City of Palmdale
All You Need to Know About Building on Properties in Palmdale Under SB-9
Using SB-9 to boost the value of a property in Palmdale is a great way for homeowners to secure funds to reduce their mortgage debt. Moreover, if you have the means to build additional units, you could create rental income or offer housing for extended family members while still living in the primary home. To make sure your SB-9 project is successful, it’s important to know the eligibility requirements, how the regulations affect your property, and which SB-9 option makes the most financial sense for your property in Palmdale.
What is SB-9 and how does it apply to the properties in Palmdale City?
What is SB-9?
SB-9 aims to create more housing opportunities in single-family neighborhoods while simplifying the approval process for new homes. It introduces a streamlined method for approving Two-Unit Developments and Urban Lot Splits. If a proposed development meets specific zoning, design, and subdivision requirements, the city is expected to approve it through a simplified ministerial review. This approach promotes housing growth while ensuring new homes align with the existing neighborhood style.
How does SB-9 apply to properties in Palmdale?
In Palmdale, SB-9 can impact zoning and development by making it easier to build new homes in single-family neighborhoods. It simplifies the approval process for property owners and developers, making it more predictable and efficient for certain housing projects. This helps expand the local housing market while keeping the unique character of Palmdale’s neighborhoods.
What can homeowners build under SB-9 or Palmdale’s HOME Act?
Urban Lot Split under SB-9
An Urban Lot Split allows a single lot to be divided into two separate lots within areas zoned for single-family residential use.
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 involves building two primary homes on a single property in 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 Palmdale, each unit can be at least 800 square feet in size. In Contrast, California State SB-9 provides even more flexibility allowing developers to plan residential spaces without strict size limitations.
SB-9 allows for two primary homes per lot, with the potential to add up to two ADUs or JADUs.
What are the setbacks?
Side and rear setbacks require a minimum of 4 feet between the building and property lines. Front setbacks depend on the specific rules for the single-family zone where the property is located.
Legally existing structures or those rebuilt in the same location with the same dimensions do not require setbacks.
What is the parking requirement under SB-9?
Each primary unit needs one parking space unless certain conditions apply. No parking is required if the property is within a 1/2-mile walk of a high-quality transit corridor or a major transit stop, recognizing that residents near public transit might not need personal vehicles. Also, if a car-share vehicle is available within a block of the property, no parking space is needed.
What are the lot constraints under SB-9?
Each new lot needs to be at least 40% of the original lot size and should cover a minimum 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?
SB-9 applies only to Residential Single Unit Zones like ER, LDR, SFR 1, SFR 2, and SFR 3.
Can you disregard the environmental restrictions on the lot?
No, SB-9 does not apply to lots within environmentally sensitive areas. These include places like wetlands, floodways, conservation zones, hazardous waste sites unless cleared for residential use, and habitats for protected species.
Can you bypass the Historical Preservation limitations?
No, properties in designated historic districts or those listed as historical are exempt from SB-9. While SB-9 supports new housing in many residential zones, it does not override rules protecting historically significant areas.
Is it allowed to demolish an affordable unit?
No, SB-9 prohibits demolishing or altering affordable housing units that are protected by covenants, ordinances, or laws. These units need to remain affordable to moderate, low, or very low-income individuals and families.
Is it allowed to build on a property in Coastal Zones?
Palmdale’s SB-9 regulations do not specifically address coastal areas, but it is important to check with the planning department. Coastal zones often have stricter rules, so it is important to understand local codes before starting any project.
Is it allowed to build in High-Risk Areas?
Building in high-risk areas is discouraged due to safety concerns. The regulations state that a site cannot be in an earthquake fault zone, in a 100-year flood zone, or a regulatory floodway. These guidelines help reduce the risks from natural disasters and protect both residents and properties.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes. For an urban lot split, the owner is required to sign an affidavit stating they will live in one of the units as their primary residence for at least 3 years.
For two-unit housing, one unit needs to be owner-occupied, and a covenant is recorded to inform future owners about the owner-occupancy requirement.
What are the rental regulations?
Under SB-9 units cannot be rented for less than 31 days.
Are existing tenants’ rights protected?
Yes. Properties with Ellis Act evictions in the last 15 years are ineligible for SB-9, protecting tenants from displacement. Housing with rent or price controls is also protected. Additionally, homes occupied by tenants within the last 3 years cannot be demolished or altered, reinforcing tenant protection.
Can condominiums be proposed as part of my Urban Lot Split application?
Yes. You can propose condominiums in your urban lot split application. This allows you to divide the lot into separate parcels and develop condominium units on them. In this setup, individuals own their units but share ownership of common areas.
What is the difference between SB-9 and SB-684?
SB-684 is a newer legislation that allows the construction of up to 10 housing units on urban lots under 5 acres, applicable to multi-family zones and vacant lots in single-family areas. This offers greater flexibility than SB-9, which targets only single-family properties and includes ownership limitations post-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 under SB-9 can receive ministerial approval. This process simplifies housing development by providing straightforward and uniform standards. Unlike more subjective methods, ministerial approval is based on clear criteria, which reduces bureaucratic delays. As a result, projects can secure permits without needing extensive CEQA evaluations or public hearings. However, even with this expedited process, obtaining approval for a lot split may still take as long as 1.5 years.
What are objective standards?
“Objective zoning standards”, “objective subdivision standards”, and “objective design review standards” are straightforward criteria that do not depend on personal opinions from officials. They use consistent, measurable criteria known to both developers and officials ahead of time, ensuring fairness and clarity in how projects are evaluated. Homeowners can know in advance what to expect from their proposals.
What types of objective standards qualify for a waiver under SB-9?
(1) Setback waivers for current structures: SB-9 allows the removal of setback regulations that obstruct the construction of two units, each being at least 800 square feet, due to the presence of existing buildings.
(2) Setback waivers greater than 4 feet: SB-9 also allows for exemptions from rules that require a setback distance of more than 4 feet from side and rear property lines, as these can limit the ability to build two units.
(3) Waivers for other objective standards: SB-9 may grant waivers for additional objective standards that could hinder the development of two units on the property.
What are the steps to get the permits?
1. Confirm Eligibility
First, make sure your project meets all SB 9 criteria.
2. Zoning Clearance Application
Submit a Zoning Clearance application through the city’s system. If it qualifies, you can move on to the next step.
3. Submit SB-9 Application
Complete and submit the SB-9 Two-Unit Development or Urban Lot Split application using the standard form. For lot splits, include the Tentative Map Checklist and file the required restrictive covenant and agreement.
4. Review Process
The Planning Division checks if your application meets all the standards. For lot splits, the map recordation process for Parcel Maps starts after approval.
5. Building Permit Application
Once you have Planning approval, apply for a building permit. You may also need to coordinate with the Engineering Division and utility providers for additional requirements.
6. Plan Review
The Building and Safety Division will review your plans to ensure they follow the California Building Code. You may need to make some revisions to meet zoning and safety standards.
7. Building Permit Approval
After your building permit is approved, construction on the Two-Unit Development or Urban Lot Split can begin.
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 initial scenario, we recommend building a 4,000-square-foot, three-story duplex along with a 1,000-square-foot Accessory Dwelling Unit (ADU). The estimated total expense for this project, including construction, permits, and professional fees (excluding land costs), is $2,165,471. The projected market value of this completed property in Palmdale is about $3,260,000, resulting in an ROI of [($3,260,000 - $2,165,471)/$2,165,471]*100 = 51%
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
For the second scenario, we plan to divide a lot and build two new 4,000-square-foot, three-story duplexes. The total estimated cost for this development is $3,469,823, not including the cost of acquiring the land.
In Palmdale, the estimated market value for these duplexes is $5,216,000, which translates to an ROI of 50%.
Conclusion:
SB-9 projects in Palmdale provide a moderate return on investment, making it a cautious choice for real estate development, whether through lot splitting or new construction.