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

What is SB-9?

Senate Bill 9 (SB-9) is a California law aimed at making the approval process for certain housing projects easier. It prompts local authorities to expedite approvals through a more straightforward administrative method, eliminating the need for comprehensive environmental reviews (CEQA), Conditional Use Permits, or other approvals typically required by bodies like the Planning Commission or Historic Preservation Commission.

How does SB-9 apply to properties in Vista?

In Vista, SB-9 impacts properties by encouraging housing development on single-family lots. It allows lot splits, which can create more housing opportunities, potentially alleviating housing shortages and allowing property owners or developers to increase property value.

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

Urban Lot Split under SB-9

In Vista, the SB-9 regulations allow homeowners to split their property 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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Two-Unit Housing Developments under SB-9

A two-unit housing development refers to a property setup with a maximum of two primary homes on one lot within zones designated for single-family housing.

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?

Under SB-9 in Vista, each new unit should have a minimum floor area of 800 square feet. However, in California State SB-9 there is no maximum size limit specified for the units, so they can be larger if desired.

Each lot allows the construction of two housing units, which may consist of ADUs and JADUs.

What are the setbacks?

The property setbacks are set at a front setback of 20 feet and side and rear setbacks of 4 feet each.

What is the parking requirement under SB-9?

SB-9 requires one off-street parking space for each primary dwelling unit. Each parking space should be at least 9 feet wide and 19 feet deep, on a paved or all-weather surface. No parking is necessary if the parcel is within a half-mile walk of public transportation or one block of a car-share vehicle.

What are the lot constraints under SB-9?

Property owners can split their property into two separate lots, with each lot requiring to be at least 1,200 square feet. After splitting, they can build a two-resident duplex on each half of the divided lot.

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 applies to properties in single-family residential zones. These properties need to meet specific eligibility criteria outlined in the zoning standards.

Can you disregard the environmental restrictions on the lot?

No. According to Santee's SB-9, the lot cannot be located in or cover any of the following areas:

• Farmland: The property should not be on prime farmland or farmland of statewide importance, as defined by the USDA. This includes areas marked on maps by the Farmland Mapping and Monitoring Program or land zoned for agricultural protection by local voters.
• Wetlands: The property should not be on wetlands, as defined by the U.S. Fish and Wildlife Service.
• Hazardous Waste Sites: The property is not allowed for SB-9 projects unless state or local agencies confirm the site is suitable for residential use.
• Conservation Lands: The property should not be designated for conservation in an approved natural community conservation plan.
• Habitat for Protected Species: The property should not be identified as a habitat for protected species by state or federal agencies, including those protected by the Endangered Species Act.
• Conservation Easement: The property should not be on lands under a conservation easement.

Can you bypass the Historical Preservation limitations?

No, Vista's SB-9 regulations do not cover Historical Preservation limitations. California's SB-9, also known as the HOME Act, does not apply to properties in historic and landmark districts, which are protected to maintain the historic character of neighborhoods.

Is it allowed to demolish an affordable unit?

No. SB-9 regulations strictly prevent the demolition of affordable housing units intended for moderate, low, or very low-income households. If a property has been occupied by a tenant in the last three years, the development cannot demolish more than 25 percent of the existing exterior walls.

Is it allowed to build in High-Risk Areas?

Building in high-risk areas is possible but generally not advisable due to safety concerns. Properties in areas prone to high fire hazards, earthquake fault zones, or flood zones typically face strict regulations to reduce risk and ensure safety.

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

What are the rental regulations?

Leases for 30 days or less, including short-term rentals, are not allowed.

Are existing tenants’ rights protected?

Yes, tenants’ rights are protected. The property should not have had the owner withdraw rentals or leases within the 15 years before the development application, as stated in the California Government Code.

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, potentially creating up to four units. However, creating condominiums, which involve shared ownership of land and buildings, requires a different process. This includes standard procedures like filing fees, environmental assessments, public hearings, and appeal periods, rather than the streamlined SB-9 process for urban lot splits.

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

SB-684 is a newer regulation, allowing the development of up to 10 units on urban lots smaller than 5 acres. In contrast to SB-9, which is limited to single-family residences, SB-684 applies to properties in multi-family zoning areas and vacant lots in single-family neighborhoods. Additionally, SB-684 does not have the ownership limitations imposed by SB-9 after the development 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, projects under SB-9 are eligible for ministerial approval, which simplifies the housing development process by setting clear and consistent guidelines. This form of approval relies on predetermined criteria instead of subjective evaluations, helping to minimize bureaucratic delays. Therefore, projects can secure permits without extensive CEQA assessments or public hearings. However, even with this faster approach, 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” are criteria that do not depend on personal opinions or interpretations by officials. Instead, they are based on clear, verifiable criteria that everyone can understand, making the process straightforward for both applicants and officials before any submissions occur.

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

Standards that could qualify for a waiver under SB-9 include those related to zoning, subdivision, and design review. Local governments usually set these standards to control factors such as building height, setbacks, landscaping, parking, and architectural design.

What are the steps to get the permits?

1. Application Type: Start by submitting a zoning clearance application, which will be reviewed by the Community Development Director.

2. Application Filing: File the zoning clearance application for the two-unit housing development with the Community Development Department, including all required materials and fees.

3. Building Permits: Obtain zoning clearance before applying for building permits for the new or modified primary dwelling units.

4. Application of Objective Standards: The Community Development Director will not apply zoning, subdivision, or design review standards that would block the construction of up to two primary dwelling units on either parcel or create units smaller than 800 square feet.

5. Denial: The Community Development Director can only deny a project if the Building Official finds, based on evidence, that it poses a significant risk to public safety or the environment, and there’s no way to fix or avoid this issue.

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 propose building a 4,000-square-foot, three-story duplex along with a 1,000-square-foot Accessory Dwelling Unit (ADU). The total estimated cost for this project, covering construction, permits, and professional fees (excluding land acquisition), is $1,846,812. In the City of Vista, the market value of the finished property is expected to be around $3,880,000. Therefore, the Return on Investment (ROI) for this SB-9 project is calculated as [($3,880,000 - $1,846,812)/$1,846,812]*100 = 110%

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 $2,955,764, excluding any land acquisition costs.

In Vista City, the estimated market value for this project is $6,208,000, yielding an ROI of 110%.

Conclusion:

SB-9 projects in the City of Vista offer strong returns on investment, making it worthwhile to consider undertaking a real estate project in this location, whether through lot splitting or new construction.

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

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