City of Hawthorne
All You Need to Know About Building on Properties in Hawthorne Under SB-9
Using SB-9 for real estate projects in Hawthorne City is an excellent way for homeowners to get funds to reduce their loan balance. If you have additional money, you can also build extra units to earn rental income or create space for extended family while still living in your main house. To make an SB-9 project successful, start by figuring out if you qualify, understanding how the rules affect your property, and choosing the SB-9 option that makes the most financial sense for properties in Hawthorne City.
What is SB-9 and how does it apply to the properties in Hawthorne City?
What is SB-9?
SB-9, also known as the California Housing Opportunity and Enhanced Efficiency Act (HOME Act), seeks to boost housing density and affordability in California. It streamlines the approval process for certain housing projects by directing local officials to expedite their review through an alternative pathway, eliminating the need for lengthy environmental reviews (CEQA), Conditional Use Authorizations, or approvals from entities like the Planning Commission or Historic Preservation Commission.
How does SB-9 apply to properties in Hawthorne?
In Hawthorne, SB-9 allows homeowners to increase housing density and affordability by allowing them to build additional residential units on their properties. This includes the development of two single-family homes on a single lot, referred to as "two-unit residential" It also allows the splitting of existing single-family lots into two separate lots, known as "urban lot splits," through a streamlined process.
What can homeowners build under SB-9 or Hawthorne’s HOME Act?
Urban Lot Split under SB-9
An urban lot split is the division of a single lot into two smaller lots in 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 residential under SB-9
SB-9 allows the development of two-unit residential buildings in single-family zones. This can be either building two new units or adding one new unit to an existing 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?
In Hawthorne, each new primary dwelling unit should be at least 800 square feet. However, California’s SB-9 allows for units of any size. However, according to California's SB-9 regulations, there are no size limits.
What are the setbacks?
For regular lots, the front setback is 15 feet, while it is 10 feet for flag lots. Interior, side, and rear setbacks need to be at least 4 feet. Some features, like cornices and chimneys, can intrude into setbacks by up to two feet, ensuring enough space between structures for safety and aesthetics.
What is the parking requirement under SB-9?
Each new primary dwelling unit typically needs one off-street parking space. However, if the lot is within half a mile of a major transit stop or a block from a car-share location, parking requirements can be waived.
What are the lot constraints under SB-9?
For a lot split, one of the new lots cannot be less than 40 percent of the original lot's area. Each new lot should also have a minimum size 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 single-family residential zones, like the R-1 (Low-Density Residential Zoning District), as well as in planned unit development districts.
Can you disregard the environmental restrictions on the lot?
SB-9 does not allow disregarding environmental restrictions for lots in sensitive areas, including wetlands, and hazardous waste sites, unless cleared for residential use, floodways, conservation areas, and habitats for protected species. These rules help protect important ecological sites from potential harm.
Can you bypass the Historical Preservation limitations?
No, developments cannot be located in historic districts or on properties listed on the State Historic Resources Inventory. They also cannot be on sites designated as city landmarks or historic properties.
Is it allowed to demolish an affordable unit?
No, under SB-9, demolishing or altering affordable housing that has rent restrictions for moderate, low, or very low-income families is not allowed.
Is it allowed to build on a property in Coastal Zones?
Hawthorne City’s SB-9 does not specifically address coastal zones, so it is best to contact the planning department for guidance. Coastal areas often have stricter building rules than urban regions, so getting clarification from the local authorities is important.
Is it allowed to build in High-Risk Areas?
Building in high-risk areas is possibly allowed, but it often comes with conditions due to safety concerns. Properties in high fire hazard zones, special flood hazard areas, or regulatory floodways may need to follow specific rules or take additional safety measures.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes, for a specific period. The applicant for an urban lot split needs to sign an affidavit stating their intention to live in one of the new units as their main home for at least 3 years after the final parcel map is approved.
What are the rental regulations?
Rentals should be for more than 30 consecutive days.
Are existing tenants’ rights protected?
Yes, the proposed development cannot involve the demolition or changes to housing that is under rent control. If a unit has had a tenant within the last 3 years, it is protected from demolition or alteration. If any unit on the lot has been occupied in that time, the development cannot demolish more than 25% of the existing exterior walls of any housing unit.
Can condominiums be proposed as part of my Urban Lot Split application?
No, creating condominiums or common interest developments is not allowed on lots formed through an urban lot split or with an SB-9 two-unit residential development.
What is the difference between SB-9 and SB-684?
SB-684, a newer legislation, allows the construction of as many as 10 units on urban lots smaller than 5 acres. In contrast to SB-9, which is centered on single-family residences, SB-684 applies to multi-family zoning and vacant lots within single-family neighborhoods. One major benefit of SB-684 is that it does not enforce ownership restrictions following 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 that fall under SB-9 can receive ministerial approval, which simplifies the housing development process by providing straightforward and consistent guidelines. This approach is objective, reducing administrative delays and allowing faster permit approval without requiring lengthy CEQA assessments or public meetings. Nonetheless, obtaining approval for 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 rules set by the city. These standards use measurable criteria instead of personal opinions from officials. They are consistently defined and available to both developers and officials before any submission. These standards cover various land use requirements, including housing overlay zones, specific plans, inclusionary zoning ordinances, and density bonus ordinances.
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 obstruct the construction of two units.
- Setback guidelines greater than 4 feet from side and rear property lines that may limit building two units.
What are the steps to get the permits?
To obtain permits for an SB 9 two-unit residential development or an urban lot split, follow these steps:
1. Application Submission:
Fill out the application form from the city, making sure to include all required information and materials. Submit the form along with any applicable fees.
2. Review Process:
The director will review your application and decide to approve or deny it without any public hearing or discretionary review, following state law.
3. Nonconforming Conditions:
You don’t need to fix any existing legal zoning issues to get ministerial approval for a parcel map related to an urban lot split.
4. Effectiveness of Approval:
Approval will not be effective until all necessary documents are recorded as required by Chapter 16.52, Lot Splits unless the California Government Code says otherwise.
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 propose building a 4,000-square-foot, three-story duplex with a 1,000-square-foot Accessory Dwelling Unit (ADU). The total estimated cost for this project, including construction, permits, and professional fees (excluding land costs), is $2,141,576. The projected market value of the completed property in Hawthorne is approximately $2,250,000, resulting in an 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
In this second scenario, we plan to subdivide a lot and construct two new 4,000-square-foot, three-story duplexes. The estimated total investment for this development, excluding land acquisition costs, is $3,453,525.
The market value for these duplexes in Hawthorne is projected to be $3,600,000, yielding an ROI of 4%.
Conclusion:
SB-9 projects in Hawthorne pose a risk of an ROI below 50%. To mitigate this risk, additional financial precautions are necessary, or the land should be acquired at a very favorable price.
See how much it will cost you to improve your property per SB-9
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