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

What is SB-9?

SB-9, or Senate Bill 9, is a California law aimed at addressing housing shortages. It allows homeowners to split their single-family lots into 2 and build up to 2 homes on each new lot, potentially creating 4 housing units on a single property. The law streamlines the approval process bypassing lengthy environmental reviews and discretionary approvals, as long as certain criteria like lot size and zoning rules are met. However, properties in historic districts or environmentally sensitive areas are not included. Homeowners can decide whether or not to use SB-9.

How does SB-9 apply to properties in Lakewood?

SB-9 affects properties in Lakewood the same way it does in other parts of California. It allows homeowners to divide their single-family lots to create more housing options, such as duplexes or ADUs, under certain conditions. This law simplifies the approval process for these developments, aiming to address housing shortages while giving property owners more choices. It’s important to understand and follow Lakewood's specific zoning rules and other requirements when considering projects under SB-9.

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

Urban Lot Split under SB-9

An urban lot split divides a single property in a single-family residential area into two separate lots.

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

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

Please enter a valid address

Two-Unit Development under SB-9

A two-unit development is a housing project that includes 2 homes on a single lot that is designated for single-family residences.

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?

Under the City's SB-9, new units should be at least 150 square feet. However, California State SB-9 allows for units of any size to be constructed.

What are the setbacks?

Setbacks for new housing units include a 20-foot front setback, along with side yard setbacks, side street setbacks, and rear yard setbacks of 4 feet each.

What is the parking requirement under SB-9?

Parking requirements under SB-9 require that parking spaces should measure 9 feet wide by 20 feet long. In the R-1 or R-A zone districts, a minimum of 2 off-street parking spaces per lot is needed.

What are the lot constraints under SB-9?

In Lakewood, the new resulting lot should be at least 40% of the original lot's size, with a minimum size of 1,200 square feet.

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

Please enter a valid address

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 in zoning districts R-1 or R-A.

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

Does the homeowner need to reside on the property?

Yes. To get approval for the parcel map, the property owner has to agree to live on one of the two lots for at least 3 years after it is recorded.

What are the rental regulations?

Short-term rentals of any units on these lots for less than 30 days are not allowed.

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

SB-684 is a more recent legislation that streamlines the development of up to 10 units on urban lots smaller than 5 acres, focusing on both multi-family zones and unoccupied lots in single-family neighborhoods. In contrast, SB-9 specifically targets single-family properties and imposes ownership restrictions after development, a feature that is 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 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” seek to remove the biased conclusions made by government authorities. These criteria rely on external and standardized benchmarks that developers and officials can refer to before submitting proposals. This method ensures consistent and dependable assessments of projects, offering homeowners transparent and foreseeable standards for assessing their proposals.

What are the steps to get the permits?

To get permits under SB 9 in Lakewood, follow these steps:

1. Get to know the local planning and zoning laws for housing projects in Lakewood.

2. Make sure your development proposal follows statewide rules that apply to all cities.

3. Check that your proposal meets all relevant requirements, including rent control and historic district regulations specific to Lakewood.

4. Collect all necessary documents for your permit application.

Submit your completed application to the local agency that handles approvals.

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 initial scenario, we propose developing a three-story duplex totaling 4,000 square feet, along with a 1,000-square-foot Accessory Dwelling Unit (ADU). The anticipated overall cost, including construction, permits, and professional fees (excluding land), is $2,151,434. The estimated value of the completed property in Lakewood is about $3,500,000, resulting in a return on investment (ROI) of [($3,500,000 - $2,151,434) / $2,151,434] * 100 = 63%.

Scenario 2

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

For this second scenario, we recommend splitting the lot to construct two separate three-story duplexes, each with a total area of 4,000 square feet. The projected cost, not including land acquisition, is $3,457,711. The anticipated market value for these duplexes in Lakewood is $5,600,000, leading to an ROI of 62%.

Conclusion:

Real estate projects under SB-9 in Lakewood City show promising profitability, making it an appealing area for such projects.

Conclusion:

Real estate projects under SB-9 in Lakewood City show promising profitability, making it an appealing area for such projects.

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

Please enter a valid address

Related Articles

ADU Solutions for Aging in Place in Lakewood

Everything You Need to Know About SB-684 Development in Lakewood

How to get your permits fast or the benefits of using SB-423 in Lakewood

How to Make My ADU a Profitable Investment in Lakewood?

What are the requirements to build ADU in Lakewood?

More articles ...

Resources

Lakewood Municipal Code