City of Diamond Bar
All You Need to Know About Building on Properties in Diamond Bar Under SB-9
Using SB-9 for real estate development in Diamond Bar City is an excellent strategy for homeowners to either lower their mortgage balance or, if additional capital is available, to construct rental units or provide accommodation for family members while remaining in their primary residence. To ensure the success of an SB-9 project, start by determining your property's eligibility, understanding the applicable regulations, and identifying the most financially beneficial SB-9 option for your Diamond Bar City property.
What is SB-9 and how does it apply to the properties in Diamond Bar City?
What is SB-9?
Senate Bill 9, or SB-9, aims to make it easier to get approvals for certain residential projects in California. It instructs local governments to speed up the approval process for these projects through an administrative pathway, avoiding lengthy environmental reviews (CEQA), Conditional Use Permits, or similar discretionary approvals from bodies like the Planning Commission or Historic Preservation Commission. Participation in this program is voluntary and depends on meeting specific eligibility criteria.
How does SB-9 apply to properties in Diamond Bar?
In Diamond Bar, SB-9 allows homeowners to use urban lot splits and add two more housing units, limiting the city's influence over such projects. Developments that comply with the guidelines benefit from quicker approvals, with objective criteria used in place of extended discretionary reviews.
What can homeowners build under SB-9 or Diamond Bar’s HOME Act?
Urban Lot Split under SB-9
An urban lot split divides a single-family residential lot into two separate lots within an urban area.
Under this option, you could have the following unit configurations:
Not sure if your property is located in a Single-family zoned area?
Duplex under SB-9
The City of Diamond Bar is required to approve housing development projects that include two residential units on lots designated for single-family homes.
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 Diamond Bar's SB-9, Each unit is required to have a total area of less than 800 square feet. In contrast, California's SB-9 offers greater flexibility, with no limitations on unit size, providing developers with more freedom to plan and construct residential spaces.
An urban lot split allows for the construction of two on a single lot, which may also include ADUs or JADUs.
What are the setbacks?
The required setbacks for the proposed project should be at least 4 feet away from both the side and rear lot lines.
What is the parking requirement under SB-9?
Diamond Bar's SB-9 requires one off-street parking space per unit for projects that qualify for ministerial approval unless certain conditions are met:
- If the parcel is within a half-mile walking distance of public transit.
- If a car-share vehicle is available within one block of the parcel.
In these cases, the off-street parking requirement may be waived.
What are the lot constraints under SB-9?
Lot split should provide 2 new lots of roughly equal size, and each needs to be at least 1,200 square feet. Additionally, the subdivision cannot include a lot that was recently created by or next to one formed through an 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 zoned for single-family residential use.
Can you disregard the environmental restrictions on the lot?
No, Diamond Bar's SB-9 includes environmental restrictions, especially for properties in environmentally sensitive zones. These zones include wetlands, and hazardous waste sites unless state or local agencies confirm the site is suitable for residential use, floodplains, conservation areas, and habitats for protected species.
Can you bypass the Historical Preservation limitations?
No. Properties in national, state, or local historical districts or designated as historical properties have to follow specific preservation rules, even if they qualify for SB-9.
Is it allowed to demolish an affordable unit?
No, under SB-9, demolishing or altering housing that keeps rents affordable for moderate, low, or very low-income families is not allowed. This rule helps protect affordable housing options for these income groups.
Is it allowed to build on a property in Coastal Zones?
While Diamond Bar City's SB-9 does not specifically cover buildings in coastal areas, it’s best to check with the planning department. Coastal zones often have stricter building rules due to environmental concerns.
Is it allowed to build in High-Risk Areas?
Under the City’s SB-9, building in high-risk areas, such as very high fire hazard zones (VHFHSZ), earthquake fault zones, special flood hazard areas, and regulatory floodways is allowed under certain conditions:
- For properties in VHFHSZ, required safety measures should be followed according to existing building standards.
- For properties in earthquake fault zones, the development has to meet existing building standards.
- For properties in special flood hazard areas or regulatory floodways, specific conditions should be met to comply with safety and mitigation measures set by relevant authorities.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes. While Diamond Bar City's rules might not clearly state residency requirements, in cities with similar laws, like Los Angeles, applicants usually need to sign a statement confirming their intent to live in one of the housing units as their main residence for at least 3 years after the urban lot split is approved.
What are the rental regulations?
Rentals should be for periods longer than 30 days.
Are existing tenants’ rights protected?
Yes, under SB-9, existing tenants' rights are protected. The housing developments allowed cannot involve the demolition or alteration of certain types of housing, including units with rent or price controls and those occupied by tenants in the last 3 years.
Additionally, the bill restricts the demolition of existing structures to no more than 25% of the exterior walls, unless a local ordinance allows otherwise.
Can condominiums be proposed as part of my Urban Lot Split application?
No. SB-9 allows homeowners to split a single-family lot into two, which can lead to up to 4 units on originally single-family properties.
However, condominiums involve a different ownership model and require a Parcel Map process, including filing fees, environmental reviews, 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 allowing up to 10 units on urban lots smaller than 5 acres, focusing on multi-family housing and vacant lots in single-family areas, unlike SB-9, which focuses only on single-family homes. Additionally, SB-684 has no restrictions on property ownership post-construction.
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 a ministerial approval process. This type of approval streamlines development by establishing clear, objective criteria, eliminating the need for subjective assessments that could cause delays. It facilitates quicker permit issuance by skipping extensive CEQA reviews and public hearings. However, even with this expedited process, completing a lot split may still require up to a year and a half.
What are objective standards?
"Objective zoning standards," "objective subdivision standards," and "objective design review standards" are clear criteria used in zoning and development processes to eliminate personal judgment from public officials. These standards rely on external and consistent measures that both developers and officials can access before submitting proposals. This ensures that evaluations are predictable, giving homeowners clear expectations about their projects.
What types of objective standards qualify for a waiver under SB-9?
Objective standards that can be waived under SB-9 include the following:
- Require setbacks for existing structures that would stop the building of two units.
- Require setbacks greater than 4 feet from side and rear lot lines, which could limit the development of two units.
What are the steps to get the permits?
To obtain permits in Diamond Bar, follow these steps:
1. Eligibility Check
First, confirm that your project meets SB-9's criteria, including the parcel's location and zoning requirements.
2. Document Preparation
Gather all necessary documents, like parcel maps and environmental assessments.
3. Application Submission
Submit your application for ministerial approval to the appropriate local agency.
4. Review Process
The local agency will check your application to ensure it meets SB-9's objective standards.
5. Approval or Denial
After the review, the agency will either approve your application and issue permits or deny it if the criteria are not met.
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 the first option, we suggest developing a 4,000-square-foot, three-story duplex alongside a 1,000-square-foot Accessory Dwelling Unit (ADU). The anticipated total cost, covering construction, permits, and professional fees (excluding land acquisition), is $2,185,813. The estimated market value of this completed property in Diamond Bar is approximately $3,000,000, resulting in an ROI of [($3,000,000 - $2,185,813)/$2,185,813]*100 = 37%
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
In the second scenario, we plan to divide a lot and build two separate 4,000-square-foot, three-story duplexes. The projected total investment for this project, not including land costs, is $3,486,057. The anticipated market value for these duplexes in Diamond Bar is $4,800,000, which results in an ROI of 38%.
Conclusion:
Investing in SB-9 projects in Diamond Bar carries the potential for returns that may fall short of 50%. To address this risk, it is advisable to adopt further financial safeguards or secure the land at a significantly reduced cost.
See how much it will cost you to improve your property per SB-9
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