AGENDA ITEM 6.A
Discussion:
Accessory Dwelling Unit (ADU) Amnesty Program
CITY COUNCIL
Background
Per Program 2.3 - "Accessory Dwelling Unit Development" of the Housing Element, the City recognized that Accessory Dwelling Units (ADUs) provide a unique opportunity to create affordable units in residential areas, particularly for elderly residents.
Above and beyond State ADU law, in Program Action 2.3 of Housing Element the City committed to further facilitate the development of ADUs by creating an ADU subsidy program to create affordable housing for extremely-low and low-income households.
Furthermore, the City committed to spending $250,000 during this 2021-2029 Housing Element cycle on ADU-related incentives.
Why an Amnesty Program
ADUs to count towards the City's Regional Housing Needs Allocation (RHNA) The City’s RHNA for this Housing Element Cycle is 454 units of housing production through 2029, including 85 affordable to low-income households and 145 affordable to very low- income households
Background
ADUs are not automatically considered affordable to low-income households.
All Cities in California must submit a Housing Element Annual Progress Report (APR). The APR must include a reasonable methodology to demonstrate the level of affordability.
The affordability of an ADU can be demonstrated by a deed restriction, proposed rents or sales prices, or a survey of comparable units that show what income level the ADU would be affordable to.
Affordable Housing
Southern California Associate of Governments (SCAG): Regional ADU Affordability Analysis - Riverside/San Bernardino County percentages:
Staff will be working with HCD to use the same percentages for reporting ADUs in the Housing APR for 2024.
Extremely Low
15.0%
Very Low
7.7%
Low
34.8%
Moderate
34.8%
Above Moderate
7.7%
Background
Only building permits are used for the purposes of determining progress towards RHNA.
In other words, a second unit (potentially and ADU) must have a building permit to count towards our RHNA.
How we get there? - Through and ADU Amnesty Program
The overall goal of an Amnesty Program will be to bring second units constructed without permits into compliance so that they count towards the City’s RHNA.
How will this be achieved? By using the City of Norco’s ADU ordinance/requirements and the building permit process.
ADU Amnesty Program Defined
In a nutshell – is a program with incentives to encourage the legalization of second units constructed without a building permit through the ADU process.
Will support the City’s goal to create affordable housing Will promote legalization of second units while ensuring safe, healthy and habitable living conditions, resulting in an increased number of legal dwelling units within the Norco community.
Amnesty Program Recommendations:
Program Incentives:
Anonymous/confidential pre-application consultations.
Financial incentives.
Code Enforcement Delays
Professional guidance on legalization
.
Amnesty Program Recommendations:
Program Requirements:
Construction date cut-off requirement.
Occupancy requirement.
Program checklist
Additional Consideration: the program should state incentives for new covenant restrictions especially for new, 55-year affordability ADU covenants. Incentives could include:
Waiver of all permit and DIF fees;
$25,000 mini-grant; and
Requirements for annual review for compliance.
.
Closing
Recommendations for the creation of an ADU Amnesty Program were presented to the Planning Commission on May 10, 2023.
The logistics of few waivers and funding sources (i,e, state grants, general fund, existing housing funds) will be evaluated by the City Council, once it is determined which fee waivers are warranted.
Once established, the level of permit waivers or other incentives will not exceed a cost of $250,000 for the duration of the program. Additional funding could be sought should State and or County grant programs become available.
ADU Amnesty Program