BILL ANALYSIS                                                                                                                                                                                                    Ó



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          SENATE THIRD READING


          SB  
          1069 (Wieckowski)


          As Amended  August 19, 2016


          Majority vote


          SENATE VOTE:  29-3


           -------------------------------------------------------------------- 
          |Committee       |Votes|Ayes                   |Noes                 |
          |                |     |                       |                     |
          |                |     |                       |                     |
          |                |     |                       |                     |
          |----------------+-----+-----------------------+---------------------|
          |Housing         |6-0  |Chiu, Steinorth,       |                     |
          |                |     |Burke, Chau, Lopez,    |                     |
          |                |     |Mullin                 |                     |
          |                |     |                       |                     |
          |----------------+-----+-----------------------+---------------------|
          |Local           |6-2  |Eggman, Alejo,         |Waldron, Beth Gaines |
          |Government      |     |Bonilla, Chiu, Cooley, |                     |
          |                |     |Linder                 |                     |
          |                |     |                       |                     |
          |----------------+-----+-----------------------+---------------------|
          |Appropriations  |15-3 |Gonzalez, Bloom,       |Bigelow, Jones,      |
          |                |     |Bonilla, Bonta,        |Obernolte            |
          |                |     |Calderon, Daly,        |                     |
          |                |     |Eggman, Eduardo        |                     |
          |                |     |Garcia, Holden, Quirk, |                     |
          |                |     |Santiago, Wagner,      |                     |
          |                |     |Weber, Wood, Chu       |                     |








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


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


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


          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.  


             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  
               zoning designation for the lot. 


          4)Requires a local agency with an ADU ordinance to consider  








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            permits within 120 days of submittal of a complete building  
            permit application. 


          5)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, with a maximum  
               increase in floor area of 1,200 square feet.


             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.








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             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. 


          6)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.


          7)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 an efficiency unit to  
            be constructed in compliance with local development standards.  
             


          8)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  
            applicant for a permit to be an owner-occupant or that the  
            property be used for rentals of 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.  









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


          11)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.


          12)Prohibits a local agency from imposing parking standards for  
            an ADU in any of the following instances:


               i)     The ADU is located within 0.5 mile of public  
                 transit;


               ii)    The ADU is located within an architecturally and  
                 historically significant historic district;


               iii)   The ADU is part of an existing primary residence or  
                 an existing accessory structure;


               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.


          13)Provides that ADUs shall not be considered new residential  
            uses for the purposes of calculating local agency connection  
            fees or capacity charges for utilities, including water and  








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            sewer service.


          14)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.  


             a)   For above-described ADUs contained within an existing  
               single-family home, a local agency shall not require the  
               applicant to install a new or separate utility connection  
               directly between the accessory dwelling unit and the  
               utility or impose a related connection fee or capacity  
               charge


          15)Allows, for ADUs not described in 14) above, a local agency  
            to require a new or separate utility connection directly  
            between the accessory dwelling unit and the utility.   
            Consistent with Government Code Section 66013, the connection  
            may be subject to a connection fee or capacity charge that  
            shall be proportionate to the burden of the proposed ADU,  
            based upon either its size or the number of its plumbing  
            fixtures, upon the water or sewer system.  This fee or charge  
            shall not exceed the reasonable cost of providing this  
            service.


          16)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.


          FISCAL EFFECT:  According to the Senate Appropriations  








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          Committee, pursuant to Senate Rule 28.8, negligible state costs.


          COMMENTS:  


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


          University of California (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  








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          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.  
           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)   Requires a local agency with an ADU ordinance to  
               consider permits within 120 days of submittal of a complete  
               building permit application. 


             c)   Increases the size of an ADU from 30% of the existing  
               dwelling to 50%, with a maximum increase in floor area of  
               1,200 square feet.


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








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             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.   


             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  
          [(Steinberg), Chapter 728, Statutes of 2008] 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. 








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          "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.  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 [University of California, Los Angeles] 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."


          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  








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          by SB 1069 (2016). The state can further increase supply by  
          eliminating overly burdensome requirements for accessory  
          dwelling units identified by AB 2299 [(Wieckowski) of the  
          current legislative session] (2016), such as passageways to  
          public streets and setbacks of five feet from lot lines."


          Related legislation:


          AB 2299 (Bloom) of the current legislative session:  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 is  
          pending on the Senate Floor.


          AB 2406 (Thurmond) of the current legislative session:  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 pending on the Senate  
          Floor.




          Analysis Prepared by:                                             
                          Rebecca Rabovsky / H. & C.D. / (961) 319-2085     
                                                                  FN:  
          0004642











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