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

What is SB-9?

In an effort to combat California's housing shortage, Senate Bill 9 (SB-9) introduces a streamlined approval process for designated developments within single-family zoned areas. Under this legislation, qualifying projects, such as two-unit development or the subdivision of a lot into two, can be approved without the need for discretionary review, environmental impact reports (CEQA), or public hearings. Nonetheless, adherence to pre-established development standards is mandatory, and certain environmental regulations remain in effect.

How does SB-9 apply to properties in Lancaster?

SB-9 is a significant legislation designed to address housing shortages, particularly in areas like Lancaster City. This law facilitates the construction of additional residential units in single-family neighborhoods by permitting urban lot splits and two-unit projects through ministerial approval.

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

Urban Lot Split under SB-9

An urban lot split is a process where a single parcel of land, typically located in an urban or developed area, is divided into two or more separate lots.

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

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Two-Unit Residential under SB-9

SB-9's two-unit project refers to either constructing two primary dwelling units or, if a primary dwelling unit already exists on the lot, building a second primary dwelling unit on a legally subdivided lot.

You could have the following unit configurations:

How large can each new unit be, and how many can you have per lot?

Under Lancaster's SB-9, each main dwelling unit can have a floor area between 500 and 800 square feet. If an existing main home is already over 800 square feet, it cannot be expanded further. If it is smaller than 800 square feet, it can be enlarged up to that size but not beyond. Basements are not allowed. The total floor area for both units on the lot cannot exceed 1,700 square feet. However, California's SB-9 does not impose any size limit.

Allowed structures include 1 attached duplex, 2 main dwelling units, a main dwelling unit with an ADU, or a main dwelling unit with a JADU.

What are the setbacks?

Setbacks under SB-9 should follow the standard setbacks for the underlying zone, with some exceptions:

• Existing Structures: No setback is needed for a legally established structure or for a new structure built in the same spot and to the same size as an existing one.
• Side and Rear Setbacks: Setback areas should be at least 4 feet from side or rear property lines.
• Front Setback: Homes built under this rule are at least 25 feet from the front property line.

What is the parking requirement under SB-9?

Under Lancaster City’s SB-9, each dwelling unit needs at least 1 off-street parking space unless certain conditions apply. If the lot is within a half-mile walking distance of a high-quality transit corridor with bus service every 15 minutes during peak hours, or near a major transit stop like a rail or bus rapid transit station, the parking requirement may be waived.

If a car-share vehicle is available within one block of the lot, an off-street parking space may not be needed.

What are the lot constraints under SB-9?

The lot chosen for splitting needs to be at least 2,400 square feet, and each new lot created from the split has to be at least 1,200 square feet.

Each new lot occupies between 40% and 60% of the original lot's area, and all lot boundaries align with existing zoning boundaries. Each new lot's width matches that of the original lot.

No urban lot split application is accepted for any lot created by a previous urban lot split, and applications cannot be made for lots next to those established through an earlier urban lot split by the owner or anyone working with them.

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

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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 in specific zoning districts, including single-family residential zones like rural residential RR-2.5, rural residential RR-1, semi-rural residential SRR, residential R-15,000, residential R-10,000, and residential R-7,000.

Can you disregard the environmental restrictions on the lot?

No, the project lot cannot be on a site classified in Lancaster City as prime farmland, farmland of statewide importance, or zoned for agricultural protection. It also cannot be a hazardous waste site unless cleared for residential use, a wetland that would hinder development or be burdened by a conservation easement or designated for conservation in an adopted plan. Additionally, the lot should not contain habitat for protected species that would prevent development or be in areas affected by recorded easements that would block construction.

Can you bypass the Historical Preservation limitations?

No, Lancaster City's SB-9 does not override historical preservation rules. It is important to note that SB-9 does not apply to properties in historic and landmark districts, which are protected to maintain the historical integrity of neighborhoods.

Is it allowed to demolish an affordable unit?

No, demolishing or altering properties classified as affordable housing is not allowed. This includes housing with income restrictions for moderate, low, or very low-income households and any unit occupied by tenants within the last 3 years.

Is it allowed to build on a property in Coastal Zones?

While Lancaster City's SB-9 does not specifically address buildings in coastal zones, it is advisable to check with the planning department. Coastal areas usually have stricter building regulations than urban zones, so getting personalized advice is essential before starting any construction plans.

Is it allowed to build in High-Risk Areas?

It depends. The lot cannot be in any of the following conditions:

1. Within a high fire hazard severity zone, unless it meets all fire hazard mitigation measures required by existing building standards or state fire regulations.

2. Within a designated earthquake fault zone, unless all development meets applicable seismic protection building codes.

3. Within a 100-year flood hazard area determined by FEMA, unless it meets specific FEMA criteria or has received a letter of map revision.

4. Within a regulatory floodway as defined by FEMA, unless it has obtained a no-rise certification per federal regulations.

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

Does the homeowner need to reside on the property?

Yes, in Lancaster City under SB-9, the homeowner seeking to split the lot has to live on the property as their main residence for at least 3 years. This owner-occupancy requirement is part of the SB-9 guidelines and needs to be confirmed with a signed affidavit included in the application.

What are the rental regulations?

Any unit created must be rented for more than 30 days.

Are existing tenants’ rights protected?

Yes, housing subject to rent or price control, housing taken off the rental market under the Ellis Act in the last 15 years, and housing occupied by a tenant within the last 3 years is protected from changes or demolition under SB-9.

Can condominiums be proposed as part of my Urban Lot Split application?

No, condominiums have a different ownership structure and require a standard process involving filing fees, environmental assessments, public hearings, and appeals. This differs from SB-9 Urban Lot Splits, which allow dividing a single-family lot into two and building up to four units total.

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

SB-684 is a newer law that streamlines the development of up to 10 units on urban lots smaller than 5 acres, applicable to multi-family zones and vacant single-family properties. In contrast, SB-9 focuses on single-family residences and includes post-development ownership restrictions, which are not found 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, projects falling under SB-9 can receive ministerial approval, which streamlines the housing development process by establishing straightforward and uniform guidelines. This method differs from more subjective approaches, as it relies on defined standards that help minimize bureaucratic delays. Therefore, projects can secure permits without going through lengthy CEQA assessments or public hearings. However, even with this expedited process, gaining approval for a lot split could still take as long as 1.5 years.

What are objective standards?

“Objective zoning standards," “objective subdivision standards," and “objective design review standards” are clear criteria that do not rely on personal opinions from officials. Instead, they are based on fixed benchmarks that can be easily verified. These standards are straightforward and understandable for both applicants and officials before submission, ensuring fairness and consistency in decision-making for development projects.

What types of objective standards qualify for a waiver under SB 9?

SB-9 allows for waivers on certain criteria, including:

• Restrictions prevent the construction of two units, with each unit needing a minimum size of 500 square feet.
• Setback guidelines for existing buildings that hinder the establishment of two units.
• Setback requirements exceeding 4 feet from the side and rear property boundaries, which limit the construction of two units.

What are the steps to get the permits?

To obtain permits for two-unit projects or urban lot splits, property owners should follow these steps:

For Two-Unit Projects:

1. Apply: Complete the city’s application form. Only complete applications will be reviewed.

2. Obtain Certificate of Compliance: Get this certificate for the lot as required and include it with your application.

3. Pay Fees: Pay any processing fees when applying.

4. Approval Process: The community development director will review and approve or deny the application without a discretionary review.

5. Record Required Documents: If approved, ensure all necessary documents, like deed restrictions and easements, are recorded.

6. Reimbursement and Liability: Agree to hold the city harmless from any claims and cover enforcement costs.

For Urban Lot Splits:

1. Apply: Complete and submit the city’s approved form. Incomplete applications will receive notification within 30 days.

2. Pay Fees: Pay the required processing fees with the application.

3. Approval Process: The development services director will review and approve or deny the application without a public hearing.

4. Tentative Parcel Map: If approved, a tentative parcel map will be issued without needing to be recorded. A final parcel map gets approval once the required documents are recorded.

5. Reimbursement and Liability: Agree to hold the city harmless from claims and cover enforcement costs.

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 4,000-square-foot, three-story duplex along with a 1,000-square-foot Accessory Dwelling Unit (ADU). The estimated total cost for this development, which includes construction, permits, and professional fees (excluding land costs), is $2,162,721. In Lancaster, the anticipated market value of the completed property is around $3,260,000. This results in a return on investment (ROI) calculated as [($3,260,000 - $2,162,721)/$2,162,721]*100 = 51%

Scenario 2

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

In this second scenario, we plan to subdivide a lot and construct two new 4,000-square-foot, three-story duplexes. The total estimated investment for this project is $3,466,474, not including land acquisition costs.

In Lancaster, the estimated market value for these duplexes is $5,216,000, leading to an ROI of 50%.

Conclusion:

SB-9 developments in Lancaster provide solid returns on investment, making the area a promising option for real estate ventures, whether through lot splitting or new constructions.

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Resources

Lancaster Municipal Code