BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    SB 1069


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          Date of Hearing:  June 15, 2016


               ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT


                                  David Chiu, Chair


          SB  
          1069 (Wieckowski) - As Amended April 26, 2016


          SENATE VOTE:  29-3


          SUBJECT:  Land use:  zoning


          SUMMARY:  Establishes required components and maximum standards  
          for local ordinances that permit accessory dwelling units  
          (ADUs), and revises requirements for the approval or disapproval  
          of an ADU application when a local agency has not adopted an  
          ordinance.


          Specifically, this bill:  





          1)Makes legislative findings and declarations regarding the  
            importance of ADUs as an essential element of the state's  
            housing supply.


          2)Replaces "second units" with "ADUs" throughout the chapter.









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          3)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.  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 not  
                 offered to the occupant of the ADU; or


               v)     When there is a car-share vehicle located within one  
                 block of the ADU.


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








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               zoning designation for the lot. 


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


          5)Provides that a local agency that has not adopted an ADU  
            ordinance shall approve or disapprove a permit application  
            ministerially without discretionary review, unless it adopts  
            an ordinance within 90 days after receiving the application. 


          6)Requires a local agency that has not adopted an ADU ordinance  
            to ministerially 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.










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             f)   The total area floor space of the ADU shall not exceed  
               1,200 square feet. 


             g)   Requirements relating to height, setback, lot coverage,  
               architectural review, site plan review, fees, charges, and  
               other zoning requirements generally applicable to  
               residential construction in the zone in which the property  
               is located.


             h)   Local building code requirements, that apply to detached  
               dwellings as appropriate.


             i)   Approved by the local health officer where a private  
               sewage disposal system is being used. 


          7)Removes the exemption for a local agency to adopt an ADU  
            ordinance 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.


          8)Provides that a local agency may establish maximum and minimum  
            unit size requirements for both attached and detached ADUs,  
            however 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.  


          9)Provides that no additional standards, other than those in  
            this section, shall be utilized or imposed to evaluate  
            proposed ADUs, except that a local agency may require an  








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            applicant for a permit to be an owner-occupant or that the  
            property be used for rentals of terms longer than 30 days.  


          10)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.  


          11)States that parking requirements may be provided as tandem  
            parking in an existing driveway.  


          12)Provides that offstreet parking must 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.


          13)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.  





          14) 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.











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          15)Provides that no reimbursement is required because a local  
            agency or school district 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:   


          1)Defines "second unit" as an attached or a detached residential  
            dwelling unit, which provides complete independent living  
            facilities for one or more persons.  


          2)Provides that a second unit must include permanent provisions  
            for living, sleeping, eating, cooking, and sanitation on the  
            same parcel as the single-family dwelling is situated.  


          3)Permits a local agency, by ordinance, to provide for the  
            creation of second units in single-family and multifamily  
            residential zones as specified.  


          4)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. 


          5)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. 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  








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            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 relating to height, setback, lot coverage,  
               architectural review, site plan review, fees, charges, and  
               other zoning requirements generally 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. 








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          6)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. 


          7)Provides that a local agency may establish maximum and minimum  
            unit size requirements for both attached and detached second  
            units.  


          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. 


          9)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.   
            (Government Code Section 65852.2)


          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.


          COMMENTS:  


           Background:   ADUs, which are referred to in existing law as  








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          "second units", are additional living quarters on single-family  
          lots that are independent of the primary dwelling unit. Also  
          known as accessory apartments, accessory dwellings,  
          mother-in-law units, or granny flats, ADUs are either attached  
          or detached to the primary dwelling unit, and provide complete  
          independent living facilities for one or more person.  This  
          includes permanent provisions for living, sleeping, eating,  
          cooking, and sanitation. 


          In 2002, AB 1866 (Wright) (Chapter 1062, Statutes of 2002),  
          required local governments to use a ministerial process for  
          approving ADUs,  notwithstanding other laws that regulate the  
          issuance of variances or special use permits. A local government  
          may provide for the construction of ADUs by ordinance, and may  
          designate areas where ADUs are allowed, as well as require  
          standards for parking, setback, lot coverage, and maximum size.   
          If a local government has not adopted an ordinance governing  
          ADUs, it must grant a variance or special use permit for the  
          creation of ADUs if the unit complies with requirements  
          specified in statute, including size and zoning restrictions.


           UC Berkeley ADU study:   According to a UC Berkeley study,  Yes in  
          My Backyard: Mobilizing the Market for Secondary Units  by Karen  
          Chapple, second units are a means to accommodate future growth  
          and encourage infill development in developed neighborhoods.   
          The study, which evaluated five adjacent cities in the East Bay,  
          concluded that there is 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.  


          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.  








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           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. 


          This bill implements several policy recommendations from this  
          study by easing the most significant barriers to the  
          construction and permitting of ADUs.  These changes include:  


             a)   Provides alternatives and exceptions to parking  
               requirements, such as the case of an ADU located near  
               public transit or if the ADU is part of an existing  
               dwelling.


             b)   Shortens the review period of an application for an ADU  
               building permit from 120 days to 90 days.


             c)   Increases the size of an ADU from 30% of the existing  
               dwelling to 50%.


             d)   Removes the ability for a local agency to adopt an  
               ordinance that completely precludes the construction of  
               ADUs. 


             e)   Requires ministerial approval of an ADU contained within  
               an existing single-family home that has independent access  
               from the existing residence and has rear and side setbacks  
               sufficient for fire safety, and removes the requirement for  
               an ADU to have fire sprinklers if they were not required  
               for the primary residence.   









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             f)   Allows a local agency to require an applicant for a  
               permit to be an owner-occupant or that the property be used  
               for rentals of terms longer than 30 days.


           Need for this bill:  According to the author,


           


            "In a 2015 Legislative Analyst's Office report, the  
            Legislature was advised to facilitate the development of  
            significantly more private homes and apartments in California.  
             The lack of housing in California has caused a crisis harming  
            communities and families throughout the state.  The average  
            California home currently costs about two and half times the  
            national average home price. A person earning minimum wage  
            must work three full-time jobs in order to afford a  
            two-bedroom unit. In California's more heavily populated  
            metropolitan areas, a minimum wage worker would have to pick  
            up a fourth and fifth job to afford the same two-bedroom unit.  
            Throughout the state, the bottom 25% of income earners spends  
            67% of their income on housing. The high cost of housing is  
            one of the biggest drivers of institutional and generational  
            poverty cycles and will not be resolved until more housing can  
            be developed, especially close to jobs and schools which is  
            consistent with State SB 375 Climate Change Planning Goals.  
            The Legislative Analyst's Office has advised that it is  
            imperative the Legislature facilitate the development of  
            significantly more housing to address the affordability  
            crisis. 





            "Accessory dwellings provide part of the solution to the  








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            housing crisis.  They are the only source of housing that can  
            be added within a year at an affordable price, in existing  
            developed communities served by infrastructure consistent with  
            SB 375, without public subsidy, and action by the State on a  
            few issues will make this possible for tens of thousands of  
            owners to immediately benefit  and  help their communities.  The  
            importance of ADUs as a critical source of infill housing and  
            the barriers preventing them have been documented in studies  
            from UC Berkeley and UCLA including  Yes in My Backyard  by  
            Karen Chapple. 


            "SB 1069 proposes a common-sense, cost-effective approach that  
            will allow homeowners to share empty rooms in their homes and  
            property, add incomes to meet family budgets, improve the  
            safety of accessory dwellings, and make good use of existing  
            infill property across California while easing the housing  
            crisis. The Governor supported the bill on page 52 of the May  
            Revision of the 2016 Budget, stating that this bill will  
            increase the state's housing supply without creating a state  
            reimbursable mandate."


           Arguments in support:


           Supporters point out that ADUs are one of the only widely  
          supported approaches to get thousands of low cost units on the  
          market fast.  They point to studies indicating ADUs cost less to  
          build and rent for less than new market rate housing, thus  
          providing lower cost and low-carbon footprint homes in existing  
          neighborhoods consistent with architectural traditions.  The  
          Planning and Conservation League states that building small  
          units on existing residential lots uses land efficiently, and  
          "second-unit residents are more likely to live without a car  
          than the overall population living near transit."  Supporters  
          also point out that some cities have already approved  
          legislation to facilitate the development of ADUs, including  
          Berkeley, Oakland, San Francisco and Santa Cruz, and that  








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          Massachusetts and Hawaii are considering similar legislation.


           Arguments in opposition:


          Opponents argue that the bill is so prescriptive that it removes  
          any local land use flexibility and limits the public engagement  
          process in regards to ADUs.  Some opponents take issue with  
          prohibiting a local government from imposing parking standards  
          when an ADU is within  mile of "public transit". The California  
          Association of Counties (CSAC), which has an oppose unless  
          amended position, suggests, among other things, amending the  
          bill "so that it precludes parking requirements when a second  
          unit is being constructed within half a mile of a high-quality  
          transit stop. It is unreasonable to assume that potential  
          tenants will not need adequate parking that does not impact the  
          existing surrounding community if he/she does not have access to  
          robust transit options."





          Opponents also point out that, since the bill prohibits an ADU  
          from being considered a new residential unit for purposes of  
          calculating utility connection fees, it could result in rate  
          hikes to existing utility customers.  The cumulative impact of  
          these new units on a water or sewer system could create  
          financial strains for utility agencies, which could result in  
          rate hikes on existing customers.


           Staff comment:   Under the current version of this bill, ADUs  
          cannot be considered new residential uses for the purposes of  
          calculating private or public utility connection fees.   
          According to the author, the intent of this provision is not to  
          prohibit any utility fees from being charged on ADUs.  Rather,  
          it is to ensure that "some utility and hook-up fees can be  








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          charged provided that these are calibrated to reflect the actual  
          impact of an accessory dwelling on an existing lot that already  
          has utility service, landscaping, and a primary dwelling."  


          The author states that "many ADUs can be constructed by  
          connecting to existing utilities and will not result in total  
          occupancy greater than the designed density of an otherwise  
          under-occupied single family home.  The bill allows local  
          homeowners to hook up to existing utilities directly with meters  
          should they choose to do so in which case they would pay for the  
          hookup.  When fees are charged to ADUs for utility connections,  
          the bill does not allow accessory dwellings to be charged fees  
          as if they were an entirely new land use (like a new home on a  
          new lot).  The bill does allow fees to be charged which are  
          reasonably related to the impact of the ADU on utility  
          services."  


          The Committee may wish to consider amending this provision to  
          better reflect the author's intent.


           This bill and AB 2299:   AB 2299 (Bloom), which has been referred  
          to the Senate Committee on Transportation and Housing and the  
          Senate Committee on Governance, requires cities to adopt  
          ordinances for the creation of second units, and prohibits those  
          ordinances from imposing parking standards when the second unit  
          is within 1/2 mile of a shopping or transit center, or is within  
          a historic district.  It also makes changes to setback and  
          replacement parking provisions.  In comparison, SB 1069 does not  
          require cities to adopt an ADU ordinance, but does prohibit  
          cities from imposing parking standards for ADUs that meet  
          certain requirements. This bill also does not include the  
          setback or replacement parking provisions found in AB 2299, but  
          makes several other changes to ADU standards. Both bills repeal  
          a local government's ability to prohibit second units. The  
          Committee may wish to consider how these bills will interact  
          should both become law.








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           Committee amendment:


           According to the author, the intent of this bill is to prohibit  
          a local government, regardless of whether it has adopted an  
          ordinance that provides for the creation of ADUs, from imposing  
          parking standards on ADUs 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 not offered  
          to the occupant of the accessory dwelling unit; or


          v)When there is a car-share vehicle located within one block of  
          the ADU.


          The Committee may wish to consider making an amendment that will  
          clarify the above provision applies to all local governments,  
          regardless of whether an ordinance providing for the creation of  
          ADUs has been adopted.










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           Related legislation:


           AB 2299 (Bloom): Would require, rather than permit, a local  
          government to adopt an ordinance for the creation of second  
          units in single-family and multifamily residential zones. Would  
          restrict the standards local governments may impose on second  
          units by prohibiting imposition of parking requirements on  
          second units within a half-mile of transit, shopping, or within  
          a historic district, constraining the setbacks that local  
          governments may require, and repealing ability to prohibit  
          second units. This bill has been referred to the Senate  
          Committee on Transportation and Housing and the Senate Committee  
          on Governance and Finance.


          AB 2406 (Thurmond): Would allow local agencies to adopt an  
          ordinance that authorizes the construction of "junior accessory  
          dwelling units" of 500 square feet or less and includes  
          standards that local agencies may adopt regarding those units.   
          This bill is in the Senate Committee on Transportation and  
          Housing pending hearing.  


            Double referred:  If SB 1069 passes this committee, the bill will  
          be referred to the Committee on Local Government.


          REGISTERED SUPPORT / OPPOSITION:




          Support


          Bay Area Council (sponsor)










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          AARP


          American Planning Association of California (if amended)


          Bay Area Building Industry Association 


          BHV CenterStreet Properties, Inc.


          Bishop Ranch 


          Blue Shield of California 


          Bridge Housing 


          California Association of Realtors


          California Building Industry Association


          California Chamber of Commerce


          California Council for Affordable Housing


          California Housing Consortium


          California Renters Legal Advocacy & Education Fund 










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          California Rural Legal Assistance Foundation


          Center for Creative Land Recycling 


          Chase Communications


          City and County of San Francisco


          City of Berkeley


          City of Los Angeles


          City of Oakland


          Colliers International 


          Comcast


          Cushman & Wakefield 


          East Bay Leadership Council 


          Eden Housing


          Emerald Fund










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          Facebook 


          Greenbelt Alliance


          Greenberg Traurig


          Hallisey and Johnson Law


          Hanson Bridgett


          HKS Architects


          Housing Trust Silicon Valley


          Individuals (1)


          Jennifer Hernández, Holland & Knight


          Joint Venture Silicon Valley Network 


          Karen Chappelle, Professor, College of Environmental Design,  
          City and Regional Planning, UC Berkeley


          LA-Más 


          Lennar Urban









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          Lenny, Mendonca, McKinsey & Company


          Lilypad Homes


          Local Government Control Commission


          Los Angeles Area Chamber of Commerce


          MacKenzie Communications, Inc.


          Main Street Property Services


          Manatt, Phelps & Phillips LLP 


          Marvell


          Montezuma Wetlands, LLC


          Nehemiah Corporation of America


          New Avenue Homes


          NHA Advisors


          Nibbi









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          Nonprofit Housing Association of California


          North Bay Leadership Council 


          Nossaman LLP


          Oakland Chamber of Commerce


          Orange County Business Council


          Paavo Monkkonen Ph.D., Department of Urban Planning, UCLA


          Pier 39


          Planning and Conservation League


          PLANT Construction Company, L.P.


          Polaris Pacific


          Radiant Brands


          Read Investments


          Redondo Beach Chamber of Commerce









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          Reuben, Junius & Rose, LLP


          Rhoades Planning Group


          Richard Rosenberg, Chairman and CEO (RET.) Bank of America


          San Francisco Chamber of Commerce


          San Francisco Housing Action Coalition


          San Mateo County Economic Development Association


          SARES, REGIS Group


          Silicon Valley Leadership Group


          SPUR


          SV@Home


          SVAngel


          TechCU


          The Home Depot









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          The Two Hundred


          TMG Partners


          Turner Center for Housing Innovation, UC Berkeley


          United Parcel Service


          Virgin America


          Webcor Builders


          Western Center on Law & Poverty




          Opposition


          Association of California Water Agencies


          California State Association of Counties (unless amended)


          City of Angels Camp


          City of Brentwood










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          City of Burbank


          City of Camarillo


          City of Clearlake


          City of Cloverdale


          City of Commerce


          City of Daly City


          City of Dublin


          City of Goleta


          City of La Miranda


          City of Laguna Hills


          City of Lakeport


          City of Lakewood


          City of Lodi










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          City of Los Banos


          City of Manteca


          City of Merced


          City of Mill Valley


          City of Placerville


          City of Rancho Cucamonga


          City of Rancho Palo Verdes


          City of Redding


          City of Riverbank


          City of Roseville


          City of San Carlos


          City of San Clemente


          City of San Rafael










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          City of South Gate


          City of Sunnyvale


          City of Tehama


          City of Thousand Oaks


          City of Torrance


          League of California Cities


          Ventura Council of Governments







          Analysis Prepared by:Rebecca Rabovsky / H. & C.D. / (916)  
          319-2085