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Planning Commission Staff Report Dated May 28, 2024 (not including attachments)

Diamond Bar City Council
June 18, 2024

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Planning Commission Staff Report Dated May 28, 2024 (not including attachments)
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June 18, 2024
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Diamond Bar City Council
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PLANNING COMMISSION

AGENDA REPORT
AGENDA ITEM NUMBER: 7.1
MEETING DATE: May 28, 2024
CASE/FILE NUMBER: Development Code Amendment No. PL2022-59 PROJECT LOCATION: Citywide
APPLICATION REQUEST:

APPLICANT:

STAFF RECOMMENDATION:

To amend various provisions of Title 22
(Development Code) of the Diamond Bar City
Code to implement Housing Programs contained
in the City’s certified 2021-2029 Housing
Element, to conform to changes in new State
housing laws and City policies, and to make
typographical corrections and clarifications.

Community Development Department
Adopt the attached Resolution recommending
the City Council approve Development Code
Amendment No. PL2022-59.

The matter was originally scheduled to be heard on May 14, 2024. However, due to a lack of quorum, the meeting was adjourned pursuant to Government Code Sections 54955 and 54955.1, and all business and public hearing items scheduled before the Planning Commission for May 14, 2024, were continued to May 28, 2024.

SUMMARY:

The Diamond Bar Development Code (Title 22 of the Diamond Bar City Code) was first adopted in 1998. Its purpose and intent are “to implement the policies of the Diamond Bar general plan by classifying and regulating the uses of land and structures within the City of Diamond Bar.”1 Amendments to the Development Code are needed from time to reflect community values, to keep pace with new state and federal laws, to implement 1 DBCC §22.01.020
CITY OF DIAMOND BAR ~ 21810 COPLEY DRIVE ~ DIAMOND BAR, CA 91765 ~ TEL. (909) 839-7030 ~ FAX (909) 861-3117

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local policies, and to resolve the internal inconsistencies and errors that are eventually encountered.

In the wake of the numerous housing and development laws passed by the State Legislature in recent years, together with the housing programs contained in the City’s certified 2021-2029 Housing Element, staff is recommending adoption of an omnibus ordinance that would amend several sections of the Development Code to ensure continued conformance with State law. The proposed ordinance also incorporates several “cleanup” items to clarify the intent of various existing regulations.

BACKGROUND:

State Housing Laws
In addition to the routine cleanup items and the codifying of miscellaneous laws that the City is already subject to, the amendments proposed in the attached ordinance (Attachment B) are largely focused on ensuring that the City is in compliance with the onslaught of housing laws passed by the State Legislature in recent years. These laws were discussed during a joint study session of the City Council and Planning Commission on March 26, 2024, and are summarized below:
• The Housing Accountability Act (Gov't Code §65589.5) prevents cities from applying non-objective development standards and findings to proposed housing development projects, limits cities' authority to disapprove or impose certain conditions on proposed housing development projects, and imposes other temporal and procedural limits on cities' review of housing projects. “Objective” standards are those that involve no personal or subjective judgment and are uniformly verifiable by reference to an external benchmark or criterion. Cities or counties found to have acted in violation of the Housing Accountability Act may be subject to certain enhanced remedies, including significant fines.
• The Housing Crisis Act of 2019 (SB 330) established laws intended to streamline housing development approvals, requires cities to maintain their existing affordable housing stock and protect displaced tenants of affordable housing units, limits cities' authority to rezone property to a lower residential density, and restricts cities from establishing new residential design standards that are not objective. • State Density Bonus Law (“SDBL,” Gov't Code §65915-65918), as amended by AB 1287, requires cities to grant increased density, incentives and concessions, and waivers of development standards to residential developers in exchange for the production of affordable housing units.
• No Net Loss Law (Gov't Code §65863) requires that a city make specified findings before it allows development of a parcel at a lower residential density than identified in the city's housing element for that parcel or takes any other administrative, quasijudicial, or legislative action to reduce, require, or permit the reduction of the allowable residential density for such a parcel.

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• Housing Element Law (Gov't Code §§65580 – 65589.11), among other things, requires cities to identify and remove governmental constraints on the production of housing, to treat transitional and supportive housing similarly to other residential dwellings, and to provide for a variety of housing types, including single-room occupancy housing.
• Senate Bill 35 (Gov't Code §65913.4) requires cities to ministerially review and approve qualifying affordable housing projects in an effort to meet statewide affordable housing goals.
• Government Code §65651, et seq. and §65660, et seq. require cities to allow certain supportive housing projects and low-barrier navigation centers as uses to be established by right.
• Accessory Dwelling Unit (ADU) and Junior Accessory Dwelling Unit (JADU) Law (Article 2, commencing with § 66314, of Chapter 13 of Division 1 of Title 7 of the Government Code) requires cities to adopt ordinances providing for streamlined ministerial review and approval of ADUs and JADUs and limiting the development standards cities can apply to ADUs and JADUs.

Diamond Bar Housing Element
The proposed amendments also implement several of the housing programs contained in the City's certified 2021-2029 Housing Element, as summarized below:
• Program H-11. Housing for Persons with Special Needs - Continue to facilitate emergency shelters and transitional/supportive housing and continue participating with Los Angeles Homeless Services Authority and San Gabriel Valley Council of Governments on efforts to address homelessness throughout the planning period.

Process an amendment to the Development Code to allow supportive housing, low barrier navigation centers and large residential care facilities consistent with State law.

The proposed Code amendment would update the land use table to reflect mandatory changes in State law, including: removing the Conditional Use Permit (CUP) requirement for residential care facilities serving seven or more persons in all residential zones and reclassify them as permitted by right; permitting “transitional/supportive housing” by right in all residential zones, subject to certain requirements; and adding "supportive housing for the homeless" and "low-barrier navigation centers” as permitted uses by right in the Industrial zoning district, subject to certain requirements pursuant to Government Code Section 65653. • Program H-12. Affordable Housing Incentives/Density Bonus - Amend the Development Code in 2021 consistent with current Density Bonus Law and continue to encourage the production of affordable housing through the use of density bonus and other incentives.

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The proposed Code amendment would update the City’s density bonus regulations to conform to the current provisions of the SDBL.
• Program H-13. Efficient Project Processing - Continue to offer streamlined development processing, and periodically review departmental processing procedures to ensure efficient project processing.

The proposed Code amendment would implement various provisions of State law aimed to ease local government constraints on housing development, as well as eliminate conflicting provisions found within the Development Code.

ANALYSIS:

Adoption Process
Before the City Council adopts an ordinance to amend the Development Code, the Planning Commission must first conduct a public hearing to consider the proposed amendments. The Commission then forwards its recommendations via a resolution advising the Council whether or not the proposed amendments should be adopted.

Proposed Development Code Amendments
The full text of the proposed code amendments is contained in the draft ordinance (Attachment B). The following discussion cites the applicable Development Code section or chapter being amended, and provides the basis for each proposed amendment. Each item below is numbered to correspond to the section numbering in the ordinance.

1. 22.04.020(c)(3) - Floor Area Ratio: Typographical errors are corrected.

2. 22.08.030 Table 2-3 - Residential District Land Use Table: Consistent with recent State law, the residential land use table is amended to remove the CUP requirement for residential care facilities serving seven or more persons in all residential zones and reclassify them as permitted by right. “Transitional/supportive housing” is added as permitted by right in all residential zones, subject to new requirements set forth under Development Code Section 22.42.170. Lastly, “Second Units” is deleted because the term has been renamed “Accessory Dwelling Units,” and was already added as a permitted use in all residential zones under an earlier ordinance.

3. 22.08.040 Table 2-4 - Restrictions on nonconforming structures: Currently, this section allows for additions to nonconforming structures without approval of a Minor Conditional Use Permit (MCUP) if the addition is limited to one-story and has the same setbacks as the adjoining portion of the existing structure. The intent of this section, when drafted, was to allow the continuation of nonconforming side setbacks only, and has been clarified as such (applies to Sections 3 and 25 of the ordinance).

4. 22.10.030 Table 2-5 - Office District Land Use Table: The current definition of “school” is very broad and encompasses all types of schools, education and training

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facilities, as well as studios. This creates confusion to the public and City staff when determining land use. The proposed amendment would create separate discrete definitions for each. Educational uses such as public schools are now separated from specialized education or training type uses, such as dance studios. Public schools will remain as permitted uses and the new definition of private and trade schools are subject to approval of a CUP in the office zoning districts. “Specialized education and training” will also have its own definition and subject to approval of a CUP in the office zoning districts (applies to Sections 4 and 5 of the ordinance). “Medical services-Clinics and laboratories” is currently a conditionally permitted use in the OP zoning district, but should be a use permitted by right since the OP zoning district is intended for office-based working environments such as general, professional, administrative offices, and similar related compatible uses.

Footnote 6 (Massage) – Deletion of this footnote was inadvertently missed when the City adopted its updated massage ordinance in 2016. This footnote is no longer applicable.

5. 22.10.030 Table 2-6 - Commercial/Industrial District Land Use Table: Consistent with recent State law, the commercial and industrial land use table is proposed to be amended to allow “low-barrier navigation centers” and “transitional/supportive housing” in the Light Industry (I) zoning districts subject to new requirements set forth in Section 22.42.170.

Massage footnote – See item 4 above.

6. 22.16.070(1) - Open space requirement: Currently, the Code requires commercial projects to provide a minimum of 1/10th of one percent of the total land area of the center as useable open space, which is a typographical error and has been corrected to one percent.

7. 22.16.090(3)(c) - Setback regulations and exceptions: The current language provides a loophole whereby some applicants have labeled patio covers as “back porches” on plans and permit applications in an attempt to allow them to encroach into the rear setbacks. To close this loophole, the language has been revised to limit porch encroachments into the front setbacks only.

8. 22.16.130 - View protection: Figure 3-5 is a variation of Figure 3-4, which pertains to setbacks, not view protection, and therefore should be deleted. No replacement figure is necessary.

9. Chapter 22.18 - Special procedures applicable to housing development projects: Because State housing laws have been amended so extensively, Development Code Chapter 22.18 (“Affordable Housing Incentives/Density Bonus Provisions”) is proposed to be repealed in its entirety and replaced it with comprehensively rewritten standards to be fully consistent with State law. The

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revised Chapter 22.18—retitled “Special Procedures Applicable to Housing Development Projects”— the myriad legislative mandates as follows:
a. Density bonus regulations are revised to conform to the current provisions of the SDBL, which requires cities to grant increased density, incentives and concessions, and waivers of development standards to residential developers in exchange for the production of affordable housing units; b. Provisions of the Housing Crisis Act of 2019 are added to require development project proponents to replace demolished residential dwelling units and protected rental units, and to provide relocation assistance and other benefits to existing occupants of demolished protected rental units; c. Minimum requirements for affordable housing regulatory agreements are added;
d. Provisions of State law pertaining to review by the City of applications for permits and/or land use entitlements for housing development projects are enumerated; and
e. The “No Net Loss” provisions of the Housing Crisis Act of 2019 are enumerated.

10.22.30.080 (5)(a)(1) - Driveway extensions for single-family residential property:

Clarification was added that an extension of the driveway towards the side property line farthest from the driveway is not permitted. Additionally, the illustration has been updated to further clarify the intended requirement.

11.22.42.110 Table 3-15 - Setbacks for accessory uses and structures: A minor typographical error is corrected, and a footnote was also added to expressly state that the listed structures and water features are subject to Building Code requirements.

12.22.42.120 - Accessory dwelling units and junior accessory dwelling units: The proposed amendments would ensure compliance with the most recent ADU legislation: AB 2221 and SB 897 (2022), AB 976 and AB 1332 (2023), and SB 477 (2024). These bills made several changes to existing law that clarify certain provisions and further ease development restrictions. The most significant recent change was to height restrictions where the construction of two-story ADUs must now be permitted, subject to certain requirements.

13.22.42.170 - Transitional and supportive housing: A new section is added to address transitional and supportive housing, per State law, specifying that these facilities are permitted in residential zoning districts subject to the same approval requirements, development standards, and restrictions that apply to other residential dwellings of the same type in the same zone, which shall be determined by the City based upon the predominant characteristics of the use. This section also specifies legal requirements, review and approval procedures for "Supportive Housing For the Homeless" and "Low-Barrier Navigation Centers," pursuant to State law. These uses

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are proposed to be permitted uses by right in the Industrial zoning district, subject to certain requirements pursuant to Government Code Section 65653.

14.22.44.020 Table 4-1 - Director vs. Hearing Officer: The proposed amendment identifies the Director—rather than the Hearing Officer—as the review authority for administrative development reviews and minor conditional use permits. References to Hearing Officer have been removed since the Director or their designee has the same authority.

15.22.44.040(a) - Application fees: A typographical error has been corrected from the word “then” to “than.”

16.22.47.020(a) - Plot Plan review: Small projects such as decks and tenant improvements should be processed administratively via the Zoning Clearance application process.

17.22.48.030(b) - Administrative Development Review: Language revised to replace “hearing officer” with “director” (see Item 14 above).

18.22.48.050(a) and (b) - Responsibility for development review: The review authority for Development Review applications should be the Planning Commission, not the “development review commission,” so this typographical error and has been corrected. Under subsection (b), “hearing officer” is replaced with “director.”

19.22.56.020 - MCUP review authority: “Hearing officer is replaced with “director.”

20.22.56.030(c) - MCUP review authority: See item 19.

21.22.56.040 - MCUP review authority: See item 19.

22.22.56.050 - MCUP review authority: See item 19.

23.22.60.020 - Applicability of Specific Plan: A typographical error has been corrected from the word “innovate” to “innovative.”

24.22.68.020(b)(1)(a) - Restrictions on nonconforming uses: A typographical error has been corrected from the word “then” to “than.”

25.Restrictions on nonconforming structures - Section 22.68.030(b)(2): See item 3.

26.22.80.020 - Definitions of specialized terms and phrases: The following definitions are to be added or amended: Low barrier navigation center, Public rightof-way, School (Private, Public and Trade), Specialized education and training, Studio, Supportive housing, and Transitional housing. The housing terms are required in conjunction with the proposed amendments per State housing law. “Public right-of-way” is added since it is not expressly defined anywhere else in the Municipal Code. As noted above, the current definition of “school” is very broad and encompasses all types of schools, education and training facilities, and studios. The proposed amendment would create separate discrete definitions for each.

Staff recommends approval of these amendments in order to eliminate conflicting provisions, provide clarification, and achieve changes in the Development Code

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necessary to implement the Housing Programs in the City’s certified 2021-2029 Housing Element, and compliance with State law.

ENVIRONMENTAL REVIEW:

Staff has determined that the proposed Development Code Amendment is categorically and statutorily exempt from the California Environmental Quality Act (“CEQA”).

Section 27 of the Ordinance provides a detailed analysis to support this determination.

NOTICE OF PUBLIC HEARING:

Notice for this hearing was published in the San Gabriel Valley Tribune newspaper on May 3, 2024, in a 1/8-page display. Pursuant to Planning and Zoning Law Government Code Section 65091(a)(4), if the number of property owners to whom a public hearing notice would be mailed is greater than 1,000, a local agency may provide notice by placing a display advertisement of at least 1/8 page in one newspaper of general circulation. A copy of the public notice was also posted at the City’s designated community posting sites.

PREPARED BY:

REVIEWED BY:

Attachments:

A. Draft Planning Commission Resolution No. 2024-XX (Recommending Approval of Development Code Amendment)
B. Draft Ordinance No. XX (2024)

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