What is SB-9 and how does it apply to the properties in Temple City?

What is SB-9?

SB-9, or Senate Bill 9, aims to streamline the approval process for certain housing developments in California. It helps local officials speed up the approval of these projects through a specific pathway, eliminating the need for lengthy environmental assessments, Conditional Use Authorization, or other discretionary approvals from agencies like the Planning Commission or Historic Preservation Commission. Participation in this program is voluntary and depends on meeting certain criteria.

How does SB-9 apply to properties in Temple?

SB-9 offers a way to increase affordable housing options, particularly in Temple City. As the city considers inclusionary housing ordinances, the limited diversity of affordable housing in these zones can be addressed. Urban lot splits allow for affordable housing to be integrated into single-family neighborhoods, promoting inclusivity and better meeting housing needs.

What can homeowners build under SB-9 or Temple’s HOME Act?

Urban Lot Split under SB-9

An urban lot split is the process of dividing a single lot in an urban area 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?

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Urban Dwelling under SB-9

Urban dwelling units allow for up to two units within a single-family zoning area. These units can consist of either two new homes or one new home built alongside an existing one.

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?

The new units are required to be within the range of 500 to 800 square feet. However, according to California SB-9 regulations, unit size can vary, with no strict limitations.

Each lot allows for the construction of two units, with the option to include ADUs and JADUs.

What are the setbacks?

According to SB-9 guidelines, rear and side setbacks can be a minimum of 4 feet. No extra setbacks are needed for existing structures or for new structures replacing old ones, as long as the new structure is the same size and in the same location as the original.

What is the parking requirement under SB-9?

In Temple City, proposed urban dwellings do not need to provide any onsite parking, which includes garages, carports, or driveway parking. Furthermore, any hardscape that is beyond 8 feet in width and 18 feet in depth is not allowed on a lot with an urban dwelling.

What are the lot constraints under SB-9?

You can only divide one lot into a maximum of two lots. Each new lot should be at least 40% of the original lot's size, with a minimum lot size of 1,200 square feet.

Development Analysis calculates the max size under SB-9 for the highest return.

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Who and which properties are eligible for SB-9 or the HOME Act?

Which zoning designations are eligible for SB-9?

SB-9 is limited to properties in Temple City's R-1, Single-Family zone.

Can you bypass the Historical Preservation limitations?

No, you cannot bypass Historical Preservation limits. Urban dwellings cannot be built in historic districts or on properties listed in the State Historic Resources Inventory. These rules also apply to city or county landmarks and historic properties identified by local laws.

Can you disregard the environmental restrictions on the lot?

Environmental rules cannot be ignored. Temple City’s SB-9 emphasizes the protection of mature trees (those with a trunk diameter of 19 inches or more) and promotes sustainable building practices, like achieving LEED Platinum certification.

While these restrictions may seem challenging, they can be managed. Some tree removal is possible for projects over 800 square feet, but you should follow specific replacement requirements in Section 9-1N-8.

Is it allowed to demolish an affordable unit?

No, you cannot demolish or alter legally restricted affordable housing or units occupied by low or very low-income households.

Is it allowed to build in High-Risk Areas?

Maybe. Building in High-Risk Areas is possible, but there are specific rules to follow. Construction is limited in cases such as very high fire hazard zones. Compliance with seismic protection codes is required in earthquake fault zones, and certain federal criteria should be met in flood hazard areas.

What are the limitations after completing a project using SB-9?

Does the homeowner need to reside on the property?

Yes, the homeowner has to live on the property as their primary home for at least 3 years. This is confirmed by signing an affidavit stating their intention to stay on-site for that time.

What are the rental regulations?

The property cannot be used for short-term rentals or less than 30 days.

Are existing tenants’ rights protected?

Yes. Any housing under rent control or subject to rent regulations cannot be demolished or altered. Also, dwellings occupied by tenants in the last 3 years are protected from demolition or alteration.

If the property has been rented out in the past 3 years, any demolition or changes to the exterior can only affect up to 25 percent of the walls.

What is the difference between SB-9 and SB-684?

SB-684, a more recent law, allows the construction of up to 10 units on urban parcels under 5 acres. Unlike SB-9, which primarily addresses single-family homes, SB-684 applies to multi-family zones and undeveloped lots within single-family neighborhoods. It also lacks the ownership restrictions included in SB-9's development criteria.

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 be eligible for ministerial approval, which simplifies the development process by following predefined guidelines. This approach minimizes administrative barriers, speeding up approvals without requiring detailed environmental reviews (CEQA) or public hearings. Despite this streamlined process, securing approval for a lot split may still take up to 1.5 years.

What are objective standards?

"Objective zoning standards," "objective subdivision standards," and "objective design review standards" are clear benchmarks used in zoning and development processes to avoid subjective judgments by public officials. These standards rely on external, standardized metrics that developers and officials can access before submission. This ensures consistency and reliability in evaluating projects, providing homeowners with clear criteria for assessing their proposals.

Objective Design Standards for Additions and New Construction:

For additions or new buildings, the design should match the architectural style of the main home, including elements like roof pitch, window size, and exterior materials. New constructions have specific requirements for front facade design, entrance style, side and rear details, and the use of quality materials like stone and brick.

What types of objective standards qualify for a waiver under SB-9?

Under SB-9, waivers can be granted for regulations that would hinder the construction of two units on a lot or that would limit either unit's size to less than 500 square feet.

What are the steps to get the permits?

To get permits under SB-9, follow these steps:

1. Review Regulations: Understand SB-9 rules and the City's Zoning Code, focusing on requirements for lot division, unit size, setbacks, height limits, and other details.

2. Prepare Documentation: Collect necessary documents, such as property surveys, site plans, architectural designs, and any other materials needed for the permit application.

3. Submit Application: Fill out and submit the permit application to the City's Planning Division, making sure to include all forms, fees, and supporting documents.

4. Await Review: The Planning Division will check your application for compliance with SB-9 rules and City ordinances, looking at factors like lot dimensions, unit size, setbacks, and design standards.

5. Receive Approval: Once your permit application is approved, obtain the necessary permits to start the project, ensuring you continue to follow regulations throughout the construction process.

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 building a three-story duplex with a combined area of 4,000 square feet, along with a 1,000-square-foot Accessory Dwelling Unit (ADU). The estimated total cost for this project, including construction, permits, and professional fees (excluding land costs), amounts to $2,177,105. The projected market value for this finished property in Temple City is approximately $5,000,000, resulting in a return on investment (ROI) of [($5,000,000 - $2,177,105)/$2,177,105]*100 = 130%

Scenario 2

Lot Split with 2 new 4,000 sq. ft 3-story Duplexes

For this scenario, we recommend splitting a lot to build two separate three-story duplexes, each covering 4,000 square feet. The total estimated cost for this development, excluding land acquisition, is $3,478,398. The expected market value of these duplexes in Temple City is $8,000,000, leading to an ROI of 130%.

Conclusion:

Real estate projects using SB-9 in Temple City can deliver impressive financial returns, positioning the city as a highly favorable and appealing choice for development projects.

See how much it will cost you to improve your property per SB-9

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