BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    SB 1069  


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          Date of Hearing:  August 10, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          SB 1069  
          (Wieckowski) - As Amended August 1, 2016


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          |Policy       |Housing and Community          |Vote:|6 - 0        |
          |Committee:   |Development                    |     |             |
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          |             |Local Government               |     |6 - 2        |
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          Urgency:  No  State Mandated Local Program:  YesReimbursable:   
          No


          SUMMARY: This bill makes a number of changes to state law  
          regarding second units.  Specifically, this bill:  


          1)Replaces the term "second unit" with "accessory dwelling unit"  
            in sections of housing law.








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          2)Requires, if a local agency provides by ordinance for the  
            creation of accessory dwelling units (ADUs) in single-family  
            and multifamily residential zones, the ordinance to;  a)  
            designate areas within the jurisdiction of the local agency  
            where ADUs may be permitted; b) impose standards on ADUs; and  
            c) provide that ADUs do not exceed the allowable density and  
            are 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)Requires a local agency that has not adopted an ADU ordinance  
            to approve or disapprove a permit application ministerially  
            without discretionary review, unless it adopts an ordinance  
            within 90 days, after receiving the application. Requires  
            every local agency to ministerially approve the creation of an  
            ADU, if certain conditions are met.


          5)Requires a local agency to ministerially approve an  
            application for a building permit to create within a  
            single-family residential zone one ADU per single-family lot,  
            if the unit is contained within the existing space, has  
            independent exterior access from the existing residence, and  
            the side and rear setbacks are sufficient for fire safety.   
            Prohibits a local agency from requiring an applicant to  
            install a new or separate utility connection directly between  
            the ADU and the utility, or impose a related connection fee  
            capacity charge in these cases.


          6)For ADUs not described in 5) above, allows a local agency to  
            require a new or separate utility connection directly between  








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            the ADU and the utility.  The connection may be subject to a  
            connection fee or capacity charge that is proportionate to the  
            burden of the proposed ADU on the water or sewer system.  
            Prohibits the fee or charge from exceeding the reasonable cost  
            of providing the service.


          7)Prohibits ADUs from being considered new residential uses for  
            the purposes of calculating private or public utility  
            connection fees, including water and sewer service.


          FISCAL EFFECT:


          Negligible state fiscal impact.  Although a state mandate, costs  
          are not reimbursable because an Agency has authority to levy  
          fees sufficient to cover any costs. 


          COMMENTS:


          1)Purpose.  According to the author, "Accessory dwellings  
            provide part of the solution to the 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.


            "ADUs - referred to in existing law as second units - are  
            additional living quarters on single-family lots that are  
            independent of the primary dwelling unit. These units are  
            inherently affordable - costing as little as $10,000 to  
            $200,000 or 50-90% less to build than conventional infill  
            development. Under existing law, any property owner has the  








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            ability to construct an ADU on their property should they meet  
            certain zoning and building requirements. However, a  
            significant number of homeowners are prevented from  
            constructing these units due to the layers of zoning and  
            regulatory barriers such as lot size, setbacks, independent  
            off-street parking, and costly duplicative fees.  For example,  
            most local agencies treat accessory dwellings like a "new  
            development" and require sprinklers and new service fees that  
            can double the cost of building the unit itself (adding fee  
            costs of $10,000-75,000/unit) which unreasonably burdens  
            owners trying to add this low-cost, green, infill form of  
            housing."


          2)Background. Also known as accessory apartments, 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 person, or more.  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.


            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  








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            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.  


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


          3)Administration Support.  According to the Governor's 2016-17  
            May Revision:


               "The Administration is also supportive of other initiatives  
               to increase housing supply where such initiatives do not  
               create a state reimbursable mandate. This includes using  
               inventory such as accessory dwelling units (additional  
               living quarters on single-family lots that are independent  
               of the primary dwelling unit)?.. Policies can increase the  
               availability of accessory dwelling units with expanded  
               ministerial approval, shortened permitting timelines,  
               reduced duplicative fees, and relaxed parking requirements,  
               consistent with the principles identified by SB 1069  
               (2016). The state can further increase supply by  
               eliminating overly burdensome requirements for accessory  
               dwelling units identified by AB 2299 (2016), such as  
               passageways to public streets and setbacks of five feet  
               from lot lines."


          4)Current Legislation.










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             a)   AB 2299 (Bloom), pending on the Senate Floor, requires,  
               rather than permits, 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. 


             b)   AB 2406 (Thurmond), pending on the Senate Floor, allows  
               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.  


          


          Analysis Prepared by:Jennifer Swenson / APPR. / (916)  
          319-2081