CITY COUNCIL STAFF REPORT
Meeting Date: September 12, 2022
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: PUBLIC HEARING AND INTRODUCE ORDINANCE NO. ___
AMENDING ZONING ORDINANCE REGULATIONS FOR URBAN LOT
SPLITS (SECTION 18.20.097) AND TWO-UNIT PROJECTS (SECTION
18.20.105) RELATED TO SENATE BILL 9 (SB 9) AND DETERMINING
THE ORDINANCE TO BE EXEMPT FROM CEQA
SYNOPSIS
Introduce an ordinance amending the City of Pleasant Hill’s zoning regulations for urban lot splits and two-unit projects on single-family residential lots in response to Senate Bill 9 (“SB 9”). The proposed amendments would replace the City’s current urgency ordinance adopted by City Council in December 2021. The Planning Commission reviewed the proposed ordinance amendment and recommended approval to the City Council.
DISCUSSION
Background
In 2021, the California Legislature approved, and the Governor signed into law, several housing bills, including SB 9, the California Housing Opportunity and More Efficiency (“HOME”) Act. SB 9 requires that the City both: (1) allow a property owner to split roughly in half any qualifying lot in a single-family residential zone, so long as resulting lots are at least 1,200 sf in area, and (2) allow a property owner to develop up to two dwelling units on any lot in a single-family residential zone. Though the HOME Act imposes only a handful of restrictions and allows local governments to impose a few more, it requires cities to approve these SB 9-qualifying projects ministerially without any discretionary review.
Property owners can utilize both of the law’s provisions, meaning that an urban lot split may be followed with a two-unit project on each of the two newly subdivided lots, which could result in four total dwellings on what was formerly one single-family residential lot — all with only ministerial approval.
The City adopted an urgency ordinance in December 2021 in response to SB 9 that implements the ministerial approval process for urban lot splits and two-unit projects with objective development standards for each (Attachment D). At the time of adoption, City staff noted that additional refinements would likely be necessary and that a permanent ordinance would be required, at which point additional modifications and refinements could be considered. These proposed modifications have been included in the Draft Ordinance as Attachment A (strikeout version) and Attachment B (clean version).
To date, the City has not yet processed any applications applicable to SB 9; however, the City has received numerous inquiries on the provisions and process.
On May 24, 2022, the Planning Commission held a Study Session and provided input to Staff on several discussion topics to assist in drafting the permanent ordinance. Those topics included: unit size; urban lot splits without street frontage; building height limits; objective design standards; and allowing repeated lot splits. The Planning Commission expressed a general desire for more flexibility in the proposed regulations, while still ensuring that impacts to utilities and stormwater were addressed.
Subsequently on July 12, 2022, the Planning Commission reviewed a draft ordinance incorporating their recommendations and expressed support, and ultimately adopted Resolution No. 14-22 recommending that City Council adopt the amendments as proposed (Attachment C).
Analysis
While SB 9 sets specific limitations on the City’s ability to deny urban lot splits and two-unit developments, it does allow the City to impose certain objective zoning, subdivision, and design standards (collectively “objective development standards”) on SB 9-qualifying projects. An objective standard is a regulation that does not involve personal or subjective judgment and that is verifiable by reference to an external and uniform benchmark or criterion (e.g., a height limit).
The analysis below is organized by specific topics, which originated from a combination of items raised by the City Council when the urgency ordinance was initially adopted, discussions with potential applicants and comments received by the Planning Commission. A copy of the proposed draft ordinance is included as Attachment A (strikeout version) and Attachment B (clean version). For clarity, Staff has also highlighted any section of the draft ordinance (Attachment A) that goes beyond the minimum requirements of SB 9.
Quantity of Units: The following requirements related to the number of units are contained in the draft ordinance and comply with SB 9 provisions.
Urban Lot Split: A lot that is created from an urban lot split may contain no more than two dwelling units of any kind, including, but not limited to, a primary dwelling unit, an ADU, or a JADU.
Two-Unit Developments: A lot that is not created by an urban lot split may contain two primary dwelling units, plus any ADU or JADU that must be allowed pursuant to state law and the City’s ADU ordinance. This results in a maximum total of four units when the primary dwelling units are detached, and a maximum total of five units when the primary dwelling units are attached.
Unit Size Allowance: The current urgency ordinance establishes a maximum size of 800 square feet per dwelling unit for both urban lot split and two-unit projects – state law requires cities to approve units measuring at least 800 square feet. This would apply regardless of the size of the existing or newly created lots. The Planning Commission, having noted a desire to provide more flexibility in unit size, recommends the amended ordinance reference the underlying development regulations of the corresponding zone (setbacks, lot coverage, etc.) to determine the maximum size of the dwelling units with the following clarifications:
If an urban lot split creates a lot(s) whose size falls between the minimum lot size standards of two corresponding single-family residential zones, the default zoning applicable will be that of the conforming zoning designation (i.e., the smaller of the two zones; for example, an 8,000-foot lot conforms to the minimum lot size of the R-7 zone, but would be considered nonconforming in the R-10 zone) Any lot resulting from an urban lot split with a resulting site area less than 6,000 square feet will be subject to the development standards of the R-6 zoning district as it is the City’s smallest single-family residential zone.
In all circumstances, the minimum primary dwelling unit size is 800 square feet and the underlying development standards cannot physically preclude the construction of two units of at least 800 square feet in floor area.
The following examples illustrate three potential scenarios:
Scenario 1: If a lot located in the R-7 Single Family zone (7,000 square-foot lots) is subdivided into two 3,500 square-foot lots, each lot would be subject to the development standards of the R6 Zone. The R-6 Zone allows a maximum FAR of 0.40 and a maximum lot coverage of 35 percent. Under the existing zoning, the maximum permitted gross floor area on each site would be 1,400 square feet with a resulting lot coverage of 1,225 square feet. In this same example, if a two-unit project were then pursued on each newly subdivided lot, then SB 9 would require the City to allow two 800-square-foot dwelling units, for a total of 1,600 square feet of gross floor area, on each new lot. See image below:
Scenario 2: If a lot located in the R-7 Single Family zone did not undertake an urban lot split, a maximum of two primary dwelling units, plus an ADU and/or JADU could be constructed. The development would be subject to the R-7 development standards, which allow a maximum 35% lot coverage (or 2,450 square feet) and 0.40 FAR (or 2,800 gross square feet). In this scenario, the property owner may choose to construct two dwelling units larger than 800 square feet. Staff notes that, in total, the City would be required pursuant to state law to allow up to two 800- square-foot dwelling units, plus one 800- square-foot ADU, and one 500-square-foot JADU, for a total of 2,900 square feet of gross floor area. See image below:
Scenario 3: Using the same existing conditions on Scenario 2, a property owner could also choose to construct two attached primary dwelling units larger than 800 square feet each (duplex). This would change the classification of the development to multifamily, which would then require the City to allow up to two 800-square-foot-minimum primary dwelling units, plus two 800-square-foot ADUs, and at least one ADU converted from existing interior non-livable space, for a total 2,900-plus square feet of gross floor area. See image below:
Additionally, Staff advises that many lots could have a large, existing primary residence, which, per state law, may remain. In this case, the City would still be required to allow a second, 800- square-foot primary dwelling unit on the same lot as an existing single-family home.
Setback Requirements: The current urgency ordinance requires that new primary dwelling units comply with the setback standards outlined in the underlying or corresponding zone (based on the newly created lot sizes for urban lot split projects). However, the setback requirements must be reduced if they otherwise would preclude the development of up to two 800-square-foot units with a minimum of a four-foot side and rear setback. Additionally, no setback is required for an existing legally established structure or for a new structure that is constructed in the same location and to the same dimensions as an existing legally established structure. The proposed draft ordinance maintains the same setback requirements.
Urban Lot Splits without Street Frontage: The provisions of SB 9 require that a lot must have access to, or adjoin the public right-of-way in order to be subdivided as an urban lot split. The City’s current urgency ordinance prohibits the subdivision of lots that do not directly adjoin the public right-of-way, and requires that a lot created through an urban lot split have a minimum 20-foot-wide frontage on the public right-of-way. This provision therefore precludes lot splits on most properties without, or with minimal street frontages (e.g., double deep lots, flag lots, etc.).
The Planning Commission is recommending the draft ordinance allow more flexibility with this provision and proposes to eliminate the requirement that a lot must directly adjoin the public right-of-way and result in a 20-foot-wide frontage on that public right-of way once subdivided.
Instead, the Commission that the proposed language mirror the provisions of SB 9 and require that a lot have access to, or adjoin the public right-of-way. Additionally, access to all new lots and dwelling units must satisfy County fire and emergency access requirements.
Building Height Limits: The current urgency ordinance limits SB 9 units to a height of 16 feet, which largely results in single-story dwellings. This deviates from the City’s zoning ordinance, which limits the maximum height in all single-family residential districts to 35 feet and 2.5 stories. Allowing two stories on smaller lots results in more flexibility, and may encourage increased setbacks and open space, whereas a single-story structure will encounter coverage limitations. Staff has drafted the ordinance, and the Planning Commission recommends eliminating the height limitation of 16 feet and allowing all SB 9-qualified units to comply with the maximum height requirements of the zone (35 feet), but with a two-story maximum.
Objective Design Standards: Since the adoption of the existing Urgency Ordinance, the City adopted Objective Design Standards applicable to both single-family and multifamily developments (Attachment E). Staff recommends that the proposed ordinance reference the adopted Objective Design Standards, to the extent applicable. Any units developed under the provisions of this ordinance would be subject to the following previously adopted code sections, as referenced in Attachments A and B:
o Section 18.20.040.K – Citywide Objective Design Standards: All single-family residential and multifamily residential development shall comply with Objective Design Standards, as adopted by City Council Resolution.
1. Streamlined Residential Projects. If a proposed residential development project qualifies for streamlined permit review, as determined by State law, the zoning administrator shall review the proposed project to verify compliance with the Objective Design Standards applicable to such projects.
Proposed residential development projects that comply with all Objective Design Standards shall be processed ministerially. Qualifying projects that do not comply with the Objective Design Standards shall be subject to the Architectural Review Permit process, as specified in Chapter 18.115 of this Title.”
Compliance with the objective design standards could not preclude the construction of up to two 800-square-foot-minimum dwelling units on a single lot.
Allowing Repeated Lot Splits: The current SB 9 provisions and the City’s urgency ordinance do not allow subsequent subdivision of lots originally created under SB 9. The intent is to limit the number of times a lot split could occur, particularly as the lot sizes become smaller, which may ultimately lead to a change in the look and feel of a neighborhood. The Planning Commission recommends that the permanent ordinance maintain this requirement to prohibit repeated lot splits.
Urban Lot Split Compliance with Stormwater and Utility Standards: At the Study Session meeting, the Planning Commission voiced concerns with the City’s ability to regulate stormwater runoff and other utility requirements for SB 9-related developments. Staff notes that SB 9 restricts the City’s ability to require the construction of offsite improvements in connection with an urban lot split project. The City can require, however, that projects comply with any onsite improvements related to storm drainage and utilities. The City’s Subdivision regulations outline these requirements (Section 17.35.020 Improvements required). For example, the City’s subdivision regulations require that stormwater runoff from a subdivision be collected and conveyed by an approved storm drain system to protect neighboring properties. The City also has a “no-net runoff” policy that would apply to these projects and could require developments capture and convey all surface water on their own property. Staff has included, and the Planning Commission supports, language in the draft ordinance that references this code section and is proposing that all units be subject to the required on-site improvements, regardless of size.
Public Comments
All public comment received to date has been included as Attachment G.
NECESSARY FINDINGS
To amend zoning ordinance sections 18.20.097 (Urban Lot Splits) and 18.20.105 (Two Unit Projects), pursuant to PHMC Section 18.125.050, the City Council is required to make findings as follows:
1. The code amendments shall be consistent with the policies of the General Plan;
2. The code amendments shall be consistent with the purpose of the Zoning Ordinance, which is to protect and promote the public health, safety and general welfare and implement the policies of the General Plan, more specifically:
a. Provide a precise guide for the physical development of the City to preserve the character and quality of the residential neighborhoods, foster convenient, harmonious and workable relationships among land uses and achieve the arrangement of land uses described in the General Plan. b. Promote the economic stability of existing land uses. c. Prevent excessive population densities and overcrowding of land and buildings. d. Ensure the provision of adequate open space for light, air and fire safety. e. Ensure that service demands of new development will not exceed the capacities of existing streets, utilities or public services.
The proposed ordinance would be consistent with the following General Plan goals and policies (see Attachments A and B):
a. Community Development Goal 1: Preserve and enhance residential neighborhoods. b. Housing Element Goal 2: Encourage a variety of housing. c. Housing Element Goal 5: Increase opportunities to develop safe, sanitary and decent housing.
CEQA
The City, as the lead agency, has determined that the proposed activity is exempt from California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the 2022 Guidelines for the Implementation of CEQA. The City has determined with certainty that the proposed activity will not have a significant effect on the environment as the proposed design and development standards, when applied to relevant projects, will undergo separate CEQA review.
Additionally, under California Government Code sections 65852.21, subdivision (j), and 66411.7, subdivision (n), the adoption of an ordinance by a city or county implementing the provisions of Government Code sections 66411.7 and 65852.21 regulating urban lot splits and two-unit projects is statutorily exempt from the requirements of the CEQA. Therefore, the proposed ordinance is statutorily exempt from CEQA in that the proposed ordinance implements these new laws enacted by SB 9.
FISCAL IMPACT
Staff anticipates minimal fiscal impact because applicants remain responsible for the cost of processing the applicable ministerial permits required to create an urban lot split or construct two units on a single-family zoned property, as well as any impact fees. The City will continue to receive development permit fees, building permit fees, and development impact fees such as park land dedication and traffic mitigation fees for these projects.
PUBLIC CONTACT
Public contact was made through posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center and at the Pleasant Hill Police Department.
Notice of the meeting was also provided in the East Bay Times Newspaper published on August 12, 2022 and September 1, 2022, displayed on an A-Frame at the Police Station, displayed on the City Hall Changeable Message Board Sign, and on the City’s web page. The agenda and staff report are posted on the City’s web page.
RECOMMENDED CITY COUNCIL ACTION
Introduce the ordinance.
ALTERNATIVES TO RECOMMENDED ACTION
1. Introduce the ordinance with modifications;
2. Continue the item to a future date with direction to staff; or
3. Do not introduce the ordinance.
ATTACHMENTS
A Proposed Updated Draft Ordinance (strikeout version)
B Proposed Updated Draft Ordinance (clean version)
C Planning Commission Resolution 14-22
D Existing Urban Lot Split and Two Unit Project Ordinance (Sections 18.20.097 and
18.20.105)
E City Wide Residential Objective Design Standards
F Public Hearing Notice
G Public Comments
Prepared by: Haley Croffoot, AICP, Senior Planner
Approved by: Ethan Bindernagel, Acting City Manager