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All You Need to Know About Building on Properties in San Dimas Under SB-9
Using SB-9 for real estate projects in San Dimas City offers homeowners a valuable method to access funds for loan repayment, add rental units, or house extended family members while residing in their main home. To achieve success with SB-9, homeowners need to understand the eligibility requirements, and property regulations, and determine which SB-9 option provides the best financial benefits for their property.
What is SB-9 and how does it apply to the properties in San Dimas City?
What is SB-9?
SB-9, also known as Senate Bill 9, is California legislation designed to simplify the approval process for select housing projects. It orders local governments to expedite these projects through an alternative pathway, bypassing the usual need for extensive environmental reviews and discretionary approvals from bodies like the Planning Commission or Historic Preservation Commission. Participation in SB-9 is voluntary and subject to meeting particular eligibility criteria.
How does SB-9 apply to properties in San Dimas?
SB-9 allows the development of two residential units on single-family lots in San Dimas, including lot splits. It streamlines the approval process for eligible housing projects, helping to increase housing supply and support more dense development, while still following zoning rules and minimum lot size requirements.
What can homeowners build under SB-9 or San Dimas’ HOME Act?
Urban Lot Split under SB-9
Under SB-9, an urban lot split involves dividing one lot into two different lots in an area zoned for single-family residences.
Under this option, you could have the following unit configurations:
Not sure if your property is located in a Single-family zoned area?
Two-Dwelling Units under SB-9
SB-9 allows the construction of two separate housing units on a single lot within a zone designated for single-family homes.
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?
Residential units that are newly built should have a minimum size of 800 square feet. However, California State SB-9 allows for units of any size to be constructed.
An urban lot split allows for the development of two units on a single lot, potentially including ADUs and JADUs as well.
What are the setbacks?
In San Dimas, buildings that match the size and location of existing structures are not subject to setback requirements. However, the city may require setbacks of up to 4 feet from the side and rear property lines.
What is the parking requirement under SB-9?
Each unit is required to have one off-street parking spot according to SB-9. Nonetheless, this condition is waived if the property is located within a half-mile radius of a high-quality transit corridor or major transit stop, or if there is a car-sharing vehicle accessible within one block of the property.
What are the lot constraints under SB-9?
Under SB-9 regulations, each new lot has to be of similar size, with none smaller than 40% of the original lot's area. Additionally, both new lots should be at least 1,200 square feet in size and should not have undergone a prior urban lot split.
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?
In San Dimas, properties eligible for SB-9 are located within R1 zoning districts, which are specifically designated for single-family residential purposes.
Can you bypass the Historical Preservation limitations?
No, you cannot bypass Historical Preservation rules. The property cannot be located in a historic district or listed on the State Historic Resources Inventory. It also should not be designated as a landmark or historic property according to local laws.
Is it allowed to demolish an affordable unit?
No, demolishing an affordable unit is not allowed. SB-9 prohibits the demolition or alteration of housing that is protected by a recorded covenant, ordinance, or law ensuring rents remain affordable for moderate, low, or very low-income families.
Is it allowed to build on a property in Coastal Zones?
Yes, building SB-9 properties is allowed in Coastal Zones, but it has to follow the rules set by the California Coastal Act of 1976. Development in these areas generally requires a coastal development permit, which involves adhering to specific policies and standards to protect coastal resources and reduce environmental impact.
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-site. To move forward with an urban lot split, the owner has to sign a statement confirming their intention to occupy one of the housing units as their main home for at least 3 years from the date the urban lot split is approved.
What are the rental regulations?
Under SB-9, rentals are not allowed to be less than 30 days.
Are existing tenants’ rights protected?
Yes, existing tenants are protected under SB-9. This law helps prevent the demolition or alteration of various housing types, including those that are subject to rent regulations by public authorities and homes occupied by tenants in the past 3 years. Additionally, the site cannot have had rental or lease agreements ended by the owners within the last 15 years. The project also cannot demolish more than 25 percent of the existing exterior walls.
What is the difference between SB-9 and SB-684?
SB-684, a newer law, allows for streamlined development of up to 10 housing units on urban lots under 5 acres. While SB-9 is limited to single-family properties, SB-684 applies to multi-family zones and vacant lots in single-family areas. Additionally, SB-684 lacks the ownership restrictions imposed by SB-9 after construction is complete.
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 ministerial approval, streamlining the housing development process through straightforward regulations. This method cuts down on bureaucratic hurdles, allowing permits to be issued without lengthy environmental impact reviews (CEQA) or public hearings. However, even with this expedited process, approvals for a lot split might still take up to 1.5 years.
What are objective standards?
Objective standards, including "objective zoning standards," "subdivision standards," and "design review standards," are designed to remove personal judgment from decision-making. These standards are based on clear and consistent guidelines that both developers and officials can reference before submitting proposals. This ensures fairness and reliability in how projects are evaluated, giving homeowners clear criteria to follow.
What types of objective standards qualify for a waiver under SB-9?
SB-9 allows waivers for standards that would otherwise prevent the development of two units on a lot or restrict either unit from being at least 800 square feet.
What are the steps to get the permits?
1. Understand Zoning Laws: Start by learning about San Dimas’ zoning rules, especially those related to accessory dwelling units and housing developments.
2. Ensure Compliance: Check that your project meets local requirements, including any rules about rent, demolition, and historical districts.
3. Collect Required Documentation: Gather all the needed documents for your application, like architectural plans, environmental assessments, and financial records.
4. Submit Application: Send your completed application to the relevant local authority for review.
5. Request Extension if Needed: If you need more time, formally ask for an extension from the local agency to stay on track with regulatory timelines.
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 first scenario, we propose constructing a three-story duplex with a total area of 4,000 square feet, complemented by a 1,000-square-foot Accessory Dwelling Unit (ADU). The total estimated expenditure, including construction, permits, and professional fees (excluding land), is $2,164,050. The projected market value for the completed property in San Dimas is approximately $2,500,000, which leads to a return on investment (ROI) of [($2,500,000 - $2,164,050) / $2,164,050] * 100 = 16%.
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
For the second scenario, we suggest dividing the lot to build two individual three-story duplexes, each with an area of 4,000 square feet. The estimated cost, excluding land acquisition, is $3,474,776. The projected market value for these duplexes in San Dimas is $4,000,000, resulting in an ROI of 15%.
Conclusion:
Real estate developments under SB-9 in San Dimas City may result in an ROI of less than 50%. To minimize this risk, implementing extra financial measures or securing land at a significantly lower cost is advisable.
See how much it will cost you to improve your property per SB-9
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