly Hills?
In Beverly Hills, SB-9 applies through the city's Municipal Code, which outlines objective standards for approving urban lot splits and the construction of up to two residential units per lot in single-family zones. This law is aimed at making the process more efficient while still maintaining the character of neighborhoods and meeting the state's housing goals.
What can homeowners build under SB-9 or Beverly Hills’ HOME Act?
Urban Lot Split under SB-9
SB-9 allows dividing one single-family residential property into two lots through an urban lot split.
Under this option, you could have the following unit configurations:
Not sure if your property is located in a Single-family zoned area?
Two Primary Units under SB-9
A two-primary unit is a housing development proposal for constructing two housing units or adding another unit to an existing home in a single-family residential zone.
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?
Under the City’s SB-9, new units are restricted to a maximum of 800 square feet each. However, under California's SB-9, there are no size restrictions, allowing for units larger than 800 square feet.
You can build two units per lot on a property created through an urban lot split, which may include ADUs and JADUs.
What are the setbacks?
SB-9 requires that new units maintain a minimum setback of 4 feet from all side and rear property lines.
What is the parking requirement under SB-9?
Each new unit is required to provide one parking space unless the property is within half a mile of a high-quality transit corridor, a major transit stop, or if there is a car-sharing service available within a block.
Parking cannot be located within the front setback. For rear lots, parking access should be provided through an adjacent alley if available.
What are the lot constraints under SB-9?
Beverly Hills SB-9 regulations impose specific restrictions on lot divisions. New lots should be at least 1,200 square feet, resulting in nearly equal size, between 48% and 52% of the original lot area. Flag lots are not allowed adjacent to an alley, on a corner, or classified as a through lot.
The new lot's width should be at least 75% of the original lot's width. Once a property has been split through this method, it cannot be subdivided again.
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 within single-family residential zones.
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 sign an affidavit confirming that they plan to live in one of the units as their primary unit for at least 3 years after the urban lot split is approved.
What are the rental regulations?
Under SB-9, short-term rentals are not allowed. All units, including ADUs, should be rented for periods longer than 30 days.
What is the difference between SB-9 and SB-684?
SB-684 is newer legislation compared to SB-9 and streamlines the development process for 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 and vacant lots within single-family zones. Additionally, SB-684 does not have the same 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 can you get the permits under SB-9 or the HOME Act?
Does SB-9 projects qualify for a ministerial approval process and what does it mean
Yes. Ministerial approval simplifies housing projects by following clear rules and guidelines. Unlike traditional methods involving subjective judgment, ministerial approval is based on fixed criteria, speeding up the process for eligible projects. This allows developers to skip long environmental reviews (like CEQA) and public hearings, making it easier to get permits. While this process is more efficient, approval for lot splits could 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 predefined rules that do not rely on personal judgment. These standards are based on measurable criteria, giving homeowners and developers clear expectations. Eliminating subjective decisions from local officials makes the process more predictable and fairer for all parties involved.
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 800 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 800-square-foot minimum.
What are the steps to get the permits?
To get the permits, follow these steps:
1. Understand the Ordinance: Start by reviewing the local rules and guidelines related to housing developments and lot splits under SB 9.
2. Prepare Project Plans: Create comprehensive plans for your project, including site layouts, floor designs, elevations, and any required documentation.
3. Submit Your Application: Fill out the city’s permit application form, attach all necessary documents, and pay the relevant fees.
4. City Review: City officials will assess your application and plans to ensure they meet local and state regulations.
5. Address Feedback: If issues arise during the review, you may need to revise your plans or provide extra information to satisfy the city's requirements.
6. Receive Approval: Once all criteria are met, and your project is approved, you’ll receive the necessary permits to move forward.
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 recommend building a three-story duplex with an overall area of 4,000 square feet, plus an additional Accessory Dwelling Unit (ADU) of 1,000 square feet. The estimated total expense for this project, including construction, permits, and professional fees (excluding land costs), is $2,197,778. The anticipated market value for this completed property in Beverly Hills is around $6,500,000, resulting in a return on investment (ROI) of [($6,500,000 - $2,197,778)/$2,197,778]*100 = 196%
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
In this alternative, we propose subdividing a lot to build two separate three-story duplexes, each with an area of 4,000 square feet. The projected total cost for this development, not including land acquisition, is $3,496,437. The expected market value for these duplexes in Beverly Hills is $10,400,000, resulting in an ROI of 197%.
Conclusion:
SB-9 developments in Beverly Hills can provide substantial financial benefits, making the location a highly favorable and appealing choice for real estate projects.
See how much it will cost you to improve your property per SB-9
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