City of Westlake Village
All You Need to Know About Building on Properties in Westlake Village Under SB-9
Using SB-9 for real estate projects in Westlake Village City is a smart way for homeowners to significantly lower their mortgage costs. With the extra funds, you can build more units to generate rental income or create living space for your family while still living in your primary home. To ensure the success of an SB-9 project, start by checking your property's eligibility, understanding the relevant regulations, and choosing the SB-9 option that provides the best financial advantages for your property.
What is SB-9 and how does it apply to the properties in Westlake Village City?
What is SB-9?
SB-9, or Senate Bill 9, simplifies the approval process for certain housing projects in California. It requires local authorities to fast-track approvals using a streamlined path, skipping detailed environmental reviews (CEQA), Conditional Use Permits, or similar approvals from groups like the Planning Commission or Historic Preservation Commission. Joining this process is optional and depends on meeting specific criteria.
How does SB-9 apply to properties in Westlake Village?
SB-9 affects properties in Westlake Village by streamlining the process of developing housing units. It enables property owners to divide single-family lots into two, potentially creating additional housing options. This adjustment could address housing shortages and provide opportunities for property owners or developers to enhance property value.
What can homeowners build under SB-9 or Westlake Village’s HOME Act?
Urban Lot Split under SB-9
Urban lot splits involve dividing one lot into two separate lots within areas zoned 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 when two separate homes are built on the same lot.
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?
When adding new SB-9 units, along with an ADU and JADU, the combined size of the two SB-9 units cannot be larger than either the original house’s size or 1,800 square feet.
For a lot split with new units on each lot, the total size of the two units on each lot is limited to 1,800 square feet.
However, California State’s SB-9 allows units of any size.
What are the setbacks?
The front of the lot needs a 20-foot setback, leaving room between the property line and any structure facing the street. The side and rear setback should be a minimum of 4 feet. Existing homes can stay where they are or be rebuilt according to the current setback rules.
What is the parking requirement under SB-9?
Each unit requires one parking space, and it should be in an enclosed garage. This garage can either serve multiple units or be separate for each, offering flexibility while ensuring vehicles are securely housed.
What are the lot constraints under SB-9?
Lot splits are required to be at least 1,200 square feet, and no new lot can be less than 40% 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 single-family residential zones, including R-1, RPD-4, RPD-56, RPD-126, RPD-153, RPD-169, RPD-284, and RPD-481.
What are the limitations after completing a project using SB-9?
Does the homeowner need to reside on the property?
Yes, after an urban lot split, the homeowner needs to file an affidavit stating they plan to live in one of the units as their main home for at least 3 years from the date of approval. This rule does not apply to community land trusts or qualified nonprofits.
What are the rental regulations?
Short-term rentals of any new units are not allowed. The rentals should be for at least 31 days or longer.
Are existing tenants’ rights protected?
Yes. If a tenant has lived in the home for the last three years, more than 25 percent of the exterior walls cannot be torn down.
What is the difference between SB-9 and SB-684?
SB-684 is a newer legislation that allows the building of up to 10 units on urban lots under 5 acres in size. In contrast to SB-9, which mainly focuses on single-family homes, SB-684 applies to multi-family zones and vacant lots within single-family areas. Additionally, SB-684 does not enforce the ownership limitations found in 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 be eligible for ministerial approval, accelerating the development process by adhering to predetermined criteria. This method reduces bureaucratic delays and allows faster approvals without the need for detailed environmental assessments (CEQA) or public hearings. However, even with this expedited 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 fixed rules based on measurable criteria, not personal opinions, making the evaluation process more consistent and predictable. Both developers and city officials can easily access these standards beforehand, giving homeowners a clear idea of what is expected for their projects.
What types of objective standards qualify for a waiver under SB-9?
SB-9 allows for waivers of certain standards, including:
- Setback requirements for existing buildings that obstruct the construction of two units.
- Setback rules that are more than 4 feet from side and rear property lines, limiting the construction of two units.
What are the steps to get the permits?
To get permits for two-unit developments or urban lot splits under SB-9:
1. Check Eligibility: Confirm your property meets SB-9 requirements, such as minimum lot size and frontage.
2. Prepare Documentation: Gather all necessary documents like site plans, floor plans, and statements showing your project follows the required standards.
3. Submit Application: File a zoning clearance application for approval, ensuring it aligns with the objective criteria.
4. Review and Approval: The Planning Director will review the application, possibly granting exceptions in some cases.
5. Get Construction Permits: Once approved, obtain the construction permits from the relevant authorities.
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 the first scenario, we suggest building a three-story duplex with a total area of 4,000 square feet and an additional 1,000-square-foot Accessory Dwelling Unit (ADU). The estimated total expense for this project, covering construction, permits, and professional fees (excluding land costs), is $2,204,196. The expected market value of the completed property in Westlake Village is about $4,000,000, resulting in a return on investment (ROI) of [($4,000,000 - $2,204,196)/$2,204,196]*100 = 81%
Scenario 2
Lot Split with 2 new 4,000 sq. ft 3-story Duplexes
In the second scenario, we propose dividing a lot to construct two separate three-story duplexes, each with a total area of 4,000 square feet. The estimated total cost for this project, excluding land acquisition, is $3,497,696. The projected market value for these duplexes in Westlake Village is $6,400,000, yielding an ROI of 83%.
Conclusion:
Real estate development projects under SB-9 in Westlake Village can yield significant returns on investment, making the city a prime and promising location for such projects.
See how much it will cost you to improve your property per SB-9
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