City of Manhattan Beach
All You Need to Know About Building on Properties in Manhattan Beach Under SB-9
In Manhattan Beach City, SB-9 for property developments can be an effective strategy for homeowners looking to pay off a large part of their loan. With additional capital, you can construct extra units to generate rental income or create living space for family members while remaining in your primary residence. To ensure a successful SB-9 project, begin by verifying your property's eligibility, comprehending the applicable regulations, and selecting the SB-9 approach that offers the most financial benefit for your property in Manhattan Beach City.
What is SB-9 and how does it apply to the properties in Manhattan Beach City?
What is SB-9?
SB-9, also known as Senate Bill 9, is designed to make it easier for homeowners to develop additional housing in California. It speeds up approvals for specific housing projects, cutting out lengthy environmental reviews (CEQA) and other approvals like Conditional Use Authorizations from planning bodies. Homeowners can take advantage of this by meeting certain criteria for their property.
How does SB-9 apply to properties in Manhattan Beach?
In Manhattan Beach, SB-9 allows homeowners to build up to two residential units on a single lot in areas zoned for single-family homes. The city can also adopt its own local rules with clear development guidelines for SB-9 projects.
What can homeowners build under SB-9 or Manhattan Beach’s HOME Act?
Urban Lot Split under SB-9
Urban Lot Split allows homeowners to divide their single-family lots 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?
Non-Lot Split Dwelling Units under SB-9
This option allows building up to 4 homes on a single-family zoned property without splitting the lot.
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?
For new developments, each of the two primary housing units can be up to 800 square feet. However, California SB-9 allows flexibility in unit sizes, without strict limits.
Each lot created can have up to two units, which may include ADUs and JADUs.
What are the setbacks?
New units, including attached garages, need to have a setback at least 4 feet from side and rear property lines, while front setbacks follow the zoning rules. Flag lots measure front setbacks from where the "flag pole" meets the main lot. Detached primary homes should have at least 10 feet of space between them. No setbacks are required for existing structures or those built in the same spot and size.
What is the parking requirement under SB-9?
SB-9 parking rules require one enclosed or semi-enclosed parking spot per new unit, with alley access if applicable. If the lot is near a car-share vehicle or within walking distance of a high-quality transit corridor or major transit stop, this parking requirement does not apply.
What are the lot constraints under SB-9?
Lot splits cannot be smaller than 40% of the original lot and should be at least 1,200 square feet.
Additionally, lot splits should be at least 20 feet wide, and no flag lots are allowed if the property is next to an alley, on a corner, or considered a through lot.
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 within the RS Single-Family Residential Zoning District.
Is it allowed to demolish an affordable unit?
SB-9 does not allow demolishing or altering housing that is protected by agreements or rules keeping rents affordable for moderate, low, or very low-income families.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes. Except for community land trusts and certain non-profits. The property owner doing an urban lot split has to sign a statement agreeing to live in one of the units as their main residence for at least 3 years after the split is approved.
What are the rental regulations?
Short-term rentals, which are any rentals for less than 30 days, are not allowed for any unit on the property.
Are existing tenants’ rights protected?
Yes, tenants' rights are protected under SB-9. The development cannot involve demolishing or changing housing that has been rented out in the last 3 years. Also, no more than 25% of the existing exterior walls can be demolished unless the unit has not been rented in the past 3 years.
What is the difference between SB-9 and SB-684?
SB-684, a more recent law than SB-9, simplifies the development process for up to 10 units on urban lots smaller than 5 acres. In contrast to SB-9, which is targeted at single-family properties, SB-684 applies to lots in multi-family zoning as well as vacant lots in single-family areas. One significant benefit of SB-684 is that it does not impose ownership restrictions after development, unlike SB-9.
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. This process simplifies housing development by providing clear and consistent standards. Unlike subjective approaches, ministerial approval follows set criteria, which reduces delays in the approval process. As a result, projects can obtain permits without extensive CEQA reviews or public hearings. However, even with this expedited process, securing approval for a lot split can still take up to 1.5 years.
What are objective standards?
"Objective zoning standards," "objective subdivision standards," and "objective design review standards" are clear guidelines used to eliminate personal assessments by public officials and rely on external, standardized measures that developers and officials can access before submitting proposals. This ensures consistency and reliability in evaluating projects, giving homeowners clear expectations for their proposals.
What types of objective standards qualify for a waiver under SB 9?
1. Setback restrictions on existing structures: SB-9 allows for waivers of setback requirements that hinder the construction of two units when existing structures interfere.
2. Setback requirements greater than 4 feet: SB-9 allows waivers of setback requirements that are greater than 4 feet from side and rear property lines, which may restrict the development of two units.
What are the steps to get the permits?
To get permits for SB-9 projects in Manhattan Beach follow these steps:
1. Review Local Ordinances: Look into the local Planning and Zoning Law, as well as any regulations regarding accessory dwelling units and housing projects.
2. Ensure Compliance: Confirm that your proposed development complies with all guidelines, including those related to rent levels, demolition restrictions, site considerations, and rules for historic districts.
3. Prepare Application: Collect all necessary documents for your housing development or urban lot split application.
4. Submit Application: Forward your application to the appropriate local agency for ministerial approval.
5. Extension of Tentative Map: If necessary, ask for an extension on the expiration date of the tentative map from the relevant legislative body or advisory 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: 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 propose the development of a three-story duplex with a combined footprint of 4,000 square feet, along with a 1,000-square-foot Accessory Dwelling Unit (ADU). The total projected cost for this project, covering construction, permits, and professional services (excluding the land), is $2,181,106. The estimated market value for this finished property in Manhattan Beach is approximately $6,000,000, resulting in an ROI of [($6,000,000 - $2,181,106)/$2,181,106]*100 = 175%
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
For this option, we suggest splitting a lot and constructing two independent three-story duplexes, each with a 4,000-square-foot area. The total estimated expenditure for this development, not including land costs, is $3,481,288. The anticipated market value of these duplexes in Manhattan Beach is $9,600,000, leading to an ROI of 178%.
Conclusion:
Pursuing SB-9 projects in Manhattan Beach can generate significant financial gains, making the area an excellent and promising choice for real estate development.