CityStructure - Feasibility Study simplified
City of Gardena

City of Gardena

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

Using SB-9 for real estate projects in Gardena gives homeowners a practical way to significantly cut down on their debt. With the extra funds, you could build more rental units or create space for family members while still living in your main home. To successfully carry out an SB-9 project, start by checking if your property qualifies, understand the relevant rules, and choose the SB-9 option that offers the best advantages for your Gardena property.

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

What is SB-9?

Senate Bill 9, or SB-9, simplifies the approval process for certain residential projects in California. It allows local authorities to speed up approvals for these projects, avoiding lengthy environmental assessments (CEQA), Conditional Use Authorization, or similar approvals from agencies like the Planning Commission or Historic Preservation Commission. Participation in this program is optional and depends on meeting specific eligibility requirements.

How does SB-9 apply to properties in Gardena?

SB-9 allows Gardena homeowners to increase housing by building two-unit developments. This can also boost property value, create rental or sales opportunities, and offer a simplified permit process. It also contributes to easing housing shortages while maintaining the neighborhood’s character.

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

Two-unit housing under SB-9

Two-unit housing under SB-9 refers to a type of residential development that includes two separate homes, such as duplexes or two detached houses, within the same lot.

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

Unsure which SB-9 option works best for you and possible for your property?

How large can each new unit be, and how many can you have per lot?

In Gardena, each new unit needs to be at least 800 square feet. However, California's SB-9 offers more flexibility, allowing for units without specific size limits.

In a two-unit development, each new lot can have up to two primary homes, ADUs, and JADUs.

What are the setbacks?

For new buildings, there needs to be a four-foot setback from the side and rear lot lines.

For lots that face a street, a front setback of 20 feet is required. If the lot's width facing the street is greater than its depth, then a ten-foot setback from the street-facing lot line is needed.

Existing structures that are rebuilt in the same location and size do not have to follow setback rules.

What is the parking requirement under SB-9?

Each unit needs at least one parking space on the lot unless the lot is within a half-mile walking distance of a high-quality transit corridor.

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?

Only properties in single-family zones qualify for SB-9.

Can you disregard the environmental restrictions on the lot?

No. Environmental rules need to be considered when checking if properties qualify for SB-9 in Gardena. Properties in sensitive areas, like wetlands, hazardous waste sites (unless proper safety measures are provided), flood zones, conservation areas, and habitats for protected species, are exempt from SB-9. This rule is in place to protect important ecological areas from potential harm caused by development.

Can you bypass the Historical Preservation limitations?

No. Properties located in historic districts or listed on the State Historic Resources Inventory cannot participate in SB-9. This includes any site designated as a city landmark or historic property under city law.

Is it allowed to demolish an affordable unit?

In Gardena, demolishing or altering affordable housing units is not allowed. This includes homes with rent restrictions aimed at keeping them affordable for moderate, low, or very low-income individuals and families.

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

Gardena's SB-9 does not specifically mention coastal areas, so it is a good idea to check with the planning department. Coastal zones may have stricter building rules than urban areas.

Is it allowed to build in High-Risk Areas?

Possibly. Building in high-risk areas, like earthquake fault zones and flood hazard zones, is not allowed. However, if an applicant meets federal criteria for streamlined approval, the city cannot deny the application just because it does not meet extra permit requirements. Construction might be allowed if the site has a Letter of Map Revision from FEMA or meets FEMA standards for floodplain management.

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

What are the rental regulations?

Any unit created under Gardena’s SB-9 needs to be rented for at least 31 days.

Are existing tenants’ rights protected?

Yes, the rights of current tenants are protected under this housing development. No demolition or changes can happen to certain types of housing, including properties where the owner removed units from rent or lease in the past 15 years. Also, homes occupied by tenants in the last 3 years cannot be altered or demolished. These rules help ensure stability for existing tenants in the community.

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

SB-684, a more recent law, allows for the development of up to 10 units on urban lots under 5 acres. While SB-9 focuses on single-family properties, SB-684 extends to multi-family zones and vacant lots in single-family areas. A notable advantage of SB-684 is the absence of ownership restrictions after construction, which SB-9 does impose.

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 qualify for ministerial approval, which simplifies the process by providing clear rules. This results in faster permit approvals without the need for CEQA reviews or public input. Despite this, finalizing a lot split may 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" are clear criteria used in zoning and design processes to eliminate personal opinions from officials. These standards rely on measurable and consistent guidelines that developers and officials can access before submitting projects, ensuring everyone has the same expectations about how proposals will be evaluated.

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

Under SB-9, the following objective standards may be waived:

  • Rules preventing two units of at least 800 square feet.
  • Setbacks for existing buildings that block two-unit development.
  • Setback rules over 4 feet from side and rear lot lines, which could restrict building two units.

What are the steps to get the permits?

To obtain permits for Urban Lot Splits or Two-Unit Housing projects under SB-9 in Gardena, follow these steps:

1. Review Eligibility Criteria: Check that your proposed housing development fits the rules, including location requirements and any restrictions on demolishing or changing certain types of housing.

2. Comply with Design Standards: Make sure to follow setback rules, provide necessary easements for public services, and ensure enough parking based on how close the property is to transit options.

3. Meet Design Criteria: Follow the design guidelines for new buildings, considering aspects like size, shape, architectural details, rooflines, garages, driveways, and parking.

4. Submit Application: After confirming that everything aligns with the standards and requirements, submit your application for approval.

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 propose constructing a three-story duplex totaling 4,000 square feet, accompanied by a 1,000-square-foot Accessory Dwelling Unit (ADU). The overall projected expenditure, covering construction, permits, and professional fees (excluding land costs), is $2,162,721. The expected market value of this property in Gardena is around $3,250,000, which translates to an ROI of [($3,250,000 - $2,162,721)/$2,162,721]*100 = 50%

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 separate three-story duplexes, each covering 4,000 square feet. The projected total investment for this project, excluding the cost of land, is $3,466,474. The estimated market value for these duplexes in Gardena is $5,200,000, resulting in an ROI of 50%.

Conclusion:

SB-9 projects in Gardena present moderate ROI, making it a relatively cautious choice for real estate development.

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

Related Articles

ADU Solutions for Aging in Place in Gardena

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

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

How to Make My ADU a Profitable Investment in Gardena?

What are the requirements to build ADU in Gardena?

More articles ...

Resources