What is SB-9 and how does it apply to the properties in Malibu?

What is SB-9?

SB-9, or Senate Bill 9, is a California law created to simplify and speed up the approval process for certain housing projects. This law allows local governments to skip some environmental reviews (like CEQA) and approvals from government authorities such as the Planning Commission or Historic Preservation Commission, making it easier for homeowners to add housing units.

How does SB-9 apply to properties in Malibu?

In Malibu, SB-9 provides homeowners with new options for expanding their living space or dividing their property to add more housing. Homeowners can build additional units or split their lots, provided they follow local rules and meet specific requirements.

What can homeowners build under SB-9 or Malibu’s HOME Act?

Urban Lot Split under SB-9

With an urban lot split, Malibu homeowners can divide their single-family property into two separate lots. This process offers more flexibility, as each lot can be developed independently, allowing for the addition of new homes.

Under this option, you could have the following unit configurations:

Not sure if your property is located in a Single-family zoned area?

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Two-Unit Development under SB-9

A Two-Unit Development allows for the construction of two individual housing units or adding an additional unit to an existing home, all within a single-family residential 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 Malibu, new residential units must be at least 800 square feet, with no maximum size limit under California law, so they can be made larger if preferred.

With an urban lot split, each property can have up to two housing units, which may also include options for ADUs or JADUs.

What are the setbacks?

Malibu requires a minimum setback of 4 feet from the side and rear property lines. If a new building has the same placement and size as an existing structure, setbacks are not required.

What is the parking requirement under SB-9?

Each unit generally needs one off-street parking space. However, parking is not necessary if:

• The property is within a half-mile of a high-quality transit corridor or major transit station.
• A car-share vehicle is located within a block.

What are the lot constraints under SB-9?

A lot may be divided into two sections of roughly equal size, with the smaller lot covering at least 40% of the original property area. Both new lots should be at least 1,200 square feet.

Development Analysis calculates the max size under SB-9 for the highest return.

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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, SB-9 does not allow building in environmentally sensitive places, such as wetlands, hazardous waste sites, flood-prone areas, conservation lands, or habitats for endangered species. These areas are protected to maintain their natural value.

Can you bypass the Historical Preservation limitations?

No, SB-9 projects have to follow historic preservation rules unless the property is confirmed to be outside historic districts, not on the State Historic Resources Inventory, and not recognized as a local historic landmark.

Is it allowed to demolish an affordable unit?

No, SB-9 does not allow the demolition or modification of housing that is legally protected for low, moderate, or very low-income families.

Is it allowed to build on a property in Coastal Zones?

Yes, construction is allowed in Coastal Zones, but it should meet the requirements of the California Coastal Act of 1976, usually requiring a coastal development permit and compliance with guidelines that protect the coastal environment.

Is it allowed to build in High-Risk Areas?

It depends. Building in high-risk areas is generally discouraged. This includes properties in:

• High fire hazard zones
• Earthquake fault zones
• For areas prone to flooding (like the 100-year flood zone) exceptions may apply if the property has special FEMA designations or meets National Flood Insurance Program criteria.

What are the limitations after completing a project using SB-9?

Does the homeowner need to reside on the property?

Homeowners should live on the property for an urban lot split, they should sign an agreement to make one of the newly created units their primary residence for at least 3 years after the split is finalized.

What are the rental regulations?

Units built under SB-9 can only be rented out for at least 30 days at a time.

Are existing tenants’ rights protected?

Yes, tenant rights are protected under certain conditions to maintain affordable housing. These protections include:

• Homes with rent control or that have had tenants in the last 3 years cannot be demolished or altered.
• Properties where tenants have been evicted in the past 15 years are protected.
• New construction cannot involve demolishing 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 housing units to be built on smaller urban properties (under 5 acres). Unlike SB-9, which is mainly for single-family homes, SB-684 also applies to multi-family homes and vacant lots in single-family neighborhoods. One benefit of SB-684 is that it doesn't limit who can own the property after the development is complete.

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 can go through a ministerial approval process. This means decisions are made based on clear, set rules, cutting down on delays caused by personal opinions. The process is quicker because it avoids long environmental reviews and public meetings, though it can still take up to 18 months to finalize a lot split.

What are objective standards?

"Objective zoning standards," "objective subdivision standards," and "objective design review standards" are clear, measurable rules for zoning, building, and design that developers and city officials use consistently. These rules help ensure that decisions are made fairly and transparently, without personal bias, and give homeowners clear expectations for their projects.

What types of objective standards qualify for a waiver under SB-9?

SB-9 allows the waiver of certain objective standards, including:

• Setback rules that prevent building two units.
• Setback rules require more than 4 feet from property lines, which may limit building two units.

What are the steps to get the permits?

To secure permits for an SB-9 project in Malibu, follow these steps:

1. Understand Local Rules
Get familiar with the city’s zoning laws and any specific rules about building accessory units or housing projects.

2. Check for Compliance
Make sure your project meets all the requirements, such as regulations on rent control, demolition limits, location, and rules for historic areas.

3. Prepare Your Documents
Gather all the required paperwork for your urban lot split or housing project application.

4. Submit Your Application
Turn in your completed application to the local agency for review and approval.

5. Request an Extension (if needed)
If your tentative map is about to expire, ask for an extension from the responsible authority.

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 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 $2,164,050. After the property is completed in Malibu, it is expected to be worth around $2,500,000, resulting in an ROI of [($2,500,000 - $2,164,050)/$2,164,050]*100 = 16%

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 $3,474,776. The expected market value for both duplexes in Malibu combined is $4,000,000, providing an ROI of 15%.

Conclusion:

SB-9 projects in Malibu may result in a return on investment (ROI) of less than 50%. To reduce this risk, it’s important to either secure the property at a good price or take extra financial measures.

See how much it will cost you to improve your property per SB-9

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Resources

Malibu Municipal Code