City of Long Beach
All You Need to Know About Building on Properties in Long Beach Under SB-9
Using SB-9 for property projects in Long Beach gives homeowners a valuable opportunity to reduce a significant portion of their mortgage. If you can add extra units, you can generate rental income or offer housing for family members while still living in the main residence. To make an SB-9 project successful, it is important to know the eligibility requirements, understand how the regulations affect your property, and decide which SB-9 option brings the most financial benefit.
What is SB-9 and how does it apply to the properties in Long Beach City?
What is SB-9?
SB-9 (Senate Bill 9) was introduced to streamline the approval process for housing projects in California. It requires local governments to accelerate approvals by eliminating the need for extensive environmental assessments (CEQA), conditional use permits, and reviews from bodies such as the Planning or Historic Preservation Commissions. Although participation is voluntary, certain conditions must be fulfilled for projects to qualify.
How does SB-9 apply to properties in Long Beach?
SB-9 affects properties in Long Beach by allowing up to 4 units on a single-family lot. This can be done in two ways: by building a second primary unit along with one ADU and one JADU, or by splitting the lot into two separate lots under SB-9's urban lot split rule, with each lot allowed to hold up to two units.
What can homeowners build under SB-9 or Long Beach’s HOME Act?
Urban Lot Split under SB-9
SB-9 allows for an Urban Lot Split, where an existing lot can be divided into two lots, usually with a 60/40 size split.
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
Two-unit development allows building up to two primary residential units on a single lot or adding a second home to a lot that already has a primary residence.
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 Long Beach's SB-9, new units need to be at least 800 square feet. However, California's SB-9 does not set a maximum size restriction.
A lot can contain no more than two units in total, which includes any existing or proposed primary residences, ADUs, and JADUs.
What are the setbacks?
Side and rear setbacks are set at 4 feet each.
What is the parking requirement under SB-9?
SB-9 requires one parking space per unit unless the property is within half a mile walking distance of a high-quality transit corridor or major transit stop, or if a car-share vehicle is available within one block.
What are the lot constraints under SB-9?
Any newly subdivided lot needs to be at least 1,200 square feet. If the lots are not equal in size, the smaller one should be at least 40% of the original lot's size before the split.
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, including R-1-S, R-1-M, R-1-T, R-1-N, and R-1-L. Properties in Planned Development (PD) or Specific Plan (SP) areas, if designated exclusively for single-family homes, can also qualify.
Can you disregard the environmental restrictions on the lot?
No, properties in environmentally sensitive areas, like wetlands, hazardous waste sites, floodways, conservation areas, or protected habitats, are not eligible for SB-9 development. These areas are excluded to prevent any harm from new construction.
Can you bypass the Historical Preservation limitations?
No, properties in City historic districts, designated Historic Landmarks, or listed on the State Historic Resources Inventory are subject to historical preservation limits and cannot use SB-9 for development.
Is it allowed to demolish an affordable unit?
No, you cannot demolish or alter housing that is rent-controlled or subject to laws keeping rents affordable for low-to-moderate-income families.
Is it allowed to build on a property in Coastal Zones?
Yes, but development in Coastal Zones requires separate Coastal approval. Any project in these areas should go through additional review to ensure it complies with coastal regulations and environmental protections.
Is it allowed to build in High-Risk Areas?
It depends. While building in high-risk areas is possible, it is discouraged due to safety risks. Certain conditions should be met:
- It cannot be in a delineated earthquake fault zone unless it follows seismic safety standards.
- The property cannot be in a 100-year flood zone unless it meets FEMA requirements or receives a map revision.
- It cannot be in a FEMA-regulated floodway unless a no-rise certification is obtained.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes, the homeowner has to sign an affidavit confirming they plan to live in one of the units as their main home for at least 3 years after the lot split approval.
What are the rental regulations?
Each unit built under SB-9 should be rented for periods longer than 30 days.
Are existing tenants’ rights protected?
Yes. The development cannot involve any changes that would displace existing tenants. If the property had rent-controlled units or tenants in the last 3 years, those rights are also protected. Additionally, the owner cannot have removed rent-controlled units from the market within the last 15 years.
Can condominiums be proposed as part of my Urban Lot Split application?
No, condominiums cannot be part of an SB-9 urban lot split. SB-9 allows homeowners to split a lot and build up to two units on each, allowing for up to 4 units. However, condominiums involve a separate ownership process with fees, environmental reviews, and public hearings, which does not align with SB-9’s simpler approach.
What is the difference between SB-9 and SB-684?
SB-684, a more recent law, allows the development of up to 10 housing units on urban lots smaller than 5 acres, containing multi-family zones and vacant lots for single-family residents. Unlike SB-9, which is specifically applied for single-family properties, SB-684 does not impose ownership restrictions after development, offering greater flexibility for developers.
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 under SB-9 can receive ministerial approval, a streamlined method that follows specific guidelines to expedite the permitting process. This bypasses the extensive environmental reviews and public meetings typically required for development. While this approach speeds things up, securing approval for a lot split may still take as long as 1.5 years.
What are objective standards?
“Objective zoning standards," “objective subdivision standards," and “objective design review standards” are fixed criteria that do not rely on individual judgment. These standards are based on clear, measurable rules that are available to both the property owner and officials before any application is submitted. This ensures that decisions are consistent, giving homeowners a straightforward understanding of what to expect.
What types of objective standards qualify for a waiver under SB-9?
SB-9 allows developers to avoid certain restrictions that hinder development, such as the requirement for units to be at least 800 square feet. Additionally, setback rules that require a distance greater than 4 feet from side and rear property lines can be waived if they obstruct the ability to build two units under specific conditions.
What are the steps to get the permits?
1. Prepare Documents: Gather all necessary documents, including plans and application forms, making sure everything is accurate and complete.
2. Schedule Plan Review: Contact the city to arrange a plan review with planning and building staff to confirm your project complies with local regulations.
3. Pay Fees: Pay the required fees, including the permit and any relevant agency fees.
4. Compliance Check: Ensure your project follows zoning rules and environmental guidelines, confirming it is in an eligible zone and does not involve demolishing protected housing.
5. Obtain Permits: Once your plans are approved, fees are paid, and compliance is verified, you can get the necessary permits to start your project, ensuring it meets all standards like setbacks, parking, and rental terms.
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're planning to develop a three-story duplex of 4,000 square feet, along with a 1,000-square-foot Accessory Dwelling Unit (ADU). The total estimated cost for this project, covering construction, permits, and professional fees (excluding land acquisition), is $2,155,667. If this development is located in the highly sought-after Los Cerritos neighborhood of Long Beach, the projected market value would be around $4,750,000. This results in a calculated Return on Investment (ROI) of [($4,750,000 - $2,155,667)/$2,155,667]*100 = 120%
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
In this scenario, we plan to divide a lot and build two new three-story duplexes, each 4,000 square feet. The projected total investment for this project is $3,478,000, not including land acquisition costs if the land is not already owned.
In the Los Cerritos area, the estimated market value for these duplexes is approximately $7,600,000, resulting in an ROI of 118%. Conversely, if the project were in another Long Beach neighborhood, such as the more budget-friendly Carson Park area, the market value would be about $5,600,000, yielding a lower but still reasonable ROI.
Conclusion:
SB-9 projects in the Los Cerritos area offer impressive investment returns, setting it as a highly attractive location for real estate development. In contrast, while projects in the Carson Park neighborhood provide a lower but still respectable ROI, both areas present solid investment opportunities.
See how much it will cost you to improve your property per SB-9
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