BILL ANALYSIS                                                                                                                                                                                                    






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          |SENATE RULES COMMITTEE            |                       SB 1069|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
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                                   THIRD READING 


          Bill No:  SB 1069
          Author:   Wieckowski (D), et al.
          Amended:  4/26/16  
          Vote:     21 

           SENATE TRANS. & HOUSING COMMITTEE:  10-1, 4/19/16
           AYES:  Beall, Cannella, Allen, Gaines, Galgiani, Leyva,  
            McGuire, Mendoza, Roth, Wieckowski
           NOES:  Bates

           SENATE GOVERNANCE & FIN. COMMITTEE:  6-0, 4/20/16
           AYES:  Hertzberg, Nguyen, Beall, Hernandez, Lara, Moorlach
           NO VOTE RECORDED:  Pavley

           SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

           SUBJECT:   Land use:  zoning


          SOURCE:    Bay Area Council

          DIGEST:  This bill requires an ordinance for the creation of  
          accessory dwelling units (ADUs) to include specified provisions  
          regarding areas where ADUs may be located, standards, and lot  
          density. This bill revises requirements for the approval or  
          disapproval of an ADU application when a local agency has not  
          adopted an ordinance.

          ANALYSIS:  
          
          Existing law:

           1) Defines "second unit" as an attached or a detached  








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             residential dwelling unit, which provides complete  
             independent living facilities for one or more persons.  It  
             shall include permanent provisions for living, sleeping,  
             eating, cooking, and sanitation on the same parcel as the  
             single-family dwelling is situated.  Permits a local agency,  
             by ordinance, to provide for the creation of second units in  
             single-family and multifamily residential zones as specified.  
              

           2) Requires, if a local agency adopts a second-unit ordinance,  
             that applications be considered ministerially without  
             discretionary review or a hearing. Additionally, nothing may  
             be construed to require a local government to adopt or amend  
             an ordinance regulating the issuance of variances or  
             special-use permits for second units.

           3) Requires a local agency that has not adopted a second-unit  
             ordinance to accept and approve or disapprove the application  
             ministerially, without discretionary review or hearing,  
             within 120 days after receiving the application. 

           4) Requires every local agency to grant a variance or special  
             permit for the creation of a second unit if the second unit  
             complies with all of the following:
              a)    The unit is not intended for sale and may be rented.
              b)    The lot is zoned for single-family or multifamily use.
              c)    The lot contains an existing single-family dwelling.
              d)    The second unit is either attached to the existing  
                dwelling and located within the living area of the  
                existing dwelling or detached and located on the same lot  
                as the existing dwelling.
              e)    The increased floor area of an attached second unit  
                shall not exceed 30% of the existing living area.
              f)    The total area floor space shall not exceed 1,200  
                square feet. 
              g)    Requirements applicable to residential construction in  
                the zone in which the property is located.
              h)    Local building code requirements that apply to  
                detached dwellings. 
              i)    The unit is approved by the local health officer where  
                a private sewage disposal system is being used. 

           5) Provides that no local agency may adopt an ordinance that  
             totally precludes second units unless the ordinance contains  







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             findings and acknowledges that the ordinance may limit  
             housing opportunities of the region, and further contains  
             findings that specific adverse impacts on the public health,  
             safety, and welfare would result.

           6) Provides that a local agency may establish maximum and  
             minimum unit size requirements for both attached and detached  
             second units.  Establishes the maximum standards that local  
             agencies shall use to evaluate proposed accessory dwelling  
             units on lots zoned for residential use that contain an  
             existing single-family dwelling.  No additional standards  
             shall be utilized or imposed, except that a local agency may  
             require an applicant for a permit to be an owner-occupant.   
             Provides that parking requirements shall not exceed one  
             parking space per unit or per bedroom, but that additional  
             parking may be required with a finding that additional  
             parking requirements are directly related to the use of the  
             second unit and consistent with existing neighborhood  
             standards.

          This bill:

           1) Replaces "second units" with "accessory dwelling units"  
             (ADUs) throughout the chapter.

           2) Requires a local agency, in its ADU ordinance, to do the  
             following:
              a)    Designate areas within the jurisdiction where ADUs may  
                be permitted, which may be based upon criteria including  
                but not limited to the adequacy of water and sewer  
                services and the impact of ADUs on traffic flow and public  
                safety.
              b)    Impose standards on ADUs including but not limited to  
                parking, height, setback, lot coverage, architectural  
                review, and maximum size of the unit.  Notwithstanding  
                parking restrictions under this chapter, a local agency  
                may not impose parking standards in the following  
                instances:
                 i)       The ADU is located within  mile of public  
                   transit or shopping
                 ii)      The ADU is located within an architecturally and  
                   historically significant historic district
                 iii)     The ADU is part of an existing primary residence
                 iv)      When on-street parking permits are required, but  







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                   not offered to the occupant of the accessory dwelling  
                   unit
                 v)       When there is a car-share vehicle located within  
                   one block of the ADU

              c)    Provide that second units do not exceed the allowable  
                density for the lot upon which the second unit is located,  
                and that the second unit is consistent with the existing  
                general plan and zoning designation for the lot. 

           3) Requires a local agency with an ADU ordinance to consider  
             permits within 90 days of submittal of a complete building  
             permit application. 

           4) Provides that a local agency that has not adopted an ADU  
             ordinance, upon receipt of its first application shall accept  
             or disapprove the application ministerially without  
             discretionary review, unless it adopts an ordinance in  
             accordance with this chapter within 90 days after receiving  
             the application. 

           5) Requires a local agency that has not adopted an ADU  
             ordinance to approve the creation of an ADU if the ADU meets  
             the following requirements:
              a)    The unit is not intended for sale separate from the  
                primary residence and may be rented.
              b)    The lot is zoned for single-family or multifamily use.
              c)    The lot contains an existing single-family dwelling.
              d)    The ADU is either attached to the existing dwelling  
                and located within the living area of the existing  
                dwelling or detached and located on the same lot as the  
                existing dwelling.
              e)    The increased floor area of an attached ADU shall not  
                exceed 50% of the existing living area.
              f)    The total area floor space of the ADU shall not exceed  
                1,200 square feet. 
              g)    Requirements applicable to residential construction in  
                the zone in which the property is located.
              h)    Local building code requirements, which apply to  
                detached dwellings as appropriate.
              i)    Approved by the local health officer where a private  
                sewage disposal system is being used. 

           6) Removes the exemption for a local agency to adopt an ADU  







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             upon findings that the ordinance may limit housing  
             opportunities of the region, and further contains findings  
             that specific adverse impacts on the public health, safety,  
             and welfare would result.

           7) Provides that a local agency may establish maximum and  
             minimum unit size requirements for both attached and detached  
             ADUs.  No maximum or minimum size for an ADU, or size based  
             upon a percentage of the existing dwelling unit, shall be  
             established by ordinance for either attached or detached  
             dwellings that does not permit at least a 500-foot ADU or a  
             500-foot efficiency unit to be constructed in compliance with  
             local development standards.  ADUs shall not be required to  
             provide fire sprinklers if they are not required for the  
             primary residence. 

           8) Establishes the maximum standards that local agencies shall  
             use to evaluate proposed accessory dwelling units on lots  
             zoned for residential use that contain an existing  
             single-family dwelling.  No additional standards shall be  
             utilized or imposed, except that a local agency may require  
             an applicant for a permit to be an owner-occupant or that the  
             property be used for rentals or terms longer than 30 days.  

           9) Removes the provision permitting additional parking upon a  
             finding that additional parking is required related to the  
             use of the ADU and consistent with existing neighborhood  
             standards.  Parking may be provided, however, as tandem  
             parking in an existing driveway.  Offstreet parking shall be  
             permitted in setback areas in locations determined by the  
             local agency or through tandem parking, unless specific  
             findings are made that parking in setback areas or tandem  
             parking is not feasible based upon fire and life safety  
             conditions.

           10)Requires ministerial approval by a local agency for a  
             building permit to create an ADU if the ADU is contained  
             within an existing single-family home, has independent  
             exterior access from the existing residence, and the side and  
             rear setbacks are sufficient for fire safety.  ADUs shall not  
             be required to provide fire sprinklers if they are not  
             required for the primary residence.  

           11)Provides that ADUs shall not be considered new residential  







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             uses for the purposes of calculating private or public  
             utility connection fees, including water and sewer service.

          Comments
          
          Purpose.  According to the author, housing in California is  
          becoming increasingly unaffordable.  The average California home  
          currently costs about 2.5 times the national average home price  
          and the monthly rent is 50% higher than the rest of the nation.   
          Rent in San Francisco, San Jose, Oakland, and Los Angeles are  
          among the top 10 most unaffordable in the nation.  With rising  
          population growth, California must not only provide housing but  
          also ensure affordability. While existing law enables accessory  
          dwellings as a source of housing, recent studies show that local  
          standards, perhaps unintentionally, prevent homeowners from  
          building ADUs with standards like lot coverage, large set-backs,  
          off-street parking, or costly construction requirements. 

          Eliminating barriers to ADU construction is a common-sense,  
          cost-effective approach that will permit homeowners to share  
          empty rooms in their homes and property, add incomes to meet  
          family budgets, and make good use of the property in the Bay  
          Area and across California while easing the housing crisis.  SB  
          1069 approaches the housing crisis by easing regulatory barriers  
          for homeowners who choose to build affordable housing in their  
          own backyards. 

          What are ADUs?  ADUs, also known as accessory apartments,  
          accessory dwellings, mother-in-law units, or granny flats, are  
          additional living spaces on single-family lots that have a  
          separate kitchen, bathroom, and exterior access independent of  
          the primary residence.  These spaces can either be attached to  
          or detached from the primary residence.  

          Relaxing ADU requirements.  According to a UC Berkeley study,  
          Yes in My Backyard: Mobilizing the Market for Secondary Units,  
          second units are a means to accommodate future growth and  
          encourage infill development in developed neighborhoods.   
          Despite existing state law, which requires each city in the  
          state to have a ministerial process for approving second units,  
          the study found that local regulations often impede development.  
           Easing these burdens to permit more ADUs could permit a family  
          to rent out the unit (about 49% of the units) or provide housing  
          for a family member (about 51% of the units).  In fact, the  







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          study found that the average second unit was advertised at a  
          rental rate that makes it affordable to a household earning 62%  
          of the area median income.  About 30% were affordable to  
          households in the very low-income category, and that 49% were in  
          the low-income category.  The study, which evaluated five  
          adjacent cities in the East Bay, concluded that there is a  
          substantial market of interested homeowners; cities could reduce  
          parking requirements without contributing to parking issues;  
          second units could accommodate future growth and affordable  
          housing; and that scaling up second-unit strategy could mean  
          economic and fiscal benefits for cities.  

          Home rule.  Local governments must balance competing priorities  
          when determining the conditions attached to the development of  
          accessory dwelling units.  Cities must look at the potential  
          impacts on the community that result from these units: impaired  
          neighborhood character, spillover effects on nearby homes and  
          businesses due to inadequate parking, and loss of privacy for  
          existing homeowners.  Some local governments have adopted more  
          involved processes for permitting second units to allow for  
          consideration of these important factors.  SB 1069 would prevent  
          local governments from considering these impacts by requiring  
          ministerial permits for many accessory dwelling units.  Without  
          some discretion, elected local leaders will be unable to weigh  
          the tradeoffs between enhanced density that accessory dwelling  
          units may provide and any community problems they create.


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   Yes


          SUPPORT:   (Verified5/11/16)


          Bay Area Council (source)
          AARP
          Abode Services
          American Planning Association - California Chapter
          BHV Center Street Properties, Inc. 
          Bishop Ranch
          Blue Shield of California
          Bridge Housing
          Building Industry Association - Bay Area







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                                                                    Page  8


          California Association of Realtors
          California Building Industry Association
          California Housing Consortium
          California Infill Federation
          California Renters Legal Advocacy & Education Fund
          California State Chamber of Commerce
          Center for Creative Land Recycling
          Chase Communications
          Colliers International
          Comcast
          Cushman & Wakefield
          East Bay Leadership Council
          Eden Housing
          Emerald Fund
          Facebook
          Greenbelt Alliance
          Hanson Bridgett
          HKS
          The Home Depot
          Housing Trust Silicon Valley
          Joint Venture -Silicon Valley Network
          Junius & Rose, LLP
          Kaiser Permanente
          LA-M?s
          Lennar Urban
          Lily Pad Homes
          MacKenzie Communications, Inc.
          Main Street Property Services
          Manatt
          Marvell
          McKinsey & Company
          Natural Resources Defense Council
          Nehemiah Corporation of America
          New Avenue
          Nibbi
          Non-Profit Housing Association of Northern California
          North Bay Leadership Council
          Orange County Business Council
          Pier 39
          PLANT
          Plumbing, Heating and Cooling Contractors
          Polaris Pacific
          Reuben, Junius & Rose, LLP
          Rhodes Planning Group







                                                                    SB 1069  
                                                                    Page  9


          San Francisco Chamber of Commerce
          San Francisco Housing Action Coalition
          San Mateo County Economic Development Association
          Sares Regis Homes
          Scott Weiner, Supervisor - District 8, San Francisco
          SPUR
          Summer Hill Housing Group
          SVAngel
          SV@Home
          Technology Credit Union
          Terner Center for Housing Innovation
          TMG Partners
          The Two Hundred
          UC Berkeley - College of Environmental Design
          UPS
          Virgin America
          Webcor Builders
          Western Center on Law and Poverty


          OPPOSITION:   (Verified5/11/16)


          Association of California Water Agencies
          California State Association of Counties
          Cities of Angels Camp, Cloverdale, Daly City, and Merced
          League of California Cities

          Prepared by:Alison Dinmore / T. & H. / (916) 651-4121
          5/11/16 15:44:20
                                   ****  END  ****