City of Cudahy
All You Need to Know About Building on Properties in Cudahy Under SB-9
Using SB-9 for real estate developments in Cudahy City offers homeowners an excellent opportunity to generate funds to reduce their loan balance, add rental units, or create living space for extended family members while remaining in their primary residence. To effectively leverage SB-9, homeowners should understand the eligibility requirements, and property regulations, and identify the most financially beneficial SB9 option for their property in Cudahy City.
What is SB-9 and how does it apply to the properties in Cudahy City?
What is SB-9?
SB-9, also known as Senate Bill 9, is a California statute that streamlines the approval process for certain housing projects. It prompts local authorities to accelerate these developments through a simplified method, eliminating the need for extensive environmental reviews and approvals from bodies such as the Planning Commission or Historic Preservation Commission. Engaging with SB-9 is optional and contingent on meeting certain eligibility requirements.
How does SB-9 apply to properties in Cudahy?
In Cudahy, SB-9 facilitates the addition of housing units by allowing up to 4 units on a lot that would accommodate only one single-family residence. Property owners have the option to construct two primary units on a single lot or divide a lot into two in areas designated for single-family homes.
What can homeowners build under SB-9 or Cudahy’s HOME Act?
Urban Lot Split under SB-9
An urban lot split allows homeowners to divide a single-family lot into two to build additional housing units on each of the new lots.
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
A two-unit development allows two residential units to be built or to add a unit to an existing home on a single-family zoned lot.
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?
Newly built residential units should have a minimum size of 800 square feet. Under California law, there are no maximum limitations imposed on the size of residential units, providing developers with greater flexibility in constructing larger units if they choose to do so.
An urban lot split allows for the construction of two units on a single property, including ADUs and JADUs.
What are the setbacks?
In Cudahy, the city requires setbacks of up to 4 feet from side and rear property lines. However, structures that align the size and placement of existing buildings do not need to meet setback requirements.
What is the parking requirement under SB-9?
Under SB-9 in Cudahy, each unit should have one off-street parking spot. However, this requirement is waived if the property is within half a mile of a high-quality transit corridor or major transit stop, or if a car-sharing vehicle is available within one block of the property.
What are the lot constraints under SB-9?
To divide a parcel into two new lots, each lot should be of similar size, with neither being smaller than 40% of the original parcel's area. Both new lots should be at least 1,200 square feet in size, and should not have gone through a prior 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?
Properties eligible for SB-9 are located in R1 zoning districts, which are specifically intended for single-family homes.
Can you bypass the Historical Preservation limitations?
No, bypassing Historical Preservation restrictions is not allowed in Cudahy. Properties should not be located within a historic district, listed on the State Historic Resources Inventory, or designated as a landmark or historic property or district by city or county ordinance.
Is it allowed to demolish an affordable unit?
No, demolishing an affordable unit is not allowed in Cudahy. SB-9 specifically protects housing regulated by agreements or laws that maintain rent affordability for moderate, low, or very low-income families.
Is it allowed to build on a property in Coastal Zones?
Yes, you can build SB-9 properties in Coastal Zones, as long as you follow the California Coastal Act of 1976. This often requires a coastal development permit, ensuring compliance with policies aimed at protecting coastal resources and minimizing environmental impact. The specific rules for construction may vary based on the act and any local regulations.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes, the property owner is required to live on-site. To begin an urban lot split development, the homeowner should provide a signed statement confirming their intention to occupy one of the housing units as their primary residence for at least 3 years from the approval date of the urban lot split.
What are the rental regulations?
In Cudahy, short-term rentals are not allowed. According to SB-9, any rental needs to be for at least 30 days.
Are existing tenants’ rights protected?
Yes, SB-9 protects the rights of existing tenants. It secures various types of housing from being demolished or altered, including those under rent or price controls set by public authorities, as well as homes where tenants have lived within the last 3 years. However, the property cannot be one where the owner has ended rental agreements in the past 15 years, and any project should avoid demolishing more than 25 percent of the existing exterior walls.
What is the difference between SB-9 and SB-684?
SB-684 is a newer law that streamlines the development process for up to 10 units on urban lots under 5 acres in size. Unlike SB-9, which focuses on single-family homes, SB-684 applies to multi-family zones and vacant lots in single-family areas. One benefit of SB-684 is that it lacks the ownership limitations that are required by SB-9 once construction is finished.
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 are eligible for a ministerial approval process. This type of approval streamlines the housing development process by offering straightforward and uniform guidelines. In contrast to subjective evaluations, ministerial approval is based on predetermined criteria, minimizing bureaucratic delays. Consequently, projects can secure permits without undergoing extensive CEQA reviews or public hearings. However, even with this expedited approach, completing a lot split can still take as long as a year and a half.
What are objective standards?
"Objective zoning standards," "subdivision standards," and "design review standards," aim to eliminate subjective decisions by government officials. These standards are based on clear and standardized metrics that developers and officials can access before submitting proposals. This approach ensures consistent and reliable evaluations of projects, giving homeowners clear and predictable guidelines for their applications.
What types of objective standards qualify for a waiver under SB-9?
SB-9 allows for the waiving of certain objective standards if they hinder the creation of two units or lead to a unit being smaller than 800 square feet. If a regulation would force a unit to be below this minimum size, it can be modified or exempted to ensure compliance with the 800-square-foot requirement.
What are the steps to get the permits?
To get permits under SB 9 in Cudahy, follow these steps:
1. Examine Local Laws: Check local planning and zoning regulations, including rules about accessory dwelling units and housing developments.
2. Follow Statewide Regulations: Make sure your project meets state regulations that apply to all cities, including charter cities, since these address broader issues.
3. Verify Compliance: Ensure your development proposal aligns with all relevant requirements, such as rent control rules, demolition limits, site considerations, and historic district guidelines.
4. Assemble Documentation: Collect all necessary documents for your housing development or lot split application.
5. Submit Your Application: File your application with the right local agency for ministerial approval.
6. Request Map Extension: If needed, ask for an extension on the tentative map expiration date from the 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 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 recommend 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 estimated total expenditure, including construction, permits, and professional fees (excluding land), is $2,162,604. The projected market value for the completed property in Cudahy is approximately $2,250,000, leading to a return on investment (ROI) of [($2,250,000 - $2,162,604) / $2,162,604] * 100 = 4%.
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
For this 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 $3,467,923. The projected market value for these duplexes in Cudahy is $3,600,000, resulting in an ROI of 4%.
Conclusion:
Real estate developments under SB-9 in Cudahy City may result in an ROI of less than 50%. To mitigate this risk, it is advisable to implement additional financial strategies or acquire land at a significantly reduced cost.
See how much it will cost you to improve your property per SB-9
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