TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Carrie Tai, AICP, Community Development Director
Quinn M. Barrow, City Attorney
SUBJECT:Title
Public Hearing to Consider Extending Interim Ordinance No. 21-0009-U Implementing Objective Development Standards for Senate Bill (SB) 9 Development (Community Development Director Tai).
A) CONDUCT PUBLIC HEARING
B) ADOPT URGENCY ORDINANCE NO. 22-0003-U EXTENDING THE INTERIM ZONING ORDINANCE FOR 10 MONTHS AND 15 DAYS
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council adopt Urgency Ordinance No. 22-0003-U to extend Interim Ordinance No. 21-0009-U to maintain interim objective development standards for housing developments and lot splits authorized by Senate Bill 9 while the City studies such developments and urban lot splits.
FISCAL IMPLICATIONS:
There is no direct fiscal impact associated with the adoption of the attached Ordinance No. 20-0003-U. However, development of the permanent Zoning Code Amendments and companion Local Coastal Program Amendments for these objective development standards will require additional staff time and resources.
BACKGROUND:
SB 9 was signed into law on September 16, 2021, and took effect on January 1, 2022. SB 9 requires a city to approve ministerially (no public hearing or discretionary review) housing developments containing two housing units on a lot in a single-family zone. (An accessory dwelling unit (ADU) could then be constructed onto each housing unit for a total of four units on an existing single-family lot.)
SB 9 also requires cities to ministerially approve an urban lot split, which is a subdivision of one lot in a single-family zone into two lots, of approximately equal size. With a maximum of two units allowed on each of the lots, what was once a single lot could be split into two parcels under SB 9 and accommodate up to four residential units (that could include accessory dwelling units).
While the implementation of SB 9 is not optional, similar to ADU regulations, the State allows local jurisdictions to adopt ordinances that include customized development standards for the applicable zone, such as height, front setbacks, lot coverage, etc., as long as the standards are objective and do not preclude development of, at a minimum, two 800 square-foot units on each parcel.
On December 21, 2021, the City Council adopted Interim Ordinance No. 21-0009-U (Attachment) to add objective standards for SB 9 projects. The Interim Ordinance has a term of 45 days, with an expiration date of February 4, 2022. The Interim Ordinance may be extended for 10 months and 15 days. Government Code Section 65858(d) requires that 10 days prior to the expiration or extension of any interim zoning ordinance, the City Council must issue a written report describing the measures taken to alleviate the condition which led to the adoption of the ordinance. This report was issued on January 18, 2022. The City Council must then consider an extension for the Interim Ordinance at a public hearing.
DISCUSSION:
The draft Ordinance would extend Interim Ordinance No. 21-0009-U, by continuing to allow the City to impose objective development standards in addition to the required State requirements. State standards briefly consist of the following:
Additional Units
• Prohibits demolishing more than 25% of an existing unit’s structural walls if the site has been occupied by a tenant in the last three years
• Allows the City to require setbacks of up to four feet from side and rear property lines
• City cannot preclude the development of two units of at least 800 square feet each per parcel
• No setbacks may be applied to existing structures or structures constructed in the same dimension and same location
• Cities may require one off-street parking space for each new unit, unless the parcel is located within one-half mile of a “high quality transit corridor” or “a major transit stop” (these terms are defined by State law, sections 21155 and 21064.3 of the Public Resources Code).
• Short-term rentals are prohibited, as are all non-residential uses.
Urban Lot Splits
• No more than two parcels may be created by an urban lot split
• New parcels must be approximately equal in size, with one parcel being no smaller than 40 percent of the original lot’s size
• Both parcels must be at least 1,200 square feet
• May not split a lot previously created by an SB 9 urban lot split
• City cannot preclude the development of two units of at least 800 square feet each per parcel
• City cannot require right-of-way dedication
• Requires owner occupancy on one of the lots for at least three years
• Short-term rentals are prohibited, as are all other non-residential uses
• City may not require correction of non-conforming zoning conditions
SB 9 does not apply in a variety of areas, including farmland, wetlands, fire hazard severity zones, hazardous waste sites, flood zones, habitats/protected areas, zones that permit multi-family development, or sites designated as a historic landmark or in a historic district. SB 9 development projects cannot replace:
• Housing restricted to moderate, low, or very-low incomes
• Housing subject to a local rent control ordinance
• Housing occupied by a tenant in the last three years
• Housing withdrawn from the rental market pursuant to the Ellis Act within 15 years prior to the development application submittal.
In addition to State regulations in SB 9, applicants proposing an SB 9 development project will need to comply with applicable regulations in the Municipal Code. Furthermore, SB 9 allows location jurisdictions to adopt objective standards to ensure that SB 9 development projects are developed consistently with each jurisdiction’s requirements. Staff has prepared a draft interim zoning ordinance that includes objective standards for development, and a requirement for a recorded covenant for each SB 9 development project. The covenant would commit current and future property owners to the requirements of SB 9 for the life of the project.
The interim zoning ordinance contains the following objective standards for SB 9 development projects:
• Requires an application and application fee
• Requires an applicant to provide a sworn statement affirming eligibility with SB 9 regulations
• Provides for an applicant-funded verification process
• Must record a covenant on the property agreeing to:
- No non-residential uses on the site
- No short-term rental usage
- If urban lot split
§ No subsequent urban lot splits of parcels created by SB 9
§ Owner must occupy the property for three years
§ Maintain access to the public right of way in perpetuity
- Maintain all required parking
• Objective standards for development
- Required parking of one space per unit; access via an alley if there is one
- Conceal private electrical equipment
- Paint flashing, vents, pipes to match the roof or wall
- Must provide a refuse storage area, concealed from view
- Provide pedestrian access from the right-of-way to the unit
- Setbacks for garages
- Maximum 10-feet wide driveway for narrow (<= 30 feet) lots
- If urban lot split,
§ No flag lots if adjacent to an alley, corner, on through lot
§ Minimum lot width is 20 feet
§ Must demonstrate access to the public right-of-way in perpetuity
PUBLIC OUTREACH:
A public hearing notice was published in the Beach Reporter on January 20, 2022. Future Planning Commission and City Council public hearings for the Zoning Code Amendments will also be noticed.
ENVIRONMENTAL REVIEW:
This Ordinance was assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (“CEQA”), the State CEQA Guidelines, and the environmental regulations of the City. The City Council hereby finds and determines that the Ordinance is exempt from the CEQA pursuant to Government Code Section 65852.21(j) effective January 1, 2022. Furthermore, this Ordinance is exempt from CEQA based on the following reasons. This Ordinance is not a project within the meaning of Section 15378 of the State CEQA Guidelines, because it has no potential for resulting in physical change in the environment, directly or ultimately. This Ordinance is categorically exempt from CEQA under Section 15308 of the CEQA Guidelines as a regulatory action taken by the City pursuant to its police power and in accordance with Government Code Section 65858 to assure maintenance and protection of the environment pending the evaluation and adoption of contemplated local legislation, regulation and policies. This Ordinance is not subject to CEQA under the general rule in CEQA Guidelines Section 15061(b)(3) that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Any development that would be contemplated under this Ordinance must be treated ministerially, and any such projects would be exempt from the environmental review requirements. For the reasons set forth herein above, it can be seen with certainty that there is no possibility that this Ordinance will have a significant effect on the environment.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary, and has approved as to form the draft ordinance.
ATTACHMENTS:
1. Urgency Ordinance No. 22-0003-U
2. Ordinance No. 21-0009-U (December 21, 2021)
3. Powerpoint Presentation