City of Rosemead
All You Need to Know About Building on Properties in Rosemead Under SB-9
Using SB-9 for real estate projects in Rosemead City is a smart way for homeowners to get money to pay off a significant portion of their loans. If you have extra funds, you can build more units to earn rental income or create space for family members while still living in your main home. To make an SB-9 project successful, start by checking if your property qualifies, understanding how the rules apply, and picking the SB-9 option that is most financially beneficial for your property.
What is SB-9 and how does it apply to the properties in Rosemead City?
What is SB-9?
SB-9, or Senate Bill 9, is designed to make it easier for certain housing projects to get approved in California. It directs local authorities to quickly approve these developments through a specific process, avoiding lengthy environmental reviews (CEQA), Conditional Use Authorization, or other discretionary approvals from groups like the Planning Commission or Historic Preservation Commission. Participation in this initiative is optional and depends on meeting certain requirements.
How does SB-9 apply to properties in Rosemead?
In Rosemead, SB-9 allows single-family residential (R-1) lots to be divided into two lots, allowing for the construction of two units on each new lot. As a result, SB-9 offers increased housing options and effectively addresses the demand for affordable housing in the area.
What can homeowners build under SB-9 or Rosemead’s HOME Act?
Urban Lot Split under SB-9
An urban lot split divides a single 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 Dwellings under SB-9
An urban dwelling is a type of home located in a city or town, where more people are living close together and have better roads, utilities, and services compared to rural or suburban areas. It can have up to two separate living units.
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 Rosemead, the new units in an urban dwelling have a minimum floor area of 500 square feet. If the proposed dwelling does not meet R-1 (residential) standards, the minimum size increases to 800 square feet.
However, California State SB-9 allows units of any size without restrictions.
A development under SB-9 can have a maximum of 2 units total. This includes any existing or new ADUs and JADUs
What are the setbacks?
The city requires four-foot rear and side setbacks for both the rear and side of the property.
What is the parking requirement under SB-9?
SB-9 requires at least one off-street parking space for each unit. However, no parking spaces are needed if the development is within half a mile of public transit.
What are the lot constraints under SB-9?
The law sets a minimum lot size of 1,200 square feet and a minimum lot width of 65 feet for flag lots.
For urban lot splits, each new lot should have a minimum width of 50 feet and a minimum frontage of 15 feet along the street. Urban lot splits can create up to two new parcels, with each lot area being roughly equal, and one lot cannot be less than 40 percent of the original lot's area.
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 Residential (R-1) zoning districts.
Is it allowed to demolish an affordable unit?
No, you cannot demolish or alter housing units that are protected by rules keeping 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, if the urban dwelling is part of an urban lot split, the applicant has to sign a statement confirming they will live in one of the housing units as their main home for at least 3 years from the date of approval.
What are the rental regulations?
Short-term rentals, defined as rentals for 30 days or less, are not allowed for urban dwellings under these rules.
Are existing tenants’ rights protected?
Yes, existing tenants are protected. Properties occupied by tenants in the last 3 years cannot be demolished or altered. Additionally, properties under any rent control or similar rules from a public entity cannot be changed.
These rules prioritize tenant rights and aim to maintain housing stability. Also, proposed urban developments cannot demolish more than 25 percent of the existing exterior walls, helping to preserve the original structure.
Can condominiums be proposed as part of my Urban Lot Split application?
No, under California's SB-9, homeowners can split a single-family lot into two and build up to two units on each lot, totaling four units. Condominiums require a different ownership structure and involve more complex processes, including fees, environmental assessments, public hearings, and appeals, unlike the simpler SB-9 urban lot split process.
What is the difference between SB-9 and SB-684?
SB-684 allows up to 10 housing units on urban lots under 5 acres, including multi-family zones and vacant lots in single-family areas. In contrast, SB-9 is limited to single-family properties and enforces ownership restrictions after development, which restricts the housing 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, SB-9 projects can obtain ministerial approval, which simplifies housing development with clear regulations. This process reduces bureaucratic delays, allowing projects to receive permits without extensive environmental reviews (CEQA) or public hearings. However, getting approval 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" are clear and set rules used to remove personal judgment from public officials. These standards are based on measurable and consistent criteria that developers and officials can access before submitting projects. This ensures reliable assessments, giving homeowners clear guidelines for evaluating their proposals.
What types of objective standards qualify for a waiver under SB-9?
SB-9 waivers can apply to rules that prevent building two 800-square-foot units, including parking requirements, and setbacks that keep at least 4 feet from the rear and side property lines.
What are the steps to get the permits?
To secure permits for urban dwellings or urban lot splits under SB 9, follow these steps:
1. Understand the SB 9 law, including development rules like unit limits, demolition restrictions, and owner-occupancy requirements.
2. Check and follow state and local rules regarding affordable housing, rent control, and demolition.
3. Assess the size and quantity rules for urban lot splits, making sure to meet the stated standards.
4. Work with the Planning Division to get a detailed guide on SB-9 development standards and specific submission requirements.
5. Prepare and submit an administrative site plan and design review to the Planning Division for evaluation and approval before starting the Building Permit application.
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 propose constructing a three-story duplex with a total area of 4,000 square feet, along with a 1,000-square-foot Accessory Dwelling Unit (ADU). The estimated total cost, covering construction, permits, and professional fees (excluding land costs), is $2,179,752. The anticipated market value of the finished property in Rosemead is approximately $4,500,000, resulting in an 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 the second scenario, we suggest subdividing a lot and constructing two separate three-story duplexes, each with a total area of 4,000 square feet. The projected total cost for this development, excluding land acquisition, is $3,478,273. The estimated market value for these duplexes in Rosemead is $7,200,000, resulting in an ROI of 107%.
Conclusion:
Real estate developments under SB-9 in Rosemead present significant returns on investment, establishing the city as an appealing and promising destination for property development projects.