City of Solana Beach
All You Need to Know About Building on Properties in Solana Beach Under SB-9
Using SB-9 for property development in Solana Beach can be an effective way for homeowners to secure funds to pay down a significant portion of their mortgage. Additionally, if you have the capital to construct more units, it can provide rental income or offer housing for extended family members while you remain in the primary residence. To ensure a successful SB-9 project, it is essential to understand the eligibility requirements, how the regulations apply to your property, and which SB-9 option makes the most financial sense for properties in Solana Beach.
What is SB-9 and how does it apply to the properties in Solana Beach City?
What is SB-9?
Senate Bill 9, or SB-9, is a legislative effort in California designed to simplify the approval process for specific housing developments. It encourages local governments to speed up approvals by using a simpler administrative procedure. This approach bypasses the need for detailed environmental assessments (CEQA), Conditional Use Authorization, or other discretionary approvals usually handled by groups like the Planning Commission or Historic Preservation Commission.
How does SB-9 apply to properties in Solana Beach?
SB-9 affects Solana Beach properties by streamlining housing development on single-family lots. It allows lot splits, enabling additional housing options, which may help address housing shortages and offer property owners or developers opportunities to enhance property value.
What can homeowners build under SB-9 or Solana Beach’s’ HOME Act?
Urban Lot Split under SB-9
Urban lot split allows homeowners to divide properties designated as single-family residences 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 Residential under SB-9
Two-unit residential under SB-9 refers to building two homes in areas intended for single-family residences.
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 Solana Beach, each unit is required to have a minimum of 800 square feet and no larger than 825 square feet.
However, California State SB-9 also allows units of any size, which overrides the local size restrictions.
Each primary dwelling unit can be constructed with either one ADU or one JADU.
What are the setbacks?
A minimum setback of 4 feet is required from both the rear and side property lines.
What is the parking requirement under SB-9?
Each residential unit in the development needs one off-street parking space. In coastal zones, if a two-unit residential development replaces an existing garage or required parking, new parking spaces should comply with the underlying zone's requirements.
What are the lot constraints under SB-9?
In Solana Beach, each newly created lot should be at least 1,200 square feet. The two new lots should be roughly equal sizes, with neither being smaller than 40% of the original lot area being subdivided.
Additionally, the lot cannot have been created through a previous urban lot split, and neither the owner nor anyone linked to the owner can have subdivided an adjacent lot using an urban lot split before.
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 be eligible for SB-9, properties need to be in residential districts. This includes ER-1, ER-2, LR, or LMR zones, which allow for single-family homes as outlined in the Solana Beach Municipal Code (SBMC).
Can you disregard the environmental restrictions on the lot?
No. In Solana Beach, an SB-9 project has to meet specific criteria for development. It cannot be on prime farmland or land important for agriculture, wetlands, hazardous waste sites, or areas designated for conservation by a natural community conservation plan. It also should not be identified as a habitat for protected species or under a conservation easement. These rules help ensure responsible development and protect sensitive environments.
Can you bypass the Historical Preservation limitations?
No. An SB-9 project cannot be in a historic district or on a property listed in the State Historic Resources Inventory. It also should not be in an area recognized as a city or county landmark or historic property as per local laws. These conditions are important for SB-9 eligibility and maintaining historical preservation.
Is it allowed to demolish an affordable unit?
No. Demolishing or altering affordable housing is not allowed if it involves properties that have agreements or laws limiting rents for low- or very low-income individuals and families.
Is it allowed to build on a property in Coastal Zones?
Yes. For properties in the Coastal Zone, applications for the development need to include a valid Coastal Development Permit from the California Coastal Commission. This step is to ensure compliance with coastal development rules.
Is it allowed to build in High-Risk Areas?
Possibly. However, new SB-9 developments in Solana Beach are restricted in high-risk areas, such as those prone to severe fire, earthquakes, and flooding, unless safety measures are implemented to mitigate these risks.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes. An applicant for an urban lot split needs to provide a statement confirming their plan to live in one of the housing units as their main home for at least 3 years after approval. However, this does not apply to those identified as "community land trusts" or "qualified nonprofit corporations" under the Revenue and Taxation Code.
What are the rental regulations?
Short-term rentals, which are leases of less than 30 days, are not allowed under SB-9.
Are existing tenants’ rights protected?
Yes. Under SB-9, no more than 25 percent of the existing exterior walls can be demolished to create two units unless the single-family home has been empty for the past three years. Additionally, properties that have used the Ellis Act for eviction within the last fifteen years cannot participate in SB-9.
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 build up to two units on each, potentially resulting in four units total.
Condominiums have a different ownership structure that combines ownership of both land and buildings, along with individual ownership of specific units.
Establishing condominiums requires traditional procedures such as filing fees, environmental assessments, public hearings, and appeal periods, unlike the simplified process for SB-9 urban lot splits.
What is the difference between SB-9 and SB-684?
SB-684 is a more recent law than SB-9 that facilitates the construction of up to 10 units on urban lots smaller than 5 acres. Unlike SB-9, which focuses on single-family homes, SB-684 is applicable for properties in multi-family zones or vacant lots in single-family neighborhoods. Additionally, SB-684 does not impose the ownership restrictions found in SB-9 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 obtain ministerial approval, which streamlines the housing development process by setting clear, consistent guidelines. Unlike more subjective approaches, ministerial approval relies on predetermined criteria, minimizing bureaucratic delays. This method allows projects to secure permits without lengthy CEQA assessments or public hearings. However, despite the expedited process, gaining approval for a lot split can still take as long as 1.5 years.
What are objective standards?
“Objective zoning standards”, “objective subdivision standards”, and “objective design review standards” refer to clear, measurable rules used to assess proposed developments. For SB-9, these standards are well-defined and not open to interpretation. They focus on the lot's zoning and aim to ensure fairness and consistency in development.
What types of objective standards qualify for a waiver under SB-9?
A waiver may be considered if applying standards would physically prevent building two units on the new parcels created through an urban lot split or result in units smaller than 800 square feet. However, any waivers or adjustments should be minimal and only enough to allow for two units of at least 800 square feet each.
What are the steps to get the permits?
1. Check if your project meets the SB-9 criteria. Ensure it is in a single-family residential zone. Avoid restricted areas like prime farmland or wetlands. Prevent displacement of tenants or affordable housing.
2. Gather the necessary documents. Complete a Residential Development Worksheet. Prepare project plans and proof of owner occupancy. Include percolation test results and a Coastal Development Permit if needed.
3. Submit your application. Go to the Planning Department and include the fee.
4. Wait for review. The Director of Community Development will review applications. Make sure your application is complete to avoid delays. Understand that denials happen only for specific, serious issues that can't be resolved.
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 alongside a 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 $1,845,248. In Solana Beach, the market value of the completed property is projected to be around $7,000,000. Therefore, the Return on Investment (ROI) for this SB-9 project is calculated as [($7,000,000 - $1,845,248)/$1,845,248]*100 = 280%
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 construct two new 4,000-square-foot, three-story duplexes. The projected investment for this development is $2,963,565, excluding any land acquisition costs.
In Solana Beach, the estimated market value for this project is $11,200,000, resulting in an ROI of 278%.
Conclusion:
SB-9 projects in Solana Beach present strong returns on investment, making it an attractive location for real estate development, whether through lot split or new construction.
See how much it will cost you to improve your property per SB-9
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