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City of Huntington Park

City of Huntington Park

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

Using SB-9 for real estate projects in Huntington Park City is a great way for homeowners to get cash to pay off part of their loan, add rental units, or accommodate extended family while staying in their main home. To succeed with SB-9, homeowners need to understand eligibility, property rules, and which SB-9 option is the best financial choice for their property in Huntington Park City.

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

What is SB-9?

Senate Bill 9 (SB-9) aims to expedite and simplify the approval process for certain housing developments in California. It mandates that local authorities streamline approvals, bypassing lengthy environmental assessments (such as CEQA) and other discretionary approvals from entities like the Planning Commission or Historic Preservation Commission. Participation is voluntary, but there are specific criteria that should be completed.

How does SB-9 apply to properties in Huntington Park?

In Huntington Park, SB-9 simplifies the approval process for housing developments. It allows single-family lots to accommodate two single-family homes, referred to as "two-unit development" Additionally, it allows the subdivision of existing single-family lots into two lots, known as "urban lot splits."

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

Urban Lot Split under SB-9

Under SB-9, an urban lot split means dividing a single lot into two separate lots within areas designated for single-family homes.

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 Development under SB-9

Under SB-9, a two-unit development means creating two residential units or a combination of one new unit and one existing unit on a lot designated for single-family homes.

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 Huntington Park, newly built residential units should be at least 800 square feet. However, according to the State of California, SB-9 permits units to be of any size.

Each lot formed through an urban lot split can accommodate two units, which may include ADUs and JADUs.

What are the setbacks?

The city can require setbacks of up to 4 feet from the side and rear property lines. Structures that are the same size and in the same position as existing buildings do not have to follow setback rules.

What is the parking requirement under SB-9?

Parking regulations under SB-9 require one off-street parking space per unit in Huntington Park. However, this requirement is exempt if the property is located within a half-mile radius of a high-quality transit corridor or major transit stop, or if a car-sharing vehicle is available within one block of the property.

What are the lot constraints under SB-9?

In Huntington Park, SB-9 requires that when splitting a lot into two, both lots should be relatively equal in size, with neither being less than 40% of the original parcel's area. Each resulting lot should be at least 1,200 square feet and should not have previously undergone an urban lot division.

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?

In Huntington Park, properties eligible for SB-9 are located in R1 zoning districts, which are specifically intended for single-family residential use.

Can you bypass the Historical Preservation limitations?

No, historical Preservation restrictions cannot be bypassed in Huntington Park. Properties within historic districts listed on the State Historic Resources Inventory or designated as landmarks or historic properties by city or county ordinances are ineligible.

Is it allowed to demolish an affordable unit?

No, demolishing an affordable unit in Huntington Park is not allowed. SB-9 clearly states that you cannot demolish or change housing covered by laws or agreements that regulate rent affordability for moderate, low, or very low-income individuals and families.

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

Yes, you can build SB-9 properties in Coastal Zones in Huntington Park, as long as you follow the rules outlined in the California Coastal Act of 1976.

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

Does the homeowner need to reside on the property?

Yes, the homeowner should live on the property. To start an urban lot split, the homeowner needs to provide a signed statement confirming their plan to occupy one of the housing units as their main residence for at least 3 years after the urban lot split is approved.

What are the rental regulations?

In Huntington Park, short-term rentals are not allowed. Rentals last longer than 30 days, in line with SB-9.

Are existing tenants’ rights protected?

Yes, SB-9 protects the rights of tenants living in properties. The law helps secure different types of housing from being demolished or changed, especially those under rent control or occupied by tenants within the last 3 years. However, the proposed project site cannot include areas where owners have ended rental or lease agreements in the past 15 years. Additionally, the project should not involve demolishing more than 25 percent of the existing exterior walls.

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

SB-684 is a newer law that allows up to 10 units on urban lots under 5 acres, applicable to multi-family zones and vacant lots in single-family areas. In contrast, SB-9 is restricted to single-family properties and imposes ownership limitations after development, which SB-684 does not.

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 are eligible for ministerial approval, simplifying the housing development process through established and straightforward guidelines. This objective approach helps reduce bureaucratic hold-ups and allows faster permit issuance without requiring lengthy CEQA evaluations or public consultations. However, gaining approval for a lot split may still take as long as a year and a half.

What are objective standards?

Objective criteria, such as "objective zoning standards," "subdivision standards," and "design review standards," aim to remove personal opinions from decision-making. These criteria are based on clear, external benchmarks that developers and officials can reference before submitting proposals. This approach ensures consistent evaluations, giving homeowners straightforward guidelines to assess their projects.

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

Objective standards that can be waived under SB-9 include the following:

  • Prevent the construction of two units, each at least 800 square feet.
  • Require setbacks for existing structures that would stop the building of two units.
  • Require setbacks greater than 4 feet from side and rear lot lines, which could limit the development of two units.

What are the steps to get the permits?

To secure permits under SB-9 in Huntington Park, follow these steps:

1. Explore Local Regulations: Get familiar with local Planning and Zoning laws, as well as any rules about accessory dwelling units and housing projects.

2. Follow Statewide Rules: Make sure your project aligns with statewide regulations that apply to all cities.

3. Confirm Compliance: Check that your development proposal meets all requirements, such as rent control, demolition limits, site considerations, and historic district rules.

4. Gather Documentation: Collect all the required documents for your housing development or lot split application.

5. Submit Your Application: Present your application to the local agency for ministerial approval.

6. Request Map Extension: If necessary, ask for an extension on the tentative map expiration date from the appropriate agency.

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 first scenario, we recommend constructing a three-story duplex with a total area of 4,000 square feet, complemented by a 1,000-square-foot Accessory Dwelling Unit (ADU). The estimated total expenditure, including construction, permits, and professional fees (excluding land), is $2,141,576. The projected market value for the completed property in Huntington Park is approximately $2,250,000, leading to 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 second scenario, we suggest dividing the lot to build two individual three-story duplexes, each with an area of 4,000 square feet. The estimated cost, excluding land acquisition, is $3,453,525. The projected market value for these duplexes in Huntington Park is $3,600,000, resulting in an ROI of 4%.

Conclusion:

SB-9 real estate developments in Huntington Park City might lead to an ROI of under 50%. To mitigate this risk, adopting extra financial strategies or obtaining land at a significantly lower price is recommended.

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

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