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All You Need to Know About Building on Properties in Rolling Hills Estate Under SB-9
Applying SB-9 for real estate ventures in Rolling Hills Estate offers homeowners a valuable opportunity to free up funds for repaying a portion of their mortgage, expand their property with additional rental units, or create living space for relatives while continuing to reside in their primary home. To ensure a successful SB-9 project, start by determining your property's eligibility, grasping how the regulations affect your property, and choosing the SB-9 option that provides the greatest financial benefit for properties in Rolling Hills Estate.
What is SB-9 and how does it apply to the properties in Rolling Hills Estate City?
What is SB-9?
Senate Bill 9 (SB-9) is designed to simplify the approval process for certain housing projects in California. It encourages local officials to speed up approvals for these projects by using an alternative method that avoids extensive environmental reviews (CEQA) and other discretionary approvals from groups like the Planning Commission or Historic Preservation Commission. Participation in this initiative is optional, and specific requirements need to be met.
How does SB-9 apply to properties in Rolling Hills Estate?
In Rolling Hills Estate, SB-9 makes it easier to split urban lots and develop housing. It allows homeowners to divide single-family residential lots into two, as long as they meet specific criteria, including being located within designated single-family residential zones.
What can homeowners build under SB-9 or Rolling Hills Estate’s HOME Act?
Urban Lot Split under SB-9
An urban lot split allows homeowners to divide a single-family residential lot 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?
Urban Dwelling under SB-9
An urban dwelling refers to a residential unit or living space located within an urban area.
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?
The new units can have a minimum floor area of 800 square feet. However, under California's SB-9, there are no restrictions on the size of the unit.
Additionally, no more than two primary dwelling units can be built on the original lot. This count includes any existing ADUs and JADUs.
What are the setbacks?
The setbacks require a minimum distance of 4 feet from both the rear and side property lines.
What is the parking requirement under SB-9?
SB-9 requires one off-street parking space for each unit, unless the parcel is within half a mile of a high-quality transit corridor or major transit stop, or if a car-share vehicle is available within one block.
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 specific residential zones: R-A-E, R-A-10, R-A-15, R-A-20, or RPD. For RPD, the property should have been developed using the R-A-20 standards.
Can you bypass the Historical Preservation limitations?
Historical Preservation limitations cannot be bypassed, so the parcel cannot be within a designated historic district or property.
Is it allowed to demolish an affordable unit?
No. Demolishing or altering an affordable unit is prohibited if it is covered by a recorded covenant, ordinance, or law that keeps rents affordable for moderate, low, or very low-income individuals and families.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes, the homeowner needs to live on the property. They should occupy one of the housing units as their main residence for at least 3 years from the date the urban lot split is approved.
What are the rental regulations?
Units cannot be rented for less than 30 days.
Are existing tenants’ rights protected?
Yes, existing tenants' rights are protected. A unit cannot be demolished or changed if it is under rent control by a public entity or has been occupied by a tenant within the last 3 years.
Additionally, any changes to more than 25 percent of the exterior structural walls are not allowed unless the housing has been vacant for the past 3 years.
What is the difference between SB-9 and SB-684?
SB-684, a more recent legislation, permits the establishment of as many as 10 housing units on urban properties under 5 acres, including multi-family zones and vacant lots in areas designated for single-family homes. In contrast, SB-9 focuses only on single-family properties and imposes ownership restrictions following the construction phase, which limits development 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 comply with SB-9 can receive ministerial approval. This method facilitates housing development by providing clear and consistent regulations. In contrast to subjective methods, ministerial approval relies on defined criteria, which helps decrease bureaucratic delays. Therefore, projects can receive permits without the lengthy environmental reviews (CEQA) or public hearings usually necessary. However, even with this streamlined approach, securing approval for a lot split may still take up to 1.5 years.
What are objective standards?
“Objective zoning standards”, “subdivision standards”, and “design review standards” seek to remove personal opinions from the decision-making process. These criteria use clear and standardized measurements that developers and officials can check before submitting proposals. This ensures consistent evaluations and gives homeowners clear guidelines for their projects.
What types of objective standards qualify for a waiver under SB-9?
Under SB 9, certain standards can be waived if they prevent building at least two units of 800 square feet on a property. These waivers can include rules about parking, setbacks for horse-keeping areas, lot coverage, and setbacks that focus on reducing the front yard while keeping a minimum of 4 feet from rear and side property lines.
What are the steps to get the permits?
1. Application Submission: Start by submitting a complete tentative parcel map application along with all necessary fees to the community development department.
2. Notice to Property Owners: Once the application is complete, the community development department will notify property owners within a 500-foot radius of the site. The applicant covers the mailing costs.
3. Staff Review: The director will send the application to the relevant city departments and outside agencies for feedback. The applicant will receive comments from the city for any needed changes.
4. Timing of Action: The department will decide on the application within sixty days of receiving it, although this can be extended if the applicant requests more time in writing.
5. Director Action:
- Approval: If the application meets all requirements, the director will approve it without a discretionary review or public hearing. Approval will depend on any necessary easements.
- Denial: The director will deny the application if it doesn’t meet objective requirements or poses specific, serious risks to public health, safety, or the environment without ways to fix those issues.
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
For this situation, we propose building a three-story duplex with a combined area of 4,000 square feet, plus an additional 1,000-square-foot Accessory Dwelling Unit (ADU). The projected total cost, covering construction, permits, and professional fees (excluding land), is $2,179,752. The estimated market value of the completed property in Rolling Hills Estates is about $4,500,000, yielding a return on investment (ROI) of [($4,500,000 - $2,179,752) / $2,179,752] * 100 = 106%.
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
In this second scenario, we recommend dividing the lot to develop two separate three-story duplexes, each with a 4,000-square-foot area. The total estimated cost, excluding land acquisition, is $3,478,273. The anticipated market value for these duplexes in Rolling Hills Estates is $7,200,000, resulting in an ROI of 107%.
Conclusion:
SB-9 projects in Rolling Hills Estates provide notably high returns on investment, making the area a very appealing and promising option for real estate development.
See how much it will cost you to improve your property per SB-9
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