City of San Fernando
All you need to know about building on properties in San Fernando City under SB-9
Using SB-9 for property development in San Fernando City offers homeowners an opportunity to reduce a substantial part of their mortgage. With additional funds, you could expand your property with extra units for rental income or to accommodate family, all while maintaining your primary residence. To effectively execute an SB-9 project, first, verify your property's eligibility, understand the applicable regulations, and select the SB-9 strategy that provides the greatest financial advantage for your San Fernando City property.
What is SB-9 and how does it apply to the properties in San Fernando City?
What is SB-9?
SB-9, or Senate Bill 9, intends to expedite the authorization process for certain housing developments in California. It directs local officials to streamline the approval of these projects through a specialized pathway, bypassing the requirement for thorough environmental assessments (CEQA), Conditional Use Authorization, or similar discretionary approvals from bodies like the Planning Commission or Historic Preservation Commission. Participation in this initiative is voluntary and depends on meeting specific qualifications.
How does SB-9 apply to properties in San Fernando?
SB-9 impacts properties in San Fernando by allowing the subdivision of single-family residential lots into two lots, known as "urban lot splits," and allowing each lot to be developed with two single-family homes. The ability to subdivide lots and develop more homes can increase the overall value of properties, contributing to the development of diverse housing options.
What can homeowners build under SB-9 or San Fernando’s HOME Act?
Urban Lot Split under SB-9
An urban lot split refers to the division of a single-family residential parcel into no more than two lots.
Under this option, you could have the following unit configurations:
Not sure if your property is located in a Single-family zoned area?
Two-Unit Development under SB-9
A two-unit development refers to a housing project consisting of two residential units located on a lot designated for a single-family residential zone.
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?
Under San Fernando City’s SB 9, while the new units are limited to a maximum of 800 square feet each, there is no specific size restriction for units as per California state regulations.
An urban lot split allows the creation of two units on a single property, which may also include ADUs and JADUs.
What are the setbacks?
For side and rear setbacks, there should be a minimum of 4 feet from all side and rear lot lines. The front setback follows the R-1 Zone rules in the Zoning Code.
For rear lots created by an urban lot split, the front setback is 10 feet.
If a unit is built within the footprint of an existing structure, no setbacks are required.
What is the parking requirement under SB-9?
Under SB-9, cities can require one parking space for each unit if the property is not within half a mile of a high-quality transit corridor or major transit stop, or not within one block of a car-sharing facility. However, most residential properties in San Fernando are close enough to these transit options, so extra parking is not required.
What are the lot constraints under SB-9?
For urban lot splits, each new lot needs to be at least 1,200 square feet. The two new lots should be similar in size, between 48% and 52% of the original lot's area.
Creating flag lots is not allowed, and the width of any new lot from an urban lot split has to be at least 75% of the original lot's width.
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 within Single-Family Residential (R-1) zones.
Can you disregard the environmental restrictions on the lot?
No, the property cannot be on prime farmland, in a wetland, or under a conservation easement.
While mature trees need to stay intact, some other trees might be removed if they are replaced. Plans from a landscape architect featuring drought-tolerant plants are required.
Every dwelling unit, including ADUs, needs a designated area for trash cart storage that is not visible from the public street.
Can you bypass the Historical Preservation limitations?
No, the SB-9 project cannot be in a historic district or on property listed in the State Historic Resources Inventory.
It also needs to avoid areas identified as city or county landmarks or historic properties according to local guidelines.
Is it allowed to demolish an affordable unit?
No, the new development does not require the demolition or alteration of affordable housing.
Is it allowed to build in High-Risk Areas?
No, the property is not allowed in a high or very high fire severity zone, a flood area or floodway, or near an earthquake fault zone, along with other conditions.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes, those applying for urban lot splits need to sign a statement confirming their plan to live in one of the housing units as their main residence for at least 3 years from the approval date of the urban lot splits.
What are the rental regulations?
San Fernando City’s SB-9 may limit the use of the lots to residential purposes, and rental agreements typically have a minimum term of 30 days.
Are existing tenants’ rights protected?
Yes, existing tenants' rights are protected. The rules ensure there is no requirement to demolish or change local rent-controlled housing. They also protect homes occupied by a tenant within the last 3 years.
Can condominiums be proposed as part of my Urban Lot Split application?
No, condominium airspace divisions and common interest developments are not allowed in the urban lot split application.
What is the difference between SB-9 and SB-684?
SB-684, a more recent law, allows a more efficient process for building up to 10 housing units on urban lots smaller than 5 acres. Unlike SB-9, which focuses on single-family properties, SB-684 applies to multi-family areas and vacant lots in single-family neighborhoods. Moreover, SB-684 does not impose the same ownership restrictions that are part of 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, projects under SB-9 can qualify for ministerial approval, which simplifies the housing development process by utilizing clear regulations. This approach minimizes bureaucratic obstacles, enabling permits to be granted without extensive environmental assessments (CEQA) or the need for public hearings. However, despite this quicker process, securing approval for a lot split could still take as long as 1.5 years.
What are objective standards?
"Objective zoning standards," "objective subdivision standards," and "objective design review standards" are clear criteria used in the development process to avoid personal judgments by officials. These standards are based on external measures that developers and officials can access before submitting their proposals. This consistency provides homeowners with reliable guidelines for assessing their projects.
For instance, when splitting a lot, a maximum of 2 units can be placed on the resulting property, and these units need to follow the city’s SB-9 standards.
What types of objective standards qualify for a waiver under SB-9?
SB-9 permits waivers for specific standards, such as:
- Setback regulations for existing structures that hinder the construction of two units.
- Setback requirements that are greater than 4 feet from side and rear property lines, restricting the ability to build two units.
What are the steps to get the permits?
The process to get permits under Senate Bill 9 involves several key steps:
1. Understanding SB-9: Learn about SB-9, which allows for splitting and developing two residential units per lot under certain conditions.
2. Determining Eligibility: Check if the property meets the criteria in SB-9 for urban lot splits or housing development, focusing on zoning, location, lot size, and environmental factors.
3. Ministerial Approval: If the project meets all conditions, it can qualify for ministerial approval, which means it can be approved without needing a lengthy review or public hearings.
4. Adverse Impact Findings: Be aware that a housing project might be denied if it is found to negatively affect public health, safety, or the environment in a way that can't be easily fixed.
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 scenario, we propose developing 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 expense for this project, including construction, permits, and professional fees (excluding land costs), amounts to $2,173,161. The anticipated market value of the completed property in San Fernando is around $2,970,000, resulting in a return on investment (ROI) of [($2,970,000 - $2,173,161)/$2,173,161]*100 = 37%
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
For this option, we recommend splitting a lot and constructing two distinct three-story duplexes, each with a total area of 4,000 square feet. The estimated total cost for this development, not including land costs, is $3,476,408. The projected market value for these duplexes in San Fernando is $4,752,000, leading to an ROI of 37%.
Conclusion:
SB-9 developments in San Fernando City may result in a return on investment (ROI) of less than 50%. To reduce this risk, consider implementing additional financial strategies or acquiring land at a significantly reduced cost.
See how much it will cost you to improve your property per SB-9
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