City of San Marino
All You Need to Know About Building on Properties in San Marino Under SB-9
Using SB-9 for real estate projects in San Marino City is a great way for homeowners to get cash to pay off part of their loan, add more units for rental income, or accommodate extended families while living in the main house. A successful SB-9 project starts by understanding eligibility, property restrictions, and which SB-9 option makes the most financial sense for properties in San Marino City.
What is SB-9 and how does it apply to the properties in San Marino City?
What is SB-9?
SB-9, or Senate Bill 9, seeks to simplify the approval process for specific housing projects in California. It instructs local authorities to expedite the endorsement of these projects using an alternative approach, avoiding the need for long environmental evaluations (CEQA), Conditional Use Authorization, or similar discretionary reviews from the Planning Commission or Historic Preservation Commission. Participation in this program is voluntary and requires meeting certain criteria.
How does SB-9 apply to properties in San Marino?
SB-9 impacts properties in San Marino by simplifying the development of housing units. It allows property owners to split single-family lots into two, potentially leading to more housing options. This change could help with housing shortages and open opportunities for property owners or developers to increase property value.
What can homeowners build under SB-9 or San Marino’s HOME Act?
Urban Lot Split under SB-9
An urban lot split involves dividing a single-family 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?
Two-Unit Residential under SB-9
A two-unit residential project allows two housing units on a single lot originally zoned for a single-family home.
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 San Marino, the new units can be up to 800 square feet in size. However, California's SB-9 does not impose size restrictions on the units.
Homeowners can create one additional unit per lot by dividing their property, allowing for ADUs or JADUs.
What are the setbacks?
For new dwelling units, a minimum setback of 4 feet is required from the rear and side property lines. If existing structures are being used or if new buildings are the same size and in the same place as existing ones, no setback adjustments are needed.
What is the parking requirement under SB-9?
In San Marino, each unit in development needs a one-car garage, which should be at least 10 feet wide and 20 feet deep. However, if the property is within a half-mile walking distance of a high-quality transit corridor, parking is not necessary.
What are the lot constraints under SB-9?
Under SB-9, each new lot needs to be at least 1,200 square feet. Additionally, both new lots should be roughly equal sizes, with neither being smaller than 40 percent of the original area being subdivided.
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 the R-1 zoning district.
Can you disregard the environmental restrictions on the lot?
No, SB-9 requires the following environmental restrictions, which prohibit development in certain areas. This includes prime farmland, wetlands, hazardous waste sites, conservation lands, habitats for protected species, and lands with conservation easements. These rules aim to protect sensitive environments and habitats from the impact of development.
Can you bypass the Historical Preservation limitations?
No, San Marino’s SB-9 does not allow bypassing Historical Preservation limits. Development is only allowed if the property is outside a designated historic district or not listed on the State Historic Resources Inventory, or if it is not designated as a landmark or historic property by local laws.
Is it allowed to demolish an affordable unit?
No. Demolishing an affordable unit is not allowed. Development cannot involve demolishing or altering housing that is under a recorded agreement or law that keeps rents affordable for people and families with moderate, low, or very low income.
Is it allowed to build in High-Risk Areas?
Possibly. Building in high-risk areas may be allowed under SB-9, but it comes with strict regulations. These include areas identified as fire hazard zones, earthquake fault zones, and flood hazard areas. Following safety standards and regulatory requirements is important to manage risks associated with development in these locations.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes, under SB-9, the homeowner needs to live on the property. As part of the application for an urban lot split, the applicant provides a signed statement confirming their intention to occupy one of the housing units as their primary home for at least 3 years after the subdivision is approved.
What are the rental regulations?
Units built on SB-9 lots can only be rented for more than 30 days.
Are existing tenants’ rights protected?
Yes, SB-9 protects the rights of existing tenants. Development is not allowed if it involves demolishing or changing housing that is subject to rent control or price restrictions from a public entity.
Additionally, housing occupied by a tenant within the last 3 years is also protected. Development is limited to properties where the owner has withdrawn units from rent or lease within 15 years before applying.
What is the difference between SB-9 and SB-684?
SB-684, being a newer regulation, simplifies the process for building as many as 10 units on urban lots that are less than 5 acres. Unlike SB-9, which is focused on single-family homes, SB-684 applies to multi-family zones and vacant lots in areas primarily composed of single-family residences. Also, it does not have the same ownership limitations that are associated with development under SB-9.
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 that fall under SB-9 can be eligible for ministerial approval, which streamlines the development process by following straightforward criteria. This method reduces administrative barriers, permitting the issuance of approvals without in-depth environmental reviews (CEQA) or public hearings. However, even with this expedited route, securing approval for a lot split might still require up to 1.5 years.
What are objective standards?
“Objective zoning standards," “subdivision standards," and “design review standards” are designed to eliminate the subjective judgments of public officials. These standards rely on clear, standardized criteria that both developers and officials can refer to before submitting proposals. This helps ensure consistency and reliability in evaluating projects, giving homeowners clear guidelines for assessing their submissions.
What types of objective standards qualify for a waiver under SB-9?
SB-9 allows for waivers of specific standards, including:
- Setback requirements for existing buildings that prevent the construction of two units.
- Setback rules surpassing 4 feet from the side and rear property lines that limit the ability to build two units.
What are the steps to get the permits?
To obtain permits for SB-9 developments, follow these steps:
1. Submission of Application:
Provide necessary documents, such as a title report and affidavit, and issue required notices.
2. Application Review:
The planning or community development department reviews the application. Incomplete submissions may be returned for more information. If the development meets the criteria, permits can be issued.
3. Recording Requirements:
Record necessary documents, like a covenant, with the relevant office before starting construction.
4. Compliance and Conflicts:
Ensure all regulations are followed. In case of conflicts between local and state laws, the applicable law prevails. Seek guidance if needed.
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 suggest 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 anticipated total expenditure, which covers construction, permits, and professional services (excluding land), is $2,172,422. The projected market value of the finished property in San Marino is approximately $4,500,000, resulting in a return on investment (ROI) of [($4,500,000 - $2,172,422) / $2,172,422] * 100 = 107%.
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
For this second scenario, we recommend dividing the lot to build two distinct three-story duplexes, each with 4,000 square feet. The total estimated cost, not including land acquisition, is $3,474,911. The anticipated market value for these duplexes in San Marino is $7,200,000, resulting in an ROI of 107%.
Conclusion:
SB-9 developments in San Marino generate exceptionally strong returns on investment, positioning the area as a highly appealing and advantageous choice for real estate projects.
See how much it will cost you to improve your property per SB-9
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