City of Pico Rivera
All You Need to Know About Building on Properties in Pico Rivera Under SB-9
Using SB-9 for real estate projects in Pico Rivera City can help homeowners get cash to pay off a big portion of their loans. If you have extra money, you can add more units to make rental income or create space for family members while you keep living in your main home. To make an SB-9 project work, you need to first find out if your property is eligible, how the rules impact it, and which SB-9 option is the most cost-effective for your property.
What is SB-9 and how does it apply to the properties in Pico Rivera City?
What is SB-9?
Senate Bill 9, or SB-9, aims to simplify the approval process for certain residential projects in California. It requires local authorities to speed up the approval of these projects, avoiding lengthy environmental reviews (CEQA) and other discretionary approvals from groups like the Planning Commission or Historic Preservation Commission. Participation in this program is optional and depends on meeting specific eligibility criteria.
How does SB-9 apply to properties in Pico Rivera?
SB-9 significantly impacts properties in Pico Rivera by allowing property owners to pursue urban lot splits, allowing them to divide a single-family lot into two separate lots. This creates opportunities for increased housing density and new housing options within the community. Additionally, SB-9 helps homeowners build two units on a single-family lot, promoting efficient land use and enhancing the number of housing units in existing neighborhoods.
What can homeowners build under SB-9 or Pico Rivera’s HOME Act?
Urban Lot Split under SB-9
Urban lot split under SB-9 allows homeowners to divide a single-family residential lot in urban or suburban areas 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 Projects under SB-9
This involves a residential development that includes two separate housing units, either within the same building or on the same lot. These units can be arranged in different ways, such as a duplex (2 units attached) or 2 detached homes on the same lot.
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?
Each unit requires a floor area of at least 500 square feet and no more than 800 square feet. However, California's SB-9 law allows for units of any size, which may override the local rules.
Only two units are allowed per lot, which includes ADUs and JADUs.
What are the setbacks?
A minimum setback of 4 feet is required for both side and rear property lines.
What is the parking requirement under SB-9?
SB-9 requires one off-street parking space for each unit.
What are the lot constraints under SB-9?
Each lot created from a lot split needs to be at least 1,200 square feet. No individual lot can be smaller than 40% of the original lot size. Additionally, SB-9 does not allow the creation of lots through previous splits.
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 (S-F) zoning districts.
Can you disregard the environmental restrictions on the lot?
No, you cannot disregard environmental restrictions. While Pico Rivera City's SB-9 does not specify these, California's SB-9 and the HOME Act do not apply to properties in environmentally sensitive zones. These include wetlands, hazardous waste sites, floodways, conservation areas, and habitats for protected species.
Can you bypass the Historical Preservation limitations?
No, you cannot bypass Historical Preservation regulations. Pico Rivera City's SB-9 does not specifically mention these limitations, but California's SB-9, or the HOME Act, does not apply to properties in historic and landmark districts.
Is it allowed to demolish an affordable unit?
Pico Rivera City's SB-9 does not directly address this, but many areas in Los Angeles under SB-9 regulations prohibit demolishing or modifying affordable housing units covered by a recorded covenant or law. These units need to remain affordable for moderate, low, or very low-income individuals and families.
Is it allowed to build in High-Risk Areas?
Maybe. Building in high-risk areas is possible, but it is generally discouraged due to safety concerns. Properties in high fire hazard zones, earthquake fault zones, 100-year flood zones, or floodways often face restrictions aimed at minimizing risk and ensuring safety.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes, but only for a limited time. For an urban lot split, the homeowner should sign an affidavit stating their intention to live in one of the units for at least 3 years.
Are existing tenants’ rights protected?
Yes, the project cannot involve demolishing more than 25% of the existing exterior walls, which helps protect current tenants.
Can condominiums be proposed as part of my Urban Lot Split application?
Yes, in Pico Rivera, property owners can split a single-family lot into two lots and build up to two units on each, potentially resulting in four units total. However, converting properties into condominiums requires the Parcel Map process, which involves additional fees, environmental assessments, public hearings, and appeal periods, unlike the faster ministerial processes for SB-9 Urban Lot Splits.
What is the difference between SB-9 and SB-684?
SB-684, a newer law, allows for the construction of up to 10 housing units on urban lots under 5 acres, applicable to both multi-family zones and vacant lots in single-family neighborhoods. In contrast, SB-9 is limited to single-family properties and imposes ownership restrictions after the development process, offering fewer options.
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 receive ministerial approval. This approach streamlines housing development by providing clear and consistent standards. Unlike subjective methods, ministerial approval relies on predetermined criteria, which helps minimize bureaucratic delays. Consequently, projects can obtain permits without the need for lengthy CEQA reviews or public hearings. Nonetheless, despite this faster process, the approval period for a lot split can still take up to 1.5 years.
What are objective standards?
"Objective zoning standards," "objective subdivision standards," and "objective design review standards" These benchmarks help remove personal judgments from public officials in zoning, subdivision, and design reviews. Instead, they rely on clear and standardized measures that developers and officials can access before submitting projects. This ensures consistency and reliability in project assessments, giving homeowners clear expectations about the outcomes of their proposals.
What types of objective standards qualify for a waiver under SB-9?
(1) Waivers for existing structure setbacks: SB-9 permits the elimination of setback requirements that hinder the construction of two units, each at least 500 square feet, due to existing buildings.
(2) Waivers for setbacks beyond 4 feet: SB-9 also provides exemptions from regulations that require a setback greater than 4 feet from the side and rear property boundaries, which may restrict the construction of two units.
(3) Waivers for additional objective standards: SB-9 can offer waivers for other objective criteria that may obstruct the building of two units on the property.
What are the steps to get the permits?
To get permits under SB-9 for Urban Lot Splits or Two-unit projects in Pico Rivera, follow these 5 steps:
1. Review SB-9 Requirements: Understand the rules for Urban Lot Splits and Two-unit projects as outlined in SB-9.
2. Contact Pico Rivera Planning Department: Reach out to the Planning Department for advice and clarification on SB-9 rules specific to the city.
3. Ensure Compliance: Check that your project meets SB-9 requirements, including lot size, zoning, and other criteria.
4. Submit Application: Send your application to the Planning Department for ministerial review and approval.
5. Permit Issuance: After a successful review, permits will be issued, allowing you to start construction.
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 initial scenario, we recommend developing a three-story duplex with a total footprint of 4,000 square feet, complemented by a 1,000-square-foot Accessory Dwelling Unit (ADU). The estimated total expenditure, encompassing construction, permits, and professional fees (excluding the land cost), is $2,168,872. The anticipated market value for this completed property in Pico Rivera is approximately $2,665,000, yielding an ROI of [($2,665,000 - $2,168,872)/$2,168,872]*100 = 23%
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
In this second scenario, we plan to divide a lot and construct two distinct duplexes, each with a total area of 4,000 square feet and three stories. The projected total cost for this endeavor, not including the land purchase, is $3,475,576. The estimated market value for these duplexes in Pico Rivera is $4,264,000, resulting in an ROI of 23%.
Conclusion:
Pursuing SB-9 developments in Pico Rivera might lead to returns below 50%. Consider adopting extra financial measures or negotiating a lower land price to address this potential shortfall.
See how much it will cost you to improve your property per SB-9
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