City of West Hollywood
All You Need to Know About Building on Properties in West Hollywood Under SB-9
Using SB-9 for real estate projects in West Hollywood City is an excellent way for homeowners to get money to pay down a significant part of their loan. If you have extra funds, you can build additional units to make rental income or create space for family members while still living in your main house. To succeed with an SB-9 project, start by checking if your property meets the requirements, understanding how the rules apply to it, and picking the SB-9 option that is the most financially beneficial for your property in West Hollywood City.
What is SB-9 and how does it apply to the properties in West Hollywood City?
What is SB-9?
SB-9, also known as Senate Bill 9, aims to simplify the approval process for specific housing developments in California. It mandates local officials to accelerate the endorsement of these projects through a specialized pathway, bypassing the necessity for exhaustive environmental assessments (CEQA), conditional use authorization, or comparable discretionary approvals from entities like the Planning Commission or Historic Preservation Commission. Participation in this program is voluntary and contingent upon meeting specific qualifications.
How does SB-9 apply to properties in West Hollywood?
SB-9 applies to properties in West Hollywood through a city ordinance. This ordinance aligns local zoning regulations with SB-9 provisions, allowing for urban lot splits and two-unit projects. The City Council determined that the ordinance is consistent with the General Plan goals of diversifying the housing stock and providing opportunities for new construction while addressing housing needs and contributing to solutions for the housing crisis.
What can homeowners build under SB-9 or West Hollywood’s HOME Act?
Urban Lot Split under SB-9
An urban lot split involves dividing an already 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 Projects unit under SB-9
A two-unit project involves building two primary housing units on a single property.
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 West Hollywood, each of the two main units allowed in a new development can be up to 800 square feet. However, California State's SB-9 permits units of any size.
No more than two units of any kind—including primary units, ADUs, or JADUs—can be built on a lot created from an urban lot split.
What are the setbacks?
Setbacks usually follow zoning regulations, but there are exceptions:
- No setback is needed for legally established existing structures or new structures built in the same location and size as the previous ones.
- A minimum setback of 4 feet is required for the side and rear lot lines.
What is the parking requirement under SB-9?
West Hollywood's SB-9 does not require parking for two-unit projects, so no parking spaces are needed when building two primary units on one lot.
What are the lot constraints under SB-9?
Certain rules apply to lot splits in urban areas. The original lot needs to be at least 2,400 square feet, and each resulting lot has a minimum size of 1,200 square feet. The new lots are required to range between 40% and 60% of the original lot's size.
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 either the R1A or R1C zoning districts.
Can you bypass the Historical Preservation limitations?
No, properties eligible for SB-9 cannot include a cultural resource or be located within a historic district listed on the local or State Historic Resources Inventory.
Is it allowed to demolish an affordable unit?
No, SB-9 prohibits demolishing or altering affordable units, including housing that is income-restricted for moderate, low, or very low-income households.
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 reside on the property after the lot split. As part of the application, the homeowner signs an affidavit stating their intent to live there for 3 years. However, community land trusts and certain nonprofits are exempt from this rule.
What are the rental regulations?
Short-term rentals under one month are not allowed. This rule is in place to ensure the property is used for long-term housing, not as vacation rentals or temporary stays.
Are existing tenants’ rights protected?
Yes, SB-9 protects existing tenants' rights. Properties with rent control or those removed from the rental market under the Ellis Act within the last 15 years are protected from demolition. Additionally, properties that have had tenants in the past three years cannot be altered or demolished.
Can condominiums be proposed as part of my Urban Lot Split application?
No, condominiums and shared ownership developments are not allowed under an urban lot split application. This ensures that each resulting lot remains a separate property without any shared ownership.
What is the difference between SB-9 and SB-684?
SB-684 is a more recent law that allows the construction of as many as 10 units on urban lots that are less than 5 acres. Unlike SB-9, which primarily targets single-family dwellings, SB-684 is relevant for multi-family zones and undeveloped lots in single-family neighborhoods. Furthermore, SB-684 does not impose the ownership restrictions that are part of SB-9’s regulations.
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 receive ministerial approval, which speeds up the development process by following established guidelines. This approach minimizes administrative delays and allows for quicker approvals without requiring extensive environmental reviews (CEQA) or public hearings. Nevertheless, even with this faster process, obtaining approval for a lot split could still take as long as 1.5 years.
What are objective standards?
"Objective zoning standards," "objective subdivision standards," and "objective design review standards" are clear, measurable rules designed to eliminate subjective judgments. They use fixed criteria that both developers and officials can easily reference. This approach ensures consistency and transparency in evaluating housing projects, providing homeowners with a clear understanding of what is required for their proposals.
What types of objective standards qualify for a waiver under SB-9?
SB-9 permits waivers for specific standards, such as:
- Setback regulations for existing structures that hinder the construction of two units.
- Setback requirements that are greater than 4 feet from side and rear property lines, restricting the ability to build two units.
What are the steps to get the permits?
To obtain permits for an urban lot split, follow these steps:
1. Application Submission: Start by submitting an application for an urban lot split using the city’s approved form. Make sure to follow all requirements and pay the necessary fees. Ensure compliance with objective standards.
2. Review and Approval: The Planning and Development Services Director reviews the application. Approval or denial is based on whether the application meets all requirements, including the submission of a tentative map and necessary documents. If everything checks out, approval is granted.
For a two-unit project, the steps are:
1. Zone Clearance Application: Submit a Zone Clearance application for the two-unit project, following Section 19.42. This application also goes through a ministerial review by the Planning and Development Services Director. Ensure compliance with objective standards.
2. Application Submission: Only individual property owners can apply for a two-unit project. Apply according to the city's guidelines and requirements.
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 first case, we suggest constructing a three-story duplex with a total area of 4,000 square feet, plus an additional 1,000-square-foot Accessory Dwelling Unit (ADU). The estimated overall expense for this project, including all construction, permits, and professional fees (but not the land), is $2,189,109. The anticipated market value of the completed property in West Hollywood is about $9,000,000, which equates to a return on investment (ROI) of [($9,000,000 - $2,189,109)/$2,189,109]*100 = 311%
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
In the second scenario, we propose dividing a lot and building two separate three-story duplexes, each with an area of 4,000 square feet. The total estimated cost for this project, excluding the land purchase, is $3,487,068. The projected market value for these duplexes in West Hollywood is $14,400,000, resulting in an ROI of 312%.
Conclusion:
Implementing SB-9 for real estate projects in West Hollywood offers considerable financial benefits, making it a highly attractive and promising location for such developments.