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City of Hawaiian Gardens

City of Hawaiian Gardens

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

Using SB-9 for property projects in Hawaiian Gardens City is an effective strategy for homeowners looking to ease their mortgage burden. By adding extra units, you can create rental income or provide space for family members while still living in your main home. To make your SB-9 project successful, start by checking if your property qualifies, understanding the relevant rules, and choosing the SB-9 option that offers the best financial benefits for your property in Hawaiian Gardens City.

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

What is SB-9?

SB-9, or Senate Bill 9, aims to streamline the approval process for certain housing projects in California. It directs local officials to speed up the approval of these projects through a different pathway, avoiding the need for lengthy environmental reviews (CEQA), Conditional Use Authorizations, or similar approvals from groups like the Planning Commission or Historic Preservation Commission. Joining this program is voluntary and depends on meeting specific criteria.

How does SB-9 apply to properties in Hawaiian Gardens?

SB-9 requires cities like Hawaiian Gardens to allow single-family lots to be developed with two single-family homes, known as "two-unit projects." It also allows existing single-family lots to be split into two lots, called "urban lot splits," through a straightforward process. It gives homeowners more flexibility with their property.

What can homeowners build under SB-9 or Hawaiian Gardens’ HOME Act?

Urban Lot Split under SB-9

An urban lot split involves dividing an existing lot into two separate lots within a single-family property.

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

Not sure if your property is located in a Single-family zoned area?

Two-Unit Project under SB-9

A two-unit project allows homeowners to build two primary homes on a single lot or add a second home.

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?

Under Hawaiian Gardens’ SB-9 regulations, a second primary dwelling unit is limited to a maximum of 800 square feet. However, California state law allows new units of any size.

For lots created through an urban lot split, up to two homes can be built. This includes any combination of primary units, ADUs, or JADUs.

What are the setbacks?

For other structures up to 800 square feet, a minimum setback of 4 feet from the side and rear property lines is necessary.

For existing legally built structures or new ones matching their dimensions, no setbacks are required.

What is the parking requirement under SB-9?

Each new primary home generally requires at least one off-street parking space. However, parking can be waived if the lot is within half a mile of a frequent bus route, rail station, or a car-share location.

What are the lot constraints under SB-9?

The original lot should be at least 2,400 square feet, and each lot split has to be a minimum of 1,200 square feet. The new lot splits will also be within a 60%:40% size ratio of the original.

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?

Can you disregard the environmental restrictions on the lot?

No. The property is not located on prime farmland, farmland of statewide importance, or land designated for agricultural protection. Hazardous waste sites unless cleared for residential use. It also does not fall within wetlands or areas marked for conservation under any habitat or natural resource protection plans. Furthermore, it is not a habitat for protected species or restricted by conservation easements.

Can you bypass the Historical Preservation limitations?

No. The property cannot be listed as a historic site or located in a designated historic district under the State Historic Resources Inventory. It also cannot be part of a city or county landmark or be labeled as a historic property.

Is it allowed to demolish an affordable unit?

No. SB 9 projects cannot involve demolishing or altering housing that is designated for moderate, low, or very low-income households.

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

Yes, but it depends on the California Coastal Act of 1976. Development typically requires a coastal development permit to ensure compliance with policies protecting coastal resources and minimizing environmental impact, with specific regulations varying by the act and local zoning laws.

Is it allowed to build in High-Risk Areas?

Maybe. Building in very high fire hazard zones is allowed if all fire safety measures are met. However, construction is not allowed within earthquake fault zones unless seismic standards are followed, or in 100-year flood zones unless FEMA conditions are met. Development in floodways is only allowed if it comes with a no-rise certification.

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

Does the homeowner need to reside on the property?

Yes, the applicant for an urban lot split has to sign an affidavit stating they plan to live in one of the units as their primary residence for at least 3 years after the lot split is approved.

What are the rental regulations?

Units on lots created through an urban lot split cannot be rented for less than 30 days.

Are existing tenants’ rights protected?

Yes, tenant protections apply. The project cannot include demolishing or altering housing for tenants under rent control, those affected by the Ellis Act in the last 15 years, or tenants who have lived in the housing within the last 3 years.

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

SB-684 is a more recent law than SB-9 allowing the development of up to 10 units on urban lots that are less than 5 acres in size. While SB-9 focuses on single-family homes, SB-684 extends its reach to multi-family zones and vacant lots in single-family areas. A key advantage of SB-684 is that it imposes no ownership restrictions after construction, which is a requirement of 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 qualify for ministerial approval, which streamlines the housing development process by establishing clear and consistent criteria. This method is objective, minimizing bureaucratic delays and allowing for quicker permit acquisition without the need for extensive CEQA reviews or public hearings. However, securing approval for a lot split can still take as long as a year and a half.

What are objective standards?

“Objective zoning standards," “subdivision standards," and “design review standards” are rules that remove personal judgment from decisions made by public officials. These standards rely on clear, external criteria that developers and officials can access ahead of time, ensuring consistent and predictable project evaluations. Homeowners can expect straightforward guidelines when planning their proposals.

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

SB-9 allows for certain objective standards to be waived, including:

  • Setback rules for existing structures that hinder the construction of two units.
  • Setback guidelines that are greater than 4 feet from the side and rear property lines, which may limit the ability to build two units.

What are the steps to get the permits?

Steps to Get Permits for an SB-9 Project:

1. Submit Application: Property owners can apply for an urban lot split or two-unit project by filling out the city’s approved form and paying the required fee set by the city council.

2. Approval Process: The application goes to the Community Development Director for review. If all requirements are met, it's approved through a straightforward process. If there are any issues, the applicant is notified within a certain time.

3. Meet Requirements: Projects need to follow all applicable rules, including zoning and subdivision standards. Failure to do so could lead to penalties or losing the permit.

4. Receive Permits: Once approved, the permits needed to start construction or development are issued.

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 this scenario, we suggest building a three-story duplex with a total area of 4,000 square feet, plus a 1,000-square-foot Accessory Dwelling Unit (ADU). The total cost for this project, including construction, permits, and professional services (excluding the cost of land), is $2,141,576. The projected market value of the finished property in Hawaiian Gardens is around $2,250,000, resulting in a return on investment (ROI) of [($2,250,000 - $2,141,576)/$2,141,576]*100 = 5%

Scenario 2

Lot Split with 2 new 4,000 sq. ft 3-story Duplexes

For this option, we suggest splitting the lot to build two separate three-story duplexes, each 4,000 square feet. The overall estimated cost, excluding land, is $3,452,525. The anticipated market value for these duplexes in Hawaiian Gardens is $3,600,000, resulting in an ROI of 4%.

Conclusion:

Investing in SB-9 projects in Hawaiian Gardens may lead to an ROI of less than 50%. To reduce this risk, consider implementing extra financial protection or securing the land at a significantly discounted rate.

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

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