City of Sierra Madre
All You Need to Know About Building on Properties in Sierra Madre Under SB-9
Using SB-9 for real estate projects in Sierra Madre 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 Sierra Madre City.
What is SB-9 and how does it apply to the properties in Sierra Madre City?
What is SB-9?
SB-9, also known as the California Housing Opportunity and More Efficiency Act (HOME Act), aims to simplify the approval process for certain housing projects throughout California. It requires local authorities to accelerate project approvals without the need for extensive environmental studies (CEQA), Conditional Use Permits, or endorsements from bodies like the Planning Commission or Historic Preservation Commission. Involvement in this program is voluntary and dependent on meeting specified requirements.
How does SB-9 apply to properties in Sierra Madre?
SB-9 influences properties in Sierra Madre by simplifying the creation of housing units. It allows homeowners to divide single-family lots into two, which could enhance the availability of housing options. This adjustment may help alleviate housing shortages and provide opportunities for property owners or developers to boost property values.
What can homeowners build under SB-9 or Sierra Madre’s HOME Act?
Urban Lot Split under SB-9
An urban lot split allows a homeowner to divide a single lot into two within a single-family residential zone.
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 Development under SB-9
A two-unit development means adding two separate housing units on a single lot that was 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 Sierra Madre, the minimum floor area required for the new units is 800 square feet. However, California's SB-9 grants flexibility regarding the size of the unit without imposing any specific restrictions.
A maximum of two units is allowed on each newly created lot. These lots may contain either a single-family home or a duplex, and the units can consist of both ADUs and JADUs.
What are the setbacks?
Setbacks for new buildings are as follows: side and rear setbacks are at least 4 feet from the lot line. If building on the same footprint as an existing structure, no additional setbacks are needed.
What is the parking requirement under SB-9?
For each new unit, one off-street parking space is required, measuring at least 10 feet wide, 8 feet high, and 20 feet deep. However, no parking is required if the unit is within half a mile of public transit or near a car-share location.
What are the lot constraints under SB-9?
When splitting a lot, both new parcels need to be roughly equal, with neither being smaller than 40% of the original lot. Each parcel also needs to be at least 1,200 square feet. Additionally, the lot cannot have been split before, and it cannot be adjacent to another property that the applicant or a related party previously 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?
Properties eligible for SB-9 are in single-family residential zones, such as the R-1 One-Family Residential Zone, the R-C Residential Canyon Zone, and the H Hillside Management Zone.
Can you disregard the environmental restrictions on the lot?
No, environmental rules are strictly followed. SB-9 prevents construction on certain lands like prime farmland, wetlands, hazardous waste sites cleared for housing, protected species habitats, areas in conservation plans, and lands with conservation easements. These protections secure environmentally sensitive areas from harmful development.
Can you bypass the Historical Preservation limitations?
No. Parcels located in a historic district, listed on the State Historic Resources Inventory, or designated as local landmarks cannot bypass Historical Preservation rules.
Is it allowed to demolish an affordable unit?
No. You cannot demolish or alter housing units that are intended for moderate, low, or very low-income families under regulations or agreements.
Is it allowed to build in High-Risk Areas?
Maybe. Construction in high-risk areas may be allowed under strict conditions. For example, you cannot build in very high fire hazard zones, or active earthquake fault zones unless the structures follow seismic safety standards. Building in flood-prone areas requires meeting FEMA standards or having a Letter of Map Revision. Additionally, construction in regulatory floodways needs a no-rise certification to ensure safety.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes, the homeowner is required to live on the property. They need to occupy one of the housing units on the subdivided lots as their primary residence for at least 3 years after the urban lot split is approved.
What are the rental regulations?
The new units under SB-9 cannot be rented out as short-term rentals. They have to be rented for at least 30 days or longer.
Are existing tenants’ rights protected?
Yes, tenants' rights are protected. The regulations prevent demolishing or altering housing that is under rent control, has been taken off the rental market in the past 15 years, or has had tenants living there in the last 7 years.
What is the difference between SB-9 and SB-684?
SB-684, a newer regulation, promotes the development of as many as 10 units on urban properties less than 5 acres in size. Unlike SB-9, which mainly focuses on single-family residences, SB-684 pertains to multi-family zones and vacant lots in areas with single-family homes. It also does not include the ownership limitations found in SB-9's development guidelines.
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 receive ministerial approval, which streamlines the development process through straightforward criteria. This method reduces bureaucratic challenges, enabling faster approvals without the need for extensive environmental reviews (CEQA) or public hearings. However, even with this expedited process, securing approval for a lot split could still take up to 1.5 years.
What are objective standards?
“Objective zoning standards," “subdivision standards," and “design review standards” are clear guidelines that remove subjective opinions from officials. These standards are based on measurable and consistent criteria that both developers and officials can easily reference. This creates a more predictable and reliable process for approving projects.
What types of objective standards qualify for a waiver under SB-9?
Under SB-9, certain design standards can qualify for a waiver if they hinder the construction of two units or prevent either unit from being a minimum of 800 square feet.
What are the steps to get the permits?
To get permits in Sierra Madre, follow these steps:
1. Pre-Development Review
Meet with the planning department staff to discuss the process and pay any required fees.
2. Application Submission
Submit your home lot development application, including the preliminary design review, drawings, and any related fees.
3. Application Review
The planning director will review everything to make sure it meets local standards and regulations.
4. Approval Conditions
Once the permit is issued, you will need to follow specific conditions, such as rental rules and mitigation measures.
5. Appeal
If there are any issues with the decision, it can be appealed to the planning commission within 14 days.
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, plus a 1,000-square-foot Accessory Dwelling Unit (ADU). The estimated overall cost, including construction, permits, and professional services (excluding land), is $2,187,322. The projected market value of the completed property in Sierra Madre is approximately $4,750,000, resulting in a return on investment (ROI) of [($4,750,000 - $2,187,322) / $2,187,322] * 100 = 117%.
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 individual three-story duplexes, each with a total area of 4,000 square feet. The estimated cost, excluding land, is $3,488,043. The expected market value for these duplexes in Sierra Madre is $7,600,000, leading to an ROI of 118%.
Conclusion:
SB-9 projects in Sierra Madre show a significant return on investment, suggesting that real estate development in this area is highly advantageous.
See how much it will cost you to improve your property per SB-9
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