City of Hidden Hills
All You Need to Know About Building on Properties in Hidden Hills Under SB-9
Using SB-9 for real estate projects in Hidden Hills City is a great way for homeowners to get cash to pay off part of their loan, add more units for rental income, or accommodate extended families while living in the main house. A successful SB9- project begins with understanding eligibility, property restrictions, and which SB9 option is the best financial choice for properties in Hidden Hills City.
What is SB-9 and how does it apply to the properties in Hidden Hills City?
What is SB-9?
Senate Bill 9 (SB-9) is designed to make the approval process for certain housing projects in California faster and simpler. It requires local governments to speed up approvals by using a streamlined process, avoiding lengthy environmental reviews (like CEQA) or other discretionary approvals from bodies such as the Planning Commission or Historic Preservation Commission. Participation is optional, but specific requirements should be met.
How does SB-9 apply to properties in Hidden Hills?
SB-9 affects properties in Hidden Hills by simplifying the process for approving housing projects. It allows single-family lots to contain two single-family homes, termed "two-residential units" Also, it enables the division of existing single-family lots into two separate lots, called "urban lot splits".
What can homeowners build under SB-9 or Hidden Hills’ HOME Act?
Urban Lot Split under SB-9
An urban lot split allows a single-family residential lot to be divided into two separate lots.
Under this option, you could have the following unit configurations:
Not sure if your property is located in a Single-family zoned area?
Two-Residential Unit under SB-9
A two-residential unit allows for up to two dwelling units on a lot primarily meant for single-family homes. This can include two new homes or a combination of one new home and one existing unit.
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 Hidden Hills, new units are limited to a maximum size of 800 square feet each. However, California's SB-9 rules allow for flexibility, meaning there are no size limits on the units themselves.
Each lot can have no more than two residential units, which include any ADUs or JADUs.
What are the setbacks?
Each residential unit requires a minimum setback of 4 feet from both the side and rear property lines.
What is the parking requirement under SB-9?
Under SB-9, each new residential unit should have at least one off-street parking space, unless one of the following conditions applies: the property is within a half-mile walk of a high-quality transit corridor or a major transit stop, or a car-share vehicle is located within one block.
What are the lot constraints under SB-9?
Each newly designated lot should have a minimum area of 1,200 square feet. Additionally, no new lot can be smaller than 40% of the original size. Each also needs to meet street frontage standards, requiring a minimum frontage of either 20 feet or 40% of the original lot's frontage, whichever is larger.
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?
The zoning districts eligible for SB-9 are those designated as single-family residential zones: RA-S, RA-S-2, and R-1.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes, the homeowner proposing an urban lot split is required to sign an affidavit stating they plan to live in one of the units as their main home for at least 3 years after the lot split is approved.
What are the rental regulations?
Renting out any units for less than 31 days, known as short-term rentals, is not allowed.
Are existing tenants’ rights protected?
Yes, existing tenants' rights are protected by preventing the demolition of exterior walls to no more than 25% for homes that have been occupied by tenants within the 3 years.
What is the difference between SB-9 and SB-684?
SB-684 is a more recent law compared to SB-9 and allows the development of up to 10 units on urban lots that are less than 5 acres in size. In contrast to SB-9, which focuses solely on single-family homes, SB-684 extends its scope to multi-family zones and vacant lots within single-family neighborhoods. One significant advantage of SB-684 is that it does not impose 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 receive ministerial approval, which streamlines the housing development process by offering clear and consistent criteria. This objective method minimizes bureaucratic delays and allows for quicker permit approvals without the need for extensive CEQA assessments or public hearings. Nonetheless, securing approval for a lot split could still take up to a year and a half.
What are objective standards?
“Objective zoning standards," “subdivision standards," and “design review standards” aim to remove personal opinions from public officials' decisions. These standards use clear, consistent criteria that developers and officials can refer to before submitting projects. This ensures reliable assessments and provides homeowners with straightforward guidelines for evaluating their proposals.
What types of objective standards qualify for a waiver under SB-9?
SB-9 allows certain objective standards to be waived, including:
- Regulations regarding setbacks for existing structures that block the development of two units.
- Setback criteria that are greater than 4 feet from the side and rear property lines, may restrict the construction of two units.
What are the steps to get the permits?
To obtain permits, follow these steps:
1. Submission: Submit your application for lot splits and SB 9 development according to the designated article.
2. Processing: Your application will go through ministerial processing with zoning clearance, which does not require public hearings or discretionary reviews.
3. Review and Decision: The Planning Director will evaluate your application and make a decision. If denied, the director will provide written reasons based on evidence about possible negative effects on public health, safety, or the environment. If no practical solutions exist to address these issues, the application may be rejected.
4. Finality of Decisions: Decisions made by the Planning Director are final and cannot be appealed.
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 constructing a three-story duplex with a total area of 4,000 square feet, along with a 1,000-square-foot Accessory Dwelling Unit (ADU). The anticipated total expenditure, which covers construction, permits, and professional services (excluding land), is $2,175,084. The projected market value of the finished property in Hidden Hills is approximately $7,500,000, resulting in a return on investment (ROI) of [($7,500,000 - $2,175,084) / $2,175,084] * 100 = 245%.
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
For this second scenario, we recommend dividing the lot to build two distinct three-story duplexes, each with 4,000 square feet. The total estimated cost, not including land acquisition, is $3,477,549. The anticipated market value for these duplexes in Hidden Hills is $12,000,000, resulting in an ROI of 245%.
Conclusion:
SB-9 projects in Hidden Hills offer exceptionally high returns on investment, making it an attractive and promising area for real estate development.
See how much it will cost you to improve your property per SB-9
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