City of Santa Clarita
All You Need to Know About Building on Properties in Santa Clarita Under SB-9
Using SB-9 to enhance property value in Santa Clarita is a great way for homeowners to secure funds to pay off a large part of their loans. Moreover, if you have the means to add more units, it can produce rental income or offer accommodation for extended families while you reside in the main home. For a successful SB-9 project, begin by understanding the eligibility requirements, how the regulations impact your property, and which SB-9 option is financially suitable for your property.
What is SB-9 and how does it apply to the properties in Santa Clarita City?
What is SB-9?
Senate Bill 9 (SB-9) aims to streamline the approval process for certain housing developments in California. It encourages local governments to fast-track the approval of these projects by utilizing an alternative method that bypasses extensive environmental assessments (CEQA) and other discretionary reviews, such as Conditional Use Permits or evaluations by the Planning Commission or Historic Preservation Commission. Involvement in this initiative is optional and contingent on meeting specific criteria.
How does SB-9 apply to properties in Santa Clarita?
In Santa Clarita, SB-9 streamlines the creation of housing units by allowing property owners to divide single-family lots into two. This change can lead to increased housing availability and may provide opportunities for property owners and developers to enhance property values, helping to alleviate housing shortages.
What can homeowners build under SB-9 or Santa Clarita’s HOME Act?
Urban Lot Split under SB-9
Urban lot split allows dwelling units to divide an existing single-family lot into 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 Residential under SB-9
For a two-unit residential development, a property can have up to two primary homes on a single lot.
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?
Each new unit can be up to 800 square feet in size. However, California's SB-9 allows for units of any size.
Through lot split, homeowners have the option to add one more unit per lot or add accessory units which can be either an ADU or a JADU.
What are the setbacks?
SB-9 requires a minimum distance of 4 feet from the rear and side property lines. Also, there should be at least 10 feet of space between each unit and any other structure on the property.
What is the parking requirement under SB-9?
In Santa Clarita, each unit in a two-unit residential development needs to have one fully enclosed parking space, like a garage.
What are the lot constraints under SB-9?
Each lot should be at least 1,200 square feet, and any newly created lot should be a minimum of 40% of the original size. Additionally, every lot requires a 10-foot-wide access road to the public right-of-way. Lots previously divided under SB-9 cannot be subdivided again.
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?
SB-9 applies to properties in single-family residential zones, including NU1, NU2, NU3, NU4, NU5, UR1, and UR2.
Can you disregard the environmental restrictions on the lot?
No. In Santa Clarita, the lot cannot be in areas such as wetlands, hazardous waste sites, floodways, conservation areas, or habitats for protected species. These environmental rules are in place to protect sensitive areas from the impacts of development.
Can you bypass the Historical Preservation limitations?
No. Historical preservation limits cannot be bypassed. If the lot contains a designated historic landmark, is listed in the State Historic Resources Inventory, or is in a designated historic district, development is not allowed.
Is it allowed to demolish an affordable unit?
No. SB-9 prohibits demolishing affordable housing units. This includes any dwelling labeled as affordable, which is under agreements or laws that control rents for moderate, low, or very low-income individuals and families.
Is it allowed to build on a property in Coastal Zones?
SB-9 does not specifically address buildings in coastal areas in Santa Clarita. It is recommended to contact the planning department for guidance, as coastal zones often have stricter building codes than urban areas.
Is it allowed to build in High-Risk Areas?
Possibly. Before building, it is very important to check if the property is in high-risk areas, which include high fire hazard zones, earthquake fault zones, and 100-year flood hazard areas as determined by FEMA. Exceptions may apply if the property meets specific safety measures or has been cleared for residential use by relevant authorities. These rules aim to prioritize safety and reduce risks associated with natural hazards, ensuring compliance with building standards to protect residents and structures.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes, but only for a specific period. Applicants for an urban lot split need to provide a statement confirming their intention to live in one of the housing units as their main residence for at least 3 years from the date of approval.
What are the rental regulations?
Short-term rentals are not allowed, meaning leases of less than 30 days are prohibited.
Are existing tenants’ rights protected?
Yes. SB-9 protects the rights of existing tenants. The law prohibits the demolition or alteration of any housing unit on the site if it has been occupied by tenants within the 3 years before development.
Can condominiums be proposed as part of my Urban Lot Split application?
No, they cannot. SB-9 allows homeowners to split a single-family lot into two, with a maximum of two units on each lot, which could result in four units total. Condominiums have a different ownership structure and require traditional processes, such as filing fees and public hearings, which differ from the streamlined SB-9 Urban Lot Split process.
What is the difference between SB-9 and SB-684?
SB-684 is a more recent law that streamlines the construction of up to 10 units on urban lots smaller than 5 acres. In contrast to SB-9, which is primarily aimed at single-family homes, SB-684 is relevant to multi-family zones and vacant lots within single-family neighborhoods. Additionally, it lacks the ownership restrictions that are part of SB-9's development criteria.
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 may qualify for ministerial approval, simplifying the development process through clear guidelines. This approach lowers administrative limitations, allowing approvals to be granted without extensive environmental assessments (CEQA) or the need for public hearings. Nonetheless, even with this faster option, obtaining approval for a lot split could take as long as 1.5 years.
What are objective standards?
“Objective zoning standards”, “objective subdivision standards”, and “objective design review standards” refer to specific criteria that need to be met for SB-9 project approval, ensuring they align with zoning rules and regulations. Examples of objective standards include minimum parcel sizes, zoning requirements, limitations on where parcels can be located (like avoiding environmentally sensitive areas), and restrictions on demolishing or changing certain housing units.
What types of objective standards qualify for a waiver under SB-9?
Under SB-9, certain standards may be waived, such as:
- Requirements for setbacks related to existing structures that obstruct the development of two units.
- Setback regulations of more than 4 feet from the side and rear property lines restrict the construction of two units.
What are the steps to get the permits?
To obtain permits for an urban lot split or a two-unit residential development, follow these steps:
1. Prepare the Urban Lot Split Map: A registered civil engineer or licensed land surveyor should prepare the urban lot split map. The map needs to meet specific rules and be based on a field survey.
2. Application: The subdivider applies with the Department of Community Development, along with copies of the urban lot split map. An affidavit stating the intention to live in one of the housing units may be required. The application needs to show that it meets zoning provisions and obtains all necessary approvals.
3. Review of Application: The application is reviewed by the Director of Community Development. Incomplete applications will be sent back with details on what’s missing. The Director may deny the application if it poses unmanageable risks to public health, safety, or the environment.
4. Affordable Housing Regulatory Agreement: Before moving in, the City Manager or their designee needs to approve an affordable housing agreement to ensure long-term affordability for the income-restricted unit. This agreement is signed between the City Manager or designee and the applicant.
5. Resolution of Conflicts: If local regulations conflict with state laws, local rules generally take precedence. However, applicable state laws always apply, while other local regulations remain in effect.
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 the first scenario, we propose constructing a 4,000-square-foot, three-story duplex along with a 1,000-square-foot Accessory Dwelling Unit (ADU). The estimated total cost for this development, which includes construction, permits, and professional fees (excluding land costs), is $2,168,872. In Santa Clarita, the anticipated market value of the completed property is around $2,750,000. This results in a Return on Investment (ROI) calculated as [($2,750,000 - $2,168,872)/$2,168,872]*100 = 27%
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
In this second scenario, we plan to subdivide a lot and construct two new 4,000-square-foot, three-story duplexes. The total estimated investment for this project is $3,475,576, not including land acquisition costs.
In Santa Clarita, the estimated market value for these duplexes is $4,400,000, leading to an ROI of 27%.
Conclusion:
SB-9 projects in Santa Clarita come with the potential for a return on investment (ROI) of less than 50%. To reduce this risk, it is essential to implement extra financial precautions or obtain the land at a highly advantageous price.
See how much it will cost you to improve your property per SB-9
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