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E 11. Public Hearing_ADU SB 9, ADU_3.22.2022MARCH 22, 2022 CITY COUNCIL MEETING Conduct a Public Hearing Proposing an Ordinance Establishing Regulations for Urban Lot Splits and Two-Unit Developments in accordance with Senate Bill No. 9 . Proposing an Ordinance Adopting Amendments Regulations of Accessory Dwelling Units and Junior Accessory Dwelling Units. 2030 Vision Statement Goal 3 to Promote Economic Development by updating zoning and development code in preparation for future growth, and to preserve and protect our community and its exceptional quality of life though thoughtful planning. Senate Bill 9 Became effective on January 1, 2022 Requires local agencies ministerial approval of projects proposing up to two primary dwelling units per parcel in a single –family residential zone. Requires local agencies the ministerial approval of lot splits in single-family residential zones and allows up to two units to be built on each resulting parcel. Background On January 25, 2022, the City Council adopted an Urgency Ordinance (No. 336-U) establishing objective standards for the regulation of lots splits and new units developed under SB 9. The City Council directed staff to bring back a regular ordinance establishing requirements for SB 9 projects. The City Council also directed staff to update the Municipal Code requirements for Accessory Dwelling Units (ADU) and Junior Accessory Dwelling Units (JADU). Background The City Council’s comments: ▪Minimum setbacks requirements ▪Sewer requirements ▪Water requirements ▪Rental program requirements ▪Courtesy notifications to adjacent property owners ▪Replacement of mature trees being removed ▪Parking requirements ▪Development impact fees Background On March 3, 2022, the Planning Commission conducted a public hearing meeting and voted unanimously 4-0 adopting a Resolution recommending the City Council adopt the proposed Ordinances establishing SB 9 standards and updating the regulations for Accessory Dwelling Units. Planning Commission’s comments: Sewer and onsite wastewater treatment systems Water line connections Parking requirements SB 9 Lot Splits SB 9 Lot Split Additional City Standards Courtesy Notice: “At least seven days prior to making a determination on an application for an urban lot split, the City Engineer shall mail a courtesy notice to the owner(s) of each property immediately adjacent to the property where the proposed lot split will be located informing the owner(s) of the submitted application". SB 9 Lot Split Additional City Standards Limitation on development of vacant parcel created by urban lot split. “Notwithstanding any other provision of this code, if an urban lot split results in the creation of a vacant parcel, the only permitted use of such parcel shall be a two-unit development.” SB 9 Lot Split Additional City Standards Deed Restriction, affordable rent requirement “As a condition of approval of,and prior to the issuance of a certificate of occupancy for,a second unit or two-unit development,the property owner shall execute a deed restriction,in a form approved by the city attorney,which shall be recorded on the property,at the property owner’s cost,and shall include the following requirements: SB 9 Lot Split Additional City Standards “A.The second unit or two-unit development shall only be used and developed in accordance with the requirements in this chapter,including but not limited to the development standards in Section 18.65.040 and the prohibition on short- term rentals in Section 18.65.070;and B.Second units,and both units of a two-unit development, if rented,shall only be rented at an affordable rent for lower- income households,as defined in Health and Safety Code Section 50053,and shall only be rented to lower-income households,as defined in Health and Safety Code Section 50079.5,for a minimum of 55 years.” SB 9 Units SB 9 Units Additional City Standards Courtesy Notice: “At least seven days prior to making a determination on an application for a second unit or two-unit development, the Planning Director shall mail a courtesy notice to the owner(s) of each property immediately adjacent to the property where the proposed development will be located informing the owner(s) of the submitted application.” SB 9 Units Additional City Standards Setback requirements: “There shall be at least 15 feet of separation between all detached units on a parcel, including second units, primary units, both units of a two-unit development if they are not attached, and detached accessory dwelling units.” SB 9 Units Additional City Standards Tree Replacement: “If the construction of a second unit or two-unit development will result in the removal of one or more trees with a trunk diameter of six (6) inches or greater, then, as a condition of obtaining a certificate of occupancy, the owner shall plant one new 24-inch box tree on site for each tree removed. The proposed project site shall have a minimum of one tree per unit.” SB 9 Units Additional City Standards Development Impact Fees “As a condition of receiving a certificate of occupancy for a second unit or two-unit development, the applicant shall pay development impact fees in an amount established by city council resolution.” SB 9 Units Additional City Standards Rental term, rental property program compliance, separate conveyance “A. Second units and both units in a two-unit development shall not be rented for a term of less than thirty-one (31) consecutive days.” SB 9 Units Additional City Standards “B. Unless the owner of the property provides the City with an annual certification that a unit is owner-occupied, second units and both units in a two-unit development shall be assumed to be rental units and shall be subject to the requirements in Chapter 5.80 (Non-Owner Occupied/Rental Property Program).” “C. A second primary unit may not be turned into a condominium or otherwise sold separately from the other primary unit on the parcel. The units in a two-unit development may not be turned into condominiums or otherwise sold separately from one another.” SB 9 Units Additional City Standards Wastewater, Water Service “1. Prior to issuance of a building permit for a second unit or either unit of a two-unit development, the City Engineer shall inspect existing sewer lines and/or the onsite wastewater treatment system on the parcel. As part of this inspection, the City Engineer may, if applicable, require documentation of a percolation test completed within the last five years, or, if the percolation test has been recertified, within the last ten years. If the City Engineer determines that the addition of a new unit or units would result in a violation of the requirements of the California Plumbing Code, the requirements of the Santa Ana Regional Water Quality Control Board, and/or other objective City sewer or septic system requirements, then the City shall impose conditions of approval on the development that are necessary to ensure compliance with such requirements.” SB 9 Units Additional City Standards Wastewater, Water Service “2. If a parcel relies on an onsite wastewater treatment system, and a proposed unit would be located on the only part of the parcel that could accommodate a new onsite wastewater treatment system in the event the existing system needed to be replaced, then the City shall require that all existing and proposed units on the parcel be disconnected from the onsite wastewater treatment system and connected to the sewer system as a condition of approval of the development. If such disconnection and connection is not possible, or would require off-site improvements, then the building official, or designee, shall consider whether such circumstances are grounds for denial of the proposed project pursuant to Section 18.65.020.C.” SB 9 Units Additional City Standards Wastewater, Water Service “3. A second unit, and both of the units in a two-unit development, shall each have a separate connection to the main water service line in the street and the applicant shall submit plans for such line(s) to the Riverside Highland Water Company for review and approval. The applicant shall comply will all objective requirements of the Riverside Highland Water Company for the construction and operation of the water line(s).” SB 9 Units Additional City Standards Parking “One new on-site off-street parking space is required for a second unit and one new on-site off-street parking space per unit is required for each unit of a two-unit development. Such parking spaces shall be in addition to all existing parking spaces on the parcel.” SB 9 Units Additional City Standards SB 9 development will be approved through the administrative site and architectural review process SB 9 units can only be up to 800 square feet and 16 feet in height SB 9 developments shall match the primary unit Units cannot be located on a second story SB 9 Legislation Restriction City Council Comments restricted by the legislation: How is SB 9 going to impact the City’s two car garage parking requirement How is SB 9 going to impact the City’s lot coverage ADU/JADU Ordinance ADU/JADU Ordinance Additional City Standards City Council and Planning Commission ADU Ordinance comments: The removal and replacement of trees requirements Non-Owner Occupied/Rental Property Program requirements Sewer and water requirements Parking requirements ADU/JADU Ordinance Additional City Standards JADUs size requirements: ▪No more than 500 square feet in size contained within a single-family residence. ▪The size of the detached ADU will be limited to: Detached ADU Unit Type 850 sq. ft.Studio/one-bedroom units 1,000 sq. ft.Two or more bedrooms units ▪The size of an attached ADU will be limited to: Attached ADU size Unit Type 850 sq. ft. or 50% of the primary dwelling floor area, whichever is less Studio/one-bedroom units 1,000 sq. ft. or 50% of the primary dwelling floor area, whichever is less Two or more bedrooms units ADU/JADU Ordinance ADU/JADU ADU/JADU Additional City Standards ADUs are limited to 16 feet in height and prohibit construction of an ADU/JADU above existing structures; however, existing second stories may be converted into ADUs or JADUs. Requires a 15 feet separation between all detached units on a parcel. ADUs and JADUs cannot be used for short-term rental (less than 31 days). ADUs and JADUs will be approved through the administrative site and architectural review process. ADU/JADU Ordinance Additional City Standards ▪Requires ADUs to match the primary unit. ▪Established development and design standards for manufactured ADU units: ▪No more than 10 years old on the day of the installation ▪It shall be installed on a permanent foundation ▪If the materials to match the primary dwelling are not available at least the color shall match the primary dwelling. ADU/JADU Ordinance Additional City Standards Development Impact Fees “No impact fee shall be imposed for an accessory dwelling unit less than seven hundred fifty square feet. Any impact fees charged for an accessory dwelling unit of seven hundred fifty square feet or more shall be charged proportionately in relation to the square footage of the primary dwelling unit. For purposes of this section, “impact fee” has the meaning given in Government Code Section 65852.2(f)(3)(b).” Environmental Review The adoption of SB 9 regulations is not a “project” for purposes of the California Environmental Quality Act (CEQA) pursuant to Government Code sections 65852.21(j) and 66411.7(n). Additionally, the adoption of an ordinance regarding second units (ADUs) in a single family or multi -family residential zone to implement the provisions of Government Code Sections 65852.2 and 65852.22 is exempt from CEQA review pursuant to Public Resources Code Section 21080.17. Therefore, the proposed Ordinances do not require any environmental review under CEQA. Fiscal Impact There will be no expenditure on the part of the City to adopt this Ordinance The cost to administer the Ordinance will be recovered in part through the application fees Recommendation Staff recommends the City Council to: (1) Conduct a public hearing and (2) After the public hearing, read by title only, waive further reading and introduce the proposed Ordinances establishing objective standards for implementation of Senate Bill No. 9 pertaining to urban lot splits and two-unit developments and updating the City's regulations for Accessory Dwelling Units. Questions ?