What is SB-9 and how does it apply to the properties in Rolling Hills?

What is SB-9?

In California, Senate Bill 9 simplifies and accelerates the approval process for certain housing projects. It allows local governments to bypass some environmental reviews (CEQA) and approvals from authorities like the Planning Commission or Historic Preservation Commission, making it easier for homeowners to add extra housing units or divide their properties.

How does SB-9 apply to properties in Rolling Hills?

In Rolling Hills, SB-9 gives homeowners the option to either expand their existing homes or split their property into two lots for new housing. As long as they follow local guidelines and meet requirements, homeowners can either build extra units or divide their land.

What can homeowners build under SB-9 or Rolling Hills’ HOME Act?

Urban Lot Split under SB-9

An urban lot split allows homeowners to divide one single-family lot into two separate lots, where they can build new housing units on each one.

Under this option, you could have the following unit configurations:

Not sure if your property is located in a Single-family zoned area?

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Two-Unit Development under SB-9

A Two-Unit Development under SB-9 allows homeowners to create two separate homes or add units to an existing house in areas designated for single-family residences.

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 Rolling Hills, each new home must be at least 800 square feet, however, California state law does not set a maximum size for the unit.

If you divide your property through an urban lot split, you can build up to two separate homes on the lot. This can also include additional smaller units like ADUs or JADUs.

What are the setbacks?

For setbacks, Rolling Hills requires a minimum of 4 feet from the side and back property lines. However, no setback is needed if the new building is similar to the existing one in size and position.

What is the parking requirement under SB-9?

Each unit should have at least one off-street parking space, unless the property is within half a mile of a major transit area or station, or there's a car-share vehicle nearby.

What are the lot constraints under SB-9?

When splitting a lot, you can divide it into two approximately equal parts, but the smaller lot should be at least 40% of the original size. Both lots need to be at least 1,200 square feet and cannot have been previously split under the urban lot split process.

Development Analysis calculates the max size under SB-9 for the highest return.

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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, environmental restrictions cannot be disregarded. SB-9 does not allow construction in areas that are environmentally sensitive, such as wetlands, hazardous waste sites, flood zones, conservation areas, or areas that are home to endangered species. These areas are protected to preserve their natural value.

Can you bypass the Historical Preservation limitations?

SB-9 projects should follow historical preservation regulations unless the property is outside of historical districts, not listed on the State Historic Resources Inventory, and not a local historic landmark.

Is it allowed to demolish an affordable unit?

SB-9 prohibits the demolition or alteration of homes that are legally protected for low- to moderate-income families.

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

Yes, you can build in Coastal Zones under SB-9, but it should comply with the California Coastal Act of 1976. This often requires a coastal development permit and adherence to rules designed to protect the coastal environment.

Is it allowed to build in High-Risk Areas?

It depends. Building in high-risk zones is not recommended, including in:

(A) High fire hazard zones

(B) Earthquake fault zones

(C) For flood-prone areas (such as the 100-year flood zone), there may be exceptions if the property qualifies under FEMA regulations or meets the criteria of 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 live on the property. When applying for an urban lot split, they should sign a statement confirming that they will live in one of the new units as their primary residence for at least 3 years after the split is approved.

What are the rental regulations?

Any units built under SB-9 can only be rented out for periods of 30 days or longer.

Are existing tenants’ rights protected?

Yes, tenants’ rights are protected in certain cases to ensure affordable housing is kept intact. These protections include:

(A) Homes with rent control or homes that have had tenants in the past 3 years cannot be demolished or altered.

(B) Properties where tenants were evicted in the last 15 years are protected.

(C) New construction cannot involve removing more than 25% of the building’s outer walls.

What is the difference between SB-9 and SB-684?

SB-684 is a newer law that allows for up to 10 housing units to be built on smaller properties (less than 5 acres). While SB-9 mainly applies to single-family homes, SB-684 also works for multi-family homes and vacant lots in single-family neighborhoods. A key benefit of SB-684 is that there are no limits on who can own the property 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 are eligible for a quicker approval process. This means the project can be approved based on clear, straightforward guidelines instead of individual decisions, helping to avoid delays from things like lengthy environmental reviews or public hearings. However, it could still take up to 18 months to finalize a lot split.

What are objective standards?

"Objective zoning standards," "objective subdivision standards," and "objective design review standards" are clear and specific rules that guide decisions about property development. These rules provide detailed criteria, making it easier for both builders and city officials to understand what is required. They ensure that decisions are fair and consistent, so homeowners can know exactly what to expect for their projects.

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

SB-9 allows the waiver of certain standards, such as:

• Requirements for setbacks related to existing structures that obstruct the construction of two units.
• Setback rules more than 4 feet from side and rear property lines that restrict the development of two units.

What are the steps to get the permits?

To get permits for an SB-9 project in Rolling Hills, follow these steps:

1. Understand Local Rules
Familiarize yourself with the city's zoning laws and any specific guidelines for adding units or starting a housing project.

2. Make Sure Your Project Follows the Rules
Double-check that your project meets all requirements, including zoning laws, limits on demolitions, and rules related to historic preservation.

3. Gather the Required Documents
Prepare all the necessary paperwork for your application, whether it's for a lot split or new housing.

4. Submit Your Application
Turn in your completed application to the local agency for their review and approval.

5. Ask for an Extension (if needed)
If your application deadline is approaching, you can request an extension from the responsible authority.4o mini

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 breakdown looks at two possible scenarios to help understand costs, property values, and potential profits for real estate projects.

Scenario 1

New 4,000 sq. ft 3-Story Duplex + 1,000 sq. ft ADU

In this scenario, the plan is to build a three-story duplex that totals 4,000 square feet, plus a 1,000-square-foot Accessory Dwelling Unit (ADU). The total cost for construction, permits, and professional services (excluding the cost of the land) is estimated to be $2,181,106. After the property is completed in Rolling Hills, it is expected to be worth around $6,000,000, resulting in an ROI of [($6,000,000 - $2,181,106)/$2,181,106]*100 = 175%

Scenario 2

Lot Split with 2 new 4,000 sq. ft 3-story Duplexes

In the second scenario, the lot would be divided, and two separate three-story duplexes (each 4,000 sq. ft.) would be built. The total estimated cost for this project, excluding land costs, is $3,481,289. The expected market value for both duplexes in Rolling Hills combined is $9,600,000, providing an ROI of 176%.

Conclusion:

SB-9 projects in Rolling Hills offer impressive returns, making the area a highly attractive and profitable option for real estate investments.

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

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