City of Montebello
All You Need to Know About Building on Properties in Montebello Under SB-9
SB-9 can help Montebello homeowners significantly reduce their mortgages, generate rental income, or accommodate family members. To succeed, verify eligibility, understand regulations, and select the best financial option. However, not all cities in Los Angeles County, including Montebello, have enforced this regulation since its enactment in 2021. On October 22, 2024, Grace Hayashi, the assistant planner for the city, replied to CityStructure's inquiry about SB-9 projects, stating, "We are currently not accepting any SB-9 applications as we are still working on implementing the process in the City." This delay may affect homeowners seeking to take advantage of the opportunities offered by SB-9 until the city finalizes its implementation strategy.
What is SB-9 and how does it apply to the properties in Montebello City?
What is SB-9?
Senate Bill 9 (SB-9) is intended to simplify the approval process for certain housing projects throughout California, helping local governments process these projects more efficiently. It establishes a streamlined method that avoids extensive environmental reviews (such as those required by CEQA) and removes the need for Conditional Use Permits or other discretionary approvals typically handled by Planning or Historic Preservation Commissions.
How does SB-9 apply to properties in Montebello?
In Montebello, SB-9 offers new options for expanding residential spaces and subdividing lots. Homeowners can divide their properties and construct additional housing units, provided they follow city regulations and standards.
What can homeowners build under SB-9 or Montebello City’s HOME Act?
Urban Lot Split under SB-9
This option allows a single-family property to be divided 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?
Two-Unit Development under SB-9
A Two-Unit Development can have up to two residential structures on a lot proposed for single-family housing. If there’s an existing primary unit, a second one can be added as an additional primary residence.
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 Montebello, each unit created under SB-9 should have a minimum size of 800 square feet. Statewide, however, SB-9 does not impose specific size limits on new units.
Two housing units are allowed per lot, and these may include ADUs and JADUs.
What are the setbacks?
A setback of at least 4 feet is required from the side and rear property lines. However, if a new structure is built in the same location and dimensions as an existing one, no setbacks are necessary.
What is the parking requirement under SB-9?
Each unit is required to have off-street parking, with a maximum of one space allotted per unit. However, the city cannot impose parking regulations under certain conditions:
(A) When the property is located within half a mile of a high-quality transit corridor or a significant transit stop.
(B) If a car-share vehicle is accessible within one block of the property.
What are the lot constraints under SB-9?
Under SB-9, a lot can be divided into two roughly equal parts. However, one of the resulting lots should not be less than 40% of the original size. Also, both new lots should have a minimum area of 1,200 square feet.
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?
No. SB-9 does not apply to properties in environmentally sensitive areas. This includes wetlands, hazardous waste sites, floodways, conservation areas, or habitats for protected species. These restrictions are in place to secure these areas from potential harm due to development.
Can you bypass the Historical Preservation limitations?
No, new projects are required to follow Historical Preservation rules unless it is confirmed that the project is not in a historic district or on the State Historic Resources Inventory. It also should not be on a site designated as a landmark or historic property by local regulations.
Is it allowed to demolish an affordable unit?
No, demolishing or altering housing that is protected by a recorded covenant or law that keeps rents affordable for moderate, low, or very low-income families isn’t allowed under SB-9.
Is it allowed to build on a property in Coastal Zones?
Yes, building in Coastal Zones is allowed but should follow the California Coastal Act of 1976. However, the exact rules and conditions depend on the act and local regulations.
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, and areas prone to flooding (the 100-year flood zone). However, there may be exceptions for flood zones if they have special designations from FEMA or meet specific criteria outlined 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 is required to live on the property. The person requesting an urban lot split should provide a signed affidavit stating their intention to make one of the housing units their primary residence for a minimum of 3 years following the approval of the urban lot split.
What are the rental regulations?
Units created through SB-9 should be rented for more than 30 days.
Are existing tenants’ rights protected?
Yes, the rights of existing tenants are protected. Regulations are set to prevent displacement by specifying that:
(1) Properties rented under specific rules cannot be demolished or modified.
(2) The property should not have had rental agreements terminated in the last 15 years.
(3) No more than 25% of the exterior walls can be removed.
What is the difference between SB-9 and SB-684?
SB-684 is a newer law than SB-9, permitting the construction of up to 10 units on urban lots smaller than 5 acres. Unlike SB-9, which is limited to single-family homes, SB-684 pertains to multi-family housing and vacant lots in single-family zones. A benefit of SB-684 is that there are no ownership restrictions on the property once it has been developed.
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 undergo a ministerial approval process. This method streamlines the development by using clear and consistent criteria, eliminating subjective assessments that may cause delays. It accelerates permit approvals by skipping extensive CEQA reviews and public hearings. However, even with this expedited process, it could still take up to a year and a half to complete a lot split.
What are objective standards?
"Objective zoning standards," "objective subdivision standards," and "objective design review standards". These guidelines remove subjective assessments by public officials and rely on clear, standardized metrics that are readily available to developers and officials before submission. This framework ensures uniformity and dependability in project evaluations, providing homeowners with clear and predictable guidelines for their proposals.
What types of objective standards qualify for a waiver under SB-9?
In Montebello, specific objective standards may be waived under SB-9 if they hinder the construction of two units on a lot or prevent each unit from being at least 800 square feet. Examples of these standards include:
- Setbacks: Side and rear yard setbacks can be minimized to a maximum of four feet if larger setbacks would hinder the development of two units that meet size requirements.
- Parking Requirements: These can be waived if they obstruct the construction of two units that comply with size standards.
What are the steps to get the permits?
To obtain permits under SB-9 in Montebello, take the following actions:
1. Examine Local Regulations: Familiarize yourself with the local Planning and Zoning Laws, as well as any specific guidelines regarding accessory dwelling units and housing projects.
2. Verify Compliance: Ensure your proposed project aligns with all applicable standards, including regulations on rent, demolition restrictions, site considerations, and historic district rules.
3. Compile Application Materials: Collect all required documentation for your housing development or urban lot split application.
4. Submit Your Application: Deliver your completed application to the relevant local agency for ministerial approval.
5. Request Tentative Map Extension: If necessary, ask the appropriate legislative body or advisory agency for an extension on the tentative map expiration date.
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 case, we suggest constructing a three-story duplex with a total floor area of 4,000 square feet and an additional 1,000-square-foot Accessory Dwelling Unit (ADU). The estimated total cost for this development, including all construction, permits, and professional fees (excluding land expenses), is $2,156,983. The projected market value for this completed property in Montebello is approximately $2,750,000, which translates to a return on investment (ROI) of [($2,750,000 - $2,156,983)/$2,156,983]*100 = 28%
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
For this option, we recommend dividing a lot to construct two separate three-story duplexes, each with a total area of 4,000 square feet. The estimated overall cost for this project, excluding land costs, is $3,460,764. The anticipated market value of these duplexes in Montebello is $4,400,000, resulting in an ROI of 27%.
Conclusion:
Implementing SB-9 projects in Montebello could lead to returns of less than 50%. To enhance potential returns, it may be beneficial to implement additional financial strategies or negotiate a more favorable purchase price for the property.
See how much it will cost you to improve your property per SB-9
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