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

What is SB-9?

Senate Bill 9 (SB-9) simplifies the process for certain residential projects in California. It allows local authorities to approve these projects faster by bypassing lengthy environmental reviews (CEQA) and other discretionary approvals from bodies like the Planning Commission or Historic Preservation Commission. Participation is optional but requires meeting specific criteria.

How does SB-9 apply to properties in Calabasas?

In Calabasas, SB-9 allows property owners to divide their lots and build additional housing units. This expansion is subject to local regulations and standards set by the City of Calabasas.

What can homeowners build under SB-9 or Calabasas’ HOME Act?

Urban Lot Split under SB-9

An urban lot split divides a single property into two separate lots. Each new lot can be developed independently, allowing for new construction on each one.

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 Development under SB-9

A Two-Unit Development allows for adding up to two separate living spaces on a property zoned 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?

The newly constructed residential units are limited to a minimum size of 800 square feet. However, under California's SB 9, there are no such limitations imposed, providing developers with greater flexibility in the size of the units they can construct.

What are the setbacks?

Calabasas typically requires setbacks of up to 4 feet from the side and rear property lines. If the new structure is built in the same location and dimensions as an existing one, no setback is required.

What is the parking requirement under SB-9?

Each unit usually needs one off-street parking space. However, if the property is within a half-mile walk of a major transit stop or high-quality transit corridor, or if there's a car-share vehicle available within one block, parking requirements may not apply.

What are the lot constraints under SB-9?

SB-9 allows dividing an existing lot up to two new lots. Each new lot should be at least 40% of the original lot's size, with a minimum size of 1,200 square feet.

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 single-family residential zones.

Can you disregard the environmental restrictions on the lot?

No, properties located in environmentally sensitive areas are not eligible for SB-9. This includes locations like wetlands, hazardous waste sites, floodplains, conservation zones, and habitats for threatened species. These regulations exist to safeguard these areas from potential damage caused by development activities.

Can you bypass the Historical Preservation limitations?

No, you cannot bypass Historical Preservation rules. SB-9 projects should follow these regulations unless it can be proven that the property is not in a historic district or listed in the State Historic Resources Inventory. The property should also not be a city or county landmark or historic property.

Is it allowed to demolish an affordable unit?

No, SB-9 prohibits demolishing or altering housing that is covered by rules keeping rents affordable for moderate, low, or very low-income individuals and families.

Is it allowed to build on a property in Coastal Zones?

Yes, building in Coastal Zones is allowed but should follow the California Coastal Act of 1976. However, the exact rules and conditions depend on the act and local regulations.

Is it allowed to build in High-Risk Areas?

It varies. Generally, construction in high-risk zones is not recommended. This includes locations identified as having a high fire risk, earthquake fault lines, and regions susceptible to flooding (such as the 100-year floodplain). However, exceptions may apply for flood-prone areas that have particular designations from FEMA or that adhere to criteria specified by the National Flood Insurance Program.

What are the limitations after completing a project using SB-9?

Does the homeowner need to reside on the property?

Yes, the homeowner should reside on the property. The person applying for the lot split should provide a sworn statement that they will occupy one of the new units as their main home for at least 3 years after the lot split is approved.

What are the rental regulations?

Any unit created under this regulation needs to be rented for at least 30 days.

Are existing tenants’ rights protected?

Yes, existing tenants' rights are protected. The rules ensure that current tenants are not displaced by requiring that:

• Homes rented under certain regulations cannot be demolished or significantly altered.
• The property should not have recently withdrawn rental agreements within the past 15 years.
• No more than 25% of the existing exterior walls can be demolished.

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

SB-684 is a more recent bill than SB-9 that simplifies the process for developing up to 10 units on urban lots smaller than 5 acres. While SB-9 targets single-family lots, SB-684 applies to properties in multi-family zones or vacant lots within single-family zones. A key advantage of SB-684 is that it does not have the ownership restrictions that SB-9 imposes after construction is completed.

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 developments can be approved through a streamlined process, making it easier to move forward by following set standards. This method removes the need for subjective evaluations, which helps prevent delays in securing permits. It also avoids lengthy CEQA reviews and public hearings. However, despite this faster approach, final approval for a lot split might 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 clear, measurable rules used to evaluate housing projects. These standards are based on specific criteria that everyone can access before starting the project, ensuring fair and consistent evaluations without subjective judgments. They help homeowners know exactly what is needed for their proposals.

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

SB-9 allows waivers for zoning, subdivision, and design standards if they prevent building two units or reduce unit sizes below 800 square feet.

What are the steps to get the permits?

To get permits under SB 9, follow these steps:

1. Check Local Regulations: Start by reviewing local planning and zoning laws and any rules about accessory dwelling units and housing developments. Understanding these rules is important for making sure your project meets all requirements.

2. Ensure Compliance: Make sure your proposed project fits with all local regulations. This includes checking on things like rent limits, demolition restrictions, site requirements, and any rules for historical districts.

3. Gather Documentation: Collect all the documents needed for your application. This may include architectural plans, environmental assessments, and financial statements.

4. Submit Your Application: Turn in your completed application to the local authority for ministerial approval. This officially starts the review process and moves you closer to getting the necessary permits.

5. Request a Tentative Map Extension (If needed): If your project needs a tentative map extension, request one from the relevant body. This helps keep your project on track and in line with regulatory deadlines.

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 case, we suggest constructing a three-story duplex with a total floor area of 4,000 square feet and an additional 1,000-square-foot Accessory Dwelling Unit (ADU). The estimated total cost for this development, including all construction, permits, and professional fees (excluding land expenses), is $2,170,739. The projected market value for this completed property in Calabasas is approximately $4,000,000, which translates to a return on investment (ROI) of [($4,000,000 - $2,170,739)/$2,170,739]*100 = 84%

Scenario 2

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

For this option, we recommend dividing a lot to construct two separate three-story duplexes, each with a total area of 4,000 square feet. The estimated overall cost for this project, excluding land costs, is $3,473,701. The anticipated market value of these duplexes in Calabasas is $6,400,000, resulting in an ROI of 84%.

Conclusion:

Implementing SB-9 projects in Calabasas has the potential to deliver significant economic advantages, positioning the area as an excellent and desirable option for real estate investments.

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

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Resources

Calabasas Municipal Code