City of Compton
All You Need to Know About Building on Properties in Compton Under SB-9
Using SB-9 for real estate projects in Compton City offers homeowners an effective method to reduce a substantial part of their mortgage or, if they possess extra capital, to construct additional units. This strategy can help generate rental income or provide living space for relatives while residing in the primary home. To achieve success with an SB-9 project, start by learning about the eligibility requirements, how the rules apply to your property, and determining the most appropriate SB-9 option for your Compton City property.
What is SB-9 and how does it apply to the properties in Compton City?
What is SB-9?
SB-9 or Senate Bill 9, is a California law that simplifies the approval process for certain housing developments. It encourages local governments to expedite these projects using a streamlined approach, avoiding the necessity for detailed environmental reviews and approvals from entities like the Planning Commission or Historic Preservation Commission. Participation in SB-9 is voluntary and depends on meeting specific eligibility criteria.
How does SB-9 apply to properties in Compton?
SB-9 simplifies adding housing units in Compton by allowing up to 4 units on a lot that allows only one single-family home. Property owners can build two primary units on one lot or split a lot into two, in areas designated for single-family homes.
What can homeowners build under SB-9 or Compton’s HOME Act?
Lot Split under SB-9
Homeowners can split their lot into two and then build homes on the newly created lot.
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
With a two-unit development, homeowners can construct two units on a single-family lot or add a unit 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?
Under the city's SB-9, new units need to be at least 800 square feet. Interestingly, according to the State of California, SB-9 allows units to be of any size.
An urban lot split allows the construction of two units on one property, which can include ADUs or JADUs.
What are the setbacks?
A four-foot setback from the side and rear property lines is required. If the new structures are built in the same location as the existing ones, they do not require setbacks.
What is the parking requirement under SB-9?
SB-9 requires one parking space per dwelling unit. However, no parking is needed if the property is within a half mile of a transit corridor, a major stop, or near a car-share station.
What are the lot constraints under SB-9?
New lots from a split should be at least 40% of the original parcel, with a minimum size of 1,200 square feet. SB-9 also prevents multiple splits on the same property and restricts splits if the owner or their associates have previously split nearby lots under the same rules.
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 in single-family residential zones are eligible for SB-9 development.
Can you disregard the environmental restrictions on the lot?
No, SB-9 in Compton does not allow properties in environmentally sensitive areas to qualify. These include wetlands, and hazardous waste sites unless proper safety measures are provided, floodways, conservation zones, and habitats for protected species. These areas are protected to prevent any harm from development.
Can you bypass the Historical Preservation limitations?
No, a project should follow historical preservation rules unless it is confirmed that the property is not in a historic district or listed on the State Historic Resources Inventory. It also cannot be a city or county landmark or historic property unless otherwise allowed by local regulations.
Is it allowed to demolish an affordable unit?
No, affordable units protected by a covenant or law for moderate, low, or very low-income housing cannot be demolished or altered. This rule helps preserve affordable housing options for lower-income residents.
Is it allowed to build on a property in Coastal Zones?
While SB-9 in Compton does not specifically address coastal zones, coastal areas generally have stricter building regulations. It's best to consult the local planning department for guidance.
Is it allowed to build in High-Risk Areas?
Maybe. It’s possible but often discouraged due to safety concerns. Properties in high fire hazard zones, earthquake fault zones, or within a 100-year flood zone or floodway may face additional regulations to ensure safety.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes, but only for a limited time. Homeowners need to sign an affidavit stating they will live in one of the housing units as their primary residence for at least 3 years after the approval date.
What are the rental regulations?
Any unit built under SB-9 should be rented out for at least 30 consecutive days.
Are existing tenants’ rights protected?
Yes, SB-9 in Compton protects tenants' rights. The law prevents the demolition or alteration of housing that is rent-controlled or has had tenants living in it within the last 3 years. This helps secure housing for current tenants.
Can condominiums be proposed as part of my Urban Lot Split application?
While SB-9 allows a lot split and building up to two units on each new lot (potentially totaling 4 units), condominiums are subject to different regulations.
Creating condos involves shared ownership of land and buildings and requires going through the parcel map process, which includes filing fees, environmental reviews, public hearings, and appeal periods, unlike the streamlined process for SB-9 lot splits.
What is the difference between SB-9 and SB-684?
SB-684 is a more recent law that simplifies the process for developing up to 10 units on urban lots smaller than 5 acres. In contrast to SB-9, which targets single-family properties, SB-684 applies to multi-family zones and vacant lots within single-family neighborhoods. An advantage of SB-684 is that it does not impose the ownership restrictions that SB-9 enforces after construction is complete.
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 qualify for a ministerial approval process. This approval type simplifies the housing development procedure by providing clear and consistent guidelines. Unlike subjective methods, ministerial approval relies on set criteria, which helps reduce bureaucratic delays. As a result, projects can obtain permits without extensive CEQA reviews or public hearings. While this process accelerates approvals, finalizing a lot split may still take up to one and a half years.
What are objective standards?
“Objective zoning standards”, “objective subdivision standards”, and “objective design review standards” provide clear rules that avoid subjective judgments by officials. These standards are based on measurable criteria available to both homeowners and local authorities before a project is submitted. This creates a more predictable process, giving homeowners a clear idea of what to expect when submitting their projects.
What types of objective standards qualify for a waiver under SB-9?
Under SB 9, objective standards can be waived if they prevent the building of housing units smaller than 800 square feet. These waivers allow developments to move forward even if some specific guidelines might otherwise restrict them.
What are the steps to get the permits?
To get permits under SB 9 in Compton, homeowners can follow these steps:
1. Make sure the property meets SB 9’s eligibility rules, like avoiding restricted areas.
2. Submit a plan to build up to two housing units on a lot zoned for single-family use.
3. Get local approval through a simplified, ministerial process, which avoids lengthy reviews or public hearings.
4. If splitting the lot, ensure it follows SB-9’s size and use guidelines.
5. Provide any required documents, like an affidavit stating that one unit will be your main home for at least three years.
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 the first scenario, we suggest building a 4,000-square-foot, three-story duplex along with a 1,000-square-foot Accessory Dwelling Unit (ADU). The total projected cost for this development, including construction, permits, and professional fees (excluding land costs), is $2,170,739. In Compton, the market value of the completed property is estimated to be around $4,000,000, yielding an 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
In the second scenario, we propose subdividing a lot and constructing two new 4,000-square-foot, three-story duplexes. The estimated total investment for this project, excluding land acquisition costs, is $3,473,701.
In Compton, the projected market value for these duplexes is $6,400,000, resulting in an ROI of 84%.
Conclusion:
SB-9 projects in Compton offer strong returns on investment, making it a promising location for real estate development.
See how much it will cost you to improve your property per SB-9
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