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All You Need to Know About Building on Properties in Lemon Grove Under SB-9
In Lemon Grove, SB-9 offers homeowners the opportunity to boost their property value and reduce mortgage payments. By adding extra units, they can earn rental income or create more space for family members, all while keeping their main home intact. To make the most of this, it's important to ensure the property meets SB-9 guidelines, be aware of any restrictions, and select the option that best fits financial goals.
What is SB-9 and how does it apply to the properties in Lemon Grove?
What is SB-9?
In California, SB-9 (Senate Bill) is a law designed to make it easier and faster for homeowners to add housing units or divide their property. It speeds up the approval process by allowing local governments to skip some environmental checks (such as CEQA) and avoid extra approvals from certain authorities, like the Planning Commission or Historic Preservation Commission.
How does SB-9 apply to properties in Lemon Grove?
In Lemon Grove, SB-9 gives homeowners the option to either expand their current home or split their property into two separate lots for new housing. As long as they follow the local guidelines, homeowners can add new units or create an additional lot.
What can homeowners build under SB-9 or Lemon Grove’s HOME Act?
Urban Lot Split under SB-9
An urban lot split allows a homeowner to divide a single-family lot into two, with the possibility of building new housing units on each.
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
SB-9 allows homeowners to build two separate homes or add extra units on a property that is zoned for single-family homes.
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 Lemon Grove, each new home should be at least 800 square feet, but there is no limit on how large it can be according to California law.
If the property is divided through an urban lot split, homeowners can build up to two main homes on each new lot, and they can also add smaller units such as ADUs, or JADUs.
What are the setbacks?
In Lemon Grove, there should be a minimum of 4 feet between the new unit and the side or back property lines. However, no setback is needed if the new unit is built in the same position and size as the original structure.
What is the parking requirement under SB-9?
Each new unit should have at least one off-street parking space unless the property is within half a mile of a major transit stop or near a car-sharing service.
What are the lot constraints under SB-9?
When splitting a lot, the smaller lot should be at least 40% of the original lot size, and both new lots should be at least 1,200 square feet. Properties that have already been divided under an urban lot split cannot be split again.
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 zoning districts.
Can you disregard the environmental restrictions on the lot?
No, environmental protections still apply under SB-9. Properties in sensitive areas such as wetlands, flood zones, conservation areas, hazardous waste sites, or habitats for endangered species cannot be developed under this law because these areas are protected for their environmental value.
Can you bypass the Historical Preservation limitations?
SB-9 projects should follow historical preservation rules unless the property is not in a historic district, not listed on the State Historic Resources Inventory, and not designated as a local historic landmark.
Is it allowed to demolish an affordable unit?
No, SB-9 prohibits demolishing or making changes to homes reserved for low- or moderate-income families that have legal protections.
Is it allowed to build on a property in Coastal Zones?
Yes, but SB-9 projects in Coastal Zones should comply with the California Coastal Act. This requires a coastal development permit and compliance with environmental rules.
Is it allowed to build in High-Risk Areas?
Possibly. Building in high-risk areas is generally discouraged, including:
(A) High fire risk zones
(B) Earthquake fault zones
(C) Flood-prone areas (like the 100-year floodplain), though there may be exceptions if the property meets FEMA or National Flood Insurance Program standards.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes, the homeowner should live on the property. When applying for a lot split, they should sign a statement confirming they will make one of the new units their primary residence for at least 3 years after the split.
What are the rental regulations?
Units built under SB-9 can only be rented for 30 days or longer.
Are existing tenants’ rights protected?
Yes, tenants’ rights are protected in certain cases to maintain affordable housing. These protections include:
1. Homes with rent control or occupied in the last 3 years cannot be demolished or changed.
2. Properties that have had evictions in the past 15 years are protected from certain changes.
3. New construction cannot remove more than 25% of the building's exterior walls.
What is the difference between SB-9 and SB-684?
SB-684 is a newer law that allows up to 10 homes to be built on smaller properties (less than 5 acres). While SB-9 mainly applies to single-family homes, SB-684 can also be used for multi-family properties and vacant lots in single-family neighborhoods. A big advantage of SB-684 is that there are no restrictions on who can own the property once the project is finished.
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 a faster approval process. This means the project can be approved based on clear, straightforward guidelines instead of individual decisions, helping avoid delays like lengthy environmental reviews or public hearings. However, completing a lot split could still take up to 18 months.
What are objective standards?
"Objective zoning standards," "objective subdivision standards," and "objective design review standards" are clear and specific rules that guide property development. They outline exact requirements so that both builders and city officials know what is expected, ensuring decisions are fair and consistent. This also helps homeowners know exactly what to expect for their projects.
What types of objective standards qualify for a waiver under SB-9?
Under SB-9, certain rules can be waived, such as:
(1) Setback requirements for existing structures that make building two units difficult.
(2) Side and rear setback rules of more than 4 feet if they would block the addition of a second unit.
What are the steps to get the permits?
To get permits for an SB-9 project in Lemon Grove, follow these steps:
1. Understand Local Rules
Learn about the city's zoning laws and any special rules for adding units or starting a housing project.
2. Make Sure Your Project Follows the Guidelines
Check that your project follows all the rules, such as zoning laws, limits on demolitions, and any requirements related to historic buildings.
3. Gather the Required Documents
Prepare all the paperwork needed for your application, whether it's for splitting your lot or building new housing.
4. Submit Your Application
Submit your complete application to the local authorities for review and approval.
5. Request for an extension (if needed)
If your application deadline is approaching, request an extension from the relevant agency.
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: 9 to 15 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 breakdown looks at two possible scenarios to help understand costs, property values, and potential profits for real estate projects.
Scenario 1
New 4,000 sq. ft 3-Story Duplex + 1,000 sq. ft ADU
In this scenario, the plan is to build a three-story duplex that totals 4,000 square feet, plus a 1,000-square-foot Accessory Dwelling Unit (ADU). The total cost for construction, permits, and professional services (excluding the cost of the land) is estimated to be $1,837,980. After the property is completed in Lemon Grove, it is expected to be worth around $2,950,000, resulting in an ROI of [($2,950,000 - $1,837,980)/$1,837,980]*100 = 61%
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
In the second scenario, the lot would be divided, and two separate three-story duplexes (each 4,000 sq. ft.) would be built. The total estimated cost for this project, excluding land costs, is $2,958,472. The expected market value for both duplexes in Lemon Grove combined is $4,720,000, providing an ROI of 60%.
Conclusion:
SB-9 projects in Lemon Grove provide good potential for profits, making it an attractive option for real estate investments, whether you consider a lot split or building new properties.
See how much it will cost you to improve your property per SB-9
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