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

What is SB-9?

SB-9, also known as Senate Bill 9, aims to streamline the approval procedure for certain housing developments in California. It encourages local officials to speed up the approval of these projects through a special route that omits extensive environmental reviews (CEQA), Conditional Use Permits, or similar approvals from agencies like the Planning Commission or Historic Preservation Commission. Participation in this program is optional and depends on meeting specific criteria.

How does SB-9 apply to properties in Monrovia?

SB-9 applies to properties in Monrovia by streamlining the approval process in single-family zones. This law introduces two development options that can enhance the availability of housing units. As a result, homeowners have greater flexibility in using their land, which can lead to increased property values and help address housing shortages in the area.

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

Urban Lot Split under SB-9

An Urban Lot Split involves dividing an existing lot into two separate lots, where each can have a Primary Dwelling Unit (PDU) and a Secondary Dwelling Unit (SDU).

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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Non-Lot Split Development under SB-9

Non-lot split development under SB-9 allows for the construction of up to 4 units on an existing lot. These units can be a Primary Dwelling Unit (PDU), a Secondary Dwelling Unit (SDU), an Accessory Dwelling Unit (ADU), and a Junior Accessory Dwelling Unit (JADU).

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 Monrovia, new units are limited to a maximum of 800 square feet, while California's SB-9 allows units of any size without any limitations.

Secondary Dwelling Units (SDUs) should be between 220 and 1,000 square feet.

What are the setbacks?

For Primary Dwelling Units (PDUs), the setbacks are:

• Side yard: At least 4 feet for interior property lines and 10 feet for lots facing a public street (corner lots).
• Rear yard: At least 4 feet.

For Secondary Dwelling Units (SDUs), the setbacks are:

• Side yard: At least 4 feet for interior lot lines.
• Rear yard: At least 4 feet.
• Secondary front lot line setback (for corner lots): At least 10 feet.

What is the parking requirement under SB-9?

Under SB-9, each Primary Dwelling Unit (PDU) and Secondary Dwelling Unit (SDU) should provide one off-street parking space. This space should be at least 9 feet by 20 feet, outside of required setbacks, and accessible from a dedicated right of way. Parking can be waived if the lot is within half a mile of a major transit stop or if a car-share vehicle is within one block.

What are the lot constraints under SB-9?

Under SB-9, eligible residential lots can be divided into a maximum of two parcels, with each being at least 1,200 square feet and no smaller than 40% of the original lot size. Further subdivision of lots created through urban lot splits under SB-9 is prohibited. Additionally, neither the current owner nor anyone associated with them can have previously subdivided adjacent parcels under this law.

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?

SB-9 applies to a few zoning districts, including RF (Residential Foothill), RE (Residential Estate), RL (Residential Low Density), and any Planned Development (PD) Zone that allows only single-family homes.

Can you disregard the environmental restrictions on the lot?

No. Any new unit under SB-9 cannot involve the demolition or alteration of housing that provides habitat for species recognized as protected, candidate, sensitive, or special status by state or federal agencies.

Can you bypass the Historical Preservation limitations?

No. SB-9 regulations do not apply to properties that are local historic landmarks, listed on the California Historic Register or the National Register of Historic Places, or located within a City-designated historic district.

Is it allowed to demolish an affordable unit?

No, the proposed development or lot split cannot involve demolishing or altering housing units that have affordability restrictions, whether from a covenant, ordinance, conditions of approval, entitlement, or other legal requirements.

Is it allowed to build in High-Risk Areas?

Possibly. Monrovia’s SB-9 does not apply to properties in designated very high fire hazard severity zones or earthquake fault zones unless the proposed development includes fire hazard mitigation measures that follow existing building standards or meet the relevant seismic protection building code standards.

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

Does the homeowner need to reside on the property?

Yes. The applicant for an urban lot split needs to sign an affidavit stating their intention to occupy one of the housing units as their main home for at least 3 years after the urban lot split approval.

What are the rental regulations?

Under SB-9, any unit on a lot with an SB-9 application cannot be rented for less than 30 days, which effectively bans short-term rentals.

Are existing tenants’ rights protected?

Yes. The proposed development or lot split cannot involve the demolition or alteration of housing that has rent or price controls, nor housing that has had a tenant living in it within the last 3 years. If a unit has been occupied by a tenant at any point in the past 3 years, no more than 25% of its exterior wall area can be demolished.

Can condominiums be proposed as part of my Urban Lot Split application?

No, condominiums cannot be proposed as part of an Urban Lot Split application under SB-9. This law allows homeowners to split a single-family lot into two and build up to two units on each lot, totaling four units.

Condominiums involve a different ownership structure that requires standard procedures like filing fees, environmental assessments, public hearings, and appeal periods, which differ from the streamlined process for SB-9 Urban Lot Splits.

What is the difference between SB-9 and SB-684?

SB-684 is a newer law that streamlines the development process for up to 10 units on urban lots under 5 acres. Unlike SB-9, which focuses on single-family properties, SB-684 applies to both multi-family zones and vacant single-family lots. A key advantage of SB-684 is the absence of ownership restrictions after development, which SB-9 imposes.

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 are eligible for ministerial approval. This approach streamlines the housing development process by establishing clear and uniform standards. In contrast to more subjective methods, ministerial approval adheres to defined criteria, minimizing approval delays. Consequently, projects can receive permits without the need for comprehensive CEQA evaluations or public hearings. Nevertheless, despite this accelerated process, it can still take as long as 1.5 years to finalize approval for a lot split.

What are objective standards?

"Objective zoning standards," "objective subdivision standards," and "objective design review standards" are set criteria used to eliminate personal judgments by officials. These standards are based on external, measurable metrics that developers and officials can access before submission. This ensures consistency and reliability in project evaluations, giving homeowners clear and predictable guidelines for their proposals.

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

1. Waivers for existing structure setbacks: SB-9 allows exemptions from setback regulations that obstruct the construction of two units due to interference from current structures.

2. Waivers for setbacks greater than 4 feet: SB-9 also allows waivers for setback rules that require a distance greater than 4 feet from the side and rear property lines, which could limit the ability to build two units.

What are the steps to get the permits?

To obtain permits for SB-9 projects in Monrovia, follow these steps:

1. Check Local Regulations: Investigate the local Planning and Zoning Law, along with any rules regarding accessory dwelling units and housing developments.

2. Confirm Compliance: Make sure your proposed project aligns with all guidelines, including those concerning rent levels, demolition limits, site considerations, and regulations for historic districts.

3. Gather Application Materials: Assemble all required documents for your housing development or urban lot split application.

4. Submit the Application: Send your application to the relevant local agency for ministerial approval.

5. Request Tentative Map Extension: If needed, request an extension for the tentative map's expiration date from the appropriate 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 the first scenario, we recommend building a three-story duplex with a total area of 4,000 square feet, along with a 1,000-square-foot Accessory Dwelling Unit (ADU). The total projected cost, including construction, permits, and professional fees (excluding land costs), is $2,178,031. The estimated market value of the completed property in Monrovia is approximately $3,500,000, yielding an ROI of [($3,500,000 - $2,178,031)/$2,178,031]*100 = 60%

Scenario 2

Lot Split with 2 new 4,000 sq. ft 3-story Duplexes

In the second scenario, we propose subdividing a lot and constructing two separate duplexes, each with three stories and 4,000 square feet. The total projected cost for this project, excluding land acquisition, is $3,474,978. The estimated market value for these duplexes in Monrovia is $5,600,000, resulting in an ROI of 61%.

Conclusion:

SB-9 projects in Monrovia offer substantial returns on investment, making the city a highly attractive and promising location for real estate development projects.

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

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