Agenda Report
Fullerton City Council
MEETING DATE: MAY 17, 2022
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: ERIC J. LEVITT, CITY MANAGER
PREPARED BY: GREGORY PFOST, INTERIM DIRECTOR OF COMMUNITY AND ECONOMIC DEVELOPMENT
VINCE FREGOSO, CONTRACT PLANNER
SUBJECT: SB 9 TWO-UNIT AND URBAN LOT SPLIT RESIDENTIAL DEVELOPMENT STANDARDS
SUMMARY
On April 13, 2022, the Planning Commission unanimously recommended that City Council approve amendments to Fullerton Municipal Code Title 15 (Zoning) and Title 16 (Subdivisions) and adopt objective development standards for SB 9 projects.
RECOMMENDATION
Introduce Ordinance No. XXXX for first reading by title only and waive further reading of the ordinance.
ORDINANCE NO. XXXX - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FULLERTON, CALIFORNIA, APPROVING AN AMENDMENT TO FULLERTON municipal code chapters 15 (ZONING) AND 16 (SUBDIVISIONS) TO CREATE TWO RESIDENTIAL UNITS PER LOT AND URBAN LOT SPLITS PURSUANT tO SENATE BILL 9 Adopt Resolution No. 2022-XXX.
RESOLUTION NO. 2022-XXX - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FULLERTON, CALIFORNIA, APPROVING A FEE FOR URBAN LOT SPLITS IN CONJUNCTION WITH SB 9 PROJECTS Direct Community and Economic Development staff to:
commence work on updates to the historic preservation section of Fullerton Municipal Code Title 15 (Zoning) commence work on creation of a Citywide inclusionary housing ordinance.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Fiscal and Organizational Stability.
FISCAL IMPACT
The applicant pays all City costs associated with the application review, processing, environmental analysis, plan check, permitting and inspections. Additionally, the Applicant will pay all associated impact fees related to parks, schools and utilities.
DISCUSSION
A new housing bill, known as Senate Bill 9 (SB 9), became effective throughout California on January 1, 2022. SB 9 is one of several Housing Bills that adopted by the State Legislature in the past few years to address California’s housing needs. SB 9 requires cities to establish two different processes for single-family zoned lots that could achieve up to four dwelling units. Under SB 9, a single-family zoned lot may by right (without a public hearing) add an additional dwelling unit on its lot if it meets the requirements of SB 9 and the objective standards set by the City. Additionally, a single-family zoned lot may split and have up to two primary dwelling units developed on each lot by right (without a public hearing).
The City of Fullerton has consistently amended the Municipal Code to remain in compliance with new state housing laws. SB 9 allows local agencies to amend their municipal codes and impose reasonable objective zoning, subdivision and design review standards for Two-Unit Developments and Urban Lot Split projects. Amending the Municipal Code to remain consistent with State Law is not only a best practice for local municipalities but also allows the City to retain local control over aspects that would otherwise default back to state law. This proposed Ordinance would codify objective development standards as allowed by SB 9 to address development anticipated by this new state law while continuing to advance the State’s goal to accommodate California’s growing population.
Senate Bill 9 amended Government Code Section 66452.6 and added Government Code Section 65852.21 and 66411.7. As stated earlier, these regulations broadly created two new processes with respect to housing development, Two-Unit Projects and the Urban Lot Split. The following highlights key components of each process:
Two-Unit Projects
Allows construction of two primary dwellings on one legal lot plus any ADU and/or JADU allowed under State Law and FMC 15.17.100 Pertains to lots in a single-family residential zone only, including one created by SB 9 Requires ministerial review process
Establishes maximum parking requirement as one off-street parking space per primary dwelling unit, subject to exceptions established under SB 9 Establishes side and rear setbacks of four feet
Prohibits SB 9 units from operating as short-term rentals Prohibits demolition or alteration of affordable housing and certain rental housing Prohibits properties in a historic district or listed historic property from using SB 9 provisions Allows adoption of objective zoning, subdivision and design review standards by local ordinance.
Urban Lot Splits
Maximum of two dwelling units of any kind may be built
Allows splitting existing lots into two lots
Pertains to lots in a single-family residential zone only Requires ministerial review process (by right development) Establishes minimum parcel size for resulting lots of 1,200 square feet and where lot split results in no less than a relative 60/40 relationship of the proportional areas of the lots Prohibits subject lot from a future SB 9 split if a prior SB 9 lot split created the subject lot Prohibits coordination with an SB 9 lot split on adjacent property Prohibits properties in a historic district or listed historic property from a split Allows adoption of objective zoning, subdivision and design review standards by local ordinance.
The objective standards contained in the proposed Ordinance provide a basic set of zoning, subdivision and design review standards which ensure that while the City complies with SB 9, it balances facilitating housing production with ensuring that the resulting development occurs in a manner compatible with the adjacent built environment and aligned with infrastructure capabilities. Objective standards must be measurable and cannot be subjective or based on opinion. An example of an objective standard is the City’s proposal to require a 10-foot setback between structures.
Staff contends that the proposed standards will not conflict with any of the provisions of SB 9. Therefore, staff recommends that City Council approve the proposed Ordinance.
Prior City Council Action
The Community and Economic Development Department presented an urgency ordinance to City Council on December 21, 2021 to approve interim objective standards for the implementation of SB 9. The Ordinance adopted interim standards until such time as staff prepared a permanent SB 9 ordinance. City Council held a public hearing and three Council Members voted to adopt the urgency ordinance and two Council Members abstained. Adoption of an urgency ordinance requires four affirmative votes. As a result, City Council did not adopt the proposed urgency ordinance. City Council directed staff to prepare a permanent SB 9 ordinance for their review and approval. Staff prepared the attached ordinance in conjunction with feedback from Planning Division staff, the Public Works Department and the City Attorney’s Office.
Planning Commission Action
The Planning Commission held a public hearing on the proposed ordinance on March 30, 2022 and continued the item for two weeks, based on community input and questions raised by the Commission and to allow staff time to conduct additional research.
The Commission held another public hearing on the item on April 13, 2022. At this meeting, staff addressed two Commission items: all affected properties will have mature trees (minimum 36-inch box trees) and shrubs (minimum 15-gallon shrubs) planted and the proposed ordinance, as amended by the Commission, intends to preserve the City’s historic properties and residential preservation zones. Commission action included the following modifications and recommendations:
Modified FMC Section 15.17.130.C.1 and Section 16.03.070.B.4.(a) to include language in the proposed ordinance to exclude properties in the Residential Preservation Zones from eligible sites.
Modified Sections 15.17.130.F.1.(h) to require mature landscaping planted within all development sites.
Recommended that City Council direct staff to prepare revisions to the Municipal Code pertaining to historic preservation.
Recommended that City Council direct staff to prepare revisions to the Municipal Code pertaining to inclusionary housing.
Staff informed the Commission that concerns remain regarding the City’s ability to prohibit SB 9 development on properties with the preservation zone designation due to a recent interpretation of “historic structures and districts” by the State Attorney General’s (AG) Office. Specifically, language within SB 9 intends to protect “historic structures and districts” but remains silent on “preservation zones.” The AG has made a narrow interpretation of the definition of a “historic district” that would not allow Fullerton to apply SB 9 to Fullerton’s preservation zones. To assist in allowing the exemption of the preservation zones from SB 9 development, the Commission recommended that City Council direct staff to begin work on updating the historic preservation sections of the Zoning Code and include language that would preserve Fullerton’s historic resources.
Additionally, the Planning Commission has recommended that City Council direct staff to prepare a Citywide inclusionary housing ordinance. Since SB 9 provides more affordable housing throughout the State, an inclusionary housing ordinance would allow the City to require one or more of the units be affordable. The inclusionary ordinance would identify the type and level of affordability.
Fees
SB 9 will establish a new review process for these projects which requires new or modified fees for the project applications. Staff has determined the effort needed to process an SB 9 project the same as processing an application for an accessory dwelling unit. Staff proposes setting the same fee for a proposed two-unit housing development application as the accessory dwelling unit fee. Further, if the project entails an urban lot split, staff has determined that the amount of work needed to process a ministerial parcel map equals half the work for a discretionary parcel map. As a result, staff proposes that the fee for an urban lot split equal 50 percent of the current fee to process a parcel map. For reference, the following lists the amounts to collect pending any adjustments through the fee adoption process:
Urban Lot Split - $3,920.20 in FY 2021-22 ($6,191.99 in FY 2022-23) Two-Lot Project - $1,215.36 in FY 2021-22 ($1,215.36 in FY 2022-23) Environmental Review
The adoption of an ordinance to implement Urban Lot Splits and Two-Unit Housing Projects under SB 9 is not deemed a project under the California Environmental Quality Act (CEQA) (Government Code Section 65852.21 and 66411.7).
Attachments:
Attachment 1 – PowerPoint Presentation
Attachment 2 – Draft Ordinance No. XXXX
Attachment 3 – Draft Ordinance and Urgency Ordinance Comparison – Redline Attachment 4 – Draft Resolution No. 2022-XXX
Senate Bill 9
May 17, 2022 - Page 10