City of Lynwood
All You Need to Know About Building on Properties in Lynwood Under SB-9
Applying SB 9 for real estate developments in Lynwood City can be an excellent strategy for homeowners to secure funds for reducing their mortgage balance, create additional rental units, or provide space for relatives while continuing to live in their primary residence. To maximize the benefits of SB9, homeowners should familiarize themselves with the eligibility criteria, property regulations, and select the SB9 option that offers the most favorable financial outcome for their property in Lynwood City.
What is SB-9 and how does it apply to the properties in Lynwood City?
What is SB-9?
SB-9 is a California law aimed at making it easier to navigate the approval process for certain housing projects. It directs local governments to speed up approvals through a streamlined process, avoiding lengthy environmental reviews or permits usually needed from agencies like the Planning Commission or Historic Preservation Commission. To use SB-9, projects need to meet specific requirements, but participation is optional.
How does SB-9 apply to properties in Lynwood?
SB-9 applies to properties in Lynwood by making it easier to add housing units on single-family lots. This streamlined process helps homeowners and developers create more units, potentially raising property values and opening up investment opportunities. By cutting down on lengthy approvals and bypassing certain reviews, projects can move forward faster.
What can homeowners build under SB-9 or Lynwood’s HOME Act?
Urban Lot Split under SB-9
An urban lot split is dividing a single property into two separate lots in an area zoned for single-family homes.
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
A two-unit development refers to building two homes on a single lot 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?
New units need to be at least 800 square feet. However, California State SB-9 allows for units of any size to be constructed.
A property is limited to having a maximum of two units, which includes both existing or proposed primary residences, ADUs, and JADUs.
What are the setbacks?
Lynwood may require setbacks of up to four feet from the side and rear lot lines. However, existing structures or those built in the same location as current ones do not require setbacks.
What is the parking requirement under SB-9?
Each unit requires one off-street parking space. Exceptions apply if the property is within half a mile of public transit or a car share is available within one block.
What are the lot constraints under SB-9?
SB-9 requires the creation of two new lots with similar sizes. One lot cannot be less than 40% of the original lot, and both lots should be at least 1,200 square feet. Additionally, the lot cannot have previously been an urban lot 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?
SB-9 applies to properties in R1 zoning districts, which are areas designated for single-family homes.
Can you bypass the Historical Preservation limitations?
No, properties cannot bypass Historical Preservation rules. The lot cannot be in a historic district, listed on the State Historic Resources Inventory, or designated as a landmark or historic property by the city or county.
Is it allowed to demolish an affordable unit?
No, demolishing an affordable unit is not allowed. SB 9 explicitly prohibits the demolition or alteration of housing that is subject to a recorded covenant, ordinance, or law restricting rents to affordable levels for moderate, low, or very low-income individuals and families.
Is it allowed to build on a property in Coastal Zones?
Yes, construction is allowed in Coastal Zones but should follow the rules of the California Coastal Act of 1976. This often means getting a coastal development permit, which involves meeting standards to protect coastal resources and reduce environmental impact.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes, if applying for an urban lot split, the homeowner has to sign a document stating they plan to live in one of the units as their main home for at least 3 years after the lot is split.
What are the rental regulations?
SB-9 requires any unit built to be rented for more than 30 days, ensuring these units are not used for short-term rentals.
Are existing tenants’ rights protected?
Yes, SB-9 protects tenants by preventing the demolition or major alteration of certain types of housing. This includes homes that are rent-controlled or have been occupied by tenants within the last 3 years. Also, the property cannot have had rent-controlled units removed in the past 15 years, and no more than 25% of the exterior walls of existing structures can be demolished.
What is the difference between SB-9 and SB-684?
SB-684, a newer law, allows the building of up to 10 housing units on urban parcels under 5 acres, including both multi-family areas and vacant land in single-family neighborhoods. In contrast, SB-9 is focused on single-family homes and includes post-development ownership restrictions, whereas SB-684 provides more flexibility by not enforcing such limits on ownership.
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, which is a faster approval process that adheres to predetermined criteria, allowing permits to be issued more quickly. This eliminates the need for lengthy environmental assessments and public hearings commonly associated with development projects. However, even with this streamlined process, it can still take up to 1.5 years to obtain approval for a lot split.
What are objective standards?
“Objective zoning standards”, “subdivision standards”, and “design review standards” are clear rules that do not rely on personal opinions. These standards are based on measurable criteria that both developers and officials know beforehand, ensuring consistency and predictability in how projects are evaluated.
What types of objective standards qualify for a waiver under SB-9?
Under SB-9, developers can bypass specific rules that limit construction, such as the requirement for units to be at least 800 square feet. Additionally, setback regulations requiring more than 4 feet from side and rear property lines can be waived if they prevent the development of two units in certain situations.
What are the steps to get the permits?
Here’s how to obtain permits in Lynwood under SB 9:
1. Understand Local Rules: Start by reviewing your city’s Planning and Zoning rules related to housing developments and lot splits. Knowing these will help you follow the right path.
2. Ensure Compliance: Make sure your project meets all local requirements, including rent restrictions, demolition limits, site rules, and guidelines for historical areas.
3. Prepare Documents: Gather everything needed for your application, like architectural plans, environmental assessments, and financial records.
4. Submit Application: Send your completed application to the local authority to kick off the approval process.
5. Request Map Extension (if needed): If a map extension is required, ask the relevant agency to keep your project on track with the timeline.
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 first scenario, we suggest building a three-story duplex with a total area of 4,000 square feet, in addition to a 1,000-square-foot Accessory Dwelling Unit (ADU). The estimated overall cost, covering construction, permits, and professional fees (excluding land), is $2,172,050. The projected market value of the finished property in Lynwood is around $2,910,000, resulting in a return on investment (ROI) of [($2,910,000 - $2,172,050) / $2,172,050] * 100 = 34%.
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
For this second scenario, we recommend splitting the lot to develop two separate three-story duplexes, each covering 4,000 square feet. The estimated total cost, excluding land acquisition, is $3,478,184. The expected market value for these duplexes in Lynwood is $4,656,000, resulting in an ROI of 34%.
Conclusion:
SB-9 projects in Lynwood carry a significant risk of achieving an ROI below 50%. To address this risk, you might need to adopt additional financial strategies or secure land at a substantially lower cost.
See how much it will cost you to improve your property per SB-9
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