City of La Mirada
All You Need to Know About Building on Properties in La Mirada Under SB-9
In La Mirada City, using SB-9 for real estate projects allows homeowners to reduce a significant portion of their loans. With additional funds, you can construct extra units to generate rental income or accommodate family members while continuing to reside in your primary residence. To ensure a successful SB-9 project, first, verify your property's eligibility, understand the applicable regulations, and select the SB-9 option that provides the greatest financial benefit for your property.
What is SB-9 and how does it apply to the properties in La Mirada City?
What is SB-9?
SB-9, or Senate Bill 9, aims to simplify the approval process for certain residential projects in California. It requires local authorities to speed up approvals for these projects, avoiding lengthy environmental reviews (CEQA) and other discretionary approvals from groups like the Planning Commission or Historic Preservation Commission. Participation in this process is voluntary and depends on meeting specific eligibility criteria.
How does SB-9 apply to properties in La Mirada?
SB-9 impacts properties in La Mirada by making it easier to get approvals for new housing units and urban lot splits. This process is done to create more buildable lots in existing neighborhoods, which increases housing density and allows for more efficient use of land.
What can homeowners build under SB-9 or La Mirada’s HOME Act?
Urban Lot Split under SB-9
An urban lot split under SB-9 refers to the process of splitting one property into two lots, which applies only to 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?
Urban Dwelling Units under SB-9
Urban dwelling units are residential buildings created in certain zoning areas, usually in single-family neighborhoods. These units are detached homes designed to address housing needs within established communities.
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 Mirada, new dwelling units can range from 500 to 800 square feet. However, California's SB-9 allows for units of any size, which may override local limits.
Each lot can have a maximum of 2 primary dwelling units and either 2 ADUs or two JADUs on a site.
What are the setbacks?
For side and rear yard setbacks, there should be at least 4 feet from the property line. For the front yard, dwelling units need to be at least 20 feet from the front lot line.
Existing structures or those built in the same location and dimensions are not subject to this requirement.
What is the parking requirement under SB-9?
Under SB-9, each urban dwelling unit in La Mirada needs at least one on-site uncovered parking space. However, this requirement can be waived if the parcel is within half a mile of a "high-quality transit corridor" or a "major transit stop," or if a car-share vehicle is available within one block.
What are the lot constraints under SB-9?
You can create a maximum of two lots from a lot split. Each new lot is at least 1,200 square feet, and they should be roughly equal in size, with no lot smaller than 40% of the original lot's area. Flag lots, which have a unique shape, cannot be created through an urban lot split.
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 in certain residential zones, such as R-1 (Single-Family Residence), R-1CC (Single-Family Residence Country Club), and R-1V (Villa Residential in the Mission District Specific Plan).
Can you disregard the environmental restrictions on the lot?
No. Environmental regulations like Tree Preservation and LEED Platinum Certification still apply. These rules ensure that SB-9 projects are environmentally responsible and protect valuable resources, contributing to eco-friendly development and sustainable land use.
Can you bypass the Historical Preservation limitations?
No. SB-9's dwelling units cannot be built in a historic district, on property listed on the State Historic Resources Inventory, or on a site designated as a city or county landmark or historic property. These rules protect historically important sites and maintain the cultural integrity of the area.
Is it allowed to demolish an affordable unit?
No, demolishing or altering housing that is restricted for affordable use by law, ordinance, or covenant is not allowed. This rule ensures the protection of housing for moderate, low, or very low-income individuals and families.
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. As part of the urban lot split application, the owner has to sign an affidavit agreeing to occupy one of the housing units as their main residence for at least 3 years from the approval date of the split.
What are the rental regulations?
Short-term rentals are not allowed. Any unit created through an urban lot split should be rented for more than 30 days at a time.
Are existing tenants’ rights protected?
Yes. New units cannot involve the demolition or modification of certain types of housing, including those under rent control or that have had tenants within the last 3 years. Additionally, demolition is limited to no more than 25% of existing exterior walls unless the unit has not been occupied by tenants in the last 3 years.
Can condominiums be proposed as part of my Urban Lot Split application?
No. While SB-9 allows property owners to split a single-family lot into two, leading to up to 4 units, it is different from a condominium development. Condominiums require a separate process involving a Parcel Map, with fees, environmental reviews, and public hearings, unlike the streamlined SB-9 urban lot split process.
What is the difference between SB-9 and SB-684?
SB-684 is a newer law that simplifies the construction of up to 10 units on urban parcels under 5 acres, targeting both multi-family zones and vacant lots in single-family areas. In contrast, SB-9 pertains specifically to single-family properties and includes ownership limitations following development, which SB-684 does not have.
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 can obtain ministerial approval, which simplifies the housing development process by adhering to established criteria. This approach reduces administrative delays and accelerates permit approvals, eliminating the need for lengthy CEQA assessments and public hearings. However, the approval process for a lot split may still take up to 1.5 years.
What are objective standards?
"Objective zoning standards," "objective subdivision standards," and "objective design review standards" are predefined guidelines used in evaluating projects. These standards rely on specific, measurable criteria that both developers and officials can reference before submitting or reviewing a project. They remove subjective opinions from the approval process, making it predictable and transparent for homeowners and developers alike.
What types of objective standards qualify for a waiver under SB-9?
Under SB-9, waivers are allowed for the following standards:
- Rules that obstruct the building of two units, with each unit being a minimum of 500 square feet.
- Setback limitations from existing buildings that hinder the development of two units.
- Setback guidelines that surpass 4 feet from the sides and rear of the property, which limit the construction of two units.
What are the steps to get the permits?
To get permits for urban dwelling units or urban lot splits in La Mirada, follow these steps:
1. Application Submission
Submit your application for the urban dwelling unit or lot split to the Community Development Department. The application needs to meet the specific requirements set by the Community Development Director, including necessary documents and fees.
2. Director Review:
The Community Development Director reviews your application based on state and local laws. This process is straightforward and does not involve public hearings or notifications.
3. Departmental Review:
The director will send your application to other relevant city departments for their input. You will receive any feedback or suggested changes from these departments.
4. Approval:
If your application meets all the guidelines, the Community Development Director will approve it, possibly with some conditions. The decision is final unless someone appeals.
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 propose 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 projected total cost, including construction, permits, and professional fees (but excluding land costs), is $2,164,050. The estimated market value of the completed property in La Mirada is around $2,500,000, resulting in an ROI of [($2,500,000 - $2,164,050)/$2,164,050]*100 = 16%
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
For the second scenario, we plan to subdivide a lot and build two separate duplexes, each with three stories and 4,000 square feet. The total projected cost for this project, excluding land acquisition, is $3,474,776. The estimated market value for these duplexes in La Mirada is $4,000,000, resulting in an ROI of 15%.
Conclusion:
Investing in SB-9 projects in La Mirada may result in returns falling short of 50%. To mitigate this risk, consider implementing additional financial strategies or securing the land at a more favorable price.
See how much it will cost you to improve your property per SB-9
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