What is SB-9 and how does it apply to the properties in San Gabriel City?

What is SB-9?

SB-9, also known as Senate Bill 9, is designed to streamline the approval process for certain housing developments in California. It requires local officials to expedite the endorsement of these projects through a specialized pathway, eliminating the need for lengthy environmental assessments (CEQA), Conditional Use Authorization, or similar discretionary approvals from the Planning Commission or Historic Preservation Commission. Participation in this program is voluntary and contingent upon meeting specific qualifications.

How does SB-9 apply to properties in San Gabriel?

SB-9 allows property owners in San Gabriel to split single-family lots into two and build up to two units on each lot. Subdividing lots and building additional homes can boost property values, promote diverse housing options, and support increased housing density to address shortages.

What can homeowners build under SB-9 or San Gabriel’s HOME Act?

Urban Lot Split under SB-9

An urban lot split allows a single property in an urban area to be divided 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?

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Two-Unit Development under SB-9

A Two-Unit Development is a housing project with up to two residential units in a single-family 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?

San Gabriel City's SB-9 allows the construction of new residential units with a maximum size of 800 square feet each. Meanwhile, California’s SB-9 gives more flexibility by not limiting unit sizes, allowing developers to design larger residential spaces.

An urban lot split allows the development of two units on one property, potentially including both ADUs and JADUs.

What are the setbacks?

San Gabriel’s SB-9 requires setbacks of up to 4 feet from these rear and side property lines. No setback is required if the structure already exists or is built in the same location with the same dimensions as an existing one.

What is the parking requirement under SB-9?

Off-street parking of up to one space per unit can be required unless the property is within half a mile of a high-quality transit corridor or major transit stop. In these cases, no parking requirements apply. Also, if a car-share vehicle is located within one block of the property, the parking requirement can be waived entirely.

What are the lot constraints under SB-9?

SB-9 allows a single property to be divided into two new lots, both of roughly equal size. One of the new lots should be at least 40% of the original size. Additionally, each of the new lots needs to be at least 1,200 square feet.

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?

Can you disregard the environmental restrictions on the lot?

No. Under SB-9 in San Gabriel, properties in environmentally sensitive areas are not exempt. These areas include wetlands, hazardous waste sites unless cleared for residential use, floodways, conservation zones, and habitats for protected species. The goal is to protect these zones from the potential impact of development.

Can you bypass the Historical Preservation limitations?

No. New projects should follow Historical Preservation rules unless it is confirmed the property is not in a historic district or listed on the State Historic Resources Inventory. It also cannot be located on a site designated as a city or county landmark or historic property.

Is it allowed to demolish an affordable unit?

No. SB-9 strictly prohibits the demolition or alteration of housing designated for moderate, low, or very low-income households.

Is it allowed to build on a property in Coastal Zones?

No. Development is not allowed on properties designated as coastal zones, as outlined in Division 20 of the Public Resources Code.

Is it allowed to build in High-Risk Areas?

Possibly, but only if certain rules are followed. Development is restricted in these areas:

• Very high fire hazard severity zones, as designated by the Department of Forestry and Fire Protection.
• Earthquake fault zones, unless compliant with seismic safety standards.
• Special flood hazard areas, unless they meet specific federal guidelines.
• Regulatory floodways, unless a no-rise certification is obtained.

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

Does the homeowner need to reside on the property?

Yes, the homeowner applying for an SB-9 lot split has to sign an affidavit stating they will live in one of the units as their primary residence for at least 3 years from the time the split is approved. Exceptions apply to those involved with community land trusts or certain nonprofits.

What are the rental regulations?

San Gabriel City requires any unit built under SB-9 to be rented for at least 30 days or more.

Are existing tenants’ rights protected?

Yes, tenants’ rights are protected. Any housing occupied by tenants in the last 3 years cannot be demolished or altered. Additionally, the plan restricts demolishing more than 25% of existing exterior walls, helping to maintain tenant stability during development.

Can condominiums be proposed as part of my Urban Lot Split application?

No. SB-9 allows you to split a single-family lot and build up to two units on each lot, but it does not support the building of condominiums. Condominiums involve a different ownership setup and require a more involved process, including fees, environmental reviews, public hearings, and appeals, which isn't part of SB-9’s streamlined approach.

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

SB-684, a newer law, simplifies building up to 10 units on urban lots under 5 acres. Unlike SB-9, which focuses on single-family homes, SB-684 applies to multi-family zones and vacant lots in single-family neighborhoods. It also doesn’t include the same ownership rules that SB-9 requires after 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 be eligible for ministerial approval, which streamlines the development process by following straightforward guidelines. This reduces administrative hurdles, allowing permits to be issued without requiring detailed environmental reviews (CEQA) or public hearings. However, even with this expedited process, getting approval for a lot split may still take up to 1.5 years.

What are objective standards?

"Objective zoning standards," "objective subdivision standards," and "objective design review standards" are clear, predetermined rules designed that eliminate subjective opinions from officials. These standards are based on measurable factors known to both developers and officials before a project is submitted, making it easier for homeowners to understand what’s required and for projects to be reviewed consistently.

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

SB-9 allows waivers for specific standards, including:

• Setback regulations for existing structures that prevent the construction of two units.
• Setback requirements that are more than 4 feet from the side and rear property lines, limit the ability to build two units.

What are the steps to get the permits?

Here is a simplified process to get permits under SB-9:

1. Submit Application: Prepare and submit your development proposal, making sure it follows SB-9 rules and guidelines.

2. Local Review: The city or local agency reviews the application to check if it meets the clear, objective standards required by SB-9.

3. Check Objective Standards: Your project will be compared to zoning, subdivision, and design rules that are measurable and accessible to both you and the local officials.

4. Approval or Denial: If the project meets all the standards, it’s approved, and you can move forward. If not, the permit will be denied.

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 suggest constructing a three-story duplex with a total area of 4,000 square feet, alongside a 1,000-square-foot Accessory Dwelling Unit (ADU). The total estimated expenditure, which includes construction, permits, and professional fees (excluding land costs), amounts to $2,164,050. The expected market value of the finished property in San Gabriel is around $2,500,000, which translates to an 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

In the second scenario, we propose dividing a lot and building two separate three-story duplexes, each with an area of 4,000 square feet. The total projected cost for this development, excluding land acquisition, is $3,474,776. The estimated market value for these duplexes in San Gabriel is $4,000,000, leading to an ROI of 15%.

Conclusion:

Launching SB-9 projects in San Gabriel may result in a return on investment (ROI) of less than 50%. To minimize this risk, it is advisable to implement extra financial measures or secure the land at a significantly reduced cost.

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

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