BILL ANALYSIS Ó SB 1069 Page 1 Date of Hearing: August 10, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair SB 1069 (Wieckowski) - As Amended August 1, 2016 ----------------------------------------------------------------- |Policy |Housing and Community |Vote:|6 - 0 | |Committee: |Development | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Local Government | |6 - 2 | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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. SB 1069 Page 2 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 SB 1069 Page 3 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 SB 1069 Page 4 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 SB 1069 Page 5 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. SB 1069 Page 6 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