Attachment D
July 17, 2025 Planning Commission Staff
Report (Without Attachments)
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CITY OF NEWPORT BEACH
PLANNING COMMISSION STAFF REPORT
July 17, 2025
Agenda Item No. 3
SUBJECT: Accessory Dwelling Unit Ordinance Update (PA2025-0093) ▪ Zoning Code Amendment
▪ Local Coastal Program Amendment
SITE LOCATION: Citywide
APPLICANT: City of Newport Beach
PLANNER: Oscar Orozco, Associate Planner
949-644-3219, [email protected]
PROJECT SUMMARY
Amendments to Title 20 (Zoning Code) and Title 21 (Local Coastal Program Implementation Plan) updating regulations pertaining to Accessory Dwelling Units (ADU) and Junior Accessory Dwelling Units (JADU) to conform with revisions to Government Code Sections 66310 through 66342 that went into effect on March 27, 2024, and January 1, 2025.
RECOMMENDATION
1) Conduct a public hearing;
2) Find this project statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15282(h) of the CEQA Guidelines, which states that the adoption of an ordinance regarding second units to implement the provisions of Sections 66310 through 66342 of the Government Code are exempt from the requirements of CEQ A and pursuant to CEQA Guidelines Section 15265(a)(1), local governments are exempt from the requirements of CEQA in connection with the adoption of a Local Coastal Program.;
3) Adopt Resolution No. PC2025-014 (Attachment No. PC 1) recommending the City Council approve PA2025-0093, including the Zoning Code Amendment and the Local Coastal Program Amendment (LCPA) and authorize staff to submit the Local Coastal Program Amendment (LCPA) to the California Coastal Commission (CCC).
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DISCUSSION
Background
On February 14, 2023, the City Council adopted Ordinance No. 2023 -2, the City’s most recent amendment to the ADU ordinance. The ADU Ordinance Summary Matrix provides an outline of the current ADU regulations (Attachment No. PC 2). Subsequent to its adoption, the ordinance was submitted to the California Department of Housing and Community Development (HCD) on February 18, 2023 , pursuant to Government Code Section 66326, which requires local governments to submit their adopted ADU ordinances for review by the HCD within 60 days of adoption.
In 2024, the California Legislature adopted a group of housing bills aimed at addressing the housing crisis. The legislature approved, and the Governor signed, Senate Bill (SB) SB 477 (Chapter 7, Statutes of 2024), Assembly Bill (AB) AB 2533 (Chapter 834, Statutes of 2024), and SB 1211 (Chapter 296, Statutes of 2024) into law that, among other things, amended Government Code Section 66310 through 66342 to impose new limits on the City to regulate ADUs and JADUs. In adopting these new regulations, the State Legislature determined that these changes are a matter of statewide concern, rather than a municipal affair. This determination allows the State to apply these new ADU laws to charter cities . The State Legislature intends to reduce regulatory barriers and costs, streamline the approval, and expand the pote ntial capacity for ADUs and JADUs in response to California's housing shortage.
The City Council adopted a revision to the City’s 6th Cycle (2022-2029) Housing Element on September 24, 2024, and submitted it to HCD for recertification . This recertification triggered HCD’s review of the City’s ADU regulations.
On October 1, 2024, HCD completed its review of the ADU ordinance and issued a letter titled “Review of Newport Beach’s Accessory Dwelling Unit (ADU) Ordinance under State ADU Law (Gov. Code, §§ 66310 – 66342)” (HCD Letter) stating that the City’s current ADU ordinance does not comply with State ADU Law governing ADUs. The HCD Letter is included as Exhibit “C” to Attachment No. PC 1. The HCD letter outlined the various components of the City’s ADU ordinance that HCD believes are not in compliance with State ADU Law. In its letter, HCD directs the City to update its ADU Ordinance to comply with State ADU Law or provide findings as part of a resolution that justify why the City’s existing Ordinance is consistent with State ADU Law. If the City fails to take either course of action, HCD will notify the City and potentially the California Office of the Attorney General that the City is in violation of State ADU Law.
On October 25, 2024, the City of Newport Beach Community Development Department issued a letter to HCD in response to their review of the ADU ordinance. In its letter, the City affirmed its commitment to addressing the required revisions to the City’s ADU Ordinance to comply with current State ADU Law (i.e. SB 477, AB 2533, and SB 1211).
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Proposed Amendments
In order to address comments received by HCD and bring the City’s ADU ordinance into compliance with State ADU Law, the City of Newport Beach needs to adopt ordinances revising Sections 20.48.200 (Accessory Dwelling Units) and 21. 48.200 (Accessory Dwelling Units) of the Newport Beach Municipal Code (NBMC). Although the titles of said sections reference ADUs, these sections also govern JADUs.
Summary of Changes to State ADU Laws
SB 477 (Chapter 7, Statutes of 2024) made changes to the numbering of the sections of Government Code for State ADU and JADU Laws. The bill went into effect on March 25, 2024.
AB 2533 (Chapter 834, Statutes of 2024) made various changes to State ADU Law (Gov.
Code, § 66332) regarding unpermitted ADUs , which the City currently implements through its existing SAFE ADU Program. The City’s SAFE ADU program is an initiative designed to help homeowners legalize existing unpermitted ADUs constructed before January 1, 2020 . The program helps homeowners address potential code enforcement issues, liability concerns, and safety risks associated with unpermitted units. This bill went into effect on January 1, 2025 , and the City’s SAFE ADU program has already been updated to comply with the provisions.:
SB 1211 (Chapter 296, Statutes of 2024) made various changes to State ADU Law (Gov.
Code, §§ 66313, 66314, 66323) with regard to replacement parking and special streamlined units referred to as “ 66323 Units” (described below) on lots with existing or proposed multifamily dwellings. SB 1211 went into effect on January 1, 2025. This bill:
• Defines “livable space” as a space in a dwelling intended for human habitation, as the term appears in Government Code sections 66313, subdivision (e), and 66323, subdivision (a)(3)(A).
• Specifies that uncovered, off -street parking spaces demolished in conjunction with the construction of an ADU do not need to be replaced.
• Authorizes up to eight detached ADUs on a lot with an existing multifamily dwelling (previously limited to two), provided that the number of ADUs does not exceed the number of existing units on the lot.
• Prohibits a local agency from imposing any objective development standards on 66323 Units that are not authorized by the provisions of Government Code section 66323, subdivision (a).
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SB 1211 established “66323 Units” under Government Code Section 66323 and clarifies four categories of ADUs (and JADUs) that must be approved ministerially and are not subject to standards set forth in Government Code Sections 66314 through 66322 or the NBMC (i.e. “66323 Units”). These 66323 Units do not have to comply with the City’s objective development and design standards , such as height, setbacks, and size limits.
These ADUs must still comply with building code and health and safety requirements.
Below is a breakdown of the four categories of 66323 Units and the minimal standards that cities are allowed to apply to them.
1. Single-Unit Internal ADUs and JADUs
• One ADU per lot is permitted within the converted space of a proposed or existing single-unit dwelling or accessory structure.
• No additional setbacks are required beyond that of the existing or proposed structure and any applicable building and safety minimum requirements. • ADUs converted from accessory structures are eligible for a 150 square - foot expansion to accommodate ingress and egress.
• One JADU per lot is permitted within the proposed or existing space of a single-unit dwelling or accessory structure.
2. Single-Unit Detached ADUs
• One detached new construction ADU is permitted on lots with an existing or proposed single-unit dwelling.
• 4-foot side and rear yard setbacks are allowed.
• The maximum unit size is 800 square feet.
• Height limitation of 16 or 18 feet depending on conditions specified in Government Code Section 66321, subdivision (b)(4).
3. Multi-unit Converted ADUs
• Conversion ADUs may be created within the portions of existing multi -unit structures that are not used as livable space.
• At least one ADU is within an existing multi-unit dwelling and up to 25% of the existing multi-unit dwelling units.
4. Multi-unit Detached ADUs
• Two detached ADUs are allowed on a lot with a proposed multi-unit dwelling, or up to eight detached ADUs are allowed on a lot with an existing multi-unit dwelling, not to exceed the number of existing units on the lot. • 4-foot rear and side yard setbacks are allowed.
• Height limits of 16, or 18 feet depending on conditions specified in Government Code Section 66321, subdivision (b)(4).
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HCD Letter
Table 1 below summarizes the comments received by HCD as part of their review of the City’s ADU ordinance (i.e. HCD Letter) and identifies how the City proposes to address those comments . The comments received by HCD are intended to guide the City in addressing the State ADU law changes that went into effect on March 27, 2024, and January 1, 2025. As requested by HCD , the draft resolution ( Attachment No. PC 1) includes findings addressing why certain changes requested by HCD are not necessary to comply with State ADU Law. All other suggested changes have been made in the proposed ordinance (Attachment No. PC 3). Redlines of Sections 20.48.200 and
21.48.200 of the NBMC addressing the HCD Letter are included as Attachments No. PC 3 and PC 4.
Table 1. HCD Letter Summary
Comment # HCD Comment Proposed Revision
Explanation
1 Remove reference to
“legally established”
from the ordinance.
“Required to correct legally
established nonconforming
zoning condition(s), building
code violation(s), and/or
unpermitted structure(s)
that do/does not present a
threat to public health and
safety…”
State ADU Law prohibits cities
from denying a permit for an
ADU/JADU to correct
nonconforming violations
whether or not the nonconformity
was legally established.
2 Add note of the
exception for units
under Government
Code Section 66323.
“…units as provided in this
section and California
Government Code Section
66323…”
66323 Units are protected and
not subject to additional
development standards outside
of State ADU Law.
3 Remove the restriction
on the combination of
66323 Units that can
be constructed.
“Maximum Number of
Accessory Dwelling Units
Allowed. Unless precluded
by Government Code
Section 66323 Tthe
following”
66323 Units are protected and
multiple ADUs/JADUs may be
built on a single property,
therefore, a reference to State
ADU Law is included.
4 Remove the restriction
on parcels for multi-unit
“lots” to align with the
Building Code
definition.
No change required.
The NBMC already defines “lot”
for the purpose of a multi-unit
development. The building code
definition of “lot” is not codified in
State ADU Law and therefore
not applicable.
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5 Remove requirements
that ADUs conform to
underlying zoning
standards, and ‘other’
unspecified provisions
not in the ADU
ordinance.
Development Standards.
Except as modified by this
subsection or authorized by
California Government
Code Section 66317 and
66323, an accessory
dwelling unit…”
State ADU Law allows a local
jurisdiction to impose objective
standards on ADUs and JADUs,
with the exception of ADUs and
JADUs that are specifically
protected under Section 66323
of the Government Code (i.e.
66323 Units).
6 Specify that building
and demolition
permits are reviewed
and issued
concurrently for JADUs
that replace detached
garages.
No change required.
This section relates to the
replacement of existing
detached garages with ADUs.
JADUs are not permitted to
replace detached garages,
therefore, this comment does not
apply.
7 Clarify the height
limitations to ensure
building heights and
stories for attached
ADUs are not
restricted.
No change required.
The City’s existing ADU
Ordinance is more permissive
than State ADU Law. Imposing
the requested amendment would
impose a height limit that is
lower than currently permitted by
the underlying zoning districts.
8 Add note of the
exception for units
under Government
Code Section 66323 to
not limit the size of
detached ADU on lots
with multifamily
dwellings.
“Development Standards.
Except as modified by this
subsection or authorized by
California Government
Code Section 66317 and
66323, an accessory
dwelling unit…”
66323 Units are protected and
not subject to additional
development standards outside
of State ADU Law.
9 Cite the California
Building Code to
regulate the minimum
size for ADUs and
JADUs.
“…minimum size of an
accessory dwelling unit or
junior accessory dwelling
unit shall be at least that of
an efficiency unit or as
required by the California
Building Code (CBC).”
JADUs may be smaller in some
cases than an “efficiency unit” as
defined by the CBC. Therefore,
a reference to the CBC is
included to determine the
minimum size required for a
JADU.
10 Exclude JADUs from
replacement parking
requirements.
“No Replacement Parking
Necessary. Outside the
coastal zone, when a
garage, carport, or covered
parking structure covered
or uncovered parking space
is demolished in
conjunction with the
construction of an
accessory dwelling unit at
the same location or
converted to an accessory
dwelling unit, those off-
Replacement parking for JADU
garage conversions is not
required per Government Code
Section 66334, therefore, a new
sentence is introduced to
provide clarity. In addition, no
changes to Title 21 are
proposed given that replacement
parking in the coastal zone is
required for both ADUs and
JADUs (as permitted by State
Law).
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street parking spaces are
not required to be replaced.
Outside the coastal zone,
when a garage is
demolished in conjunction
with the construction of a
junior accessory dwelling
unit at the same location or
converted to a junior
accessory dwelling unit,
that off-street parking space
is not required to be
replaced. Accessory
dwelling units and or junior
accessory dwelling unit
shall not displace required
uncovered parking spaces
Refer to Section
21.48.200(F)(8)(e) for
replacement parking in the
coastal zone.”
11 Amend to allow for the
sale or separate
conveyance of ADUs
established by a non-
profit.
“No Separate Conveyance.
Except as authorized in
California Government
Code 66341,. Aan
accessory dwelling…”
There is a very narrow exception
in State ADU Law that requires
cities to allow separate
conveyance (i.e. separate sale)
of ADUs for non-profits.
12 Remove owner
occupancy restrictions
for ADUs.
No change required.
This revision is not necessary
given the existing ADU
ordinance does not require
owner occupancy of ADUs, and
specifies that owner occupancy
is only required for JADUs.
13 Remove the
requirement of a deed
restriction on ADUs.
“Prior to the issuance of a
building and/or grading
permit for an accessory
dwelling unit and/or junior
accessory dwelling unit, the
property owner shall record
a deed restriction with..”
and
“This deed restriction shall
remain in effect so long as
the accessory dwelling unit
and/or junior accessory
dwelling unit exists on the
lot.”
Deed restrictions will no longer
be required for ADUs. State ADU
Law only allows deed restrictions
to be required for JADUs.
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HCD Review
Government Code Section 66326 requires the City to submit the ordinance to the State Department of Housing and Community Development (HCD) within 60 days of adoption.
Should the City Council approve the proposed ordinance to amend Title 20 , staff will forward the o rdinance to HCD for review. If HCD finds the ordinance does not comply with the new ADU laws, HCD will notify the City. Should this occur, the City would have 30 days to either amend the ordinance or adopt additional findings that explain the reason the ordinance complies with the statute. Since the amendment to Title 21 requires CCC approval, the ordinance amending Title 21 will be submitted to HCD after the CCC LCPA process is complete.
General Plan Consistency
The law states that ADUs shall be deemed an accessory use and shall not be considered to exceed the allowable density for the lot upon which it is located and shall be deemed a residential use that is consistent with the existing general plan and zoning district for the lot. Therefore, no amendments to the General Plan are required.
Adopting an ordinance consistent with Government Code Sections 66310 through 66342 ensures and reinforces the commitment that the City has made to promote and incentivize ADU growth via the established Policy Action 1H: Accessory Dwelling Unit Construction of the City’s 2021-2029 Housing Element.
Local Coastal Plan
Similar to the Zoning Code, the Implementation Plan of the Local Coastal Program (LCP) currently regulates ADUs inconsistent with State ADU law. Therefore, subsequent to City Council adoption of this Zoning Code Amendment, staff will submit corresponding amendments (Attachment No. PC 4) to the LCP for review and approval of the CCC. In accordance with CCC Guidance Memorandums, any eligible projects located in the Coastal Zone that qualify for a Coastal Development Permit (CDP) exemption will be processed consistent with the Zoning Code. Projects that do not qualify for an exemption cannot be processed until the LCP Amendment is approved and adopted.
By adopting an ordinance amending the Local Coastal Program, the City will continue to implement Local Coastal Program Policy 2.7-5, which encourages consistency with Government Code Sections 66310 through 66342 for the purposes of increasing the supply of lower -cost housing in the coastal zone that meets the needs of existing and future residents, while respecting the architectural character of the existing neighborhoods and in a manner that is consistent with the Local Coastal Program.
Reducing the Barriers to the Creation of Housing
The City Council adopted a policy (Council Policy K-4) to consider new and flexible land use and zoning regulations and strategies in order to reasonably and practically 34-56
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accommodate the ambitious State housing mandate while protecting the character and maintaining a quality of life that makes Newport Beach a special place to live, work, and visit.
One of the ways Council Policy K-4 achieves that goal is by encouraging the development of accessory dwelling units and junior accessory dwelling units as an important strategy to accommodate future growth and is an integral strategy to help meet the City’s Regional Housing Needs Allocation (RHNA) of 4,849 units. Adopting an ordinance to address State ADU Law revisions is consistent with Council Policy K -4 which encourages the development of accessory dwelling units as an important strategy to accommodate future growth and is an integral strategy to help meet the City’s RHNA.
Alternatives
The Planning Commission may recommend revisions to the draft ordinance provided the revisions are consistent with State ADU law and are not more restrictive than the State’s regulations pertaining to ADUs and JADUs . Noncompliance with State ADU law would render the City’s ADU ordinance null and void, thus requiring the City to utilize the State’s more lenient ADU standards until the City modifies its regulations appropriately.
Environmental Review
The project is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.17 and CEQA Guidelines Section 15282(h), which states that the adoption of an ordinance regarding second units to implement the provisions of Sections 66310 through 66342 of the Government Code are exempt from the requirements of CEQA. Similarly, the ministerial approval of ADUs would not be a project for CEQA purposes, and environmental review would not be re quired prior to approving individual applications . In addition, pursuant to CEQA Guidelines Section 15265(a)(1), local governments are exempt from the requirements of CEQA in connection with the adoption of a Local Coastal Program.
Public Notice
Notice of this hearing was published in the Daily Pilot as an eighth page advertisement at least 20 days before the scheduled meeting, consistent with the provisions of the Municipal Code and State Law. The item also appeared on the agenda for this meeting, which was posted at City Hall and on the City website. Additionally, notice was sent to all persons and agencies on the Notice of the Availability mailing list for LCPAs.
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Prepared by: Submitted by:
Oscar Orozco, Associate
Planner
LAW/oo
ATTACHMENTS
PC 1 Draft resolution recommending approval of Zoning Code Amendment and Local Coastal Program Amendment (PA2025-0093)
PC 2 Accessory Dwelling Unit Ordinance Summary Matrix
PC 3 Title 20 (Planning and Zoning), proposed redlined code changes PC 4 Title 21 (Local Coastal Program Implementation Plan), proposed redlined code changes
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