BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 1069| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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: SB 1069 Page 2 1) Defines "second unit" as an attached or a detached 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. SB 1069 Page 3 5) Provides that no local agency may adopt an ordinance that totally precludes second units unless the ordinance contains 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 SB 1069 Page 4 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 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. SB 1069 Page 5 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 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 SB 1069 Page 6 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 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, SB 1069 Page 7 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 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) SB 1069 Page 8 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 California Association of Realtors California Building Industry Association California Chamber of Commerce California Housing Consortium California Infill Federation California Renters Legal Advocacy & Education Fund 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 SB 1069 Page 9 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 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: (Verified5/16/16) Association of California Water Agencies California State Association of Counties Cities of Angels Camp, Cloverdale, Daly City, Lakewood, and Merced League of California Cities Ventura Council of Governments Prepared by:Alison Dinmore / T. & H. / (916) 651-4121 5/16/16 10:12:38 SB 1069 Page 10 **** END ****