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All You Need to Know About Building on Properties in Pomona Under SB-9

SB-9 provides homeowners in Pomona with valuable opportunities beyond lowering mortgage payments or generating rental income. It can also increase property value appreciation by encouraging the development of diverse housing options, enhancing homeowners' real estate assets. However, Pomona has not implemented SB-9 since its introduction in 2021, as the city lacks zoning designated solely for single-family use. On October 23, 2024, Vinny Tam, the supervising planner for Pomona, addressed CityStructure's inquiry about SB-9 projects, explaining that "SB-9 applies to properties that are only zoned for single-family use." All residentially zoned properties in Pomona allow for single- and multi-family uses, meaning the specific conditions necessary for SB-9's application are not met. Additionally, the city has not adopted any supplementary regulations related to SB-9, further limiting its potential benefits in the area.

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

What is SB-9?

Senate Bill 9 or SB-9 aims to streamline the approval process for specific housing projects across California, allowing local governments to manage these developments more effectively. It creates a simplified approach that bypasses lengthy environmental assessments, like those required by CEQA, and eliminates the need for Conditional Use Permits or other discretionary approvals typically required by Planning or Historic Preservation Commissions.

How does SB-9 apply to properties in Pomona?

SB-9 promotes the development of two-unit projects and urban lot splits on qualifying properties. Local governments, such as Pomona, should establish regulations to enforce the provisions of SB-9, simplifying the process of adding more housing units.

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

Urban Lot Split under SB-9

Urban lot split allows a single-family property to be divided into two different 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 allows for a maximum of two residential buildings on a lot designated for single-family use. If there is already a primary residence, an additional unit can be constructed as another primary dwelling.

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 Pomona, new units developed under SB-9 be at least 800 square feet in size. However, California does not set specific size restrictions for these new units.

Each lot is allowed to have two housing units, which can include ADUs and JADUs.

What are the setbacks?

A minimum setback of 4 feet is required from the side and rear property lines. However, if a new structure is constructed in the same location and dimensions as an existing one, setbacks are not required.

What is the parking requirement under SB-9?

Each unit must have off-street parking, limited to one space per unit. However, the city cannot enforce parking regulations under specific cases:

(A) If the property is within half a mile of a high-quality transit corridor or a major transit stop.

(B) If a car-share vehicle is available within one block of the property.

What are the lot constraints under SB-9?

SB-9 allows a lot to be split into two. However, one of the new lots should be at least 40% of the original lot's size, and both new lots need to 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 within environmentally sensitive areas, such as wetlands, hazardous waste sites, flood zones, conservation areas, or habitats for protected species. These restrictions aim to protect these regions from potential damage due to development.

Can you bypass the Historical Preservation limitations?

No, all new projects should follow the Historical Preservation regulations unless it can be verified that the project is outside a historic district or not listed on the State Historic Resources Inventory. Additionally, the site should not be classified as a landmark or historic property under local laws.

Is it allowed to demolish an affordable unit?

No, demolishing or modifying housing protected by a recorded covenant or law that ensures rents remain affordable for moderate, low, or very low-income families is prohibited under SB-9.

Is it allowed to build on a property in Coastal Zones?

Yes, construction in Coastal Zones is allowed, but it should comply with the California Coastal Act of 1976. The specific regulations and requirements will depend on this act and local ordinances.

Is it allowed to build in High-Risk Areas?

It varies. Building in high-risk areas, such as those prone to wildfires, earthquakes, or flooding (the 100-year flood zone), is discouraged. However, exceptions may exist for flood zones with special FEMA designations or if they meet specific criteria from 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 should reside on the property. Those applying for an urban lot split are required to submit a signed affidavit indicating that they will occupy 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?

Units developed under SB-9 should be rented for a minimum of 30 days.

Are existing tenants’ rights protected?

Yes, the rights of current tenants are protected through several rules:

(1) Properties rented under certain conditions cannot be demolished or altered.

(2) Rental agreements should not have been terminated in the past 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 legislation, allowing the development of up to 10 units on urban lots less than 5 acres. In contrast to SB-9, which applies only to single-family homes, SB-684 covers multi-family housing and vacant lots in single-family zones. A key advantage of SB-684 is that there are no restrictions on property ownership 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, SB-9 projects can be processed through a ministerial approval method. This approach simplifies development by applying clear, consistent criteria and eliminating subjective evaluations that could lead to delays. It speeds up permit approvals by avoiding extensive CEQA reviews and public hearings. However, the process can still take up to a year and a half to finalize a lot split.

What are objective standards?

"Objective zoning standards," "objective subdivision standards," and "objective design review standards". These guidelines eliminate subjective judgments from public officials and depend on clear, standardized metrics that developers and officials can access before submission. This system ensures consistency and reliability in project assessments, offering homeowners clear and predictable criteria for their proposals.

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

In Pomona, certain objective standards can be waived under SB-9 if they impede the construction of two units on a lot or prevent each unit from reaching at least 800 square feet. Examples of standards that may be waived include:

Setbacks: Side and rear yard setbacks can be reduced to a maximum of four feet if larger setbacks would obstruct the development of two compliant units.

Parking Requirements: These requirements may be waived if they hinder the construction of two units that meet size specifications.

What are the steps to get the permits?

To secure permits under SB-9 in Pomona, follow these steps:

1. Review Local Regulations: Understand the local Planning and Zoning Laws, along with any specific rules regarding accessory dwelling units and housing developments.

2. Confirm Compliance: Make sure your proposed project meets all relevant standards, including regulations on rent, demolition prohibitions, site considerations, and historic district guidelines.

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

4. Submit Your Application: Present your completed application to the appropriate local agency for ministerial approval.

5. Request Tentative Map Extension: If needed, seek an extension on the tentative map expiration date from the relevant 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 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 $2,164,045. The projected market value for this completed property in Pomona is approximately $2,775,000, which translates to a return on investment (ROI) of [($2,775,000 - $2,164,045)/$2,164,045]*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 $3,467,649. The anticipated market value of these duplexes in Pomona is $4,440,000, resulting in an ROI of 28%.

Conclusion:

Starting SB-9 projects in Pomona could result in returns of under 50%. To improve potential returns, it may be helpful to adopt additional financial strategies or negotiate a more profitable purchase price for the property.

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

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Resources

Pomona Municipal Code