MEETING DATE:
December 14, 2021
SUBJECT:
Title
URGENCY ORDINANCE NO. 2021-1510; ORDINANCE NO. 2021-1511 AND RESOLUTION NO. 2021-8965 - SB 9 LOCAL IMPLEMENTATION AND TEXT AMENDMENT TA21-0004; SAN MARCOS MUNICIPAL CODE UPDATE.
Body
Recommendation
Recommendation
ADOPT OR APPROVE, the following, in the order set forth below:
1. ADOPT Statutory Exemption EX 21-029;
2. ADOPT an urgency ordinance amending Title 20, Chapters 20.215, 20.300, and 20.600, and adding Chapter 20.470, and Title 19 adding Chapter 19.44, of the San Marcos Municipal Code to conform with the requirements of the 2021/2022 State Housing Legislation regarding two-unit residential development and urban lot splits;
3. ADOPT a non-urgency ordinance amending Title 20, Chapters 20.215, 20.300, and 20.600, and adding Chapter 20.470, and Title 19, adding Chapter 19.44, of the San Marcos Municipal Code to conform with the requirements of the 2021/2022 State Housing Legislation regarding two-unit residential development and urban lot splits; and
4. ADOPT a resolution adopting objective standards for two-unit residential development and urban lot splits.
The Planning Commission voted 6-1 to recommend Council approval at its meeting on November 30, 2021.
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Board or Commission Action
On November 30, 2021, the Planning Commission met and considered the proposed ordinances and objective standards. The Commission voted 6-1 recommending approval and adoption of the proposed Text Amendment to the City Council, with two modifications which are reflected in redline in the proposed ordinances (Attachment 1). The Planning Commission Draft Meeting Minutes are attached (Attachment 2).
Relevant Council Strategic Theme
Good Governance
Relevant Department Goal
N/A
Executive Summary
This action requests that the City Council amend the San Marcos Municipal Code ("SMMC") and adopt objective standards to implement recently enacted housing legislation, Senate Bill 9, (“SB 9”). SB 9 requires that proposed housing developments of no more than two residential units per parcel within a single-family residential zone, and urban lot splits meeting certain requirements, be approved ministerially by local agencies. Local agencies, including charter cities, are required to comply with the ministerial approval requirements, but may adopt certain limited standards and local requirements. The proposed ordinances would add SMMC Chapters 20.470, “Two-Unit Residential Developments in Single-Family Zones,” and Chapter 19.44, “Urban Lot Split Subdivision Requirements,” and amend SMMC Chapters 20.215, 20.300, and 20.600 to conform with SB 9. The Resolution would adopt objective standards for two-unit residential developments and urban lot splits, as permitted by SB 9, and would allow standards to be updated administratively by the Development Services Director.
The Governor signed the bill into law on September 16, 2021, and the law becomes effective January 1, 2022. The two proposed ordinances are substantively identical with respect to implementation of SB 9. One is proposed to be introduced by City Council on an urgency basis pursuant to Government Code Section 36934 to ensure that the ordinance is effective prior to January 1, 2022, to protect public peace, health and safety to the maximum extent possible and to ensure SB 9 implementation provisions are in place prior to the January 1, 2022 effective date of the legislation, and would require a 4/5ths vote of the City Council. The second ordinance is proposed to be introduced as a regularly-enacted ordinance.
Discussion
1. Background
California is experiencing, and the Legislature has declared, a housing shortage and affordability crisis. Estimates indicate a shortage of 3-4 million units, and the state ranks 49th in terms of housing units per resident. In 2021, the median cost of a single-family home in California has risen above $800,000 and the median rent for a two-bedroom apartment in San Diego is $2,254. State lawmakers have become increasingly concerned with the housing shortage and have adopted dozens of housing related bills in response to the crisis.
Senate Bill 9 was introduced in response to the above and becomes effective on January 1, 2022. Subject to limited exceptions, the bill requires cities and counties to ministerially approve a housing development containing two residential units of at least 800 square feet each on an individual parcel in single-family zones. The bill also requires local governments to ministerially approve an urban lot split for properties in single-family zones, creating two independent lots that may be sold separately so long as each resulting lot is at least 1,200 square feet and are approximately the same size as each other. The bill includes required restrictions regarding such developments and allows local jurisdictions to adopt regulations relating to certain limited aspects of housing developed on single family zoned parcels under this new law. Although SB 9 preempts City regulations that would prevent development of two 800 square foot homes per lot, it does not override any private land use restrictions. Contrary to earlier legislation relating to Accessory Dwelling Units that expressly preempted inconsistent provisions of private covenants, SB 9 does not. A copy of the Bill text is included with this report as Attachment 3, for the City Council’s reference.
2. SB 9 Requirements
A. Residential Units
SB 9 adds section 65852.21 to the Government Code. That section requires local agencies to ministerially approve a housing development of no more than two units proposed to be developed within a single-family residential zone, if the proposed housing development meets certain requirements. SB 9 allows local agencies a very limited amount of local control. The SB 9 requirements and local regulation options are detailed below.
Developments Entitled to Ministerial Approval
Proposed housing developments containing no more than two units within a single-family residential zone must be approved ministerially, without discretionary review or a hearing, if the following conditions are met:
1. The proposed development does not require demolition or alteration of housing subject to a recorded covenant, ordinance, or law that restricts rent based on income; housing subject to any form of rent control; and housing that has been occupied by a tenant in the last three years.
2. The current parcel owner has not exercised owner’s rights under Chapter 12.75 of Division 7 of Title 1 to withdraw accommodations from rent or lease within 15 years of a submitted application.
3. The proposed development would not result in the demolition of more than 25 percent of the existing exterior structural walls, unless the site has not been occupied by a tenant in the last three years.
4. The development is not located within a local or state historic district or property or is a city or county landmark.
5. The development is not located on:
• Prime farmland or farmland of statewide importance or land zoned or designated for agricultural protection or preservation by a local, voter approved ballot measure.
• Wetlands.
• A high fire severity zone. Excludes sites that have adopted fire hazard mitigation measures as San Marcos has done.
• A hazardous waste site.
• Within a special flood hazard unless the site meets FEMA minimum flood plain management requirements.
• Within a regulatory floodway.
• Lands identified for conservation.
• Habitat for protected species identified as candidate, sensitive, or species of special status by state or federal agencies, or fully protected species.
• Lands under conservation easement.
Short Term Rentals
SB 9 requires cities to ban short term rentals in any unit created pursuant to SB 9. All rental terms in such units must be for a term longer than 30 days.
Objective Zoning, Subdivision, and Design Review Standards
Cities may not impose zoning, subdivision, or design review standards that would have the effect of precluding construction of up to two-units on a parcel zoned for single-family residences, or that would preclude either unit from being at least 800 square feet in floor area. Any standards required by the City as a condition of approval must be objective and made available to both developer and City officials prior to application submission. Objective standards meeting the legislative restrictions are included within the agenda packet and are proposed for consideration.
Applications may be denied if there is a finding that the proposed development would have a specific, adverse impact upon public health and safety or the physical environment.
Setbacks and Duplexes
A city may not require setbacks of more than four feet from the property lines and may not require that the new structure be in the same location and to the same dimensions as an existing structure. Additionally, a city may not reject an application because it proposes adjacent or connected structures so long as those structures may be separately conveyed. The proposed ordinances contain a setback of 4 feet from property lines.
Parking
Cities may require off-street parking of up to one space per unit, unless the parcel is within one-half mile walking distance of a high-quality transit corridor or major transit stop, or there is a car share vehicle located within one block of the parcel. The proposed ordinance requires one off-street parking space per unit.
Accessory Dwelling Units (“ADUs”) and Junior Accessory Dwelling Units (“JADUs”)
The state recently passed legislation allowing the development of ADUs and JADUs in single-family zones, pursuant to Gov. Code § 65852.2 and 65852.22. SB 9 provides that local agencies are not required to allow both ADUs/JADUs on parcels that have been developed pursuant to SB 9. Staff recommends that this restriction be included at this time. The proposed ordinances would preclude construction of an ADU/JADU on a parcel containing a two-unit residential development pursuant to SB 9, but would allow one ADU/JDU on a parcel created subject to the urban lot split subdivision provisions with only one primary dwelling unit only.
B. Urban Lot Splits
SB 9 also added section 66411.7 to the Government Code. That section requires ministerial approval for an urban lot split if the parcel map meets certain requirements. Like section 65852.21, this section allows only limited regulation by local agencies. The requirements and local regulatory opportunities are listed below.
Lot Splits Requiring Ministerial Approval
Under SB 9, a local agency is required to ministerially approve a parcel map for an urban lot split if it determines that the following conditions are met:
1. The proposed development does not require demolition or alteration of housing subject to a recorded covenant, ordinance, or law that restricts rent based on income; housing subject to any form of rent control; and housing that has been occupied by a tenant in the last three years.
2. The current parcel owner has not exercised owner’s rights under Chapter 12.75 of Division 7 of Title 1 to withdraw accommodations from rent or lease within 15 years of a submitted application.
3. The parcel map subdivides an existing parcel to create no more than two new parcels of approximately equal lot area provided that one parcel shall not be smaller than 40 percent of the lot area of the original parcel proposed for subdivision.
4. Both newly created parcels are no smaller than 1,200 square feet.
5. The parcel is located within a single-family residential zone.
6. Proposed split conforms to all applicable objective requirements of the Subdivision Map Act except as otherwise expressly provided in SB 9.
7. Applicant is not a “community land trust,” or a “qualified nonprofit corporation.”
8. The owner of the parcel being subdivided or any person acting in concert with the owner has not previously subdivided an adjacent parcel using an urban lot split.
9. Parcel was not established through a prior exercise of an urban lot split.
10. Parcel is not located within a local or state historic district or property or is a city or county landmark.
11. The development is not located on:
• Prime farmland or farmland of statewide importance or land zoned or designated for agricultural protection or preservation by a local, voter approved ballot measure.
• Wetlands.
• A high fire severity zone. Excludes sites that have adopted fire hazard mitigation measures.
• A hazardous waste site.
• Within a special flood hazard unless the site meets FEMA minimum flood plain management requirements.
• Within a regulatory floodway.
• Lands identified for conservation.
• Habitat for protected species identified as candidate, sensitive, or species of special status by state or federal agencies, or fully protected species.
• Lands under conservation easement.
Permitted Uses
Parcels created pursuant to SB 9 are only for residential use. Additionally, all applicants for an urban lot split must sign an affidavit stating that the applicant intends to occupy one of the housing units as their principal residence for a minimum of three years from the date of the approval of the urban lot split.
Objective Zoning, Subdivision, and Design Review Standards
Objective standards applicable to the additional residential units are also applicable to urban lot splits. When approving the urban lot splits, local agencies may additionally require easements necessary for the provisions of public services and facilities and may require that both parcels have access to, provide access to, or adjoin the public right-of-way. The proposed SMMC revisions would preserve the requirement for public service and facilities easements, and access to the public right of way.
C. Very High Fire Hazard Zones
SB 9 prohibits two-unit developments and urban lot splits in very high fire hazard zones, unless the development or parcel complies with existing fire mitigation measures. In concert with the Cal Fire, San Marcos has created a map of high fire hazard zones. Applicants in these zones must comply with all local, county, state, and federal fire mitigation measures as a condition for approval. If mitigation measures are not feasible in certain areas, developments or lot splits pursuant to SB 9 will not be approved in those areas.
3. Proposed City Council Action
In response to the SB 9 legislation, City staff is recommending that the City Council take four actions tonight: (i) adopt an a CEQA finding of exemption as provided by the statute; (ii) adopt an urgency ordinance; (Iii) introduce a regularly-enacted ordinance; and (iv) adopt a resolution. The two proposed ordinances are substantively identical and will result in amending SMMC Titles 19 and 20 to exercise the local control afforded to cities by SB 9. The regularly-enacted ordinance will require a second reading, and will go into effect 30 days after that reading (the effective date would be February 3, 2022, if the ordinance is introduced tonight and has its second reading at the next City Council meeting on January 4th). Because SB 9 goes into effect on January 1, 2022, City staff is also recommending that the City Council adopt an urgency ordinance that would go into effect immediately, to cover the period between January 1st and the effective date of the regularly-enacted ordinance.
The City is authorized to adopt an urgency ordinance under Government Code sections 36934 and 36937, which permits such action on 4/5ths vote of the City Council, for the immediate preservation of the public peace, health or safety. Staff is recommending adoption of the urgency ordinance to provide clear implementing guidelines and requirements for potential applicants, to ensure that residents of SB 9 developments have sufficient parking available, and access to necessary public services, utilities, and the public right-of-way, and to allow the City to retain the limited local control that is available, to provide for development in a manner that best serves the public good and the needs of its residents.
The proposed resolution would adopt standards consistent with SB 9. The resolution would be effective immediately and would allow City staff to impose certain design, subdivision, and zoning standards on SB 9 developments, and could be updated, as needed, administratively by the Development Services Director. Although the resolution itself was not before the Planning Commission, the Commission did review and discuss the proposed standards which the resolution proposes to adopt, and had no recommended revisions to them. City staff is recommending a modification to clarify the areas in which the Standards will apply. The standards, as presented to the Commission, with the recommended modifications reflected in redline, are included as Attachments 4 and 5. A corresponding modification is also recommended for the proposed Chapter 19.44; it is reflected in redline in Attachment 1. These modifications do not affect the City’s Zoning Ordinance (Title 20).
Environmental Review
This Ordinance is exempt from the provisions of the California Environmental Quality Act (“CEQA”) pursuant to Government Code Sections 65852.21(j) and 66411.7(n), because the adoption of an ordinance to implement SB 9 shall not be considered a project under Division 13 of the Public Resources Code.
Fiscal Impact
There is no direct fiscal impact due to the adoption of this ordinance.
Attachment(s)
Exhibit A - Urgency Ordinance Amending SMMC Titles 19 and 20
Exhibit B - Ordinance Amending SMMC Titles 19 and 20
Exhibit C - Resolution Adopting Objective Standards Pursuant to SB 9
Attachment 1 - Proposed Amendments to SMMC Titles 19 and 20 - Redlined Version
Attachment 2 - Planning Commission Meeting Minutes - November 30, 2021 Special Meeting
Attachment 3 - SB 9 Bill Text
Attachment 4 - Objective Standards for Two Unit Residential Development
Attachment 5 - Objective Standards for Urban Lot Splits
Attachment 6 - Notice of Exemption EX21-029
Prepared/Submitted by: Joseph Farace, Planning Division Director
Reviewed by: Isaac Etchamendy, Development Services Director
Approved by: Jack Griffin, City Manager