City of South El Monte
All You Need to Know About Building on Properties in South El Monte Under SB-9
Using SB-9 for real estate developments in South El Monte City offers homeowners an excellent opportunity to pay down a significant portion of their mortgage. If you have extra funds, you can build more units to earn rental income or create space for family members while still living in your main home. To make sure an SB-9 project is successful, first, check if your property qualifies, understand how the rules apply, and choose the SB-9 option that offers the best financial benefits for your property.
What is SB-9 and how does it apply to the properties in South El Monte City?
What is SB-9?
SB-9, or Senate Bill 9, aims to fast-track the approval process for specific housing developments in California. It requires local officials to quickly approve these projects through a streamlined process, eliminating the need for extensive environmental reviews (CEQA), Conditional Use Authorization, or similar approvals from bodies like the Planning Commission or Historic Preservation Commission. Participation in this program is optional and depends on meeting certain eligibility requirements.
How does SB-9 apply to properties in South El Monte?
In South El Monte, SB-9 allows for faster approvals of housing developments with two residential units or lot splits in single-family residential areas.
What can homeowners build under SB-9 or South El Monte’s HOME Act?
Urban Lot Split under SB-9
An urban lot split involves dividing a 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 Development under SB-9
A two-unit development refers to building two housing units on a single lot that is zoned 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 South El Monte, each new unit is required to be at least 800 square feet, but California State's SB-9 allows units of any size.
Each lot allows the construction of two units on a single lot, with the option to include ADUs and JADUs.
What are the setbacks?
Existing buildings or new constructions that match the size and location of existing units do not have setback requirements. In other cases, the City of South El Monte can enforce setbacks of up to 4 feet from the side and rear lot lines.
What is the parking requirement under SB-9?
South El Monte is required to provide one parking space for each unit. Additionally, parking space can be waived if the property is within half a mile of a "high-quality transit corridor" or a "major transit stop," or if there’s a car-share vehicle within one block.
What are the lot constraints under SB-9?
SB-9 allows for the split of one lot into a maximum of two lots, and each new lot needs to be at least 40 percent of the original size. The smallest new lot can be 1,200 square feet. Additionally, the city does not allow further lot splits on a lot that has already been split once.
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 Single-Family Residential R-1 zoning districts.
Can you bypass the Historical Preservation limitations?
No. It is not possible to bypass Historical Preservation limitations if the development meets the criteria outlined: being located within a historic district, included on the State Historic Resources Inventory, or situated within a site that is legally designated or listed as a city or county landmark or historic property or district.
Is it allowed to demolish an affordable unit?
No, demolishing an affordable unit is not allowed under SB-9. Housing developments under this law cannot involve tearing down or altering housing that has recorded agreements or laws keeping rents affordable for moderate, low, or very low-income individuals and families.
Is it allowed to build on a property in Coastal Zones?
It depends. Building on properties in Coastal Zones is not allowed without following the rules set by the California Coastal Act of 1976. This Act controls development in the coastal zone and requires a coastal development permit process based on coastal resource planning and management policies.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes, every SB-9 applicant needs to provide a statement confirming their plan to live in one of the SB-9 units for at least 3 years.
What are the rental regulations?
Properties created under SB-9 cannot be used for short-term rentals, and any rentals of these units should last longer than 30 days.
Are existing tenants’ rights protected?
Yes, SB-9 protects the rights of existing tenants by preventing the demolition or alteration of housing that is under rent control or occupied by a tenant within the past 3 years. If the property has been rented in the last 3 years, only up to 25 percent of the exterior walls can be demolished.
What is the difference between SB-9 and SB-684?
SB-684 is a newer regulation that encourages the building of as many as 10 units on urban properties smaller than 5 acres. While SB-9 mainly focuses on single-family residences, SB-684 is relevant to multi-family districts and vacant lots within single-family areas. Additionally, it does not enforce the ownership limitations found in the development rules 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 may obtain ministerial approval, which simplifies the development process by using clear criteria. This approach minimizes administrative hurdles, allowing for quicker approvals without requiring lengthy environmental assessments (CEQA) or public meetings. Nevertheless, despite this quicker route, it may still take as long as 1.5 years to secure approval for a lot split.
What are objective standards?
"Objective zoning standards," "objective subdivision standards," and "objective design review standards" are clear, set guidelines used to avoid subjective judgments by officials. These criteria are based on established measures that developers and officials can access before submitting a project. This ensures consistency and reliability in project evaluations, providing property owners with clear and predictable benchmarks for assessing their proposals.
What types of objective standards qualify for a waiver under SB-9?
Under SB-9, certain regulations can be waived if they obstruct the construction of two units on a property or limit the size of either unit to less than 800 square feet.
What are the steps to get the permits?
To get permits under SB-9, follow these steps:
1. Check that your project meets all the rules and criteria outlined in SB-9.
2. Prepare and submit the required documents and application forms to the appropriate city or local authority.
3. Wait for your application to be reviewed and approved, which will be done based on clear guidelines without subjective judgments.
4. Once approved, obtain the necessary permits for your development project.
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 option, we recommend building a three-story duplex with a combined footprint of 4,000 square feet and adding a 1,000-square-foot Accessory Dwelling Unit (ADU). The total projected cost for this development, including all construction, permits, and professional fees (excluding land costs), is $2,177,116. The estimated market value of the completed property in South El Monte is around $2,500,000, leading to a return on investment (ROI) of [($2,500,000 - $2,177,116)/$2,177,116]*100 = 15%
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
In this scenario, we propose dividing a lot to build two distinct three-story duplexes, each with an area of 4,000 square feet. The total estimated expense for this project, not including land acquisition, is $3,492,775. The projected market value for these duplexes in South El Monte is $4,000,000, resulting in an ROI of 15%.
Conclusion:
Pursuing SB-9 projects in South El Monte presents the potential for an ROI below 50%. To address this risk, it's important to implement additional financial strategies or secure the land at a highly advantageous price.
See how much it will cost you to improve your property per SB-9
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