City of Glendale
All You Need to Know About Building on Properties in Glendale Under SB-9
Using SB-9 for real estate projects in Glendale is a great way for homeowners to get cash to pay back a good part of their loan or, if you have funds to add more units, generate rental income, or accommodate extended family members while continuing to live in the primary residence. A successful SB 9 project starts by understanding the eligibility, how the restrictions apply to the property, and which SB-9 option makes financial sense for property in Glendale City.
What is SB-9 and how does it apply to the properties in Glendale City?
What is SB-9?
To address California's housing scarcity, Senate Bill 9 (SB-9) aims to simplify the approval process for certain housing projects. It mandates local governments to accelerate approvals by eliminating the need for lengthy environmental assessments (CEQA), Conditional Use Permits, or reviews by entities such as Planning or Historic Preservation Commissions. While property owners are not required to participate, they must meet certain criteria if they choose to.
How does SB-9 apply to properties in Glendale?
In Glendale, SB-9 allows homeowners to create up to two residential units or split a lot within single-family residential zones. It allows property owners to create more housing options, usually for building new residential units. The law sets up a straightforward, non-discretionary approval process in line with state rules.
What can homeowners build under SB-9 or Glendale’s HOME Act?
SB-9 Lot Splits
This involves dividing a single property into two separate urban lots within a single-family residential zone.
Under this option, you could have the following unit configurations:
Not sure if your property is located in a Single-family zoned area?
SB-9 Housing Developments
Housing developments allow homeowners to build up to two residential units or add a second home in a single-family residential-zoned lot.
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?
In Glendale, new units need to be at least 150 square feet, which is the size of an "efficiency unit" defined by California law. The maximum size for these units is limited to 800 square feet. However, California SB-9 states that units of any size are allowed.
In a lot split, each new lot can have up to two primary homes, ADUs, and JADUs.
What are the setbacks?
New SB-9 units need to be set back no more than 4 feet from an interior lot line.
Existing dwelling units or accessory buildings do not require extra setbacks. If they are converted into SB-9 units, they still maintain this exemption.
What is the parking requirement under SB-9?
There’s a limit of one off-street parking space required for each dwelling unit, with some exceptions. For example, if the property is within half a mile of a high-quality transit corridor, a major transit stop, or one block of a car-share vehicle, the parking requirement may not apply.
What are the lot constraints under SB-9?
An SB-9 lot split cannot create lots smaller than 1,200 square feet. Additionally, it can only divide a lot into two new lots, with one of those required to be at least 40% of the original lot's size.
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 that qualify for SB-9 are located in single-family residential zones, specifically in ROS, R1R, and R1 zoning districts.
Can you disregard the environmental restrictions on the lot?
No. Glendale's SB-9 rules do not directly address environmental restrictions. However, California's SB-9 does not apply to properties in environmentally sensitive areas, such as wetlands, hazardous waste sites, floodways, conservation zones, and habitats for protected species. This exclusion is designed to protect these important ecological areas from potential harm due to development.
Can you bypass the Historical Preservation limitations?
No. The SB-9 guidelines in Glendale state that a lot split cannot be located in a historic district or include any structures listed on the State Historic Resources Inventory. They also need to avoid areas designated as city or county landmarks or historic districts under local rules.
Is it allowed to demolish an affordable unit?
No. Demolishing or altering certain types of housing, including units that have legal restrictions on rent prices to keep them affordable for moderate, low, or very low-income individuals and families, is not allowed.
Is it allowed to build on a property in Coastal Zones?
Glendale City's SB-9 does not specifically mention buildings in coastal zones. However, coastal areas often have stricter building codes than urban areas. It is best to contact the planning department for accurate information and guidance on building in these zones.
Is it allowed to build in High-Risk Areas?
It depends. Building in high-risk areas is generally possible, but often discouraged for safety reasons. Properties in high fire hazard zones, earthquake fault lines, 100-year flood zones, or floodways usually face stricter regulations aimed at reducing risks and ensuring safety for residents.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes, homeowners generally need to live on the property. They have to provide an affidavit, affirming that they plan to occupy at least one of the residential units created by the SB-9 lot split as their main home for at least 3 years after approval.
What are the rental regulations?
Units created under an SB-9 project need to be rented for more than 30 days. Additionally, home-sharing is not allowed in these developments.
Are existing tenants’ rights protected?
Yes. The SB-9 development cannot involve demolishing or altering certain types of housing. This includes units on properties where the owner has removed rentals within the last 15 years.
If any unit in an SB-9 development has had a tenant in the past 3 years, there are limits on how much of the existing exterior walls can be demolished—no more than 25% of the walls of occupied units can be taken down.
Can condominiums be proposed as part of my Urban Lot Split application?
No, SB-9 does not allow condominiums in an Urban Lot Split application. It allows splitting a lot for up to two units on each, but condominiums require a different process involving fees, assessments, and hearings.
What is the difference between SB-9 and SB-684?
SB-684 is a newer legislation that allows the construction of up to 10 units on urban lots smaller than 5 acres. In contrast to SB-9, which targets single-family properties, SB-684 applies to multi-family zoning and vacant lots in single-family neighborhoods. One significant benefit of SB-684 is that it does not have ownership limitations post-construction, 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 can be eligible for ministerial approval, which streamlines the process by establishing clear guidelines. This leads to quicker permit approvals without requiring CEQA evaluations or public participation. However, completing 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" are criteria used in these processes that do not rely on personal opinions from officials. Instead, they are based on uniform benchmarks that both developers and officials can access before submitting a project. This approach ensures consistency and predictability, giving homeowners a clear idea of what to expect from their proposals.
What types of objective standards qualify for a waiver under SB-9?
SB-9 allows for the waiver of certain objective standards, including:
- Restrictions on constructing two units, each with a minimum size of 800 square feet.
- Setback requirements for existing structures that impede the development of two units.
- Setback regulations are more than 4 feet from side and rear property lines, which may limit the construction of two units.
What are the steps to get the permits?
To get permits for an SB-9 project in Glendale, follow these steps:
1. Research Zoning Compliance
Check SB-9 rules and consult the Planning/Zoning department to ensure your project fits zoning regulations. You can contact them via email or phone, or schedule a consultation for feedback on your plans.
2. Pre-screen Application
Go to the Glendale Permits Portal to apply and get approval for the right Planning application, either "SB 9 Lot Split Parcel Map" or "SB 9 Housing Development."
3. Lot Split Application
If your project involves a lot split, apply for a Public Works review by reaching out to the Public Works Engineering & Land Development department. You can visit the public counter or call them to start the review process.
4. Housing Development Application
For housing development projects, apply for a building permit through the Glendale Permits Portal. Choose the correct permit category and submit your application online.
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 developing a 4,000-square-foot, three-story duplex with an additional 1,000-square-foot Accessory Dwelling Unit (ADU). The total estimated project cost, including construction, permits, and professional fees (excluding land acquisition), is $2,164,232. In the desirable Woodbury area of Glendale, the market value of this property is approximately $3,500,000. Consequently, the projected Return on Investment (ROI) for an SB-9 project in this neighborhood is calculated as [($3,500,000 - $2,164,232)/$2,164,232]*100 = 62%
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
In the second scenario, we consider subdividing a lot to construct two new 4,000-square-foot, three-story duplexes. The projected investment for this development is $3,489,748, excluding land acquisition costs.
In the Woodbury area, the estimated market value for this project is $5,600,000, yielding an ROI of 60%. However, in a different Glendale location, such as the more affordable Montecito Park neighborhood, the market value is around $4,800,000, resulting in a lower ROI.
Conclusion:
SB-9 projects in the Woodbury area show strong returns on investment, making it a promising location for real estate development. Conversely, projects in the Montecito Park neighborhood carry the risk of an ROI below 50%. To mitigate this risk, it is essential to implement additional financial precautions or secure the land at a highly favorable price. Thus, while investments in Woodbury are promising, caution is advised for ventures in Montecito Park.
See how much it will cost you to improve your property per SB-9
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