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All You Need to Know About Building on Properties in Santa Fe Springs Under SB-9
Applying SB-9 for real estate ventures in Santa Fe Springs City is an effective strategy for homeowners to significantly reduce their mortgage debt. With extra capital, you can construct additional units to generate rental income or provide housing for family members while residing in your primary home. To ensure the success of an SB-9 project, start by confirming your property’s eligibility, understanding the relevant regulations, and choosing the SB-9 option that offers the most financial advantages for your property in Santa Fe Springs City.
What is SB-9 and how does it apply to the properties in Santa Fe Springs City?
What is SB-9?
SB-9, or Senate Bill 9, aims to make it easier to approve certain housing projects in California. It directs local authorities to speed up the approval process for these projects without needing extensive environmental reviews (CEQA), Conditional Use Permits, or similar approvals from groups like the Planning Commission or Historic Preservation Commission. Getting involved in this program is voluntary and depends on meeting specific criteria.
How does SB-9 apply to properties in Santa Fe Springs?
SB-9 applies to property owners in Santa Fe Springs by allowing them to split their single-family lots into two, which could increase the housing supply and create opportunities for homeowners or developers to enhance property values. This may help alleviate the housing shortage in the area.
What can homeowners build under SB-9 or Santa Fe Springs’ HOME Act?
Urban Lot Split under SB-9
An urban lot split means dividing a single-family residential 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-Residential Units under SB-9
A two-residential unit refers to the construction of primary residential units on a lot originally designated for single-family use. If there is an existing primary residence, an additional primary unit can be constructed on that same property.
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 SB-9 regulations, each dwelling unit can be up to 800 square feet. However, SB-9 allows for units of various sizes throughout California.
By using lot split, homeowners can choose to construct an additional unit on each lot or add accessory units, which may include an ADU or a JADU.
What are the setbacks?
A setback of at least 4 feet is required from both side and rear lot lines. The setback for the front property line follows the rules for the single-family residential zone.
There is no setback needed for existing structures or new structures built in the same location and size as existing ones.
What is the parking requirement under SB-9?
SB-9 requires each unit to provide at least one off-street parking space. However, this requirement does not apply if the project site is within a half-mile walking distance of a high-quality transit corridor or major transit stop. Additionally, if there is a car-share vehicle available within one block of the project site, off-street parking is not necessary.
What are the lot constraints under SB-9?
SB-9 states that the proposed parcels should have similar lot sizes, with one parcel not being smaller than 40% of the original area. Each newly created parcel should be at least 1,200 square feet. Additionally, the lot should not have been previously created through an 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?
To qualify for SB-9, properties should be located in single-family zoning districts, which typically include designations like R-1 for Single-Family Residential.
Can you disregard the environmental restrictions on the lot?
No, the environmental rules associated with SB-9 are essential for protecting specific areas and habitats. They ensure compliance with conservation designations in approved plans and safeguard habitats for candidate, sensitive, or special-status species, including those protected under the federal Endangered Species Act of 1973. These regulations also apply to lands with conservation easements.
Can you bypass the Historical Preservation limitations?
No, it is not possible to bypass Historical Preservation rules. These rules apply to properties within a historic district or listed on the State Historic Resources Inventory. Properties designated as city landmarks or included in a historic property or district under city ordinance also fall under these regulations.
Is it allowed to demolish an affordable unit?
No, demolishing or changing affordable housing units is not allowed. This includes any housing with a recorded covenant or ordinance that limits rents to affordable levels for individuals and families of moderate, low, or very low income.
Is it allowed to build in High-Risk Areas?
Possibly, buildings in high-risk areas may be allowed under specific conditions, but there are strict regulations. Development cannot occur in:
- Very high fire hazard severity zones, unless the site is excluded by a local agency or has adopted fire hazard mitigation measures.
- Delineated earthquake fault zones unless the development follows applicable seismic protection building codes.
- Special flood hazard areas are prone to flooding from a 1 percent annual chance of flood unless the site meets FEMA requirements or has the necessary revisions or certifications.
- Regulatory floodways unless a no-rise certification has been obtained according to federal regulations.
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 the property. The person applying for an urban lot split has to sign a sworn statement confirming their intention to live in one of the housing units as their main residence for at least 3 years from when the urban lot split is approved. This requirement does not apply to applicants classified as "community land trusts" or "qualified nonprofit corporations."
What are the rental regulations?
The rental regulations state that any unit created from the lot split should be rented for at least 31 days.
Are existing tenants’ rights protected?
Yes, existing tenants' rights are protected by exempting certain types of housing from demolition or alteration. These exemptions include housing subject to any form of rent or price control by the city, properties where owners have exercised withdrawal rights within the last 15 years, and housing occupied by tenants within the past 3 years.
What is the difference between SB-9 and SB-684?
SB-684 is a newer law that simplifies the process for building as many as 10 units on urban properties under 5 acres. Unlike SB-9, which focuses mainly on single-family residences, SB-684 applies to multi-family districts and empty lots in areas composed of single-family homes. Also, it does not impose the same ownership limitations found in SB-9's development requirements.
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 be eligible for ministerial approval, which streamlines the development process by following straightforward criteria. This method reduces bureaucratic hurdles, enabling approvals to be issued without lengthy environmental reviews (CEQA) or public meetings. However, despite this expedited process, securing approval for a lot split might still take up to 1.5 years.
What are objective standards?
“Objective zoning standards," “subdivision standards," and “design review standards” seek to remove subjective judgments from public officials. These criteria rely on clear, external measures that developers and officials can refer to before submission. This ensures consistency and reliability in project evaluations, giving homeowners transparent and predictable guidelines for assessing their proposals.
What types of objective standards qualify for a waiver under SB-9?
SB-9 allows for the waiver of specific standards, including:
- Setback criteria for existing buildings that hinder the establishment of two units.
- Setback limitations of more than 4 feet from the side and rear property boundaries, which impede the ability to build two units.
What are the steps to get the permits?
To get permits for an SB-9 urban lot split, follow these steps:
1. Complete and sign the SB-9 Application Form.
2. Fill out the SB-9 Urban Lot Split Eligibility Checklist and check all items.
3. Prepare a Tentative Parcel Map and provide both digital and physical copies in PDF format.
4. Gather proof of vacancy or owner occupancy for at least 3 years, like property tax records, income tax records, utility bills, or vehicle registration.
5. Obtain a Homeowner’s Association Approval Letter if needed. Check with the owner/applicant for any recorded Covenants, Conditions, and Restrictions (CC&Rs) or HOA rules that may affect the proposed development.
6. Complete and sign the SB-9 Restrictive Covenant and ensure it gets recorded.
7. Provide a copy of the Preliminary Title Report.
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 recommend building a three-story duplex with a total area of 4,000 square feet, plus a 1,000-square-foot Accessory Dwelling Unit (ADU). The estimated total cost, covering construction, permits, and professional services (excluding land acquisition), is $2,141,576. The projected market value of the completed property in Santa Fe Springs is around $2,250,000, leading to a return on investment (ROI) of [($2,250,000 - $2,141,576) / $2,141,576] * 100 = 5%.
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
In this second scenario, we suggest splitting the lot to construct two separate three-story duplexes, each with 4,000 square feet. The estimated total cost, excluding land acquisition, is $3,453,525. The expected market value for these duplexes in Santa Fe Springs is $3,600,000, resulting in an ROI of 4%.
Conclusion:
SB-9 projects in Santa Fe Springs carry a risk of a return on investment (ROI) below 50%. To reduce this risk, consider implementing additional financial safeguards or acquiring the land at a highly favorable price.
See how much it will cost you to improve your property per SB-9
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