City of Culver City
All You Need to Know About Building on Properties in Culver City Under SB-9
Using SB-9 for real estate development in Culver City can be an effective strategy for homeowners to reduce a large part of their mortgage. With additional capital, you can construct extra units to generate rental revenue or accommodate relatives while remaining in your primary residence. To ensure the success of an SB-9 project, start by verifying your property’s eligibility, comprehending the applicable regulations, and choosing the SB-9 option that provides the greatest financial benefit for your property in Culver City.
What is SB-9 and how does it apply to the properties in Culver City?
What is SB-9?
SB-9, or Senate Bill 9, aims to simplify the authorization process for particular housing projects across California. It directs local authorities to expedite approval for these developments through a dedicated route, avoiding the need for extensive environmental evaluations (CEQA), Conditional Use Authorization, or similar discretionary approvals from bodies like the Planning Commission or Historic Preservation Commission.
How does SB-9 apply to properties in Culver?
In Culver City, SB-9 provides opportunities for residential expansion and lot subdivision. Property owners can split their lots and build additional housing units, as long as they follow the regulations and standards established by the city.
What can homeowners build under SB-9 or Culver City’s HOME Act?
Urban Lot Split under SB-9
An urban lot split allows a single-family property to be divided into two separate lots. Each lot can then be developed independently, giving homeowners more options for building additional housing.
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 refers to a housing project designed to include up to two homes on a lot zoned for single-family use.
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 Culver City, new residential units under SB-9 can have a maximum size of 800 square feet. On the other hand, California's SB-9 legislation does not set any size restrictions on the new units.
An urban lot split allows the development of two separate units on one lot, which can include ADUs and JADUs.
What are the setbacks?
Culver City may require a setback of up to four feet from the side and rear property lines. If a new structure is built in the same location and dimensions as an existing one, no setbacks are needed.
What is the parking requirement under SB-9?
Each unit may require off-street parking, limited to one space per unit. However, local authorities cannot enforce parking regulations in the following scenarios:
(A) If the parcel is within a half-mile walking distance of a high-quality transit corridor or a major transit stop.
(B) If there is a car share vehicle available within one block of the parcel.
What are the lot constraints under SB-9?
Under SB-9, a lot can be split into two, each roughly equal in size. However, one of the new lots cannot be smaller than 40 percent of the original area. Additionally, both new lots should 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 eligible for SB-9 are located in single-family zoning districts.
Can you disregard the environmental restrictions on the lot?
No, SB-9 cannot be applied to properties located in environmentally sensitive areas. This includes areas such as wetlands, hazardous waste sites, flood zones, conservation lands, or habitats for endangered species. These regulations are designed to protect these environments from the risks associated with development.
Can you bypass the Historical Preservation limitations?
No, new projects are required to follow Historical Preservation rules unless it is confirmed that the project is not in a historic district or on the State Historic Resources Inventory. It also should not be on a site designated as a landmark or historic property by local regulations.
Is it allowed to demolish an affordable unit?
No, demolishing or altering housing that is protected by a recorded covenant or law that keeps rents affordable for moderate, low, or very low-income families isn’t allowed under SB-9.
Is it allowed to build on a property in Coastal Zones?
Yes, building in Coastal Zones is allowed, following the California Coastal Act of 1976. Development here usually requires a coastal development permit, which means following specific policies and guidelines aimed at protecting coastal resources and reducing environmental impact. The exact rules about what can be built and the conditions for building depend on the Coastal Act and any additional local regulations.
Is it allowed to build in High-Risk Areas?
It depends. In general, building in high-risk locations is discouraged. This includes areas with a high likelihood of wildfires, near earthquake fault lines, and those prone to flooding, like the 100-year floodplain. However, there may be exceptions for flood-prone regions that hold specific designations from FEMA or comply with requirements established by the National Flood Insurance Program.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes, the homeowner needs to reside on the property. The person applying for an urban lot split has to sign a statement confirming their intention to occupy one of the housing units as their primary home for at least 3 years after the urban lot split is approved.
What are the rental regulations?
Rental regulations require that any unit constructed through this process should be rented for more than 30 days.
Are existing tenants’ rights protected?
Yes, the rights of existing tenants are protected under certain conditions. The housing development is designed to keep various types of housing from being demolished or changed. This includes housing that is controlled by rent or price regulations and homes occupied by tenants in the last three years.
Also, the land proposed for development cannot be one where the owner has recently removed tenants from rent or lease agreements in the past 15 years.
Additionally, the planned development cannot involve tearing down 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 allows for the building of up to 10 units on urban lots under 5 acres in size. It is different from SB-9 because it applies to multi-family housing and vacant lots in single-family areas, while SB-9 only applies to single-family homes. One advantage of SB-684 is that there are no restrictions on who can own the property after it is built.
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 are eligible for a ministerial approval process. This approval simplifies the development process with clear and consistent criteria, avoiding subjective evaluations that can lead to delays. It helps expedite permit approval by bypassing lengthy CEQA reviews and public hearings. Despite the faster process, it may still take up to a year and a half to finalize a lot split.
What are objective standards?
"Objective zoning standards," "objective subdivision standards," and "objective design review standards". These are procedures that eliminate subjective judgments by public officials. They rely on clear, standardized measurements that developers and officials can access before submission. This ensures consistency and reliability in evaluating projects, giving homeowners clear and predictable guidelines for their proposals.
What types of objective standards qualify for a waiver under SB-9?
SB-9 allows for certain objective standards to be waived, including:
- Setback rules for existing structures that obstruct the construction of two units.
- Setback guidelines greater than 4 feet from side and rear property lines that may limit building two units.
What are the steps to get the permits?
To secure permits under SB-9 in Culver City, follow these steps:
1. Review Local Ordinances: Check the local Planning and Zoning Law, along with any rules about accessory dwelling units and housing developments.
2. Ensure Compliance: Make sure your proposed development meets all requirements, including rules on rent levels, demolition limits, location considerations, and regulations for historic districts.
3. Prepare Application: Gather all necessary documents for your housing development or urban lot split application.
4. Submit Application: Send your application to the appropriate local agency for ministerial approval.
5. Extension of Tentative Map: If needed, request an extension for the tentative map 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 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 scenario, we suggest building a three-story duplex with a total footprint of 4,000 square feet, plus an Accessory Dwelling Unit (ADU) of 1,000 square feet. The projected overall expenditure, covering construction, permits, and professional services (excluding land costs), is $2,179,752. The anticipated market value of the finished property in Culver City is approximately $4,500,000, resulting in an ROI of [($4,500,000 - $2,179,752)/$2,179,752]*100 = 106%
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
In this second scenario, we propose splitting a lot and developing two separate three-story duplexes, each covering 4,000 square feet. The estimated total cost for this project, not including land acquisition, is $3,478,273. The projected market value for these duplexes in Culver City is $7,200,000, yielding an ROI of 107%.
Conclusion:
Real estate developments under SB-9 in Culver City present impressive investment returns, placing the city as a highly favorable choice for such projects.
See how much it will cost you to improve your property per SB-9
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