City of Maywood
All You Need to Know About Building on Properties in Maywood Under SB-9
In Maywood, SB-9 can help increase a homeowner's property value and reduce the mortgage. Adding extra units can generate rental income or provide housing for family members while maintaining the main home. To successfully move forward with an SB-9 project, it’s important to first check if the property is eligible, understand any restrictions, and choose the most financially suitable option based on individual needs.
What is SB-9 and how does it apply to the properties in Maywood?
What is SB-9?
In California, SB-9, also known as Senate Bill 9, is a law created to simplify and speed up the approval process for certain housing projects. It allows local governments to bypass some environmental reviews, like CEQA, and approvals from agencies such as the Planning Commission or Historic Preservation Commission.
How does SB-9 apply to properties in Maywood?
In Maywood, SB-9 allows homeowners to either expand their homes or divide their property to create more housing. Homeowners can build additional units or split their lots, as long as they follow the local rules and meet specific requirements.
What can homeowners build under SB-9 or Maywood’s HOME Act?
Urban Lot Split under SB-9
An urban lot split allows homeowners to divide a single-family lot into two to build additional housing units on each of the new 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 Development under SB-9
A Two-Unit Development under SB-9 allows homeowners to build two separate housing units or add an extra unit to an existing home, within 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 Maywood, each new housing unit should be at least 800 square feet, and according to California state law, there's no limit on how large it can be.
With an urban lot split, you can build up to two housing units on a property, which could also include accessory dwelling units (ADUs) or junior accessory dwelling units (JADUs).
What are the setbacks?
Maywood requires at least 4 feet of setback from the side and rear property lines. However, no setbacks are needed if the new building is placed and sized like an existing one.
What is the parking requirement under SB-9?
Parking is required for each unit, with one off-street parking space. But no parking is needed if the property is within half a mile of a major transit area or station, or if there's a car-share vehicle within one block.
What are the lot constraints under SB-9?
When dividing a lot under SB-9, it can be split into two roughly equal parts, with the smaller lot being at least 40% of the original lot size. Both lots should be at least 1,200 square feet and should not have already been split under 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?
Properties eligible for SB-9 are located in single-family zoning districts.
Can you disregard the environmental restrictions on the lot?
Environmental restrictions cannot be disregarded under SB-9. It doesn't allow construction in environmentally sensitive areas, such as wetlands, hazardous waste sites, flood zones, conservation areas, or habitats for endangered species. These areas are protected to preserve their natural importance.
Can you bypass the Historical Preservation limitations?
SB-9 projects should follow historical preservation rules unless the property is outside of historical districts, not listed on the State Historic Resources Inventory, and not designated as a local historic landmark.
Is it allowed to demolish an affordable unit?
SB-9 prohibits demolishing or altering homes that are legally protected for low-, moderate, or very low-income families.
Is it allowed to build on a property in Coastal Zones?
Yes. Building in Coastal Zones is allowed under SB-9, but it should comply with the California Coastal Act of 1976, which often requires a coastal development permit and adherence to rules that protect the coastal environment.
Is it allowed to build in High-Risk Areas?
Maybe. Building in high-risk areas is generally discouraged, including in:
- High fire hazard zones
- Earthquake fault zones
- There may be exceptions for properties in flood-prone areas (such as the 100-year flood zone) if they have special FEMA designations or meet the criteria set by the National Flood Insurance Program.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes, the homeowner should live on the property. When starting an urban lot split, they need to sign an affidavit confirming they will live in one of the new units as their main home for at least 3 years after the split is approved.
What are the rental regulations?
Units built under SB-9 can only be rented out for a minimum of 30 days.
Are existing tenants’ rights protected?
Yes, tenant rights are protected in certain situations to ensure affordable housing is maintained. These protections include:
- Homes with rent control or homes that have had tenants in the last 3 years cannot be demolished or changed.
- Properties with evictions in the last 15 years are protected.
- New construction cannot remove more than 25% of the building's exterior walls.
What is the difference between SB-9 and SB-684?
SB-684 is a more recent law that allows up to 10 housing units to be built on smaller urban properties (less than 5 acres). Unlike SB-9, which mostly focuses on single-family homes, SB-684 also applies to multi-family homes and empty lots in single-family areas. One advantage of SB-684 is that there are no restrictions on who can own the property after the development is finished.
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 benefit from a faster approval process. This process simplifies the approval by following clear, set rules rather than relying on personal judgment. It avoids delays like long environmental checks and public hearings, speeding up the process. However, it can still take up to 18 months to complete a lot split.
What are objective standards?
"Objective zoning standards," "objective subdivision standards," and "objective design review standards" are measurable rules that help guide development decisions. These rules are based on specific criteria, making it easier for both developers and officials to understand what is required. They help ensure that decisions are made fairly and consistently, so homeowners know exactly what to expect for their projects.
What types of objective standards qualify for a waiver under SB-9?
SB-9 allows certain rules to be waived if they make it difficult to build two units. For instance, setback rules that require buildings to be placed more than 4 feet from property lines can be adjusted if they prevent the construction of two units. These rules can be modified to allow both units to be built.
What are the steps to get the permits?
To get permits for an SB-9 project in Maywood, follow these steps:
1. Familiarize Yourself with Local Regulations
Understand the city's zoning rules and any specific requirements for adding new units or starting housing projects.
2. Ensure Compliance with Requirements
Verify that your project meets all necessary criteria, such as rent control, limits on demolition, zoning restrictions, and historic preservation rules.
3. Prepare Necessary Documentation
Collect all required documents for your lot split or housing development application.
4. Submit the Application
Submit your completed application to the local agency for review and approval.
5. Request an Extension (if applicable)
If your application is close to expiring, request 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 $2,185,813. After the property is completed in Maywood, it is expected to be worth around $3,000,000, resulting in an ROI of [($3,000,000 - $2,185,813)/$2,185,813]*100 = 37%
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 $3,486,057. The expected market value for both duplexes in Maywood combined is $4,800,000, providing an ROI of 38%.
Conclusion:
In Maywood, real estate projects under SB-9 may result in a return on investment (ROI) of less than 50%. To reduce this risk, it's a good idea to explore other financial strategies or purchase land at a significantly lower price.
See how much it will cost you to improve your property per SB-9
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