City of La Habra Heights
All You Need to Know About Building on Properties in La Habra Heights Under SB-9
Using SB-9 for real estate projects in La Habra Heights City provides homeowners with an effective strategy to generate funds to significantly reduce their loan balance. With additional financial resources, it's possible to construct extra units to earn rental income or to accommodate family members while continuing to reside in the primary residence. To ensure an SB-9 project is successful, first determine if your property meets the qualifications, understand how the rules apply, and select the SB-9 option that provides the best financial benefits for your property.
What is SB-9 and how does it apply to the properties in La Habra Heights City?
What is SB-9?
SB-9, or Senate Bill 9, is designed to accelerate the approval process for certain housing developments in California. It allows local officials to quickly approve these projects without needing lengthy environmental assessments (CEQA) or discretionary approvals from groups like the Planning Commission or Historic Preservation Commission. Participation is voluntary and depends on meeting specific qualifications.
How does SB-9 apply to properties in La Habra Heights?
In La Habra Heights, SB-9 reduces the process for property owners by allowing two single-family residences on one lot, known as a "two-unit project." It also streamlines the division of single-family lots into two separate lots, referred to as "urban lot splits."
What can homeowners build under SB-9 or La Habra Heights’ HOME Act?
Urban Lot Split under SB-9
An "urban lot split" means dividing an already legally subdivided lot into two.
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 Project under SB-9
A "two-unit project" refers to the development of either two primary dwelling units or, if a primary dwelling unit already exists on the lot, the addition of a second primary dwelling 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 La Habra Heights, The minimum size for each unit is 500 square feet, while the maximum size is 800 square feet. However, in California, SB-9 allows units of any size.
Each lot created through an urban lot split can contain up to two units, which can include ADUs and JADUs.
What are the setbacks?
A new unit needs to maintain at least a four-foot setback from the side and rear lot lines. No setback is required for existing structures or new structures built in the same place and to the same size as existing ones.
What is the parking requirement under SB-9?
Under SB-9, each new primary dwelling unit needs to provide at least one off-street parking space.
What are the lot constraints under SB-9?
The lot proposed for a lot split needs to be smaller than 2,400 square feet. Each resulting lot should be less than 1,200 square feet. Additionally, the lot split cannot create lots where one is greater than 60% or falls below 40% of the original area.
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 need to be located within a single-family zone.
Can you disregard the environmental restrictions on the lot?
No, environmental restrictions related to protected species cannot be ignored. For undeveloped lots or areas within 200 feet of Open Space—Conservation zoning, a survey by a qualified biologist is required. This survey must verify the absence of habitats for protected species as defined by state or federal laws, including the Federal Endangered Species Act and the California Endangered Species Act.
Can you bypass the Historical Preservation limitations?
No, the restrictions related to historical preservation cannot be bypassed. If the lot is classified as a historic property or is part of a historic district listed on the State Historic Resources Inventory or designated as a city landmark or part of a historic district by ordinance, these rules need to be followed.
Is it allowed to demolish an affordable unit?
No, under SB-9, demolishing or altering housing designated for households with moderate, low, or very low income is not allowed.
Is it allowed to build in High-Risk Areas?
Possibly. Building in high-risk areas is allowed, but applications for SB-9 projects are assessed by the Director of La Habra Heights based on safety and environmental criteria. If located in a high-fire hazard area, proof of compliance with fire hazard mitigation standards and building codes is required, typically verified through an inspection. For lots in earthquake fault zones, documentation of adherence to seismic protection codes is necessary. Failing to provide this documentation may result in application rejection.
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 live on the property. The applicant signs a statement confirming their intention to occupy one of the units as their main home for at least 3 years after the urban lot split is approved.
What are the rental regulations?
Rental rules prohibit renting any unit on the property for less than 30 days.
Are existing tenants’ rights protected?
Yes, existing tenants' rights are protected under SB-9. If the project involves demolishing or changing specific types of housing—like properties with rent control, those withdrawn from rental under the Ellis Act in the last 15 years, or units occupied by tenants within the past 3 years—the application will be denied. These rules help ensure tenant rights and stability in the community.
Can condominiums be proposed as part of my Urban Lot Split application?
Condominium airspace divisions or common interest developments are not allowed as part of an urban lot split application.
What is the difference between SB-9 and SB-684?
SB-684 is a more recent regulation allowing the development of up to 10 units on urban lots smaller than 5 acres, applicable to multi-family zones and vacant plots within single-family neighborhoods. On the contrary, SB-9 focuses on single-family properties and imposes ownership restrictions after development, a feature that SB-684 does not include.
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 following predefined standards. This method minimizes bureaucratic delays and speeds up the permit approval process, avoiding extensive CEQA evaluations and public hearings. Regardless, securing approval for a lot split could take a year and a half.
What are objective standards?
"Objective zoning standards," "objective subdivision standards," and "objective design review standards" are set benchmarks used to evaluate projects without personal bias. These standards are based on clear, predefined measures that developers and officials can access before submitting a project. This helps ensure consistency and predictability in how projects are assessed, giving property owners clear criteria for evaluating their proposals.
What types of objective standards qualify for a waiver under SB-9?
SB-9 allows waivers for these standards:
- Regulations that prevent the construction of two units, each at least 500 square feet.
- Setback restrictions for existing structures that impede the construction of two units.
- Setback requirements greater than 4 feet from side and rear property lines that restrict the ability to build two units.
What are the steps to get the permits?
To get permits for an urban lot split or a two-unit project, follow these steps:
1. Preparation: Gather all necessary documents, like proof of property ownership, signed affidavits, and any required reports.
2. Complete Application: Fill out the city-approved application form with all the required details.
3. Submission: Submit the completed application form along with any fees to the city.
4. Review: The city will check your application to ensure it meets all requirements.
5. Approval: If your application is complete and meets the standards, the Director can approve the urban lot split or two-unit project.
6. Permit Issuance: After approval, the city will issue the necessary permits for your project.
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 constructing a three-story duplex with a total area of 4,000 square feet and an additional 1,000-square-foot Accessory Dwelling Unit (ADU). The estimated total expense for this project, covering construction, permits, and professional fees (excluding land costs), is $2,169,882. The expected market value of the completed property in La Habra Heights is approximately $2,500,000, resulting in a return on investment (ROI) of [($2,500,000 - $2,169,882)/$2,169,882]*100 = 15%
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
In this second scenario, we suggest splitting a lot to construct two separate three-story duplexes, each with a total area of 4,000 square feet. The estimated total cost for this project, excluding land acquisition, is $3,473,962. The projected market value for these duplexes in La Habra Heights is $4,000,000, resulting in an ROI of 15%.
Conclusion:
SB-9 projects in La Habra Heights carry the risk of a return on investment (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
Related Articles
ADU Solutions for Aging in Place in La Habra Heights
Everything You Need to Know About SB-684 Development in La Habra Heights
How to get your permits fast or the benefits of using SB-423 in La Habra Heights
How to Make My ADU a Profitable Investment in La Habra Heights?