Source: City of La Verne
All You Need to Know About Building on Properties in La Verne Under SB-9
In La Verne, using SB-9 for real estate developments is an effective strategy for homeowners to obtain funds to significantly reduce their mortgages. With additional financial resources, you can construct more units to generate rental income or provide housing for family members while maintaining your primary residence. To ensure the success of an SB-9 project, begin by determining your property's eligibility, understanding the relevant regulations, and selecting the SB-9 option that provides the most advantageous financial outcome for your property in La Verne City.
What is SB-9 and how does it apply to the properties in La Verne City?
What is SB-9?
Senate Bill 9, or SB-9, streamlines the approval process for certain residential projects in California. It requires local authorities to fast-track these projects, removing the need for extensive environmental reviews (CEQA) and discretionary permits from agencies like the Planning or Historic Preservation Commissions. Participation in this program is optional and depends on meeting specific eligibility criteria.
How does SB-9 apply to properties in La Verne?
SB-9 allows for quick approval of two units on a single-family lot and urban lot splits in La Verne. It applies regardless of local ordinances. Introducing an SB-9 in La Verne helps maintain the character of residential neighborhoods, ensures design standards align with state law, provides clarity for project initiators, and promotes consistent processing of proposed projects.
What can homeowners build under SB-9 or La Verne’s HOME Act?
Urban Lot Split under SB-9
An urban lot split means dividing a single lot into 2 separate lots in 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 Development under SB-9
A two-unit development refers to the construction of two distinct housing units on a single lot within a single-family residential zone. If a primary residence already exists on the property, an additional primary unit can be built.
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 Verne, the minimum size for new units is 800 square feet, but they can be larger. However, under California's SB-9, developers have more flexibility in designing new residential units since there is no size limit.
Each lot is allowed to have two primary units, in addition to either two ADUs or two JADUs.
What are the setbacks?
In La Verne, a setback of up to 4 feet from the side and rear property lines may be required. Otherwise, if a new structure is built in the same location and size as an existing one, or if it is on a lot with an existing structure, no setback is needed.
What is the parking requirement under SB-9?
Under SB-9, each new residential unit needs one off-street parking space. However, this requirement can be waived if the parcel is within half a mile of a high-quality transit corridor or major transit stop, or if a car-share vehicle is within one block.
What are the lot constraints under SB-9?
No new lot can be smaller than 40% of the original lot's size, and each new lot should also be at least 1,200 square feet. Additionally, La Verne’s SB-9 does not allow splitting lots that have already been divided.
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 single-family residential zones.
Can you disregard the environmental restrictions on the lot?
No. Properties in areas designated for conservation, habitats for protected species, or lands with conservation easements are not eligible for SB-9.
Is it allowed to demolish an affordable unit?
No. SB-9 prohibits demolishing or altering existing residential structures that have affordable rent restrictions.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes. In La Verne’s SB-9, the applicant is required to sign an affidavit stating they will occupy one unit for 3 years after the map approval.
What are the rental regulations?
Short-term rentals are not allowed, with rental periods typically longer than 30 to 31 days.
Are existing tenants’ rights protected?
Yes. Existing tenants' rights are protected. The law prevents the demolition or alteration of residential buildings that are under rent control or have had a renter living in them within the last 3 years.
What is the difference between SB-9 and SB-684?
SB-684 is a newer law than SB-9 that simplifies the process for developing 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 is aimed specifically at single-family properties and includes ownership restrictions after development, which are not present 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 can receive ministerial approval. This approach simplifies the housing development process by adhering to specified criteria, reducing administrative delays, and accelerating the permitting process. Therefore, it bypasses lengthy CEQA assessments and public meetings. However, obtaining approval for a lot split may still require up to 1.5 years.
What are objective standards?
"Objective zoning standards," "objective subdivision standards," and "objective design review standards" are set criteria used to avoid personal judgments by officials. These standards are based on clear and standardized measurements available to developers and officials before proposals are submitted. This ensures consistency and reliability in evaluating projects, giving homeowners straightforward guidelines for their proposals while meeting state laws.
What types of objective standards qualify for a waiver under SB-9?
SB-9 permits waivers for specific standards, such as:
- Rules that restrict the building of two units, each requiring to be at least 800 square feet.
- Setback regulations for current structures that obstruct the construction of two units.
- Setback criteria that are more than 4 feet from the side and rear property lines, which restrict the ability to build two units.
What are the steps to get the permits?
To obtain permits, applicants usually follow these steps:
1. Submit Application: Fill out and send the necessary forms and documents to the relevant city department.
2. Staff Review: City staff check the application to make sure it meets all requirements and is complete.
3. Planning Commission Review: If needed, the application goes to the Planning Commission for review and recommendation during a public hearing.
4. City Council Approval: Finally, the application may be presented to the City Council for approval at a public hearing.
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 the first scenario, we propose constructing a three-story duplex with a combined area of 4,000 square feet, along with a 1,000-square-foot Accessory Dwelling Unit (ADU). The estimated total cost for this project, covering construction, permits, and professional fees (excluding land costs), is $2,202,071. The anticipated market value of the finished property in La Verne is approximately $2,750,000, resulting in a return on investment (ROI) of [($2,750,000 - $2,202,071)/$2,202,071]*100 = 25%
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
For this scenario, we suggest splitting a lot to develop 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 $3,495,985. The projected market value for these duplexes in La Verne is $4,400,000, yielding an ROI of 26%.
Conclusion:
SB-9 projects in the City of La Verne carry the risk of a return on investment (ROI) below 50%. To mitigate this risk, you would need to take additional financial precautions or acquire the land at a very favorable price.
See how much it will cost you to improve your property per SB-9
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