City of Lawndale
All You Need to Know About Building on Properties in Lawndale Under SB-9
In Lawndale City, using SB-9 for real estate projects is a great way for homeowners to get money to pay off a significant portion of their loans. If you have extra funds, you can add more units to earn rental income or make room for family members while still living in your main home. To ensure an SB-9 project succeeds, start by checking if your property qualifies, understanding how the rules apply, and choosing the SB-9 option that is the most financially beneficial for your property.
What is SB-9 and how does it apply to the properties in Lawndale City?
What is SB-9?
SB-9, or Senate Bill 9, streamlines the process for approving select housing projects in California by mandating that local governments expedite approvals. This eliminates the need for in-depth environmental assessments (CEQA), conditional use permits, or other reviews typically handled by bodies such as the Planning or Historic Preservation Commissions. Although opting into the process is voluntary, projects must meet certain criteria to be eligible.
How does SB-9 apply to properties in Lawndale?
SB-9 affects properties in Lakewood by allowing homeowners to divide their single-family lots to create more housing options 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 Lawndale's specific zoning rules and other requirements when considering projects under SB-9.
What can homeowners build under SB-9 or Lawndale’s HOME Act?
Urban Lot Split under SB-9
An urban lot split refers to dividing 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?
Urban Dwelling Unit under SB-9
An urban dwelling unit is the second unit allowed under SB-9.
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, the maximum size of a dwelling unit is limited to 800 square feet, and units should be at least 500 square feet in size. However, there is no specific maximum size limit set for the unit under California’s SB-9 rules.
No lot can have more than two units in total, which includes existing and proposed primary dwellings, ADUs, and JADUs.
What are the setbacks?
For new buildings or additions, a minimum setback of 4 feet is required from the side and rear property lines. However, no setbacks are needed for existing structures built in the same location and with the same dimensions.
What is the parking requirement under SB-9?
Under SB-9, a parking space within a garage is required for all new dwellings created under the urban lot split provision.
What are the lot constraints under SB-9?
New lots should be at least 1,200 square feet. When a lot is subdivided, there should be at least two, and one of the new lots should include at least 40% of the original size. Also, the property is ineligible for future urban lot splits.
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, specifically zoned R-1.
Is it allowed to demolish an affordable unit?
No. SB-9 prevents demolishing or altering affordable units, including housing that has restrictions on rent levels for moderate, low, or very low-income households.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes, the homeowner is required to live on-site and agree to an unannounced inspection each year for the first 3 years to verify residency.
What are the rental regulations?
Under Lawndale's SB-9, short-term rentals are not allowed and should be rented for over 30 days.
Are existing tenants’ rights protected?
Yes. SB-9 development cannot involve demolishing or altering housing that is subject to rent or price control or has been occupied by a tenant within the past 3 years.
What is the difference between SB-9 and SB-684?
SB-684, a more recent law than SB-9, promotes the development of up to 10 units on urban parcels under 5 acres, applying to both multi-family zones and empty lots in single-family areas. On the other hand, SB-9 focuses on single-family properties and includes post-development ownership restrictions, which SB-684 does not.
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 qualify for ministerial approval, a streamlined process that follows specific guidelines to expedite permitting. This bypasses the time-consuming environmental impact reviews and public meetings typically required for development projects. While ministerial approval can significantly speed up the process, obtaining approval for a lot split can still take up to 1.5 years.
What are objective standards?
"Objective zoning standards," "objective subdivision standards," and "objective design review standards" are clear, predefined rules that leave no room for subjective judgments by officials. These standards provide developers and homeowners with consistent guidelines, making the evaluation process more predictable.
What types of objective standards qualify for a waiver under SB-9?
SB-9 allows waivers for certain regulations that hinder development. This includes rules that prevent the construction of two units, each with a minimum size of 500 square feet. It also covers setback restrictions on existing structures that obstruct the building of two units. Additionally, setback requirements exceeding 4 feet from side and rear property lines can be waived if they limit the ability to construct two units.
What are the steps to get the permits?
Steps to Get Permits for SB-9 Development
1. Review Requirements: Understand the guidelines in Government Code Section 66411.7 and Lawndale Municipal Code, including rules for urban lot splits and specific objective standards.
2. Prepare Documentation: Collect all needed paperwork like plans and surveys.
3. Submit Application: Fill out and submit the application to the right department handling urban lot split permits.
4. Compliance Check: Ensure your project aligns with the objective standards and zoning rules.
5. Application Review: The department will review your application. They might ask for more info or suggest changes.
6. Permit Issuance: If everything checks out, permits will be granted.
7. Post-Approval Requirements: Follow any additional steps after approval, such as recording covenants or making disclosures.
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 recommend 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 estimated total cost for this project, including construction, permits, and professional fees (excluding land costs), is $2,203,881. The anticipated market value of the finished property in Lawndale 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
In this scenario, we propose 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 $3,497,665. The projected market value for these duplexes in Lawndale is $4,400,000, yielding an ROI of 26%.
Conclusion:
SB-9 projects in the City of Lawndale carry the risk of a return on investment (ROI) below 50%. To reduce this risk, it is advisable to implement additional financial strategies or secure the land at a significantly lower price.
See how much it will cost you to improve your property per SB-9
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