Item F-3 Agenda Report — Beverly Hills City Council, November 15, 2022

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AGENDA REPORT
Meeting Date: November 15, 2022
Item Number:

To: Honorable Mayor & City Council
From: Timothea Tway, AICP, City Planner
Subject: AN ORDINANCE OF THE CITY OF BEVERLY HILLS EXTENDING INTERIM ORDINANCE NO. 21-O-2853 TO PROVIDE OBJECTIVE
STANDARDS FOR SENATE BILL 9 PROJECTS IN SINGLE-FAMILY

RESIDENTIAL ZONES, DECLARING THE URGENCY THEREOF,

AND MAKING A DETERMINATION OF EXEMPTION UNDER THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
Attachments: 1. Interim Ordinance No. 21-O-2853

2. Ordinance No. 21-O-2856 (Previous Extension of Interim Ordinance)

3. Draft Ordinance to Extend Interim Ordinance

4. Agenda Report – December 7, 2021 City Council Meeting

RECOMMENDATION
It is recommended that the City Council extend Interim Ordinance No. 21-O-2853 that established objective development standards for projects in single-family residential zones constructed pursuant to Senate Bill (SB) 9. Staff recommends that the City Council extend such interim ordinance for an additional one-year period, pursuant to Government Code Section 65858, which would extend the interim ordinance until December 6, 2023.

INTRODUCTION
At its December 7, 2021, meeting, the City Council voted to adopt an interim ordinance (Ordinance No. 21-O-2853, Attachment 1) that created objective standards for SB 9 residential development projects. The standards apply to the ministerial review and approval of a two-lot subdivision (“urban lot split”) and/or development projects with up to two units per lot in singlefamily residential zones constructed pursuant to SB 9 regulations. The interim ordinance adopted on December 7, 2021 took effect immediately, and was in effect for an initial 45-day period. On January 18, 2022, the City Council adopted Ordinance No. 21-O-2856 (Attachment 2), which extended the interim ordinance for an additional ten (10) month and fifteen (15) day F-3
Meeting Date: November 15, 2022

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period, resulting in an expiration date of December 6, 2022. Attachment 3 contains an ordinance that would extend the interim ordinance for an additional one-year period, with a new expiration date of December 6, 2023, in order to provide additional time for continued study of the potential effects of enacting such regulations, and to provide an opportunity to develop permanent regulations with the Planning Commission and City Council.

DISCUSSION
SB 9 was signed by Governor Gavin Newsom on September 16, 2021. SB 9 requires ministerial approval of a two-lot subdivision (referred to as an “urban lot split”) and/or development projects for up to two units per lot in single-family zones. SB 9 supersedes several City regulations regarding single-family residential subdivision and development standards; however, the bill does preserve some authority for local jurisdictions enact regulations through the adoption of new and objective zoning regulations. SB 9 went into effect on January 1, 2022. A proposed two-lot subdivision or two-unit development must meet certain requirements in order to qualify for the ministerial approval process outlined in SB 9. The lot must be located in a single-family residential zone and within an “urbanized area.” The definition of an urban area applies to the city of Beverly Hills.

At its November 2, 2021 Study Session Meeting, the City Council discussed the regulations of SB 9 and its potential impacts on the single-family residential zones of the City. The City Council directed staff to draft an interim ordinance to establish objective development standards for SB 9 construction projects.

At the December 7, 2021 City Council Meeting, the City Council adopted Interim Ordinance 21- O-2853, which created objective development standards for the ministerial review and approval of a two-lot subdivision (“urban lot split”) and/or development projects with up to two units per lot in single-family residential zones constructed under SB 9 regulations. Among other things, the standards included lot split criteria, size and height criteria for units, required setbacks, required parking, a unit affordability requirement, and standards for the Very High Fire Hazard Severity Zone (VHFHSZ). The agenda report for the December 7, 2021 City Council Meeting is included in Attachment 4 and provides more detail on the objective standards.

The extension of the interim urgency ordinance will allow the City to further study the potential impacts to the public health, safety, and welfare resulting from residential developments constructed pursuant to SB 9 regulations. In addition, it will provide staff time to draft permanent regulations to replace the interim urgency ordinance with the input of the Planning Commission and City Council. Per state law, urgency ordinances may be extended by the City Council by a four-fifths (4/5) vote. At this time, it is recommended that the City Council extend the urgency ordinance for an additional one-year period, for a new expiration date of December 6, 2023.

Staff also recommends that the City Council provide direction regarding a permanent ordinance related to the implementation and regulation of potential SB 9 projects. As an update to the last extension of the interim ordinance, while interest in SB 9 projects was relatively high around the time the senate bill became effective, inquiries to the City regarding the implementation and applicable regulations related to SB 9 projects have largely waned over the past year. To date, no SB 9 projects have been submitted to the City and staff is not aware of any potential projects.

Meeting Date: November 15, 2022

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GENERAL PLAN CONSISTENCY
The interim urgency ordinance provisions are consistent with the objectives, principles, and standards of the General Plan. The interim urgency ordinance requires that residential developments constructed pursuant to SB 9 regulations meet objective development criteria, which is designed to ensure such development is consistent with the character of the City’s existing single-family residential neighborhoods. Accordingly, the interim urgency ordinance sets forth objective development standards related to built form for projects developed under SB 9 regulations.

Land Use Goal LU 2 “Community Character and Quality” calls for a built environment that is distinguished by its high level of site planning, architecture, landscape design, and sensitivity to its natural setting and history.

Land Use Policy LU 2.1 “City Places: Neighborhoods, Districts, and Corridors” calls for the maintenance and enhancement of the character, distribution, built form, scale, and aesthetic qualities of the City’s distinctive residential neighborhoods, business districts, corridors, and open spaces.

Land Use Policy LU 5.1 “Neighborhood Conservation” calls for the maintenance of the uses, densities, character, amenities, and quality of the City’s residential neighborhoods, recognizing their contribution to the City’s identity, economic value, and quality of life.

Land Use Policy LU 5.7 “Neighborhood Transitions” calls for the regulation of the setback, rear elevation design of buildings, and landscaping of backyards where neighborhoods of differing housing type and density abut to assure smooth transitions in scale, form, and character.

Land Use Goal LU 6 “Single-Family Residential Neighborhoods” calls for the maintenance of the identity, scale, and character of the distinct single-family residential neighborhoods.

Land Use Policy LU 6.1 “Neighborhood Identity” calls for the maintenance of characteristics that distinguish the City’s single-family neighborhoods from one another in such terms as topography, lot size, housing scale and form, and public streetscapes.

Land Use Policy LU 6.2 “Housing Character and Design” calls for requiring new, renovated, and additions to housing to be located and designed to maintain the distinguishing characteristics and qualities of the neighborhoods in which they are located, including prevailing lot sizes, building form, scale, massing, relationship to street frontages, architectural design, landscaping, property setbacks, and other comparable elements.

ENVIRONMENTAL REVIEW
The draft ordinance has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA, Public Resources Code Sections 21000 et seq.), the State CEQA Guidelines (California Code of Regulations, Title 14, Sections 15000 et seq.), and the environmental regulations of the City. Upon review, the ordinance does not appear to be considered a project under CEQA, and it can be seen with certainty that there is no potential for such ordinance to have a significant adverse effect on the environment. This is because the draft ordinance does not authorize construction and consists of additional regulations on future development, which will be treated ministerially pursuant to the stipulations of SB 9.

Meeting Date: November 15, 2022

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FISCAL IMPACT
There is no anticipated fiscal impact to the City related to the proposed ordinance under consideration.

Ryan Gohlich, AICP
Director of Community Development
Approved By
Attachment 1
Interim Ordinance No. 21-O-2853

Attachment 2
Ordinance No. 21-O-2856 (Previous
Extension of Interim Ordinance)
ORDINANCE NO. 22-0- 2856

AN ORDINANCE OF THE CITY OF BEVERLY HILLS
EXTENDING INTERIM ORDINANCE NO. 21-0-2853 TO
PROVIDE OBJECTIVE STANDARDS FOR SENATE BILL 9

PROJECTS IN SINGLE-FAMILY RESIDENTIAL ZONES,

AND DECLARING THE URGENCY THEREOF

THE CITY COUNCIL OF THE CITY OF BEVERLY HILLS HEREBY ORDAINS AS FOLLOWS:

Section 1. Legislative Findings.

During the 2021 legislative session, the California Legislature passed, and the Governor signed Senate Bill 9 (SB 9), which requires local agencies to ministerially approve urban lot splits and development to two residential units per single family residential lots provided the projects meet certain criteria. SB 9 became effective on January 1, 2022. SB 9 projects will have the potential to significantly impact the character of the City's well established single family neighborhoods. SB 9 projects have the potential to impact the health, safety, and welfare of residents in the City, and particularly on the character of single family residential neighborhoods, the garden quality of the City, vehicular and pedestrian safety, on-street parking demand and impacts, and housing affordability. As such, the City of Beverly Hills City Council wishes to consider enacting permanent ordinances to establish objective zoning and subdivision standards for SB 9 projects.

Because the public process of adopting these ordinances may be lengthy, and to protect the public health, safety, and welfare and prevent detrimental impacts on single family residential neighborhoods within the City, the City Council adopted Ordinance No. 21-0- 2853, an interim ordinance that took effect on December 7, 2021, (the "Interim Ordinance"). The Interim Ordinance establishes standards and procedures for projects developed according to the regulations included in SB 9. These standards include lot size limits for urban lot splits, height, size, and design standards for new units constructed pursuant to SB 9 regulations, setback standards, parking requirements, and occupancy and use requirements for new units and Accessory Dwelling Units on lots split in accordance with SB 9. City staff continues to study the issues related to permanent regulations.

Section 2. Authority.

Pursuant to Government Code Section 65858, the City Council may adopt, as an urgency measure, an interim ordinance that prohibits any uses that may be in conflict with a contemplated zoning proposal that the City Council is considering, studying, or intends to study within a reasonable period of time. After public notice, the City Council may extend the interim ordinance by a period of ten (10) months and fifteen (15) days, pursuant to Government Code Section 65858. Notice of the public hearing at which the City Council considered adopting this extension ordinance was duly published on December 24, 2021, in the Beverly Hills Courier, and on December 30, 2021, in the Beverly Hills Weekly and in the Beverly Press.

Section 3. Urgency Findings.

The City Council finds that there is an immediate threat to the public health, safety, or welfare and that urban lot splits and additional unit development pursuant to SB 9 that does not conform with the certain objective standards established by the City constitutes a threat to the public health, safety, or welfare, as described in Section 1, above. The City Council finds and determines that there is the potential for an immediate threat to the public health, safety, or welfare in the event of a proliferation of SB 9 projects without local regulatory standards. To preserve the public health, safety, and general welfare, the City Council declares it necessary that this Ordinance take immediate effect to prevent these harms.

Section 4. CEOA Findings,
The City Council hereby finds that this ordinance shall not be considered a project under the Califomia Environmental Quality Act. Additionally, the City Council hereby finds that it can be seen with certainty that there is no possibility the adoption of this Ordinance will have a significant adverse effect on the environment, given the fact that no specific development is contemplated at this time, and the ordinance is only establishing regulations for future development if proposed pursuant to SB 9. Further, development that would be contemplated under this ordinance must be treated ministerially, and any such projects would be statutorily exempt from the environmental review requirements of the Califomia Environmental Quality Act (CEQA) pursuant to Sections 15061(b)(3) and 15268 of Title 14 of the Califomia Code of Regulations, as separate and independent bases for exemption.

Section 5. Severabilitv,
If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance or the application thereof to any person or place, is for any reason held to be invalid or unconstitutional by the final decision of any court of competent jurisdiction, the remainder of this Ordinance shall be and remain in fully force and effect.

Section 6. Approval and Extension of Ordinance.

This Ordinance, adopted as an urgency measure for the immediate protection of the public safety, health, and general welfare, containing a declaration of the facts constituting the urgency, and passed by a minimum four-fifths (4/5) vote of the City Council, shall take effect -3-
immediately upon its adoption and shall amend and extend the effect of the Interim Ordinance for a period of ten (10) months and fifteen (15) days. After notice pursuant to Section 65090 of the California Government Code and public hearing, the City Council may extend the effectiveness of the Interim Ordinance for an additional one year period, as provided in Government Code Section 65858.

Section 7. Publication.

The City Clerk shall certify to the adoption of this Ordinance and shall cause this Ordinance and her certification, together with proof of publication, to be entered in the Book of Ordinances of the Council of this City.

ADOPTED: January 18, 2022
EFFECTIVE: January 18, 2022
ATTEST:
(SEAL)
HUhlA AHMED
CityClerkROBERT WUNDERLICH
Mayor of the City of Beverly Hills
APPROVED AS TO FORM:

LaA
LAURENCE S. WIENER
City Attorney
APPROVED AS TO CONTENT:

GEORGS^AVEZ
City Manager
r;^an g^hlich, aicp
hrectpp^f Community Development
B0785-0001\2611326v4.doc -4-
Attachment 3
Draft Ordinance to Extend Interim
Ordinance
‐1-
ORDINANCE NO. 22-O-______

AN ORDINANCE OF THE CITY OF BEVERLY HILLS
EXTENDING INTERIM ORDINANCE NO. 21-O-2853 TO
PROVIDE OBJECTIVE STANDARDS FOR SENATE BILL 9

PROJECTS IN SINGLE-FAMILY RESIDENTIAL ZONES,

AND DECLARING THE URGENCY THEREOF, AND

MAKING A DETERMINATION OF EXEMPTION UNDER

THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
(CEQA)

THE CITY COUNCIL OF THE CITY OF BEVERLY HILLS HEREBY ORDAINS AS FOLLOWS:

Section 1. Legislative Findings.

During the 2021 legislative session, the California Legislature passed, and the Governor signed Senate Bill 9 (SB 9), which requires local agencies to ministerially approve urban lot splits and development to two residential units per single family residential lots provided the projects meet certain criteria. SB 9 became effective on January 1, 2022. SB 9 projects will have the potential to significantly impact the character of the City’s well established single family neighborhoods. SB 9 projects have the potential to impact the health, safety, and welfare of residents in the City, and particularly on the character of single family residential neighborhoods, the garden quality of the City, vehicular and pedestrian safety, on-street parking demand and impacts, and housing affordability. As such, the City of Beverly Hills City Council wishes to consider enacting permanent ordinances to establish objective zoning and subdivision standards for SB 9 projects.

Because the public process of adopting these ordinances may be lengthy, and to protect the public health, safety, and welfare and prevent detrimental impacts on single family residential neighborhoods within the City, the City Council adopted Ordinance No. 21-O-2853, an interim ‐2-
ordinance that took effect on December 7, 2021, (the “Interim Ordinance”). The City Council then adopted Ordinance No. 22-O-2856 extending the Interim Ordinance for an additional ten (10) months and fifteen (15) days. The Interim Ordinance establishes standards and procedures for projects developed according to the regulations included in SB 9. These standards include lot size limits for urban lot splits, height, size, and design standards for new units constructed pursuant to SB 9 regulations, setback standards, parking requirements, and occupancy and use requirements for new units and Accessory Dwelling Units on lots split in accordance with SB 9. City staff continues to study the issues related to permanent regulations.

Section 2. Authority.

Pursuant to Government Code Section 65858, the City Council may adopt, as an urgency measure, an interim ordinance that prohibits any uses that may be in conflict with a contemplated zoning proposal that the City Council is considering, studying, or intends to study within a reasonable period of time. After public notice, the City Council may extend the interim ordinance by a period of ten (10) months and fifteen (15) days and then subsequently extend the ordinance for one (1) year, pursuant to Government Code Section 65858. Notice of the public hearing at which the City Council considered adopting this extension ordinance was duly published on October 21, 2022, in the Beverly Hills Courier, and on October 27, 2022, in the Beverly Hills Weekly.

Section 3. Urgency Findings.

The City Council finds that there is an immediate threat to the public health, safety, or welfare and that urban lot splits and additional unit development pursuant to SB 9 that does not conform with the certain objective standards established by the City constitutes a threat to the ‐3-
public health, safety, or welfare, as described in Section 1, above. The City Council finds and determines that there is the potential for an immediate threat to the public health, safety, or welfare in the event of a proliferation of SB 9 projects without local regulatory standards. To preserve the public health, safety, and general welfare, the City Council declares it necessary that this Ordinance take immediate effect to prevent these harms.

Section 4. CEQA Findings.

The City Council hereby finds that this ordinance shall not be considered a project under the California Environmental Quality Act. Additionally, the City Council hereby finds that it can be seen with certainty that there is no possibility the adoption of this Ordinance will have a significant adverse effect on the environment, given the fact that no specific development is contemplated at this time, and the ordinance is only establishing regulations for future development if proposed pursuant to SB 9. Further, development that would be contemplated under this ordinance must be treated ministerially, and any such projects would be statutorily exempt from the environmental review requirements of the California Environmental Quality Act (CEQA) pursuant to Sections 15061(b)(3) and 15268 of Title 14 of the California Code of Regulations, as separate and independent bases for exemption.

Section 5. Severability.

If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance or the application thereof to any person or place, is for any reason held to be invalid or unconstitutional by the final decision of any court of competent jurisdiction, the remainder of this Ordinance shall be and remain in fully force and effect. ‐4-
Section 6. Approval and Extension of Ordinance.

Section 7. Publication.

ADOPTED:

EFFECTIVE:

LILI BOSSE
Mayor of the City of Beverly Hills,
California
ATTEST:
_______________________________(SEAL)

HUMA AHMED
City Clerk
APPROVED AS TO FORM: APPROVED AS TO CONTENT:

LAURENCE S. WIENER
City Attorney

GEORGE CHAVEZ
City Manager

RYAN GOHLICH, AICP
Director of Community Development
Attachment 4
Agenda Report – December 7, 2021
City Council Meeting

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AGENDA REPORT
Meeting Date: December 7, 2021
Item Number:

To: Honorable Mayor & City Council
From: Timothea Tway, AICP, City Planner
Ryan Gohlich, AICP, Director of Community Development
Subject: AN INTERIM ORDINANCE OF THE CITY OF BEVERLY HILLS TO PROVIDE OBJECTIVE STANDARDS FOR SENATE BILL 9

PROJECTS IN SINGLE-FAMILY RESIDENTIAL ZONES, AND

DECLARING THE URGENCY THEREOF
Attachments: 1. Draft Urgency Ordinance

2. November 2, 2021 City Council Agenda Report

RECOMMENDATION
It is recommended the City Council adopt an urgency ordinance establishing emergency regulations related to objective standards for Senate Bill 9 (SB 9) projects. This ordinance would allow the City to appropriately regulate urban lot splits and the development of new units that are allowed under provisions of SB 9 while permanent regulations are established.

INTRODUCTION
SB 9 was signed by Governor Gavin Newsom on September 16, 2021. SB 9 requires ministerial approval of a two-lot subdivision (referred to as an “urban lot split”) and/or development projects for up to two units per lot in single-family zones. SB 9 supersedes several City regulations regarding single-family residential subdivision and development standards; however, the bill does preserve some authority for local jurisdictions enact regulations through the adoption of new and objective zoning regulations. SB 9 will go into effect on January 1, 2022.

A proposed two-lot subdivision or two-unit development must meet certain requirements in order to qualify for the ministerial approval process outlined in SB 9. The lot must be &
Meeting Date: December 7, 2021

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located in a single-family residential zone and within an “urbanized area”. The definition of an urbanized area applies to the City of Beverly Hills.

On November 2, 2021, staff presented an item to the City Council describing the recently adopted SB 9 and its impacts on the subdivision of single-family lots throughout California and the City of Beverly Hills. At that time, staff requested input from the City Council regarding actions that staff should take to establish objective standards to regulate SB 9 projects. In summary, the City Council directed staff to:
1) Create an affidavit requirement for SB 9 projects that outlines the prohibitions and requirements for SB 9 projects;
2) Create objective zoning standards to regulate projects that are allowed under the provisions of SB 9; and
3) Establish an affordability requirement for SB 9 developments.

Staff has developed an urgency ordinance in response to the feedback from the City Council, which is included as Attachment 1 and summarized below. Given the January 1, 2022, implementation date of SB 9, the City Council will need to adopt an urgency ordinance prior to the end of 2021 in order for the regulations to become effective prior to the effective date of SB 9. If adopted, the urgency ordinance would be in effect for an initial 45-day period, unless further extended pursuant to the provisions of Government Code Section 65858.

DISCUSSION
What SB 9 Requires
SB 9 requires ministerial approval by the City of 1) two-lot subdivision of single-family residential lots, 2) development projects for up to two units per lot in single-family zones, and 3) a project that includes both 1 and 2. The state law does outline several requirements for the ministerial approval of a two-lot subdivision and/or two-unit development. These include:
x Each new lot must be at least 1,200 square feet;
x Each new lot must be relatively equal in lot area and no lot can be less than 40 percent of the original lot size;
x Lots previously subdivided via SB 9 cannot be subdivided again; and x The City cannot establish regulations that prohibit units of at least 800 square feet in size.

SB 9 also outlines what types of regulations a local jurisdiction can and cannot impose on an SB 9 project:

REGULATION PERMITTED NOT PERMITTED
Subdivision
Requirements
x Easements for provision of
public services
x Easements to ensure subdivided
lots have access to the public rightof-way
x Dedication of rights-of-way
x Construction of offsite
improvements
x Correction of nonconforming
zoning conditions
Meeting Date: December 7, 2021

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Objective
Standards
x Objective zoning standards,
subdivision standards, and
design standards
x No setback can be required if
unit is built within the footprint
of an existing structure
x Otherwise maximum 4’
setback from side and rear
yards
x Standards cannot physically
prevent the development of
an 800 square foot unit on
each lot
Parking x Can require one parking
space per unit
x Cannot require parking if site
is within one-half mile of a
high quality transit corridor or
a major transit stop or if there
is a car share vehicle within
one block of the project
Rental
Restrictions
x Prohibit short term rental of any
units created through SB 9
x For lot splits, applicants must
submit an affidavit that they
intend to occupy one of units as
a principal residence for at least
3 years
x No additional owner
occupancy standards allowed
Urgency Ordinance Content
The attached urgency ordinance has been developed pursuant to the regulations contained in SB 9. In addition, the ordinance reflects the direction provided by the City Council at its meeting of November 2, 2021. The ordinance contains the following provisions:

Covenant Required For All SB 9 Projects
The ordinance requires SB 9 applicants to sign a covenant that:
x Prohibits the short term rental of any units and ADUs on the site; x Prohibits non-residential uses on the site;
x Prohibits a subsequent urban lot split of land that was subdivided with an urban lot split;
x Requires that the owner of the property sign an affidavit declaring that the owner shall inhabit one unit on the site as a primary residence for at least three years after completing an urban lot split; and
x Requires that if, pursuant to SB 9, more than one unit is developed on a lot, and the units are for rent, one unit shall be rented at a maximum rate affordable to low income tenants. Upon request from the City, the property owner shall furnish a copy of the lease of any unit that is rented and has resulted from an SB 9 project.

Meeting Date: December 7, 2021

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Objective Standards for Urban Lot Splits
The ordinance outlines the following requirements for urban lot splits. These regulations were crafted in order to retain the existing garden quality and character of the singlefamily areas of the City. The lot split standards are as follows:
x No lot resulting from an urban lot split shall be smaller than 1,200 square feet; x The two resulting lots shall be approximately equal, and in no event less than 48% and more than 52% of the lot area of the original parcel; x No flag lots shall be created as a result of an urban lot split if the subject property is adjacent to an alley, located on a corner, or on a through lot; x A lot resulting from an urban lot split shall not be less than 75% of the original lot width; and
x No right-of-way dedications shall be imposed upon urban lot split projects.

The standards created would generally create a “front” lot (adjacent to the street) and a “rear” lot (generally the back half of a lot, adjacent to the alley, if there is one) if an urban lot split is completed . In addition, the ordinance would require that parking be accessed to be from the alley (if there is one) for rear lots in order to further retain the existing character of the single-family zones of the City.

Objective Standards for Units Constructed
The ordinance outlines the following requirements for units created under the provisions of SB 9:
x Units may not be larger than 800 square feet (including basement area); x Units may not be taller than 14 feet in height and no more than one-story; x The front most unit on the front lot shall have a minimum width of 40 feet or 75% of the lot width, whichever is less, and shall have a front door facing the street; x Each unit on each lot shall have a separate entrance; x Any unit other than the front most unit shall be completely screened by either other unit(s) on the lot or landscaping;
x One parking space is required per unit (unless parking cannot be required per state law); and
x Rear and side setbacks shall be four feet, front setbacks for front lots (those immediately adjacent to the street) shall be the front setback that has already been established by the City on each lot. Front setbacks for rear lots shall be 10 feet.

These objective standards clearly outline, on an interim basis, what is allowed under the provisions of SB 9 and provide for development that is not inconsistent with the character of the single-family neighborhoods in the City, to enable the City the opportunity to continue studying appropriate standards for permanent regulations.

Affordability Requirement
The ordinance contains a provision requiring that if, pursuant to SB 9, more than one unit is constructed on a lot one of such units shall be available at a rental rate that is Meeting Date: December 7, 2021

Page 5 of 6 ends

affordable to low income tenants if it is rented. In addition, a property owner shall furnish the lease to the City upon request.

Properties North of Sunset Boulevard
There are provisions in SB 9 that do not allow urban lot splits in certain sensitive areas, including very high fire hazard severity zones (VHFHSZ). Properties north of Sunset Boulevard are included in a VHFHSZ, and, as such, it appears that the urban lot split provisions would not apply in these zones. As a precaution, staff has included some objective standards for SB 9 projects in these areas of the City, so that regulations are in place should the law be amended in the future, or be found to not exempt VHFHSZ properties. These objective standards would supplement the regulations outlined above, and are meant to help retain the character of the areas north of Sunset Boulevard in the City. These include:
x No level pad area may be created for the purpose of constructing units; x No units, or part of units, may be constructed off of the existing level pad area on any site; and
x Lots created from an urban lot split shall conform to the regulations provided in this article, unless there is no alley access, or the lot is not a through lot or a corner lot, in which case, the rear lot shall comply with the definition of a flag lot in this chapter and access to the rear lot shall be provided via the pole portion of the flag lot.

Adverse Impact Findings
The ordinance also includes a provision allowing the Building Official to make findings to deny an urban lot split or units constructed pursuant to SB 9 if there is evidence that such action would create a specific, adverse impact to the public health and safety or to the physical environment that may not be satisfactorily mitigated. This provision is consistent with the provisions of SB 9.

FISCAL IMPACT
The ordinance would implement objective standards related to single family residential subdivisions permitted by SB 9, known as urban lot splits. SB 9 requires that the review and permitting process for this type of subdivision is ministerial, which would result in the collection of nominal fees for application processing, as well as building permit fees. In addition, the potential creation of new lots on which new homes are built could result in an increase in revenue for the City, by way of increasing the number of persons patronizing local businesses and paying taxes.

Meeting Date: December 7, 2021

Page 6 of 6 ends

RECOMMENDATION
It is recommended the City Council adopt an urgency ordinance establishing emergency regulations related to objective standards for SB 9 projects. These regulations would allow the City to appropriately regulate urban lot splits and the development of new units that are carried out through the provisions of SB 9 while permanent regulations are established.

Ryan Gohlich
Community Development Director
Approved By
Attachment 1
Draft Urgency Ordinance
(From December 7, 2021 meeting; part of Attachment 4 for November 15, 2022 meeting) -1-
B0785-0009\2599756v3.doc
ORDINANCE NO. 21-O-_______

AN INTERIM ORDINANCE OF THE CITY OF BEVERLY

HILLS TO PROVIDE OBJECTIVE STANDARDS FOR
SENATE BILL 9 PROJECTS IN SINGLE-FAMILY

RESIDENTIAL ZONES, AND DECLARING THE URGENCY

THEREOF

THE CITY COUNCIL OF THE CITY OF BEVERLY HILLS HEREBY ORDAINS AS FOLLOWS:

Section 1. Legislative Findings.
(1) During the 2021 legislative session, the California Legislature passed, and the Governor signed Senate Bill 9 (SB 9), which requires local agencies to ministerially approve urban lot splits and development to two residential units per single family residential lots provided the projects meet certain criteria. SB 9 will become effective on January 1, 2022. (2) SB 9 projects will have the potential to significantly impact the character of the City’s well established single family neighborhoods.
(3) The City intends to study and formulate permanent regulations for the implementation of SB 9 projects in the City, but will not be able to complete that exercise prior to January 1, 2022, when SB 9 will become effective. Thus, the City Council wishes to adopt an interim ordinance that will take effect immediately and preserve limits on development and rental rates for units constructed under SB 9 while permanent standards are studied and formulated. (4) SB 9 projects have the potential to impact the health, safety, and welfare of residents in the City, and particularly on the character of single family residential neighborhoods, the garden quality of the City, vehicular and pedestrian safety, on-street parking demand and impacts, and -2-
B0785-0009\2599756v3.doc
housing affordability. As such, the City of Beverly Hills City Council finds that there is an immediate need to establish objective zoning and subdivision standards for SB 9 projects in order to protect the public health, safety, and welfare while it studies permanent land use regulations for such projects and to ensure SB 9 does not have a detrimental impact on single family residential neighborhoods within the City. This process may be lengthy and therefore the City Council wishes to adopt an interim ordinance that will take effect immediately to ensure that the health, safety and welfare is not impacted by SB 9 projects.
(5) The California Legislature has declared a statewide housing emergency, to be in effect until January 1, 2025.
(6) California is experiencing a housing supply crisis, with housing demand far outstripping supply. In 2018, California ranked 49th out of the 50 states in housing units per capita. Seven of the 10 most expensive real estate markets in the United States are in California, and Beverly Hills real estate market remains very expensive within the region. (7) The housing crisis has particularly exacerbated the need for affordable homes at prices below market rates, and for the current 2021-2029 planning period, the City must accommodate the development of 1,005 residential units affordable to very low income households, and 678 units affordable to low income households.
(8) To address these issues of affordability in Beverly Hills, it is necessary for the City to limit the size of units developed pursuant to SB 9 and to require that some units be affordable to low income families, as an interim measure to ensure that SB 9 developments do not conflict with forthcoming permanent regulations.
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Section 2. Authority.

Pursuant to Government Code Section 65858, the City Council may adopt, as an urgency measure, an interim ordinance that prohibits certain developments that may be in conflict with a contemplated zoning proposal that the City Council is considering, studying or intends to study within a reasonable period of time.

Section 3. Urgency Findings.

The City Council finds and determines that there is an immediate threat to the public health, safety, or welfare and that urban lot splits and additional unit development pursuant to SB 9 that does not conform with the certain objective standards established by the City constitutes a threat to the public health, safety, or welfare, as described in Section 1, above.

The City Council finds and determines that there is the potential for an immediate threat to the public health, safety, or welfare in the event of a proliferation of SB 9 projects without local regulatory standards.

Section 4. Prohibition on SB 9 Projects that Fail to Comply.

Notwithstanding any other ordinance or provision of the Beverly Hills Municipal Code, residential development projects and urban lot splits proposed pursuant to Senate Bill 9, are prohibited unless the project complies with the following requirements, which although interim, shall be codified as a new Article 49 of Chapter 3 of Title 10 of the Beverly Hills Municipal Code as follows:
“ARTICLE 49. Objective Standards for Housing Projects and Urban Lot Splits in Single Family Residential Zones Pursuant to Senate Bill 9.
10-3-4900: Purpose.
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The provisions of this interim article establish standards and procedures for projects developed pursuant to the regulations included in state Senate Bill 9 (SB 9). 10-3-4901: Definitions.

For the purposes of this article, certain words and phrases used in this article are defined as follows:

Senate Bill 9 or SB 9 means the state law passed by the California state senate and approved by the Governor on September 16, 2021. The bill amends Government Code section 66452.6 and adds to sections 65852.21 and 66411.7 of Chapter 162, and takes effect on January 1, 2022.

Urban lot split means a parcel map subdivision of a single family residential parcel as permitted pursuant to SB 9 that creates no more than two parcels of approximately equal lot area.

Front lot means when an urban lot split creates two lots where there was previously one lot, the lot with the most frontage on the primary street shall be considered the front lot.

Rear lot means when an urban lot split creates two lots where there was previously one lot, the lot with the least frontage on the primary street shall be considered the rear lot.

Rear lot front setback means the distance between the front lot line and closest element of a building or structure on the site area of a rear lot created by an urban lot split. The front lot line of such rear lot may also be the rear lot line of the front lot, and shall be the lot line closest to, and parallel to the primary street.
10-3-4902: Applicability.

Notwithstanding any other provision of this Chapter and Chapter 2 of Title 10, the provisions of this Article shall apply to residential projects and urban lot splits that are proposed -5-
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pursuant to the regulations in SB 9. Except as expressly provided in SB 9 or in this Article, all other regulations of the underlying zone of a property developed pursuant to SB 9 shall apply, along with all other applicable regulations from Chapter 2 of Title 10 as related to any urban lot split.
10-3-4903: General Requirements; Covenant Required.

A property owner seeking to complete an urban lot split, or develop units on a single-family residential property pursuant to the regulations set forth in SB 9 and the standards in this article, shall be subject to the following general requirements, which shall be accepted and acknowledged by the property owner by signing and recording a covenant against the property. The covenant shall be supplied by the City and provide as follows:

A. The short term rental (defined as a “single-family transient use” in section 10-3-100 of this chapter) of any units and Accessory Dwelling Units (ADUs) on the site shall be prohibited;
B. Non-residential uses on the site shall be prohibited; C. Any subsequent urban lot split of land that was previously subdivided with an urban lot split shall be prohibited;
D. The owner of the property for which an urban lot split is proposed shall sign an affidavit stating that the owner intends to occupy one of the housing units as their principal residence for at least three years from the date of the approval of the urban lot split; and
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E. If, pursuant to SB9, more than one unit is developed on a lot, one of such units shall be rented or leased at a maximum rate affordable to low income tenants, if it is rented. Upon request from the City, the property owner shall furnish a copy of the rental or lease agreement of any unit that is rented or leased and has resulted from an SB 9 project.
10-3-4904: Urban Lot Split Regulations.

Upon approval of a tentative parcel map or parcel map, a single-family residential lot may be subdivided into two lots, also referred to as an urban lot split, pursuant to the regulations contained in SB 9 as follows:

A. No lot resulting from an urban lot split shall be smaller than 1,200 square feet.

B. The two resulting lots shall be approximately equal, and no smaller than 48% or larger than 52% of the lot area of the original parcel.

C. No flag lots shall be created as a result of an urban lot split if the subject property is adjacent to an alley, located on a corner, or on a through lot.

D. The width of any lot resulting from an urban lot split shall not be less than 75% of the original lot width.

E. No right-of-way dedications shall be imposed upon urban lot split projects. -7-
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10-3-4905: Maximum Number of Units.

A. For projects that include an urban lot split, no more than two units may be located on a site. The units must conform to the objective standards included in this article.

B. For projects that do not include an urban lot split, no more than four units (including one ADU, and one Junior ADU) may be located on a site. The units must conform to the objective standards included in this article and as otherwise regulated by ADU or Junior ADU regulations. 10-3-4906: Maximum Unit Size.

No unit constructed pursuant to SB 9 regulations shall be more than 800 square feet in size.

For the purposes of this article, basements shall count as floor area. 10-3-4907: Maximum Unit Height.

No unit constructed pursuant to SB 9 regulations shall exceed 14 feet and one story in height.
10-3-4908: Setbacks.

A. Side and rear setbacks. Any units constructed pursuant to the provisions of SB 9 shall have a minimum four foot setback from all side and rear lot lines.

B. Front setbacks for front lots shall be the setback as established in the records for each site area maintained by the City's community development department, unless that setback is not established in the City's records, or it is zero. If the front setback for a particular site area is zero or is not -8-
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established in the City's records, then the front setback for that site area shall be determined as follows:

1. For developed site areas, the front setback shall be the lesser of either:
a. The distance between the front lot line and the closest element of the existing primary residence; or
b. The average of the front setbacks of the other site areas on the same side of the street in the same block.

2. For undeveloped lots, the front setback shall be the average of the front setbacks of the other site areas on the same side of the street in the same block.

C. Front setbacks for rear lots. The rear lot front setback shall be ten feet. The front lot line shall be the lot line closest to, and parallel to the primary street.

D. Setbacks for existing structures. No setbacks shall be required if a unit is constructed within the footprint of an existing structure on a lot. 10-3-4909: Minimum Width of Building.

The front most unit constructed on a site with street frontage shall have a minimum unit width of 40 feet or 75% of the lot width, whichever is less. 10-3-4910: Design of Unit.

A. The front most unit constructed on a front lot shall have a front door facing the street.
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B. Each unit on each lot created by an urban lot split shall have a separate entrance.

C. Any unit other than front most unit, or the front most unit on the front lot, shall be completely screened by either: 1) other unit(s) on the lot; or 2) landscaping.
10-3-4911: Parking.

A. Parking required - One parking space is required for each unit created pursuant to SB 9, unless the parcel upon which the unit is created is within one-half mile of a high quality transit corridor or a major transit stop or there is a car share vehicle located within one block of the project.

B. Parking location restrictions -

1. Parking shall not be provided within a front setback.

2. Rear lot parking shall be accessed via an alley, if there is an alley. 10-3-4912: Affordable Rental Rate Required.

If, pursuant to SB9, more than one unit is developed on a single lot, one of such units shall be available at a rental rate affordable to low income tenants if it is rented. Upon request by the City, a property owner shall furnish the rental or lease agreements for any units rented or leased on a parcel that was developed pursuant to the regulations outlined in this article. 10-3-4913: Additional Standards for Hillside and Trousdale.

In addition to the objective standards outlined in this article, the following regulations shall apply to any SB 9 projects that are developed in the Hillside or Trousdale Estates area of the City. -10-
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A. No level pad area may be created for purpose of constructing units.

B. No units, or part of units, may be constructed off of the existing level pad area on any site.

C. Lots created from an urban lot split shall conform to the regulations provided in this article, unless there is no alley access, or the lot is not a through lot or a corner lot, in which case, the rear lot shall comply with the definition of a flag lot in this chapter and access to the rear lot shall be provided.
10-3-4914: Adverse Impact Findings
The building official, or his or her designee, may make a written finding to deny an urban lot split or the construction of units pursuant to the regulations of SB 9. Such findings shall be based upon the preponderance of evidence that the proposed housing development project would have a specific, adverse impact (as defined in paragraph (2) of subdivision (d) of Government Code Section 65589.5) upon the public health and safety or the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact.” Section 5. CEQA Findings.

This ordinance shall not be considered a project under the California Environmental Quality Act. Additionally, the City Council hereby finds that it can be seen with certainty that there is no possibility the adoption of this Ordinance will have a significant adverse effect on the environment, given the fact that no specific development is contemplated at this time, and the ordinance is only establishing regulations for future development if proposed pursuant to SB 9. -11-
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Further, development that would be contemplated under this ordinance must be treated ministerially, and any such projects would be statutorily exempt from the environmental review requirements of the California Environmental Quality Act (CEQA) pursuant to Sections 15061(b)(3) and 15268 of Title 14 of the California Code of Regulations, as separate and independent bases for exemption.

Section 6. Severability.

Section 7. Adoption, Approval and Extension of Ordinance.

This Ordinance, being an Interim Ordinance adopted as an urgency measure for the immediate protection of the public safety, health, and general welfare, containing a declaration of the facts constituting the urgency, and passed by a minimum four-fifths (4/5) vote of the City Council, shall take effect immediately upon its adoption and shall continue in effect for a period of no longer than forty-five (45) days. After notice pursuant to Section 65090 of the California Government Code and public hearing, the City Council may extend the effectiveness of this Interim Ordinance as provided in Government Code Section 65858. ///
///
///
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Section 8. Publication.

ADOPTED:

EFFECTIVE:

ROBERT WUNDERLICH
Mayor of the City of Beverly Hills
ATTEST:
_______________________________(SEAL)

HUMA AHMED
City Clerk
APPROVED AS TO FORM: APPROVED AS TO CONTENT:

LAURENCE S. WIENER
City Attorney

GEORGE CHAVEZ
City Manager

RYAN GOHLICH, AICP
Director of Community Development
Attachment 2
November 2, 2021 City Council
Agenda Report
(From December 7, 2021 meeting; part of Attachment 4 for November 15, 2022 meeting)

Page 1 of 5 ends

AGENDA REPORT
Meeting Date: November 2, 2021
Item Number:

To: Timothea Tway, City Planner
From: Cynthia Owens, Policy and Management Analyst
Subject: UPDATE ON SENATE BILL 9 (ATKINS) HOUSING DEVELOPMENT:

APPROVALS
Attachment: 1. Bill Text – Senate Bill 9

RECOMMENDATION
It is recommended the City Council receive a report on the recently adopted Senate Bill 9 (Atkins) Housing Development: Approvals (“SB 9”) and its impacts on subdivision single-family lots throughout California. Staff is also requesting City Council direction on potential compliance options prior to the effective date of January 1, 2022 for this bill.

These options include but are not limited to:
1) Direct staff to create deed restricted forms to prohibit:
a. Short-term rental of any units created through SB 9, b. Non-residential uses, and
c. Subsequent lot splits of property where SB 9 was implemented by the owner. 2) Direct staff to create an owner occupancy affidavit form for applicants seeking a SB 9 lot split
3) Consider adopting objective zoning standards that do not physically preclude the development of two 800 square foot units
4) Consider adopting zoning ordinances to implement requirements that municipalities are permitted to impose.

Furthermore, the City Council may wish to consider incentives to encourage property owners not to split their lots, such as allowing larger second units if a property owner records a deed restriction prohibiting future lot splits.

Given the January 1, 2022, implementation date of SB 9, the City Council may need to consider an urgency ordinance prior to the end of 2021. The City Council could then consider directing staff to work with the Planning Commission in 2022 to further develop a permanent ordinance.
'
Meeting Date: November 2, 2021

Page 2 of 5 ends

INTRODUCTION
This item provides an overview of SB 9 and its potential impacts to the City of Beverly Hills.

DISCUSSION
Background
SB 9 was signed by Governor Gavin Newsom on September 16, 2021. SB 9 requires ministerial approval of a two-lot subdivision and/or development projects for up to two units per lot. SB 9 supersedes several City regulations regarding subdivision and development standards; however, the bill does preserve some authority for local jurisdictions to enact regulations through the adoption of new and objective zoning regulations. SB 9 will go into effect on January 1, 2022.

A proposed two-lot subdivision or two-unit development must meet certain requirements in order to qualify for the ministerial approval process outlined in SB 9. The lot must be located in a single-family residential zone and within an “urbanized area”. The definition of an urbanized area applies to the City of Beverly Hills.

Restrictions within SB 9
The proposed two-lot subdivision for ministerial approval under SB 9 cannot be located within:
x A designated historic district,
x Be identified as a historic landmark, or
x Be included in certain sensitive areas.

While not directly referenced in SB 9, the sensitive areas are identified in Senate Bill 35, Wiener, Planning and Zoning: Affordable Housing: Streamlined Approval Process (2017) and includes areas such as:
x Earthquake fault zones,
x FEMA-designated flood plains, or
x High fire hazard severity zones (as designated by CalFIRE maps and not excluded from the high fire hazard severity zone by a local jurisdiction or sites that have adopted fire hazard mitigation measures).

Furthermore, SB 9 has certain anti-displacement requirements contained within its provisions. To qualify for the SB 9 process, a subdivision or development project cannot involve the demolition or alteration of:
x Deed-restricted affordable housing;
x Rent-controlled housing;
x Housing withdrawn from the rental market in the last 15 years; and x Housing that was occupied by a tenant in the past 3 years.

What SB 9 Allows
If the proposed two-unit development project or lot subdivision meets the foregoing criteria, a local agency must approve the project ministerially, without public hearings or discretionary approval. The development may include the construction of two units or adding one new unit to an existing residential unit. All proposed lot splits must be in areas zoned single-family residential.

Meeting Date: November 2, 2021

Page 3 of 5 ends

SB 9 outlines several requirements for the ministerial approval of the proposed two-lot subdivision or two-unit development. This includes:
x Each new lot must be at least 1,200 sq. ft.
x Each new lot must be relatively equal in lot area and no lot can be less than 40 percent of the original lot size
x Lots previously subdivided via SB 9 cannot be subdivided again x Adjacent parcels can only be subdivided via SB 9 if the owners are independent and not acting jointly/on behalf of each other.
x Each unit can be no smaller than 800 square feet.

SB 9 also grants local jurisdictions certain authorities to impose specific requirements on two-unit development projects or lot subdivisions as shown in the table below:

Local Agency
Regulations
Permitted Not Permitted
Subdivision
Requirements
x Easements for provision of
public services
x Easements to ensure subdivided
lots have access to the public
right-of-way
x Dedication of rights-of-way
x Construction of offsite
improvements
x Correction of nonconforming
zoning conditions
Objective
Standards
x Objective zoning standards,
subdivision standards, and
design standards
x No setback can be required if
unit is built within the footprint
of an existing structure
x Otherwise maximum 4’ setback
from side and rear yards
x Standards cannot physically
prevent the development of an
800 square foot unit
Rental
Restrictions
x Prohibit short term rental of any
units created through SB 9
x For lot splits, applicants must
submit an affidavit that they
intend to occupy one of units
as a principal residence for at
least 3 years
x No additional owner occupancy
standards allowed.

SB 9 does allow local jurisdictions to deny the two-unit project or the lot subdivision if the agency’s Building Official makes a written finding, based on a preponderance of evidence that the proposed project would have a specific, adverse impact on public health and safety that cannot be mitigated without denying the project. The specific, adverse impact must be based on specific, objective public health or safety standards that were in effect prior to the project application submittal.

Standards
Under SB 9, local agencies may only impose objective zoning standards, objective subdivision standards and objective design standards on an eligible project. This is then further limited in that the objective standards cannot physically preclude the construction of two units of at least 800 square feet.

Meeting Date: November 2, 2021

Page 4 of 5 ends

Local jurisdictions must also prohibit non-residential use of the two-unit development project or lot subdivision.

Limited Local Jurisdiction Authority over Parking Requirements Local jurisdictions may require only one off-street parking space per unit. However, a local jurisdiction cannot require any off-street parking space if the site is within one-half mile of a “high quality transit corridor” or there is a car share vehicle within one block of the location.

Other Structures Permitted
Local jurisdictions must allow proposed adjacent or connected structures Residency Requirement
As noted in the table above, there is a three-year owner occupancy requirement by affidavit. The applicant-owner must sign an affidavit stating they intend to occupy one of the housing units as the owner’s principal residence for at least three years following the lot split. Community land trusts and qualified nonprofit corporations are exempt. No other owner-occupancy requirement is allowed.

Report to State Department of Housing and Community Development Local jurisdictions are required to report the number of SB 9 lot split applications in annual housing element reports that are sent to the State Department of Housing and Community Development.

Applying SB 9 to City of Beverly Hills Development Scenarios The passage of SB 9 substantially alters low-density, single-family zoning by allowing for ministerial lot splits (with a minimum lot size of 1,200 square feet) and two units on each lot.

There are a total of 5,883 single family residential parcels in the City. As indicated at the beginning of the report, SB 9 developments are prohibited within certain natural hazard zones or environmentally sensitive areas, including properties in high fire hazard zones, flood zones, earthquake fault zones, wetlands, and lands protected by a conservation easement. Of these potential factors, fire risk is the only natural hazard that may be a substantial impediment to SB 9 in certain areas of the city. Notably, all properties located north of Sunset Boulevard are located within the Very High Fire Hazard Severity Zone, which precludes the use of SB 9 on these properties.

Characteristics of Parcels within Beverly Hills
Parcels in a High Fire Hazard Severity Zone* (Primarily North of Sunset Boulevard)
1,601
Parcels in the “F” Seismic Hazard Zone (within 200 feet of fault) 179 Total Parcels Impacted by Natural Hazards
(some parcels may be 2 or more hazard zones)
1,780
Meeting Date: November 2, 2021

Page 5 of 5 ends

For residential parcels south of Sunset Boulevard, which are likely to be subject to SB 9 because they are not within a High Fire Hazard Severity Zone, there are two distinct patterns of development: parcels north of Santa Monica Boulevard and parcels south of Santa Monica Boulevard. There are approximately 1,781 parcels north of Santa Monica Boulevard (but south of Sunset Boulevard) and these parcels range from approximately 12,000 square feet to 30,000 square feet in size. There are approximately 2,499 parcels that are south of Santa Monica Boulevard. These parcels are generally 6,000 square feet to 7,500 square feet in size.

While SB 9 allows for parcels as small as 1,200 square feet in size, it also requires new lots to be at least 40 percent of their original size. Considering this, the smallest new parcel that would result from SB 9 north of Santa Monica Boulevard would be approximately 4,800 square feet and the smallest new parcel that would result south of Santa Monica Boulevard would be 2,400 square feet.

FISCAL IMPACT
Unknown. It is difficult to determine if land values will increase or decrease under SB 9 as well as what the impact would be on increasing the size of the population on the local economy.

Ryan Gohlich, AICP
Director of Community Development
Gabriella Yap
Deputy City Manager
Concurred By Approved By
Attachment 1
Senate Bill No. 9
CHAPTER 162
An act to amend Section 66452.6 of, and to add Sections 65852.21 and 66411.7 to, the Government Code, relating to land use.
[Approved by Governor September 16, 2021. Filed with
Secretary of State September 16, 2021.]
legislative counsel’s digest
SB 9, Atkins. Housing development: approvals.

The Planning and Zoning Law provides for the creation of accessory dwelling units by local ordinance, or, if a local agency has not adopted an ordinance, by ministerial approval, in accordance with specified standards and conditions.

This bill, among other things, would require a proposed housing development containing no more than 2 residential units within a single-family residential zone to be considered ministerially, without discretionary review or hearing, if the proposed housing development meets certain requirements, including, but not limited to, that the proposed housing development would not require demolition or alteration of housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income, that the proposed housing development does not allow for the demolition of more than 25% of the existing exterior structural walls, except as provided, and that the development is not located within a historic district, is not included on the State Historic Resources Inventory, or is not within a site that is legally designated or listed as a city or county landmark or historic property or district.

The bill would set forth what a local agency can and cannot require in approving the construction of 2 residential units, including, but not limited to, authorizing a local agency to impose objective zoning standards, objective subdivision standards, and objective design standards, as defined, unless those standards would have the effect of physically precluding the construction of up to 2 units or physically precluding either of the 2 units from being at least 800 square feet in floor area, prohibiting the imposition of setback requirements under certain circumstances, and setting maximum setback requirements under all other circumstances.

The Subdivision Map Act vests the authority to regulate and control the design and improvement of subdivisions in the legislative body of a local agency and sets forth procedures governing the local agency’s processing, approval, conditional approval or disapproval, and filing of tentative, final, and parcel maps, and the modification of those maps. Under the Subdivision Map Act, an approved or conditionally approved tentative map expires 24 94 STATE OF CALIFORNIA

AUTHENTICATED

ELECTRONIC LEGAL MATERIAL
months after its approval or conditional approval or after any additional period of time as prescribed by local ordinance, not to exceed an additional 12 months, except as provided.

This bill, among other things, would require a local agency to ministerially approve a parcel map for an urban lot split that meets certain requirements, including, but not limited to, that the urban lot split would not require the demolition or alteration of housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income, that the parcel is located within a single-family residential zone, and that the parcel is not located within a historic district, is not included on the State Historic Resources Inventory, or is not within a site that is legally designated or listed as a city or county landmark or historic property or district.

The bill would set forth what a local agency can and cannot require in approving an urban lot split, including, but not limited to, authorizing a local agency to impose objective zoning standards, objective subdivision standards, and objective design standards, as defined, unless those standards would have the effect of physically precluding the construction of 2 units, as defined, on either of the resulting parcels or physically precluding either of the 2 units from being at least 800 square feet in floor area, prohibiting the imposition of setback requirements under certain circumstances, and setting maximum setback requirements under all other circumstances. The bill would require an applicant to sign an affidavit stating that they intend to occupy one of the housing units as their principal residence for a minimum of 3 years from the date of the approval of the urban lot split, unless the applicant is a community land trust or a qualified nonprofit corporation, as specified. The bill would prohibit a local agency from imposing any additional owner occupancy standards on applicants. By requiring applicants to sign affidavits, thereby expanding the crime of perjury, the bill would impose a state-mandated local program.

The bill would also extend the limit on the additional period that may be provided by ordinance, as described above, from 12 months to 24 months and would make other conforming or nonsubstantive changes.

The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment. CEQA does not apply to the approval of ministerial projects.

This bill, by establishing the ministerial review processes described above, would thereby exempt the approval of projects subject to those processes from CEQA.

The California Coastal Act of 1976 provides for the planning and regulation of development, under a coastal development permit process, within the coastal zone, as defined, that shall be based on various coastal resources planning and management policies set forth in the act. 94 Ch. 162 — 2 —
This bill would exempt a local agency from being required to hold public hearings for coastal development permit applications for housing developments and urban lot splits pursuant to the above provisions.

By increasing the duties of local agencies with respect to land use regulations, the bill would impose a state-mandated local program.

The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for specified reasons.

The people of the State of California do enact as follows:

SECTION 1. Section 65852.21 is added to the Government Code, to read:
65852.21. (a) A proposed housing development containing no more than two residential units within a single-family residential zone shall be considered ministerially, without discretionary review or a hearing, if the proposed housing development meets all of the following requirements:
(1) The parcel subject to the proposed housing development is located within a city, the boundaries of which include some portion of either an urbanized area or urban cluster, as designated by the United States Census Bureau, or, for unincorporated areas, a legal parcel wholly within the boundaries of an urbanized area or urban cluster, as designated by the United States Census Bureau.
(2) The parcel satisfies the requirements specified in subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision (a) of Section 65913.4. (3) Notwithstanding any provision of this section or any local law, the proposed housing development would not require demolition or alteration of any of the following types of housing:
(A) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income.
(B) Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power.
(C) Housing that has been occupied by a tenant in the last three years. (4) The parcel subject to the proposed housing development is not a parcel on which an owner of residential real property has exercised the owner’s rights under Chapter 12.75 (commencing with Section 7060) of Division 7 of Title 1 to withdraw accommodations from rent or lease within 15 years before the date that the development proponent submits an application.
94 — 3 — Ch. 162
(5) The proposed housing development does not allow the demolition of more than 25 percent of the existing exterior structural walls, unless the housing development meets at least one of the following conditions:
(A) If a local ordinance so allows.
(B) The site has not been occupied by a tenant in the last three years. (6) The development is not located within a historic district or property included on the State Historic Resources Inventory, as defined in Section 5020.1 of the Public Resources Code, or within a site that is designated or listed as a city or county landmark or historic property or district pursuant to a city or county ordinance.
(b) (1) Notwithstanding any local law and except as provided in paragraph (2), a local agency may impose objective zoning standards, objective subdivision standards, and objective design review standards that do not conflict with this section.
(2) (A) The local agency shall not impose objective zoning standards, objective subdivision standards, and objective design standards that would have the effect of physically precluding the construction of up to two units or that would physically preclude either of the two units from being at least 800 square feet in floor area.
(B) (i) Notwithstanding subparagraph (A), no setback shall be required for an existing structure or a structure constructed in the same location and to the same dimensions as an existing structure.
(ii) Notwithstanding subparagraph (A), in all other circumstances not described in clause (i), a local agency may require a setback of up to four feet from the side and rear lot lines.
(c) In addition to any conditions established in accordance with subdivision (b), a local agency may require any of the following conditions when considering an application for two residential units as provided for in this section:
(1) Off-street parking of up to one space per unit, except that a local agency shall not impose parking requirements in either of the following instances:
(A) The parcel is located within one-half mile walking distance of either a high-quality transit corridor, as defined in subdivision (b) of Section 21155 of the Public Resources Code, or a major transit stop, as defined in Section 21064.3 of the Public Resources Code.
(B) There is a car share vehicle located within one block of the parcel. (2) For residential units connected to an onsite wastewater treatment system, a percolation test completed within the last 5 years, or, if the percolation test has been recertified, within the last 10 years. (d) Notwithstanding subdivision (a), a local agency may deny a proposed housing development project if the building official makes a written finding, based upon a preponderance of the evidence, that the proposed housing development project would have a specific, adverse impact, as defined and determined in paragraph (2) of subdivision (d) of Section 65589.5, upon public health and safety or the physical environment and for which there is 94 Ch. 162 — 4 —
no feasible method to satisfactorily mitigate or avoid the specific, adverse impact.
(e) A local agency shall require that a rental of any unit created pursuant to this section be for a term longer than 30 days.
(f) Notwithstanding Section 65852.2 or 65852.22, a local agency shall not be required to permit an accessory dwelling unit or a junior accessory dwelling unit on parcels that use both the authority contained within this section and the authority contained in Section 66411.7. (g) Notwithstanding subparagraph (B) of paragraph (2) of subdivision (b), an application shall not be rejected solely because it proposes adjacent or connected structures provided that the structures meet building code safety standards and are sufficient to allow separate conveyance. (h) Local agencies shall include units constructed pursuant to this section in the annual housing element report as required by subparagraph (I) of paragraph (2) of subdivision (a) of Section 65400.
(i) For purposes of this section, all of the following apply:
(1) A housing development contains two residential units if the development proposes no more than two new units or if it proposes to add one new unit to one existing unit.
(2) The terms “objective zoning standards,” “objective subdivision standards,” and “objective design review standards” mean standards that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal. These standards may be embodied in alternative objective land use specifications adopted by a local agency, and may include, but are not limited to, housing overlay zones, specific plans, inclusionary zoning ordinances, and density bonus ordinances. (3) “Local agency” means a city, county, or city and county, whether general law or chartered.
(j) A local agency may adopt an ordinance to implement the provisions of this section. An ordinance adopted to implement this section shall not be considered a project under Division 13 (commencing with Section 21000) of the Public Resources Code.
(k) Nothing in this section shall be construed to supersede or in any way alter or lessen the effect or application of the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code), except that the local agency shall not be required to hold public hearings for coastal development permit applications for a housing development pursuant to this section.

SEC. 2. Section 66411.7 is added to the Government Code, to read:
66411.7. (a) Notwithstanding any other provision of this division and any local law, a local agency shall ministerially approve, as set forth in this section, a parcel map for an urban lot split only if the local agency determines that the parcel map for the urban lot split meets all the following requirements:
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(1) 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.
(2) (A) Except as provided in subparagraph (B), both newly created parcels are no smaller than 1,200 square feet.
(B) A local agency may by ordinance adopt a smaller minimum lot size subject to ministerial approval under this subdivision. (3) The parcel being subdivided meets all the following requirements:
(A) The parcel is located within a single-family residential zone. (B) The parcel subject to the proposed urban lot split is located within a city, the boundaries of which include some portion of either an urbanized area or urban cluster, as designated by the United States Census Bureau, or, for unincorporated areas, a legal parcel wholly within the boundaries of an urbanized area or urban cluster, as designated by the United States Census Bureau.
(C) The parcel satisfies the requirements specified in subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision (a) of Section 65913.4. (D) The proposed urban lot split would not require demolition or alteration of any of the following types of housing:
(i) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income.
(ii) Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power.
(iii) A parcel or parcels on which an owner of residential real property has exercised the owner’s rights under Chapter 12.75 (commencing with Section 7060) of Division 7 of Title 1 to withdraw accommodations from rent or lease within 15 years before the date that the development proponent submits an application.
(iv) Housing that has been occupied by a tenant in the last three years. (E) The parcel is not located within a historic district or property included on the State Historic Resources Inventory, as defined in Section 5020.1 of the Public Resources Code, or within a site that is designated or listed as a city or county landmark or historic property or district pursuant to a city or county ordinance.
(F) The parcel has not been established through prior exercise of an urban lot split as provided for in this section.
(G) Neither the owner of the parcel being subdivided nor any person acting in concert with the owner has previously subdivided an adjacent parcel using an urban lot split as provided for in this section. (b) An application for a parcel map for an urban lot split shall be approved in accordance with the following requirements:
(1) A local agency shall approve or deny an application for a parcel map for an urban lot split ministerially without discretionary review. (2) A local agency shall approve an urban lot split only if it conforms to all applicable objective requirements of the Subdivision Map Act (Division 94 Ch. 162 — 6 —
2 (commencing with Section 66410)), except as otherwise expressly provided in this section.
(3) Notwithstanding Section 66411.1, a local agency shall not impose regulations that require dedications of rights-of-way or the construction of offsite improvements for the parcels being created as a condition of issuing a parcel map for an urban lot split pursuant to this section. (c) (1) Except as provided in paragraph (2), notwithstanding any local law, a local agency may impose objective zoning standards, objective subdivision standards, and objective design review standards applicable to a parcel created by an urban lot split that do not conflict with this section. (2) A local agency shall not impose objective zoning standards, objective subdivision standards, and objective design review standards that would have the effect of physically precluding the construction of two units on either of the resulting parcels or that would result in a unit size of less than 800 square feet.
(3) (A) Notwithstanding paragraph (2), no setback shall be required for an existing structure or a structure constructed in the same location and to the same dimensions as an existing structure.
(B) Notwithstanding paragraph (2), in all other circumstances not described in subparagraph (A), a local agency may require a setback of up to four feet from the side and rear lot lines.
(d) Notwithstanding subdivision (a), a local agency may deny an urban lot split if the building official makes a written finding, based upon a preponderance of the evidence, that the proposed housing development project would have a specific, adverse impact, as defined and determined in paragraph (2) of subdivision (d) of Section 65589.5, upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. (e) In addition to any conditions established in accordance with this section, a local agency may require any of the following conditions when considering an application for a parcel map for an urban lot split:
(1) Easements required for the provision of public services and facilities. (2) A requirement that the parcels have access to, provide access to, or adjoin the public right-of-way.
(3) Off-street parking of up to one space per unit, except that a local agency shall not impose parking requirements in either of the following instances:
(A) The parcel is located within one-half mile walking distance of either a high-quality transit corridor as defined in subdivision (b) of Section 21155 of the Public Resources Code, or a major transit stop as defined in Section 21064.3 of the Public Resources Code.
(B) There is a car share vehicle located within one block of the parcel. (f) A local agency shall require that the uses allowed on a lot created by this section be limited to residential uses.
(g) (1) A local agency shall require an applicant for an urban lot split to sign an affidavit stating that the applicant intends to occupy one of the 94 — 7 — Ch. 162
housing units as their principal residence for a minimum of three years from the date of the approval of the urban lot split.
(2) This subdivision shall not apply to an applicant that is a “community land trust,” as defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code, or is a “qualified nonprofit corporation” as described in Section 214.15 of the Revenue and Taxation Code.
(3) A local agency shall not impose additional owner occupancy standards, other than provided for in this subdivision, on an urban lot split pursuant to this section.
(h) A local agency shall require that a rental of any unit created pursuant to this section be for a term longer than 30 days.
(i) A local agency shall not require, as a condition for ministerial approval of a parcel map application for the creation of an urban lot split, the correction of nonconforming zoning conditions.
(j) (1) Notwithstanding any provision of Section 65852.2, 65852.21, 65852.22, 65915, or this section, a local agency shall not be required to permit more than two units on a parcel created through the exercise of the authority contained within this section.
(2) For the purposes of this section, “unit” means any dwelling unit, including, but not limited to, a unit or units created pursuant to Section 65852.21, a primary dwelling, an accessory dwelling unit as defined in Section 65852.2, or a junior accessory dwelling unit as defined in Section 65852.22.
(k) Notwithstanding paragraph (3) of subdivision (c), an application shall not be rejected solely because it proposes adjacent or connected structures provided that the structures meet building code safety standards and are sufficient to allow separate conveyance.
(l) Local agencies shall include the number of applications for parcel maps for urban lot splits pursuant to this section in the annual housing element report as required by subparagraph (I) of paragraph (2) of subdivision (a) of Section 65400.
(m) For purposes of this section, both of the following shall apply:
(1) “Objective zoning standards,” “objective subdivision standards,” and “objective design review standards” mean standards that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal. These standards may be embodied in alternative objective land use specifications adopted by a local agency, and may include, but are not limited to, housing overlay zones, specific plans, inclusionary zoning ordinances, and density bonus ordinances.
(2) “Local agency” means a city, county, or city and county, whether general law or chartered.
(n) A local agency may adopt an ordinance to implement the provisions of this section. An ordinance adopted to implement this section shall not be 94 Ch. 162 — 8 —
considered a project under Division 13 (commencing with Section 21000) of the Public Resources Code.
(o) Nothing in this section shall be construed to supersede or in any way alter or lessen the effect or application of the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code), except that the local agency shall not be required to hold public hearings for coastal development permit applications for urban lot splits pursuant to this section.

SEC. 3. Section 66452.6 of the Government Code is amended to read:
66452.6. (a) (1) An approved or conditionally approved tentative map shall expire 24 months after its approval or conditional approval, or after any additional period of time as may be prescribed by local ordinance, not to exceed an additional 24 months. However, if the subdivider is required to expend two hundred thirty-six thousand seven hundred ninety dollars ($236,790) or more to construct, improve, or finance the construction or improvement of public improvements outside the property boundaries of the tentative map, excluding improvements of public rights-of-way that abut the boundary of the property to be subdivided and that are reasonably related to the development of that property, each filing of a final map authorized by Section 66456.1 shall extend the expiration of the approved or conditionally approved tentative map by 48 months from the date of its expiration, as provided in this section, or the date of the previously filed final map, whichever is later. The extensions shall not extend the tentative map more than 10 years from its approval or conditional approval. However, a tentative map on property subject to a development agreement authorized by Article 2.5 (commencing with Section 65864) of Chapter 4 of Division 1 may be extended for the period of time provided for in the agreement, but not beyond the duration of the agreement. The number of phased final maps that may be filed shall be determined by the advisory agency at the time of the approval or conditional approval of the tentative map. (2) Commencing January 1, 2012, and each calendar year thereafter, the amount of two hundred thirty-six thousand seven hundred ninety dollars ($236,790) shall be annually increased by operation of law according to the adjustment for inflation set forth in the statewide cost index for class B construction, as determined by the State Allocation Board at its January meeting. The effective date of each annual adjustment shall be March 1.

The adjusted amount shall apply to tentative and vesting tentative maps whose applications were received after the effective date of the adjustment. (3) “Public improvements,” as used in this subdivision, include traffic controls, streets, roads, highways, freeways, bridges, overcrossings, street interchanges, flood control or storm drain facilities, sewer facilities, water facilities, and lighting facilities.
(b) (1) The period of time specified in subdivision (a), including any extension thereof granted pursuant to subdivision (e), shall not include any period of time during which a development moratorium, imposed after approval of the tentative map, is in existence. However, the length of the moratorium shall not exceed five years.
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(2) The length of time specified in paragraph (1) shall be extended for up to three years, but in no event beyond January 1, 1992, during the pendency of any lawsuit in which the subdivider asserts, and the local agency that approved or conditionally approved the tentative map denies, the existence or application of a development moratorium to the tentative map. (3) Once a development moratorium is terminated, the map shall be valid for the same period of time as was left to run on the map at the time that the moratorium was imposed. However, if the remaining time is less than 120 days, the map shall be valid for 120 days following the termination of the moratorium.
(c) The period of time specified in subdivision (a), including any extension thereof granted pursuant to subdivision (e), shall not include the period of time during which a lawsuit involving the approval or conditional approval of the tentative map is or was pending in a court of competent jurisdiction, if the stay of the time period is approved by the local agency pursuant to this section. After service of the initial petition or complaint in the lawsuit upon the local agency, the subdivider may apply to the local agency for a stay pursuant to the local agency’s adopted procedures. Within 40 days after receiving the application, the local agency shall either stay the time period for up to five years or deny the requested stay. The local agency may, by ordinance, establish procedures for reviewing the requests, including, but not limited to, notice and hearing requirements, appeal procedures, and other administrative requirements.
(d) The expiration of the approved or conditionally approved tentative map shall terminate all proceedings and no final map or parcel map of all or any portion of the real property included within the tentative map shall be filed with the legislative body without first processing a new tentative map. Once a timely filing is made, subsequent actions of the local agency, including, but not limited to, processing, approving, and recording, may lawfully occur after the date of expiration of the tentative map. Delivery to the county surveyor or city engineer shall be deemed a timely filing for purposes of this section.
(e) Upon application of the subdivider filed before the expiration of the approved or conditionally approved tentative map, the time at which the map expires pursuant to subdivision (a) may be extended by the legislative body or by an advisory agency authorized to approve or conditionally approve tentative maps for a period or periods not exceeding a total of six years. The period of extension specified in this subdivision shall be in addition to the period of time provided by subdivision (a). Before the expiration of an approved or conditionally approved tentative map, upon an application by the subdivider to extend that map, the map shall automatically be extended for 60 days or until the application for the extension is approved, conditionally approved, or denied, whichever occurs first. If the advisory agency denies a subdivider’s application for an extension, the subdivider may appeal to the legislative body within 15 days after the advisory agency has denied the extension.
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(f) For purposes of this section, a development moratorium includes a water or sewer moratorium, or a water and sewer moratorium, as well as other actions of public agencies that regulate land use, development, or the provision of services to the land, including the public agency with the authority to approve or conditionally approve the tentative map, which thereafter prevents, prohibits, or delays the approval of a final or parcel map. A development moratorium shall also be deemed to exist for purposes of this section for any period of time during which a condition imposed by the city or county could not be satisfied because of either of the following:
(1) The condition was one that, by its nature, necessitated action by the city or county, and the city or county either did not take the necessary action or by its own action or inaction was prevented or delayed in taking the necessary action before expiration of the tentative map. (2) The condition necessitates acquisition of real property or any interest in real property from a public agency, other than the city or county that approved or conditionally approved the tentative map, and that other public agency fails or refuses to convey the property interest necessary to satisfy the condition. However, nothing in this subdivision shall be construed to require any public agency to convey any interest in real property owned by it. A development moratorium specified in this paragraph shall be deemed to have been imposed either on the date of approval or conditional approval of the tentative map, if evidence was included in the public record that the public agency that owns or controls the real property or any interest therein may refuse to convey that property or interest, or on the date that the public agency that owns or controls the real property or any interest therein receives an offer by the subdivider to purchase that property or interest for fair market value, whichever is later. A development moratorium specified in this paragraph shall extend the tentative map up to the maximum period as set forth in subdivision (b), but not later than January 1, 1992, so long as the public agency that owns or controls the real property or any interest therein fails or refuses to convey the necessary property interest, regardless of the reason for the failure or refusal, except that the development moratorium shall be deemed to terminate 60 days after the public agency has officially made, and communicated to the subdivider, a written offer or commitment binding on the agency to convey the necessary property interest for a fair market value, paid in a reasonable time and manner.

SEC. 4. The Legislature finds and declares that ensuring access to affordable housing is a matter of statewide concern and not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Sections 1 and 2 of this act adding Sections 65852.21 and 66411.7 to the Government Code and Section 3 of this act amending Section 66452.6 of the Government Code apply to all cities, including charter cities.

SEC. 5. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution 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 or 94 — 11 — Ch. 162
because costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.

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94 Ch. 162 — 12 —

Beverly Hills City CouncilNovember 15, 2022

Beverly Hills City Council
November 15, 2022