City of Imperial Beach
All You Need to Know About Building on Properties in Imperial Beach Under SB-9
Applying SB-9 for real estate ventures in Imperial Beach City is an excellent strategy for homeowners to generate funds to pay down a portion of their mortgage, create rental units, or provide space for extended family while residing in their primary home. To effectively use SB-9, homeowners need to understand eligibility criteria, and property regulations, and determine the most financially beneficial SB-9 option for their property.
What is SB-9 and how does it apply to the properties in Imperial Beach City?
What is SB-9?
SB-9, or Senate Bill 9, is a California law designed to promote the quicker approval of certain housing developments. It requires local governments to expedite these approvals using a streamlined approach, avoiding prolonged environmental assessments, conditional use permits, and thorough evaluations by planning or historical commissions. Participation in this project is optional and has specific eligibility criteria.
How does SB-9 apply to properties in Imperial Beach?
In Imperial Beach, SB-9 streamlines the process of approving housing projects. It allows single-family lots to support two single-family residences or "two-unit residential development." Moreover, it allows the division of existing single-family lots into two separate lots, referred to as "urban lot splits."
What can homeowners build under SB-9 or Imperial Beach’s HOME Act?
Urban Lot Split under SB-9
Urban lot split allows a property owner to split their lot into two 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 Residential Development under SB-9
This type of development allows for up to two residential units on a property. It can involve building two new units or adding one 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 Imperial Beach, each new unit should be at least 800 square feet in single-family zones. However, California State SB-9 does not set a strict minimum unit size, allowing flexibility in unit size.
Each lot can accommodate two separate housing units, such as a main house and an ADU and JADU.
What are the setbacks?
A minimum setback of 4 feet is required from the rear and side property lines.
What is the parking requirement under SB-9?
One off-street parking space per unit is needed under SB-9. This is waived if the parcel is within a half-mile walking distance of a high-quality transit corridor or major transit stop or if a car share is located within one block of the property.
What are the lot constraints under SB-9?
Each new lot should be at least 1,200 square feet. When splitting a lot into two, the resulting lots need to be roughly equal in size, with one not smaller than 40% of the original lot.
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 within the R-1-6000 and R-1-3800 zoning districts, which are designated as single-family zones.
Can you bypass the Historical Preservation limitations?
No, SB-9 does not allow bypassing Historical Preservation limits. The property cannot be within a historic district, listed on the State Historic Resources Inventory, or designated as a landmark or historic site by the city or county.
Is it allowed to demolish an affordable unit?
No, demolishing an affordable unit is not allowed under SB-9. The law prohibits removing housing that is protected by agreements or regulations keeping rents affordable for moderate, low, or very low-income households.
Is it allowed to build on a property in Coastal Zones?
Yes, SB-9 allows development in Coastal Zones as long as it follows the city's Local Coastal Program Land Use Plan, approved by the California Coastal Commission in 1984.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes, the homeowner needs to reside on the property. They need to submit an affidavit stating they plan to occupy one of the units as their main residence for at least 3 years, except for community land trusts or qualified nonprofit applicants.
What are the rental regulations?
Units created under urban lot splits can only be rented for periods longer than 30 days.
Are existing tenants’ rights protected?
Yes, SB-9 protects existing tenants' rights. Homes under rent control or occupied by tenants in the last 3 years cannot be demolished or altered. Also, the property cannot be developed if leases were ended in the past 15 years. No more than 25% of the exterior walls can be removed unless the home has not had a tenant in the last 3 years.
What is the difference between SB-9 and SB-684?
SB-684 is a newer regulation that allows the construction of as many as 10 units on urban properties smaller than 5 acres. In contrast to SB-9, which primarily targets single-family homes, SB-684 is relevant to multi-family zoning and vacant lots in areas designated for single-family housing. Additionally, SB-684 does not have the ownership limitations that are found in 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 processed through ministerial approval, allowing them to fulfill certain criteria that accelerate the development timeline. This approach minimizes administrative hold-ups by skipping extensive environmental assessments and public meetings. However, obtaining approval for a lot split can still take as long as 1.5 years.
What are objective standards?
“Objective zoning standards," “subdivision standards," and “design review standards” are fixed rules that do not rely on personal judgment. They provide clear, measurable guidelines that developers and officials can use, ensuring consistency and transparency in the approval process.
What types of objective standards qualify for a waiver under SB-9?
SB-9 allows some objective planning, zoning, and subdivision rules to be waived if they physically prevent building up to two units per lot or if they stop either unit from reaching the minimum size of 800 square feet.
What are the steps to get the permits?
1. Submit Application:
Complete and submit the SB-9 development application to the planning department.
2. Review Process:
The community development director will review your application without requiring public hearings or extra approvals.
3. Complete Requirements:
Make sure all the necessary steps are completed, such as covering any enforcement costs and keeping the city free from claims.
4. Record Covenant:
Before getting the building permit, file a covenant with the County Recorder’s Office.
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: 9 to 15 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 our initial scenario, we're considering the development of a new 4,000 square feet, 3-story duplex with a 1,000 square feet Accessory Dwelling Unit (ADU). The estimated total project cost, including construction, permit costs, and professional fees (excluding land acquisition), is $1,852,593. If this project were located in the Bayside area, a desirable neighborhood in the Imperial Beach area, the market value of such a building would be approximately $5,200,000. As a result, the projected Return on Investment (ROI) for an SB-9 project in this neighborhood of the Imperial Beach area is calculated as [($5,200,000 - $1,852,593) / $1,852,593] * 100 = 181%.
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
In the second scenario, we're considering subdividing a lot and constructing two new 4,000-square-foot, 3-story duplexes. This project is expected to require an investment of $2,997,346, plus land acquisition costs if you don't already own the land.
In the Bayside area, a building of this size has an estimated market value of $8,320,000, resulting in an ROI of 248%. In contrast, if you invest in a different location in Imperial Beach, such as the lower-end Central neighborhood, the market value of such a project is only $3,920,000, leading to a lower ROI.
Conclusion:
SB-9 real estate developments in the Bayside region exhibit substantial returns on investment, indicating that this area is an attractive choice for such ventures. Conversely, undertaking SB-9 projects in the Central area involves a greater risk of attaining an ROI below 50%. To mitigate this risk, implementing additional financial protections or acquiring land at a significantly lower price is advisable. Although Bayside presents favorable opportunities, investors should proceed with caution when considering projects in the Central area.
See how much it will cost you to improve your property per SB-9
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