City of Claremont
All You Need to Know About Building on Properties in Claremont Under SB-9
Using SB-9 for real estate projects in Claremont City is a great way for homeowners to get cash to pay off part of their loan, add rental units, or accommodate extended family while staying in their main home. To succeed with SB-9, homeowners should understand eligibility, property rules, and which SB-9 option is the best financial choice for their property in Claremont City.
What is SB-9 and how does it apply to the properties in Claremont City?
What is SB-9?
SB-9, or Senate Bill 9, is a California law that simplifies the approval process for certain housing projects. It directs local governments to speed up these projects using a streamlined method, avoiding the need for detailed environmental reviews and approvals from bodies like the Planning Commission or Historic Preservation Commission. Participation in SB-9 is optional and depends on meeting specific eligibility criteria.
How does SB-9 apply to properties in Claremont?
In Claremont, SB-9 offers significant opportunities for expanding housing options. It allows property owners to divide lots and build up to two additional units, which can enhance housing density and improve investment returns. However, property owners should still follow Claremont's local regulations and zoning laws, including those related to historical preservation and coastal areas.
What can homeowners build under SB-9 or Claremont’s HOME Act?
Urban Lot Split under SB-9
With SB-9, homeowners can split a single-family lot into two separate lots, each of which can accommodate up to two units.
Under this option, you could have the following unit configurations:
Not sure if your property is located in a Single-family zoned area?
Two-Dwelling Units under SB-9
Under SB-9, you can build two separate units on a single-family lot or add another unit to an existing property.
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 Claremont, new residential units need to be at least 800 square feet in size. However, California's SB 9 does not impose any such restrictions, offering developers more freedom in determining the size of the units they build.
A lot created through an urban lot split is allowed to have two units, which can also include ADUs and JADUs.
What are the setbacks?
The city requires setbacks of up to 4 feet from the side and rear property lines. If a new building is identical to the size and location of an existing one, no setbacks are required.
What is the parking requirement under SB-9?
Each unit should have one off-street parking space under SB-9. However, this rule doesn't apply if the property is within half a mile of a high-quality transit corridor or major transit stop, or if there's a car share vehicle available within one block of the property.
What are the lot constraints under SB-9?
SB-9 requires dividing a lot into two of similar size, ensuring neither is smaller than 40% of the original parcel's area. Each new lot should be at least 1,200 square feet, and should not have been previously divided through an urban lot split.
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?
In Claremont, SB-9 applies to properties located in R1 zoning districts, which are designated for single-family homes.
Can you bypass the Historical Preservation limitations?
No, you cannot bypass Historical Preservation rules. The property is required to be outside of historic districts and not listed on the State Historic Resources Inventory. It also should not be designated as a landmark or historic property by city or county regulations.
Is it allowed to demolish an affordable unit?
No, demolishing affordable units is not allowed. SB-9 restricts the demolition or alteration of housing with restrictions that keep rents affordable for moderate, low, or very low-income families.
Is it allowed to build on a property in Coastal Zones?
Yes, you can build on properties in Coastal Zones under SB-9, but you need to follow the California Coastal Act of 1976. This requires obtaining a coastal development permit and following policies aimed at protecting coastal resources. Rules may vary based on the Coastal Act and local regulations.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes, homeowners need to live on the property. To proceed with an urban lot split, homeowners should sign an affidavit stating their intent to reside in one of the housing units as their primary residence for a minimum of 3 years from the approval date of the urban lot split.
What are the rental regulations?
According to SB-9, any new unit should be rented for more than 30 days, so short-term rentals are not allowed.
Are existing tenants’ rights protected?
Yes, SB-9 protects existing tenants. The law prevents the demolition or alteration of homes with rent or price controls set by public authorities, and homes occupied by tenants within the last 3 years. The site cannot be one where rental agreements have been ended by the owner in the past 15 years. Additionally, the project should not involve the demolishing of more than 25 percent of the existing exterior walls.
What is the difference between SB-9 and SB-684?
SB-684, a newer legislation compared to SB-9, streamlines the process for creating up to 10 units on urban lots under 5 acres. While SB-9 focuses on single-family properties, SB-684 is relevant for multi-family zones and vacant lots in single-family areas. An important benefit of SB-684 is the absence of the ownership limitations that SB-9 requires following 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 receive approval through a streamlined process, facilitating progress by adhering to defined criteria. This approach eliminates subjective assessments, helping to avoid delays in obtaining permits. It also bypasses lengthy CEQA reviews and public hearings. However, even with this expedited method, final approval for a lot split may still take up to one and a half years.
What are objective standards?
"Objective zoning standards," "subdivision standards," and "design review standards," are set rules that eliminate personal judgment from government evaluations. These standards are based on clear, external benchmarks that developers and officials can refer to before submitting proposals. This ensures a consistent and predictable way to assess projects.
What types of objective standards qualify for a waiver under SB-9?
SB-9 allows objective standards to be waived if following them would prevent building up to two units per lot or result in units smaller than 800 square feet.
What are the steps to get the permits?
To obtain permits in Claremont, follow these steps:
1. Review Local Regulations: Check Claremont's Planning and Zoning Laws, including rules for accessory dwelling units and housing projects. Knowing these rules helps ensure your project meets all local requirements.
2. Ensure Compliance: Make sure your project meets all local regulations, including those related to rent limits, demolition rules, site specifics, and historical district guidelines.
3. Gather Required Documents: Collect all necessary paperwork for your project or lot split application. This includes architectural plans, environmental assessments, financial records, and any other relevant documents.
4. Submit Your Application: Send your completed application to the local authority for ministerial approval. This starts the official review process and moves your project forward.
5. Request an Extension if Needed: If needed, ask for a map extension from the appropriate body to stay on track with regulatory deadlines and keep your project moving.
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 propose constructing a three-story duplex with a total area of 4,000 square feet, complemented by a 1,000-square-foot Accessory Dwelling Unit (ADU). The total estimated expenditure, including construction, permits, and professional fees (excluding land), is $2,164,050. The projected market value for the completed property in Claremont is approximately $2,500,000, which leads to a return on investment (ROI) of [($2,500,000 - $2,164,050) / $2,164,050] * 100 = 16%.
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
For the second scenario, we suggest dividing the lot to build two individual three-story duplexes, each with an area of 4,000 square feet. The estimated cost, excluding land acquisition, is $3,474,776. The projected market value for these duplexes in Claremont is $4,000,000, resulting in an ROI of 15%.
Conclusion:
SB-9 projects in the City of Claremont carry the risk of a return on investment (ROI) below 50%. To mitigate this risk, you would need to take additional financial precautions or acquire the land at a very favorable price.
See how much it will cost you to improve your property per SB-9
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