City of Vernon
All You Need to Know About Building on Properties in Vernon Under SB-9
In Vernon, SB-9 gives homeowners a chance to increase their property value and ease mortgage costs. By adding extra units, they can bring in rental income or create additional living space for the family without altering their main home. To get the best results, it’s important to confirm the property meets SB-9 requirements, check for any restrictions, and choose the approach that aligns with financial goals.
What is SB-9 and how does it apply to the properties in Vernon?
What is SB-9?
In California, Senate Bill 9 or SB 9 is a law that speeds up the approval process for specific housing projects. It allows local governments to bypass certain environmental reviews (such as CEQA) and avoid additional approvals from agencies like the Planning Commission or Historic Preservation Commission. This change aims to make it easier for homeowners to add housing units or split their property.
How does SB-9 apply to properties in Vernon?
In Vernon, SB-9 offers homeowners the choice to expand their current homes or divide their property into two separate lots for additional housing. As long as local rules and requirements are followed, homeowners can add units or create a second lot.
What can homeowners build under SB-9 or Vernon’s HOME Act?
Urban Lot Split under SB-9
With an urban lot split, a single-family property can be divided into two separate lots, each allowing to build new housing units.
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
Under SB-9, homeowners can add two homes or additional units on a property 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 Vernon, new housing units should be at least 800 square feet, without a maximum size limit under California law.
If the property is split under an urban lot split, homeowners can build up to two main units on the new lots, along with options for smaller structures like ADUs or JADUs.
What are the setbacks?
Vernon requires a minimum setback of 4 feet from the side and rear property lines, though no setback is needed if the new unit closely matches the existing structure’s position and size.
What is the parking requirement under SB-9?
Each new unit should have one off-street parking space unless the property is within half a mile of a major transit stop or close to a car-sharing vehicle.
What are the lot constraints under SB-9?
When dividing a lot, the smaller lot should be at least 40% of the original lot size, with each new lot being at least 1,200 square feet. Properties previously divided under an urban lot split cannot undergo a second 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 eligible for SB-9 are located in single-family zoning districts.
Can you disregard the environmental restrictions on the lot?
No, SB-9 does not disregard environmental protections. Properties in sensitive areas like wetlands, flood zones, conservation lands, hazardous waste sites, or habitats for endangered species cannot be developed under SB-9, as these areas are protected for their ecological importance.
Can you bypass the Historical Preservation limitations?
SB-9 projects should comply with historical preservation laws unless the property is not in a historical district, on the State Historic Resources Inventory, and designated as a local landmark.
Is it allowed to demolish an affordable unit?
No, SB-9 doesn’t allow demolishing or altering homes that are reserved for low- or moderate-income families and have legal protections.
Is it allowed to build on a property in Coastal Zones?
Yes, but SB-9 projects in Coastal Zones should meet the requirements of the California Coastal Act, which typically includes obtaining a coastal development permit and following environmental guidelines.
Is it allowed to build in High-Risk Areas?
Possibly. Building in high-risk areas is generally discouraged, including:
(A) Areas with high fire hazards
(B) Earthquake fault zones
(C) Flood-prone zones (like the 100-year floodplain), with potential exceptions if the property meets specific FEMA standards or National Flood Insurance Program criteria
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes, the homeowner should reside on the property. When requesting a lot split, they should sign an affidavit stating that they will use one of the newly created units as their main home for at least 3 years after the lot is divided.
What are the rental regulations?
Units created under SB-9 are only available for rentals of 30 days or longer.
Are existing tenants’ rights protected?
Yes, tenants’ rights are protected in certain cases to ensure affordable housing is maintained. These protections include:
(1) Homes with rent control or occupied within the last 3 years cannot be demolished or altered.
(2) Properties with evictions in the last 15 years are shielded from certain changes.
(3) New construction projects cannot remove over 25% of the existing building’s exterior walls.
What is the difference between SB-9 and SB-684?
SB-684, a newer law, allows up to 10 housing units to be built on smaller properties under 5 acres. Unlike SB-9, which focuses primarily on single-family homes, SB-684 also applies to multi-family properties and vacant lots in single-family zones. A major advantage of SB-684 is that it doesn’t restrict property ownership once the project is completed.
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 qualify for a streamlined approval process. This means they can be approved based on clear-cut rules, rather than subjective judgments, helping to avoid delays from extended environmental checks or public input. However, finalizing a lot split can still take up to 18 months.
What are objective standards?
"Objective zoning standards," "objective subdivision standards," and "objective design review standards" are straightforward rules that guide property development. They set specific criteria so that both builders and city officials know exactly what’s required, ensuring fair and consistent decisions. This clarity also gives homeowners a clear understanding of what to expect from their projects.
What types of objective standards qualify for a waiver under SB-9?
Under SB-9, certain standards may be waived, such as:
- Setbacks that apply to current structures that would make building two units challenging.
- Side and rear setbacks requiring more than 4 feet, if they would prevent adding a second unit.
What are the steps to get the permits?
To get permits for an SB-9 project in Vernon, here’s what you need to do:
1. Learn the Local Rules
Get familiar with the city's zoning laws and any specific requirements for adding new units or starting a housing project.
2. Confirm Your Project Follows the Guidelines
Make sure your project meets all the necessary rules, including zoning restrictions, demolition limits, and historic preservation regulations.
3. Collect the Necessary Documents
Prepare all required paperwork for your application, whether you're splitting your lot or planning new housing.
4. Submit Your Application
Send your completed application to the local authority for review and approval.
5. Request More Time (if necessary)
If your application is about to expire, ask the responsible agency for an extension.
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 breakdown looks at two possible scenarios to help understand costs, property values, 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, the plan is to build a three-story duplex that totals 4,000 square feet, plus a 1,000-square-foot Accessory Dwelling Unit (ADU). The total cost for construction, permits, and professional services (excluding the cost of the land) is estimated to be $2,152,671. After the property is completed in Vernon, it is expected to be worth around $2,250,000, resulting in an ROI of [($2,250,000 - $2,152,671)/$2,152,671]*100 = 5%
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
In the second scenario, the lot would be divided, and two separate three-story duplexes (each 4,000 sq. ft.) would be built. The total estimated cost for this project, excluding land costs, is $3,457,573. The expected market value for both duplexes in Vernon combined is $3,600,000, providing an ROI of 4%.
Conclusion:
Real estate projects under SB-9 in Vernon City might offer a return on investment (ROI) below 50%. To reduce this risk, it's recommended to explore extra financial strategies or buy land at a much lower price.
See how much it will cost you to improve your property per SB-9
Related Articles
ADU Solutions for Aging in Place in Vernon
Everything You Need to Know About SB-684 Development in Vernon
How to get your permits fast or the benefits of using SB-423 in Vernon
How to Make My ADU a Profitable Investment in Vernon?