City of Santee
All You Need to Know About Building on Properties in Santee Under SB-9
Using SB-9 for property developments in Santee provides homeowners with an excellent opportunity to secure funds for reducing a substantial portion of their mortgage. Additionally, if you can build extra units, it can offer rental income or provide housing for extended family members while maintaining your primary residence. To achieve success with an SB-9 project, it is necessary to familiarize yourself with eligibility criteria, understand the impact of regulations on your property, and determine which SB-9 option is financially advantageous for properties in Santee.
What is SB-9 and how does it apply to the properties in Santee City?
What is SB-9?
SB-9, or Senate Bill 9, addresses California's housing shortage by simplifying the approval process for certain development projects in areas zoned for single-family homes. It streamlines approvals by eliminating the need for detailed reviews, environmental assessments (CEQA), and public hearings for qualifying projects. Under SB-9, eligible actions include developing up to two residential units on a single lot or splitting a lot into two separate parcels.
How does SB-9 apply to properties in Santee?
In Santee, SB-9 allows for specific two-lot subdivisions known as urban lot splits. It also allows the development of up to two residential units on each lot, referred to as a two-unit project. To qualify, properties need to be located in a single-family residential zone and meet the requirements outlined in the Santee Municipal Code (SMC) for two-unit projects and urban lot splits.
What can homeowners build under SB-9 or Santee’s HOME Act?
Urban Lot Splits under SB-9
It is the process of dividing an already legally subdivided 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 Projects under SB-9
A two-unit project refers to building two main living units. If there is already one main living unit on the lot, this includes adding a second one on a legally divided 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?
Santee under SB-9 allows the construction of two units, each with a minimum size of 800 square feet. However, California State SB-9 does not set specific size limits for new units.
Each primary dwelling unit may have either one ADU or one JADU or both.
What are the setbacks?
For existing structures, there is no setback required for a legally established structure already on the property. This rule also applies if a new structure is built in the same location and matches the dimensions of an existing legal structure.
If the above rules do not apply to the new structure, a minimum of four feet of side and rear setbacks are required.
What is the parking requirement under SB-9?
Under SB-9, each new dwelling unit built after an urban lot split needs at least one off-street parking space, either covered or uncovered unless specific exemptions apply. Exemptions include lots within a half-mile walk of a bus route with service every 15 minutes during peak hours, a rail or bus rapid transit station, or the junction of two or more major bus routes with similar service frequency. Additionally, if the site is within one block of a car-share location, it qualifies for exemptions.
What are the lot constraints under SB-9?
For a lot split, the lot needs a minimum area of 2,400 square feet. After the split, each resulting lot should be at least 1,200 square feet. Additionally, each lot should occupy between 40% and 60% of the original lot area.
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 in various zoning districts, including HL, R-1, R-1A, and R-2
Can you disregard the environmental restrictions on the lot?
No. Under Santee's SB-9, the lot cannot be in or include areas such as prime farmland, wetlands, or hazardous waste sites unless the site has been cleared for residential or mixed use. Lands in conservation plans, habitats for protected species, or lands under conservation easements. Following these regulations is essential for responsible development and reducing environmental impact.
Can you bypass the Historical Preservation limitations?
No. Lots located in or containing historic districts or properties are excluded from SB-9 to protect their historical significance and integrity. These areas often have cultural, architectural, or historical value that communities aim to preserve.
Is it allowed to demolish an affordable unit?
No. Demolishing or changing affordable housing units is not allowed. This includes housing designated for moderate, low, or very low-income households, as well as units under rent control.
Is it allowed to build in High-Risk Areas?
Yes, but with conditions. The lot cannot be in areas such as:
- Very high fire severity zones, unless fire-hazard mitigation measures and special fire protection requirements are in place.
- Earthquake fault zones, unless the development meets relevant seismic building code standards.
- 100-year flood-hazard areas, unless certain FEMA requirements are met.
- Floodways, unless certain FEMA requirements are met.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes. According to Santee's SB-9 guidelines, homeowners who want to split the lot should live on the property as their main residence for at least 3 years. This rule requires verification through a signed affidavit during the application process.
What are the rental regulations?
Any unit created needs to be rented for more than 30 days.
Are existing tenants’ rights protected?
Yes. Projects cannot involve demolishing or changing housing or lots that had housing withdrawn from rental under the Ellis Act in the 15 years before applying. This protection also covers housing occupied by a tenant in the last three years.
Can condominiums be proposed as part of my Urban Lot Split application?
No. SB-9 allows homeowners to split a single-family lot into two and construct up to two units on each, resulting in a total of four units.
Condominiums have a different ownership structure that includes shared ownership of land and buildings along with individual unit ownership. Creating condominiums requires standard procedures like filing fees, environmental assessments, public hearings, and appeal periods, unlike the streamlined process for SB-9 Urban Lot Splits.
What is the difference between SB-9 and SB-684?
SB-684 is a newer regulation than SB-9 that allows for the development of up to 10 units on urban lots that are less than 5 acres. In contrast to SB-9, which primarily targets single-family residences, SB-684 applies to properties in multi-family zones as well as vacant lots in single-family areas. Also, SB-684 does not have the ownership limitations that SB-9 enforces 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, projects under SB-9 can receive ministerial approval, which simplifies the housing development process by establishing clear and consistent guidelines. Unlike subjective methods, this approval relies on set criteria, reducing bureaucratic delays. This approach allows projects to obtain permits without extensive CEQA evaluations or public hearings. However, even with this faster process, securing 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” refer to clear criteria that do not rely on personal opinions from public officials. These standards are based on external, verifiable benchmarks and are easy for both developers and city officials to understand before submitting a project.
What types of objective standards qualify for a waiver under SB-9?
Objective standards eligible for waivers under SB-9 include:
- Zoning and Design: Local agencies can set objective zoning, subdivision, and design review standards that allow for units smaller than 800 square feet.
- Setbacks and Parking: Setback and parking requirements may vary depending on the specific project situation.
What are the steps to get the permits?
1. Review Local Regulations: Get to know the specific rules and regulations from the Santee City government related to SB-9 and housing development.
2. Prepare Documentation: Collect all necessary documents, such as property surveys and legal descriptions, needed for the permit application.
3. Submit Application: Fill out and submit the permit application to the planning department in Santee City. Make sure all required documents and fees are included.
4. Review Process: City officials will review the application to ensure it meets SB-9 regulations and local rules. This includes checking zoning, setbacks, and other criteria.
5. Approval: If the application meets all criteria and passes the review, approval will be granted for the SB-9 project. This approval may include specific conditions that need to be followed during construction.
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: 9 to 15 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 suggest constructing a 4,000-square-foot, three-story duplex with an additional 1,000-square-foot Accessory Dwelling Unit (ADU). The total estimated cost for this project, including construction, permits, and professional fees (excluding land acquisition), is $1,827,901. In the City of Santee, the finished property's market value is projected to be around $2,420,000. Consequently, the Return on Investment (ROI) for this SB-9 project is calculated as [($2,420,000 - $1,827,901)/$1,827,901]*100 = 32%
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
In the second scenario, we plan to subdivide a lot and build two new 4,000-square-foot, three-story duplexes. The projected investment for this development is $2,953,715, not including any land acquisition costs.
In Santee City, the estimated market value for this project is $3,872,000, resulting in an ROI of 31%.
Conclusion:
SB-9 projects in the City of Santee provide modest returns on investment, making it a relatively conservative choice for real estate development, whether through lot splitting or new construction.
See how much it will cost you to improve your property per SB-9
Related Articles
ADU Solutions for Aging in Place in Santee
Everything You Need to Know About SB-684 Development in Santee
How to get your permits fast or the benefits of using SB-423 in Santee
How to Make My ADU a Profitable Investment in Santee?