City of Lomita
All You Need to Know About Building on Properties in Lomita Under SB-9
Applying SB-9 for real estate development in Lomita City offers homeowners a valuable opportunity to significantly reduce their mortgage debt. With additional capital, you could construct additional 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, check your property’s eligibility, familiarize yourself with the applicable regulations, and select the SB-9 strategy that delivers the highest financial return for your property.
What is SB-9 and how does it apply to the properties in Lomita City?
What is SB-9?
SB-9, or Senate Bill 9, was created to simplify housing project approvals in California. It pushes local authorities to fast-track approval processes without requiring lengthy environmental reviews (CEQA), Conditional Use Authorization, or approvals from bodies like the Planning or Historic Preservation Commissions. This program is optional, but projects need to meet specific criteria.
How does SB-9 apply to properties in Lomita?
In Lomita, SB-9 offers more opportunities for housing development, especially in single-family residential zones. It allows property owners to split their lots into smaller parcels and build two-unit housing on each lot. Homeowners can take advantage of this flexibility to develop or expand, as long as they meet zoning rules, environmental guidelines, and objective standards.
What can homeowners build under SB-9 or Lomita’s HOME Act?
Urban Lot Split under SB-9
An urban lot split allows homeowners in single-family zones to divide their property 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?
Two-Unit Housing Development under SB-9
A two-unit housing development refers to building up to two residential units in a single-family zone.
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 Lomita, new primary dwellings under SB-9 are limited to a maximum of 800 square feet. The minimum size requirements for new units based on the number of bedrooms are as follows:
- Studio or one-bedroom: 500 square feet
- Units with more than one bedroom: 700 square feet
However, California’s SB-9 allows for units of any size.
Each lot is limited to having no more than two units overall, including existing or proposed primary homes, ADUs, and JADUs.
What are the setbacks?
Setbacks for new dwelling units are:
- Front: 20 feet from the property line
- Interior side: 4 feet
- Street side: 10 feet
- Rear: 4 feet
What is the parking requirement under SB-9?
Each new primary dwelling unit needs at least one off-street parking space. Exceptions apply if the lot is within a half-mile of a corridor with frequent bus service or a major transit stop, or if it’s within one block of a car-share vehicle location.
What are the lot constraints under SB-9?
For a lot split, the original lot has to be at least 2,400 square feet, and each new lot should be at least 1,200 square feet. The sizes of the new lots need to be between 40% and 60% of the original lot area.
Additionally, the lot that is divided cannot have been previously split and be next to any lot that was split by the current owner or anyone associated with them.
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 the A-1 or R-1 single-family residential zones.
Can you disregard the environmental restrictions on the lot?
No, environmental restrictions cannot be ignored. The lot needs to meet certain criteria, it cannot be on prime farmland, wetlands, a hazardous waste site, protected species habitat, or land with a conservation easement.
Can you bypass the Historical Preservation limitations?
No, you cannot bypass historical preservation limitations. The property needs to be free from historical classification and not near a historic district listed in the State Historic Resources Inventory. It also should not be next to any area recognized as a City or County landmark or labeled as a historic property or district by ordinance.
Is it allowed to demolish an affordable unit?
No, demolishing or altering any housing for moderate, low, or very low-income households is not allowed.
Is it allowed to build in High-Risk Areas?
Possibly. The lot cannot be in certain locations unless risk mitigation measures are in place. This includes:
- Very high fire hazard severity zones, unless it follows all fire-hazard mitigation measures in existing building standards.
- Delineated earthquake fault zones, unless all development meets applicable seismic protection building code standards.
- 100-year flood hazard areas, unless the site has a letter of map revision from FEMA or meets National Flood Insurance Program requirements.
- Regulatory floodways, unless all development has received a no-rise certification.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes, the homeowner needs to live on the property. The applicant for an urban lot split has to sign a statement saying they plan to occupy one of the new units as their primary residence for at least 3 years after the urban lot split is approved.
What are the rental regulations?
Rental regulations do not allow leasing any dwelling on a lot for less than 30 days.
Are existing tenants’ rights protected?
Yes, existing tenants' rights are protected. The project cannot involve the demolition or changes to housing in these categories:
- Housing that is controlled by any rent or price regulations from a public agency.
- Housing, or a lot that had housing was removed from rental under the Ellis Act within the last 15 years before submitting the urban lot split application.
- Housing occupied by a tenant within the last 3 years.
Can condominiums be proposed as part of my Urban Lot Split application?
No, you cannot propose condominium airspace divisions or common interest developments as part of the Urban Lot Split application.
What is the difference between SB-9 and SB-684?
SB-684, passed after SB-9, allows for the creation of up to 10 units on urban lots smaller than 5 acres, covering multi-family zones as well as vacant lots in single-family neighborhoods. In contrast, SB-9 is designed specifically for single-family properties and imposes ownership restrictions after development, unlike 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 are eligible for ministerial approval, which is a simplified process that adheres to set criteria to fast-track permits. This approach avoids the lengthy environmental assessments and public hearings usually necessary for development. Although this method accelerates the process, it can still take up to 1.5 years to get approval for a lot split.
What are objective standards?
“Objective zoning standards," “subdivision standards," and “design review standards” aim to eliminate personal judgments by public officials. These standards use clear, external criteria that developers and officials can access before submission. This ensures consistency and reliability in project evaluation, giving homeowners clear guidelines for assessing their proposals.
What types of objective standards qualify for a waiver under SB 9?
SB-9 allows developers to bypass rules that restrict development, such as minimum unit size requirements of 500 square feet. Setback regulations requiring more than 4 feet from side and rear property lines, if they prevent the construction of two units, can also be waived under certain conditions.
What are the steps to get the permits?
To obtain permits for urban lot splits or two-unit housing developments, property owners should:
Application:
- Individual property owners can apply, meaning they hold the title individually, jointly, or as trust beneficiaries.
- Apply to a two-unit project using the city’s approved form.
- Obtain and include a certificate of compliance with the Subdivision Map Act.
- Ensure the application is complete; the city will notify applicants of missing information within 30 days.
- Pay the required fee set by the city.
Approval:
- The community development director reviews approves or denies the application.
- Approval takes effect once all necessary documents are recorded.
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 scenario, we suggest building a three-story duplex with a total area of 4,000 square feet and a 1,000-square-foot Accessory Dwelling Unit (ADU). The total cost for this project, including construction, permits, and professional services (excluding land acquisition), is estimated at $2,159,580. The projected market value of the completed property in Lomita is around $3,000,000, resulting in a return on investment (ROI) of [($3,000,000 - $2,159,580)/$2,159,580]*100 = 39%
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
For this scenario, we recommend splitting the lot to construct two separate three-story duplexes, each with 4,000 square feet. The total estimated cost, excluding land, is $3,483,308. The expected market value for these duplexes in Lomita is $4,800,000, resulting in an ROI of 39%.
Conclusion:
Investing in SB-9 projects in Lomita may lead to an ROI of less than 50%. To minimize this risk, consider implementing additional financial protections or securing 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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