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September 17, 2024
ITEM TITLE
Housing Production: Report on Available Tools for Homeowners to Build Accessory Dwelling Units and Amendment to the Master Fee Schedule to Establish Fees for Permitting ADUs Report Number: 24-0225
Location: No specific geographic location
Department: Housing and Homeless Services and Development Services
G.C. § 84308: No
Environmental Notice : The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act (“CEQA”) State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
Recommended Action
Hear the report and adopt a resolution to amend Chapt er 10-400 of the Master Fee Schedule to establish a flat fee for the building permit review of Accessory Dwelling Unit (“ADU”) Standard Plans and clarify fees for ADUs.
SUMMARY
In April 2023 , pursuant to Council Resolution No. 2022 -101, the City of Chula Vista ( “City”) received a Housing Acceleration Program ( “HAP”) grant from the San Diego Association of Governments (“SANDAG”) to develop tools to assist homeowners that desire to construct ADUs in Chula Vista . The tools consist of a comprehensive resource page on the City’s website, standard plans to streamline design review, placement software to visualize ADUs on parcels, and a pilot program through matching funds to provide forgivable loan funds to homeowners willing to construct and restrict A DUs for affordable rents. The proposed item provides an update on these efforts, establishes a flat fee for the review of the new ADU Standard Plans, and clarifies fees for other ADU construction.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with CEQA and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines, because the proposed activity consists of a reporting action that will not resu lt in a physical change in the P a g e | 2
environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable. The Housing & Homeless Advisory Commission and Planning Commission will be provided an update on this item at their next meetings.
DISCUSSION
The production of ADUs has become an important tool as local jurisdictions grapple with the State of California’s housing crisis and attempt to meet the housing needs of their population. The City’s 2021-2029 adopted Housing Element identified several implementing programs to promote the construction of ADUs , including 2.14 “Promote Accessory Dwelling Unit Construction” and 2.17 “Permit Ready ADUs” . In 2023, to implement goals within the programs , the City applied for SANDAG HAP funds to create streamlining tools for homeowners desiring to build ADUs.
ADU Resource Tools
The following deliverables were created with HAP funds to promote the production of ADUs:
Website – Dedicated webpages (chulavistaca.gov/adus) have been established to ensure a one -stop location for all ADU resources , including the new ADU standard plans, answers to frequently asked questions, and permitting fee information.
Visualizing software – In partnership with Symbium, the City launched Build for Chula Vista to provide a platform for homeowners to visualize and “place” ADUs on their property. Standard Plans – Through a partnership with SnapADU, Chula Vista residents can now gain access to twelve (12) pre-designed ADU options (“ADU Standard Plans”). Using the standard plans will expedite the permit review and approval process, reduce estimated costs by m ore than $10,000 ( private plan development and City plan check fees), and therefore facilitate more efficient ADU construction.
In addition to the above, staff will be adding a section to the ADU resource webpage to comply with Assembly Bill 1332 (“AB 1332”), which requires by January 1, 2025, that all Californian cities and municipalities have a process to accept and review plans to deem them “pre-approved” for use by applicants or other property owners in the future. If plans are submitted and approved, the law promotes the publication of these plans on the city website so that a larger public can view them. Any ADU plans following the process and being approved would be added to the City’s existing Standard Plans and be subject to the new permitting fee s being established via this item.
Pilot Loan Program
To increase competitiveness in the HAP grant application, the City proposed the use of up to $200,000 in Inclusionary Housing funds towards a loan program to construct ADUs , pursuant to Council Resolution No. 2022-102/Housing Authority Resolution No. 2022 -003. The program established by the City allowed forgivable loans of up to $100,000 each to moderate -income homeowners and required that ADUs be restricted at an affordable rent to low -income households for fifteen years after completion. Two eligible moderate-income homeowners have been identified as of April 2024 and are currently working with staff to P a g e | 3
execute documents, identify contractors, and secure permits. One homeowner will be using the new ADU Standard Plans. The loan program will add to the City’s housing stock, help moderate -income homeowners increase the value of their home, and enable low-income renters to remain in Chula Vista.
Proposed Permit Fees
Using the ADU Standard Plans will reduce plan check permitting fees by approximately $1,000. Staff will still need to review the following items: Title Sheet & Project Specific Checklist for accuracy and completeness ; energy compliance forms specific to the property; Storm water Best Management Practices (“ BMPs”); site plan; truss calculations ; the soils report or verify letter provided by a California Registered Engineer; verification of existing utility services and/or any new proposed utility services. The required review would be conducted by the Development Services Department (“DSD”) and the proposed fee is recommended to offset the reasonably anticipated cost of review as described above and as reflected in Attachment 1 and summarized below.
Description Hours Amount
Accessory Dwelling Unit Standard Plan Review 2.5 $533
Because this is an entirely new program, the time spent providing this review services will be monitored and adjustments to these fees will be brought to the City Council for consideration in the future, if appropriate.
Attachment 2 proposes amendments to Chapter 10-400 of the City’s Master Fee Schedule to include the new standard rate and other fees related to ADUs that already exist elsewhere in the City’s Master Fee Schedule but are now being added and reworded in this new section to consolidate and clarify fees specific to ADU’s.
In addition, under the section “ Room Addition - Multi-story, each additional 300 SF ”, the total has been updated to $529 to correct a prior typographical error as previously adopted by Resolution No. 2019-050.
Conclusion
The City has taken several steps to remain compliant with state law and streamline processing of ADUs.
Utilizing ADU Standard Plans will provide applicants significant savings on the design and plan preparation associated with building an ADU. The typical cost for the design and preparation of plans is 5 -10% of the total project cost, depending on whether a designer or a California Licensed Architect is used. In Chula Vista, the typical project cost can range between $300 to $500 a square foot depending on the design preferences, complexity and materials used for the project. For example, a 600 square foot ADU with a total build cost of $180,000 - $300,000, may incur design and plan preparation costs between $9,000 and $30,000.
Staff will continue to look for opportunities to promote policy and funding around ADU production as a more affordable housing option within the City.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not a site - specific and consequently, the real property holdings of the City Council members do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov’t Code §87100, et seq.).
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CURRENT-YEAR FISCAL IMPACT
Adopting the resolution amends the Master Fee Schedule to establish full cost recovery fees for review of ADU Standard Plans. This action supports o ptimal cost recovery for the City, in accordance with the City’s Cost Recovery Policy (City Council Policy No. 159-03).
Impacts to revenues in the current fiscal year will vary based upon actual requests for review of ADU Standard Plans. No additional apportions are requreid.
ONGOING FISCAL IMPACT
Impacts to revenues in future years will vary based upon actual requests review of ADU Standard Plans . If the resolution is approved, future budgets will reflect actual revenues generated by the new fee.
ATTACHMENTS
1. Fee Cost of Service Analysis
2. Redline Updates to Chapter 10-400 of the Master Fee Schedule Staff Contact: Stacey Kurz, Director of Housing & Homeless Services Chris Stanley, Senior Planner, Housing & Homeless Services Laura C. Black, Director of Development Services
Shayne Wagner, Building Official