City of Coronado
All You Need to Know About Building on Properties in Coronado Under SB-9
Homeowners in Coronado can enhance their property by adding extra units through SB-9, which can provide rental income or additional living space for family members. To fully capitalize on these advantages, it's essential to confirm the property's eligibility, understand the relevant regulations, and select the SB-9 option that aligns with their financial objectives.
What is SB-9 and how does it apply to the properties in Coronado City?
What is SB-9?
Senate Bill 9 (SB-9) simplifies the approval process for designated housing projects in California. Local governments should fast-track these developments, eliminating the need for extensive environmental assessments (CEQA), conditional use permits, or other discretionary approvals from bodies like the Planning Commission or Historic Preservation Commission. While participation is optional, specific conditions must be satisfied to qualify.
How does SB-9 apply to properties in Coronado?
In Coronado, SB-9 enables the creation of two residential units on current single-family lots, which can include urban lot splits. This legislation streamlines the approval process for qualifying housing projects assisting the mitigation of the housing crisis and encouraging higher-density construction. It allows the addition of more units while ensuring adherence to requirements such as minimum lot sizes and zoning regulations.
What can homeowners build under SB-9 in Coronado?
Urban Lot Split options under SB-9
An urban lot split, allows property owners to create two lots from a single-family residential 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 Residential under SB-9
Two-unit residential refers to the construction of primary living units on a single-family lot. If a primary dwelling already exists, a second primary unit may be added to the 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 Coronado, unit size cannot be larger than 800 square feet. However, the SB-9 guidelines in California do not set any maximum size for new units.
An urban lot split allows for the development of two units on one lot, which can also contain ADUs and JADUs.
What are the setbacks?
A minimum setback of 4 feet from the rear and side property lines is required, or the zone’s setback, whichever is less. No setback is needed for existing structures or those built in the same location and size as the existing ones.
What is the parking requirement under SB-9?
Each dwelling unit should have two parking spaces, with one required to be covered and enclosed.
What are the lot constraints under SB-9?
Each new lot should be at least 1,200 square feet, with neither being smaller than 40% of the original lot. The lot cannot have been split before.
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?
The lot should be in R-1A Single-Family Residential Zone, R-1A(BF) Single-Family Residential Bay Front Subzone, or R-1B Single-Family Residential Zones
Can you bypass the Historical Preservation limitations?
No, development is prohibited if the property is in a historic district, on the State Historic Resources Inventory, or designated as a City or County landmark or historic property.
Is it allowed to demolish an affordable unit?
No, demolition is restricted if the unit is subject to a covenant, ordinance, or law restricting rents for moderate, low, or very low-income families.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes, the applicant should sign an affidavit stating they will occupy one unit as their primary residence for at least 3 years unless they are a community land trust or qualified nonprofit.
What are the rental regulations?
SB-9 projects can only be rented for durations longer than 30 days.
Are existing tenants’ rights protected?
Yes, existing tenants' rights are protected. An SB-9 project cannot proceed if it involves demolishing or altering housing that is rent-controlled, has housed a tenant in the past 3 years, or if the parcel has had accommodations withdrawn from rent within the last 15 years.
What is the difference between SB-9 and SB-684?
SB-684 is a newer legislation that streamlines the procedure for constructing up to 10 units on urban lots under 5 acres. In contrast to SB-9, which is specific to single-family homes, SB-684 applies to properties in multi-family districts or vacant single-family lots. Moreover, SB-684 eliminates the ownership restrictions found in SB-9 post-development.
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, projects that fall under SB-9 can use a ministerial approval process. This method streamlines housing development by offering clear and consistent guidelines. Unlike subjective approaches, ministerial approval relies on specific criteria, minimizing bureaucratic delays. Consequently, projects can obtain permits without extensive CEQA reviews or public hearings. However, securing approval for a lot split may still take as long as 1.5 years.
What are objective standards?
"Objective standards", "zoning, subdivision", and "design review standards", aim to remove personal bias from the approval process. These standards are based on specific, measurable criteria that developers and officials use during project submissions, ensuring evaluations are consistent and reliable.
What types of objective standards qualify for a waiver under SB 9?
SB-9 permits waivers for specific standards, such as:
- Setback regulations for existing structures that hinder the construction of two units.
- Setback requirements that are greater than 4 feet from side and rear property lines, restricting the ability to build two units.
What are the steps to get the permits?
To obtain permits under SB-9 in Coronado, take the following steps:
1. Review Local Regulations: Examine local Planning and Zoning laws, along with any guidelines related to accessory dwelling units and housing projects.
2. Confirm Compliance: Ensure your project adheres to all requirements, including rental restrictions, demolition guidelines, location considerations, and historic district regulations.
3. Prepare Application Documents: Collect all necessary paperwork for your housing development or urban lot split application.
4. Submit Your Application: Forward your application to the planning department for ministerial approval.
5. Request Tentative Map Extension: If necessary, apply for an extension of the tentative map's expiration date from the relevant legislative body or advisory agency.
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 to get your Development 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?
In this analysis, we will take a look at two scenarios to evaluate expected expenses, property assessments, 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, the objective is to construct a three-story duplex covering 4,000 square feet, along with a 1,000-square-foot Accessory Dwelling Unit (ADU). The total estimated expenditure for construction, permits, and professional services (excluding land costs) is $1,829,210. The predicted market value of the finished property in Coronado is approximately $3,980,000, which results in a return on investment (ROI) of [($3,980,000 - $1,829,210) / $1,829,210] * 100 = 118%.
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
In this second scenario, the proposal is to divide the lot to build two separate three-story duplexes, each with an area of 4,000 square feet. The overall estimated cost, excluding land acquisition, is $2,954,515. The combined market value of both duplexes in Coronado is expected to be $6,368,000, yielding an ROI of 116%.
Conclusion:
SB-9 projects in South Gate may have returns under 50%. To improve profitability, consider exploring various financial strategies or negotiating a better price for the land.
See how much it will cost you to improve your property per SB-9
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