City of Covina
All You Need to Know About Building on Properties in Covina Under SB-9
Using SB-9 for real estate projects in Covina City is a smart way for homeowners to get money to reduce a significant part of their loan. If you have extra cash, you can build additional units to earn rental income or create space for family members while continuing to live in your main house. To make the most of an SB-9 project, first check if your property meets the requirements, understand how the rules apply, and pick the SB-9 option that is the best financial fit for your property in Covina City.
What is SB-9 and how does it apply to the properties in Covina City?
What is SB-9?
Senate Bill 9 (SB-9) is a law designed to make it easier to approve certain housing projects in California. It directs local governments to expedite these developments without requiring detailed environmental reviews (CEQA), Conditional Use Permits, or approvals from bodies like the Planning Commission or Historic Preservation Commission. To participate, projects need to meet specific criteria laid out by the law.
How does SB-9 apply to properties in Covina?
In Covina, SB-9 allows homeowners to split single-family residential (R-1) lots into two smaller lots and build up to two units on each. It simplifies the approval process by offering ministerial approval for both urban lot splits and new housing units, streamlining the steps for homeowners looking to develop additional properties within these zones while following the law’s guidelines.
What can homeowners build under SB-9 or Covina’s HOME Act?
Urban Lot Split under SB-9
An urban lot split allows homeowners to divide a single-family residential lot into two separate lots.
Under this option, you could have the following unit configurations:
Not sure if your property is located in a Single-family zoned area?
Urban Dwelling Units under SB-9
Urban Dwelling Units refer to a maximum of two housing units in a single-family zone. These can be two new constructions or a mix of one new unit and one existing unit.
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 Covina's SB-9, new units are limited to 800 square feet, with a suggested minimum of 500 square feet. However, the State of California allows units to be of any size under SB-9.
Each lot is limited to a maximum of two units, which can include primary homes, ADUs, or JADUs.
What are the setbacks?
- For new buildings or expansions, a minimum four-foot setback is required from side and rear property lines, particularly in urban lot splits.
- Front setbacks require at least 25 feet, though this can be reduced to 10 feet if building an 800-square-foot unit becomes impractical.
- Existing structures or those rebuilt to the same dimensions do not need setbacks.
What is the parking requirement under SB-9?
SB-9 requires one off-street parking space per unit. However, parking is not required if the property is within a half-mile walking distance of a high-quality transit corridor or major transit stop, or if there’s a car-share vehicle within a block. These exceptions encourage the use of public or shared transportation in urban areas.
What are the lot constraints under SB-9?
A lot split can only be divided into two and they should have similar sizes, with one not being less than 40% of the original area. Both new lots need to be at least 1,200 square feet.
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 that qualify for SB-9 are located in single-family residential (R-1) zoning districts.
Can you bypass the Historical Preservation limitations?
No, projects should avoid being in historic districts or on properties listed in the State Historic Resources inventory. Additionally, they cannot be within areas designated as city or county landmarks or historic properties according to local regulations.
Is it allowed to demolish an affordable unit?
No. SB-9 does not allow demolishing or altering housing units that are under agreements, laws, or ordinances enforcing rent limits for moderate, low, or very low-income families or individuals.
Is it allowed to build in High-Risk Areas?
It depends. Properties located in very high fire hazard zones or earthquake fault zones are typically restricted. However, exceptions might be possible if the development meets specific safety standards in the California Building Code and the city's building regulations.
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 live on the property for at least 3 years after the project is approved to make one of the units their primary residence. This rule does not apply if the applicant is a "community land trust" or a "qualified nonprofit corporation."
What are the rental regulations?
Any unit built through the lot split should be rented for at least 31 days, preventing short-term rentals.
Are existing tenants’ rights protected?
Yes, existing tenants are protected under SB-9. The lot split cannot involve demolishing or altering certain types of housing, such as units under rent or price control or properties where the owner has removed units from the rental market within the last 15 years. Additionally, homes occupied by tenants in the past 3 years are also secured from demolition or alteration.
Can condominiums be proposed as part of my Urban Lot Split application?
No, SB-9 permits single-family lots to be split into two, allowing for up to two units on each new lot, resulting in a maximum of 4 units on the original property.
Condominiums, however, function differently, involving shared ownership of land and units. Creating condominiums requires the parcel map process, which includes standard fees, environmental assessments, public hearings, and appeals, unlike the streamlined SB-9 process.
What is the difference between SB-9 and SB-684?
SB-684 is a newer law that simplifies the process for developing up to 10 units on urban lots under 5 acres. Unlike SB-9, which focuses on single-family properties, SB-684 applies to multi-family zones and vacant lots within single-family neighborhoods. A key benefit of SB-684 is that it does not include 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, projects under SB-9 can receive ministerial approval. This type of approval streamlines the housing development process by offering clear and consistent rules. In contrast to subjective approaches, ministerial approval is based on established criteria, helping to minimize bureaucratic delays. This means that projects can secure permits without the need for extensive CEQA reviews or public hearings. Although this process speeds up approvals, it can still take up to 1.5 years to finalize a lot split.
What are objective standards?
"Objective zoning standards," "objective subdivision standards," and "objective design review standards" are rules that remove personal judgment from decisions made by public officials. These standards are based on clear, measurable criteria that both developers and officials can refer to before submitting a project. This ensures that project evaluations are consistent and predictable, giving homeowners confidence in the requirements for their proposals.
What types of objective standards qualify for a waiver under SB-9?
Objective standards can be waived under SB-9 if they hinder the construction of housing units that are less than 500 square feet. These waivers allow projects to proceed even if certain specific guidelines would typically impose restrictions.
What are the steps to get the permits?
To get permits for an SB-9 project, here’s the general process:
1. Submit Application: Fill out and submit the urban lot split application to the city's department handling these requests.
2. City Review: The city reviews the application to check if it meets zoning, subdivision, and other required regulations.
3. Affidavit: Sign an affidavit as part of the process, confirming details like your intent to live in one of the units as your main residence for at least 3 years after approval.
4. Building Review: A building official will review the project to ensure it will not negatively impact public health, safety, or the environment. If significant issues are found, the request could be denied.
5. Approval or Denial: Based on the reviews, the city will either approve or deny the urban lot split. If approved, you will receive the permits to move forward.
6. Compliance: Make sure the project meets all conditions in the permit, including setbacks, unit sizes, height limits, and design guidelines.
7. Construction: After obtaining the permits, construction can start according to the approved plans.
8. Inspections: The city may carry out inspections during construction to ensure the project follows building codes and other rules.
9. Final Approval: Once construction is complete and meets all the requirements, the city will give final approval for the lot split and occupancy of the units.
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 constructing a three-story duplex with a total area of 4,000 square feet, along with a 1,000-square-foot Accessory Dwelling Unit (ADU). The total estimated cost, including construction, permits, and professional fees (excluding land expenses), is $2,159,580. The projected market value of the completed property in Covina is around $3,000,000, which calculates to an ROI of [($3,000,000 - $2,159,580)/$2,159,580]*100 = 39%
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
In the second scenario, we propose dividing a lot and constructing two independent three-story duplexes, each with an area of 4,000 square feet. The anticipated total cost for this project, excluding the cost of land, is $3,463,308. The estimated market value for these duplexes in Covina is $4,800,000, leading to an ROI of 39%.
Conclusion:
Investing in SB-9 projects in Covina may lead to returns on investment that are below 50%. To minimize this potential downside, it’s advisable to adopt extra financial strategies or negotiate a much lower price for the land.
See how much it will cost you to improve your property per SB-9
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