20241217_PH1_ZCA Address State Mandates — Laguna Niguel City Council, December 17, 2024

CITY OF LAGUNA NIGUEL
CIty Council Agenda ITEM
To: Honorable Mayor and Council Members
FROM: Jonathan Orduna, Community Development Director
DATE: December 17, 2024
SUBJECT: Public Hearing to Consider Zoning Code Amendment ZCA 24-1001 and Zoning Code Amendment ZCA 24-1002 to Address State Mandates

RECOMMENDATION
Staff recommends that the City Council open the public hearing, take public testimony, close the public testimony, and then take the following actions:

1. Find that adoption of Zoning Code Amendment ZCA 24-1001 and Zoning Code Amendment ZCA 24-1002 are exempt from the California Environmental Quality Act ("CEQA") because they are both an administrative activity that will not result in a direct or reasonably foreseeable indirect physical change to the environment and thus is not a "project" under State CEQA Guidelines Section 15378 (see State CEQA Guidelines, Section 15060(c)(2) and (3)). Alternatively, even if adoption of ZCA 24-1001 and ZCA 24-1002 did qualify as a project under CEQA, find that it is exempt from CEQA pursuant to Section 15061(b)(3), which provides that a project is exempt from CEQA where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. And find that, moreover, Zoning Code Amendment ZCA 24-1001 is statutorily exempt from CEQA under Public Resources Code section 21080.17.

2. Waive full reading, make any amendments to, and introduce Ordinance No. 2024- 232 (Attachment A) by title:

ORDINANCE NO. 2024-232

AN ORDINANCE OF THE CITY OF LAGUNA NIGUEL, CALIFORNIA,
ADOPTING ZONING CODE AMENDMENT ZCA 24-1001 AMENDING

REGULATIONS PERTAINING TO ACCESSORY DWELLING UNITS AND

JUNIOR ACCESSORY DWELLING UNITS TO CONFORM WITH
REVISIONS TO STATE LAW; AND DETERMINING THE ACTION TO BE

EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
UNDER STATE CEQA GUIDELINES SECTIONS 15060(C)(2), 15060(C)(3), 15061(B)(3), AND PUBLIC RESOURCES CODE SECTION 21080.17. 2 3. Waive full reading, make any amendments to, and introduce Ordinance No. 2024-233 (Attachment C) by title:

ORDINANCE NO. 2024-233

AN ORDINANCE OF THE CITY OF LAGUNA NIGUEL, CALIFORNIA, ADOPTING ZONING CODE AMENDMENT (ZCA) 24-1002 AMENDING VARIOUS SECTIONS OF THE GATEWAY SPECIFIC PLAN TO ADDRESS SEVERAL STATE MANDATES; AND

DETERMINING THE ACTION TO BE EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT UNDER STATE CEQA GUIDELINES SECTIONS 15060(C)(2), 15060(C)(3), AND 15061(B)(3)

4. Direct that the proposed ordinances, with any changes, be placed on the agenda for the January 21, 2025, City Council Meeting and adopt the ordinances at that meeting.

Consistent with this commitment, Zoning Code Amendment ZCA 24-1001 proposes to update zoning regulations pertaining to accessory dwelling units ("ADUs") and junior accessory dwelling units ("JADUs") in the Laguna Niguel Municipal Code ("LNMC"), and Zoning Code Amendment ZCA 24-1002 proposes to update zoning regulations in the Gateway Specific Plan ("GSP") in response to Housing Element Action 3.2.

Planning Commission
On November 12, 2024, the Planning Commission held a public hearing for Zoning Code Amendment ZCA 24-1001 and Zoning Code Amendment ZCA 24-1002, City-initiated ordinances to amend various sections of the LNMC and GSP to address State land-use mandates pertaining to ADUs/JADUs and affordable housing requirements for residential developments of 50 dwelling units/acre or more within the GSP Area. The Planning Commission voted 4-0, recommending that the City Council approve Zoning Code Amendment ZCA 24-1001, and approve Zoning Code Amendment ZCA 24-1002 with modifications to proposed affordable housing requirements to better align with past City practice. The Planning Commission staff report, adopted Resolution No. 24-08 and Resolution No. 24-09, and draft meeting minutes are included as Attachment E. The attached Zoning Code Amendment ZCA 24-1001 includes the Planning Commission's modifications and additional minor clarifying edits to improve clarity for the benefit of applicants, staff, and the general public.
3 Public Comments
In accordance with Government Code Section 65091(a)(4), for projects affecting over 1,000 property owners, a one-eighth (1/8th) page notice of the public hearing describing the project, date, time, and location of the hearing was advertised in the Orange County Register - Laguna Niguel News at least 10 days prior to the hearing date. A notice was also posted at City Hall and was made available on the City website.

As of the writing of this staff report, no public comments have been received in response to this public notice.

ANALYSIS
Zoning Code Amendment ZCA 24-1001 and Zoning Code Amendment ZCA 24-1002, developed in collaboration with the City Attorney's Office, combine multiple Code amendments to fulfill commitments outlined in state law and the City's adopted Housing Element. Below is an overview of the proposed text amendments organized into two topic areas.

Zoning Code Amendment ZCA 24-1001 - Municipal Code Text Amendments (ADUs and JADUs)
On August 22, 2024, the City received written notification from HCD (Attachment F) stating that they had determined that the City's ADU ordinance, including provisions for JADUs, adopted June 20, 2023 (Ordinance 2023-223), did not fully comply with state ADU Law. Additionally, in September 2024, Governor Newsom signed three new ADU bills (AB 2533, SB 1211, and SB 1077) that will take effect on January 1, 2025 (Attachment G).

Zoning Code Amendment ZCA 24-1001 (Attachment A) proposes text changes to the LNMC ADU and JADU provisions to address HCD's comments and the three new ADU bills. Attachment B identifies the proposed LNMC deletions in red strikethrough text and new additions in underlined red text.

Zoning Code Amendment ZCA 24-1002 - Gateway Specific Plan Text Amendments (Affordable Housing and Density)
Action 3.2 of the adopted Housing Element states: "The City will evaluate and amend the Gateway Specific Plan to mandate that any public benefit to achieve a density of higher than 50 du/ac shall include a provision of affordable housing." The City has committed to amending the Gateway Specific Plan by June 30, 2025.

Zoning Code Amendment ZCA 24-1002 (Attachment C) proposes text changes to the ateway Specitic Plan density and public benefit provisions in response to Housin Element Action 3.2. Attachment D identifies the proposed Gateway Specific Pla deletions in red strikethrough text and additions in underlined red text. 4 CEQA COMPLIANCE
These proposed actions are not subject to the provisions of CEQA because they are administrative activities that will not result in a direct or reasonably foreseeable indirect physical change to the environment and are thus not a "project" under state CEQA Guidelines 15378 (see state CEQA Guidelines, Section 15060(c)(2) and (3)). Here, the Code amendments do not constitute a project subject to CEQA because they ensure that the City's standards and permitting requirements are consistent with state law and fair housing laws, as HCD requires. The Code amendments merely codify these requirements in the LNMC and the Gateway Specific Plan. Additionally, the Code amendments are exempt from CEQA under Section 15061(b)(3) of the state CEQA Guidelines, which provides that a project is exempt from CEQA where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Here, there is no possibility that the Code amendments may have a significant effect on the environment because they merely amend the LNMC and Gateway Specific Plan to be consistent with state law and fair housing laws, which are already binding on the City. Moreover, Zoning Code Amendment ZCA 24-1001 is statutorily exempt from CEQA under Public Resources Code section 21080.17 because under section 21080.17, CEQA does not apply to the adoption of an ordinance by a city or county implementing the provisions of Article 2 of Chapter 13 of Division 1 of Title 7 of the California Government Code, which is California's ADU law and which also regulates JADUs, as defined by section 66313. This ordinance implements state ADU law, so adoption of the proposed ordinance is statutorily exempt.

GENERAL PLAN COMPLIANCE
Zoning Code Amendment ZCA 24-1001 is consistent with the Laguna Niguel General Plan as a matter of law under Government Code section 66314(c). Moreover, it is consistent with the Laguna Niguel General Plan, Land Use Element, Policy 1.1, "encourage the development of land uses that contribute to the goal of a well-balanced community," in that the proposed amendments are composed of updates to zoning provisions that would benefit from additional clarity or refined regulations, and revisions to be consistent with current state Law. State law requires that the City deem ADUs to be a "residential use that is consistent with the existing general plan and zoning designation" (Government Code Section 65852.2(a)(1)(C)).

ALTERNATIVE CONSIDERED
The City Council may decide not to introduce the proposed ordinances, but the existing LNMC and GSP provisions will remain unchanged. In such cases, any housing and/or land use requests preempted by state law would be reviewed solely for compliance with 5 those statutes, precluding the application of local review procedures. The City Council may also decide to direct staff to return with revised ordinances to be presented at a future City Council meeting.

FISCAL REVIEW
There is no fiscal impact as a result of the introduction of Ordinance No. 2024-232 and Ordinance No. 2024-233.

LEGAL REVIEW
The City Attorney's Office has reviewed and approved this report and corresponding Ordinances as to form and content.

CONCLUSION
Staff recommends that the City Council open the public hearing, take public testimony, close the public testimony, and then take the following actions:

2. Waive full reading, make any amendments to, and introduce Ordinance No. 2024- 232 (Attachment A) by title:

ORDINANCE NO. 2024-232

AN ORDINANCE OF THE CITY OF LAGUNA NIGUEL, CALIFORNIA,
ADOPTING ZONING CODE AMENDMENT ZCA 24-1001 AMENDING

REGULATIONS PERTAINING TO ACCESSORY DWELLING UNITS AND

JUNIOR ACCESSORY DWELLING UNITS TO CONFORM WITH
REVISIONS TO STATE LAW; AND DETERMINING THE ACTION TO BE

EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
UNDER STATE CEQA GUIDELINES SECTIONS 15060(C)(2), 15060(C)(3), 15061(B)(3), AND PUBLIC RESOURCES CODE SECTION 21080.17. 6 3. Waive full reading, make any amendments to, and introduce Ordinance No. 2024-233 (Attachment C) by title:

ORDINANCE NO. 2024-233

AN ORDINANCE OF THE CITY OF LAGUNA NIGUEL, CALIFORNIA, ADOPTING ZONING CODE AMENDMENT (ZCA) 24-1002 AMENDING VARIOUS SECTIONS OF THE GATEWAY SPECIFIC PLAN TO ADDRESS SEVERAL STATE MANDATES; AND

DETERMINING THE ACTION TO BE EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT UNDER STATE CEQA GUIDELINES SECTIONS 15060(C)(2), 15060(C)(3), AND 15061(B)(3)

4. Direct that the proposed ordinances, with any changes, be placed on the agenda for the January 21, 2025, City Council Meeting and adopt the ordinances at that meeting.

Gratin 4 Monte for: Later Lin
Tamara S. Letourneau Scott C. Smith
City Manager City Attorney
then Elea
Jonathan Orduna John Morgan
Community Development Director Deputy Community Development Director Erica Roes
Erica Roess
Senior Planner
7 Attachments:

A. Ordinance No. 2024-232
Exhibit 1 - Zoning Code Amendment ZCA 24-1001
B. Proposed Laguna Niguel Municipal Code Amendments (marked-up version for reference only)
C. Ordinance No. 2024-233
Exhibit 1 - Zoning Code Amendment ZCA 24-1002
D. Proposed Gateway Specific Plan Amendments (marked-up version for reference only) E. Planning Commission Staff Report, Resolution No. 24-08, Resolution 24-09, and Draft Meeting Minutes of November 12, 2024 (Excerpted)
F. HCD Letter dated August 22, 2024
G. BBK Legal Alert dated October 1, 2024
Attachment A
Ordinance No. 2024-232 (ZCA 24-1001)
ORDINANCE NO. 2024-232

AN ORDINANCE OF THE CITY OF LAGUNA NIGUEL, CALIFORNIA,
ADOPTING ZONING CODE AMENDMENT ZCA 24-1001 AMENDING

REGULATIONS PERTAINING TO ACCESSORY DWELLING UNITS AND

JUNIOR ACCESSORY DWELLING UNITS TO CONFORM WITH
REVISIONS TO STATE LAW; AND DETERMINING THE ACTION TO BE

EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
UNDER STATE CEQA GUIDELINES SECTIONS 15060(C)(2), 15060(C)(3), 15061(B)(3), AND PUBLIC RESOURCES CODE SECTION 21080.17.

The City Council of the City of Laguna Niguel does hereby ordain as follows:

SECTION 1. FINDINGS.

The City Council makes the following findings in connection with the adoption of this Ordinance.

1. By the authority granted to the City of Laguna Niguel ("City") by Article XI, Section 7 of the California Constitution, the City has the police power to regulate the use of land and property within the City in a manner designed to promote public convenience and general prosperity, as well as public health, welfare, and safety.

2. On December 5, 2023, the 2021-2029 (6th cycle) Laguna Niguel Housing Element ("Housing Element") was approved by the City Council.

On February 22, 2024, the California Department of Housing and Community Development ("HCD") found the adopted housing element, including all technical modifications, to be in substantial compliance with the State's Housing Element law (Gov. Code, § 65580 et seq).

4. HCD's determination is subject to the timely and effective implementation of all programs outlined within the Housing Plan, including the City updating its applicable zoning provisions to ensure that development standards and permitting requirements are consistent align with current state mandates.

Section 9-1-35.26 and 9-1-35.27 of the Laguna Niguel Municipal Code ("LNMC") contains the City's regulations implementing state accessory dwelling unit (ADU") and junior accessory dwelling unit "JADU" law, and the City desires to remain in compliance.

6. The proposed Zoning Code Amendment 24-1001 (hereinafter "ZCA 24-1001") is designed to amend 9-1-35.26 and 9-1-35.27 of the LNMC, ensuring compliance with state law by, as outlined in the preceding recitals and accompanying staff report
Ordinance No. 2024-232 Page 2

7. On November 12, 2024 the Planning Commission held a duly noticed public hearing to consider the Ordinance, at which time the Planning Commission considered all evidence presented by City staff and other interested parties;

8. Following the public hearing, the Planning Commission adopted Resolution No. 24-08, recommending that the City Council adopt the Ordinance.

9. On December 5, 2024, a one-eighth (1/8th) page notice of the public hearing describing the project, date, time, and location of the hearing was advertised in the Orange County Register - Laguna Niguel News in accordance with Government Code Section 65091(a)(4) for projects affecting over 1,000 property owners. A notice was also posted at City Hall and was made available on the City's website.

10. On December 17, 2024, the City Council held a duly noticed public hearing on the Ordinance, at which time the City Council considered the Planning Commission's recommendation as well as all evidence presented by City staff and other interested parties.

11. The City Council finds that the Ordinance is consistent with the goals, objectives, and policies of the General Plan, including:

Land Use Element, Policy 1.1, which states that the City will "encourage the development of land uses that contribute to the goal of a well-balanced community," in that the proposed amendments are composed of updates to zoning provisions that would benefit from additional clarity or refined regulations, and revisions to be consistent with current state Law. State Law requires that the City deem ADUs to be a "residential use that is consistent with the existing general plan and zoning designation" (Government Code Section 65852.2(a)(1)(C)).

12. The City Council finds that the Ordinance would not be detrimental to the City's public health, safety, or general welfare in that it will amend various sections of the Laguna Niguel Municipal Code to align with current state land use and housing laws. The proposed amendments are consistent with the General Plan, Housing Element, and other regulations. The proposed amendments would not be detrimental to the public interest, health, safety, convenience, or welfare of the City in that they will merely amend the LNMC to be consistent with state law and fair housing laws. Therefore, the proposed zoning code amendments will not adversely affect public health, safety, or general welfare.

SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA).

Based on the whole record before it, the City Council finds that the adoption of this Ordinance (i.e., ZCA 24-1001) is not subject to the provisions of CEQA because it is an administrative activity that will not result in a direct or reasonably foreseeable indirect physical change to the environment and are thus not a "project" under state CEQA Guidelines 15378 (see state CEQA Guidelines, Section 15060(c)(2) and (3)). Here, the Ordinance No. 2024-232 Page 3
Code amendments do not constitute a project subject to CEQA because they ensure that the City's standards and permitting requirements are consistent with state law and fair housing laws, as HCD requires. The Code amendments merely codify these requirements in the LNMC. Additionally, the Code amendments are exempt from CEQA under Section 15061(b)(3) of the state CEQA Guidelines, which provides that a project is exempt from CEQA where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Here, there is no possibility that the Code amendments may have a significant effect on the environment because they merely amend the LNMC to be consistent with state law and fair housing laws, which are already binding on the City. Moreover, this Ordinance is statutorily exempt from CEQA under Public Resources Code section 21080.17 because under section 21080.17, CEQA does not apply to the adoption of an ordinance by a city or county implementing the provisions of Article 2 of Chapter 13 of Division 1 of Title 7 of the California Government Code, which is California's ADU law and which also regulates JADUs, as defined by section 66313. And this ordinance implements state ADU law, so adoption of the proposed ordinance is statutorily exempt from CEQA.

SECTION 3. ZONING CODE AMENDMENTS.

Based on the entire record before the City Council, all written and oral evidence presented to the Council, the Planning Commission's recommendation, and the findings made in the staff report and this Ordinance, the City Council hereby adopts Zoning Code Amendment ("ZCA") 24-1001 and amends LNMC Sections 9-1-35.26, 9-1-35.27, and 9- 1-142 to read as provided in "Exhibit 1," attached hereto and incorporated herein by reference. The amendments to Section 9-1-142 are limited to adding a definition for livable space, which shall read as provided in Exhibit 1. All remaining provisions within Section 9-1-142 are unchanged by this Ordinance.

SECTION 4. SAVINGS CLAUSE.

Neither the adoption of this Ordinance nor the repeal of any other ordinance of this City shall in any manner affect the prosecution for violations of ordinances, which violations were committed prior to the effective date hereof, nor be construed as a waiver of any penalty or the penal provisions applicable to any violation thereof.

SECTION 5. SEVERABILITY.

If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

Ordinance No. 2024-232 Page 4
SECTION 6. EFFECTIVE DATE.

This Ordinance shall take effect and be in full force and operation thirty (30) days after its final passage and adoption.

SECTION 7. CITY CLERK'S CERTIFICATION.

The City Clerk shall certify to the adoption of this Ordinance and cause the same to be posted at the duly designated posting places within the City and published once within fifteen (15) days after passage and adoption as required by law; or, in the alternative, the City Clerk may cause to be published a summary of this Ordinance and post a certified copy of the text of this Ordinance in the Office of the City Clerk five (5) days prior to the date of adoption of this Ordinance, and, within fifteen (15) days after adoption, the City Clerk shall cause to be published the aforementioned summary and shall post a certified copy of this Ordinance, together with the vote for and against the same, in the Office of the City Clerk.

SECTION 8. SUBMITTAL TO HCD.

In accordance with Government Code section 66326, the City Clerk shall submit a copy of this Ordinance to HCD within 60 days after adoption.

PASSED, APPROVED AND ADOPTED this day of , 2025.

Ray Gennawey, Mayor
ATTEST:

Marissa Asistin, City Clerk
Exhibit 1: Zoning Code Amendment (ZCA) 24-1001
Ordinance No. 2024-232 Page 5

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF ORANGE )ss

LAGUNA NIGUEL )
1, Marissa Asistin, City Clerk of the City of Laguna Niguel, California, do hereby certify that the foregoing is Ordinance No. 2024-232 which was introduced at a regular meeting of the City Council of the City of Laguna Niguel, California, held on December 17, 2024, and adopted and passed at a regular meeting of the City Council held on January 21, AYES:

NOES:

ABSTENTIONS:

ABSENT:

Marissa Asistin, City Clerk
Section 9-1-35.26. Accessory Dwelling Unit (ADU).
(a) Purpose. This section provides standards and criteria for the establishment of ADUs within residential districts consistent with California Government Code Section 66314 and shall be so construed.
(b) Permit Required. ADUs consistent with this section shall be reviewed ministerially in compliance with Government Code Section 66314, and shall require a building permit.
(C) Limitations. Improvements including, but not limited to garages, retaining walls, etc.) that are not necessary for the physical construction of an ADU may be subject to a discretionary permit and/or public hearing, if required by Title 9 of the Municipal (d) Development Standards. The development standards set forth below shall apply to all ADUs. In addition, for any development standard not explicitly identified below, the requirements of the underlying zoning district shall apply, unless superseded by State Law.
(1) Zoning. ADUs shall be allowed in all zoning districts that permit residential uses on lots that include a proposed or existing dwelling. The ADU shall be either attached to, or located within, the proposed or existing primary dwelling, including attached garages, storage areas or similar uses, or an accessory structure or detached from the proposed or existing primary dwelling and located on the same lot as the proposed or existing primary dwelling, including detached garages in accordance with Government Code Section 66314.
(2) Sale and Rental of Units. Except as required in Government Code Section 66341, an ADU shall not be sold separately from the primary dwelling unit, and shall not be rented for a period of less than thirty (30) consecutive days, short-term rentals are not permitted.
(3) Number of Units Allowed.
a) Single Family Residential Zoning Districts. In single-family residential zoning districts, an applicant shall be allowed to construct one (1) new construction detached or attached ADU per lot, and convert existing space into one (1) ADU. In addition to the two (2) ADUs allowed in this Section, an applicant may also construct one (1) Junior Accessory Dwelling Unit (JADU) so long as it complies with Section 9-1-35.27.
b) Multi-Family Zoning Districts.

1. Converted Multi-Family. One or more ADUs within portions of existing multi-family dwelling structures that are not used as livable space, including but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages, if each converted ADU complies with California Building Code Standards for dwellings. At least one converted ADU is allowed within an existing multi-family dwelling structure, up to a quantity equal to 25 percent of the existing multi-family dwelling units within the existing structure.

2. Limited Detached ADUs on a Multi-Family Lot. No more than two (2) detached ADUs are permitted on a lot with a proposed multifamily dwelling, or up to eight detached ADUs on a lot with an existing multifamily dwelling, if each detached ADU satisfies all of the following:
1) The side-and rear-yard ADU setbacks are at least four (4) feet. If the existing multifamily dwelling has a rear or side yard setback of less than four (4) feet, the City will not require any modification to the multifamily dwelling as a condition of approving the ADU.
ii) The peak height above grade does not exceed the
applicable height limit provided in subsection (5).
iii) If the lot has an existing multifamily dwelling, the quantity of detached ADUs does not exceed the number of primary
dwelling units on the lot.
(4) Setbacks.
a) Attached or detached ADUs shall comply with the front yard setback requirement for the underlying zone. Exception: If a front yard setback is the only location on the lot where an ADU may be lawfully constructed, then the ADU may encroach into a required front yard setback as necessary to enable the construction of an 800 square foot unit.
b) Attached or detached ADUs shall have a minimum four (4) foot side and rear yard setback. Exception: No setback shall be required for the conversion of an existing permitted living area, accessory structure, or a structure constructed in the same location and to the same dimensions as an existing structure that is converted to an accessory dwelling unit or to a portion of an accessory dwelling unit. 2 •
c) Setbacks from slopes. Lots that have slopes that are 2:1 or steeper and over ten feet in height, shall setback structures in compliance with Section 9-1-33.6, Setbacks from Slopes.
(5) Height.
a) Except as otherwise provided by subsections (5)(b) or (5)(c) below, a detached ADU created on a lot with an existing or proposed single family or multifamily dwelling unit may not exceed 16 feet in height. b) A detached ADU may be up to 18 feet in height if it is created on a lot with an existing or proposed single family or multifamily dwelling unit that is located within one-half mile walking distance of a major transit stop or a high quality transit corridor, as those terms are defined in Section 21155 of the Public Resources Code, and the ADU may be up to two additional feet in height (for a maximum of 20 feet) if necessary to accommodate a roof pitch on the ADU that is aligned with the roof pitch of the primary dwelling unit.
c) A detached ADU created on a lot with an existing or proposed multifamily dwelling that has more than one story above grade may not exceed 18 feet in height.
d) An ADU that is attached to the primary dwelling may not exceed 25 feet in height or the height limitation imposed by the underlying zone that applies to the primary dwelling, whichever is lower.

Notwithstanding the foregoing, ADUs subject to this subsection (5)(d) may not exceed two stories.
(6) Unit Size. The maximum size of an attached or detached ADU shall be limited to 850 square feet for units with zero to one bedrooms, and 1,000 square feet for units with two or more bedrooms. Notwithstanding the foregoing, in no event shall the square footage of an attached ADU exceed fifty percent (50%) of the habitable area of the existing primary residence or 800 square feet, whichever is less restrictive.
(7) Lot Coverage and Floor Area Ratio (FAR). All ADUs shall be subject to the applicable lot coverage and FAR requirements of the underlying zoning district, unless the application of such requirements would prevent the development of an ADU that is a minimum of 800 square feet in size, meets applicable height requirements per subsection (d) (4) of this section, and meets the four-foot side and rear yard setbacks.
(8) Parking.
3 •
a) A maximum of one (1) parking space shall be required for each accessory dwelling unit. Exceptions, no additional parking shall be required for the following:

1. ADUs converted as part of a proposed or existing space of a principal residence or within an existing accessory
structure.

2. ADUs located within one-half mile walking distance of public transit.

3. When a garage, carport, covered parking structure, or uncovered parking space is demolished in conjunction with the construction of an ADU or converted to an ADU, those off-street parking spaces are not required to be replaced.

4. When on-street parking permits are required but not offered to the occupant of the accessory dwelling unit.

5. When a permit application for an accessory dwelling unit is submitted with a permit application to create a new single- family dwelling or a new multifamily dwelling on the same lot provided that the accessory dwelling unit or the parcel satisfies any other criteria listed in this paragraph.
b) When a parking space is required for an ADU, the parking may be provided as tandem parking and/or located on an existing driveway that is at a minimum 20 feet in length.
(9) Access. All ADUs are required to have separate exterior access from the primary residence.
(10) Fire Sprinklers. Fire sprinklers shall not be required for any attached or detached ADU, unless required for the primary residence. The construction of an ADU does not trigger a requirement for fire sprinklers to be installed in the existing primary dwelling.
(11) Building Separation. An attached or detached ADU shall be subject to the building separation requirements of the Fire Safety and California Building Code requirements.
(12) Conversions on Single-Family Lots.
a) Legally Existing Structures. Legally existing detached accessory structures which do not meet the minimum setbacks requirements of 4 subsection (4), may be converted to an ADU, subject to the approval of a building permit and compliance with Fire Safety/Building Code (California Government Code 66323. Pursuant to state law, an applicant may expand the accessory structure by 150 feet beyond the physical dimensions of the existing accessory structure for the sole purpose of accommodating ingress and egress.
b) Existing Space in a Single-Family Dwelling. Legally constructed space within an existing single-family home that does not meet the minimum setbacks requirements of Subsection (4), may be converted to an ADU, subject to the approval of a building permit and compliance with this section, the Fire Safety/Building Code, and California Government Code 66323.
(13) Other Provisions.
a) All ADUs shall contain the necessary interior amenities, including an efficiency kitchen which shall include the following, subject to California Building Code requirements:
i. A cooking facility with appliances.
ii. A food preparation counter and storage cabinets that are of reasonable size in relation to the size of the accessory dwelling unit
b) All ADUs must meet the requirements of the California Building/Residential Code, as adopted and amended by Title 8 of the City of Laguna Niguel Municipal Code.
(14) Services, impact fees and utility connections.
a. ADUs shall have adequate water and sewer services. These services may be provided from the water and sewer points of connection for the Primary Dwelling and not be a separate set of services. For an ADU that is not a conversion of an existing space meeting the requirements of Government Code Section 66323, a separate utility connection directly between the accessory dwelling unit and the utility may be required. Consistent with Government Code Section 66324, the connection may be subject to a connection fee or capacity charge that shall be proportionate to the burden of the proposed accessory dwelling unit.
b. The owner of an ADU shall be subject to the payment of all sewer, water, and other applicable fees, including impact fees set forth in Government Code Section 66000 et seq., except as follows:
5 i. ADUs that are less than 750 square feet shall not be subject to impact fees.
ii. ADUs that are 750 square feet or more shall be charged impact fees that are proportional in relation to the square footage of the Primary Dwelling unit.
c. The City shall not issue a building permit for an ADU until the applicant provides a will serve letter from the local water and sewer provider.
(15) Fire safety requirements. The construction of all new ADUs shall meet minimum standards for fire safety as defined in the California Building and Fire Codes.
(16) Ownership. Notwithstanding subsection (d)(2) above, no ADU shall be created for sale or financing pursuant to any condominium plan, community apartment plan, housing cooperative or subdivision map. (17) Planned Residential Development. In the event that a planned residential development includes standards that would preclude the construction of a ministerial ADU that would otherwise be permitted under this section, the requirements of this section shall apply, and shall supersede the planned development standards as applied to ministerial ADUs within the applicable planned development district.
(18) Rental Terms. No ADU shall be rented for a term that is shorter than thirty- (30) days. This prohibition applies regardless of when the ADU was created.
(19) Nonconforming Zoning Code Conditions, Building Code Violations, and Unpermitted Structures.
a) Generally. The City will not deny an ADU application due to a nonconforming zoning condition, building code violation, or unpermitted structure on the lot that does not present a threat to the public health and safety and that is not affected by the constructior of the ADU.
b) Unpermitted ADUs constructed before 2020.

1. Permit to legalize. As required by State Law, the City may not deny a permit to legalize an existing but unpermitted ADU that was constructed before January 1, 2020, if denial is based on either of the following grounds:
i) The ADU violates applicable building standards, or
6 •
The ADU does not comply with State ADU law or this ADU
Ordinance.

2. Exceptions:
i) Notwithstanding subsection (19)(b)(1) above, the City may • deny a permit to legalize an existing but unpermitted ADU that was constructed before January 1, 2020, if the City makes a finding that correcting a violation is necessary to comply with the standards specified in California Health and Safety Code section 17920.3.
ії) Subsection (19)(b)(1) above does not apply to a building that is deemed to be substandard in accordance with
California Health and Safety Code section 17920.3
Section 9-1-35.27. Junior Accessory Dwelling Unit (JADU). (a) Purpose. This section provides standards and criteria for the establishment of JADUs within residential districts consistent with California Government Code Section 66333 and shall be so construed.
(b) Permit Required. JADUs consistent with this section shall be reviewed ministerially in compliance with Government Code Sections 66333, and shall require a building permit.
(c) Development Standards. The development standards set forth in subsection (c) shall apply to all JADUS.
(1) Zoning. JADUs shall be permitted in Single-Family Residential Zoning Districts.
(2) Sale and Occupation of Units. The JADU shall not be sold separately from the primary dwelling unit.In addition, either the JADU or the primary dwelling in which the JADU is located shall be occupied by the property owner at all times, unless the property is owned by a government agency, land trust or housing organization.
(3) Deed Restriction. A Deed Restriction prepared by the City shall be recorded on the subject property prior to issuance of building permits stating that the JADU is subject to the requirements of this Section, shall not sold separately from the primary dwelling unit, shall not be rented for less than 30 consecutive days, and that either the JADU or the primary dwelling in which the JADU is located shall be occupied by the property owner at all times. (4) Number of Units Allowed. One (1) JADU shall be allowed to be converted or constructed within the walls of an existing or proposed primary residence. 7 In addition to the one (1) JADU allowed in this Section, an applicant may also have one ADU so long as it complies with the requirements of Section 9-1-35.26.
(5) Unit Size and Construction.
a. A JADU shall not exceed 500 square feet.
b. A JADU must be contained within the walls of an existing or proposed single-family dwelling. A JADU may be located within an attached garage. A JADU may be located on the second floor of an existing or proposed single-family dwelling.
c. All JADUs shall contain the necessary interior amenities, including an efficiency kitchen, which shall include the following, subject to California Building Code requirements:
i. A cooking facility with appliances.
ii. A food preparation counter and storage cabinets that are of reasonable size in relation to the size of the junior accessory dwelling unit.
(6) Sanitation facilities. JADUs shall provide sanitation facilities. The JADU can either provide its own separate full bathroom, or it may share sanitation facilities with the primary residence. If the JADU does not include its own separate full bathroom then it shall provide an interior entrance to the primary dwelling and provide clear and unobstructed access to the designated full bathroom.
(7) Access. All JADUs shall have exterior access separate from the main entrance to the primary residence. JADUs that share sanitation facilities with the primary residence shall also have interior access.
(8) Parking. No additional parking is required for a JADU. (9) Architectural Compatibility. Any new construction which provides exterior access shall match the style, color, and materials of the primary residential unit.
(10) Fire sprinklers. Fire sprinklers shall be required for a JADU, if they are required for the primary residence.
(11) All JADUs must meet the requirements of the California Building Code, as adopted and amended by Title 8 of the City of Laguna Niguel Municipal Code.
8 (12) Services, impact fees and utility connections. JADUs are not subject to service fees, impact fees, or utility connection fees.
(13) Fire safety requirements. The construction of all new JADUs shall meet minimum standards for fire safety as defined in the California Building and Fire Code.
(14) Planned Residential Development. In the event that a planned residential development includes standards that would preclude the construction of a JADU that would otherwise be permitted under this Section, the requirements of this section shall apply, and shall supersede the planned development standards as applied to JADUs within the applicable planned development district.
(15) Rental Terms. No JADU shall be rented for a term that is shorter than thirty (30) days. This prohibition applies regardless of when the JADU was created
(16) Nonconforming Zoning Code Conditions, Building Code Violations, and Unpermitted Structures.
a) Generally. The City will not deny an JADU application due to a nonconforming zoning condition, building code violation, or unpermitted structure on the lot that does not present a threat to the public health and safety and that is not affected by the construction of the JADU.
b) Unpermitted JADUs constructed before 2020.

1. Permit to legalize. As required by State Law, the City may not deny a permit to legalize an existing but unpermitted JADU that was constructed before January 1, 2020, if denial is based on either of the following grounds:
i) The JADU violates applicable building standards, or
ii) The JADU does not comply with State ADU law or this JADU Ordinance.

2. Exceptions:
i) Notwithstanding subsection (19)(b)(1) above, the City may deny a permit to legalize an existing but unpermitted JADU that was constructed before January 1, 2020, if the City makes a finding that correcting a violation is necessary to 9 comply with the standards specified in California Health and Safety Code section 17920.3.

Subsection (19)(b)(1) above does not apply to a building that is deemed to be substandard in accordance with
California Health and Safety Code section 17920.3
Section 9-1-142. Definition of terms.

Livable space means a space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation.
10 Attachment B
Proposed Laguna Niguel Municipal Code
Amendments (marked-up version for
reference only)
Section 9-1-35.26. Accessory Dwelling Unit (ADU).
(a) Purpose. This section provides standards and criteria for the establishment of ADUs within residential districts consistent with California Government Code Section 65852.266314 and shall be so construed.
(b) Permit Required. ADUs consistent with this section shall be reviewed ministerially in compliance with Government Code Section 65852.266314, and shall require a building permit.
(c) Limitations. Improvements (including, but not limited to garages, retaining walls, to a discretionary permit and/or public hearing, if required by Title 9 of the Municipal etc.) that are not necessary for the physical construction of an ADU may be subject Code.
(d) Development Standards. The development standards set forth below shall apply to all ADUs. In addition, for any development standard not explicitly identified below, the requirements of the underlying zoning district shall apply, unless superseded by State Law.
(1) Zoning. ADUs shall be allowed in all zoning districts that permit residential uses on lots that include a proposed or existing dwelling. The ADU shall be either attached to, or located within, the proposed or existing primary dwelling, including attached garages, storage areas or similar uses, or an accessory structure or detached from the proposed or existing primary dwelling and located on the same lot as the proposed or existing primary dwelling, including detached garages in accordance with Government Code Section 66314.65852.2(a)(1). Nothing in this section shall allow for the conversion of commercial or non-residential space in a mixed use building.
(2) Sale and Rental of Units. Except as required in Government Code Section 65852.2666341, an ADU shall not be sold separately from the primary dwelling unit, and shall not be rented for a period of less than thirty (30) consecutive days, short-term rentals are not permitted. (3) Number of Units Allowed.
a) Single Family Residential Zoning Districts. In single-family residential zoning districts, an applicant shall be allowed to construct one (1) new construction detached or attached ADU per lot, or and convert existing space into one (1) ADU. In addition to the one-two (21) ADUs allowed in this Section, an applicant may also construct one (1) Junior Accessory Dwelling Unit (JADU) so long as it complies with Section 9-1-35.27.
b) Multi-Family Zoning Districts.

1. Converted Multi-Family. One or more ADUs within portions of existing multi-family dwelling structures that are not used as livable space, including but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages, if each converted ADU complies with California Building Code Standards for dwellings. At least one converted ADU is allowed within an existing multi-family dwelling structure, up to a quantity equal to existing suetune. existing mull-family diveling units within the

2. Limited Detached ADUs on a Multi-Family Lot. No more than two (2) detached ADUs are permitted on a lot with a proposed multifamily dwelling, or up to eight detached ADUs on a lot with an existing multifamily dwelling, if each detached ADU satisfies all of the following: that has an existing or proposed multi-family dwelling.
i) The side- and rear-yard ADU setbacks are at least four (4) feet. If the existing multifamily dwelling has a rear or side yard setback of less than four (4) feet, the City will not require any modification to the multifamily dwelling as a condition of approving the ADU
The peak height above grade does not exceed the
applicable height limit provided in subsection (5).
ili) If the lot has an existing multifamily dwelling, the quantity of detached ADUs does not exceed the number of primary
dwelling units on the lot.
(4) Setbacks.
a) Attached or detached ADUs shall comply with the front yard setback requirement for the underlying zone. Exception: If a front yard setback is the only location on the lot where an ADU may be lawfully constructed, then the ADU may encroach into a required front yard setback as necessary to enable the construction of an 800 square foot unit.
b) Attached or detached ADUs shall have a minimum four (4) foot side and rear yard setback. Exception: No setback shall be required for 2 the conversion of an existing permitted living area, accessory structure, or a structure constructed in the same location and to the same dimensions as an existing structure that is converted to an accessory dwelling unit or to a portion of an accessory dwelling unit. c) Setbacks from slopes. Lots that have slopes that are 2:1 or steeper and over ten feet in height, shall setback structures in compliance with Section 9-1-33.6, Setbacks from Slopes.
(5) Height.
a) Except as otherwise provided by subsections (5)(b) or (5)(c) below, a detached ADU created on a lot with an existing or proposed single family or multifamily dwelling unit may not exceed 16 feet in height. b) A detached ADU may be up to 18 feet in height if it is created on a lot with an existing or proposed single family or multifamily dwelling unit that is located within one-half mile walking distance of a major transit stop or a high quality transit corridor, as those terms are defined in Section 21155 of the Public Resources Code, and the ADU may be up to two additional feet in height (for a maximum of 20 feet) if necessary to accommodate a roof pitch on the ADU that is aligned with the roof pitch of the primary dwelling unit.
c) A detached ADU created on a lot with an existing or proposed multifamily dwelling that has more than one story above grade may not exceed 18 feet in height.
d) An ADU that is attached to the primary dwelling may not exceed 25 feet in height or the height limitation imposed by the underlying zone that applies to the primary dwelling, whichever is lower.

Notwithstanding the foregoing, ADUs subject to this subsection (5)(a) may not exceed two stories.
(6) Unit Size. The maximum size of an attached or detached ADU shall be limited to 850 square feet for units with zero to one bedrooms, and 1,000 square feet for units with two or more bedrooms. Notwithstanding the foregoing, in no event shall the square footage of an attached ADU exceed fifty percent (50%) of the habitable area of the existing primary residence or 800 square feet, whichever is less restrictive.
(7) Lot Coverage and Floor Area Ratio (FAR). All ADUs shall be subject to the applicable lot coverage and FAR requirements of the underlying zoning district, unless the application of such requirements would prevent the development of an ADU that is a minimum of 800 square feet in size, meets 3 •
applicable height requirements per subsection (d) (4) of this section, and meets the four-foot side and rear yard setbacks.
(8) Parking.
a) A maximum of one (1) parking space shall be required for each accessory dwelling unit. Exceptions, no additional parking shall be required for the following:

1. ADUs converted as part of a proposed or existing space of a principal residence or within an existing accessory
structure.

2. ADUs located within one-half mile walking distance of public transit.

3. When a garage, carport, or covered parking structure, or uncovered parking space is demolished in conjunction with the construction of an ADU at the same location, or
converted to an ADU, those off-street parking spaces are not required to be replaced.

4. When on-street parking permits are required but not offered to the occupant of the accessory dwelling unit.

5. When a permit application for an accessory dwelling unit is submitted with a permit application to create a new single- family dwelling or a new multifamily dwelling on the same lot. provided that the accessory dwelling unit or the parcel satisfies any other criteria listed in this paragraph.
b) When a parking space is required for an ADU, the parking may be provided as tandem parking and/or located on an existing driveway that is at a minimum 20 feet in length.
(9) Access. All ADUs are required to have separate exterior access from the primary residence.
(10) Fire Sprinklers. Fire sprinklers shall not be required for any attached or detached ADU, unless required for the primary residence. The construction of an ADU does not trigger a requirement for fire sprinklers to be installed in the existing primary dwelling.
4 (11) Building Separation. An attached or detached ADU shall be subject to the building separation requirements of the Fire Safety and California Building Code requirements.
(12) Conversions on Single-Family Lots.
a) Legally Existing Structures. Legally existing detached accessory structures which do not meet the minimum setbacks requirements of subsection (46), may be converted to an ADU, subject to the approval of a building permit and compliance with Fire Safety/Building Code (California Government Code 66323.65852.2(e)(1)(A)). Pursuant to state law, an applicant may expand the accessory structure by 150 feet beyond the physical dimensions of the existing accessory structure for the sole purpose of accommodating ingress and egress. b) Existing Space in a Single-Family Dwelling. Legally constructed space within an existing single-family home that does not meet the ninimum setbacks requirements of Subsection (4), may be converted to an ADU, subject to the approval of a building permit and compliance with this section, the Fire Safety/Building Code, and California Government Code 65852.2(e)(1)(A).66323.
(13) Other Provisions.
a) All ADUs shall contain the necessary interior amenities, including an efficiency kitchen which shall include the following, subject to California Building Code requirements:
i. A cooking facility with appliances.
ii. A food preparation counter and storage cabinets that are of reasonable size in relation to the size of the accessory dwelling unit.
b) All ADUs must meet the requirements of the California Building/Residential Code, as adopted and amended by Title 8 of the City of Laguna Niguel Municipal Code.
(14) Deed Restriction. Prior to the issuance of a Certificate of Occupancy for the ADU, the property owner shall record a deed restriction prepared by the City on the subject lot placing the following restrictions on the property, the property owner, and all successors in interest:
a. Except as provided in Government Code Section 65852.26, the ADU shall not be sold, transferred, or assigned separately from the Primary Dwelling, but may be rented.
5 b. The ADU shall not be used for shert-term rentals, and shall be rented for a period of thirty (30) consecutive days or longer. c. If there is a JADU on the property, either the JADU or Primary Dwelling shall be occupied by the owner of record.
d. The property owner and all successors in interest shall maintain the ADU and the property in accerdance with all applicable ADU requirements and standards.
(15)(14) Services, impact fees and utility connections. a. ADUs shall have adequate water and sewer services. These services may be provided from the water and sewer points of connection for the Primary Dwelling and not be a separate set of services. For an ADU that is not a conversion of an existing space meeting the 1 requirements of Government Code Section 65852.2(e)(1)(A),66323. a separate utility connection directly between the accessory dwelling unit and the utility may be required. Consistent with Government Code Section 65852.2(f),66324, the connection may be subject to a connection fee or capacity charge that shall be proportionate to the burden of the proposed accessory dwelling unit.
b. The owner of an ADU shall be subject to the payment of all sewer, water, and other applicable fees, including impact fees set forth in Government Code Section 66000 et seq., except as follows:
i. ADUs that are less than 750 square feet shall not be subject to impact fees.

ADUs that are 750 square feet or more shall be charged
impact fees that are proportional in relation to the square footage of the Primary Dwelling unit.
c. The City shall not issue a building permit for an ADU until the applicant provides a will serve letter from the local water and sewer provider.
(16)(15) Fire safety requirements. The construction of all new ADUs shall meet minimum standards for fire safety as defined in the California Building and Fire Codes.
(17)(16) _Ownership. Notwithstanding subsection (d)(2) above, no ADU shall be created for sale or financing pursuant to any condominium plan, community apartment plan, housing cooperative or subdivision map. 6 (18) Occupancy. For any ADU permitted before January 1, 2025, ADUs may be rented or owner occupied and there shall not be a requirement that any unit on the let be owner-occupied. For an ADU permitted after January 1, 2025, however, either the primary dwelling or the ADU shall be owner occupied; unless State law is amended to prohibit such a requirement. (19)(17) Planned Residential Development. In the event that a planned residential development includes standards that would preclude the construction of a ministerial ADU that would otherwise be permitted under this section, the requirements of this section shall apply, and shall supersede the planned development standards as applied to ministerial ADUs within the applicable planned development district. - (20)(18) Rental Terms. No ADU shall be rented for a term that is shorter than thirty- (30) days. This prohibition applies regardless of when the ADU was created.
(21) Nonconforming ADUs and Discretionary Approval. Any proposed ADU that does not conform to the objective standards set forth in subsections (1) through (20) of this section may be allowed by the City pursuant te Alternative Development Standards subject to approval of a Site Development Permit in compliance with the provisions of Section 9-1-114." (19) Nonconforming Zoning Code Conditions, Building Code Violations, and Unpermitted Structures.
a) Generally. The City will not deny an ADU application due to a nonconforming zoning condition, building code violation, or unpermitted structure on the lot that does not present a threat to the public health and safety and that is not affected by the construction of the ADU.
b) Unpermitted ADUs constructed before 2020.

1. Permit to legalize. As required by State Law, the City may not deny a permit to legalize an existing but unpermitted ADU that was constructed before January 1, 2020, if denial is based on either of the following grounds:
i) The ADU violates applicable building standards, or
il) The ADU does not comply with State ADU law or this ADU Ordinance.

2. Exceptions:
•
7 i) Notwithstanding subsection (19)(b)(1) above, the City may deny a permit to legalize an existing but unpermitted ADU that was constructed before January 1, 2020, if the City makes a finding that correcting a violation is necessary to comply with the standards specified in California Health and Safety Code section 17920.3.
ii) Subsection (19)(b)(1) above does not apply to a building that is deemed to be substandard in accordance with
California Health and Safety Code section 17920.3
Section 9-1-35.27. Junior Accessory Dwelling Unit (JADU). (a) Purpose. This section provides standards and criteria for the establishment of JADUs within residential districts consistent with California Government Code Section 65852.2 and 65852.2266333 and shall be so construed. (b) Permit Required. JADUs consistent with this section shall be reviewed ministerially in compliance with Government Code Sections 65852.2 and 65852.2266333, and shall require a building permit.
(c) Development Standards. The development standards set forth in subsection (c) shall apply to all JADUs.
(1) Zoning. JADUs shall be permitted in Single-Family Residential Zoning Districts.
(2) Sale_ Rental and Occupation of Units. The JADU shall not be sold separately from the primary dwelling unit, and shall not be rented for a period of less than thirty (30) consecutive days. In addition, either the JADU or the primary dwelling in which the JADU is located shall be occupied by the property owner at all times, unless the property is owned by a government agency, land trust or housing organization.
(3) Deed Restriction. A Deed Restriction prepared by the City shall be recorded on the subject property prior to issuance of building permits stating that the JADU is subject to the requirements of this Section, shall not sold separately rom the primary dwelling unit, shall not be rented for less than 3i consecutive days, and that either the JADU or the primary dwelling in whic! the JADU is located shall be occupied by the property owner at all times. (4) Number of Units Allowed. One (1) JADU shall be allowed to be converted or constructed within the walls of an existing or proposed primary residence.

In addition to the one (1) JADU allowed in this Section, an applicant may 8 also have one ADU so long as it complies with the requirements of Section 9-1-35.26.
(5) Unit Size and Construction.
a. A JADU shall not exceed 500 square feet.
b. A JADU must be contained within the walls of an existing or proposed single-family dwelling. A JADU may be located within an attached garage. A JADU may be located on the second floor of an existing or proposed single-family dwelling.
c. All JADUs shall contain the necessary interior amenities, including an efficiency kitchen, which shall include the following, subject to California Building Code requirements:
i. A cooking facility with appliances.
ii. A food preparation counter and storage cabinets that are of reasonable size in relation to the size of the junior accessory dwelling unit.
(6) Sanitation facilities. JADUs shall provide sanitation facilities. The JADU can either provide its own separate full bathroom, or it may share sanitation facilities with the primary residence. If the JADU does not include its own separate full bathroom then it shall provide an interior entrance to the primary dwelling and provide clear and unobstructed access to the designated full bathroom.
(7) Access. Exterior access shall be provided for all JADUs separate from the main entrance to the primary residence. For JADUs that share sanitation facilities with the primary residence, the JADU shall have interior access as wellAll JADUs shall have exterior access separate from the main entrance to the primary residence. JADUs that share sanitation facilities with the primary residence shall also have interior access.
(8) Parking. No additional parking is required for a JADU. (9) Architectural Compatibility. Any new construction which provides exterior access shall match the style, color, and materials of the primary residential unit.
(10) Fire sprinklers. Fire sprinklers shall be required for a JADU, if they are required for the primary residence.
(11) All JADUs must meet the requirements of the California Building Code, as adopted and amended by Title 8 of the City of Laguna Niguel Municipal Code.
(12) Services, impact fees and utility connections. JADUs are not subject to service fees, impact fees, or utility connection fees.
(13) Fire safety requirements. The construction of all new JADUs shall meet minimum standards for fire safety as defined in the California Building and Fire Code.
(14) Planned Residential Development. In the event that a planned residential development includes standards that would preclude the construction of a JADU that would otherwise be permitted under this Section, the requirements of this section shall apply, and shall supersede the planned development standards as applied to JADUs within the applicable planned development district.
(15) Rental Terms. No JADU shall be rented for a term that is shorter than thirty (30) days. This prohibition applies regardless of when the JADU was created.
(16) Nonconforming JADUs and Discretionary Approval. Any proposed JADU that does net conform to the objective standards set forth in subsections (1) through (15) of this section may be allowed by the City pursuant to Alternative Development Standards subject to approval of a Site Development Permit in compliance with the provisions of Section 9-1-114." (16) Nonconforming Zoning Code Conditions, Building Code Violations. and Unpermitted Structures.
a) Generally. The City will not deny an JADU application due to a nonconforming zoning condition, building code violation, or unpermitted structure on the lot that does not present a threat to the public health and safety and that is not affected by the construction of the JADU.
b) Unpermitted JADUs constructed before 2020.

1. Permit to legalize. As required by State Law, the City may not deny a permit to legalize an existing but unpermitted JADU that was constructed before January 1, 2020, if denial is based on either of the following grounds:
i) The JADU violates applicable building standards, or
The JADU does not comply with State ADU law or this
JADU Ordinance.

2. Exceptions:

Notwithstanding subsection (19)(b)(1) above, the City may deny a permit to legalize an existing but unpermitted JADU that was constructed before January 1, 2020, if the City makes a finding that correcting a violation is necessary to comply with the standards specified in California Health and Safety Code section 17920.3.

Subsection (19)(b)(1) above does not apply to a building that is deemed to be substandard in accordance with
California Health and Safety Code section 17920.3
Section 9-1-142. Definition of terms.

Livable space means a space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation.
11 Attachment C
Ordinance No. 2024-233 (ZCA 24-1002)
ORDINANCE NO. 2024-233

AN ORDINANCE OF THE CITY OF LAGUNA NIGUEL, CALIFORNIA, ADOPTING ZONING CODE AMENDMENT (ZCA) 24-1002 AMENDING VARIOUS SECTIONS OF THE GATEWAY SPECIFIC PLAN TO ADDRESS SEVERAL STATE MANDATES; AND

DETERMINING THE ACTION TO BE EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT UNDER STATE CEQA GUIDELINES SECTIONS 15060(C)(2), 15060(C)(3), AND 15061(B)(3)
The City Council of the City of Laguna Niguel does hereby ordain as follows:

SECTION 1. FINDINGS.

The City Council makes the following findings in connection with the adoption of this Ordinance.

By the authority granted to the City of Laguna Niguel ("City") by Article XI, Section 7 of the California Constitution, the City has the police power to regulate the use of land and property within the City in a manner designed to promote public convenience and general prosperity, as well as public health, welfare, and safety.

2. On December 5, 2023, the 2021-2029 (6th cycle) Laguna Niguel Housing Element ("Housing Element") was approved by the City Council.

4. CD's determination is subject to the timely and effective implementation of all programs outlined within the Housing Plan. The adopted Housing Element includes Action 3.2, which states: "The City will evaluate and amend the Gateway Specific Plan to mandate that any public benefit to achieve a density of higher than 50 du/ac shall include a provision of affordable housing."

5. The proposed Zoning Code Amendment 24-1002 (hereinafter "ZCA 24-1002") is designed to amend various sections of the Gateway Specific Plan, ensuring compliance with Housing Element Action 3.2.

On November 12, 2024 the Planning Commission held a duly noticed public hearing to consider the Ordinance, at which time the Planning Commission considered all evidence presented by City staff and other interested parties;

7. Following the public hearing, the Planning Commission adopted Resolution No. 24-09, recommending that the City Council adopt the Ordinance.

Ordinance No. 2024-233 Page 2
On December 5, 2024, a one-eighth (1/8th) page notice of the public hearing describing the project, date, time, and location of the hearing was advertised in the Orange County Register - Laguna Niguel News in accordance with Government Code Section 65091(a)(4) for projects affecting over 1,000 property owners. A notice was also posted at City Hall and was made available on the City's website.

9. On December 17, 2024, the City Council held a duly noticed public hearing on the Ordinance, at which time the City Council considered the Planning Commission's recommendation as well as all evidence presented by City staff and other interested parties.

The City Council finds that the Ordinance is consistent with the goals, objectives, and policies of the General Plan, including:

Housing Element, Goal 1, Policy 1.4, which states the City will "support innovative public, private, and non-profit efforts in the development of affordable housing, particularly for special needs groups." The proposed amendments clarify the innovative Gateway Specific Plan Density Bonus Program, limiting the benefits to affordable housing to achieve densities exceeding 50 du/acre.

11. The City Council finds that the Ordinance would not be detrimental to the City's public health, safety, or general welfare in that it will amend various sections of the Laguna Niguel Municipal Code to align with current state land use and housing laws. The proposed amendments are consistent with the General Plan, Housing Element, and other regulations. The proposed amendments would not be detrimental to the public interest, health, safety, convenience, or welfare of the City in that they will merely amend the Gateway Specific Plan to be consistent with state law and fair housing laws. Therefore, the proposed zoning code amendments will not adversely affect public health, safety, or general welfare.

SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA).

Based on the whole record before it, the City Council finds that the adoption of this Ordinance (i.e., ZCA 24-1002) is exempt from the California Environmental Quality Act ("CEQA") because it is an administrative activity that will not result in a direct or reasonably foreseeable indirect physical change to the environment and is thus not a "project" under state CEQA Guidelines 15378 (see state CEQA Guidelines, Section 15060(c)(2) and (3)).

Here, the code amendments do not constitute a project subject to CEQA because they ensure that the City's standards and permitting requirements are consistent with state law and fair housing laws, as required by CD. The code amendments merely codify these requirements in the Gateway Specific Plan. Additionally, the code amendments are exempt from CEQA under Section 15061(b)(3) of the state CEQA Guidelines, which provides that a project is exempt from CEQA where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Here, there is no possibility that the code amendments may have a significant effect on the environment Ordinance No. 2024-233 Page 3
because they merely amend the Gateway Specific Plan to be consistent with state law and fair housing laws, which are already binding on the City.

SECTION 3. ZONING CODE AMENDMENTS.

Based on the entire record before the City Council, all written and oral evidence presented to the Council, the Planning Commission's recommendation, and the findings made in the staff report and this Ordinance, the City Council of the City of Laguna Niguel hereby adopts Zoning Code Amendment ("ZCA") 24-1002 and amends Gateway Specific Plan pages 3-10, 3-11, 4-6, 4-20, 4-22, and 4-23 to read as provided in "Exhibit 1," attached hereto and incorporated herein by reference.

SECTION 4. SAVINGS CLAUSE.

SECTION 5. SEVERABILITY.

SECTION 6. EFFECTIVE DATE.

This Ordinance shall take effect and be in full force and operation thirty (30) days after its final passage and adoption.

SECTION Z. CITY CLERK'S CERTIFICATION.

Ordinance No. 2024-233 Page 4
PASSED APPROVED AND ADOPTED this _day of . 2025.

Ray Gennawey, Mayor
ATTEST:

Marissa Asistin, City Clerk
Exhibit 1: Zoning Code Amendment (ZCA) 24-1002
Ordinance No. 2024-233 Page 5

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF ORANGE )Ss

LAGUNA NIGUEL )
1, Marissa Asistin, City Clerk of the City of Laguna Niguel, California, do hereby certify at the foregoing is Ordinance No. 2024-232 which was introduced at a regular meetin † the City Council of the City of Laguna Niguel, California, held on December 17. 202 and adopted and passed at a regular meeting of the City Council held on January 21, 2025, by the following vote, to wit:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

Marissa Asistin, City Clerk
CHAPTER 3 Policies and Development Plans
meeting rooms and day-care facilities may be integrated with these uses.

In recognition of the objective of creating a village that is urban in character, this area is designated for the highest densities permitted in the Gateway area. Density incentives are provided for the assembly of parcels for larger, cohesive projects and the provision of affordable housing (5% very low income or 10% low income). Minimum densities are also prescribed to assure that development reflects the intended high-density urban character for the Gateway area.

Buildings are envisioned to be constructed to the street-facing property lines to establish a common building wall with ground floor elevations designed to foster pedestrian activity. Restaurants and other outdoor retail uses may be located along the sidewalk frontages. Buildings will be oriented to Oso Creek and the pedestrian greenway, with the sidewalks and public spaces creating an outdoor living environment for residents, workers, customers, and transit-riders. Parking will be located to the rear of buildings or in structures not visible from the street.

South Cabot. This District includes office and multi-family residential development and is located on Cabot Road, south of the SR-73. The District is isolated from the other Districts by Cabot Road and the SR-73. The area is currently developed with a six-story professional office building that provides a variety of employment opportunities to support the Gateway area and City.

The remaining property can accommodate high-density multi- family residential uses. These properties begin to support the critical mass of development needed to encourage future development in the other Districts.

Crown Valley Retail Commercial-Residential. Properties on the south side of the Crown Valley Parkway, between Cabot and Forbes Roads are intended for region-serving commercial and multi-family residential. Additional retail and/or mixed-use residential/ retail/office development may be in-filled on the Costco parking lots, provided that code-required parking spaces are satisfied. Additional retail and/or mixed-use
Retail and residential infill in
commercial center (Emeryville, CA). residential/retail/office may be located adjacent to Oso Creek.

Permitted development intensities are typical of those for sites developed for regional-serving large format retail
establishments, as Costco, with modest intensification for one- or two-story smaller-scale retail buildings. Densities for multi-family 3-10 LAGUNA NIGUEL GATEWAY SPECIFIC PLAN
CHAPTER 3 Policies and Development Plans
residential uses are somewhat less than the maximums
prescribed for the -Villagel and -Transit-Oriented Corridor|| in consideration of the configuration and limited access to this site.

New retail development would be oriented to sidewalks and public spaces and be designed to enhance pedestrian activity, in contrast with the existing —big box|| warehouse type structures.

Their ground floor elevations should be visually transparent and restaurants and other appropriate uses located on sidewalks along their frontage. A pedestrian walkway should be developed connecting the sites and bridge Oso Creek, providing access to the Transit-Oriented Mixed-Use Corridor.

H Transit-Oriented Mixed-Use Corridor. The area extending along Forbes Road south of Crown Valley Parkway is physically suitable for development as a single-loaded corridor with high density development located on its east side. Oso Creek precludes development to the west. Like the "Village," the Plan allocates the highest density of development in the Gateway area to take advantage of its proximity to the Metrolink Station. The development of high-density, multi-family residential, offices, High-density mixed residential and office uses along transit corridors
retail commercial, mixed-use buildings with housing above (Pearl District). ground floor retail and office uses, and hotels is permitted in the corridor. Its northerly parcel at Crown Valley Parkway would be limited to office uses, with parcels extending to and beyond the Metrolink station developed for any of the permitted uses.

Properties abutting the transit station may be developed exclusively for retail uses serving local residents and transit users, which may also be located in the ground floor of buildings with housing on upper floors. The existing Metrolink parking lot and parcels south of the station could be developed with a parking structure in combination with other mixed-use structures.

Permitted development densities are equivalent to those specified for the "Village." Again, incentives for increased densities are available when a project provides-affordable housing (5% very High-density residential, office, and low income or 10% low income). Minimum densities for office, retail uses adjoining transit stations residential, and mixed-use buildings are established to (Pasadena Del Mar Station, Portlanc maximize use in proximity to the Metrolink transit station. Pearl District, and Emeryville Amtrak Station).

LAGUNA NIGUEL GATEWAY SPECIFIC PLAN
CHAPTER 4 Allowable Uses, Development Standards, and Guidelines hotel uses, or mix of these with retail commercial integrated into one or more building vertically or distributed horizontally on a single site.

The mix of uses will be unified by their urban form and relationship to street frontages and adjoining parcels. While more than one use may be located on any block within the zone, all buildings shall be placed on their lot, oriented to the street frontage, and designed to convey an urban character.

The development of office uses in the MU Zone is intended to provide employment opportunities for residents of Laguna Niguel and adjoining communities. Illustrative uses include medical offices, banking facilities, insurance sales, property management and leasing agencies, real estate sales, and professional offices for tenants such as architects, landscape architects, and software developers. Office uses must be developed in multi-story structures with FARs ranging between 0.5 and 1.0 with parking primarily Office building with retail shops located in structures, contributing to the intended urban character of located on the ground floor. the Specific Plan area. Densities for office development may be increased to a maximum FAR of 2.0 in exchange for the provision of extraordinary benefits for the greater Gateway community.

Illustrative of these are the inclusion of community-serving meeting rooms and facilities, public parking exceeding project-related code requirements, and/or funding of non-project infrastructure and open space improvements.

The development of multi-family housing units in the MU Zone is intended to enable residents to live in proximity to their jobs, commercial services, and transit, thereby reducing automobile trips, commuting distances, and greenhouse gas emissions while improving their quality of life. These shall be located and designed to convey an —urban|| scale and character, typical of those found in city centers and at transit nodes. They shall be constructed at densities between 40 and 50 dwelling units per acre, and up to 120 dwelling units per acre in exchange for the provision of affordable housing (5% very low income or 10% low
income). Buildings may be constructed as mid-rise Class V structures. The units may be located on podiums above
parking decks or wrap around parking structures. It is
preferable that units be located along or no more than half a floor above the ground elevation. On-site resident-oriented recreational amenities and community facilities, such as meeting rooms, pools, spas, patios, may also be accommodated as ancillary uses in this zone.
4-6 LAGUNA NIGUEL GATEWAY SPECIFIC PLAN
CHAPTER 4 Allowable Uses, Development Standards, and Guidelines shall be reviewed with the Planning Commission and approved by the City Council as an amendment to the Specific Plan by the City Council.

Specific projects may exceed the baseline densities, up Table 4.4's maximum of 120 dwelling units per acre if the project provides affordable housing (5% very low income or 10% low income). In accordance with Government Code
section 65915(n), the Gateway Specific Plan Density Bonus Maximum of up to 120 dwelling units per acre for the
provision of 5% very low income or 10% low income housing is a local regulation that grants a density bonus greater than what is required by state law. Accordingly, applicants
seeking to exceed the applicable baseline density limit in exchange for providing very low income or low income units must choose whether to receive a density bonus under the Gateway Specific Plan or Government Code section 65915, but not both.

4.4 DEVELOPMENT STANDARDS

APPLICABILITY
All areas within the Specific Plan boundaries are subject to the City of Laguna Municipal Code, including
(Planning and Zoning), Division 1 (Zoning Code). In addition, applicability of the standards in this section is specified by both planning district (Figure 4-2) and land use
designation. Table 4-4 (Development Standards Matrix
illustrates of development standard
summary
requirements throughout the Specific Plan area. Sections

4.4.1 through 4.4.7 consist of additional standards that apply to specific conditions and are referenced in Table 4-4.

LAGUNA NIGUEL GATEWAY SPECIFIC PLAN
4-20
CHAPTER 4 Allowable Uses, Development Standards, and Guidelines TABLE 4-4 Development Standards
Planning District → C, D, F E, G, H 1, J, K
Land Use Designation → BP BP MU MU RC CS
Development Standards
Minimum 40 40
Residential Density Units per Acre Maximum 50 50
Gateway Specific Plan Density Bonus Maximum d 120 120
Building Height Feet Maximum 60 80% 120 120
From Street Right-of-Way 150 10 100
From Interior Property Line
Perimeter Setbacks and Build-to Nonresidential Abutting Residential or Mixed Use 60 Per Section 4.4.1 60 Setbacks Lines
From Open Space District 10 10 10
From Interior Property Lines within Same Project
Front Per Section 4.4.2
Elevation Height and Frontage
Required # of Spaces Per Municipal Code Section 9-1-60 through 9-1-66 Per Municipal Code
Parking Parking, Drop-off Zones, Vehicular Per Municipal Code Section Section 9-1-60 through Circulation and Access Standards Per Section 4.4.3
9-1-60 through 9-1-66 9-1-66
and Regulations
Minimum Interior Landscape (% of lot area 100 100
On-Site Landscaping and On-Site Open Publicly Accessible On-Site Open Space Open Space Space (% of lot area) (Per Section 4.4.4)
Open Space Street Frontage (ft.) 20 + (per Section 4.4.4) Courtyard Podium
Types Urban Block
Allowed per Liner Block
Land Use
Building Wrapped Block
Per Section 4.4.5
Streetscape Per Section 4.4.6
Applicability by District
Standards

LAGUNA NIGUEL GATEWAY SPECIFIC PLAN
4-22
CHAPTER 4 Allowable Uses, Development Standards, and Guidelines TABLE 4-4 Development Standards
Planning District → C, D, F E, G, H 1, J, K
Development Standards Land Use Designation → CS
Signage To Be Organized by Land Use Per Section 4.4.7
a. Fornics District on Camino Capistrano, south of Pasco De Colinas, building heights up to So'are permitted subject to a Use Permit and site Dholevenehremit b. All minimum setbacks shall be increased one foot for each additional 5 ft (or portion thereof) that the building exceeds 35 ft in height; provided however, that the maximum setback required need not exceed 25 ft
c. Represents the minimum interior project landscaping as a percentage of the net usable area of the project site. At least half of the required landscaping shall be located in areas devoted to parking. Required frontage and boundary landscaping, as well as paved plazas, courtyards, and other outdoor pedestrian gathering areas, may count toward this interior landscaping guideline.

Retail centers of 3 acres or more within C/Ll districts must provide minimum interior project landscaping of 15% d. In accordance with Government Code section 65915(n), the Gateway Specific Plan Density Bonus Maximum of up to 120 dwelling units per acre for the provision of 5% very low income or 10% low income housing is a local regulation that grants a density bonus greater than what is required by state law. Accordingly, applicants seeking to exceed the applicable baseline dess, but in exchange for providing very low income or low income units must choose whether to receive a density bonus under the Gateway Specific Plan or Government Code section 4-23

LAGUNA NIGUEL GATEWAY SPECIFIC PLAN
Attachment D
Proposed Gateway Specific Plan
Amendments (marked-up version for
reference only)
CHAPTER 3 Policies and Development Plans
meeting rooms and day-care facilities may be integrated with these uses.

In recognition of the objective of creating a village that is urban in character, this area is designated for the highest densities ermitted in the Gateway area. Density incentives are provide or the assembly of parcels for larger, cohesive projects and th provision of contribution of "community benefits" such as affordable housing (5% very low income or 10% low income)., incorporation of community service facilities, and funding of non- project related open space amenities. Minimum densities are also prescribed to assure that development reflects the intended high-density urban character for the Gateway area.

F South Cabot. This District includes office and multi-family residential development and is located on Cabot Road, south of the SR-73. The District is isolated from the other Districts by Cabot Road and the SR-73. The area is currently developed with a six-story professional office building that provides a variety of employment opportunities to support the Gateway area and City.

Crown Valley Retail Commercial-Residential. Properties on the south side of the Crown Valley Parkway, between Cabot and Forbes Roads are intended for region-serving commercial and multi-family residential. Additional retail and/or mixed-use residential/ retail/office development may be in-filled on the Costco parking lots, provided that code-required parking spaces satisfied. Additional retail and/or mixed-use
Retail and residential infill in
commercial center (Emeryville, CA). residential/retail/office may be located adjacent to Oso Creek.

Permitted development intensities are typical of those for sites developed for regional-serving large format retail
establishments, as Costco, with modest intensification for one- or two-story smaller-scale retail buildings. Densities for multi-family 3-10 LAGUNA NIGUEL GATEWAY SPECIFIC PLAN
CHAPTER 3 Policies and Development Plans
residential uses are somewhat less than the maximums
prescribed for the —Village|| and -Transit-Oriented Corridor|| in consideration of the configuration and limited access to this site.

New retail development would be oriented to sidewalks and public spaces and be designed to enhance pedestrian activity, in contrast with the existing -big box|| warehouse type structures.

H Transit-Oriented Mixed-Use Corridor. The area extending along Forbes Road south of Crown Valley Parkway is physically suitable for development as a single-loaded corridor with high density development located on its east side. Oso Creek precludes development to the west. Like the "Village," the Plan allocates the highest density of development in the Gateway area to take advantage of its proximity to the Metrolink Station. The development of high-density, multi-family residential, offices, High-density mixed residential and retail commercial, mixed-use buildings with housing above office uses along transit corridors ground floor retail and office uses, and hotels is permitted in the (Pearl District). corridor. Its northerly parcel at Crown Valley Parkway would be limited to office uses, with parcels extending to and beyond the Metrolink station developed for any of the permitted uses.

Permitted development densities are equivalent to those specified for the "Village." Again, incentives for increased densities are available when a project provides _provided for parcel assembly, development of housing, and contribution of "community High-density residential, office, and retail uses adjoining transit stations
benefits." affordable housing (5% very low income or 10% low (Pasadena Del Mar Station, Portland income). Minimum densities for office, residential, and mixed- Pearl District, and Emeryville Amtrak use buildings are established to maximize use in proximity to the Station).

Metrolink transit station.

Buildings are envisioned to be constructed to the street-facing property lines to establish a common building wall with ground floor elevations designed to foster pedestrian activity, comparable to the "Village." Restaurants and other outdoor retail uses may be located along the sidewalk frontages. Buildings will be oriented to Oso Creek and the pedestrian greenway, with the sidewalks and public spaces creating an outdoor living
LAGUNA NIGUEL GATEWAY SPECIFIC PLAN 3-11
CHAPTER 4 Allowable Uses, Development Standards, and Guidelines hotel uses, or mix of these with retail commercial integrated into one or more building vertically or distributed horizontally on a single site.

The development of office uses in the MU Zone is intended to provide employment opportunities for residents of Laguna Niguel and adjoining communities. Illustrative uses include medical offices, banking facilities, insurance sales, property management and leasing agencies, real estate sales, and professional offices for tenants such as architects, landscape architects, and software developers. Office uses must be developed in multi-story structures with FARs ranging between 0.5 and 1.0 with parking primarily Office building with retail shops
located on the ground floor. located in structures, contributing to the intended urban character of the Specific Plan area. Densities for office development may be increased to a maximum FAR of 2.0 in exchange for the provision of extraordinary benefits for the greater Gateway community.

Buildings may be constructed as mid-rise Class V structures. The units may be located on podiums above parking decks or wrap around parking structures. It is preferable that units be located along or no more than half a floor above the ground elevation. On- site resident-oriented recreational amenities and community facilities, such as meeting rooms, pools, spas, patios, may also be accommodated as ancillary uses in this zone.
4-6 LAGUNA NIGUEL GATEWAY SPECIFIC PLAN
CHAPTER 4 Allowable Uses, Development Standards, and Guidelines shall be reviewed with the Planning Commission and approved by the City Council as an amendment to the Specific Plan by the City Council.

4.3.5 Minimum and Maximum Densities
Densities that may be permitted for development within each Planning District and zone established by the Regulating Plan are specified in Section 4.4, Table 4-4 (Development Standards). All projects shall be limited to the baseline densities, and where indicated, conform to the minimum density requirement. Specific projects may be permitted to exceed the baseline densities, up to the stated maximum density for projects that make an extraordinary contribution in meeting the land use and urban form objectives for the Specific Plan. Representative "benefits" that may be considered for incentive bonuses include up to Table 4.4's maximum of 120 dwelling units per acre, if the project provides affordable housing (5% very low income or 10% low income)., meeting rooms and recreational facilities accessible to the general public, architectural design and site development exceeding the City's standards for environmental sustainability, and funding of streetscape and public realm improvements and amenities unrelated to these required for the project. The amount of increased density shall be determined by the decision making bedy as part of the discretionary application process. In accordance with Government Code section 65915(n), the Gateway Specific Plan Density Bonus Maximum of up to 120 dwelling units per acre for the provision of 5% very low income or 10% low income housing is a local regulation that grants a density bonus greater than what is required by state law. Accordingly, applicants seeking to exceed the applicable baseline density limit in exchange for providing very low income or low income units must choose whether to receive a density bonus under the Gateway Specific Plan or Government Code section 65915, but not both.

4.4 DEVELOPMENT STANDARDS

APPLICABILITY
All areas within the Specific Plan boundaries are subject to the City of Laguna Niguel Municipal Code, including Title 9 (Planning and Zoning), Division 1 (Zoning Code). In addition, applicability of the standards in this section is specified by both planning district (Figure 4-2) and land use designation. Table 4-4 (Development Standards Matrix) illustrates a summary of development standard equirements throughout the Specific Plan area. Sections 4.4.. hrough 4.4.7 consist of additional standards that apply to specifi conditions and are referenced in Table 4-4.
4-20 LAGUNA NIGUEL GATEWAY SPECIFIC PLAN
CHAPTER 4 Allowable Uses, Development Standards, and Guidelines TABLE 4-4 Development Standards
Planning District → C, D, F E, G, H 1, J, K
Development Standards Land Use Designation → BP BP MU MU RC CS Minimum 40 40
Residential Density Units per Acre Maximum 50 50
Gateway Specific Plan Density Bonus Maximum d 120 120
Building Height Feet Maximum 60 80% 120 120
From Street Right-of-Way 150 10 106
From Interior Property Line
Setbacks Perimeter Setbacks and Build-to Nonresidential Abutting Residential or Mixed Use 60 Per Section 4.4.1 60 Lines 10
From Open Space District 10 10
From Interior Property Lines within Same Project
Front Height and Frontage Per Section 4.4.2
Elevation
Required # of Spaces Per Municipal Code Section 9-1-60 through 9-1-66 Parking, Drop-off Zones, Vehicular Per Municipal Code
Parking Per Municipal Code Section Per Section 4.4.3 Section 9-1-60 through Circulation and Access Standards 9-1-60 through 9-1-66
and Regulations 9-1-66
Minimum Interior Landscape (% of lot area 100 100
On-Site Landscaping and On-Site Open Publicly Accessible On-Site Open Space Open Space Space (% of lot area) (Per Section 4.4.4)
Open Space Street Frontage (ft.) 20 + (per Section 4.4.4) Courtyard Podium
Types Urban Block
Allowed per Liner Block
Land Use
Building Wrapped Block
Per Section 4.4.5
Streetscape Applicability by District Per Section 4.4.6 Standards
4-22 LAGUNA NIGUEL GATEWAY SPECIFIC PLAN
CHAPTER 4 Allowable Uses, Development Standards, and Guidelines TABLE 4-4 Development Standards
Planning District → C, D, F E, G, H 1, J, K
Development Standards Land Use Designation → BP MU MU RC CS Signage To Be Organized by Land Use Per Section 4.4.7
a. For the CS District on Camino Capistrano, south of Paseo De Colinas, building heights up to 80' are permitted subject to a Use Permit and Site Development Permit b. All minimum setbacks shall be increased one foot for each additional 5 ft (or portion thereof that the building exceeds 35ft in height; provided however, that the maximum setback required need not exceed 25 ft
c. Represents the minimum interior project landscaping as a percentage of the net usable area of the project site. At least half of the required landscaping shall be located in areas devoted to parking. Required frontage and boundary landscaping, as well as paved plazas, courtyards, and other outdoor pedestrian gathering areas, may count toward this interior landscaping guideline.

Retail centers of 3 acres or more within C/LI districts must provide minimum interior project landscaping of 15% d. In accordance with Government Code section 65915(n), the Gateway Specific Plan Density Bonus Maximum of up to 120 dwelling units per acre for the provision of 5% very low income or 10% low Income housing is a local regulation that grants a density bonus greater than what is required by state law. Accordingly, applicants seeking to exceed the applicable baseline. density limit in exchange for providing very low income or low income units must choose whether to receive a density bonus under the Gateway Specific Plan or Government Code section. 65915, but not both
LAGUNA NIGUEL GATEWAY SPECIFIC PLAN 4-23
Attachment E
Planning Commission Staff Report, Resolution
No. 24-08, Resolution No. 24-09, and Draft
Meeting Minutes of November 12, 2024

CITY OF LAGUNA NIGUEL

PLANNING COMMISSION STAFF REPORT
198
To: Planning Commission
FROM: Community Development Department
DATE: November 12, 2024
SUBJECT: Zoning Code Amendment ZCA 24-1001 and Zoning Code Amendment ZCA 24-1002 (Code Amendments to Address State Mandates) - PUBLIC HEARING - City-initiated ordinances to amend various sections of the Laguna Niguel Municipal Code and Gateway Specific Plan to address several state land-use mandates.

RECOMMENDATION
It is recommended that the Planning Commission open the public hearing, take public testimony, close public testimony, and then:

1. Find that adoption of Zoning Code Amendment ZCA 24-1001 and Zoning Code Amendment ZCA 24-1002 are exempt from the California Environmental Quality Act ("CEQA") because they are both an administrative activity that will not result in a direct or reasonably foreseeable indirect physical change to the environment and thus is not a "project" under State CEQA Guidelines Section 15378 (see State CEQA Guidelines, Section 15060(c)(2) and (3)). Alternatively, even if adoption of ZCA 24-1001 and ZCA 24-1002 did qualify as a project under CEOA, find that it is exempt from CEQA pursuant to Section 15061(b)(3), which provides that a project is exempt from CEQA where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. And find that, moreover, Zoning Code Amendment ZCA 24-1001 is statutorily exempt from CEQA under Public Resources Code section

2. Adopt Resolution No. 24-08 (Attachment A) recommending that the City Council approve Zoning Code Amendment ZCA 24-1001 amending various sections of the Laguna Niguel Municipal Code to address several state land-use mandates; and determining the action to be exempt from the California Environmental Quality Act under State CEQA Guidelines Sections 15060(c)(2), 15060(c)(3), 15061(b)(3), and Public Resources Code section 21080.17.

3. Adopt Resolution No. 24-09 (Attachment C) recommending that the City Council approve Zoning Code Amendment ZCA 24-1002 amending various sections of the Gateway Specific Plan to address several state land-use mandates; and determining the action to be exempt from the California Environmental Quality Act under State CEQA Guidelines Sections 15060(c)(2), 15060(c)(3), and 15061(b)(3).

ZCA 24-1001 & ZCA 24-1002 (Code Amendments to Address State Mandates) Page 2 November 12, 2024

PUBLIC NOTICE
In accordance with Government Code Section 65091(a)(4), for projects affecting over 1,000 property owners, a one-eighth (1/g"h) page notice of the public hearing describing the project, date, time, and location of the hearing was advertised in the Orange County Register - Laguna Niguel News at least 10 days prior to the hearing date. A notice was also posted at City Hall and was made available on the City's website.

As of the writing of this staff report, no public comments have been received in response to this public notice.

BACKGROUND
On December 5, 2023, the Laguna Niguel City Council adopted the 2021-2029 Housing Element. On February 22, 2024, the California Department of Housing and Community Development ("HCD") found the adopted Housing Element, including all technical modifications, to be in substantial compliance with State Housing Element law (Government Code Section 65580 et seg). HCD's determination is subject to the timely and effective implementation of all programs outlined in the Housing Plan of the Housing Element, including the City updating its applicable zoning provisions to ensure that development standards and permitting requirements align with current state mandates. Consistent with this commitment, Zoning Code Amendment ZCA 24-1001 proposes to update zoning regulations pertaining to accessory dwelling units ("ADUs") and junior accessory dwelling units ("JADUs") in the Laguna Niguel Municipal Code ("LNMC"), and Zoning Code Amendment ZCA 24-1002 proposes to update zoning regulations in the Gateway Specific Plan in response to Housing Element Action 3.2.

ANALYSIS
Zoning Code Amendment ZCA 24-1001 and Zoning Code Amendment ZCA 24-1002, developed in collaboration with the City Attorneys Office, combine multiple Code amendments to fulfill commitments outlined in state law and the City's adopted Housing Element. Below is an overview of the proposed text amendments organized into two topic areas.

Zoning Code Amendment ZCA 24-1001 - Municipal Code Text Amendments (ADUs and JADUs) On August 22, 2024, the City received written notification from HCD (Attachment E) stating that they had determined that the City's ADU ordinance, including provisions for JADUs, adopted June 20, 2023 (Ordinance 2023-223), did not fully comply with state ADU Law. Additionally, in September 2024, Governor Newsom signed three new ADU bills (AB 2533, SB 1211, and SB 1077) that will take effect on January 1, 2025 (Attachment F).

Zoning Code Amendment ZCA 24-1001 (Attachment A) proposes text changes to the LNMC ADU and JADU provisions to address HCD's comments and the three new ADU bills. For additional details, please refer to Attachment B, which identifies the proposed LNMC deletions in red strikethrough text and new additions in underlined red text.

ZCA 24-1001 & ZCA 24-1002 (Code Amendments to Address State Mandates) Page 3 November 12, 2024
Zoning Code Amendment ZCA 24-1002 - Gateway Specific Plan Text Amendments (Density) Action 3.2 of the adopted Housing Element states: "The City will evaluate and amend the Gateway Specific Plan to mandate that any public benefit to achieve a density of higher than 50 du/ac shall include a provision of affordable housing. " The City has committed to amending the Gateway Specific Plan by June 30, 2025.

Zoning Code Amendment ZCA 24-1002 (Attachment C) proposes text changes to the Gateway Specific Plan density and public benefit provisions in response to Housing Element Action 3.2. For additional details, please refer to Attachment D, which identifies the proposed Gateway Specific Plan deletions in red strikethrough text and additions in underlined red text.

GENERAL PLAN CONSISTENCY
Zoning Code Amendment ZCA 24-1001 is consistent with the Laguna Niguel General Plan as a matter of law under Government Code section 66314(c). Moreover, it is consistent with the Laguna Niguel General Plan, Land Use Element, Policy 1.1, "encourage the development of land uses that contribute to the goal of a well- balanced community," in that the proposed amendments are composed of updates to zoning provisions that would benefit from additional clarity or refined regulations, and revisions to be consistent with current state Law. State law requires that the City deem ADUs to be a "residential use that is consistent with the existing general plan and zoning designation" (Government Code Section 65852.2(a)(1)(C)).

Zoning Code Amendment ZCA 24-1002 is consistent with the Laguna Niguel General Plan, Housing Element, Goal 1, Policy 1.4, "support innovative public, private, and non-profit efforts in the development of affordable housing, particularly for special needs groups." The proposed amendments redefine the innovative Gateway Specific Plan Density Bonus Program, to require affordable housing to achieve densities exceeding 50 du/acre.

CEQA COMPLIANCE
These proposed actions are not subject to the provisions of CEQA because they are administrative activities that will not result in a direct or reasonably foreseeable indirect physical change to the environment and are thus not a "project" under state CEQA Guidelines 15378 (see state CEQA Guidelines, Section 15060(c)(2) and (3)). Here, the Code amendments do not constitute a project subject to CEQA because they ensure that the City's standards and permitting requirements are consistent with state law and fair housing laws, as HCD requires. The Code amendments merely codify these requirements in the LNMC and the Gateway Specific Plan. Additionally, the Code amendments are exempt from CEQA under Section 15061(b)(3) of the state CEOA Guidelines, which provides that a project is exempt from CEQA where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

Here, there is no possibility that the Code amendments may have a significant effect on the environment because they merely amend the LNMC and Gateway Specific Plan to be consistent with state law and fair housing laws, which are already binding on the City. Moreover, Zoning Code Amendment ZCA 24-1001 is statutorily exempt from CEQA under Public Resources Code section 21080.17 because under section 21080.17, CEQA does not apply to the adoption of an ordinance by a city or county implementing the provisions of Article 2 of Chapter 13 of Division 1 of Title 7 of the California Government Code, which is California's ADU law and which also regulates JADUs, as defined by section 66313. This ordinance implements state ADU law, so adoption of the proposed ordinance is statutorily exempt.

ZCA 24-1001 & ZCA 24-1002 (Code Amendments to Address State Mandates) Page 4 November 12, 2024
Prepared by: Reviewed by:

Erica Roess
Erica Roess John Morgan
Senior Planner Deputy Community Development Director
Reviewed by: Submitted by:

Late KnitC rela len.

Scott Smith Jonathan Orduna
City Attorney Community Development Director
Attachments:

A. Planning Commission Resolution No. 24-08 (Zoning Code Amendment ZCA 24-1001) Exhibit 1 - Draft Laguna Niguel Municipal Code Text Amendments B. Marked-up version of Draft Laguna Niguel Municipal Code Text Amendments (Zoning Code Amendment ZCA 24-1001)
Planning Commission Resolution No. 24-09 (Zoning Code Amendment ZCA 24-1002) Exhibit 1 - Draft Gateway Specific Plan Text Amendments D. Marked-up version of Draft Gateway Specific Plan Text Amendments (Zoning Code Amendment ZCA 24-1002)
August 22, 2024 HCD ADU Ordinance Findings Letter
October 1, 2024 BBK Legal Alert, New ADU Legislation
RESOLUTION NO. 24-08

RESOLUTION OF THE PLANNING COMMISSION OF

THE CITY OF LAGUNA NIGUEL, CALIFORNIA, RECOMMENDING
THAT THE CITY COUNCIL APPROVE ZONING CODE AMENDMENT (ZCA) 24-1001

AMENDMENTS TO REGULATIONS PERTAINING TO ACCESSORY DWELLING

UNITS AND JUNIOR ACCESSORY DWELLING UNITS TO CONFORM WITH REVISIONS TO STATE LAW; AND DETERMINING THE ACTION TO BE EXEMPT

FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT UNDER STATE CEQA GUIDELINES SECTIONS 15060(C)(2), 15060(C)(3), 15061(B)(3), AND PUBLIC RESOURCES CODE SECTION 21080.17.

WHEREAS,

1. At the October 2, 2018 City Council meeting, the City Council initiated a Zoning Code Amendment to update and clarify various requirements of the Laguna Niguel Zoning Code (LNZC), Title 9 of the Laguna Niguel Municipal Code (LNMC). This action was intended to ensure City requirements are accurate, relevant, and compliant with state law. Given the considerable scope of the potential changes, this was envisioned as a multi-phase effort over several years.

On August 3, 2021, the City Council adopted Zoning Code Amendment (ZCA) 21- 02 rescinding provisions relating to second dwelling units in the LNZC, replacing them with development standards for Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs) consistent with state law.

On August 10, 2021, following the adoption of ZCA 21-02, in accordance with state law, the City submitted the newly adopted ordinance to the California Department of Housing and Community Development (HCD) for compliance review with current legislation.

4. On November 4, 2022, the City received a comment letter from HCD stating the adopted ordinance addresses many statutory requirements but did not fully comply with state law, in their opinion, and identified necessary modifications.

On June 20, 2023, the City Council adopted ZCA 23-01 amending the development standards for ADUs and JADUs consistent with state law.

On June 30, 2023, following the adoption of ZCA 23-01, the City submitted the newly adopted ordinance to HCD for compliance review with current legislation.

7. On August 22, 2024, the City received a comment letter from HCD stating the adopted ordinance addresses many statutory requirements but did not fully comply with state law, in their opinion, and identified necessary modifications.

Resolution No. 24-08 2
ZCA 24-1001 (Code Amendments to Address State Mandates)

8. ZCA 24-1001 will update LNZC provisions for ADUs and JADUs to address both the August 22, 2024, HCD letter, and recent changes in state law.

In accordance with Government Code Section 65091(a)(4) for projects affecting over 1,000 property owners, a one-eighth (1/8) page notice of the public hearing describing the project, date, time and location of the hearing was advertised in the Orange County Register - Laguna Niguel News at least 10 days prior to the hearing date. A notice was also posted at City Hall and was made available on the City's website.

10. On November 12, 2024 the Planning Commission held a duly noticed public hearing on ZCA 24-1001, at which time the Planning Commission considered all evidence presented by City staff and other interested parties.

NOW THEREFORE, THE PLANNING COMMISSION OF THE CITY OF LAGUNA NIGUEL, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. Incorporation of Recitals. The Planning Commission of the City of Laguna Niguel, California, hereby finds that the foregoing recitals are true and correct and are incorporated herein as substantive findings of the Commission.

SECTION 2. CEQA. Based on the whole record before it, the Planning Commission finds that ZCA 24-1001 is statutorily exempt from the California Environmental Quality Act (CEQA) and the City's CEQA Guidelines under Public Resources Code section 21080.17 and CEQA Guidelines Section 15282(h), which provide that the adoption of an ordinance regarding ADUs by a city to implement Government Code Section 65852.2 is statutorily exempt from CEQA. The Planning Commission is recommending that the City Council adopt an ordinance that implements Government Code Section 65852.2 and therefore is statutorily exempt. In addition, Pursuant to Section 15061(b)(3) of the CEQA Guidelines, ZCA 24-1001 is exempt from CEQA. The proposed amendment to the LNZC does not have the potential to significantly affect the environment. The proposed amendment does not significantly increase the potential (in manner or degree) for future development, beyond what is currently permitted by the LNZC. Moreover, Zoning Code Amendment ZCA 24-1001 is statutorily exempt from CEQA under Public Resources Code section 21080.17 because under section 21080.17, CEQA does not apply to the adoption of an ordinance by a city or county implementing the provisions of Article 2 of Chapter 13 of Division 1 of Title 7 of the California Government Code, which is California's ADU law and which also regulates JADUs, as defined by section 66313. And this ordinance implements state ADU law, so adoption of the proposed ordinance is statutorily exempt. Therefore, the project would not result in a direct or reasonably foreseeable indirect physical change in the environment.

SECTION 3. Additional Findings. The Planning Commission finds, and recommends that the City Council find, that ZCA 24-1001 meets the findings required for City Council find, that CA zoning code amendments in accordance with LNMC Section 9-1-117.4(d). The proposed Resolution No. 24-08 3
ZCA 24-1001 (Code Amendments to Address State Mandates) amendments are consistent with and implement the goals and policies of all elements of the Laguna Niguel General Plan and exercise the City's land use powers to protect the health, safety, and welfare of the public. Furthermore, the proposed amendments are consistent with the following Laguna Niguel General Plan Policy:
• Land Use Element, Policy 1.1, "encourage the development of land uses that contribute to the goal of a well-balanced community," in that the proposed amendments are composed of updates to zoning provisions that would benefit from additional clarity or refined regulations, and revisions to be consistent with current state Law. State Law requires that the City deem ADUs to be a "residential use that is consistent with the existing general plan and zoning designation" (Government Code Section 65852.2(a)(1)(C)).

For the above reasons, the adoption of ZCA 24-1001 is consistent with the goals, objectives, and policies of the Laguna Niguel General Plan. The Planning Commission also finds the proposed amendments would not be detrimental to the public interest, health, safety, convenience, or welfare of the City in that they will merely amend the LNMC to be consistent with state law and fair housing laws. Therefore, the proposed zoning code amendments will not adversely affect public health, safety, or general welfare.

SECTION 4. Recommendation to City Council. Based on the entire record before the Planning Commission, all written and oral evidence presented to the Planning Commission, and the findings made in the staff report and this Resolution, the Planning Commission of the City of Laguna Niguel hereby recommends that the City Council adopt ZCA 24-1001 as provided in the attached "Exhibit 1."
Resolution No. 24-08 4
ZCA 24-1001 (Code Amendments to Address State Mandates) PASSED, APPROVED, AND ADOPTED this 12'h day of November, 2024.

AYES: Hayes, Ferlauto, Green, Meihaus
NOES:

ABSTAIN:

ABSENT:

Ith Glen
Jonathan Orduna
Community Development Director
-
Kathleen Hayes
Vice Chair of the Planning Commission
Exhibit 1: Draft Laguna Niguel Municipal Code Text Amendments RESOLUTION NO. 24-09

RESOLUTION OF THE PLANNING COMMISSION OF

THE CITY OF LAGUNA NIGUEL, CALIFORNIA, RECOMMENDING
THAT THE CITY COUNCIL APPROVE ZONING CODE AMENDMENT (ZCA) 24-1002

AMENDING VARIOUS SECTIONS OF THE GATEWAY SPECIFIC PLAN TO ADDRESS SEVERAL STATE MANDATES; AND DETERMINING THE ACTION TO BE

EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT UNDER STATE CEQA GUIDELINES SECTIONS 15060(C)(2), 15060(C)(3), AND 15061(B)(3)

WHEREAS,

1. By the authority granted to the City of Laguna Niguel ("City") by Article XI, Section of the California Constitution,
convenience and general prosperity, as well as public health, welfare, and safety.

2. On December 5, 2023, the 2021-2029 (6th cycle) Laguna Niguel Housing Element ("Housing Element") was approved by the City Council.

3. On February 22, 2024, the California Department of Housing and Community Development ("HCD") found the adopted housing element, including all technical modifications, to be in substantial compliance with the state's Housing Element law (Gov. Code, § 65580 et seq). HCD's determination is subject to the timely and effective implementation of all programs outlined within the Housing Plan.

4. The adopted Housing Element includes Action 3.2, which states: "The City will evaluate and amend the Gateway Specific Plan to mandate that any public benefit to achieve a density of higher than 50 du/ac shall include a provision of affordable housing."

5. The proposed Zoning Code Amendment 24-1002 (hereinafter "ZCA 24-1002") is designed to amend various sections of the Gateway Specific Plan, ensuring compliance with Housing Element Action 3.2.

In accordance with Government Code Section 65091(a)(4), for projects affecting over 1,000 property owners, a one-eighth (1/81) page notice of the public hearing describing the project, date, time and location of the hearing was advertised in the Orange County Register - Laguna Niguel News at least 10 days prior to the March 26, 2024 hearing date. A notice was also posted at City Hall and was made available on the City's website.

7. On November 12, 2024 the Planning Commission held a duly noticed public hearing on ZCA 24-1002, at which time the Planning Commission considered all evidence presented by City staff and other interested parties.

Resolution No. 24-09 2
ZCA 24-1002 (Code Amendments to Address State Mandates)

NOW THEREFORE, THE PLANNING COMMISSION OF THE CITY OF LAGUNA NIGUEL, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 2. CEQA. The Planning Commission finds, and recommends that the City Council find, that the adoption of ZCA 24-1002 is exempt from the California Environmental Quality Act (CEQA") because it is an administrative activity that will not result in a direct or reasonably foreseeable indirect physical change to the environment and is thus not a "project" under state CEQA Guidelines 15378 (see state CEQA Guidelines, Section 15060(c)(2) and (3)). Here, the code amendments do not constitute a project subject to CEQA because they ensure that the City's standards and permitting requirements are consistent with state law and fair housing laws, as required by HCD. The code amendments merely codify these requirements in the Gateway Specific Plan. Additionally, the code amendments are exempt from CEQA under Section 15061(b)(3) of the state CEQA Guidelines, which provides that a project is exempt from CEQA where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Here, there is no possibility that the code amendments may have a significant effect on the environment because they merely amend the Gateway Specific Plan to be consistent with state law and fair housing laws, which are already binding on the City.

SECTION 3. Additional Findings. The Planning Commission finds, and recommends that the City Council find, that ZA 24-1002 meets the findings required for zoning code amendments in accordance with LNMC Section 9-1-117.4(d). The proposed amendments are consistent with and implement the goals and policies of all elements of the Laguna Niguel General Plan and exercise the City's land use powers to protect the health, safety, and welfare of the public. Furthermore, the proposed amendments are consistent with the following Laguna Niguel General Plan Policy:
• Housing Element, Goal 1, Policy 1.4, "support innovative public, private, and non- profit efforts in the development of affordable housing, particularly for special needs groups." The proposed amendments clarify the innovative Gateway Specific Plan Density Bonus Program, limiting the benefits to affordable housing to achieve densities exceeding 50 du/acre.

For the above reasons, the adoption of ZCA 24-1002 is consistent with the goals, objectives, and policies of the Laguna Niguel General Plan. The Planning Commission also finds the proposed amendments would not be detrimental to the public interest, health, safety, convenience, or welfare of the City in that they will merely amend the Gateway Specific Plan to be consistent with state law and fair housing laws. Therefore, the proposed zoning code amendments will not adversely affect public health, safety, or general welfare.

Resolution No. 24-09 3
ZCA 24-1002 (Code Amendments to Address State Mandates) SECTION 4. Recommendation to City Council. Based on the entire record before ZCA 24-1002 as provided in the attached "Exhibit 1."
Resolution No. 24-09 4
ZCA 24-1002 (Code Amendments to Address State Mandates) PASSED, APPROVED, AND ADOPTED this 12th day of November, 2024.

AYES: Hayes, Ferlauto, Green, Meihaus
NOES:

ABSTAIN:

ABSENT:

Kha Glen
Jonathan Orduna
Community Development Director
-
Kathleen Hayes
Vice Chair of the Planning Commission
Exhibit 1: Draft Gateway Specific Plan Text Amendments

THE CITY OF LAGUNA NIGUEL

MINUTES OF THE REGULAR MEETING

OF THE PLANNING COMMISSION
COUNTR
1989 NOVEMBER 12, 2024
CALL TO ORDER By Vice Chair Hayes at 7:00 p.m.

ROLL CALL
Voting Members Present: Vice Chair Kathleen Hayes
Commissioner Karen Ferlauto
Commissioner Roger Green
Commissioner Brian Meihaus
Voting Members Absent: None
Advisory Members Present: Grumanity Development Director Jonathan Staff Present: Deputy Director John Morgan
City Attorney Scott Smith
Assistant City Attorney Nicolas Papajohn
Senior Planner Erica Roess
Management Analyst Hannah Tamaddon
PLEDGE OF ALLEGIANCE Led by Commissioner Green
APPROVAL OF MINUTES - July 23, 2024
It was moved by Commissioner Meihaus and seconded by Vice Chair Hayes to approve the Minutes of the July 22, 2024, Planning Commission meeting. The motion carried 4-0.

AYES: Hayes, Ferlauto, Green, Meihaus
NOES: None
ABSTAIN: None
ABSENT: None

PUBLIC COMMUNICATIONS
None
Planning Commission Minutes Page 1 of 9 November 12, 2024

NOTICED PUBLIC HEARING ITEMS

1. Zoning Code Amendment ZCA 24-1001 and Zoning Code Amendment ZCA 24- 1002 (Code Amendments to Address State Mandates) - PUBLIC HEARING - City-initiated ordinances to amend various sections of the Laguna Niguel Municipal Code and Gateway Specific Plan to address several state land-use mandates.

Recommended Action: That the Planning Commission open the public hearing, take public testimony, close the public hearing, and then take the following actions:

A. Find that adoption of Zoning Code Amendment ZCA 24-1001 and Zoning Code Amendment ZCA 24-1002 are exempt from the Calitornia Environmental Quality Act ("CEQA") because they are both an administrative activity that will not result in a direct or reasonably foreseeable indirect physical change to the environment and thus is not a "project" under State CEQA Guidelines Section 15378 (see State CEQA Guidelines, Section 15060(c)(2) and (3)). Alternatively, even if adoption of ZCA 24-1001 and ZCA 24-1002 did qualify as a project under CEQA, find that it is exempt from CEQA pursuant to Section 15061(b)(3), which provides that a project is exempt from CEQA where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. And find that, moreover, Zoning Code Amendment ZCA 24-1001 is statutorily exempt from CEQA under Public Resources Code section 21080.17.

B. Adopt Resolution No. 24-08 (Attachment A) recommending that the City Council approve Zoning Code Amendment ZCA 24-1001 amending various sections of the Laguna Niguel Municipal Code to address several state land- use mandates; and determining the action to be exempt from the California Environmental Quality Act under State CEQA Guidelines Sections 15060(c)(2), 15060(c)(3), 15061(b)(3), and Public Resources Code section 21080.17.

C. Adopt Resolution No. 24-09 (Attachment C) recommending that the City Council approve Zoning Code Amendment ZCA 24-1002 amending various sections of the Gateway Specific Plan to address several state land-use mandates; and determining the action to be exempt from the California Environmental Quality Act under State CEQA Guidelines Sections 15060(c)(2), 15060(c)(3), and 15061(b)(3).

Senior Planner Roess provided a PowerPoint presentation summarizing the proposed Zoning Code Amendments.

Commissioner Ferlauto inquired about the current number of ADUs and JADUs in the City.

Senior Planner Roess responded that the first ADU permit was issued in 2008, and since Planning Commission Minutes Page 2 of 9 November 12, 2024 2021, the City had approved 47 total ADUs and JADUs. At the beginning of this housing element cycle, the City had approved 36, comprising 30 ADUs and 6 JADUs. Additionally, seven ADU applications were in progress.

Commissioner Green noted that the City had committed to comprehensively amending the Gateway Specific Plan (GSP). He observed that the zoning code amendments presented included revisions to the GSP and questioned why these revisions were being made now rather than as part of the upcoming comprehensive update. Senior Planner Roess explained that the timing of this amendment was driven by the General Plan Update and the need to comply with state law sooner than the future update for the GSP. Commissioner Green confirmed with Senior Planner Roess that, following the Commission's recommendations to the City Council and the item's approval, staff would incorporate these amendments into both the GSP and the General Plan (GP).

Commissioner Green raised a question about language on page 2 of redlined Attachment B, regarding the allowance of "up to eight detached ADUs on a lot with an existing multifamily dwelling." He felt the number seemed excessive. Senior Planner Roess clarified that the provision was verbatim from state law and referenced a memo from the City Attorney's office in Attachment F, which outlined state housing requirements. Commissioner Green expressed frustration that the City had no input on the regulation, and City Attorney Smith agreed. Senior Planner Roess added that to date, the City had permitted one ADU on a multifamily lot.

Commissioner Green voiced concerns about parking provisions outlined on page 4, specifically regarding the lack of a replacement requirement when a parking space is removed for an ADU. He asked how the City would address such situations, particularly when HOA regulations conflict with the ordinance. Senior Planner Roess explained that ADU and JADU provisions supersede HOA regulations. Commissioner Green emphasized the potential issue of forcing residents to park on the street and suggested replacement parking should be considered. Deputy Director Morgan acknowledged the concern but noted that the City was bound by state law and had no discretion in this matter. Commissioner Green stated for the record that this conflict between state, local, and HOA regulations could pose a problem. City Attorney Smith elaborated on the potential ramifications for private property rights.

Commissioner Meihaus confirmed with City Attorney Smith that the City would not enforce in this context. He also confirmed with City Attorney Smith and Senior Planner Roess that the revisions presented were either directly required by state law or aligned with the City's Housing Element. Community Development Director Orduna assured the Commission that staff would inform them if and when any flexibility or discretion were possible.

Commissioner Green expressed concerns about a statement in the code allowing the City to approve ADU applications on properties with nonconforming zoning, building code violations, or unpermitted structures, as long as these issues did not pose a threat to public health or safety. He questioned how the City would determine such threats. Deputy Director Morgan explained that while staff typically addresses code violations, the state's legislation limited the City's authority to reject applications based on non-life-threatening issues. Commissioner Green suggested adding language specifying that the building official could make these determinations. Community Development Director Orduna responded that the City's practice Planning Commission Minutes Page 3 of 9 November 12, 2024 already relied on the building official or relevant experts, and such language was unnecessary as it would conflict with the existing code format.

Commissioner Green questioned the definition of "sanitation facilities" on page 9, and noted it was odd. Deputy Director Morgan explained that the term was intentionally general to align with state law. Community Development Director Orduna added that many provisions in state law were poorly written but emphasized the importance of adhering to them to ensure the ordinance's compliance with HCD requirements. Failure to comply could void the City's ADU ordinance entirely, leaving the City without any regulatory framework. Commissioner Green acknowledged staffs challenges. Community Development Director Orduna added that the Commission may see items like these return on an annual basis each year as new state laws are passed.

Commissioner Meihaus thanked staff for their presentation and expressed concerns about the state's process, which limited local control and discretion. Despite his reservations about the new laws, he stated that the repercussions of non-compliance were greater and was therefore willing to support the proposed revisions.

Commissioner Meihaus asked how the City determined the affordable housing requirements of 5% very low-income and 10% low-income housing projects in the GSP area that exceed 50 dwelling units per acre. Senior Planner Roess explained that the criteria were based on a pro forma analysis conducted during the Housing Element process, which identified 15% as the upper limit for developers in the GSP area. Historically, in addition to fees or open space contributions, the City had negotiated percentages for affordable housing. The proposed requirements aimed to provide clear, objective standards as required by HCD.

Community Development Director Orduna clarified that, unlike the ADU ordinance, the affordable housing requirements were within the Commission's purview to modify. However, the requirements needed to be clearly defined and objective, not subject to staff or Commission discretion.

Commissioner Meihaus expressed concerns about the potential economic impact of the collective 15% requirement on developers. Deputy Director Morgan noted that previous projects in the Gateway area had successfully negotiated lower affordable housing commitments while also contributing to infrastructure improvements. Commissioner Meihaus feared the new requirements could deter development and hinder the City's ability to meet RHNA goals.

Commissioner Meihaus asked if they must use a quantitative number regarding affordability levels. Community Development Director Orduna explained that it would be difficult to craft a clear obiective standard without one. Commissioner Meihaus noted that historically, it seemed as though the affordability level was either 5% very-low or 10% low-income categories.

Vice Chair Hayes asked how staff determined the 15% figure. Senior Planner Roess explained that the number was based on a consultant's analysis of housing incentives and the feasibility of development near metro stations. She noted that the density bonus provisions already existed in the Gateway Specific Plan but that the new requirements would Planning Commission Minutes Page 4 of 9 November 12, 2024 eliminate other public benefit options, making affordable housing the sole path to higher densities above 50 and up to 120 dwelling units per acre.

Commissioner Green asked how the new requirements would help meet RHNA goals. Senior Planner Roess noted that the City met its last RHNA cycle allocation but that the current cycle was significantly larger. Non-compliance could result in penalties. Commissioner Green expressed his concern with the 15% affordability requirement, noting the potential risk to development.

Commissioner Green inquired whether the City had considered retaining language allowing other public benefits as an option for developers. Senior Planner Roess stated that the Housing Element certification required the removal of those options.

Vice Chair Hayes noted the need to propose an alternative to the 15% requirement if the Commission did not approve it.

Commissioner Meihaus suggested replacing the word "and" with "or" so that it would read 5% very low or 10% low-income in the affordability requirements to provide developers with more flexibility. Commissioner Green proposed simplifying the requirement to a 10% overall affordability rate. Senior Planner Roess and City Attorney Smith advised that the blanket affordability percentage might be too broad.

Commissioner Meihaus confirmed with Community Development Director Orduna that the projects in the Gateway all exceeded 50 units an acre. Commissioner Meihaus noted that the historical record showed a developer preferred a higher density.

Community Development Director Orduna emphasized that using the term "affordable" without defining income levels could be too broad. The city's current framework, developed in 2011, allows for flexibility by evaluating projects on a case-by-case basis to balance opportunities and constraints. However, recent state requirements prioritize objective standards over local government discretion. This shift stems from a perceived distrust in local governments to make fair decisions, potentially leading to restrictions on housing development. The state-promoted framework could unintentionally deter developers, although its ultimate impact on Gateway projects remains uncertain. A Gateway Specific Plan Update, scheduled for late 2026, will revisit these broader policy issues.

Vice Chair Hayes suggested that the use of the word "or" instead of "and" in affordability standards would be more reasonable and provide developers with more flexibility and asked if the percentage numbers could change. Senior Planner Roess answered that the Commission could change the numbers, and it would be helpful for the changes to include a justification.

Commissioner Meihaus supported replacing "and" with "or," citing historical success with providing such options.

Commissioner Green confirmed with Deputy Director Morgan that developers have historically been agreeable to options like "5% very low-income or 10% low-income," and there was precedence for these specific figures.

Planning Commission Minutes Page 5 of 9 November 12, 2024 Community Development Director Orduna confirmed with Senior Planner Roess that very low-income units can count toward RHNA's low-income requirements, but the reverse was not true. He also noted that while penalties exist for not meeting very low and low-income housing targets, there were no penalties for missing moderate-income targets.

Commissioner Meihaus asked whether staff had a sense that we could achieve our RHNA.

Community Development Director Orduna answered that staff was required to provide an analysis as part of the Housing Element to prove it is achievable.

Commissioner Green confirmed with Deputy Director Morgan that offering flexibility in affordability options, such as 5% very low-income or 10% low-income, aligns with developers' preferences and could enhance their project feasibility. Historically, other components could have been on the table, but state law was removing the City's ability to subjectively negotiate such benefits in exchange for density bonuses.

Vice Chair Hayes confirmed with Deputy Director Morgan that developers would prefer options, and this could assist their own real-estate profile by choosing one or the other.

Vice Chair Hayes opened and closed the Public Hearing at 8:11 p.m.

Commissioner Ferlauto thanked staff for their hard work to continue to make these changes based on newly enacted regulations from the state. She acknowledged how difficult a job it was trying to keep up with the changes. She noted that the documentation was excellent and she concurred with the comments made this evening.

It was moved by Commissioner Ferlauto and seconded by Commissioner Green to A) find that adoption of Zoning Code Amendment ZCA 24-1001 and Zoning Code Amendment ZCA 24-1002 are exempt from the California Environmental Quality Act ("'CEQA") because they are both an administrative activity that will not result in a direct or reasonably foreseeable indirect physical change to the environment and thus is not a "project" under State CEQA Guidelines Section 15378 (see State CEQA Guidelines, Section 15060(c)(2) and (3)). Alternatively, even if adoption of ZCA 24-1001 and ZCA 24-1002 did qualify as a project under CEQA, find that it is exempt from CEQA pursuant to Section 15061(b)(3), which provides that a project is exempt from CEQA where it an be seen with certainty that there is no possibility that the activity in question may have a sianificant effect on the environment. And find that, moreover, Zoning Code Amendment ZCA 24-1001 is statutorily exempt from CEQA under Public Resources Code section 21080.17.

The motion carried 4-0.

AYES: Hayes, Ferlauto, Green, Meihaus
NOES: None
ABSTAIN: None
ABSENT: None
Planning Commission Minutes Page 6 of 9 November 12, 2024 It was moved by Commissioner Ferlauto and seconded by Commissioner Meihaus to B) adopt Resolution No. 24-08 (Attachment A) recommending that the City Council approve Zoning Code Amendment ZCA 24-1001 amending various sections of the Laguna Niguel Municipal Code to address several state land-use mandates; and determining the action to be exempt from the California Environmental Quality Act under State CEQA Guidelines Sections 15060(c)(2), 15060(c)(3), 15061(b)(3), and Public Resources Code section 21080.17.

Commissioner Green noted for the record that he appreciated staff's work on this item in an attempt to accommodate the City's policies and comply with state law but noted his frustration with the state dictating what local jurisdictions are required to do.

The motion carried 4-0.

AYES: Hayes, Ferlauto, Green, Meihaus
NOES: None
ABSTAIN: None
ABSENT: None
It was moved by Commissioner Meihaus and seconded by Commissioner Ferlauto to C) adopt Resolution No. 24-09 (Attachment C) recommending that the City Council approve Zoning Code Amendment ZCA 24-1002 as amended, with modifications to read 5% very low-income or 10% low-income, amending various sections of the Gateway Specific Plan to address several state land-use mandates; and determining the action to be exempt from the California Environmental Quality Act under State CEQA Guidelines Sections 15060(c)(2), 15060(c)(3), and 15061(b)(3).

The motion carried 4-0.

AYES: Hayes, Ferlauto, Green, Meihaus
NOES: None
ABSTAIN: None
ABSENT: None

OTHER BUSINESS

1. Cancellation of the November 26, 2024, and December 24, 2024, Planning Commission Meetings - When the regularly scheduled second Planning Commission meeting in the month of November occurs near the Thanksgiving holiday, the meeting has traditionally been canceled. The regularly scheduled second meeting in December occurs on a City holiday.

Recommended Action: That the Planning Commission cancel the November 26, 2024, and December 24, 2024, Planning Commission
meetings.

Planning Commission Minutes Page 7 of 9 November 12, 2024 It was moved by Commissioner Green and seconded by Commissioner Meihaus to cancel the November 26, 2024, and December 24, 2024 Planning Commission meetings.

The motion carried 4-0.

AYES: Hayes, Ferlauto, Green, Meihaus
NOES: None
ABSTAIN: None
ABSENT: None

REPORTS AND COMMENTS
Planning Commission
Vice Chair Hayes expressed that she would miss Chair Savage-Lebhart and thanked her for her time serving on the Planning Commission.

Commissioner Meihaus thanked staff for their efforts in navigating the new state regulations and commended them for doing an excellent job.

2. Community Development Director and Staff
Community Development Director Orduna expressed his appreciation for Chair Savage-Lebhart, highlighting her thoughtful consideration of issues and her support of staff. He acknowledged her dedication and energy on behalf of the community and noted that she would be greatly missed.

Community Development Director Orduna also provided an update on the auction for the Chet Holifield Federal Building property. He explained that while the auction had concluded, the sale had not yet been finalized. The winning bidder is currently working with the General Services Administration (GSA) to complete the sale. He estimated that the process could be finalized by late spring, assuming everything proceeds as planned, but cautioned that the auction and disposal process had been unpredictable thus far. He assured the Commission that staff would provide updates as more information becomes available.

ADJOURN
The meeting was adjourned at 8:20 p.m.

Planning Commission Minutes Page 8 of 9 November 12, 2024 ATTEST:

Jonathan Orduna
Community Development Director
Kathleen Hayes
Planning Commission Vice Chair
Planning Commission Minutes Page 9 of 9 November 12, 2024 Attachment F
HCD Letter of August 22, 2024
STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
651 Bannon Street, Suite 400
Sacramento, CA 95811
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
August 22, 2024
Jonathan Orduna, Community Development Director
Planning and Zoning
City of Laguna Niguel
30111 Crown Valley Parkway
Laguna Niguel, CA 92677
Dear Jonathan Orduna:

RE: Review of Laguna Niguel's Accessory Dwelling Unit (ADU) Ordinance Under State ADU Law (Gov. Code, §§ 66310 - 66342)
Please Note: As of March 25, 2024, with the Chaptering of Senate Bill (SB) 477 (Chapter 7, Statutes of 2024), the sections of Government Code relevant to State ADU and Junior Accessory Dwelling Unit (JADU) Law have been re-numbered (Enclosure 1).

Thank you for submitting the City of Laguna Niguel (City) ADU Ordinance No. 2023-223 (Ordinance), adopted June 20, 2023, to the California Department of Housing and Community Development (HCD). HCD has reviewed the Ordinance and submits these written findings pursuant to Government Code section 66326, subdivision (a). HCD finds that the Ordinance does not comply with State ADU and JADU Laws in the manner noted below. Under section 66326, subdivision (b)(1), the City has up to 30 days to respond to these findings. Accordingly, the City must provide a written response to these findings no later than September 21, 2024
The Ordinance addresses many statutory requirements; however, HCD finds that the Ordinance does not comply with State ADU Law in the following respects:

1. Statutory Numbering - The Ordinance contains several references to code sections that were deleted by SB 477, effective March 25, 2024. These include Government Code sections 65852.2, 65852.22 and 65852.26. The contents of these sections were relocated to Government Code, Title 7, Division 1, Chapter 13 (sections 66310-66342, see Enclosure). The City must amend the Ordinance to refer to the correct code sections.

2. Section 9-1-35.26 (d)(1) - Mixed Use Conversion - The Ordinance states, "Nothing in this section shall allow for the conversion of commercial or non- residential space in a mixed-use building." However, Government Code section 66323, subdivision (a)(2), permits conversion in "....portions of existing multifamily Jonathan Orduna, Community Development Director

Page 2 ends

dwelling structures that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages, if each unit complies with state building standards for dwellings." Where an existing multifamily dwelling structure contains a mix of uses such as common spaces shared by the tenants of the structure, those portions within the structure that are not used as livable space are eligible for conversion to ADUs under subdivision (a)(3). Therefore, the City must amend the Ordinance to allow the conversion of portions of existing multifamily dwelling structures that are not used as livable space.

3. Section 9-1-35.26 (d)(3)(a) - Unit Allowance - The Ordinance states, "In single- family residential zoning districts, an applicant shall be allowed to construct one (1) detached or attached ADU per lot, or convert existing space into one (1) ADU.

In addition to the one (1) ADU allowed in this Section, an applicant may also construct one (1) Junior Accessory Dwelling Unit (JADU) so long as it complies with Section 9-1-35.27." This language limits developable ADUs to one per single-family lot, regardless of format.

Government Code section 66323, subdivision (a), states, "Notwithstanding Sections 66314 to 66322, inclusive, a local agency shall ministerially approve an application for a building permit within a residential or mixed-use zone to create any of the following: (1) One accessory dwelling unit and one junior accessory dwelling unit per lot with a proposed or existing single-family dwelling... (A) The accessory dwelling unit or junior accessory dwelling unit is within the proposed space of a single family dwelling or existing space of a single-family dwelling or accessory structure." Paragraph (2) permits "Io]ne detached, new construction, accessory dwelling unit that does not exceed four-foot side and rear yard setbacks." The use of the term "any" followed by an enumeration of by-right ADU types permitted means that any of these ADU types can be combined on a lot zoned for single-family dwellings.

This permits a homeowner, who meets specified requirements, to create one converted ADU; one detached, new construction ADU; and one JADU. Thus, if the local agency approves an ADU that is created from existing (or proposed) space, and the owner subsequently applies for a detached ADU (or vice versa) that meets the size and setbacks pursuant to the subdivision, the local agency cannot deny the application, nor deny a permit for a JADU under this section.

Therefore, the City must amend the Ordinance to provide for all ADU combinations described in Government Code section 66323.

4. Section 9-1-35.26 (d)(8) - Parking Exceptions - The Ordinance provides four conditions under which no parking may be required, and these conditions match those of Government Code section 66322, subdivisions (a)(1), (a)(3), (a)(4), and (a)(5). However, the Ordinance does not exempt parking requirements under the condition of subdivision (a)(6): "When a permit application for an accessory dwelling unit is submitted with a permit application to create a new single-family Jonathan Orduna, Community Development Director

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dwelling or a new multifamily dwelling on the same lot, provided that the accessory dwelling unit or the parcel satisfies any other criteria listed in this paragraph." Therefore, the City must amend the Ordinance to comply with State ADU Law regarding parking standards.

5. Section 9-1-35.26 (d)(14) - Deed Restriction - The Ordinance states, "Prior to the issuance of a Certificate of Occupancy for the ADU, the property owner shall record a deed restriction prepared by the City on the subject lot..." However, a deed restriction cannot be imposed on an ADU. Government Code section 66315 states, "No additional standards, other than those provided in Section 66314, shall be used or imposed, including an owner-occupant requirement, except that a local agency may require that the property may be used for rentals of terms 30 days or longer." A deed restriction would be an "additional standard" and thus cannot be imposed. The City must remove this provision from the Ordinance.

6. Section 9-1-35.26 (d)(18) - Owner Occupancy - The Ordinance states, "Occupancy. For any ADU permitted before January 1, 2025, ADUs may be rented or owner occupied and there shall not be a requirement that any unit on the lot be owner-occupied. For an ADU permitted after January 1, 2025, however, either the primary dwelling or the ADU shall be owner occupied, unless State law is amended to prohibit such a requirement." Government Code section 66315 states "Section 66314 establishes the maximum standards that a local agency shall use to evaluate a proposed accessory dwelling unit on a lot that includes a proposed or existing single-family dwelling. No additional standards, other than those provided in Section 66314, shall be used or imposed, including an owner-occupant requirement..." The City must remove these occupancy restrictions from the Ordinance.

7. Section 9-1-35.27 (c)(2) and (c)(15) - JADU Rental Terms - The Ordinance states, "The JADU shall not be.. rented for a period of less than thirty (30) days." However, Government Code section 66333 does not require rental term minimums for JADUs and therefore such a requirement would be inconsistent with State JADU Law. The City must remove this requirement from the Ordinance.

8. Section 9-1-35.27 (c)(5) - Attached Garages - The Ordinance states, "A JADU must be contained within the walls of an existing or proposed single-family dwelling." However, Government Code section 66333, subdivision (d) requires "a permitted junior accessory dwelling unit to be constructed within the walls of the proposed or existing single-family residence. For purposes of this paragraph, enclosed uses within the residence, such as attached garages, are considered a part of the proposed or existing single-family residence." Therefore, the City should amend the Ordinance to note that attached garages may be converted to JADUs.

Jonathan Orduna, Community Development Director

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9. Section 9-1-35.27 (c)(16) - JADU Nonconformity - The Ordinance states, "Any proposed JADU that does not conform to the objective standards set forth in subsections (1) through (15) of this section may be allowed by the City pursuant to Alternative Development Standards subject to approval of a Site Development Permit in compliance with the provisions of Section 9-1-114." JADUs are defined in Government Code section 66313, subdivision (d) as "a unit that is no more than 500 square feet in size and contained entirely within a single-family residence. A junior accessory dwelling unit may include separate sanitation facilities, or may share sanitation facilities with the existing structure." The City must reflect state law pertaining to JADUs and avoid confusing its constituents with inapplicable requirements that are inconsistent with state law.

The City has two options in response to this letter. The City can either amend the Ordinance to comply with State ADU Law or adopt the Ordinance without changes and include findings in its resolution adopting the Ordinance that explain the reasons the City believes that the Ordinance complies with State ADU Law despite HCD's findings.

If the City fails to take either course of action and bring the Ordinance into compliance with State ADU Law, HCD must notify the City and may notify the California Office of the Attorney General that the City is in violation of State ADU Law.

HCD appreciates the City's efforts in the preparation and adoption of the Ordinance and welcomes the opportunity to assist the City in fully complying with State ADU Law.

Please contact Mike Van Gorder at [email protected] if you have any questions or would like HCD's technical assistance in these matters.

Sincerely,
Jamie Candelaria
Jamie Candelaria
Senior Housing Accountability Unit Manager
Housing Policy Development Division
State ADU/JADU Law Statutory Conversion Table
New Government Code Sections Previous Government Code Sections Article 1. General Provisions
66310 65852.150 (a)
66311 65852.150 (b)
66312 65852.150 (C)
66313 General Definition Section
65852.2 (i)
65852.22 ()
Article 2. Accessory Dwelling Unit Approvals
66314 65852.2(a)(1)(A), (D)(i)-(xi), (a)(4)-(5)
66315 65852.2 (a)(8)
66316 65852.2 (a)(6)
66317 65852.2 (a)(3), (a)(7)
66318 65852.2 (a)(9), 65852.2 (a)(2)
66319 65852.2 (a)(10)
66320 65852.2 (b)
66321 65852.2 (c)
66322 65852.2 (d)
66323 65852.2 (e)
66324 65852.2 (t)
66325 65852.2 (g)
66326 65852.2 (h)
66327 65852.2 (j)
66328 65852.2 (k)
66329 65852.2 (l)
66330 65852.2 (m)
66331 65852.2 (n)
66332 65852.23.

Article 3. Junior Accessory Dwelling Units
66333 65852.22 (a)
66334 65852.22 (b)
66335 65852.22 (c)
66336 65852.22 (d)
66337 65852.22 (e)
66338 65852.22 (f)-(g)
66339 65852.22 (h)
Article 4. Accessory Dwelling Unit Sales
66340 65852.26 (b)
663.41 65852.26 (a)
66342 65852.2 (a)(10)
Attachment G
BBK Legal Alert dated October 1, 2024
BBK
BEST BEST & KRIEGER w
Legal Alerts | 10/01/2024
Governor Newsom Signs Three New Accessory
Dwelling Unit Bills
More Changes Coming to California's ADU Laws
In recent years, the California Legislature has enacted bills that reduce local control over the development of accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs). Recent examples include legislation requiring ministerial approval of ADU and JADU applications within 60 days, authorizing ADUs on lots with multifamily dwellings, prohibiting local agencies from imposing local development standards (e.g., height and setbacks) beyond state-set limits, and requiring local agencies to allow ADUs to be sold separately from the lot's primary dwelling if certain conditions are met. (For additional information on recent ADU legislation, see our legal alerts covering SB 477, AB 2221 and SB 897, and AB 345).

In September 2024, Governor Newsom signed three more ADU bills (AB 2533, SB 1211, and SB 1077) that will each take effect on January 1, 2025.

AB 2533 and SB 1211 contain new requirements that will apply to all local ADU ordinances — and any local ordinance that does not conform to AB 2533's and SB 1211's changes to state ADU law will be rendered null and void as a matter of law on January 1, 2025.

SB 1077 has a narrower reach requiring the California Coastal Commission (Coastal Commission) and Department of Housing and Community Development (HCD) to develop guidance regarding ADUs and JADUs in coastal areas.

Noteworthy features from each bill are summarized below.

AB 2533 - Unpermitted ADUs and JADUs
With some limited exceptions, Government Code section 66332 already prohibits local agencies from denying a permit to legalize an unpermitted ADU that was constructed before January 1, 2018, if the denial is based on the ADU not complying with applicable building, state or local ADU standards. One exception allows local agencies to deny a permit to legalize if they make a written finding that correcting the violation is necessary to protect the health and safety of the public or the occupants of the structure.

AB 2533 alters this landscape by amending Government Code section 66332 to: (1) expand its applicability to JADUs; (2) change the construction cutoff date from January 1, 2018, to January 1, 2020; (3) replace the above exception with a requirement that local agencies find that correcting the violation is necessary to comply with the standards specified in Health and Safety Code section 17920.3 (Substandard Buildings); (4) mandate new public- notification requirements about limits on local regulation, substandard-building criteria, and pre-application inspection by a private contractor; and (5) address scope of city inspections and limits on remedial action. (See amended Gov. Code, S 66332 (a) - (f).)
SB 1211 - Replacement Parking Requirements; Multifamily ADUs Replacement Parking
Existing Government Code section 66314(d) (11) already prohibits local agencies from requiring off-street parking spaces to be replaced when a garage, carpor or covered parking structure is demolished in conjunction with the construction of, or conver ed to, an ADU.

SB 1211 amends this subsection to also prohibit local agencies from requiring replacement parking when an uncovered parking space is demolished for or replaced with an ADU.

Multifamily ADUs
Under existing Government Code section 66323(a) (3) (A), local agencies must ministerially approve qualifying building permit applications for ADUs within "portions of existing multifamily dwelling structures that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages ..." The term "livable space" is not de ined by state ADU law.

SB 1211 changes this by adding a new de inition stating "livable space' means a space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation." (See amended Gov. Code, S 66313(e).)
SB 1211 also increases the quantity of detached ADUs that lots with an existing multifamily dwelling can have.

Currently, Government Code section 66323(a) (4)(A) permits lots with an existing or proposed multifamily dwelling to have up to two detached ADUs. Following SB 1211, lots with an existing multifamily dwelling can have up to eight detached ADUs, or as many detached ADUs as there are primary dwelling units on the lot, whichever is less. (See amended Gov. Code, $ 66323(a) (4)(A) (i).) SB 1211 does not alter the number of ADUs that lots with proposed multifamily dwelling can have - they remain limited to two detached ADUs. (See Gov. Code, S 66323(a) (4) (iii) .)
SB 1077 - State Coastal Zone Guidance
For some time now, the state has given vague or con licting guidance on how ADU development is treated under the Coastal Act.

SB 1077 requires the Coastal Commission to coordinate with HCD to "develop and provide guidance for local governments to facilitate the preparation of amendments to a local coastal program to clarify and simplify the permitting process" for ADUs and JADUs within the Coastal Zone by July 1, 2026.

The bill also requires these state agencies to hold at least one "public workshop to receive and consider public comments" on the dra guidance — which must be posted on Coastal Commission's and HCD's respective websites at least 30 days before the workshop. (See new Public Resources Code, S 30500.5(a) - (b).) Agencies in the Coastal Zone will want to track the development of that joint "guidance" and should consider providing comments before or at the workshop.

Laguna Niguel City CouncilDecember 17, 2024

Laguna Niguel City Council
December 17, 2024