City of Signal Hill
All You Need to Know About Building on Properties in Signal Hills Under SB-9
Applying SB-9 for property projects in Signal Hills City provides homeowners a valuable opportunity to secure funds for loan repayment, increase rental income through additional units, or make room for extended family while residing in their primary home. To ensure the success of an SB-9 project, begin by assessing eligibility, comprehending property limitations, and selecting the most financially advantageous SB-9 option for properties in Signal Hills City.
What is SB-9 and how does it apply to the properties in Signal Hills City?
What is SB-9?
Senate Bill 9 (SB-9) simplifies the approval process for certain residential projects in California. It encourages local governments to speed up approvals using a different method, avoiding lengthy environmental reviews (CEQA), Conditional Use Authorizations, or similar approvals from Planning Commission or Historic Preservation Commission. Participation in this program is optional and involves meeting specific criteria.
How does SB-9 apply to properties in Signal Hills?
In Signal Hills, SB-9 makes property development easier, especially in single-family residential areas. It allows homeowners to create more housing units by splitting lots and building two new residential units on each resulting lot. The bill focuses on quick approvals, using ministerial approval instead of discretionary reviews.
What can homeowners build under SB-9 or Signal Hills’ HOME Act?
Urban Lot Split under SB-9
An urban lot split involves dividing an existing single 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 Project under SB-9
A two-unit project involves building two primary residential units or adding a second primary dwelling on a single-family 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?
In Signal Hills, each new primary dwelling can have a total floor area of at least 500 square feet and up to 800 square feet. However, SB-9 in California allows for primary dwellings of any size.
An SB-9 project allows for the development of two units on one lot, which can also contain ADUs and JADUs.
What are the setbacks?
A minimum of four-foot setback is required for each new unit, 20 feet away from the front property lines. Existing structures do not need to meet this setback if new constructions match their size and location.
What is the parking requirement under SB-9?
Each new primary dwelling typically needs at least one off-street parking space. However, this requirement can be waived if:
The lot is within a half-mile walk of:
- A bus corridor with service every 15 minutes or less during peak times, or
- A rail or bus rapid transit station, ferry terminal served by transit, or a major bus intersection with similar service intervals.
What are the lot constraints under SB-9?
In Signal Hills, the lot split needs to be at least 2,400 square feet. Each new lot should be at least 1,200 square feet and should range from 40% to 60% of the original lot size. The lot designated for splitting should not have come from a prior 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?
Properties located in single-family residential zones qualify for SB-9.
Can you disregard the environmental restrictions on the lot?
No, SB-9 requires compliance with the environmental restrictions, which prevent development in certain cases. This includes prime farmland or farmland important at the statewide level, hazardous waste sites approved for residential use, wetlands, conservation areas identified in natural community plans, habitats for protected species, and lands under conservation easements. These rules aim to protect sensitive environmental areas from the negative impacts of development.
Can you bypass the Historical Preservation limitations?
No, in Signal Hills, the lot intended for development cannot be a historic property or located within a historic district listed on the State Historic Resources Inventory. It also cannot be within a site designated as a city or county landmark, historic property, or district, including those designated under SP-11 like the Crescent Heights Historic District Specific Plan.
Is it allowed to demolish an affordable unit?
No, you cannot demolish or alter housing units covered by agreements, ordinances, or regulations that keep rents affordable for moderate, low, or very low-income individuals and families in the proposed housing development.
Is it allowed to build in High-Risk Areas?
Maybe, construction in high-risk areas could be allowed under certain conditions. However, specific rules need to be followed:
a. Projects in designated earthquake fault zones are allowed only if all structures follow the required seismic protection building codes.
b. In areas prone to 100-year floods, construction is allowed if the site has a Letter of Map Revision from FEMA or meets FEMA's minimum floodplain management criteria.
c. Building in a regulatory floodway is allowed if all projects on the site have obtained a no-rise certification.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes, the homeowner needs to sign an affidavit confirming their intention to live in one of the resulting units as their main residence for at least 3 years after the urban lot split is approved.
What are the rental regulations?
Units on the lot cannot be rented for less than 30 days.
Are existing tenants’ rights protected?
Yes, existing tenants' rights are protected in Signal Hills. The project cannot involve demolishing or altering housing subject to rent or price control, housing that was withdrawn from rental under the Ellis Act in the past 15 years, or housing occupied by a tenant in the last 3 years.
Can condominiums be proposed as part of my Urban Lot Split application?
No, condominium airspace divisions and common interest developments are not allowed on lots created through an urban lot split.
What is the difference between SB-9 and SB-684?
SB-684 is a more recent law that encourages the construction of up to 10 units on urban lots that are under 5 acres. In contrast to SB-9, which is primarily centered on single-family homes, SB-684 applies to multi-family zones and undeveloped land in single-family neighborhoods. Also, it does not impose the ownership restrictions present in the development criteria of 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, 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” aim to remove the personal opinions of government officials. These standards rely on clear and consistent measures that developers and officials can reference before submitting proposals. This creates consistency and reliability in project evaluations, providing homeowners with clear and predictable guidelines for assessing their proposals.
What types of objective standards qualify for a waiver under SB-9?
SB-9 allows for waivers of specific regulations that would prevent the building of two units on a property or restrict either unit to a size smaller than 500 square feet.
What are the steps to get the permits?
To obtain permits for SB-9 developments, property owners can follow these five steps:
1. Fill out the application form provided by the city and collect all necessary documents, including architectural plans, environmental assessments, and well-testing reports.
2. Ensure the property complies with the Subdivision Map Act and get a certificate of compliance if needed.
3. Submit the completed application and documents to the correct city department, along with any required fees.
4. Wait for the Director of Community Development to review and approve the application, typically without a discretionary review.
5. After approval, ensure all necessary documents, like deed restrictions and easements, are properly recorded and comply with any additional requirements outlined in the approval.
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
For this scenario, we recommend building a three-story duplex with a combined floor area of 4,000 square feet, along with a 1,000-square-foot Accessory Dwelling Unit (ADU). The estimated total cost, which includes construction, permits, and professional fees (excluding land), is $2,159,798. The anticipated market value of the completed property in Signal Hill is around $3,000,000, leading to a return on investment (ROI) of [($3,000,000 - $2,159,798) / $2,159,798] * 100 = 39%.
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
In this second scenario, we propose splitting the lot to build two separate three-story duplexes, each covering 4,000 square feet. The estimated total cost, not including land acquisition, is $3,466,537. The projected market value for these duplexes in Signal Hill is $4,800,000, resulting in an ROI of 38%.
Conclusion:
SB-9 projects in Signal Hill carry the risk of a return on investment (ROI) falling below 50%. To address this risk, consider additional financial safeguards or securing the land at a significantly reduced cost.
See how much it will cost you to improve your property per SB-9
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