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All You Need to Know About Building on Properties in Escondido Under SB-9
Using SB-9 for property ventures in Escondido provides homeowners with an excellent opportunity to secure funds for repaying a significant portion of their mortgage. Additionally, if resources are available for adding more units, it can create rental income or offer housing for extended families while continuing to live in the main residence. To ensure a successful SB-9 project, it is essential to comprehend the eligibility requirements, the specific restrictions for the property, and which SB-9 option is financially viable for properties in Escondido.
What is SB-9 and how does it apply to the properties in Escondido city?
What is SB-9?
Senate Bill 9 (SB-9) is an important California law that aims to streamline the approval of certain housing developments in California. It directs local agencies to fast-track these approvals through an alternate pathway, bypassing extended environmental assessments, conditional use permits, or other in-depth reviews by planning or historical commissions. This program is optional and has specific eligibility requirements.
How does SB-9 apply to properties in Escondido?
In Escondido, SB-9 affects properties by making it easier to build additional housing. The bill allows single-family lots to be divided into two, which may create more housing availability. This shift could help address housing shortages while offering property owners or developers a chance to enhance property values.
What can homeowners build under SB-9 or Escondido’s HOME Act?
Lot Split under SB-9
This process involves dividing a single lot into two separate lots to build residential units on each.
Under this option, you could have the following unit configurations:
Not sure if your property is located in a Single-family zoned area?
Two-Family Dwellings under SB-9
It refers to two units, either attached or detached, on properties zoned 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?
Each new unit can be 400 to 2,000 square feet. For units over 800 square feet, certain requirements apply:
- Up to 1,200 square feet: The lot should be 1.5 times the zone's minimum size, with no ADUs allowed on the property, a recorded deed restriction against ADUs, and 2 covered parking spaces per unit (with a 450-square-foot limit on the garage).
- Up to 1,500 square feet: In the R-E zone, the lot should be 1.5 times the minimum size; in the R-1 zone, it must be at least 20,000 square feet. Requirements from the 1,200-square-foot units still apply.
- Up to 2,000 square feet: The lot should be at least 1 acre, meeting all 1,200-square-foot unit requirements.
However, SB-9 allows for units of any size, regardless of these restrictions.
Each lot allows the development of two housing units, including options for ADUs and JADUs.
What are the setbacks?
The minimum side and rear yard setbacks for a two-family dwelling need to be at least 4 feet.
What is the parking requirement under SB-9?
For each new unit in a two-family dwelling, there should be at least one off-street parking space. However, if the dwelling is within half a mile of a high-quality transit corridor or major transit stop, or if there's a car-share vehicle within one block, the parking requirement can be waived.
What are the lot constraints under SB-9?
After an urban lot split, each new lot needs to make up at least 40% of the original parcel's area. Each lot has to be a minimum of 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 estate residential (R-E) and single-family residential (R-1) zones.
Can you disregard the environmental restrictions on the lot?
No. Under Escondido’s SB-9, the California Environmental Quality Act (CEQA) requires an environmental impact assessment for projects by public agencies. This means the city, as the lead agency, has to conduct an environmental review as part of the approval process.
Can you bypass the Historical Preservation limitations?
No. SB-9 projects cannot be built in areas marked as historic districts or listed on the State Historic Resources Inventory.
Is it allowed to demolish an affordable unit?
No. New developments under SB-9 cannot be allowed on lots where demolishing or changing certain types of housing is involved, especially those with rent restrictions for low- or very low-income individuals and families. Additionally, more than 25% of existing exterior walls cannot be demolished unless the lot has been unoccupied by a tenant for the past 3 years.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
No. Escondido City’s SB-9 does not require the owner to live on the property for any specific time.
What are the rental regulations?
New units built under SB-9 can only be rented for longer than 30 days.
Are existing tenants’ rights protected?
Yes. SB-9 protects current tenants by preventing projects from demolishing or changing units that have been occupied within the last 3 years. Properties where the Ellis Act was used for eviction in the past 15 years are also ineligible for SB-9. These rules help prevent the displacement of current residents.
Can condominiums be proposed as part of my Urban Lot Split application?
No, condominiums cannot be included in an SB-9 Urban Lot Split application. SB-9 allows splitting a single-family lot into two and building up to two units on each lot. Condominium conversions require a more complex process, including a Parcel Map, fees, environmental reviews, public hearings, and appeals.
What is the difference between SB-9 and SB-684?
SB-684, a recent law, allows up to 10 units on urban lots under 5 acres. Unlike SB-9, which is largely centered on single-family residences, SB-684 applies to multi-family zoning and vacant lots in single-family areas. Furthermore, SB-684 does not impose the ownership restrictions 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, SB-9 projects can undergo ministerial approval, allowing them to meet specific requirements for a faster development timeline. This method reduces administrative delays by bypassing lengthy environmental reviews and public hearings. However, approval for a lot split may still take up to 1.5 years.
What are objective standards?
“Objective zoning standards," “objective subdivision standards," and “objective design review standards” are clear and measurable criteria used to evaluate a development project. They ensure the project follows established regulations. These standards are created to effectively implement laws like those in Senate Bill 9 and are developed through a thorough review process by city planning divisions.
What types of objective standards qualify for a waiver under SB 9?
Under SB-9, the types of objective standards that may qualify for a waiver include specific criteria related to the construction of two-family homes or lot splits. These standards include factors such as unit size, setbacks, spacing between buildings, parking requirements, and access provisions.
What are the steps to get the permits?
1. Review the Requirements
Get familiar with the regulations in Section 33-115 of the Escondido Zoning Code, which covers the purpose and requirements for two-family homes.
2. Prepare Application
Submit a major Plot Plan application as outlined in division 8 of article 61 of the Escondido Zoning Code. Make sure it meets all Municipal Code requirements and other relevant development standards.
3. Application Review
The Director of Development Services or their representative will check your application for compliance with the set standards and zoning rules. If it meets the criteria, it will be approved.
4. Appeals Process
If your application is denied, you can appeal the decision. The appeals process follows section 33-1303 of the Escondido Zoning Code.
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
In this first scenario, we propose constructing a 4,000-square-foot, three-story duplex along with a 1,000-square-foot ADU. The estimated total cost, covering construction, permits, and professional fees (excluding land acquisition), is $1,832,574. Located in the City of Escondido, the market value of the finished property would be around $2,400,000. As a result, the ROI for this SB-9 project is calculated as [($2,400,000 - $1,832,574)/$1,832,574]*100 = 31%
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
In the second scenario, we plan to subdivide a lot and build two new 4,000-square-foot, three-story duplexes. The projected investment for this development is $2,953,804, excluding any land acquisition costs.
In Escondido City, the estimated market value for this project is $3,840,000, resulting in a 30% ROI.
Conclusion:
SB-9 projects in the City of Escondido offer modest returns on investment, making it a relatively conservative option for real estate development, whether through lot splitting or new construction.
See how much it will cost you to improve your property per SB-9
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