City of Norwalk
All You Need to Know About Building on Properties in Norwalk Under SB-9
Applying SB-9 for real estate developments in Norwalk City can be a practical strategy for homeowners seeking funds to reduce their mortgage balance, introduce rental units, or provide space for relatives while remaining in their primary residence. For a successful SB-9 project, homeowners should grasp the eligibility criteria, and property regulations, and determine the SB-9 option that offers the most advantageous financial outcome for their property.
What is SB-9 and how does it apply to the properties in Norwalk City?
What is SB-9?
Senate Bill 9 (SB-9) aims to streamline the approval process for certain housing projects in California. It requires local governments to speed up approvals through a different process, without needing extensive environmental reviews, Conditional Use Authorizations, or similar approvals from bodies like the Planning Commission or Historic Preservation Commission. Participation is optional and depends on meeting specific eligibility requirements.
How does SB-9 apply to properties in Norwalk?
SB-9 could impact properties in Norwalk by making it easier to add more housing units to existing lots. This includes options like building accessory dwelling units (ADUs) or splitting lots to create multiple units. While this can boost housing supply and potential returns, it is important to consider local regulations, infrastructure needs, and community feedback.
What can homeowners build under SB-9 or Norwalk’s HOME Act?
Urban Lot Split under SB-9
This allows a single lot in a single-family residential zone to be divided into two.
Under this option, you could have the following unit configurations:
Not sure if your property is located in a Single-family zoned area?
Two-Dwelling Units under SB-9
A two-unit development allows for two residential units to be built on a single lot zoned for single-family homes.
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?
New units need to be at least 800 square feet in size. However, California’s SB-9 offers more flexibility with no maximum unit size restrictions, giving developers more options to design residential spaces.
Each lot created through an urban lot split under SB-9 can accommodate up to two units, which may consist of ADUs and JADUs.
What are the setbacks?
The City of Norwalk can require up to a four-foot setback from the side and rear lot lines. Existing structures or new ones built in the same dimensions and location as the original do not need setbacks.
What is the parking requirement under SB-9?
Each unit questions one off-street parking space. However, there are no parking requirements if the property is within half a mile of walking distance of a high-quality transit corridor, a major transit stop, or if there is a car-shared vehicle available within one block.
What are the lot constraints under SB-9?
The lot can be split into two with roughly equal sizes, ensuring that neither lot is smaller than 40% of the original size. Each new lot should be at least 1,200 square feet, and cannot have been previously divided through 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 R1 zoning districts, which are single-family zones.
Can you bypass the Historical Preservation limitations?
No, these limits cannot be bypassed. The property is not allowed in a historic district, on the State Historic Resources Inventory, or designated as a landmark or historic property by the city or county.
Is it allowed to demolish an affordable unit?
No, SB-9 does not allow the demolition or modification of units with rent restrictions for moderate, low, or very low-income households.
Is it allowed to build on a property in Coastal Zones?
Yes, construction is allowed in Coastal Zones, but it needs to follow the California Coastal Act regulations. This often requires a coastal development permit, ensuring compliance with specific guidelines to protect coastal resources and reduce environmental impact.
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. They need to sign an affidavit confirming their intention to use one of the housing units as their primary residence for at least 3 years after the urban lot split is approved.
What are the rental regulations?
Any newly created unit needs to be rented for more than 30 days.
Are existing tenants’ rights protected?
Yes, SB-9 protects existing tenants' rights. The proposal prevents demolition or changes to housing units that have rent or price controls, have been occupied by tenants in the last 3 years, or are on properties where rental agreements were terminated in the past 15 years. The project also cannot remove more than 25% of the existing exterior structural walls.
What is the difference between SB-9 and SB-684?
SB-684, a more recent law, allows for the development of up to 10 housing units on urban lots smaller than 5 acres, covering multi-family zones and vacant lots in single-family neighborhoods. This is a more flexible approach compared to SB-9, which is limited to single-family properties and imposes ownership restrictions after development.
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 that fall under SB-9 can qualify for ministerial approval. This process streamlines housing development by offering clear and consistent standards. In contrast to subjective approaches, ministerial approval relies on established criteria, which helps to minimize bureaucratic delays. Consequently, projects can obtain permits without the necessity for detailed CEQA assessments or public meetings. Nevertheless, even with this faster approach, securing approval for a lot split can take up to 1.5 years.
What are objective standards?
“Objective zoning standards," “subdivision standards," and “design review standards” are clear and measurable criteria used to evaluate housing proposals. They prevent subjective judgments by government officials and give developers a reliable set of rules to follow, making the process more predictable for homeowners.
What types of objective standards qualify for a waiver under SB-9?
(1) Setback waivers for current structures: SB-9 allows the elimination of setback rules that hinder the establishment of two units due to the presence of existing buildings.
(2) Setback waivers exceeding 4 feet: SB-9 also allows for exemptions from regulations requiring a setback of more than 4 feet from the side and rear property lines, as these can limit the ability to construct two units.
What are the steps to get the permits?
To obtain permits for a tentative parcel map, follow these steps:
1. Gather Necessary Information: Collect essential details for the tentative map, such as legal descriptions, owner information, and site characteristics.
2. Ensure Compliance: Make sure the proposed map aligns with all relevant zoning, planning, and subdivision requirements. Request waivers for any requirements that cannot be met.
3. Complete Application Package: Compile all required documents and submit the complete application package to the local authority for review.
4. Review and Approval Process: The local authority will review the application to ensure it meets regulations. This may involve several rounds of review and revisions.
5. Final Approval: Once all requirements are met and any necessary public notifications are completed, the local authority will grant final approval for the tentative parcel map.
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?
In this analysis, we will take a look at two scenarios to evaluate expected expenses, property assessments, and potential profits for real estate projects.
Scenario 1
New 4,000 sq. ft 3-Story Duplex + 1,000 sq. ft ADU
In this instance, we recommend constructing a three-story duplex with a combined area of 4,000 square feet, along with a 1,000-square-foot Accessory Dwelling Unit (ADU). The projected total cost, which includes construction, permits, and professional fees (excluding land), is $2,137,794. The estimated market value of the completed property in Norwalk is approximately $2,250,000, resulting in a return on investment (ROI) of [($2,250,000 - $2,137,794) / $2,137,794] * 100 = 5%.
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
In this alternative scenario, we propose dividing the lot to construct two distinct three-story duplexes, each with a total area of 4,000 square feet. The estimated cost, excluding land, is $3,452,897. The anticipated market value for these duplexes in Norwalk is $3,600,000, leading to an ROI of 4%.
Conclusion:
SB-9 projects in Norwalk present a considerable risk of achieving a return on investment below 50%. To mitigate this risk, consider implementing additional financial strategies or acquiring land at a significantly reduced price.