City of El Monte

All You Need to Know About Building on Properties in El Monte Under SB-9

Using SB-9 for real estate projects in El Monte City is a practical 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 in El Monte City.

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

What is SB-9?

SB-9, known as Senate Bill 9, is designed to streamline the approval processes for specific housing developments in California. It instructs local governments to expedite the approval of these projects via a different pathway, eliminating the requirement for detailed environmental reviews (CEQA), Conditional Use Permits, or other discretionary approvals from entities like the Planning Commission or Historic Preservation Commission.

How does SB-9 apply to properties in El Monte?

In El Monte, SB-9 allows homeowners in single-family zones to increase housing density through a streamlined approval process. Homeowners can develop up to two units on one lot or split a lot it into two, provided they meet specific conditions outlined in the law.

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

Urban Lot Split under SB-9

Under SB-9, homeowners can apply for an urban lot split, which divides a single-family lot into two separate lots. Each new lot can then accommodate up to two units.

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?

In El Monte, each new unit can be up to 800 square feet, with a one-story height limit of 16 feet. However, California State SB-9 allows for units of any size to be constructed.

After an urban lot split, each new lot can accommodate a maximum of two residential units, including primary homes, ADUs, and JADUs.

What are the setbacks?

The front and street side setbacks follow the rules of the zoning area, while interior side and rear setbacks are set at 4 feet.

What is the parking requirement under SB-9?

Each unit needs one tandem open parking space. However, no parking is required if the property is within a half-mile walk of a High Transit Corridor, Major Transit Stop (MTS), or within one block of a car-sharing vehicle location.

What are the lot constraints under SB-9?

When splitting a lot, each new lot has to be at least 40% of the original size. Additionally, both new lots need to be no smaller than 1,200 square feet, ensuring they remain large enough for development.

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 one-family dwelling zones (R-1A or R-1B).

Can you disregard the environmental restrictions on the lot?

No. El Monte SB-9 does not allow the development of properties in environmentally sensitive areas like wetlands, floodways, hazardous waste sites (unless proper safety measures are provided), conservation areas, or habitats for protected species. These areas are excluded to protect the environment.

Can you bypass the Historical Preservation limitations?

No. Projects cannot be on properties in historic districts or listed as landmarks on the State Historic Resources Inventory or local registries. These rules protect historically significant sites from changes or damage.

Is it allowed to demolish an affordable unit?

No. SB-9 prohibits demolishing or altering housing that is rent-restricted for moderate, low, or very low-income families. This helps maintain affordable housing options.

Is it allowed to build on a property in Coastal Zones?

Though El Monte's SB-9 does not specifically address coastal areas, coastal zones often have stricter building regulations. It’s best to check with the planning department for specific rules.

Is it allowed to build in High-Risk Areas?

Maybe. Building in high-risk areas like fire hazard zones, earthquake fault zones, or flood zones is typically restricted. Local jurisdictions assess these projects to ensure compliance with safety regulations and may limit construction in such areas.

What are the limitations after completing a project using SB-9?

Does the homeowner need to reside on the property?

Yes. For an urban lot split, the homeowner has to sign an affidavit confirming they intend to live in one of the units as their primary residence for at least 3 years from the split approval date.

What are the rental regulations?

Short-term rentals are not allowed. The units can only be rented for periods of 30 consecutive days or more.

Are existing tenants’ rights protected?

Yes. Certain housing cannot be demolished or altered for an SB-9 project if it:

Falls under rent or price control.
Has been occupied by a tenant for the last 3 years.

Can condominiums be proposed as part of my Urban Lot Split application?

No, condominiums follow a different ownership structure and require the parcel map process, which includes fees, environmental reviews, public hearings, and appeals. SB-9's urban lot split does not apply to condominium conversions, even if splitting the lot creates multiple units.

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

SB-684, being a more recent law, simplifies the building process for up to 10 units on urban lots less than 5 acres in size. Unlike SB-9, which is restricted to single-family properties, SB-684 applies to multi-family zoning districts and vacant lots in single-family neighborhoods. A significant advantage of SB-684 is its absence of ownership restrictions following construction, a feature present in 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 can be eligible for a ministerial approval process, which simplifies the housing development process by providing clear and consistent guidelines. This enables faster permit approval without the requirement for extensive CEQA reviews or public hearings. Nonetheless, finalizing a lot split can still take as long as a year and a half.

What are objective standards?

“Objective zoning standards," “objective subdivision standards," and “objective design review standards” refer to rules that are clear and free of subjective judgment. These rules use consistent criteria, known in advance by both the applicant and the officials. This ensures everyone knows exactly what to expect when reviewing or submitting a project, leading to a more transparent and predictable process.

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

Under SB-9, certain objective standards may be waived if they:

Set setback requirements for existing buildings that block the construction of two units.
Require setbacks greater than 4 feet from the side and rear property lines, which could restrict the ability to build two units.

What are the steps to get the permits?

1. Application Preparation: Applicants first need to complete and submit the necessary forms and materials based on local regulations.

2. Submission of Applications: Depending on the project—whether it's for urban dwellings or an urban lot split—applicants submit their completed forms for review.

3. Review and Decision: The Community Development Director and City Engineer will check if the applications follow all guidelines, including zoning, development standards, and design criteria, before deciding on approval.

4. Fees and Utilities: Applicants typically need to pay impact fees and arrange connections to essential utilities during the permitting process.

5. Appeals Process: If the Community Development Director’s decision is challenged, applicants can appeal to the Planning Commission, whose decision will be final.

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 the first scenario, we recommend constructing a 4,000-square-foot, three-story duplex with a 1,000-square-foot Accessory Dwelling Unit (ADU). The total estimated cost, which includes construction, permits, and professional fees (excluding land acquisition), is $2,159,951. The projected market value of this property in El Monte is approximately $3,000,000, resulting in a return on investment (ROI) of [($3,000,000 - $2,159,951)/$2,159,951]*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 building two new 4,000-square-foot, three-story duplexes. The estimated total investment for this project is $3,466,261, excluding land acquisition costs.

In El Monte, the anticipated market value for these duplexes is $4,800,000, leading to an ROI of 38%.

Conclusion:

SB-9 projects in El Monte carry the risk of an ROI below 50%. To mitigate this risk, additional financial measures should be considered, or the land should be purchased at a very favorable price.

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

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