City of El Cajon
All You Need to Know About Building on Properties in El Cajon Under SB-9
Using SB-9 for real estate projects in El Cajon City is a savvy way for homeowners to pay down a significant portion of their loan or, if they have additional funds, to add more units. This can generate rental income or provide housing for family members while still living in the main residence. To ensure a successful SB-9 project, begin by understanding the eligibility criteria, how the regulations apply to your property, and which SB-9 option is most suitable for your property.
What is SB-9 and how does it apply to the properties in El Cajon City?
What is SB-9?
California Senate Bill 9 (SB-9), also known as the Housing Opportunity and More Efficiency (HOME) Act, is a law aimed at increasing housing supply in the state. It simplifies the approval process for two key actions:
- Urban Lot Splits: Dividing a single-family zoned property into two separate lots.
- Adding a Second Dwelling Unit: Building an additional residential unit on a single-family property (e.g., an accessory dwelling unit).
By increasing housing density, SB-9 aims to create more housing options and alleviate the housing shortage in California.
How does SB-9 apply to properties in El Cajon?
SB-9 significantly impacts zoning rules and future development in El Cajon. It aims to expand housing options in single-family neighborhoods while keeping the unique character of each area. As a result, property owners and developers in El Cajon can expect a more efficient and predictable approval process for certain housing projects, promoting growth and improvement in the local housing market.
What can homeowners build under SB-9 or El Cajon’s HOME Act?
Urban Lot Split under SB-9
This process refers to the process of dividing an already legally subdivided lot within a city into two separate lots. This subdivision typically changes property boundaries to create 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?
How large can each new unit be, and how many can you have per lot?
When splitting an urban lot under SB-9, the new units are required to be a minimum of 800 square feet. However, if meeting this size requirement is difficult, the Community Development Director can grant administrative relief.
This relief might include easing setback requirements, which are the distances units should be from property lines. For example, setbacks might be reduced from an initial 5 feet to as little as 3 feet. This adjustment helps in constructing two units on each subdivided lot while still meeting the minimum size of 800 square feet per unit. However, California State SB-9 allows for units of any size.
What are the setbacks?
For side and rear setbacks, there is a minimum distance of 3 feet. There are exceptions to this rule, such as when existing structures are involved.
What is the parking requirement under SB-9?
SB-9 requires one off-street parking space per unit. However, there are exceptions: no off-street parking is needed if the parcel is within half a mile of a high-quality transit corridor or major transit stop, or if a car-share vehicle is within one block of the parcel.
What are the lot constraints under SB-9?
The designated parcel should be at least 40% of the original parcel's area before subdivision and at least 1,200 square feet in size. These rules ensure that the resulting parcels maintain a specific size and proportion, promoting effective land use and development in urban areas.
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 within the O-S, RS-40, RS-20, RS-14, RS-9, or RS-6 zoning districts.
Can you disregard the environmental restrictions on the lot?
No, El Cajon City's SB-9 includes environmental restrictions that prevent development in environmentally sensitive areas. These areas consist of wetlands, hazardous waste sites, conservation zones, and habitats for protected species. This measure protects these important ecological areas from potential harm caused by development.
Can you bypass the Historical Preservation limitations?
No, according to El Cajon City regulations, new developments cannot occur on parcels that are historic landmarks, listed on the State Historic Resources Inventory, or located within a designated historic district.
Is it allowed to demolish an affordable unit?
An SB-9 project cannot proceed if it involves demolishing or altering housing that has rent limits set by a recorded covenant, ordinance, or law aimed at keeping rents affordable for individuals and families with moderate, low, or very low incomes.
Is it allowed to build on a property in Coastal Zones?
El Cajon City's SB-9 does not specifically mention buildings in coastal areas. It is best to contact the planning department directly, as coastal zones may have stricter building rules compared to urban areas.
Is it allowed to build in High-Risk Areas?
The city's code indicates that development is not allowed within earthquake fault zones, or in flood-prone areas. These rules aim to minimize risks associated with natural disasters and environmental hazards, ensuring the safety of residents and properties.
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. Before recording the urban lot split parcel map, an applicant—excluding community land trusts or qualified nonprofit organizations—should sign an affidavit confirming their intention to occupy one of the housing units as their main home for at least three years from the date the urban lot split is approved.
Are existing tenants’ rights protected?
Yes, the rights of existing tenants are protected. An urban lot split cannot be implemented if it requires demolishing or altering housing that has been occupied by a tenant in the last three years.
Can condominiums be proposed as part of my Urban Lot Split application?
No, under California's SB-9, homeowners can divide a single-family lot into two and build up to two units on each lot, possibly resulting in four units on a property that was previously designated for single-family use.
Condominiums have a different ownership structure, where owners have rights to both the land and the building, as well as to specific units. Creating condominiums through a Parcel Map involves regular procedures like filing fees, environmental assessments, public hearings, and appeal periods. This process differs from the streamlined approach used for SB-9 Urban Lot Splits.
What is the difference between SB-9 and SB-684?
SB-684 is a more recent law that simplifies the process for building up to 10 units on urban properties smaller than 5 acres. Unlike SB-9, which focuses only on single-family residences, SB-684 pertains to multi-family zones and unoccupied lots in single-family areas. Additionally, SB-684 does not impose the ownership constraints that are present in SB-9 after development.
Below we compared SB-9 and SB-684 for you to understand the development framework outlined by each bill.
Development Analysis calculates the max size under SB-9 for the highest return.
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 that fall under SB-9 can use a ministerial approval process. This method streamlines housing development by offering clear and consistent guidelines. Unlike subjective approaches, ministerial approval relies on specific criteria, minimizing bureaucratic delays. Consequently, projects can obtain permits without extensive CEQA reviews or public hearings. However, securing approval for a lot split may still take as long as 1.5 years.
What are objective standards?
"Objective zoning standards," "objective subdivision standards," and "objective design review standards" are guidelines used to avoid personal or subjective judgment from public officials. Instead, these standards rely on clear, uniform benchmarks that both the development applicant and officials can access before submission. This approach ensures consistency and predictability in evaluating projects, giving homeowners clear expectations for the outcomes of their proposals.
What types of objective standards qualify for a waiver under SB-9?
Under SB-9, objective standards such as parcel size requirements, zoning limitations, and development guidelines for urban lot splits could potentially be waived. For instance, the rule that one of the parcels created by an urban lot split should be at least 40% of the original parcel's area, which is a minimum of 1,200 square feet, and the requirement to develop at least two units of at least 800 square feet on each lot could be waived under certain conditions outlined in the legislation.
What are the steps to get the permits?
1. Submit Application
Apply with the community development director. Include a fee set by the city council, copies of the urban lot split parcel map, and possibly a grading plan if the grading exceeds certain limits.
2. Director's Review
The director reviews the application and gets feedback from the building official and fire marshal on the design and required changes. The director can then approve, conditionally approve, or reject the urban lot split parcel maps.
3. Compliance Check
The proposed urban lot split needs to meet all requirements in the Subdivision Map Act and local rules. Not meeting these requirements could lead to the parcel map being rejected.
4. Recordation
Once the city approves it, the urban lot split parcel map is sent to the county recorder to be officially recorded.
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: 9 to 15 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 scenario, we suggest building a 4,000-square-foot, three-story duplex with an additional 1,000-square-foot Accessory Dwelling Unit (ADU). The total estimated cost, including construction, permits, and professional fees (excluding land costs), is $1,835,845. In El Cajon, the anticipated market value of the completed property is around $2,555,000, resulting in an ROI of [($2,555,000 - $1,835,845)/$1,835,845]*100 = 39%
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
In the second scenario, we propose subdividing a lot and constructing two new 4,000-square-foot, three-story duplexes. The total projected investment for this development is $2,955,625, excluding land acquisition costs.
In El Cajon, the estimated market value for these duplexes is $4,088,000, resulting in an ROI of 38%.
Conclusion:
SB-9 projects in El Cajon come with the risk of an ROI below 50%. To mitigate this risk, additional financial precautions should be taken, or the land should be acquired at a very favorable price.
See how much it will cost you to improve your property per SB-9
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