City of South Pasadena
All You Need to Know About Building on Properties in South Pasadena Under SB-9
Using SB-9 for real estate projects in South Pasadena City is an effective method for homeowners to secure funds to significantly reduce their mortgage. With additional capital, you can develop more units to generate rental income or accommodate family members while residing in your primary residence. To ensure the success of an SB-9 project, begin by determining if your property meets the eligibility criteria, comprehending the applicable regulations, and selecting the SB-9 option that provides the greatest financial benefit for your property.
What is SB-9 and how does it apply to the properties in South Pasadena City?
What is SB-9?
SB-9, also known as Senate Bill 9, aims to speed up the approval process for certain housing developments in California. It requires local officials to quickly approve these projects through a specific pathway, avoiding the need for detailed environmental assessments (CEQA), Conditional Use Authorization, or similar approvals from groups like the Planning Commission or Historic Preservation Commission. Participating in this program is optional and depends on meeting specific qualifications.
How does SB-9 apply to properties in South Pasadena?
SB-9 applies to properties in South Pasadena by simplifying the process for homeowners to develop additional housing units. Additionally, the regulations ensure that new developments align with the neighborhood's character and infrastructure, promoting affordable housing opportunities for residents.
What can homeowners build under SB-9 or South Pasadena’s HOME Act?
Urban Lot Split under SB-9
An urban lot split is the process of dividing a single lot into two separate lots within an area designated for single-family homes.
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 is a project that includes two residential units on a single lot zoned for single-family homes.
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 Pasadena, each new unit can be a maximum of 800 square feet. However, California state rules do not set a specific size limit.
Each lot allows for the construction of two units, with the option to include ADUs and JADUs.
What are the setbacks?
SB-9 units in South Pasadena need to provide side and rear setbacks limited to 4 feet. If a new unit is built where an existing structure is positioned, no extra setback is needed. All parts of the SB-9 unit, including eave overhangs, should meet these setback guidelines.
What is the parking requirement under SB-9?
Under SB-9, each new unit requires one covered off-street parking space, measuring at least 10 feet wide and 20 feet deep. Existing parking for the main dwelling should be maintained.
However, if the new unit is within half a mile of a high-quality transit corridor or major transit stop, or if a car-share vehicle is available within one block, off-street parking is not needed.
What are the lot constraints under SB-9?
SB-9 allows one existing lot to be split into two new lots, with one of the new parcels needing to be at least 40% of the original lot's size and no new lot smaller than 1,200 square feet.
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 qualify for SB-9, properties should be in residentially zoned areas, specifically RE and RS districts.
Can you disregard the environmental restrictions on the lot?
No. Properties in sensitive areas like wetlands, hazardous waste sites unless approved for residential use, floodways, conservation zones, or habitats for protected species cannot be exempt. This rule is in place to protect important ecological areas from potential harm caused by development.
Can you bypass the Historical Preservation limitations?
No. Historical preservation limitations cannot be bypassed under South Pasadena’s SB-9. Properties in historic districts, listed on the State Historic Resources Inventory or designated as City or County landmarks cannot be subdivided under this legislation. Additionally, as defined by city regulations, lot lines cannot cross or be within 4 feet of historic or contributing structures.
Is it allowed to demolish an affordable unit?
No. Demolition or alteration of affordable housing units with affordability restrictions is not allowed in SB-9 projects. These restrictions may be due to covenants, ordinances, or other legal agreements.
Is it allowed to build in High-Risk Areas?
Possibly. Building in high-risk areas may be possible but comes with strict conditions. This includes areas designated as very high fire hazard zones. Development is also limited in earthquake fault zones unless it meets safety building codes, and in flood hazard areas unless it complies with federal guidelines. For regulatory floodways, a no-rise certification is required.
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 and sign an affidavit stating their intent to reside in one of the primary or SB-9 units for 3 years from the lot split approval. This requirement is waived for community land trusts or qualified nonprofit corporations.
What are the rental regulations?
SB-9 units cannot be rented for less than 30 days and cannot be used as short-term rentals.
Are existing tenants’ rights protected?
Yes, existing tenants' rights are protected. SB-9 prevents actions that could lead to the demolition or alteration of certain types of housing. This includes homes under rent control or those where owners have removed units from rent within 15 years before applying for development. Additionally, housing occupied by tenants in the past 3 years is also protected under these rules.
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, projects under SB-9 can qualify for ministerial approval, which streamlines development through established criteria. This method reduces bureaucratic obstacles, allowing faster approvals without the need for extensive environmental reviews (CEQA) or public hearings. However, even with this expedited process, obtaining approval for a lot split could still take up to 1.5 years.
What are objective standards?
"Objective zoning standards," "objective subdivision standards," and "objective design review standards" remove subjective assessments by public officials. These standards are based on measurable and consistent metrics that developers and officials can access before submitting their projects. This ensures a reliable evaluation process, providing homeowners with clear and predictable guidelines for their proposals.
What types of objective standards qualify for a waiver under SB-9?
SB-9 allows for waiving certain standards, including:
- Setback requirements for existing structures that obstruct the construction of two units.
- Setback rules that are more than 4 feet from the side and rear property lines, limit the ability to build two units.
What are the steps to get the permits?
To get permits for housing development projects under SB-9, developers and homeowners follow several important steps.
1. Submit Application: Start by completing and submitting an application for lot splits and new development based on the standards provided in the relevant division.
2. Review Process: The application will be reviewed to ensure it complies with the applicable regulations.
3. Ministerial Approval: If the application meets the required criteria, permits are approved without needing public hearings or discretionary reviews.
4. Director's Discretion: The Director can deny a proposed housing development under SB 9 if it is determined that it would negatively affect public health, safety, or the physical environment, and there’s no feasible way to address or avoid that impact.
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 propose developing a three-story duplex with a total area of 4,000 square feet, complemented by a 1,000-square-foot Accessory Dwelling Unit (ADU). The total estimated expense for this project, including construction, permits, and professional fees (excluding land costs), amounts to $2,172,422. The anticipated market value of the completed property in South Pasadena is around $4,500,000, resulting in a return on investment (ROI) of [($4,500,000 - $2,172,422)/$2,172,422]*100 = 107%
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
For this option, we recommend splitting a lot and constructing two distinct three-story duplexes, each with a total area of 4,000 square feet. The estimated total cost for this development, not including land costs, is $3,474,911. The projected market value for these duplexes in South Pasadena is $7,200,000, leading to an ROI of 107%.
Conclusion:
SB-9 projects in the City of South Pasadena offer significant returns on investment, making the city a highly attractive and promising location for real estate development endeavors.