What is SB-9 and how does it apply to the properties in Unincorporated San Diego County?

What is SB-9?

Senate Bill 9 (SB-9) is designed to simplify the approval process for certain housing projects in California. It requires that local jurisdictions accelerate the approval of these developments without requiring detailed environmental assessments (CEQA), conditional use permits, or other discretionary approvals from authorities like the Planning Commission or Historic Preservation Commission. While participation in this process is optional, specific eligibility criteria should be fulfilled.

How does SB-9 apply to properties in Unincorporated San Diego County?

In Unincorporated San Diego County, SB-9 helps homeowners establish two residential units on existing single-family lots, which can include urban lot splits. This law streamlines the approval process for eligible housing initiatives, tackling the housing shortage and promoting higher-density development. It also allows the addition of more units, provided that all minimum lot size and zoning regulations are met.

What can homeowners build under SB-9 in Unincorporated San Diego County?

Urban Lot Split options under SB-9

An urban lot split involves dividing a single property into two separate lots, applicable to areas designated for single-family housing.

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 consists of primary residential units on a single-family lot. If there is an existing primary residence, homeowners have the option to build an additional primary unit on the same property.

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?

California's SB-9 does not set maximum size restrictions for the newly constructed units.

An urban lot split allows for the construction of two units on one lot, which can also feature ADUs and JADUs.

What are the setbacks?

Setback requirements allow for up to 4 feet from the side and rear boundaries of the lot.

What is the parking requirement under SB-9?

In Unincorporated San Diego County, each unit should have at least one off-street parking space, unless the property is within half a mile of a high-quality transit corridor, a major transit stop, or one block of a car-share location.

What are the lot constraints under SB-9?

Each new lot should be at least 1,200 square feet and should either be equal in area or no smaller than 40% of the original parcel's size.

Multiple subdivisions of the same lot are prohibited, and a subdivision cannot happen if the owner or their associates have previously subdivided a neighboring lot under SB-9.

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?

To qualify for SB-9, the property should be in an urbanized area or urban cluster, and within a single-family residential zone with a "B," "C," or "D" building type.

Can you disregard the environmental restrictions on the lot?

No, the property is ineligible for SB-9 if it contains or is within any of the following areas: wetlands, prime farmland, hazardous waste sites, lands designated for conservation under a natural community conservation plan, habitats for protected species, or lands subject to a conservation easement.

Can you bypass the Historical Preservation limitations?

No, a property cannot qualify for SB-9 if any part of it is located within or includes a historic district, is listed on the California Historical Resources inventory, or is designated as a historic property or landmark.

Is it allowed to demolish an affordable unit?

No, the proposed project cannot lead to the demolition or modification of housing designated as affordable for individuals or families with moderate, low, or very low incomes.

Is it allowed to build in High-Risk Areas?

No, a property is not allowed for SB-9 if it is within or includes any of the following: a high or very high fire severity zone, a 100-year flood zone, a floodway, or an identified earthquake fault zone.

What are the limitations after completing a project using SB-9?

Does the homeowner need to reside on the property?

Yes, the homeowner is required to submit an affidavit confirming their intent to reside in one of the housing units as their main home for at least 3 years. This requirement does not apply if the applicant is a community land trust or a qualified nonprofit organization.

What are the rental regulations?

Units can only be rented out for a minimum period of 31 days.

Are existing tenants’ rights protected?

Yes, tenant rights are protected. The subdivision proposal should not involve the demolition or alteration of specific housing types, such as rent-controlled units, properties that have had tenants in the last 3 years, or those from which the owner has removed rental accommodations within the past 15 years.

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

SB-684 is a newer legislation designed to streamline the development process for as many as 10 units on urban properties less than 5 acres. In contrast to SB-9, which pertains specifically to single-family homes, SB-684 applies to multi-family zoned properties or vacant single-family lots. Furthermore, SB-684 does not impose the ownership restrictions found in SB-9 following 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 receive ministerial approval, which streamlines the housing development process by providing straightforward and uniform guidelines. This method relies on specific criteria rather than subjective judgment, minimizing bureaucratic hold-ups. Therefore, projects can obtain permits without undergoing extensive CEQA assessments or public hearings. However, the approval process for a lot split might still take as long as 1.5 years.

What are objective standards?

"Objective standards", "zoning, subdivision", and "design review standards", are designed to remove personal biases from the approval process. They consist of clear, measurable criteria that both developers and officials can use during project evaluations, ensuring consistency and reliability.

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

SB-9 permits waivers for specific standards, including:

• Setback rules from existing structures that restrict building two units.
• Setback requirements that exceed four feet from the side and rear property lines, limiting the ability to construct two units.

What are the steps to get the permits?

To obtain permits under SB-9 in Unincorporated San Diego County, follow these steps:

1. Begin by applying for an SB-9 Tentative Parcel Map (SB-9 TPM) to initiate the subdivision of the property into two lots.

2. The staff will evaluate the submitted documents, plans, and forms, and may request revisions. This process involves analyzing the proposed project against relevant regulations.

3. After the SB-9 TPM application is approved, any required conditions must be met. The Parcel Map must also receive approval from the Department of Public Works and be filed with the County Recorder's Office.

Keep in mind that the necessary permits and processing times may vary based on the specifics and complexity of the project, as well as the completeness of the submitted documents.

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: 9 to 15 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?

In this analysis, we will take a look at two scenarios to evaluate expected expenses, property assessments, 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, the objective is to construct a three-story duplex totaling 4,000 square feet, along with a 1,000-square-foot ADU. The anticipated overall expense for building, permits, and professional services (excluding land costs) is $1,827,111. The expected market value for the finished property in Unincorporated San Diego County is approximately $2,855,000, generating a return on investment (ROI) of about [($2,855,000 - $1,827,111) / $1,827,111] * 100 = 56%.

Scenario 2

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

For this scenario, the project involves splitting the lot to develop two separate three-story duplexes, each measuring 4,000 square feet. The total estimated cost, not counting land acquisition, is $2,685,346. The anticipated market value for both duplexes in Unincorporated San Diego County is $4,568,000, resulting in an ROI of 70%.

Conclusion:

Pursuing SB-9 projects in Unincorporated San Diego County offers considerable economic opportunities, making the area an attractive option for real estate projects.

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

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