BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2299


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          Date of Hearing:  April 20, 2016


                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT


                           Susan Talamantes Eggman, Chair


          AB 2299  
          (Bloom) - As Amended April 5, 2016


          SUBJECT:  Land use:  housing:  2nd units.


          SUMMARY:  Requires, instead of allows, a local agency to, by  
          ordinance, provide for the creation of second units in  
          single-family and multifamily residential zones, and makes a  
          number of other changes specifying what is required to be in the  
          ordinance.  Specifically, this bill:  


          1)Requires, instead of permits, a local agency by ordinance, to  
            provide for the creation of second units in single-family and  
            multifamily residential zones, and specifies what is required  
            to be in the ordinance.


          2)Prohibits a local agency, in the ordinance, from imposing  
            parking standards for a second unit that is located within  
            one-half mile of public transit or shopping or is within an  
            architecturally and historically significant historic  
            district.


          3)Allows, in the ordinance, a local agency to reduce or  
            eliminate parking requirements for any second unit located  
            within its jurisdiction, as specified.








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          4)Prohibits a local government, in the ordinance, from requiring  
            a passageway or pathway clear to the sky between the second  
            unit and a public street when constructing a second unit. 


          5)Prohibits a local government, in the ordinance, from requiring  
            a setback more than five feet from the side and rear lot line  
            for a second unit constructed above a garage located on an  
            alley.


          6)Specifies that when a garage, carport, or covered parking  
            structure is demolished in conjunction with the construction  
            of a second unit, and the local government requires that those  
            off-street parking spaces be replaced, the replacement spaces  
            may be located in any configuration on the same lot as the  
            second unit, including, but not limited to, covered spaces,  
            uncovered spaces, or tandem spaces or by the use of mechanical  
            automobile parking lifts. 


          7)Provides that a second unit that conforms to this section of  
            law shall be deemed to be an accessory use or an accessory  
            building, as specified.


          8)Makes other technical and corresponding changes.


          9)Declares that no reimbursement is required because a local  
            agency has the authority to levy service charges, fees, or  
            assessments sufficient to pay for the program or level of  
            service mandated by this act.


          EXISTING LAW:









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          1)After July 1, 2003, applications for a second unit shall be  
            considered by local governments ministerially, without  
            discretionary review or hearing, regardless of any local  
            ordinance regulating the issuance of special use permits.


          2)Provides that a local government may by ordinance provide for  
            the creation of second units in single-family and multi-family  
            zones. 


          3)Provides that a local ordinance for second units may do all of  
            the following:


             a)   Designate areas where second units may be permitted  
               based on criteria that may include consider the adequacy of  
               water and sewer services and the impact on traffic flow;


             b)   Impose parking standards, height, setback, lot coverage,  
               architectural review, maximum size of a unit and standards  
               that prevent adverse impacts on any property listed in  
               California Register of Historic Places; and,


             c)   Provide that second units do not exceed the allowable  
               density for the lot on which it is located and that second  
               units are a residential use that is consistent with the  
               existing general plan and zoning designation on a lot. 


          FISCAL EFFECT:  This bill is keyed fiscal.


          COMMENTS:  










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          1)Bill Summary and Background.  Local governments are authorized  
            to adopt ordinances for the creation of second units in single  
            family and multifamily zones; however, they are not required  
            to do so.  State law allows local governments to limit the  
            areas that second units may be permitted based on availability  
            of adequate water and sewer services as well as the impact on  
            traffic flow.  They can also impose parking standards.  AB  
            1866 (Wright), Chapter 1066, Statutes of 2003, required that  
            local governments approve a second unit ministerially without  
            discretionary review or hearing or require a special use  
            permit.  


            This bill requires, instead of allows, a local agency to, by  
            ordinance, provide for the creation of second units in  
            single-family and multifamily residential zones, and makes a  
            number of other changes specifying what is required to be in  
            the ordinance.  This bill prohibits a local agency, in the  
            ordinance, from imposing parking standards for a second unit  
            that is located within one-half mile of public transit or  
            shopping or is within an architecturally and historically  
            significant historic district, and allows, in the ordinance, a  
            local agency to reduce or eliminate parking requirements for  
            any second unit located within its jurisdiction, as specified.  
             The bill also prohibits a local government, in the ordinance,  
            from requiring a passageway or pathway clear to the sky  
            between the second unit and a public street when constructing  
            a second unit, and prohibits a local government, in the  
            ordinance, from requiring a setback more than five feet from  
            the side and rear lot line for a second unit constructed above  
            a garage located on an alley.


            The bill also specifies that when a garage, carport, or  
            covered parking structure is demolished in conjunction with  
            the construction of a second unit, and the local government  
            requires that those off-street parking spaces be replaced, the  
            replacement spaces may be located in any configuration on the  
            same lot as the second unit, including, but not limited to,  








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            covered spaces, uncovered spaces, or tandem spaces or by the  
            use of mechanical automobile parking lifts.


            This bill is sponsored by the California Apartment  
            Association.


          2)Author's Statement.  According to the author, "California's  
            implementation of SB 375 is putting new pressure on  
            communities to support infill and affordable housing  
            development.  As the San Francisco Bay Area adds over two  
            million new residents by 2040, infilling the core could  
            accommodate over half of the new population, according to the  
            Association of Bay Area Governments.  But at the same time,  
            infill could increase housing costs and exacerbate the  
            region's affordability crisis.  One potential solution is  
            secondary units (also called in-law units or accessory  
            dwelling units).  Self-contained, smaller living units on the  
            lot of a single-family home, secondary units can either be  
            attached to the primary house, such as an above-the-garage  
            unit or a basement unit, or detached (an independent cottage).  
             Secondary units are particularly well-suited as an infill  
            strategy for low-density residential areas because they offer  
            hidden density, housing units not readily apparent from the  
            street- and relatively less objectionable to the neighbors.  


            "Recognizing the potential of secondary units as a housing  
            strategy, California has passed several laws to lower local  
            regulatory barriers to construction, most recently AB 1866 of  
            2003, which requires that each city in the state have a  
            ministerial process for approving secondary units.


            "AB 2299 will ease and streamline current statewide  
            regulations as well as encourage the building of accessory  
            dwelling units (ADUs) as a way to create more housing options.  
             Currently several cities are looking at local ordinance to  








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            improve or incentivize the creation of ADUs as a way to create  
            more rental properties and incomes for families to stay in  
            their current homes.  Simply reducing parking requirements in  
            transit-rich areas where most tenants don't have a car will  
            encourage more building of ADUs."


          3)Arguments in Support.  Supporters argue that this bill will  
            help alleviate our housing shortage, while capitalizing on  
            limited land resources. 


          4)Arguments in Opposition.  Opposition argues that this bill  
            adds costs at the local level that are ultimately passed on in  
            the form of higher development fees, and also assumes that all  
            communities are appropriate for second units.


          5)Double-Referral.  This bill was heard by the Housing and  
            Community Development Committee on April 13, 2016, where it  
            passed with a 5-2 vote.


          REGISTERED SUPPORT / OPPOSITION:




          Support


          California Apartment Association [SPONSOR]


          American Planning Association, California Chapter (if amended)


          California Association of Realtors









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          Opposition


          California State Association of Counties


          League of California Cities




          Analysis Prepared by:Debbie Michel / L. GOV. / (916) 319-3958