City of La Puente
All You Need to Know About Building on Properties in La Puente Under SB-9
In La Puente City, using SB-9 for real estate projects provides homeowners with an excellent opportunity to secure funds to reduce their mortgage, add rental units, or house an extended family while residing in their primary dwelling. To successfully implement SB-9, homeowners should comprehend eligibility criteria and property regulations and determine which SB-9 option offers the most financial benefits for their La Puente City property.
What is SB-9 and how does it apply to the properties in La Puente City?
What is SB-9?
Senate Bill 9 (SB-9) simplifies the approval process for certain housing projects in California. It mandates that local agencies fast-track these developments, eliminating the necessity for extensive environmental assessments (CEQA), conditional use permits, or approvals from bodies like the Planning Commission or Historic Preservation Commission. Participation in this process is optional, but specific criteria must be satisfied to be eligible.
How does SB-9 apply to properties in La Puente?
SB-9 provides significant advantages for homeowners in La Puente by allowing the division of single-family lots. This helps a single property to be converted into two, allowing for the potential construction of four housing units. The goal is to increase the number of buildable lots in existing neighborhoods, which enhances housing density and promotes more efficient land use.
What can homeowners build under SB-9 or La Puente’s HOME Act?
Urban Lot Split under SB-9
Homeowners can split one single-family lot into two separate lots within a single-family residential zone.
Under this option, you could have the following unit configurations:
Not sure if your property is located in a Single-family zoned area?
Two-Dwelling Units under SB-9
In SB-9, a two-dwelling unit refers to building two-unit homes on a single lot zoned for single-family residences. If there is an existing main residence, an additional primary unit may be constructed on the property.
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 Puente, new units need to be at least 800 square feet in size. However, California law imposes no upper limits, granting developers the choice to construct larger units if preferred.
Each lot can include two primary residential units along with a maximum of either two ADUs or two JADUs.
What are the setbacks?
In La Puente, the city may impose setbacks of up to 4 feet from the side and rear property lines. However, buildings that align with the size and placement of existing structures are exempt from having setbacks.
What is the parking requirement under SB-9?
SB-9 requires one off-street parking space per unit in La Puente. This rule is waived if the property is within half a mile of a high-quality transit corridor or major transit stop, or if a car-share vehicle is available within a block of the property.
What are the lot constraints under SB-9?
SB-9 in La Puente specifies that when splitting a lot, each new lot should be roughly equal in size, with neither being smaller than 40% of the original lot. Both lots are also at least 1,200 square feet, and cannot have been divided under SB-9 before.
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 La Puente, properties eligible for SB-9 are located in R1 zoning districts, which are intended for single-family residential use.
Can you bypass the Historical Preservation limitations?
No, properties in La Puente cannot bypass Historical Preservation rules. Buildings in historic districts, those on the State Historic Resources Inventory, or designated landmarks are excluded from SB-9 eligibility.
Is it allowed to demolish an affordable unit?
No, demolishing an affordable unit in La Puente is not allowed under SB-9. Housing with rent restrictions for moderate, low, or very low-income households cannot be altered or demolished.
Is it allowed to build on a property in Coastal Zones?
Yes, SB-9 projects are allowed in La Puente's Coastal Zones, but they need to follow the rules set by the California Coastal Act of 1976. This means getting a coastal development permit and meeting specific standards for environmental protection and coastal resource conservation.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes, homeowners are required to reside on the property. To start an urban lot split, homeowners should secure a signed statement confirming their plan to inhabit one of the housing units as their main residence for a minimum of 3 years from the approval date of the urban lot split.
What are the rental regulations?
In La Puente, rentals should be for longer than 30 days. Short-term rentals are not allowed under SB-9 rules.
Are existing tenants’ rights protected?
Yes, SB-9 protects tenants. It prevents the demolition or alteration of certain housing, including those under rent control or occupied by tenants in the past 3 years. Projects also cannot remove more than 25% of a property's exterior walls. Additionally, properties where leases were terminated in the last 15 years cannot be used for SB-9 projects.
What is the difference between SB-9 and SB-684?
SB-684 is a more recent regulation that streamlines the development of up to 10 units on urban sites smaller than 5 acres, applicable to multi-family zones and vacant lots in single-family neighborhoods. Conversely, SB-9 focuses on single-family properties and imposes post-development ownership restrictions, a requirement that SB-684 lacks.
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. This process streamlines housing development by following set guidelines, minimizing bureaucratic delays, and speeding up the permit acquisition process. As a result, it avoids extensive CEQA reviews and public hearings. Nonetheless, securing approval for a lot split can still take as long as 1.5 years.
What are objective standards?
Objective standards, like "objective zoning standards," "subdivision standards," and "design review standards," aim to remove personal judgments from government evaluations. These standards use clear, external criteria that developers and officials can check before submitting proposals. This ensures consistent and reliable project evaluations, giving homeowners straightforward criteria for their applications.
What types of objective standards qualify for a waiver under SB-9?
SB-9 allows certain planning, zoning, and subdivision rules to be waived. These waivers apply when implementing these standards, which would block the construction of up to two units per lot or prevent either unit from meeting the minimum size of 800 square feet.
What are the steps to get the permits?
To obtain permits under SB 9 in La Puente, follow these steps:
1. Know Local Rules: Familiarize yourself with local planning and zoning laws, as well as rules for accessory dwelling units and housing projects.
2. Follow State Regulations: Ensure you meet the statewide regulations that apply to all cities, including charter cities.
3. Check Compliance: Confirm that your development proposal meets relevant requirements, such as rent control, demolition limits, site considerations, and historic district rules.
4. Gather Documents: Collect all necessary paperwork for your housing development or lot split application.
5. Submit Your Application: Deliver your application to the appropriate local agency for approval.
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 La Puente 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 La Puente is $3,600,000, resulting in an ROI of 4%.
Conclusion:
Real estate projects under SB-9 in La Puente City could generate an ROI below 50%. To lessen this risk, it is advisable to employ additional financial strategies or acquire land at a much-reduced cost.
See how much it will cost you to improve your property per SB-9
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