SB-9 vs traditional ADU - which is better in Santa Rosa?

Hello,

Navigating the decision between pursuing an SB-9 lot split or building a traditional ADU in Santa Rosa involves weighing several factors, including costs, timelines, local regulations, and potential impacts on property value and neighborhood relations. Let's delve into each aspect to provide you with a comprehensive understanding.

### Understanding SB-9 vs. Traditional ADU

**SB-9 Lot Split:**
SB-9, effective from January 2022, allows homeowners to split a single-family lot into two and build up to two residential units on each lot. This means potentially creating four units on your original lot. In Santa Rosa, the local ordinances will still apply, and you'll need to ensure compliance with zoning and building codes.

**Traditional ADU:**
An ADU, or Accessory Dwelling Unit, can be a more straightforward option if you're looking to add one additional unit. Under California's AB-68, you can build an ADU in addition to a Junior ADU on the same lot, potentially increasing your property's rental income capability without splitting the lot.

### Costs and Feasibility

1. **SB-9 Lot Split Costs:**
- **Lot Split and Infrastructure:** Expect costs ranging from $10,000 to $30,000 for the lot split process, including surveys, legal fees, and infrastructure adjustments.
- **Construction Costs:** Building a new unit can cost between $200 to $300 per square foot in Santa Rosa, so for a 1,000 sq. ft. unit, anticipate $200,000 to $300,000.
- **Additional Costs:** Include utility connections, landscaping, and city fees, which can add another $20,000 to $50,000.

2. **ADU Construction Costs:**
- **Planning and Permitting:** Permitting fees in Santa Rosa for ADUs can run between $5,000 to $10,000.
- **Building Costs:** ADUs cost roughly $200 to $350 per square foot. A 600 sq. ft. ADU might cost between $120,000 and $210,000.
- **Total Investment:** With a budget of $300,000, a well-planned ADU is more feasible than a full SB-9 development.

### Permitting Process and Timelines

**SB-9 Lot Split:**
- **Process Complexity:** More complex due to the need for surveys, potential environmental impact assessments, and infrastructure changes.
- **Timeline:** Expect 6-12 months for the lot split approval, plus additional time for construction.

**Traditional ADU:**
- **Simplified Process:** Santa Rosa has streamlined ADU permitting, with many applications processed within 60 days.
- **Timeline:** From planning to construction completion, anticipate 4-8 months.

### Market Value and Rental Potential

**SB-9 Duplex:**
- **Market Value:** Potentially higher due to additional units and increased density.
- **Rental Income:** Greater potential with more units, but also higher management complexity.

**Standalone ADU:**
- **Market Value:** Adds significant value, often increasing overall property value by 20-30%.
- **Rental Income:** A well-designed ADU can command $1,500 to $2,000 monthly in Santa Rosa.

### Neighborhood Considerations

1. **Community Impact:** Neighborhood dynamics can change with increased density. SB-9 projects may face more pushback than ADUs due to their scale.
2. **Zoning and Covenants:** Review any CC&Rs (Covenants, Conditions, and Restrictions) that may affect your ability to build.

### Recommendations and Next Steps

1. **Consult a Local Expert:** Engage a local architect or ADU specialist familiar with Santa Rosa's specific regulations.
2. **Feasibility Study:** Conduct a feasibility study to analyze the potential return on investment for both options.
3. **Engage with Neighbors:** Proactively discuss plans with neighbors to mitigate concerns, especially if considering an SB-9 split.
4. **Check Santa Rosa's ADU Resources:** The city provides resources and guidelines on their website, facilitating your understanding of the local requirements.

### Final Thoughts

For a budget of $300,000, an ADU is likely your best bet in Santa Rosa, offering a balance of affordability, rental income potential, and regulatory simplicity. However, if your long-term goal includes maximizing property value through density, and you are prepared for a more complex process, SB-9 could still be a viable option.

I wish you the best in your decision-making process. Should you need any more specific advice or detailed connections to local professionals, feel free to reach out.

Warm regards,

[Your Name]
ADU Consultant and Expert in California Regulations