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

What is SB-9?

SB-9, or Senate Bill 9, seeks to make it easier to navigate certain housing projects in California. It directs local authorities to speed up the approval process for these projects by using a more straightforward method, avoiding the need for lengthy environmental reviews or special approvals from groups like the Planning Commission or Historic Preservation Commission. Joining this program is optional and involves meeting specific criteria.

How does SB-9 apply to properties in Inglewood City?

In Inglewood, SB-9 streamlines the housing development approval process. It permits single-family lots to hold two single-family residences, known as "two-dwelling units." Additionally, it simplifies the splitting of existing single-family lots into two separate lots, called "urban lot splits."

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

Urban Lot Split under SB-9

An urban lot split divides a single lot into two separate lots in areas designated for single-family residential use.

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

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

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Two-Dwelling Units under SB-9

A two-dwelling unit refers to a housing project where two residential homes are constructed on a single-family zoned lot or when a second primary residence is added to a lot that already contains one 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 Inglewood, newly constructed residential units should be at least 800 square feet. However, California State SB-9 allows for the construction of units of any size.

Each lot created through an urban lot split can hold up to two units, consisting of ADUs and JADUs.

What are the setbacks?

The city can require a setback of up to 4 feet from the side and rear property lines. However, existing structures or those built in the same size and location as existing ones do not need a setback.

What is the parking requirement under SB-9?

Under SB-9, the parking requirement is one off-street parking space per unit, with exceptions. No parking requirements apply 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 vehicle is within one block of the parcel.

What are the lot constraints under SB-9?

Under SB-9, when creating two new lots, both should be roughly the same size, with neither being smaller than 40 percent of the original area. Each new lot needs to be at least 1,200 square feet and cannot have been created through a previous urban lot split.

Development Analysis calculates the max size under SB-9 for the highest return.

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Who and which properties are eligible for SB-9 or the HOME Act?

Which zoning designations are eligible for SB-9?

SB-9 applies to all properties in R1 zoning districts that are designated for single-family use.

Can you bypass the Historical Preservation limitations?

No, historical preservation limitations cannot be bypassed. Properties in historic districts or listed on the State Historic Resources Inventory, as well as those designated as landmarks by local ordinances, are not eligible.

Is it allowed to demolish an affordable unit?

No. SB-9 prohibits demolishing or altering housing that is covered by laws limiting rent to affordable levels for moderate, low, or very low-income individuals and families. Therefore, demolishing an affordable unit is not permitted.

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

Yes, building is allowed in coastal zones, but it needs to follow the California Coastal Act of 1976. This involves getting a coastal development permit and meeting specific policies aimed at preserving coastal resources and reducing environmental impact.

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

Does the homeowner need to reside on the property?

Yes, the homeowner is required to reside on the property. When applying for an urban lot split, the homeowner should sign a statement confirming their intention to occupy one of the units as their primary residence for at least 3 years from the approval date.

What are the rental regulations?

The rental rules state that any unit created under this provision needs to be rented for more than 30 days.

Are existing tenants’ rights protected?

Yes, SB-9 protects the rights of existing tenants. The law aims to keep various types of housing from being demolished or altered, including homes under rent control or occupied by tenants in the last 3 years.

Additionally, the area where the development is proposed cannot have had rental agreements terminated by the owner in the past 15 years. The project also cannot involve demolishing more than 25 percent of the existing exterior walls.

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

SB-684, a more recent law, allows the construction of up to 10 units on urban lots smaller than 5 acres, applying to multi-family zones and vacant lots in single-family neighborhoods. On the other hand, SB-9 focuses only on single-family properties and includes ownership restrictions after development, which are absent in SB-684.

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, SB-9 projects qualify for ministerial approval, which streamlines the housing development process by following clear, predetermined standards. This method cuts down on bureaucratic delays and speeds up permit approval, avoiding long CEQA reviews or public hearings. Despite this, the approval process 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” aim to remove personal opinions from decision-making. These standards are based on clear benchmarks that developers and officials can reference before submitting proposals. This ensures consistent evaluations, giving homeowners reliable criteria for assessing their projects.

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

Under SB-9, waivers can apply to:

• Standards that prevent building two 800-square-foot units.
• Setback requirements for existing structures that block the construction of two units.
• Setbacks over 4 feet from side and rear lot lines that restrict building two units.

What are the steps to get the permits?

To obtain permits under SB 9, follow these steps:

1. Understand Local Regulations: Start by reviewing local planning and zoning laws, along with rules for accessory dwelling units and housing projects. Knowing these regulations is key to compliance.

2. Collect Necessary Documents: Gather all essential documents for your housing project or urban lot split application. This may include architectural plans, environmental assessments, financial records, and any other relevant materials.

3. Submit the Application: Send your completed application to the appropriate local authority for ministerial approval. This starts the formal review process for obtaining the permits needed.

4. Request Extension for Map (If needed): If you need a map extension, formally request one from the local legislative body or advisory agency. This helps you stay on track with regulatory timelines and keeps your approval process moving forward.

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 case, we propose building a three-story duplex totaling 4,000 square feet, along with a 1,000-square-foot Accessory Dwelling Unit (ADU). The estimated total expenditure, including construction, permits, and professional fees (excluding land), is $2,157,422. The anticipated market value for the finished property in Inglewood is around $2,500,000, resulting in a return on investment (ROI) of [($2,500,000 - $2,157,422) / $2,157,422] * 100 = 16%.

Scenario 2

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

In this second scenario, we suggest splitting the lot to develop two separate three-story duplexes, each with a total of 4,000 square feet. The estimated cost, excluding land acquisition, is $3,462,835. The projected market value for these duplexes in Inglewood is $4,000,000, yielding an ROI of 16%.

Conclusion:

SB-9 projects in Inglewood carry a significant risk of achieving an ROI below 50%. To reduce this risk, consider additional financial strategies or securing land at a substantially reduced rate.

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

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Resources

Inglewood Municipal Code