What is SB-9 and how does it apply to the properties in Duarte City?

What is SB-9?

SB-9, or Senate Bill 9, aims to simplify the authorization procedures for certain housing projects in California. It directs local authorities to accelerate the approval of such projects through an alternative route, bypassing the need for extensive environmental assessments (CEQA), Conditional Use Authorization, or similar discretionary approvals from bodies such as the Planning Commission or Historic Preservation Commission.

How does SB-9 apply to properties in Duarte?

SB-9 offers opportunities for property development in Duarte City, particularly for single-family zoning districts. It allows for projects like duplex development and urban lot splits, subject to specific objective standards.

What can homeowners build under SB-9 or Duarte’s HOME Act?

Urban Lot Split under SB-9

An urban lot split refers to dividing a single property into two separate lots in areas zoned for single-family residences.

Under this option, you could have the following unit configurations:

Not sure if your property is located in a Single-family zoned area?

Please enter a valid address

Duplex Development under SB-9

A duplex development refers to the construction or conversion of a property to build two separate dwelling units on a single lot.

You could have the following unit configurations:

Under this option, you could have the following unit configurations:

How large could the new units be and what does the lot contain? 

In Duarte, each unit in a duplex project can be up to 800 square feet, not including garage space. If an existing unit is smaller than 800 square feet, it can be expanded to 800 square feet during or after the duplex project.

However, while Duarte SB-9 limits the maximum size of units in a duplex, the State of California does not set a size requirement.

Following an urban lot split, each newly created lot is allowed to have up to two residential units, which may consist of main homes, ADUs, and JADUs.

What are the setbacks?

Units need to maintain a four-foot setback from the side and rear property lines. However, existing structures are not subject to these setbacks, and new constructions can follow the dimensions of legally established buildings. Additionally, there should be at least 10 feet of separation between detached units on the same lot.

What is the parking requirement under SB-9?

Each unit in the duplex needs at least one off-street parking space unless the property meets specific exemptions, like being within a half-mile of a transit corridor, a major transit stop, or one block from a car-share vehicle location. If an alley is available, parking access should be through it.

What are the lot constraints under SB-9?

Under Duarte’s SB-9, several constraints govern the subdivision of lots and the development of flag lots:

For an Urban Lot Split

• The 2 new lots should be roughly equal in size, with neither being smaller than 40% of the original lot.
• No lot can be smaller than 1,200 square feet.
• Flag lots are not allowed if the original lot is adjacent to an alley, a corner lot, or a through lot.
• The lot being split should not have been created from a previous urban lot split and cannot be next to a lot that was split by the same owner.

For Flag Lots

• A "pole" is required to provide access from the street to the main body ("flag") of the lot.
• Access should come from an alley if possible.
• The pole should be at least 20 feet wide.
• Only one driveway per lot is allowed, and it should be 10 to 14 feet wide. The rest of the pole space is landscaped. Driveways should be cleared up to 12 feet above ground and paved with at least 3 inches of Portland cement concrete or an approved material.

Development Analysis calculates the max size under SB-9 for the highest return.

Please enter a valid address

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 need to be located in a single-family zoning district.

Can you bypass the Historical Preservation limitations?

No, Historical Preservation limitations cannot be avoided. Properties with historic designations, those in historic districts listed on the State Historic Resources Inventory, or those recognized as City or County landmarks are not eligible.

Is it allowed to demolish an affordable unit?

No, demolishing or altering affordable housing units is not allowed. This applies to housing reserved for moderate, low, or very low-income households.

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. They need to provide a statement confirming their intent to occupy one of the units on the newly created lots as their primary residence for at least 3 years after the urban lot split is approved. This rule does not apply to "community land trusts" or "qualified nonprofit corporations."

What are the rental regulations?

Short-term rentals are not allowed. No unit on the lot can be rented for less than 30 days.

Are existing tenants’ rights protected?

Yes, SB-9 protects the rights of current tenants. The law prevents the demolition or alteration of certain types of housing to ensure tenants' protection. This includes housing under rent control or price restrictions, housing withdrawn from rental under the Ellis Act in the past 15 years, or housing that has been occupied by a tenant in the last 3 years. Additionally, demolishing more than 25% of a dwelling's exterior walls requires following specific provisions.

What is the difference between SB-9 and SB-684?

SB-684, a newer legislation, streamlines the construction process for as many as 10 units on urban lots smaller than 5 acres. In contrast to SB-9, which applies only to single-family properties, SB-684 is relevant for multi-family zoning areas and vacant lots within single-family zones. One major benefit of SB-684 is that it does not impose ownership limitations after the units are built, unlike SB-9.

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, which streamlines the housing development procedure by offering straightforward and uniform guidelines. This allows for quicker permit acquisition without the need for lengthy CEQA reviews or public hearings. However, it may still take up to a year and a half to complete a lot split.

What are objective standards?

“Objective zoning standards”, “subdivision standards”, and “design review standards” are rules that rely on clear, measurable criteria instead of subjective decisions by public officials. These standards ensure consistency and predictability, allowing homeowners and developers to know what is required before submitting their projects.

What types of objective standards qualify for a waiver under SB 9?

Under SB-9, specific objective standards can be waived if they:

• Enforce setback requirements for existing structures that hinder the construction of two units.
• Require setbacks greater than 4 feet from the side and rear property lines, which may limit the ability to develop two units.

What are the steps to get the permits?

The process for obtaining permits for duplex development or an urban lot split includes several key steps:

1. Application Submission

Fill out and submit the City's approved application form with all necessary documents, including a full title report. The homeowner also needs to sign an affidavit, approved by the City Attorney, confirming compliance with housing preservation requirements.

2. Completeness Review

Ensure the application is complete. The City will notify the applicant within 30 days if the application is complete or incomplete.

3. Fee Payment

Pay the required fee set by the City to cover costs related to code implementation and enforcement. Submitting the fee with the application is important, as missing it will result in the application being considered incomplete.

4. Review Process

The review process for duplex development and urban lot split applications is streamlined through a ministerial process without discretionary review or public hearings. For urban lot splits, both the tentative and final parcel maps need ministerial approval.

5. Approval or Denial

The Community Development Director approves or denies the application. Denials can occur if there are significant impacts on public health, safety, or the environment that cannot be adequately mitigated.

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 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 estimated total cost for this project, which includes construction, permits, and professional services (excluding land), is $2,168,872. The projected value of the completed property in Duarte is approximately $2,750,000, yielding a return on investment (ROI) of [($2,750,000 - $2,168,872)/$2,168,872]*100 = 27%

Scenario 2

Lot Split with 2 new 4,000 sq. ft 3-story Duplexes

For the second scenario, we propose dividing the lot to build two separate three-story duplexes, each covering 4,000 square feet. The total estimated cost, not including land, is $3,475,576. The expected market value for these duplexes in Duarte is $4,400,000, resulting in an ROI of 27%.

Conclusion:

SB-9 projects in Duarte might result in an ROI below 50%. To mitigate this risk, consider additional financial protections or acquire the land at a significantly reduced price.

See how much it will cost you to improve your property per SB-9

Please enter a valid address

Related Articles

ADU Solutions for Aging in Place in Duarte

Everything You Need to Know About SB-684 Development in Duarte

How to get your permits fast or the benefits of using SB-423 in Duarte

How to Make My ADU a Profitable Investment in Duarte?

What are the requirements to build ADU in Duarte?

More articles ...

Resources

Duarte Municipal Code