Section 2. Section 23.12.030.1 of Chapter 23.12 of the Santa Cruz Municipal Code regarding Division of Land – Fewer Than Five Parcels – Maps Required is hereby amended to read as follows:
23.12.030.1 DIVISION OF LAND – FEWER THAN FIVE PARCELS – MAPS
REQUIRED
A tentative parcel map and a parcel map shall be required for all divisions of land which create fewer than five parcels, except for:
(a) Divisions of land created by short-term leases (terminable by either party on not more than a thirty-day notice in writing) of a portion of an operating right-of-way of a railroad corporation defined as such by Section 230 of the Public Utilities Code; provided, however, that upon a showing made to the city engineer, based upon substantial evidence that public policy necessitates such a map, this exception shall not apply; (b) Lot-line adjustments, provided:
(1) The parcels resulting from the lot line adjustment will conform to the general plan, any applicable specific plan, any applicable coastal plan, zoning and building ordinances; and
(2) A greater number of parcels than originally existed are not created by the lot line adjustment.
(c) Creation of no more than four condominium parcels for accessory dwelling units and their associated primary dwellings pursuant to Section 24.16.165, in which case a tentative parcel map shall not be required, but a parcel map shall be required.
The zoning administrator shall review the application for a lot line adjustment and shall not impose conditions or exactions on approval except to conform to the general plan, any applicable specific plan or area plan, any applicable coastal plan, zoning or building ordinances, and except to facilitate the relocation of existing utilities, infrastructure, or easements.
No tentative map, parcel map, or final map shall be required as a condition of approval of a lot line adjustment. The lot line adjustment shall be reflected in a deed, which shall be recorded. No
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record of survey shall be required for a lot line adjustment unless required by Section 8792 of the state Business and Professions Code.
Section 3. Section 23.37.020.1 of Chapter 23.37 of the Santa Cruz Municipal Code regarding Provisions for Conversions of Existing Structures – Vacancy Requirements - Exceptions is hereby amended to read as follows:
23.37.020.1 PROVISIONS FOR CONVERSIONS OF EXISTING STRUCTURES – VACANCY REQUIREMENTS – EXCEPTIONS.
(1) An existing residential structure may be converted to a community housing project and be exempt from Section 23.37.020(a) if the structure is converted and sold to at least sixty-seven percent of the existing tenants. In such cases, proposals containing five or more units shall provide at least twenty percent of the total units for purchase by households of below-average income pursuant to Section 24.16.050 of the Zoning Ordinance. (2) An existing residential stock cooperative proposed for conversion to a condominium is exempt from Section 23.37.020.
(3) A building which is listed on the city historic building survey or which is a contributing building located in a city historic district. (4) Creation of no more than four condominium parcels for existing accessory dwelling units and their associated primary dwellings pursuant to Section 24.16.165.
Section 4. Section 23.37.050 of Chapter 23.37 of the Santa Cruz Municipal Code regarding Provision for the Protection of Tenants is hereby amended to read as follows:
23.37.050 PROVISION FOR THE PROTECTION OF TENANTS.
Conversion of existing residential structures to community housing projects can be approved in accordance with Section 23.37.030 only if evidence is provided that the following provisions have been implemented:
(a) Each of the tenants of the proposed projects has or will have received all applicable notices and rights now or hereafter required by the State Subdivision Map Act, including written notice of intention to convert, at least sixty days prior to the filing of a tentative map, pursuant to Section 66452.9 of the Government Code; ten days’ written notification that an application for a public report will be available upon request, pursuant to Section 66427.1(a) of the Government Code; written notice of public hearing and the tenant’s right to appear and to be heard on the conversion, pursuant to Section 66451.3 of the Government Code; and copies of the staff report on the tentative map at least three days prior to any hearing or action on such map, pursuant to Section 66452.3 of the Government Code.
(b) Within ten days after the filing of the tentative subdivision map with the city, the subdivider shall cause the following notice to be delivered or mailed by certified or registered mail with
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return receipt requested to the occupant of each occupied apartment being converted to a condominium:
NOTICE TO PRESENT TENANT
This apartment is sought to be converted to a condominium unit and may be subject to future sale. The City of Santa Cruz will provide information about the City’s regulations regarding conversions of apartments to condominiums. (c) At the time of the issuance of the written notice of the intention to convert, the applicant has informed the tenants that a tenants’ association has the right to negotiate for the purpose of converting the structure as a cooperative.
(d) Within ten days of approval of a final map for the proposed conversion, each of the tenants of the proposed project will be given written notification of the approval. (e) Each of the tenants of the proposed project has been, or will be, given one hundred eighty days’ written notice of intention to convert prior to termination of tenancy due to the conversion or proposed conversion. Tenants aged sixty-two or older or handicapped or with minor children have been, or will be given an additional one hundred twenty days in which to find suitable replacement housing. A list of available rental units of similar price shall be provided to each tenant. The provisions hereof shall not alter or abridge the rights or obligations of the parties in performance of their covenants including, but not limited to, the provision of services, payment of rent, or the obligations imposed by Sections 1941, 1941.1 and 1941.2 of the California Civil Code.
(f) Each of the tenants of the proposed project has, or will be given, the right to cancel any existing lease following receipt of the written notice of public hearing by providing thirty-day written notice to the landlord.
(g) Each of the tenants of the proposed project has been, or will be given, notice of an exclusive right to contract for the purchase of his or her respective unit or, in the case of a cooperative, the share controlling the dwelling unit then occupied by the tenant upon the same terms and conditions that such unit will be initially offered to the general public on terms more favorable to the tenant. The right shall run for a period of not less than ninety days from the date of issuance of the subdivision public report, pursuant to Section 11018.2 of the Business and Professions Code, or approval of the application by city if a subdivision public report is not required, unless the tenant has given prior written notice of his or her intention not to exercise the right.
(h) Each of the tenants of the proposed project who resided in the project at the time of the issuance of the notification of intention to convert has been, or will be, offered moving and relocation assistance amounting to one and one-half times the tenant’s monthly rent, except when the tenant has given notice of his or her intention to move prior to issuance of intention to convert. However, if tenant relocation is required due to the conversion of no more than four units consisting of accessory dwelling units and their associated primary dwellings to
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condominiums pursuant to Section 24.16.165, relocation assistance shall be defined as four months’ rent for a person or family of low or moderate income who currently occupies or had occupied the dwelling unit within two years prior to the date of submission of the application for the conversion of the unit(s).
(i) Rents will not be increased from the time of filing of the application for conversion until relocation takes place or until the application is denied or withdrawn. (j) No apartment in a building to be converted shall be leased to any person after the filing of an application with the city for such conversion unless a written notice shall have been delivered to the prospective lessee or tenant in substantially the following form:
NOTICE TO PROSPECTIVE TENANT
This apartment unit is sought to be converted to a condominium unit and may be subject to future sale.
A permanent record of such required notices shall be kept for a period of one year thereafter, such record to include:
(1) A copy of each notice showing the date on which it was delivered or mailed; and (2) Proof of the giving of the notice consisting of:
(A) If delivered, the signature of the person to whom it was delivered acknowledging such delivery; or
(B) If mailed, proof of mailing and return receipt if the receipt was returned to the recipient of the notice
Section 5. Section 24.08.810 of Chapter 24.08 of the Santa Cruz Municipal Code regarding Procedure for Slope Development Permit (Applies Outside the Coastal Zone) is hereby amended to read as follows:
24.08.810 PROCEDURE.
Projects on or within twenty feet of a slope of thirty percent or greater must apply for a slope development permit unless the project is exempted from the need for such a permit under Section 24.14.030(1)(g) or unless the project is a statewide exemption accessory dwelling unit as defined in Part 2 of Chapter 24.16.when approval of a statewide exemption accessory dwelling unit waives this standard pursuant to Section 24.16.141.11. This permit may be granted by the zoning administrator under Section 24.14.030(1)(c) without a hearing if the project is on or within twenty feet of a slope greater than or equal to thirty percent and less than fifty percent and is consistent with the findings in Section 24.08.820, unless the slope development permit is
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accompanied by an application that must be heard by a higher body. Projects on or within twenty feet of a slope of fifty percent or greater must be considered at a public hearing by the zoning administrator and must also be consistent with the findings in Section 24.08.820 unless the project is exempted from such a permit per Section 24.14.030(1)(g).
Section 6. Section 24.10.4060 of Chapter 24.10 of the Santa Cruz Municipal Code regarding New Construction on Sites Abutting Overlay District Boundaries is hereby amended to read as follows:
24.10.4060 NEW CONSTRUCTION ON SITES ABUTTING OVERLAY
DISTRICT BOUNDARIES.
The purpose of the following provisions is to ensure that new development which occurs on the boundaries of a designated Neighborhood Overlay District is compatible and supportive of the public policy goals established for these districts. These provisions apply to all sites abutting a Neighborhood Conservation Overlay District.
In addition to the regulations of the underlying zoning districts, all development, redevelopment, and building expansions, except accessory dwelling units, on sites abutting Neighborhood Conservation Overlay Districts shall comply with the following:
1. Siting: All development shall be designed in a manner that is compatible, to the extent possible, with the existing residential structures in the abutting Neighborhood Conservation Overlay District.
2. Design: All development shall be subject to a Design Permit and must be in compliance with adopted Design Guidelines.
3. Height: While the regulations of the underlying zoning district will control height, all development, redevelopment and building expansions on sites abutting the Neighborhood Conservation District and within 30 feet of existing adjacent Conservation District residential structures, shall transition in height and bulk to create a visually compatible relationship with existing structures. Distinctive architectural features may be allowed additional height if permitted by the underlying district, and if compatible with the neighboring district.
4. Parking: All parking must be screened from view from the first floor of existing residential structures in the Conservation District. This screening may be accomplished by walls, trellises, fencing, and/or landscaping. All development must submit a parking/ landscaping plan.
5. All lighting must be designed so that the light source is not visible from the adjacent residential properties nor are the light rays directed or reflected into or on adjacent residential properties.
Section 7. Section 24.16.020 of Chapter 24.16 of the Santa Cruz Municipal Code regarding Basic On-Site Inclusionary Housing Requirements is hereby amended to read as follows:
24.16.020 BASIC ON-SITE INCLUSIONARY HOUSING REQUIREMENTS.
1. Applicability.
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a. The inclusionary housing requirements defined in this chapter are applicable to all residential developments that create two or more new and/or additional dwelling units or FDU or SRO units at one location by construction or alteration of structures, or would create two or more lots through approval of a parcel map or tentative map, except for exempt residential developments under subsection (2). b. Additional rent above and beyond affordable rent or affordable ownership cost may be permitted for the commercial/work space in a live/work unit at a rent that is determined to be affordable to qualifying households and is proportionate to the amount of commercial space provided. The amount of rent for the commercial portion of the live/work unit shall be agreed upon by the developer, the economic development director, and the planning and community development director. If no agreement can be reached, the city will retain an outside financial consultant to evaluate and determine the allowable affordable rent and establish a methodology for determining future commercial rent levels. The methodology for determining future commercial rent levels shall be defined in every affordable housing development agreement for residential developments that include at least one live/work unit.
2. The following residential developments are exempt from the requirements of this chapter:
a. Residential developments developed pursuant to the terms of a development agreement executed prior to the effective date of the ordinance codified in this chapter; provided, that such residential developments comply with any affordable housing requirements included in the development agreement or any predecessor inclusionary housing requirements in effect on the date the development agreement was executed.
b. Residential developments for which a complete application was filed with the city prior to the effective date of the ordinance codified in this chapter; provided, that such residential developments comply with any predecessor inclusionary housing requirements in effect on the date the application for the residential development was deemed complete.
c. Residential developments if exempted by California Government Code Section 66474.2 or 66498.1; provided, that such residential developments comply with any predecessor inclusionary housing requirements in effect on the date the application for the residential development was deemed complete. d. Residential developments replacing dwelling units that have been destroyed by fire, flood, earthquake, or other acts of nature, so long as no additional dwelling units are created by the residential development; and provided, that such residential developments comply with any inclusionary housing requirements previously applied to the dwelling units being replaced.
e. Accessory dwelling units.
f.e. Rental residential developments with two to four dwelling units.
3. Ownership Residential Developments with Two to Four Dwelling Units. For ownership residential developments that would create at least two but not more than four new or additional dwelling units and/or live/work units at one location, the applicant shall either: (a) make one inclusionary unit available for sale at an affordable ownership cost; (b) make one inclusionary unit available at an affordable rent for low income households; or (c) pay an inlieu fee calculated pursuant to Section 24.16.030(6).
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4. Ownership Residential Developments with Five or More Dwelling Units. For ownership residential developments that would create five or more new or additional dwelling units and/or live/work units at one location, the applicant shall provide inclusionary units as follows:
a. Affordable Housing Requirement for Ownership Residential Developments. In an ownership residential or live/work development, twenty percent of the dwelling units shall be made available for sale to low and moderate income households at an affordable ownership cost.
b. Fractional Affordable Housing Requirement for Ownership Residential Developments – 0.7 Units or Less. If the number of dwelling units required under subsection (4)(a) results in a fractional requirement of 0.7 or less, then the applicant shall either: (i) make one inclusionary unit available for sale at an affordable ownership cost; (ii) make one inclusionary unit available at an affordable rent for low income households; or (iii) pay an in-lieu fee calculated pursuant to Section 24.16.030(6). This subsection (4)(b) applies to the fractional unit only, and whole units shall be provided as required by subsection (4)(a). c. Fractional Affordable Housing Requirement for Ownership Residential Developments – More Than 0.7 Units. If the number of dwelling units required under subsection (4)(a) results in a fractional requirement of greater than 0.7, then the applicant shall either: (i) make one inclusionary unit available for sale at an affordable ownership cost; or (ii) make one inclusionary unit available at an affordable rent for low income households. This subsection (4)(c) applies to the fractional unit only, and whole units shall be provided as required by subsection (4)(a).
d. Rental Units in an Ownership Residential Development. i. In an ownership residential development where all dwelling units are initially offered for rent, an applicant may satisfy the inclusionary requirements by providing rental units as provided in subsection (5).
ii. The rent regulatory agreement required by Section 24.16.045 shall include provisions for sale of the inclusionary units at an affordable ownership cost to eligible households within ninety days from the issuance of the public report by the California Department of Real Estate permitting sale of the units or at termination of the tenant’s lease whichever is later and otherwise in compliance with state law; provided, however, that the sale of the entire ownership residential development from one entity to another shall not trigger the obligation to sell individual inclusionary units. To the extent relocation payments are required by law the applicant shall be wholly responsible for the cost of preparing a relocation plan and making required payments. Any tenant of an inclusionary unit at the time units are offered for sale that qualifies to purchase an inclusionary unit at an affordable ownership cost shall be offered a right of first refusal to purchase the inclusionary unit. At sale appropriate documents shall be recorded to ensure the continued affordability of the inclusionary units at an affordable ownership cost as required by Section 24.16.045.
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5. Rental Residential Developments with Five or More Dwelling Units. For rental residential developments that would create five or more new or additional dwelling units and/or live/work units at one location, the applicant shall provide inclusionary units as follows:
a. Rental residential developments that would create five or more new or additional dwelling units or live/work units at one location shall provide twenty percent of the dwelling units as inclusionary units, which shall be made available for rent to low income households at an affordable rent.
b. SRO Developments. In a rental residential development comprised of SRO units, twenty percent of the single-room occupancy units shall be made available for rent to very low income households at an affordable rent.
c. Fractional Affordable Housing Requirement for Rental Residential Developments with More Than Five Dwelling Units. If the number of dwelling units required results in a fractional requirement of 0.7 or less, then there will be no inclusionary requirement for the fractional unit. If the number of dwelling units required results in a fractional requirement of greater than 0.7, then the applicant shall make one inclusionary unit available at an affordable rent. This subsection (5)(c) applies to the fractional unit only, and whole units shall be provided as required by subsections (5)(a) and (b).
6. The requirements of subsections (3) through (5) are minimum requirements and shall not preclude a residential development from providing additional affordable units or affordable units with lower rents or sales prices than required.
a. By mutual agreement by the developer, the planning and community development director, and the economic development director, the percentage of inclusionary units may be increased in exchange for reduced parking and/or other development requirements.
b. If the developer agrees to make at least forty percent of the residential project available for rent to low income households at a rental cost affordable to low income households, in addition to reduction of development requirements, by mutual agreement by the developer, the planning and community development director, and the economic development director, the city may also provide financial incentives to increase the number of inclusionary units in a project.
7. For the purposes of calculating the number and type of inclusionary units required by this section, rental accessory dwelling units constructed either as part of the initial development or anytime thereafter, shall be subject to the requirements of subsection (5). The inclusionary requirement for accessory dwelling units constitutes a separate inclusionary requirement than that of the primary residential use, such that only accessory dwelling units shall count toward the inclusionary requirement calculation for the accessory dwelling units on the lot, and only the residential units comprising the primary residential use shall count toward the inclusionary requirement calculation for the primary residential use on the lot. The accessory dwelling unit inclusionary requirement shall be met with accessory dwelling units or as otherwise permitted under Section 24.16.030, including, but not limited to payment of the inlieu fee.
8. 7. For purposes of calculating the number of inclusionary units required by this section, any dwelling units authorized as a density bonus pursuant to Part 3 of this chapter shall not be counted as part of the residential development. However, if a developer receives a city rental housing bonus as authorized by Section 24.16.035(4), then all of the dwelling units in
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the project, including the dwelling units authorized as a density bonus, shall be counted as part of the residential development for purposes of calculating the inclusionary units required by this section.
Section 8. Section 24.16.125 of Chapter 24.16 of the Santa Cruz Municipal Code regarding Definitions of Accessory Dwelling Units is hereby amended to read as follows:
24.16.125 DEFINITIONS
The following definitions shall apply to accessory dwelling units throughout the municipal code:
1. “Attached accessory dwelling unit” shall mean an accessory dwelling unit that is attached to the primary dwelling, including to an attached garage.
2. “Conversion accessory dwelling unit” shall mean any accessory dwelling unit created by the conversion of any one permitted, entitled, or legal nonconforming building, or portion of such a building. The conversion accessory dwelling unit may either be converted utilizing the existing structural components of the building or reconstructed within the existing threedimensional physical space occupied by the building. On property developed with multi-unit buildings, only areas that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages, shall be eligible to become conversion accessory dwelling units. The limitation on converting non-livable space shall not apply to a nonconforming duplex on a single-family zoned lot where one unit is converted to an accessory dwelling unit to result in a single-family home and accessory dwelling unit on the site.
Consistent with zoning standards, conversion accessory dwelling units shall be permitted to expand the existing footprint of the building by up to one hundred fifty square feet, and the existing height by up to two feet.
3. “Detached accessory dwelling unit” shall mean an accessory dwelling unit that is separated from any single- or multi-unit building.
4. “Multi-unit building” shall mean a building with two or more attached dwellings on a single lot, including apartment or condominium buildings that contain at least two units.
Accessory dwelling units do not count toward the number of units in this calculation.
5. “New construction accessory dwelling unit” shall mean any accessory dwelling unit that includes new construction and that does not meet the definition and requirements for a conversion accessory dwelling unit.
6. “Non-exempt accessory dwelling unit” shall mean an accessory dwelling unit that does not meet the definition of a statewide exemption accessory dwelling unit.
7. “Primary dwelling” shall mean the dwelling unit with which the accessory dwelling unit or junior accessory dwelling unit is associated.
8. “Single-unit building” shall mean a structurally independent building that contains one dwelling unit. A single-unit building may be the only building on the lot, such as a single-family home or a townhome, or it may be a detached residential condominium or apartment unit on a lot with one or more other dwellings that are not attached to the single-unit building. Accessory dwelling units do not count toward the number of units in this calculation.
9. “Statewide exemption accessory dwelling unit” shall mean an accessory dwelling unit that conforms to any of the following: subsections a-e below. None of the standards in Sections
24.16.141 or 24.16.142 shall apply to a statewide exemption accessory dwelling unit.
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a. One accessory dwelling unit and one junior accessory dwelling unit per lot with a proposed or existing single-unit building, including a single-family dwelling, townhome, or a detached residential condominium or apartment unit on a lot with multiple dwellingssingle-unit buildings, if all of the following apply:
i. The accessory dwelling unit or junior accessory dwelling unit is within the proposed space of a single-unit building or it is within the existing space of a single-unit building or detached accessory building. This type of statewide exemption accessory dwelling unit does not include a building reconstructed within the three-dimensional space of an existing building to be demolished.
ii. If the accessory dwelling unit is within the space of an existing detached accessory building, the accessory dwelling unit may include an expansion of not more than 150 square feet beyond the same physical dimensions as the existing accessory building. An expansion beyond the physical dimensions of the existing building shall be limited to accommodating ingress and egress.
iii. The accessory dwelling unit has an exterior entrance separate from that of the primary dwelling unit.
iv. If the unit is converted within a building with legal nonconforming setbacks, Tthe side and rear setbacks are sufficient for fire and safety. v. The junior accessory dwelling unit complies with the requirements of Section 24.16.170 below.
b. One detached, new construction accessory dwelling unit that meets the following standards:
i. The accessory dwelling unit shall be located on a lot with a proposed or existing single-unit building, including a single-family dwelling, townhome, or a detached residential condominium or apartment unit on a site with multiple dwellingssingle-unit buildings.
ii. The accessory dwelling unit size shall not exceed 800 square feet in floor area.
iii. Interior side yard and rear yard setbacks shall be at least four feet. iv. The accessory dwelling unit shall meet one of the following height limitations as measured to the roof peak:
1. A height of 16 feet; or
2. A height of 18 feet if the accessory dwelling unit is on a lot within one-half of one 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. This height can be increased an additional two feet to twenty feet to accommodate a roof pitch on the accessory dwelling unit that is aligned with the roof pitch of the primary dwelling unit.
v. The accessory dwelling unit may be combined with a junior accessory dwelling unit that meets the standards as described in Section 24.16.170. c. Multiple accessory dwelling units within the portions of existing multi-unit buildings, including a residential condominium or apartment building with two or more attached units, that are not used as livable space, including but not limited to
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storage rooms, boiler rooms, passageways, attics, basements, or garages, if each unit complies with state building standards for dwellings. The number of accessory dwelling units permitted is equivalent to up to twenty-five percent of the number of existing, legally permitted units in the multi-unit building, or one, whichever is greater. When the twenty-five percent limit results in a fraction of a unit, the total number of accessory dwelling units that may be added shall be determined by rounding the fraction up to the next whole number. d. Not more than twoMultiple detached accessory dwelling units that are located on a lot that haswith an existing or proposed multi-unit building, including a residential condominium or apartment building with two or more attached units. Each aAccessory dwelling units shall meet the following standards:
i. The number of permitted detached accessory dwelling units equals:
1. On a lot with an existing multi-unit building, not more than eight detached accessory dwelling units. However, the number of accessory dwelling units allowable pursuant to this clause shall not exceed the number of existing units on the lot.
2. On a lot with a proposed multi-unit building, not more than two detached accessory dwelling units.
i. ii. Rear and interior side yard setbacks shall be at least four feet. If the existing multi-unit building has a rear or interior side yard setback of less than four feet, the existing multi-unit building will not be required to be modified to meet this setback.
ii.iii. The accessory dwelling units shall meet one of the following height limitations as measured to the roof peak:
1. A height of 16 feet; or
2. A height of 18 feet if the accessory dwelling unit is on a lot within one-half of one 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. This height can be increased an additional two feet to 20 feet to accommodate a roof pitch on the accessory dwelling unit that is aligned with the roof pitch of the primary dwelling unit; or
3. A height of 18 feet for a detached accessory dwelling unit on a lot with an existing or proposed multi-unit, multistory building. e. One junior accessory dwelling unit per lot zoned to allow single-family dwellings and with a proposed or existing single-unit building, including a single-family dwelling, townhome, or detached residential condominium or apartment unit on a lot with multiple detached single-unit dwellings. The junior accessory dwelling unit shall comply with the requirements of 24.16.170.
Section 9. Section 21.16.130 of Chapter 24.16 of the Santa Cruz Municipal Code regarding Permit Procedures is hereby amended to read as follows:
24.16.130 PERMIT PROCEDURES.
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1. Accessory dwelling units shall be principally permitted uses within the zoning districts specified in Section 24.16.120 and subject to the development standards in Section 24.16.140 et seq., except that statewide exemption accessory dwelling units shall not be subject to the standards in 24.16.141 and 24.16.142.
2. City shall issue a ministerial building permit for an accessory dwelling unit or junior accessory dwelling unit without discretionary review or a hearing, consistent with the provisions of this chapter and state law, within sixty days of submittal of a complete building permit application, unless provided otherwise. The sixty-day review period shall not apply when:
a. The permit application to create an accessory dwelling unit or junior accessory dwelling unit requires simultaneous approval of a discretionary or building permit associated with creating a new single-unit or multi-unit building on the same lot or parcel.
The City may delay approving or denying the building permit application for the accessory dwelling unit or the junior accessory dwelling unit until the City approves or denies the permit application to create the new single-unit or multi-unit building; or b. When the applicant seeks a delay for any reason, including but not limited to pursuit of a discretionary permit pursuant to Section 24.16.130.8. The period of the delay shall not count toward the sixty-day time period.
3. If the City denies an application to create an ADU or JADU, the City must provide the applicant with comments that include, among other things, a list of all defective or deficient items and a description of how the application may be remedied by the applicant. Notice of the denial and corresponding comments must be provided to the applicant in accordance with the 60- day time period set forth in Section 24.16.130.2 (4) above.
4. Construction of an accessory dwelling unit shall not constitute a Group R occupancy change under the local building code, except as specified under state law. Construction of an accessory dwelling unit shall not trigger a requirement for fire sprinklers to be installed in the existing single-unit or multi-unit building.
5. The City shall not require, as a condition for ministerial approval of a permit application for the creation of an accessory dwelling unit or a junior accessory dwelling unit, the correction of nonconforming zoning conditions, building code violations, or unpermitted structures unless they present a threat to public health and safety and are affected by the construction of the accessory dwelling unit.
6. The City shall not deny a building permit for an unpermitted accessory dwelling unit or unpermitted junior accessory dwelling unit that was constructed before January 1, 2020, due to noncompliance with any requirement of this Part.
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67. The City shall not require, and the applicant shall not be otherwise required, to provide written notice or post a placard for the demolition of a detached garage that is to be replaced with an accessory dwelling unit, unless the property is located within an architecturally and historically significant historic district.
78. An accessory dwelling unit replacing a detached garage shall receive review and issuance of a demolition permit concurrently with the review and issuance of the permit for the accessory dwelling unit.
89. To promote flexibility in siting of accessory dwelling units, nothing in this Part shall prohibit an applicant from pursuing a discretionary permit to construct an accessory dwelling unit on a lot that has a buildable area of at least eight hundred square feet with at least four foot side and rear yard setbacks for an attached or detached accessory dwelling unit with application of all site development standards or waivers as provided in Section 24.16.141 but where the applicant chooses to place the accessory dwelling unit in a location that does not meet such standards or waivers.
Section 10. Section 21.16.140 of Chapter 24.16 of the Santa Cruz Municipal Code regarding General Development Standards is amended to read as follows:
24.16.140 GENERAL DEVELOPMENT STANDARDS.
All accessory dwelling units, both new construction and conversion, shall conform to the following requirements:
1. Number of Accessory Dwelling Units per Parcel.
a. For parcels including a proposed or existing single-unit building, including a singlefamily home, townhome, or multiple detached dwellings, but not including any multifamily structures: One non-exempt accessory dwelling unit shall be allowed on each lot in addition to any statewide exemption accessory dwelling units. Each lot may also include a junior accessory dwelling unit conforming to the standards set forth in Section 24.16.170.
b. For lots developed with an existing or proposedone or more multi-unit buildings, including an apartment or condominium building with two or more dwelling units: no non-exempt accessory dwelling units shall be allowed in addition to any statewide exemption dwelling units. The number of statewide exemption accessory dwelling units allowed on each lot equals:
i. For units converted from existing non-habitable space, as defined in Section
24.16.129.9.c:two new construction and at least one conversion accessory dwelling unit. Up to twenty-five percent of the number of existing dwellings in the multi-unit building may be added as conversion accessory dwelling units. When the twenty-five
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percent limit results in a fraction of a unit, the total number of accessory dwelling units that may be added shall be determined by rounding the fraction up to the next whole number.
ii. For newly constructed units, as defined in Section 24.16.129.9.d:
1. On a lot with an existing multi-unit building, not more than eight detached accessory dwelling units. However, the number of accessory dwelling units allowable pursuant to this clause shall not exceed the number of existing units on the lot.
2. On a lot with a proposed multi-unit building, not more than two detached accessory dwelling units.
2. Existing Development on Lot. One of the following conditions must be present in order to approve an application to create an accessory dwelling unit:
a. One or more single-unit buildings, as defined in Section 24.16.125.8, exists on the lot or will be constructed concurrently and in conjunction with the accessory dwelling unit; b. Consistent with the provisions of Sections 24.16.125.9.c and 24.16.125.9.d, tThe lot contains an existing multi-unit building, as defined in Section 24.16.125.4, or a proposed multi-unit building that will be constructed concurrently and in conjunction with the accessory dwelling unit.
3. Building Code Requirements. The accessory dwelling unit shall meet the requirements of the California Building Standards Code, including the alternative means and methods section as prescribed therein.
4. Large Home Design Permit. The square footage of an accessory dwelling unit shall not be counted with the square footage of the single-family home in determining whether a large home design permit is required. The square footage of a junior accessory dwelling unit shall be counted with the square footage of the single-family home in determining whether a large home design permit is required.
5. Accessory dwelling units that require approval of a coastal permit shall conform to the standards in Section 24.12.140.2.
6. Accessory dwelling units shall meet the inclusionary requirements described under Section
24.16.020.8.
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Section 11. Section 21.16.141 of Chapter 24.16 of the Santa Cruz Municipal Code regarding Site Development Standards is hereby renamed Site Development Standards For NonExempt Accessory Dwelling Units and amended to read as follows:
24.16.141 SITE DEVELOPMENT STANDARDS FOR NON-EXEMPT ACCESSORY DWELLING UNITS.
Despite any directly conflicting zone district site development standards, all non-exempt accessory dwelling units shall comply with the following site development standards. All other zone district site development standards not listed here shall apply to non-exempt accessory dwelling units. Neither the standards in this section nor any zone district site development standards shall apply to statewide exemption accessory dwelling units.
1. General.
Development
Standard
Attached Conversion1,2 Detached
Maximum
Floor Area
(square feet)
3,4
Greatest of:
850 for a studio or
one bedroom
1,000 for a unit with
two or more
bedrooms.
50% of the habitable
area of the primary
dwelling to which
the unit is attached
Footprint of existing
building. Can expand
footprint by 150.5,6
Greatest of:
850 for a studio or
one bedroom
1,000 for a unit
with two or more
bedrooms
10% net lot area
and no more than
1,200 habitable
square feet.
Maximum
Height (feet)7
Zone district standard
that applies to primary
dwelling.
Maintain existing, or
expand up to lesser of
2’ or standard for new
construction ADU.8
16’ to roof peak if
less than 4’ from
side/rear property
line
22’ to roof peak if
4’ or more from
side/rear property
line
Minimum
Front Setback
(feet)
Zone district standard
that applies to
primary dwelling.
Maintain existing.
Any expansion shall
meet new construction
standard.
Lesser of:
Front wall line of
primary building,
excluding any
projections from
that line.
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Zone district
standard.
Minimum
Rear Setback
(feet)
4’ Maintain existing.
Any expansion shall
meet new construction
standard.
3’ for up to 16’
height.
4’ above 16’ height.
Minimum
Exterior Side
Yard Setback
Zone district standard
that applies to
primary dwelling.
Maintain existing.
Any expansion shall
meet new construction
standard.
Zone district
standard.
Minimum
Interior Side
Yard Setback
4’9 Maintain existing.
Any expansion shall
meet new
construction
standard.
3’ for up to 16’
height
4’ above 16’ height
Minimum
Distance
Between
Buildings
6’ Maintain existing. 6’
for any expansion
6’
1. Conversion accessory dwelling units may occupy the three-dimensional space, including setbacks, lot coverage, and height, of the building to be converted or reconstructed, regardless of conformance to current zoning standards.
2. A conversion accessory dwelling unit with any expansion in excess of the above thresholds shall be reviewed as a new construction accessory dwelling unit, including assessment of any required fees.
3. Accessory dwelling units that utilize alternative green construction methods that cause the exterior wall thickness to be greater than normal shall be accommodated by calculating the unit square footage size in a manner that accounts for the difference between the square footage of the proposed building and the square footage of a traditional frame house.
4. Stairways that provide access to accessory dwelling units do not count toward the floor area of an accessory dwelling unit when the stairs are not part of the conditioned space, the stairs do not include any other rooms or room-like areas that would function as habitable floor area for the ADU, and there is a fire-rated entry door at the top of the stairs at the entrance to the accessory dwelling unit.
5. An expansion of up to 150 square feet shall not enlarge the accessory dwelling unit beyond one thousand two hundred square feet unless necessary to accommodate ingress and egress to the accessory dwelling unit.
6. Expansions detached from the primary dwelling shall meet height and setback requirements for a new construction detached accessory dwelling unit. Expansions attached to the primary dwelling shall meet height and setback requirements for new construction attached dwelling units. Expansions of either type on a substandard lot shall be consistent with substandard lot development standards described in Section
24.16.161.7.
7. If the design of the building in which the primary dwelling is located has special roof features that should be matched on the detached accessory dwelling unit to enhance design compatibility, the maximum allowed building height of the accessory dwelling unit may be exceeded in order to include such similar special roof features, subject to review and approval of the zoning administrator as part of the review of the building permit application.
8. Existing and resulting roof height are measured to the roof peak. Other portions of the roof may expand more than two feet if their resulting height is the same or lower than the resulting roof peak.
9. Any zone development standard for an additional setback based on building height or stories shall not apply to the portion of the building that contains the accessory dwelling unit.
2. Parking. No off-street parking shall be required for any accessory dwelling unit outside of the Coastal Zone. Any parking spaces, covered or uncovered, removed in order to create an
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accessory dwelling unit shall not be required to be replaced outside the Coastal Zone. For properties within the Coastal Zone, parking requirements are contained in Section 24.12.240.1.
3. Rear Yard Lot Coverage. In no case shall any accessory dwelling unit be limited in size based on rear yard lot coverage requirements contained in Section 24.12.140.1.f. In the application of Section 24.12.140.1.f., the footprint of accessory dwelling units shall not count toward the maximum allowable lot coverage by accessory buildings in yard setback areas.
4. Projections. An accessory dwelling unit that meets the standard zone district setbacks shall be permitted to include projections as described in Section 24.12.120.1. An accessory dwelling unit, or portion thereof, that does not meet standard zone district setbacks but meets standard setbacks for new construction accessory dwelling units shall be permitted to include architectural features such as cornices, canopies, eaves, and sills that project into the setback two and one-half feet. A conversion accessory dwelling unit, or portion thereof, that does not meet standard setbacks for new construction accessory dwelling units shall not contain any new projections beyond any already present on the existing wall.
5. If a new construction detached accessory dwelling unit is attached to a non-habitable accessory use within the same building, then the portion of the building containing the nonhabitable use shall meet the site development standards for non-habitable accessory buildings as described in Section 24.12.140. A garage may have interior access to an accessory dwelling unit, but no other non-habitable accessory use within the same building shall have interior access to the accessory dwelling unit.
6. Clear corner triangle and clear vision area. Any new construction accessory dwelling unit or expansion of a conversion accessory dwelling unit shall be located outside of the clear corner triangle, as defined in Section 24.22.202, and the clear vision area, as defined in Section
24.22.206.
7. Substandard Lots. When a new construction accessory dwelling unit is proposed on a substandard residential lot, as defined in Section 24.22.520, that contains a single-family residential use, the following design standards shall apply:
a. The maximum allowable lot coverage for all structures shall be forty-five percent, except that lot coverage shall be waived to the extent that it physically precludes the construction of the accessory dwelling unit up to eight hundred square feet in floor area. The lot coverage of the accessory dwelling unit shall not be included in the calculation of all other structures’ maximum allowable lot coverage. Lot coverage shall include the footprints of the first floor, garage and other accessory buildings (attached and detached), decks and porches (greater than thirty inches in height and not cantilevered), and any second-story cantilevered projection (enclosed or open) beyond two and one-half feet.
Decks under thirty inches in height or fully cantilevered with no vertical support posts do not count toward lot coverage for this purpose. Second-story enclosed cantilevered areas that project less than thirty inches from the building wall do not count toward lot coverage. For such areas that project more than thirty inches from the building wall, only the floor area that projects more than thirty inches shall be counted toward lot coverage. b. The floor area of a building’s second story shall be limited to one hundred percent of the floor area of the building’s first floor if the floor area of the building’s first story constitutes thirty percent or less of the net lot area. c. The floor area of a building’s second story shall not exceed fifty percent of the floor area of the building’s first story if the building’s first story has greater than thirty percent lot coverage up to a maximum of forty-five percent lot coverage.
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d. The floor area of a building’s second story shall be limited to fifty percent of forty-five percent lot coverage if the building’s first story has greater than forty-five percent lot coverage.
8. Archaeological Resources. The application shall be consistent with all objective standards relating to the preservation of archaeological resources pursuant to Section 24.12.430.
9. Distance from Natural Features. Any new construction accessory dwelling unit or expansion of a conversion accessory dwelling unit shall be consistent with the following standards for distance from natural features.
a. The accessory dwelling unit shall not be constructed within any watercourse setback designated within the City-Wide Creeks and Wetlands Management Plan that does not allow for construction of an accessory dwelling unit by right, as implemented by Section
24.08.2100 et seq.
b. If the site or an adjacent lot contains a wetland or potential wetland as shown in the Citywide Creeks and Wetlands Management Plan, the accessory dwelling unit shall be located at a distance from the wetland as recommend in a report prepared by a professional biologist with a background in wetland biology. c. The accessory dwelling unit shall not be constructed within 20 feet of a 30 percent or greater slope.
d. The accessory dwelling unit and any related construction and site work shall be located away from a heritage tree, or any street tree growing in the public right of way protected under municipal code chapter 13.30, the greatest distance of: 10 feet, or three times the diameter of the tree’s largest trunk at 54 inches above grade, or the dripline of the tree. e. When the project site includes an area mapped for sensitive habitat or vegetation under the general plan, the accessory dwelling unit and related site work shall be located at a distance from such habitat or vegetation area as determined in a report prepared pursuant to Section 24.14.080 by a professional biologist with a background in sensitive habitat biology.
10. If the application of all site development standards results in a buildable area that physically precludes the creation of any attached or detached accessory dwelling unit of up to 800 square feet with at least four foot interior side and rear yard setbacks, including both statewide exemption accessory dwelling units and non-exempt accessory dwelling units, then the applicant only may waive any one or more of the following site development standards only to the extent that it increases the buildable area to allow such an accessory dwelling unit:
a. Percentage of primary dwelling, and/or
b. Lot coverage, and/or
c. Floor area ratio, and/or
d. Open space, and/or
e. Front setbacks.
11. If waiver of all the standards listed in Section 24.16.141.10 results in a buildable area that physically precludes the creation of a statewide exemption accessory dwelling unit, then the following site development standards shall be waived only to the extent that the waiver increases the buildable area to allow construction of a statewide exemption accessory dwelling unit. Such waivers are limited to the following:
a. First, the applicant may waive any one or more of the following standards:
i. Exterior side yard setback, and/or
ii. Distance between buildings, and/or
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iii. Second floor area of a structure on a substandard lot, and/or iv. Distance from 30 percent or greater slopes.
b. If waiver of all standards in Section 24.16.141.11.a. results in a buildable area that physically precludes the creation of a statewide exemption accessory dwelling unit, then the applicant may waive any one or more of the following standards:
i. The management and development setbacks of a watercourse, but not the riparian setback, when recommendations in a report prepared by a professional biologist with a background in riparian biology are followed and included on the building permit plans. The report recommendations shall not include a requirement to move the building; and/or
ii. The required distance from a heritage tree, or any street tree growing in the public right of way protected under Municipal Code Chapter 13.30, if a report prepared by a professional consulting arborist determines that the reduced distance does not require removal of the tree or any other action that would require approval of a heritage tree permit pursuant to Municipal Code Chapter 9.56 or street tree permit pursuant to Municipal Code Chapter 13.30 and when the building permit plans incorporate all recommendations from the report.
c. If waiver of all the standards in Section 24.16.141.11.b. results in a buildable area that physically precludes the creation of a statewide exemption accessory dwelling unit, then the applicant may waive any one or more of the following standards:
i. The required distance from a heritage tree or any street tree growing in the public right of way protected under Municipal Code Chapter 13.30, if a report prepared by a professional consulting arborist determines that the tree must be removed or that any other action must be taken that would otherwise require a heritage tree permit pursuant to Municipal Code Chapter 9.56 or street tree permit pursuant to Municipal Code Chapter 13.30. In this case, the statewide exemption dwelling unit is exempt from heritage tree permit and street tree permit requirements. Instead, the building permit plans shall include replacement tree(s) with a location and species specified in the arborist report, or the applicant shall pay an in-lieu fee, as described in the City's heritage tree regulations of Municipal Code Chapter 9.56, street tree regulations of Municipal Code Chapter 13.30, associated City Council resolutions, and associated implementing standards.
ii. The riparian setback of a watercourse, when recommendations in a report prepared by a professional biologist with a background in riparian biology are followed and included on the building permit plans. The report recommendations shall not include a requirement to move the building; and/or
iii. Distance from a wetland as determined pursuant to Section 24.16.141.9.b, when recommendations in a report prepared by a professional biologist with a background in wetland biology are followed and included on the building permit plans. The report recommendations shall not include a requirement to move the building; and/or iv. Distance from a sensitive habitat or vegetation area as determined pursuant to Section
24.16.141.9.e, when recommendations in a report prepared by a professional biologist with a background in sensitive habitat biology are followed and included on the building permit plans. The report shall not include a requirement to move the building; and/or
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v. Distance from an archaeological resource recommended in a report prepared by a professional archaeologist. The applicant shall submit an additional review by the archaeologist with recommendations for archaeological resource protection based on the proposed location of the accessory dwelling unit. The additional review shall not include a requirement to move the building. The recommendations from the additional review shall be followed and included on the building permit plans. d. If waiver of all the standards in Section 24.16.141.11.c results in a buildable area that precludes creation of a statewide exemption accessory dwelling unit, then the applicant may waive the following standards in the following order:
i. Clear vision area
ii. Clear corner triangle
Section 12. Section 21.16.142 of Chapter 24.16 of the Santa Cruz Municipal Code regarding Accessory Dwelling Unit Design Standards is hereby renamed Non-Exempt Accessory Dwelling Unit Design Standards and amended to read as follows:
24.16.142 NON-EXEMPT ACCESSORY DWELLING UNIT DESIGN STANDARDS All Non-exempt accessory dwelling units, or the type of accessory dwelling unit if specified below, shall comply with the following design standards:. These standards shall not apply to statewide exemption accessory dwelling units.
1. Municipal Code Requirements. All non-exempt accessory dwelling units shall meet the objective design standards set forth in this Code, including landscape and tree removal and/or replacement requirements.
2. The following standards apply to non-exempt accessory dwelling units that that do not meet one or more of the standard setbacks for the zone district in which they are proposed:
a. The entrance to the accessory dwelling unit, access stairs, and second story decks shall face the interior of the lot unless the accessory dwelling unit is adjacent to an alley or a public street.
b. When an accessory dwelling unit is adjacent to an alley or a public street, the accessory dwelling unit shall be oriented toward the alley or street with the front access door and windows facing the alley or street. The entry facing the alley or street shall include a minimum of 12 square feet of flat, unenclosed, covered area, which may be a projection from the building, or inset, or a combination of the two. c. Windows that do not meet the standard zone district side or rear setback and that face an adjoining residential property shall be designed to obscure views of that property by ADU occupants, including transom windows, translucent glass, or other methods; alternatively, fencing or landscaping shall be required to provide screening.
3. Connections Between Units. Non-exempt aAccessory dwelling units shall not create access between units except a connection between the accessory dwelling unit and the primary dwelling via common access to a shared garage, laundry room, or storage area; provided, that each unit meets the definition of dwelling unit found in Section 24.22.320.
4. The application to construct an non-exempt accessory dwelling unit on a property that is designated as a historic resource by the National Register of Historic Places, the State of California, or by the City, including any property that has been determined to be eligible for the City’s historic building survey list but the property owner has elected to not list the property (opt-out), shall show substantial compliance with the guidelines of the Secretary of the Interior
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for development on such properties as confirmed in a report prepared by a professional historic consultant who is listed on the Department of Planning and Community Development’s approved consultant list.
Section 13. Section 21.16.150 of Chapter 24.16 of the Santa Cruz Municipal Code regarding Use Standards is hereby amended to read as follows:
24.16.150 USE STANDARDS.
1. For any unit that is not approved for separate sale under the provisions of Government Code Sections 66340-66341Section 24.16.165: the accessory dwelling unit shall not be sold separately.
2. The unit shall not be altered from the approved size except by approval of a subsequent building permit where the resulting unit meets the accessory dwelling unit development standards described in this Part.
3. The use of the accessory dwelling unit shall be in effect only so long as the property is in compliance with the ordinance as codified.
43. Neither an accessory dwelling unit nor an associated primary dwelling shall be used on a transient occupancy basis or for short-term/vacation rental purposes with a term of 30 or fewer days.
a. Exception. A legal accessory dwelling unit property that had legal status prior to November 10, 2015, and was in use as a short-term/vacation rental prior to that date, and for which the owner remits transient occupancy tax in compliance with Chapter 3.28 in full in a timely manner for the use of the property as short-term/vacation rental purposes, may continue the use.
5. For properties with accessory dwelling units that are located in a permit parking program district, the primary dwelling and the accessory dwelling unit combined shall qualify only for the number of residential parking permits that would have been available to the primary dwelling.
No additional permits will be granted for the accessory dwelling unit. The property owner shall offer the tenant of an accessory dwelling unit a residential parking permit if requested by the tenant.
64. For properties developed with attached accessory dwelling units, any portion of the accessory dwelling unit that in the future is remodeled to become part of the primary dwelling shall meet the zone district development standards that apply to the primary dwelling.
7. If rented, the accessory dwelling unit and primary dwelling unit shall be registered with the residential rental dwelling unit inspection and maintenance program.
8. Occupancy.
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a. For accessory dwelling units permitted on or after January 1, 2020, owner occupancy shall not be required and no land use agreement requiring owner occupancy shall be recorded or enforced on properties containing these units. b. For accessory dwelling units permitted on or before December 31, 2019, the property owner or an adult member of the property owner’s immediate family, limited to the property owner’s spouse, adult children, parents, or siblings, and subject to verification by the city, shall occupy either the primary or accessory dwelling as his or her principal place of residence except under circumstances as established by resolution by the city council that may allow the property owner or the executor or trustee of the property owner’s estate to apply to the city council for approval of a temporary change in use allowing both units to be rented for a period of no more than two years with a possible extension of one year by the planning director if circumstances warrant. Upon the expiration of the rental period, the property owner and/or the property owner’s immediate family member, as specified above, shall reoccupy the property, or the property owner shall cease renting one of the units, or shall demolish the accessory dwelling unit, or shall sell the property to a buyer who will reside on the property. A fee to cover the costs of processing such a request shall be in an amount established by resolution by the city council.
c. For purposes of this chapter, the property owner is the majority owner of the property as shown in the most recent Santa Cruz County assessor’s roll. d. If there is more than one property owner of record, the owner with the majority interest in the property shall be deemed the property owner for purposes of this chapter. Any property owner of record holding an equal share interest in the property may be deemed the majority property owner if no other property owner owns a greater interest. (For example, if the property is owned by two people, each with a fifty percent interest, either of the two owners may be deemed the property owner for purposes of the owner occupancy requirement. If three people own the property, each with a thirty-three and one-third percent interest, any one of the three may be deemed the property owner for purposes of the owner occupancy requirement.)
Section 14. Section 21.16.160 of Chapter 24.16 of the Santa Cruz Municipal Code regarding Zoning Incentives is hereby amended to read as follows:
24.16.160 ZONING INCENTIVES.
The following incentives are to encourage construction of accessory dwelling units:
1. Affordability Requirements for Fee Waivers. In addition to any inclusionary housing requirements as set forth under Section 24.16.010 et seq., aAccessory dwelling units proposed to be rented at affordable rents, as established by the city, may have development fees waived per Part 4 of this chapter. Existing dwelling units shall be relieved of the affordability requirement upon payment of fees in the amount previously waived plus the difference between that amount and the fees in effect at the time of repayment.
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2. Front or Exterior Yard Parking. Three parking spaces may be provided in the front or exterior yard setback under this incentive with the parking design subject to approval of the zoning administrator. The maximum impervious surfaces devoted to the parking area shall be no greater than the existing driveway surfaces at time of application. Not more than fifty percent of the front yard width shall be allowed to be parking area.
3. Tandem Parking. For a parcel with a permitted accessory dwelling unit, required parking spaces for the primary single-family dwelling and the accessory dwelling unit may be provided in tandem on a driveway. A tandem arrangement consists of one car behind the other. No more than three total cars in tandem may be counted towards meeting the parking requirement.
Section 15. Section 21.16.165 of Chapter 24.16 of the Santa Cruz Municipal Code regarding Separate Sale of Accessory Dwelling Units is hereby added to read as follows:
24.16.165 SEPARATE SALE OF ACCESSORY DWELLING UNITS
1. This section implements Government Code Section 66342, enacted by Assembly Bill 1033 (Ting). The purpose of this section is to apply objective local development standards for subdivisions covered by Government Code Section 66342 and is applicable only so long as Government Code Section 66342 is operative. Where this section or Government Code Section 66342 conflict with any other provisions of the municipal code, this section and Government Code Section 66342 shall control. Any development standard or requirement not specifically addressed by this section or Government Code Section 66342 must conform to all other provisions of the municipal code and all other objective policies and requirements governing subdivisions.
2. Condominium parcels for the separate conveyance of one or more accessory dwelling unit(s) and their associated primary dwelling unit may be created on lots with single-unit buildings, and condominium parcels for the separate conveyance of one or more accessory dwelling unit(s) may be created on lots with multi-unit buildings, and such condominium parcels shall be approved only as provided by this section.
3. Creation of condominium parcels for five or more accessory dwelling units shall require approval of a tentative map and final map consistent with the requirements of Title 23 of the Municipal Code.
4. Creation of four or fewer condominium parcels for accessory dwelling units and associated primary dwellings shall require approval of a parcel map consistent with the requirements of Title 23 of the Municipal Code.
5. The applicant shall obtain a parcel map or final map to establish the condominium parcels. A tentative map shall not be required.
6. Units mapped under the provisions of this section shall not be required to comply with the Community Housing Project Requirements under Section 24.12.180, except:
a. Each new construction accessory dwelling unit or new construction primary dwelling unit shall meet the open space requirement pursuant to Section 24.12.280.3 unless waived pursuant to Section 24.16.141.10.d, and
b. Each new construction accessory dwelling unit or new construction primary dwelling unit shall provide a minimum of two hundred cubic feet of enclosed storage space within the
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project capable of being secured by lock or other means for each unit, in addition to kitchen cupboards or clothes and linen closets, consistent with Section 24.12.180.4.
7. No off-street parking beyond that required by Section 24.16.141.2 shall be required for any accessory dwelling unit mapped as a condominium.
8. Accessory dwelling units and associated primary dwelling units mapped as condominiums pursuant to this section shall meet the inclusionary dwelling unit requirements under Section 24.16.020.
9. When no more than four condominium units are created from the conversion of existing accessory dwelling units and associated primary dwellings, the following shall apply:
a. The units may be converted to condominiums regardless of the multi-family housing vacancy rate consistent with Municipal Code Section 23.37.020.1. b. Tenants displaced shall retain a first right of refusal if the unit is offered to sale to the general public consistent with Municipal Code Section 23.37.050.g. c. Relocation assistance in the amount of four months’ rent shall be provided to tenants of low or moderate income who have resided in the unit within two years prior to the date of submission of the application for the conversion of the unit(s) consistent with Section
23.37.050.h.
10. Consistent with Government Code Section 66341, an accessory dwelling unit shall be approved with a condominium lot for separate conveyance pursuant to the following:
a. The condominiums shall be created pursuant to the Davis-Stirling Common Interest Development Act (Part 5 (commencing with Section 4000) of Division 4 of the Civil Code).
b. The condominiums shall be created in conformance with all applicable objective requirements of the Subdivision Map Act (Division 2 (commencing with Section 66410)) and all applicable objective requirements of Title 23, the Subdivision Ordinance. c. Before recordation of the condominium plan, a safety inspection of the accessory dwelling unit shall be conducted as evidenced either through a certificate of occupancy from the City or a housing quality standards report from a building inspector certified by the United States Department of Housing and Urban Development. d. Neither a subdivision map nor a condominium plan shall be recorded with the county recorder in the county where the real property is located without each lienholder’s consent. The following shall apply to the consent of a lienholder:
i. A lienholder may refuse to give consent.
ii. A lienholder may consent provided that any terms and conditions required by the lienholder are satisfied.
e. Prior to recordation of the initial or any subsequent modifications to the condominium plan, written evidence of the lienholder’s consent shall be provided to the county recorder along with a signed statement from each lienholder that states as follows: “(Name of lienholder) hereby consents to the recording of this condominium plan in their sole and absolute discretion and the borrower has or will satisfy any additional terms and conditions the lienholder may have.”
f. The lienholder’s consent shall be included on the condominium plan or a separate form attached to the condominium plan that includes the following information:
i. The lienholder’s signature.
ii. The name of the record owner or ground lessee.
iii. The legal description of the real property.
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iv. The identities of all parties with an interest in the real property as reflected in the real property records.
v. The lienholder’s consent shall be recorded in the office of the county recorder of the county in which the real property is located.
g. The City shall include the following notice to consumers on any accessory dwelling or junior accessory dwelling unit submittal checklist or public information issued describing requirements and permitting for accessory dwelling units, including as standard condition of any accessory dwelling unit building permit or condominium plan approval:
“NOTICE: If you are considering establishing your primary dwelling unit and accessory dwelling unit as a condominium, please ensure that your building permitting agency allows this practice. If you decide to establish your primary dwelling unit and accessory dwelling unit as a condominium, your condominium plan or any future modifications to the condominium plan must be recorded with the County Recorder. Prior to recordation or modification of your subdivision map and condominium plan, any lienholder with a lien on your title must provide a form of written consent either on the condominium plan, or on the lienholder’s consent form attached to the condominium plan, with text that clearly states that the lender approves recordation of the condominium plan and that you have satisfied their terms and conditions, if any.
In order to secure lender consent, you may be required to follow additional lender requirements, which may include, but are not limited to, one or more of the following:
(a) Paying off your current lender. You may pay off your mortgage and any liens through a refinance or a new loan. Be aware that refinancing or using a new loan may result in changes to your interest rate or tax basis. Also, be aware that any subsequent modification to your subdivision map or condominium plan must also be consented to by your lender, which consent may be denied. (b) Securing your lender’s approval of a modification to their loan collateral due to the change of your current property legal description into one or more condominium parcels.
(c) Securing your lender’s consent to the details of any construction loan or ground lease. This may include a copy of the improvement contract entered in good faith with a licensed contractor, evidence that the record owner or ground lessee has the funds to complete the work, and a signed statement made by the record owner or ground lessor that the information in the consent above is true and correct.”
h. If an accessory dwelling unit is established as a condominium, the homeowner shall notify providers of utilities, including water, sewer, gas, and electricity, of the condominium creation and separate conveyance.
i. The owner of a property or a separate interest within an existing planned development that has an existing association, as defined in Section 4080 of the Civil Code, shall not record a condominium plan to create a common interest development under Section 4100 of the Civil Code without the express written authorization by the existing association.
For purposes of this section, written authorization by the existing association means approval by the board at a duly noticed board meeting, as defined in Section 4090 of the
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Civil Code, and if needed pursuant to the existing association’s governing documents, membership approval of the existing association.
11. Nothing in this section shall prohibit approval of an accessory dwelling with a condominium lot for separate conveyance pursuant to Government Code Section 66340-66341.
Section 16. The City Council finds and determines that the adoption of this ordinance is considered a “project” under California Code of Regulations, Title 14, section 15378(a)(1) of the California Environmental Quality Act (CEQA) Guidelines, typically subject to environmental review. The City Council finds that these amendments fall within the analyzed development potential in the City’s existing 2030 General Plan EIR using the existing zoning and General Plan and, therefore, pursuant to Section 15183 of the CEQA Guidelines, no further environmental review under CEQA is required.
Section 17. If any section or portion of this ordinance is found to be invalid by a court of competent jurisdiction, such finding shall not affect the validity of the remainder of the ordinance, which shall continue in full force and effect.
Section 18. This ordinance shall take effect and be in full force thirty (30) days after final adoption.
PASSED FOR PUBLICATION this 10th day of December 2024, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
APPROVED: __________________________
Fred Keeley, Mayor
ATTEST: ___________________________
Bonnie Bush, City Clerk Administrator
PASSED FOR FINAL ADOPTION this 14th day of January 2025 by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
APPROVED: ___________________________
Fred Keeley, Mayor
ATTEST: ___________________________
Bonnie Bush, City Clerk Administrator
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This is to certify that the above
and foregoing document is the
original of Ordinance No. 202X-XX
and that it has been published or
posted in accordance with the
Charter of the City of Santa Cruz.
___________________________
City Clerk Administrator
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ORDINANCE NO.
AN ORDINANCE OF THE CITY OF SANTA CRUZ AMENDING SANTA CRUZ MUNICIPAL CODE SECTION 18.15.040 – ENERGY CODE - MODIFICATIONS TO
MAINTAIN CONSISTENCY WITH NEW STATE REGULATIONS FOR ACCESSORY DWELLING UNITS. (CEQA: CONSISTENT WITH THE NEGATIVE DECLARATION APPROVED FOR THE CITY OF SANTA CRUZ 2030 CLIMATE ACTION PLAN ADOPTED BY CITY COUNCIL ON SEPTEMBER 13, 2022, EXEMPT PURSUANT TO CEQA GUIDELINES SECTION 15061(b)(3) AS A PROJECT THAT WITH CERTAINTY
DOES NOT HAVE A SIGNIFICANT EFFECT ON THE ENVIRONMENT, AND EXEMPT PURSUANT TO CEQA GUIDELINES SECTION 15308 AS AN ACTION BY A REGULATORY AGENCY FOR PROTECTION OF NATURAL RESOURCES.) WHEREAS, accessory dwelling units contribute needed housing to the community’s housing stock and provide housing for family members, students, the elderly, in-home health care providers, the disabled, and others within existing neighborhoods, and homeowners who create accessory dwelling units may benefit from added income and an increased sense of security; and WHEREAS, on September 19, 2024, SB 1211 (Skinner) was signed into law, making changes to requirements for parking associated with accessory dwelling unit development, increasing the number of statewide exemption accessory dwelling units allowed on sites with multi-family buildings, and limiting the standards that can be applied to statewide exemption accessory dwelling units; and
WHEREAS, amendments to municipal code requirements related to accessory dwelling units are needed to maintain consistency with state law; and WHEREAS, Public Resources Code Section 25402.1 (h)(2) allows local agencies to adopt local amendments that are cost-effective and that require greater energy reduction/conservation than the California Energy Code; and
WHEREAS, the California Energy Codes and Standards Statewide Utility Program, has determined specific modifications to the 2022 State Energy Code for each climate zone that are cost-effective; and that such modifications will result in designs that consume less energy than they would under the 2022 State Energy Code; and
WHEREAS, staff has reviewed the “2024 Existing Building Cost-Effectiveness Study” and associated data, and find them sufficient to illustrate compliance with the requirements set forth under California Administrative Code Chapter 10-106; and WHEREAS, based on these studies, the City finds the proposed local amendments to the 2022 California Energy Code to be cost-effective and consume less energy than permitted by Title 24, Part 6; and
WHEREAS, the 2022 California Energy Code offers compliance options that were established through the public rulemaking process of the code update; and
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WHEREAS, the Council expressly declares that the proposed amendments to the Energy Code are reasonably necessary because of local climatic, topological, and geological conditions; and
WHEREAS, the requirements specified in this Ordinance were reviewed via public comment and through a publicly noticed public hearing process; and WHEREAS, The municipal code amendments are consistent with the Negative Declaration approved for the City of Santa Cruz 2030 Climate Action Plan adopted by City Council on September 13, 2022, and therefore, no further environmental review under the California Environmental Quality Act (CEQA) is required; the amendments are exempt from CEQA under the general rule, 15061(b)(3), because it can be seen with certainty that the provisions contained herein would not have the potential for causing a significant effect on the environment; and, this ordinance is exempt per CEQA Guidelines Section 15308, Class 8, Actions by Regulatory Agencies for Protection of Natural Resources, since the proposed ordinance would institute regulatory requirements intended to protect the environment and natural resources.
BE IT ORDAINED By the City of Santa Cruz as follows:
Section 1. Section 18.15.040 of Chapter 18.15 of the Santa Cruz Municipal Code regarding Energy Code – Modifications is hereby amended to read as follows:
18.050.040 ENERGY CODE – MODIFICATIONS.
The following sections of the code as adopted in Section 18.15.030 are hereby modified as follows:
Section 100.1(b) of the CEnC is amended to add the following:
ELECTRIC HEATING APPLIANCE. A device that produces heat energy to create a warm environment by the application of electric power to resistance elements, refrigerant compressors, or dissimilar material junctions, as defined in the California Mechanical Code.
MAJOR ADDITION is any change to an existing building that increases conditioned floor area by 350 or more square feet in a one-year period.
MAJOR ALTERATION is any construction or renovation to an existing structure other than a repair whose altered components cover 350 or more square feet in a one-year period. A project that consists only of roof and/or fenestration replacement is not considered a major alteration.
NET FREE AREA (NFA) is the total unobstructed area of the air gaps between louver and grille slats in a vent through which air can pass. The narrowest distance between two slats, perpendicular to the surface of both slats is the air gap height. The narrowest width of the gap is the air gap width.
The NFA is the air gap height multiplied by the air gap width multiplied by the total number of air gaps between slats in the vent.
Section 130.0 of the CEnC is amended to read as follows:
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a) The design and installation of all lighting systems and equipment in nonresidential and hotel/motel buildings, outdoor lighting, and electrical power distribution systems within the scope of Section 100.0(a), shall comply with the applicable provisions of Sections 130.0 through 130.6.
NOTE: The requirements of Sections 130.0 through 130.6 apply to newly constructed buildings.
Section 141.0 specifies which requirements of Sections 130.0 through 130.6 also apply to additions and alterations to existing buildings.
Subchapter 4 of the CEnC is amended to add Section 130.6 to be numbered, entitled, and to read as follows:
130.6 Electric Readiness Requirements for Systems Using Gas or Propane Where nonresidential systems using gas or propane are installed, construction drawings shall indicate electrical infrastructure and physical space accommodating the future installation of an electric heating appliance by including the following, as certified by a registered design professional or licensed electrical contractor:
a) Branch circuit wiring, electrically isolated and designed to serve all electric heating appliances in accordance with manufacturer requirements and the California Electrical Code, including the appropriate voltage, phase, minimum amperage, and an electrical receptacle or junction box within five feet of the appliance that is accessible with no obstructions. Appropriately sized conduit may be installed in lieu of conductors.
b) Labeling of both ends of the unused conductors or conduit that includes the terms “For Future Electrical Appliance.”
c) Reserved circuit breakers in the electrical panel for each branch circuit, appropriately labeled (e.g., “Reserved for Future Electric Range”), and positioned on the opposite end of the panel supply conductor connection.
d) Connected subpanels, panelboards, switchboards, busbars, and transformers that are sized to serve the future electric heating appliances. The electrical capacity requirements shall be adjusted for demand factors in accordance with the California Electric Code. e) Physical space for future electric heating appliances, including equipment footprint, and if needed, a pathway reserved for routing of ductwork to heat pump evaporator(s), all of which shall be depicted on the construction drawings. The footprint necessary for future electric heating appliances may overlap with non-structural partitions and with the location of currently designed gas-fueled equipment.
Section 140.0 of the CEnC is amended to read as follows:
Nonresidential and hotel/motel buildings shall comply with all of the following:
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a) The requirements of Sections 100.0 through 110.12 applicable to the building project (mandatory measures for all buildings).
b) The requirements of Sections 120.0 through 130.6 (mandatory measures for nonresidential and high-rise residential and hotel/motel buildings).
c) Either the performance compliance approach (energy budgets) specified in Section 140.1 or the prescriptive compliance approach specified in Section 140.2. for the climate zone in which the building will be located. Climate zones are shown in Figure 100.1-A.
NOTE to Section 140.0(c): The Commission periodically updates, publishes, and makes available to interested persons and local enforcement agencies precise descriptions of the Climate Zones, which is available by zip code boundaries depicted in the Reference Joint Appendices along with a list of the communities in each zone.
NOTE to Section 140.0: The requirements of Sections 140.1 through 140.10 apply to newly constructed buildings. Section 141.0 specifies which requirements of Section 140.1 through 140.10 also apply to additions or alterations to existing buildings.
Section 140.1 of the CEnC is amended to read as follows:
The following conditions are necessary for a building to comply with the performance approach:
1. The time-dependent valuation (TDV) energy budget calculated for the proposed design building under Subsection (b) is no greater than the TDV energy budget calculated for the Standard Design Building under Subsection (a); and
2. The source energy budget calculated for the proposed design building under Subsection (b) has a source energy compliance margin, relative to the energy budget calculated for the standard design building under Subsection (a), of at least 7 percent for all nonresidential occupancies.
EXCEPTION 1 to 140.1 item 2 A source energy compliance margin of at least 7 percent is not required when nonresidential occupancies are designed with single zone space-conditioning systems complying with Section 140.4(a)2.
(a) – (c): Subsections 140.1 (a) – (c) are adopted without modification.
Section 150.0 of the CEnC is amended as follows:
Single-family residential buildings shall comply with the applicable requirements of Sections 150(a) through 150.0(w).
NOTE: The requirements of Sections 150.0 (a) through (v) apply to newly constructed buildings.
Sections 150.2(a) and 150.2(b) specify which requirements of Sections 150.0(a) through 150.0(r) also apply to additions or alterations. The City of Santa Cruz amendments to sections 150.0 (t) do
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not apply to additions or alterations or the following types of new construction statewide exemption accessory dwelling units:
1. One accessory dwelling unit per lot with a proposed single-unit building, including a singlefamily dwelling, or a townhome, or a detached residential condominium or apartment unit on a lot with multiple single-unit buildings, if all of the following apply:
i. The accessory dwelling unit is within the proposed space of a single-unit building. ii. The accessory dwelling unit has an exterior entrance separate from that of the primary dwelling unit.
iii. The side and rear setbacks are sufficient for fire and safety.
2. One detached, new construction accessory dwelling unit per lot that meets the following standards:
i. The accessory dwelling unit shall be located on a lot with a proposed or existing singleunit building, including a single-family dwelling, or a townhome, or a detached residential condominium or apartment unit on a site with multiple single-unit buildings. ii. The accessory dwelling unit size shall not exceed 800 square feet in floor area. iii. Interior side yard and rear yard setbacks shall be at least four feet. iv. The accessory dwelling unit shall meet one of the following height limitations as measured to the roof peak:
1. A height of 16 feet; or
2. A height of 18 feet if the accessory dwelling unit is on a lot within one-half of one 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. This height can be increased an additional two feet to twenty feet to accommodate a roof pitch on the accessory dwelling unit that is aligned with the roof pitch of the primary dwelling unit.
3. One junior accessory dwelling unit per lot zoned to allow single-family dwellings and within the walls of a proposed single-unit building, including a single-family dwelling, townhome, or detached residential condominium or apartment unit on a lot with multiple detached single-unit dwellings.
(a) – (s): Subsections 150.0(a) – (s) are adopted without modification. (t) Heat pump space heater ready. Systems using a gas or propane furnace to serve individual dwelling units shall include the following:
1. A dedicated 240-volt branch circuit wiring shall be installed within 3 feet from the furnace and accessible to the furnace with no obstructions. The branch circuit conductors shall be rated at 30 amps minimum. The blank cover shall be identified as “240V ready.” All electrical components shall be installed in accordance with the California Electrical Code.
2. The main electrical service panel shall have a reserved space to allow for the installation of a double pole circuit breaker for a future heat pump space heater installation. The reserved space shall be permanently marked as “For Future 240V use.”
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3. A designated exterior location for a future heat pump compressor unit with either a drain or natural drainage for condensate and adequate space to maintain the equipment in accordance with California Mechanical Code 304.1 & California Electrical Code 110.26. (u) – (v): Subsections 150.0(u) – (v) are adopted without modification.
Section 150.0(w) is added to read as follows:
(w) Mandatory Requirements for Existing Building Additions and Alterations. Existing Building Additions and Alterations shall meet the requirements of Items 1 through 3 below, as applicable:
1. Major addition. Any major addition shall require installation of a set of measures from the Measure Menu Table, Table 150.0-I to achieve a total score that is equal to or greater than
9. In addition, all mandatory measures listed in Table 150.0-I shall be installed. Measure verification shall be explicitly included as an addendum to the Certificate of Compliance to be filed pursuant to 2022 Title 24 Section 10-103. Installed measures shall meet the specifications in Table 150.0-J.
2. Major alteration. Any major alteration shall require installation of a set of measures from the Measure Menu Table, Table 150.0-I to achieve a total score that is equal to or greater than 9. In addition, all mandatory measures listed in Table 150.0-I shall be installed.
Measure verification shall be explicitly included as an addendum to the Certificate of Compliance to be filed pursuant to 2022 Title 24 Section 10-103. Installed measures shall meet the specifications in Table 150.0-J.
3. Combination alterations and additions. Any project that includes an addition and alteration whose altered components cover 350 square feet or greater shall require installation of a set of measures from the Measure Menu Table, Table 150.0-I to achieve a total score that is equal to or greater than 9. In addition, all mandatory measures listed in Table 150.0-I shall be installed. Measure verification shall be explicitly included as an addendum to the Certificate of Compliance to be filed pursuant to 2022 Title 24 Section 10-103. Installed measures shall meet the specifications in Table 150.0-J.
4. Water heating system electric readiness. Any project that includes a major addition, major alteration, or combination alteration and addition that requires water heating system electric readiness shall meet Item A below:
a. Systems using gas or propane water heaters to serve individual dwelling units shall designate a space at least 2.5 feet by 2.5 feet wide and 7 feet tall suitable for the future installation of a heat pump water heater (HPWH). All electrical components shall be installed in accordance with the California Electrical Code. The space shall include the following:
i. A dedicated 125 volt, 20 amp electrical receptacle that is connected to the electric panel with a 120/240 volt 3 conductor, 10 AWG copper branch circuit, within 3 feet from the water heater and accessible to the water heater with no obstructions; and
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ii. Both ends of the unused conductor shall be labeled with the word “spare” and be electrically isolated; and
iii. A reserved single pole circuit breaker space in the electrical panel adjacent to the circuit breaker for the branch circuit in A above and labeled with the words “Future Use”; and iv. A condensate drain that is no more than 2 inches higher than the base of the installed water heater, and allows natural draining without pump assistance. v. A condensate drain that is no more than 2 inches higher than the base of the installed water heater, and allows natural draining without pump assistance.
Exception 1 to Section 150.0(w): The project is the result of a repair as defined by Title 24 Part 2 Section 202.
Exception 2 to Section 150.0(w): If compliance costs exceed 20% of total project valuation or due to conditions specific to the project, it is technically infeasible to achieve compliance through any available set of measures, the applicant may request an exemption as set forth below. In applying for an exemption, the burden is on the applicant to show hardship or infeasibility.
1. Application. Based on the following, the applicant shall identify in writing the specific requirements of the standards for compliance that the project is unable to achieve and the circumstances that make it a hardship or infeasible for the project to comply with this chapter. The applicant may not petition for relief from any requirement of the 2022 California Energy Code (Title 24, Part 6) and referenced standards, or the 2022 California Green Building Standards (Title 24, Part 11) of the California Building Standards Code. Circumstances that constitute hardship or infeasibility shall include one of the following:
i. That the cost of achieving compliance is disproportionate to the overall cost of the project; ii. That it is technically infeasible to achieve compliance through all packages due to conditions specific to the project; That strict compliance with these standards would create or maintain a hazardous condition(s) and present a life safety risk to the occupants. (2) Granting of exemption. If the chief building official determines that it is a hardship or infeasible for the applicant to fully meet the requirements of this chapter and that granting the requested exemption will not cause the building to fail to comply with the 2022 California Energy Code (Title 24, Part 6) and referenced standards, or the 2022 California Green Building Standards (Title 24, Part 11) of the California Building Standards Code, the chief building official shall determine the minimum feasible threshold of compliance reasonably achievable for the project. If an exemption is granted, the applicant shall be required to comply with this chapter in all other respects and shall be required to achieve the threshold of compliance determined to be achievable by the chief building official.
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(3) Denial of exemption. If the chief building official determines that it is reasonably possible for the applicant to fully meet the requirements of this chapter, the request shall be denied, and the applicant shall be notified of the decision in writing. The project and compliance documentation shall be modified to comply with the standards for compliance. (4) Appeal. Any aggrieved applicant or person may appeal the determination of the chief building official regarding the granting or denial of an exemption or compliance with any other provision of this chapter. An appeal of a determination of the chief building official shall be filed in writing with the Board of Building and Fire Appeals.
Exception 3 to Section 150.0(w): If the dwelling unit has previously installed measures from the Measure Menu, Table 150.0-I, and compliance can be demonstrated to the building official, then these measures shall not be required to be newly installed, and appropriate credit shall be included in the applicable compliance calculations.
Exception 4 to Section 150.0(w): The applicant may request an exemption to any requirements of this chapter which would impair the historic integrity of any building listed on a local, state, or federal register of historic structures, as determined by the Planning Director or designee and as regulated by the California Historic Building Code (Title 24, Part 8). In making a determination of exemption, the Planning Director or designee may require the submittal of an evaluation by an architectural historian or similar expert.
Exception 5 to Section 150.0(w): An alteration that consists solely of seismic safety improvements.
Exception 6 to Section 150.0(w): Buildings which are temporary (such as construction trailers).
Exception 7 to Section 150.0(w): An alteration that consists solely of roof and/or fenestration projects.
Exception 8 to Section 150.0(w): Mobile Homes, Manufactured Housing, or Factory-built Housing as defined in Division 13 of the California Health and Safety 12 Code (commencing with Section 17000 of the Health and Safety Code).
Exception 9 to Section 150.0(w): One accessory dwelling unit and one junior accessory dwelling unit per lot with a proposed or existing single-family dwelling if all of the following apply:
(1) 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 and may include an expansion of not more than 150 square feet beyond the same physical dimensions as the existing accessory structure. An expansion beyond the physical dimensions of the existing accessory structure shall be limited to accommodating ingress and egress. (2) The space has exterior access from the proposed or existing single-family dwelling. (3) The side and rear setbacks are sufficient for fire and safety.
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Exception 10 to Section 150.0(w): Where the project includes an accessory dwelling unit or junior accessory dwelling unit that is attached to the primary dwelling unit, either as a new addition or converted from within the space of the primary dwelling unit, and there is not an additional combination alteration/addition to the primary dwelling unit of at least 350 square feet, then the primary dwelling unit is exempt from the requirements.
New Table 150.0-I is added to read as follows:
Table 150.0-I: Measure Menu
Measures Table 150.0-J ID Points
Water Heating Package E1 1
Induction Cooktop E2 1
Heat Pump Clothes Dryer E3 1
Air Sealing E4 2
Duct Sealing E5 3
R-49 Attic Insulation E6 4
Windows E7 4
R-13 Wall Insulation E8 5
New Ducts + Duct Sealing E9 6
R-19 Floor Insulation E10 9
R-30 Floor Insulation E11 10
Heat Pump Water Heater (HPWH) E12 12
Solar PV + Electric Ready Pre-Wire E13 13
Heat Pump Space Heater E14 18
Utility Room, Kitchen & Laundry-Related
Electric Ready Pre-Wire M1 Mandatory
Panel-Related Electric Ready Pre-Wire M2 Mandatory
Note: the measures in the Measure Menu table shall conform to the specifications in Table 150.0-J
New Table 150.0-J is added to read as follows:
Table 150.0-J: Measure Specifications
ID Measure Specification
General Measures
E1 Water Heating Package: Add exterior insulation meeting a minimum of R-6 to existing storage water heaters. Insulate all accessible hot water pipes with pipe insulation a minimum of ¾ inch thick. This includes insulating the supply pipe leaving the water heater, piping to faucets underneath sinks, and accessible pipes in attic spaces or crawlspaces.
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Upgrade fittings in sinks and showers to meet current California Green Building Standards Code (Title 24, Part 11) Section 4.303 water efficiency requirements.
Water heaters 20 gallons or less, or water heaters that are not able to add exterior insulation may not take credit for this measure.
Exception 1: Water heater blanket is not required on water heaters less than 20 gallons.
Exception 2: Water heater blanket not required if application of a water heater blanket voids the warranty on the water heater.
Exception 3: Upgraded fixtures are not required if existing fixtures have rated or measured flow rates of no more than ten percent greater than 2022 California Green Building Standards Code (Title 24, Part 11) Section 4.303 water efficiency requirements.
Exception 4: Water heaters with factory installed insulation of R-24 or greater E2 Heat Pump Space Heater: Replace all existing gas and electric resistance space heating systems with an electric-only heat pump system.
E3 Induction Cooktop: Replace existing gas and electric resistance stove top with inductive stove top and cap the gas line.
E4 Air Sealing: Seal all accessible cracks, holes, and gaps in the building envelope at walls, floors, and ceilings. Pay special attention to penetrations including plumbing, electrical, and mechanical vents, recessed can light luminaires, and windows. Weather-strip doors if not already present. Verification shall be conducted by a certified HERS Rater that either:
a) shows at least a 30 percent reduction from pre-retrofit conditions; or b) shows that the number of air changes per hour at 50 Pascals pressure difference (ACH50) does not exceed ten for Pre-1978 vintage buildings, seven for 1978 to 1991 vintage buildings and five for 1992-2010 vintage buildings. Compliance can also be demonstrated with blower door testing conducted by a certified HERS Rater no more than three years prior to the permit application date showing compliance with condition (a) or (b).
If combustion appliances are located within the pressure boundary of the building, conduct a combustion safety test by a professional certified by the Building Performance Institute in accordance with the ANSI/BPI-1200-S-2017 Standard Practice for Basic Analysis of Buildings, the Whole House Combustion Appliance Safety Test Procedure for the Comfortable Home Rebates Program 2020 or the California Community Services and Development Combustion Appliance Safety Testing Protocol.
Reducing the air leakage of a building can reduce the building’s drying potential. When improving the air sealing of a building, consider if there is a need to add continuous ventilation to the building (if not already present).
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E5 Duct Sealing: Air seal all space conditioning ductwork to meet the requirements of the 2022 Title 24 Section 150.2(b)1E. The duct system must be tested by a HERS Rater no more than three years prior to the alteration or addition permit application date to verify the duct sealing and confirm that the requirements have been met. This measure may not be combined with the New Ducts and Duct Sealing measure in this Table. Dwelling units without ductwork or where the ducts are in conditioned space may not take credit for this measure.
E6 R-49 Attic Insulation: Attic insulation shall be installed to achieve a weighted assembly U-factor of 0.020 or insulation installed at the ceiling level shall have a thermal resistance of R-49 or greater for the insulation alone. Recessed downlight luminaires in the ceiling shall be covered with insulation to the same depth as the rest of the ceiling. Luminaires not rated for insulation contact must be replaced or fitted with a fire-proof cover that allows for insulation to be installed directly over the cover.
Exception: In buildings where existing R-30 is present and existing recessed downlight luminaires are not rated for insulation contact, insulation is not required to be installed over the luminaires.
E7 Windows: Replace at least 50% of existing windows with high performance windows with an area-weighted average U-factor no greater than 0.30.
E8 R-13 Wall Insulation: Install wall insulation in all exterior walls to achieve a weighted Ufactor of 0.102 or install wall insulation in all exterior wall cavities that shall result in an installed thermal resistance of R-13 or greater for the insulation alone.
E9 New Ducts + Duct Sealing: Replace existing space conditioning ductwork with new R-8 ducts that meet the requirements of 2022 Title 24 Section 150.0(m)11. This measure may not be combined with the Duct Sealing measure in this Table. To qualify, a preexisting measure must have been installed no more than three years before the alteration or addition permit application date.
E10 R-19 Floor Insulation: Raised-floors shall be insulated such that the floor assembly has an assembly U-factor equal to or less than U-0.037, or shall be insulated between wood framing with insulation having an R-value equal to or greater than R-19. This measure cannot be combined with measure R-30 Floor insulation.
E11 R-30 Floor Insulation: Raised-floors shall be insulated such that the floor assembly has an assembly U-factor equal to or less than U-0.028, or shall be insulated between wood framing with insulation having an R-value equal to or greater than R-30. This measure cannot be combined with measure R-19 Floor insulation.
E12 Heat Pump Water Heater (HPWH): Replace existing electric resistance or natural gas storage water heater with a heat pump water heater.
E13 PV and Electric Ready Pre-Wire: Install a solar PV system that meets the requirements of 2022 Title 24 Section 150.1(c)14.
In addition to the solar PV system, comply with the water heating system electric readiness requirements per Section 150.0(w)4and the heat pump space heaters requirements per Section 150.0(t) and one of the following:
A. Energy Storage Systems (ESS) Ready, as specified in Section 150.0(s), or
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B. EV Charger Ready as specified in the California Green Building Code, Title 24, Part 11, Section A4.106.8.1, which otherwise applies to new construction.
Exception 1: In buildings where the designated space requirement specified in Section 150.0(n)1 can be demonstrated to the building official as infeasible, the electric readiness components per Section 150.0(n)1 are not required.
Mandatory Measures
M1 Utility Room, Kitchen & Laundry-Related Electric Ready Pre-Wire: Where the project includes a kitchen remodel, comply with the electric cooktop ready requirement, as specified in Section 150.0(u). Where the project includes a laundry room remodel, comply with the electric clothes dryer ready requirement, as specified in Section 150.0(v). Where the project includes a utility room remodel, comply with the water heating system electric readiness requirements per Section 150.0(w)4and the heat pump space heater electric readiness requirements per Section 150.0(t):
Exception 1: If an electrical permit is not otherwise required for the project other than compliance with this measure.
Exception 2: If a utility service upgrade is not otherwise required for the project other than compliance with this measure.
Exception 3: In buildings where the designated space requirement specified in Section 150.0(w)4can be demonstrated to the building official as infeasible, the electric readiness components per Section 150.0(w)4are not required.
M2 Panel-Related Electric Ready Pre-Wire: Where the project includes a new electrical panel and electrical service upgrade to 200A or more, comply with the water heating systems electric readiness requirements per Section 150.0(w)4 and the heat pump space heater electric readiness requirements per Section 150.0(t).
Exception 1: In buildings where the designated space requirement specified in Section (150.0(w)4can be demonstrated to the building official as infeasible, the electric readiness components per Section 150.0(w)4 are not required.
Section 150.1 of the CEnC is amended to read as follows:
(a) Section (a) is adopted without modification.
(b) Performance Standards. A building complies with the performance standards if the energy consumption calculated for the proposed design building is no greater than the energy budget calculated for the standard design building using Commission-certified compliance software as specified by the Alternative Calculation Methods Approval Manual.
1. Newly Constructed Buildings. The Energy Budget for newly constructed buildings is expressed in terms of the Energy Design Ratings, which are based on source energy and time30.161 dependent valuation (TDV) energy. The Energy Design Rating 1 (EDR1) is based on source energy. The Energy Design Rating 2 (EDR2) is based on TDV energy and has two components, the Energy Efficiency Design Rating, and the Solar Electric Generation and Demand Flexibility Design Rating. The total Energy Design Rating shall account for both the Energy Efficiency Design Rating and the Solar Electric Generation and Demand Flexibility Design Rating. The proposed building shall separately comply with the Source Energy Design Rating, Energy Efficiency Design Rating and the Total Energy Design Rating. A building complies with the performance approach if the TDV energy budget calculated for the proposed design building is no greater than the TDV energy budget calculated for the Standard Design Building with an EDR1 compliance margin of at least 9, relative to the Source Energy Design Rating 1 calculated for the Standard Design building.
EXCEPTION 1 to Section 150.1(b)1. A community shared solar electric generation system, or other renewable electric generation system, and/or community shared battery storage system, which provides dedicated power, utility energy reduction credits, or payments for energy bill reductions, to the permitted building and is approved by the Energy Commission as specified in Title 24, Part 1, Section 10-115, may offset part or all of the solar electric generation system and demand flexibility Energy Design Rating required to comply with the Standards, as calculated according to methods established by the Commission in the Residential ACM Reference Manual.
EXCEPTION 2 to Section 150.1(b)1. A newly constructed building that does not require a PV system in accordance with section 150.1(c)14 does not need a Source Energy compliance margin of at least 9, relative to the Source Energy Design Rating 1 calculated for the Standard Design building.
EXCEPTION 3 to Section 150.1(b)1. The following types of new construction statewide exemption accessory dwelling units are not required to meet the performance standards in 150.1(b)1:
1. One accessory dwelling unit per lot with a proposed single-unit building, including a singlefamily dwelling, or a townhome, or a detached residential condominium or apartment unit on a lot with multiple single-unit buildings, if all of the following apply:
i. The accessory dwelling unit is within the proposed space of a single-unit building. ii. The accessory dwelling unit has an exterior entrance separate from that of the primary dwelling unit.
iii. The side and rear setbacks are sufficient for fire and safety.
2. One detached, new construction accessory dwelling unit per lot that meets the following standards:
i. The accessory dwelling unit shall be located on a lot with a proposed or existing singleunit building, including a single-family dwelling, or a townhome, or a detached residential condominium or apartment unit on a site with multiple single-unit buildings. ii. The accessory dwelling unit size shall not exceed 800 square feet in floor area. iii. Interior side yard and rear yard setbacks shall be at least four feet. iv. The accessory dwelling unit shall meet one of the following height limitations as measured to the roof peak:
1. A height of 16 feet; or
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2. A height of 18 feet if the accessory dwelling unit is on a lot within one-half of one 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. This height can be increased an additional two feet to twenty feet to accommodate a roof pitch on the accessory dwelling unit that is aligned with the roof pitch of the primary dwelling unit.
3. One junior accessory dwelling unit per lot zoned to allow single-family dwellings and within the walls of a proposed single-unit building, including a single-family dwelling, townhome, or detached residential condominium or apartment unit on a lot with multiple detached singleunit dwellings.
2. Additions and Alterations to Existing Buildings. The Energy Budget for additions and alterations is expressed in terms of TDV energy.
3. Section (b)(3) is adopted without modification.
(c) Section (c) is adopted without modification.
Section 150.2(a) [ENERGY EFFICIENCY STANDARDS FOR ADDITIONS AND ALTERATIONS TO EXISTING SINGLE FAMILY RESIDENTAL BUILDINGS] is modified to read as follows:
Additions. Additions to existing single-family residential buildings shall meet the requirements of Sections 110.0 through 110.9, Sections 150.0(a) through (n), (p), (q), (w), and either Section 150.2(a)1 or 2.
Section 150.2(b) [ENERGY EFFICIENCY STANDARDS FOR ADDITIONS AND ALTERATIONS TO EXISTING SINGLE FAMILY RESIDENTAL BUILDINGS] is modified to read as follows:
Alterations. Alterations to existing single-family residential buildings or alterations in conjunction with a change in building occupancy to a single-family residential occupancy shall meet either Item 1 or 2 below.
1. Prescriptive approach. The altered component and any newly installed equipment serving the alteration shall meet the applicable requirements of Sections 110.0 through 110.9 and all applicable requirements of Sections 150.0(a) through (l), 150.0(m)1 through 150.0 (m)10, 150.0(p) through (q), and 150.0 (w); and
2. Performance approach. The altered component(s) and any newly installed equipment serving the alteration shall meet the applicable requirements of Subsections A, B, and C below.
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A. The altered components shall meet the applicable requirements of Sections 110.0 through 110.9, Sections 150.0(a) through (l), Sections 150.0(m)1 through 150.0 (m)10, Sections 150.0(p) through (q), and Section 150.0(w). Entirely new or complete replacement mechanical ventilation systems as these terms are used in Section 150.2(b)1L, shall comply with the requirements in Section 150.2(b)1L. Altered mechanical ventilation systems shall comply with the requirements of Section 150.2(b)1M. Entirely new or complete replacement space-conditioning systems, and entirely new or complete replacement duct systems, as these terms are used in Sections 150.2(b)1C and 150.2(b)1Diia, shall comply with the requirements of Sections 150.0(m)12 and 150.0(m)13.
Section 160.4 of the CEnC is amended to remove subsection (a) as follows:
(a) Reserved.
Sections (b) to (f) are adopted without amendments.
Section 160.9 Sections (a) to (c) of the CEnC are adopted without amendments. Sections (d) and (e) are added as follows:
(d) Systems using gas or propane water heaters to serve individual dwelling units shall include the following:
1. A dedicated 125-volt, 20-amp electrical receptacle that is connected to the electric panel with a 120/240-volt 3 conductor, copper branch circuit rated to 30 amps, within 3 feet from the water heater and accessible to the water heater with no obstructions.
A. Both ends of the unused conductor shall be labeled with the word “spare” and be electrically isolated.
B. A reserved single pole circuit breaker space in the electrical panel adjacent to the circuit breaker for the branch circuit in (A) above shall be included and labeled with the words “Future 240V Use.”
2. A condensate drain that is no more than 2 inches higher than the base of the installed water heater, and allows natural draining without pump assistance.
3. Construction drawings that indicate the reserved location of the future heat pump water heater with minimum interior dimensions of 39” x 39” x 96.”
4. A ventilation method that incorporates one of the following:
A. A space reserved for the future heat pump water heater with a volume of at least 700 cu. ft.
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B. A space reserved for the future heat pump water heater that vents to a communicating space in the same pressure boundary via permanent openings with a minimum total net free area of 250 sq. in., so that the total combined volume connected via permanent openings is 700 cu. ft. or greater. The permanent openings shall be:
i. Fully louvered doors with fixed louvers consisting of a single layer of fixed flat slats; or ii. Two permanent fixed openings, consisting of a single layer of fixed flat slat louvers or grilles, one commencing within 12 inches from the top of the enclosure and one commencing within 12 inches from the bottom of the enclosure.
C. A space reserved for the future heat pump water heater that includes two 8” capped ducts, venting to the building exterior.
i. All duct connections and building penetrations shall be sealed. ii. Exhaust air ducts and all ducts that cross pressure boundaries shall be insulated to a minimum insulation level of R-6 in compliance with California Mechanical Code 502.0. iii. Airflow from termination points shall be diverted away from each other. (e) Central Heat Pump Water Heater Electric Ready. Water heating systems using gas or propane to serve multiple dwelling units shall meet the requirements of 160.9(e) and include the following for the future heat pump:
1. A system input capacity of the gas or propane water heating system that is determined as the sum of the input gas or propane capacity of all water heating devices associated with each gas or propane water heating system.
2. A space reserved that includes and complies with the following:
A. Heat Pump. The minimum space reserved shall include space for service clearances, air flow clearances, and compliant working spaces. Additionally, unless the space reserved is sufficient to support a heat pump water heater system that meets the total building hot water demand as calculated and documented by the responsible person associated with the project, the space reserved shall comply with the following:
i. If the system input capacity of the gas water heating system is less than 200,000 BTU/HR, the minimum space reserved for the heat pump shall be 2.0 square feet per input 10,000 BTU/ HR of the gas or propane water heating system, and the minimum dimension of reserved spaces shall be 48 inches.
ii. If the system input capacity of the gas water heating system is greater than or equal to 200,000 BTU/HR, the minimum space reserved for the heat pump shall be 3.6 square feet per input 10,000 BTU/ HR of the gas or propane water heating system, and the minimum dimension of reserved spaces shall be 84 inches.
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B. Tanks. The minimum space reserved shall include space for service clearances and keep outs.
Additionally, unless the space reserved is sufficient to support a heat pump water heater system that meets the total building hot water demand as calculated and documented by the responsible person associated with the project, the space reserved shall comply with the following:
i. If the system input capacity of the gas water heating system is less than 200,000 BTU/HR, the minimum space reserved for the storage and temperature maintenance tanks shall be 4.4 square feet per input 10,000 BTU/HR. of the gas or propane water heating system. ii. If the system input capacity of the gas water heating system is greater than or equal to 200,000 BTU/HR, the minimum physical space reserved for the storage and temperature maintenance tanks shall be 3.1 square feet per input 10,000 BTU/HR. of the gas or propane water heating system.
3. Ventilation, which shall be provided by including the following:
A. A physical space reserved for the heat pump located outside, or B. A pathway reserved for future routing of supply and exhaust air via ductwork from the reserved heat pump location to an appropriate outdoor location. Penetrations through the building envelope for louvers and ducts shall be planned and identified for future use. Additionally, unless the reserved pathway and penetrations are sized to serve a heat pump water heater system that meets the total building hot water demand as calculated and documented by the responsible person associated with the project, the reserved pathway and penetrations through the building envelope shall be sized to comply with one of the following:
i. If the system input capacity of the gas water heating system is less than 200,000 BTU/HR, the minimum air flow rate shall be 70 CFM per input 10,000 BTU/HR of the gas or propane water heating system and the total external static pressure drop of ductwork and louvers shall not exceed
0.17” when the future heat pump water heater is installed. ii. If the system input capacity of the gas water heating system is greater than or equal to 200,000 BTU/HR, the minimum air flow rate shall be 420 CFM per input 10,000 BTU/HR of the gas or propane water heating system and the total external static pressure drop of ductwork and louvers shall not exceed 0.17” when the future heat pump water heater is installed.
4. Condensate drainage piping. An approved receptacle that is sized in accordance with the California Plumbing Code to receive the condensate drainage shall be installed within 3 feet of the reserved heat pump location, or piping shall be installed from within 3 feet of the reserved heat pump location to an approved discharge location that is sized in accordance with the California Plumbing Code. Additionally, unless the condensate drainage receptacles and piping are sized to serve a heat pump water heater system that meets the total building hot water demand as calculated and documented by the responsible person associated with the project, the condensate drainage shall comply with the following:
A. If the system input capacity of the gas water heating system is less than 200,000 BTU/HR, condensate drainage shall be sized for 0.2 tons of refrigeration capacity per input 10,000 BTU/HR.
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B. If the system input capacity of the gas water heating system is greater than or equal to 200,000 BTU/HR, condensate drainage shall be sized for 0.7 tons of refrigeration capacity per input 10,000 BTU/HR.
5. Electrical.
A. Physical space shall be reserved on the bus system of the main switchboard or on the bus system of a distribution board to serve the future heat pump water heater system including the heat pump and temperature maintenance tanks. In addition, the physical space reserved shall be capable of providing adequate power to the future heat pump water heater as follows:
i. Heat Pump. For the Heat Pump, the physical space reserved shall comply with one of the following:
a. If the system input capacity of the gas water heating system is less than 200,000 BTU/HR, provide 0.1 kVA per input 10,000 BTU/HR.
b. If the system input capacity of the gas water heating system is greater than or equal to 200,000 BTU/HR, provide 1.1 kVA per input 10,000 BTU/HR.
c. The physical space reserved supplies sufficient electrical power required to power a heat pump water heater system that meets the total building hot water demand as calculated and documented by the responsible person associated with the project.
ii. Temperature Maintenance Tank. For the Temperature Maintenance Tank, the physical space reserved shall comply with one of the following:
a. If the system input capacity of the gas water heating system is less than 200,000 BTU/HR, provide 1.0 kVA per input 10,000 BTU/HR.
b. If the system input capacity of the gas water heating system is greater than or equal to 200,000 BTU/HR, provide 0.6 kVA per input 10,000 BTU/HR.
c. The physical space reserved supplies sufficient electrical power required to power a heat pump water heater system that meets the total building hot water demand as calculated and documented by the responsible person associated with the project.
The building electrical system shall be sized to meet the future electric requirements of the electric ready equipment specified in sections 160.9(a) – 160.9(e). To meet this requirement the building main service conduit, the electrical system to the point specified in each subsection, and any onsite distribution transformers shall have sufficient capacity to supply full rated amperage at each electric ready appliance in accordance with the California Electric Code.
Section 170.1 of the CEnC is adopted with amendments as follows:
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A building complies with the performance approach if the TDV energy budget calculated for the proposed design building under Subsection (b) is no greater than the TDV energy budget calculated for the Standard Design Building under Subsection (a). Additionally,
1. The source energy budget of a newly constructed low-rise multifamily building shall be at least 10% lower than that of the Standard Design Building.
2. The source energy budget of a newly constructed high-rise multifamily building shall be at least 4% lower than that of the Standard Design Building.
Sub-sections (a) to (d) are adopted without amendments.
Section 2. If any section or portion of this ordinance is found to be invalid by a court of competent jurisdiction, such finding shall not affect the validity of the remainder of the ordinance, which shall continue in full force and effect.
Section 3. This ordinance shall take effect and be in full force thirty (30) days after final adoption.
PASSED FOR PUBLICATION this 10th day of December 2024, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
APPROVED: __________________________
Fred Keeley, Mayor
ATTEST: ___________________________
Bonnie Bush, City Clerk Administrator
PASSED FOR FINAL ADOPTION this 14th day of January 2025 by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
APPROVED: __________________________
Fred Keeley, Mayor
ATTEST: ___________________________
Bonnie Bush, City Clerk Administrator
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This is to certify that the above
and foregoing document is the
original of Ordinance No. 2024-XX
and that it has been published or
posted in accordance with the
Charter of the City of Santa Cruz.
___________________________
City Clerk Administrator
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ORDINANCE NO.
AN ORDINANCE OF THE CITY OF SANTA CRUZ AMENDING SANTA CRUZ MUNICIPAL CODE SECTION 18.15.040 – ENERGY CODE - MODIFICATIONS TO
MAINTAIN CONSISTENCY WITH NEW STATE REGULATIONS FOR ACCESSORY DWELLING UNITS. (CEQA: CONSISTENT WITH THE NEGATIVE DECLARATION APPROVED FOR THE CITY OF SANTA CRUZ 2030 CLIMATE ACTION PLAN ADOPTED BY CITY COUNCIL ON SEPTEMBER 13, 2022, EXEMPT PURSUANT TO CEQA GUIDELINES SECTION 15061(b)(3) AS A PROJECT THAT WITH CERTAINTY
DOES NOT HAVE A SIGNIFICANT EFFECT ON THE ENVIRONMENT, AND EXEMPT PURSUANT TO CEQA GUIDELINES SECTION 15308 AS AN ACTION BY A REGULATORY AGENCY FOR PROTECTION OF NATURAL RESOURCES.) WHEREAS, accessory dwelling units contribute needed housing to the community’s housing stock and provide housing for family members, students, the elderly, in-home health care providers, the disabled, and others within existing neighborhoods, and homeowners who create accessory dwelling units may benefit from added income and an increased sense of security; and WHEREAS, on September 19, 2024, SB 1211 (Skinner) was signed into law, making changes to requirements for parking associated with accessory dwelling unit development, increasing the number of statewide exemption accessory dwelling units allowed on sites with multi-family buildings, and limiting the standards that can be applied to statewide exemption accessory dwelling units; and
WHEREAS, amendments to municipal code requirements related to accessory dwelling units are needed to maintain consistency with state law; and WHEREAS, Public Resources Code Section 25402.1 (h)(2) allows local agencies to adopt local amendments that are cost-effective and that require greater energy reduction/conservation than the California Energy Code; and
WHEREAS, the California Energy Codes and Standards Statewide Utility Program, has determined specific modifications to the 2022 State Energy Code for each climate zone that are cost-effective; and that such modifications will result in designs that consume less energy than they would under the 2022 State Energy Code; and
WHEREAS, staff has reviewed the “2024 Existing Building Cost-Effectiveness Study” and associated data, and find them sufficient to illustrate compliance with the requirements set forth under California Administrative Code Chapter 10-106; and WHEREAS, based on these studies, the City finds the proposed local amendments to the 2022 California Energy Code to be cost-effective and consume less energy than permitted by Title 24, Part 6; and
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WHEREAS, the 2022 California Energy Code offers compliance options that were established through the public rulemaking process of the code update; and WHEREAS, the Council expressly declares that the proposed amendments to the Energy Code are reasonably necessary because of local climatic, topological, and geological conditions; and
WHEREAS, the requirements specified in this Ordinance were reviewed via public comment and through a publicly noticed public hearing process; and WHEREAS, The municipal code amendments are consistent with the Negative Declaration approved for the City of Santa Cruz 2030 Climate Action Plan adopted by City Council on September 13, 2022, and therefore, no further environmental review under the California Environmental Quality Act (CEQA) is required; the amendments are exempt from CEQA under the general rule, 15061(b)(3), because it can be seen with certainty that the provisions contained herein would not have the potential for causing a significant effect on the environment; and, this ordinance is exempt per CEQA Guidelines Section 15308, Class 8, Actions by Regulatory Agencies for Protection of Natural Resources, since the proposed ordinance would institute regulatory requirements intended to protect the environment and natural resources.
BE IT ORDAINED By the City of Santa Cruz as follows:
Section 1. Section 18.15.040 of Chapter 18.15 of the Santa Cruz Municipal Code regarding Energy Code – Modifications is hereby amended to read as follows:
18.050.040 ENERGY CODE – MODIFICATIONS.
The following sections of the code as adopted in Section 18.15.030 are hereby modified as follows:
Section 100.1(b) of the CEnC is amended to add the following:
ELECTRIC HEATING APPLIANCE. A device that produces heat energy to create a warm environment by the application of electric power to resistance elements, refrigerant compressors, or dissimilar material junctions, as defined in the California Mechanical Code.
MAJOR ADDITION is any change to an existing building that increases conditioned floor area by 350 or more square feet in a one-year period.
MAJOR ALTERATION is any construction or renovation to an existing structure other than a repair whose altered components cover 350 or more square feet in a one-year period. A project that consists only of roof and/or fenestration replacement is not considered a major alteration.
NET FREE AREA (NFA) is the total unobstructed area of the air gaps between louver and grille slats in a vent through which air can pass. The narrowest distance between two slats, perpendicular
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to the surface of both slats is the air gap height. The narrowest width of the gap is the air gap width.
The NFA is the air gap height multiplied by the air gap width multiplied by the total number of air gaps between slats in the vent.
Section 130.0 of the CEnC is amended to read as follows:
a) The design and installation of all lighting systems and equipment in nonresidential and hotel/motel buildings, outdoor lighting, and electrical power distribution systems within the scope of Section 100.0(a), shall comply with the applicable provisions of Sections 130.0 through 130.6.
NOTE: The requirements of Sections 130.0 through 130.6 apply to newly constructed buildings.
Section 141.0 specifies which requirements of Sections 130.0 through 130.6 also apply to additions and alterations to existing buildings.
Subchapter 4 of the CEnC is amended to add Section 130.6 to be numbered, entitled, and to read as follows:
130.6 Electric Readiness Requirements for Systems Using Gas or Propane Where nonresidential systems using gas or propane are installed, construction drawings shall indicate electrical infrastructure and physical space accommodating the future installation of an electric heating appliance by including the following, as certified by a registered design professional or licensed electrical contractor:
a) Branch circuit wiring, electrically isolated and designed to serve all electric heating appliances in accordance with manufacturer requirements and the California Electrical Code, including the appropriate voltage, phase, minimum amperage, and an electrical receptacle or junction box within five feet of the appliance that is accessible with no obstructions. Appropriately sized conduit may be installed in lieu of conductors.
b) Labeling of both ends of the unused conductors or conduit that includes the terms “For Future Electrical Appliance.”
c) Reserved circuit breakers in the electrical panel for each branch circuit, appropriately labeled (e.g., “Reserved for Future Electric Range”), and positioned on the opposite end of the panel supply conductor connection.
d) Connected subpanels, panelboards, switchboards, busbars, and transformers that are sized to serve the future electric heating appliances. The electrical capacity requirements shall be adjusted for demand factors in accordance with the California Electric Code. e) Physical space for future electric heating appliances, including equipment footprint, and if needed, a pathway reserved for routing of ductwork to heat pump evaporator(s), all of which shall be depicted on the construction drawings. The footprint necessary for future electric heating appliances may overlap with non-structural partitions and with the location of currently designed gas-fueled equipment.
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Section 140.0 of the CEnC is amended to read as follows:
Nonresidential and hotel/motel buildings shall comply with all of the following:
a) The requirements of Sections 100.0 through 110.12 applicable to the building project (mandatory measures for all buildings).
b) The requirements of Sections 120.0 through 130.6 (mandatory measures for nonresidential and high-rise residential and hotel/motel buildings).
c) Either the performance compliance approach (energy budgets) specified in Section 140.1 or the prescriptive compliance approach specified in Section 140.2. for the climate zone in which the building will be located. Climate zones are shown in Figure 100.1-A.
NOTE to Section 140.0(c): The Commission periodically updates, publishes, and makes available to interested persons and local enforcement agencies precise descriptions of the Climate Zones, which is available by zip code boundaries depicted in the Reference Joint Appendices along with a list of the communities in each zone.
NOTE to Section 140.0: The requirements of Sections 140.1 through 140.10 apply to newly constructed buildings. Section 141.0 specifies which requirements of Section 140.1 through 140.10 also apply to additions or alterations to existing buildings.
Section 140.1 of the CEnC is amended to read as follows:
The following conditions are necessary for a building to comply with the performance approach:
1. The time-dependent valuation (TDV) energy budget calculated for the proposed design building under Subsection (b) is no greater than the TDV energy budget calculated for the Standard Design Building under Subsection (a); and
2. The source energy budget calculated for the proposed design building under Subsection (b) has a source energy compliance margin, relative to the energy budget calculated for the standard design building under Subsection (a), of at least 7 percent for all nonresidential occupancies.
EXCEPTION 1 to 140.1 item 2 A source energy compliance margin of at least 7 percent is not required when nonresidential occupancies are designed with single zone space-conditioning systems complying with Section 140.4(a)2.
(a) – (c): Subsections 140.1 (a) – (c) are adopted without modification.
Section 150.0 of the CEnC is amended as follows:
Single-family residential buildings shall comply with the applicable requirements of Sections 150(a) through 150.0(w).
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NOTE: The requirements of Sections 150.0 (a) through (v) apply to newly constructed buildings.
Sections 150.2(a) and 150.2(b) specify which requirements of Sections 150.0(a) through 150.0(r) also apply to additions or alterations. The City of Santa Cruz amendments to sections 150.0 (t) do not apply to additions or alterations. or the following types of new construction statewide exemption accessory dwelling units:
1. One accessory dwelling unit per lot with a proposed single-unit building, including a singlefamily dwelling, or a townhome, or a detached residential condominium or apartment unit on a lot with multiple single-unit buildings, if all of the following apply:
i. The accessory dwelling unit is within the proposed space of a single-unit building. ii. The accessory dwelling unit has an exterior entrance separate from that of the primary dwelling unit.
iii. The side and rear setbacks are sufficient for fire and safety.
2. One detached, new construction accessory dwelling unit per lot that meets the following standards:
i. The accessory dwelling unit shall be located on a lot with a proposed or existing singleunit building, including a single-family dwelling, or a townhome, or a detached residential condominium or apartment unit on a site with multiple single-unit buildings. ii. The accessory dwelling unit size shall not exceed 800 square feet in floor area. iii. Interior side yard and rear yard setbacks shall be at least four feet. iv. The accessory dwelling unit shall meet one of the following height limitations as measured to the roof peak:
1. A height of 16 feet; or
2. A height of 18 feet if the accessory dwelling unit is on a lot within one-half of one 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. This height can be increased an additional two feet to twenty feet to accommodate a roof pitch on the accessory dwelling unit that is aligned with the roof pitch of the primary dwelling unit.
3. One junior accessory dwelling unit per lot zoned to allow single-family dwellings and within the walls of a proposed single-unit building, including a single-family dwelling, townhome, or detached residential condominium or apartment unit on a lot with multiple detached single-unit dwellings.
(a) – (s): Subsections 150.0(a) – (s) are adopted without modification. (t) Heat pump space heater ready. Systems using a gas or propane furnace to serve individual dwelling units shall include the following:
1. A dedicated 240-volt branch circuit wiring shall be installed within 3 feet from the furnace and accessible to the furnace with no obstructions. The branch circuit conductors shall be rated at 30 amps minimum. The blank cover shall be identified as “240V ready.” All electrical components shall be installed in accordance with the California Electrical Code.
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2. The main electrical service panel shall have a reserved space to allow for the installation of a double pole circuit breaker for a future heat pump space heater installation. The reserved space shall be permanently marked as “For Future 240V use.”
3. A designated exterior location for a future heat pump compressor unit with either a drain or natural drainage for condensate and adequate space to maintain the equipment in accordance with California Mechanical Code 304.1 & California Electrical Code 110.26. (u) – (v): Subsections 150.0(u) – (v) are adopted without modification.
Section 150.0(w) is added to read as follows:
(w) Mandatory Requirements for Existing Building Additions and Alterations. Existing Building Additions and Alterations shall meet the requirements of Items 1 through 3 below, as applicable:
1. Major addition. Any major addition shall require installation of a set of measures from the Measure Menu Table, Table 150.0-I to achieve a total score that is equal to or greater than
9. In addition, all mandatory measures listed in Table 150.0-I shall be installed. Measure verification shall be explicitly included as an addendum to the Certificate of Compliance to be filed pursuant to 2022 Title 24 Section 10-103. Installed measures shall meet the specifications in Table 150.0-J.
2. Major alteration. Any major alteration shall require installation of a set of measures from the Measure Menu Table, Table 150.0-I to achieve a total score that is equal to or greater than 9. In addition, all mandatory measures listed in Table 150.0-I shall be installed.
Measure verification shall be explicitly included as an addendum to the Certificate of Compliance to be filed pursuant to 2022 Title 24 Section 10-103. Installed measures shall meet the specifications in Table 150.0-J.
3. Combination alterations and additions. Any project that includes an addition and alteration whose altered components cover 350 square feet or greater shall require installation of a set of measures from the Measure Menu Table, Table 150.0-I to achieve a total score that is equal to or greater than 9. In addition, all mandatory measures listed in Table 150.0-I shall be installed. Measure verification shall be explicitly included as an addendum to the Certificate of Compliance to be filed pursuant to 2022 Title 24 Section 10-103. Installed measures shall meet the specifications in Table 150.0-J.
4. Water heating system electric readiness. Any project that includes a major addition, major alteration, or combination alteration and addition that requires water heating system electric readiness shall meet Item A below:
a. Systems using gas or propane water heaters to serve individual dwelling units shall designate a space at least 2.5 feet by 2.5 feet wide and 7 feet tall suitable for the future installation of a heat pump water heater (HPWH). All electrical components shall be installed in accordance with the California Electrical Code. The space shall include the following:
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i. A dedicated 125 volt, 20 amp electrical receptacle that is connected to the electric panel with a 120/240 volt 3 conductor, 10 AWG copper branch circuit, within 3 feet from the water heater and accessible to the water heater with no obstructions; and ii. Both ends of the unused conductor shall be labeled with the word “spare” and be electrically isolated; and
iii. A reserved single pole circuit breaker space in the electrical panel adjacent to the circuit breaker for the branch circuit in A above and labeled with the words “Future Use”; and iv. A condensate drain that is no more than 2 inches higher than the base of the installed water heater, and allows natural draining without pump assistance. v. A condensate drain that is no more than 2 inches higher than the base of the installed water heater, and allows natural draining without pump assistance.
Exception 1 to Section 150.0(w): The project is the result of a repair as defined by Title 24 Part 2 Section 202.
Exception 2 to Section 150.0(w): If compliance costs exceed 20% of total project valuation or due to conditions specific to the project, it is technically infeasible to achieve compliance through any available set of measures, the applicant may request an exemption as set forth below. In applying for an exemption, the burden is on the applicant to show hardship or infeasibility.
1. Application. Based on the following, the applicant shall identify in writing the specific requirements of the standards for compliance that the project is unable to achieve and the circumstances that make it a hardship or infeasible for the project to comply with this chapter. The applicant may not petition for relief from any requirement of the 2022 California Energy Code (Title 24, Part 6) and referenced standards, or the 2022 California Green Building Standards (Title 24, Part 11) of the California Building Standards Code. Circumstances that constitute hardship or infeasibility shall include one of the following:
i. That the cost of achieving compliance is disproportionate to the overall cost of the project; ii. That it is technically infeasible to achieve compliance through all packages due to conditions specific to the project; That strict compliance with these standards would create or maintain a hazardous condition(s) and present a life safety risk to the occupants. (2) Granting of exemption. If the chief building official determines that it is a hardship or infeasible for the applicant to fully meet the requirements of this chapter and that granting the requested exemption will not cause the building to fail to comply with the 2022 California Energy Code
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(Title 24, Part 6) and referenced standards, or the 2022 California Green Building Standards (Title 24, Part 11) of the California Building Standards Code, the chief building official shall determine the minimum feasible threshold of compliance reasonably achievable for the project. If an exemption is granted, the applicant shall be required to comply with this chapter in all other respects and shall be required to achieve the threshold of compliance determined to be achievable by the chief building official.
(3) Denial of exemption. If the chief building official determines that it is reasonably possible for the applicant to fully meet the requirements of this chapter, the request shall be denied, and the applicant shall be notified of the decision in writing. The project and compliance documentation shall be modified to comply with the standards for compliance. (4) Appeal. Any aggrieved applicant or person may appeal the determination of the chief building official regarding the granting or denial of an exemption or compliance with any other provision of this chapter. An appeal of a determination of the chief building official shall be filed in writing with the Board of Building and Fire Appeals.
Exception 3 to Section 150.0(w): If the dwelling unit has previously installed measures from the Measure Menu, Table 150.0-I, and compliance can be demonstrated to the building official, then these measures shall not be required to be newly installed, and appropriate credit shall be included in the applicable compliance calculations.
Exception 4 to Section 150.0(w): The applicant may request an exemption to any requirements of this chapter which would impair the historic integrity of any building listed on a local, state, or federal register of historic structures, as determined by the Planning Director or designee and as regulated by the California Historic Building Code (Title 24, Part 8). In making a determination of exemption, the Planning Director or designee may require the submittal of an evaluation by an architectural historian or similar expert.
Exception 5 to Section 150.0(w): An alteration that consists solely of seismic safety improvements.
Exception 6 to Section 150.0(w): Buildings which are temporary (such as construction trailers).
Exception 7 to Section 150.0(w): An alteration that consists solely of roof and/or fenestration projects.
Exception 8 to Section 150.0(w): Mobile Homes, Manufactured Housing, or Factory-built Housing as defined in Division 13 of the California Health and Safety 12 Code (commencing with Section 17000 of the Health and Safety Code).
Exception 9 to Section 150.0(w): One accessory dwelling unit and one junior accessory dwelling unit per lot with a proposed or existing single-family dwelling if all of the following apply:
(1) 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 and
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may include an expansion of not more than 150 square feet beyond the same physical dimensions as the existing accessory structure. An expansion beyond the physical dimensions of the existing accessory structure shall be limited to accommodating ingress and egress. (2) The space has exterior access from the proposed or existing single-family dwelling. (3) The side and rear setbacks are sufficient for fire and safety.
Exception 10 to Section 150.0(w): Where the project includes an accessory dwelling unit or junior accessory dwelling unit that is attached to the primary dwelling unit, either as a new addition or converted from within the space of the primary dwelling unit, and there is not an additional combination alteration/addition to the primary dwelling unit of at least 350 square feet, then the primary dwelling unit is exempt from the requirements.
New Table 150.0-I is added to read as follows:
Table 150.0-I: Measure Menu
Measures Table 150.0-J ID Points
Water Heating Package E1 1
Induction Cooktop E2 1
Heat Pump Clothes Dryer E3 1
Air Sealing E4 2
Duct Sealing E5 3
R-49 Attic Insulation E6 4
Windows E7 4
R-13 Wall Insulation E8 5
New Ducts + Duct Sealing E9 6
R-19 Floor Insulation E10 9
R-30 Floor Insulation E11 10
Heat Pump Water Heater (HPWH) E12 12
Solar PV + Electric Ready Pre-Wire E13 13
Heat Pump Space Heater E14 18
Utility Room, Kitchen & Laundry-Related
Electric Ready Pre-Wire M1 Mandatory
Panel-Related Electric Ready Pre-Wire M2 Mandatory
Note: the measures in the Measure Menu table shall conform to the specifications in Table 150.0-J
New Table 150.0-J is added to read as follows:
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Table 150.0-J: Measure Specifications
ID Measure Specification
General Measures
E1 Water Heating Package: Add exterior insulation meeting a minimum of R-6 to existing storage water heaters. Insulate all accessible hot water pipes with pipe insulation a minimum of ¾ inch thick. This includes insulating the supply pipe leaving the water heater, piping to faucets underneath sinks, and accessible pipes in attic spaces or crawlspaces.
Upgrade fittings in sinks and showers to meet current California Green Building Standards Code (Title 24, Part 11) Section 4.303 water efficiency requirements.
Water heaters 20 gallons or less, or water heaters that are not able to add exterior insulation may not take credit for this measure.
Exception 1: Water heater blanket is not required on water heaters less than 20 gallons.
Exception 2: Water heater blanket not required if application of a water heater blanket voids the warranty on the water heater.
Exception 3: Upgraded fixtures are not required if existing fixtures have rated or measured flow rates of no more than ten percent greater than 2022 California Green Building Standards Code (Title 24, Part 11) Section 4.303 water efficiency requirements.
Exception 4: Water heaters with factory installed insulation of R-24 or greater E2 Heat Pump Space Heater: Replace all existing gas and electric resistance space heating systems with an electric-only heat pump system.
E3 Induction Cooktop: Replace existing gas and electric resistance stove top with inductive stove top and cap the gas line.
E4 Air Sealing: Seal all accessible cracks, holes, and gaps in the building envelope at walls, floors, and ceilings. Pay special attention to penetrations including plumbing, electrical, and mechanical vents, recessed can light luminaires, and windows. Weather-strip doors if not already present. Verification shall be conducted by a certified HERS Rater that either:
a) shows at least a 30 percent reduction from pre-retrofit conditions; or b) shows that the number of air changes per hour at 50 Pascals pressure difference (ACH50) does not exceed ten for Pre-1978 vintage buildings, seven for 1978 to 1991 vintage buildings and five for 1992-2010 vintage buildings. Compliance can also be demonstrated with blower door testing conducted by a certified HERS Rater no more than three years prior to the permit application date showing compliance with condition (a) or (b).
If combustion appliances are located within the pressure boundary of the building, conduct a combustion safety test by a professional certified by the Building Performance Institute in accordance with the ANSI/BPI-1200-S-2017 Standard Practice for Basic Analysis of Buildings, the Whole House Combustion Appliance Safety Test Procedure for the
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Comfortable Home Rebates Program 2020 or the California Community Services and Development Combustion Appliance Safety Testing Protocol.
Reducing the air leakage of a building can reduce the building’s drying potential. When improving the air sealing of a building, consider if there is a need to add continuous ventilation to the building (if not already present).
E5 Duct Sealing: Air seal all space conditioning ductwork to meet the requirements of the 2022 Title 24 Section 150.2(b)1E. The duct system must be tested by a HERS Rater no more than three years prior to the alteration or addition permit application date to verify the duct sealing and confirm that the requirements have been met. This measure may not be combined with the New Ducts and Duct Sealing measure in this Table. Dwelling units without ductwork or where the ducts are in conditioned space may not take credit for this measure.
E6 R-49 Attic Insulation: Attic insulation shall be installed to achieve a weighted assembly U-factor of 0.020 or insulation installed at the ceiling level shall have a thermal resistance of R-49 or greater for the insulation alone. Recessed downlight luminaires in the ceiling shall be covered with insulation to the same depth as the rest of the ceiling. Luminaires not rated for insulation contact must be replaced or fitted with a fire-proof cover that allows for insulation to be installed directly over the cover.
Exception: In buildings where existing R-30 is present and existing recessed downlight luminaires are not rated for insulation contact, insulation is not required to be installed over the luminaires.
E7 Windows: Replace at least 50% of existing windows with high performance windows with an area-weighted average U-factor no greater than 0.30.
E8 R-13 Wall Insulation: Install wall insulation in all exterior walls to achieve a weighted Ufactor of 0.102 or install wall insulation in all exterior wall cavities that shall result in an installed thermal resistance of R-13 or greater for the insulation alone.
E9 New Ducts + Duct Sealing: Replace existing space conditioning ductwork with new R-8 ducts that meet the requirements of 2022 Title 24 Section 150.0(m)11. This measure may not be combined with the Duct Sealing measure in this Table. To qualify, a preexisting measure must have been installed no more than three years before the alteration or addition permit application date.
E10 R-19 Floor Insulation: Raised-floors shall be insulated such that the floor assembly has an assembly U-factor equal to or less than U-0.037, or shall be insulated between wood framing with insulation having an R-value equal to or greater than R-19. This measure cannot be combined with measure R-30 Floor insulation.
E11 R-30 Floor Insulation: Raised-floors shall be insulated such that the floor assembly has an assembly U-factor equal to or less than U-0.028, or shall be insulated between wood framing with insulation having an R-value equal to or greater than R-30. This measure cannot be combined with measure R-19 Floor insulation.
E12 Heat Pump Water Heater (HPWH): Replace existing electric resistance or natural gas storage water heater with a heat pump water heater.
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E13 PV and Electric Ready Pre-Wire: Install a solar PV system that meets the requirements of 2022 Title 24 Section 150.1(c)14.
In addition to the solar PV system, comply with the water heating system electric readiness requirements per Section 150.0(w)4and the heat pump space heaters requirements per Section 150.0(t) and one of the following:
A. Energy Storage Systems (ESS) Ready, as specified in Section 150.0(s), or B. EV Charger Ready as specified in the California Green Building Code, Title 24, Part 11, Section A4.106.8.1, which otherwise applies to new construction.
Exception 1: In buildings where the designated space requirement specified in Section 150.0(n)1 can be demonstrated to the building official as infeasible, the electric readiness components per Section 150.0(n)1 are not required.
Mandatory Measures
M1 Utility Room, Kitchen & Laundry-Related Electric Ready Pre-Wire: Where the project includes a kitchen remodel, comply with the electric cooktop ready requirement, as specified in Section 150.0(u). Where the project includes a laundry room remodel, comply with the electric clothes dryer ready requirement, as specified in Section 150.0(v). Where the project includes a utility room remodel, comply with the water heating system electric readiness requirements per Section 150.0(w)4and the heat pump space heater electric readiness requirements per Section 150.0(t):
Exception 1: If an electrical permit is not otherwise required for the project other than compliance with this measure.
Exception 2: If a utility service upgrade is not otherwise required for the project other than compliance with this measure.
Exception 3: In buildings where the designated space requirement specified in Section 150.0(w)4can be demonstrated to the building official as infeasible, the electric readiness components per Section 150.0(w)4are not required.
M2 Panel-Related Electric Ready Pre-Wire: Where the project includes a new electrical panel and electrical service upgrade to 200A or more, comply with the water heating systems electric readiness requirements per Section 150.0(w)4 and the heat pump space heater electric readiness requirements per Section 150.0(t).
Exception 1: In buildings where the designated space requirement specified in Section (150.0(w)4can be demonstrated to the building official as infeasible, the electric readiness components per Section 150.0(w)4 are not required.
Section 150.1 of the CEnC is amended to read as follows:
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(a) Section (a) is adopted without modification.
(b) Performance Standards. A building complies with the performance standards if the energy consumption calculated for the proposed design building is no greater than the energy budget calculated for the standard design building using Commission-certified compliance software as specified by the Alternative Calculation Methods Approval Manual.
1. Newly Constructed Buildings. The Energy Budget for newly constructed buildings is expressed in terms of the Energy Design Ratings, which are based on source energy and timedependent valuation (TDV) energy. The Energy Design Rating 1 (EDR1) is based on source energy. The Energy Design Rating 2 (EDR2) is based on TDV energy and has two components, the Energy Efficiency Design Rating, and the Solar Electric Generation and Demand Flexibility Design Rating. The total Energy Design Rating shall account for both the Energy Efficiency Design Rating and the Solar Electric Generation and Demand Flexibility Design Rating. The proposed building shall separately comply with the Source Energy Design Rating, Energy Efficiency Design Rating and the Total Energy Design Rating. A building complies with the performance approach if the TDV energy budget calculated for the proposed design building is no greater than the TDV energy budget calculated for the Standard Design Building with an EDR1 compliance margin of at least 9, relative to the Source Energy Design Rating 1 calculated for the Standard Design building.
EXCEPTION 1 to Section 150.1(b)1. A community shared solar electric generation system, or other renewable electric generation system, and/or community shared battery storage system, which provides dedicated power, utility energy reduction credits, or payments for energy bill reductions, to the permitted building and is approved by the Energy Commission as specified in Title 24, Part 1, Section 10-115, may offset part or all of the solar electric generation system and demand flexibility Energy Design Rating required to comply with the Standards, as calculated according to methods established by the Commission in the Residential ACM Reference Manual.
EXCEPTION 2 to Section 150.1(b)1. A newly constructed building that does not require a PV system in accordance with section 150.1(c)14 does not need a Source Energy compliance margin of at least 9, relative to the Source Energy Design Rating 1 calculated for the Standard Design building.
EXCEPTION 3 to Section 150.1(b)1. The following types of new construction statewide exemption accessory dwelling units are not required to meet the performance standards in 150.1(b)1:
1. One accessory dwelling unit per lot with a proposed single-unit building, including a singlefamily dwelling, or a townhome, or a detached residential condominium or apartment unit on a lot with multiple single-unit buildings, if all of the following apply:
i. The accessory dwelling unit is within the proposed space of a single-unit building. ii. The accessory dwelling unit has an exterior entrance separate from that of the primary dwelling unit.
iii. The side and rear setbacks are sufficient for fire and safety.
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2. One detached, new construction accessory dwelling unit per lot that meets the following standards:
i. The accessory dwelling unit shall be located on a lot with a proposed or existing singleunit building, including a single-family dwelling, or a townhome, or a detached residential condominium or apartment unit on a site with multiple single-unit buildings. ii. The accessory dwelling unit size shall not exceed 800 square feet in floor area. iii. Interior side yard and rear yard setbacks shall be at least four feet. iv. The accessory dwelling unit shall meet one of the following height limitations as measured to the roof peak:
1. A height of 16 feet; or
2. A height of 18 feet if the accessory dwelling unit is on a lot within one-half of one 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. This height can be increased an additional two feet to twenty feet to accommodate a roof pitch on the accessory dwelling unit that is aligned with the roof pitch of the primary dwelling unit.
3. One junior accessory dwelling unit per lot zoned to allow single-family dwellings and within the walls of a proposed single-unit building, including a single-family dwelling, townhome, or detached residential condominium or apartment unit on a lot with multiple detached singleunit dwellings.
2. Additions and Alterations to Existing Buildings. The Energy Budget for additions and alterations is expressed in terms of TDV energy.
3. Section (b)(3) is adopted without modification.
(c) Section (c) is adopted without modification.
Section 150.2(a) [ENERGY EFFICIENCY STANDARDS FOR ADDITIONS AND ALTERATIONS TO EXISTING SINGLE FAMILY RESIDENTAL BUILDINGS] is modified to read as follows:
Additions. Additions to existing single-family residential buildings shall meet the requirements of Sections 110.0 through 110.9, Sections 150.0(a) through (n), (p), (q), (w), and either Section 150.2(a)1 or 2.
Section 150.2(b) [ENERGY EFFICIENCY STANDARDS FOR ADDITIONS AND ALTERATIONS TO EXISTING SINGLE FAMILY RESIDENTAL BUILDINGS] is modified to read as follows:
Alterations. Alterations to existing single-family residential buildings or alterations in conjunction with a change in building occupancy to a single-family residential occupancy shall meet either Item 1 or 2 below.
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1. Prescriptive approach. The altered component and any newly installed equipment serving the alteration shall meet the applicable requirements of Sections 110.0 through 110.9 and all applicable requirements of Sections 150.0(a) through (l), 150.0(m)1 through 150.0 (m)10, 150.0(p) through (q), and 150.0 (w); and
2. Performance approach. The altered component(s) and any newly installed equipment serving the alteration shall meet the applicable requirements of Subsections A, B, and C below.
A. The altered components shall meet the applicable requirements of Sections 110.0 through 110.9, Sections 150.0(a) through (l), Sections 150.0(m)1 through 150.0 (m)10, Sections 150.0(p) through (q), and Section 150.0(w). Entirely new or complete replacement mechanical ventilation systems as these terms are used in Section 150.2(b)1L, shall comply with the requirements in Section 150.2(b)1L. Altered mechanical ventilation systems shall comply with the requirements of Section 150.2(b)1M. Entirely new or complete replacement space-conditioning systems, and entirely new or complete replacement duct systems, as these terms are used in Sections 150.2(b)1C and 150.2(b)1Diia, shall comply with the requirements of Sections 150.0(m)12 and 150.0(m)13.
Section 160.4 of the CEnC is amended to remove subsection (a) as follows:
(a) Reserved.
Sections (b) to (f) are adopted without amendments.
Section 160.9 Sections (a) to (c) of the CEnC are adopted without amendments. Sections (d) and (e) are added as follows:
(d) Systems using gas or propane water heaters to serve individual dwelling units shall include the following:
1. A dedicated 125-volt, 20-amp electrical receptacle that is connected to the electric panel with a 120/240-volt 3 conductor, copper branch circuit rated to 30 amps, within 3 feet from the water heater and accessible to the water heater with no obstructions.
A. Both ends of the unused conductor shall be labeled with the word “spare” and be electrically isolated.
B. A reserved single pole circuit breaker space in the electrical panel adjacent to the circuit breaker for the branch circuit in (A) above shall be included and labeled with the words “Future 240V Use.”
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2. A condensate drain that is no more than 2 inches higher than the base of the installed water heater, and allows natural draining without pump assistance.
3. Construction drawings that indicate the reserved location of the future heat pump water heater with minimum interior dimensions of 39” x 39” x 96.”
4. A ventilation method that incorporates one of the following:
A. A space reserved for the future heat pump water heater with a volume of at least 700 cu. ft.
B. A space reserved for the future heat pump water heater that vents to a communicating space in the same pressure boundary via permanent openings with a minimum total net free area of 250 sq. in., so that the total combined volume connected via permanent openings is 700 cu. ft. or greater. The permanent openings shall be:
i. Fully louvered doors with fixed louvers consisting of a single layer of fixed flat slats; or ii. Two permanent fixed openings, consisting of a single layer of fixed flat slat louvers or grilles, one commencing within 12 inches from the top of the enclosure and one commencing within 12 inches from the bottom of the enclosure.
C. A space reserved for the future heat pump water heater that includes two 8” capped ducts, venting to the building exterior.
i. All duct connections and building penetrations shall be sealed. ii. Exhaust air ducts and all ducts that cross pressure boundaries shall be insulated to a minimum insulation level of R-6 in compliance with California Mechanical Code 502.0. iii. Airflow from termination points shall be diverted away from each other. (e) Central Heat Pump Water Heater Electric Ready. Water heating systems using gas or propane to serve multiple dwelling units shall meet the requirements of 160.9(e) and include the following for the future heat pump:
1. A system input capacity of the gas or propane water heating system that is determined as the sum of the input gas or propane capacity of all water heating devices associated with each gas or propane water heating system.
2. A space reserved that includes and complies with the following:
A. Heat Pump. The minimum space reserved shall include space for service clearances, air flow clearances, and compliant working spaces. Additionally, unless the space reserved is sufficient to support a heat pump water heater system that meets the total building hot water demand as calculated and documented by the responsible person associated with the project, the space reserved shall comply with the following:
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i. If the system input capacity of the gas water heating system is less than 200,000 BTU/HR, the minimum space reserved for the heat pump shall be 2.0 square feet per input 10,000 BTU/ HR of the gas or propane water heating system, and the minimum dimension of reserved spaces shall be 48 inches.
ii. If the system input capacity of the gas water heating system is greater than or equal to 200,000 BTU/HR, the minimum space reserved for the heat pump shall be 3.6 square feet per input 10,000 BTU/ HR of the gas or propane water heating system, and the minimum dimension of reserved spaces shall be 84 inches.
B. Tanks. The minimum space reserved shall include space for service clearances and keep outs.
Additionally, unless the space reserved is sufficient to support a heat pump water heater system that meets the total building hot water demand as calculated and documented by the responsible person associated with the project, the space reserved shall comply with the following:
i. If the system input capacity of the gas water heating system is less than 200,000 BTU/HR, the minimum space reserved for the storage and temperature maintenance tanks shall be 4.4 square feet per input 10,000 BTU/HR. of the gas or propane water heating system. ii. If the system input capacity of the gas water heating system is greater than or equal to 200,000 BTU/HR, the minimum physical space reserved for the storage and temperature maintenance tanks shall be 3.1 square feet per input 10,000 BTU/HR. of the gas or propane water heating system.
3. Ventilation, which shall be provided by including the following:
A. A physical space reserved for the heat pump located outside, or B. A pathway reserved for future routing of supply and exhaust air via ductwork from the reserved heat pump location to an appropriate outdoor location. Penetrations through the building envelope for louvers and ducts shall be planned and identified for future use. Additionally, unless the reserved pathway and penetrations are sized to serve a heat pump water heater system that meets the total building hot water demand as calculated and documented by the responsible person associated with the project, the reserved pathway and penetrations through the building envelope shall be sized to comply with one of the following:
i. If the system input capacity of the gas water heating system is less than 200,000 BTU/HR, the minimum air flow rate shall be 70 CFM per input 10,000 BTU/HR of the gas or propane water heating system and the total external static pressure drop of ductwork and louvers shall not exceed
0.17” when the future heat pump water heater is installed. ii. If the system input capacity of the gas water heating system is greater than or equal to 200,000 BTU/HR, the minimum air flow rate shall be 420 CFM per input 10,000 BTU/HR of the gas or propane water heating system and the total external static pressure drop of ductwork and louvers shall not exceed 0.17” when the future heat pump water heater is installed.
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4. Condensate drainage piping. An approved receptacle that is sized in accordance with the California Plumbing Code to receive the condensate drainage shall be installed within 3 feet of the reserved heat pump location, or piping shall be installed from within 3 feet of the reserved heat pump location to an approved discharge location that is sized in accordance with the California Plumbing Code. Additionally, unless the condensate drainage receptacles and piping are sized to serve a heat pump water heater system that meets the total building hot water demand as calculated and documented by the responsible person associated with the project, the condensate drainage shall comply with the following:
A. If the system input capacity of the gas water heating system is less than 200,000 BTU/HR, condensate drainage shall be sized for 0.2 tons of refrigeration capacity per input 10,000 BTU/HR.
B. If the system input capacity of the gas water heating system is greater than or equal to 200,000 BTU/HR, condensate drainage shall be sized for 0.7 tons of refrigeration capacity per input 10,000 BTU/HR.
5. Electrical.
A. Physical space shall be reserved on the bus system of the main switchboard or on the bus system of a distribution board to serve the future heat pump water heater system including the heat pump and temperature maintenance tanks. In addition, the physical space reserved shall be capable of providing adequate power to the future heat pump water heater as follows:
i. Heat Pump. For the Heat Pump, the physical space reserved shall comply with one of the following:
a. If the system input capacity of the gas water heating system is less than 200,000 BTU/HR, provide 0.1 kVA per input 10,000 BTU/HR.
b. If the system input capacity of the gas water heating system is greater than or equal to 200,000 BTU/HR, provide 1.1 kVA per input 10,000 BTU/HR.
c. The physical space reserved supplies sufficient electrical power required to power a heat pump water heater system that meets the total building hot water demand as calculated and documented by the responsible person associated with the project.
ii. Temperature Maintenance Tank. For the Temperature Maintenance Tank, the physical space reserved shall comply with one of the following:
a. If the system input capacity of the gas water heating system is less than 200,000 BTU/HR, provide 1.0 kVA per input 10,000 BTU/HR.
b. If the system input capacity of the gas water heating system is greater than or equal to 200,000 BTU/HR, provide 0.6 kVA per input 10,000 BTU/HR.
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c. The physical space reserved supplies sufficient electrical power required to power a heat pump water heater system that meets the total building hot water demand as calculated and documented by the responsible person associated with the project.
The building electrical system shall be sized to meet the future electric requirements of the electric ready equipment specified in sections 160.9(a) – 160.9(e). To meet this requirement the building main service conduit, the electrical system to the point specified in each subsection, and any onsite distribution transformers shall have sufficient capacity to supply full rated amperage at each electric ready appliance in accordance with the California Electric Code.
Section 170.1 of the CEnC is adopted with amendments as follows:
A building complies with the performance approach if the TDV energy budget calculated for the proposed design building under Subsection (b) is no greater than the TDV energy budget calculated for the Standard Design Building under Subsection (a). Additionally,
1. The source energy budget of a newly constructed low-rise multifamily building shall be at least 10% lower than that of the Standard Design Building.
2. The source energy budget of a newly constructed high-rise multifamily building shall be at least 4% lower than that of the Standard Design Building.
Sub-sections (a) to (d) are adopted without amendments.
Section 2. If any section or portion of this ordinance is found to be invalid by a court of competent jurisdiction, such finding shall not affect the validity of the remainder of the ordinance, which shall continue in full force and effect.
Section 3. This ordinance shall take effect and be in full force thirty (30) days after final adoption.
PASSED FOR PUBLICATION this 10th day of December 2024, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
APPROVED: __________________________
Fred Keeley, Mayor
ATTEST: ___________________________
Bonnie Bush, City Clerk Administrator
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PASSED FOR FINAL ADOPTION this 14th day of January 2025 by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
APPROVED: __________________________
Fred Keeley, Mayor
ATTEST: ___________________________
Bonnie Bush, City Clerk Administrator
This is to certify that the above
and foregoing document is the
original of Ordinance No. 2024-XX
and that it has been published or
posted in accordance with the
Charter of the City of Santa Cruz.
___________________________
City Clerk Administrator
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Planning Commission
AGENDA REPORT
DATE: 8/30/2024
AGENDA OF: 9/5/2024
DEPARTMENT: Planning and Community Development
SUBJECT: Planning Commission Public Hearing to review and make a recommendation on amending Santa Cruz Municipal Code Chapters 21.06,
23.04, 23.12, 23.37, 24.04, 24.08, 24.10, 24.12, and 24.16 and adding new sections 24.04.095 and 24.16.165 to maintain consistency with state regulations for accessory dwelling units, clarify existing standards, remove owner-occupancy requirements for existing accessory dwelling units, require properties with accessory dwelling units to enroll in the Residential Rental Inspection Program, and to allow for the condominium mapping and separate sale of accessory dwelling units and their associated primary dwellings. Amendments to Chapter 24.04; Chapter 24.08 Parts 5, 9A, 14, 21, and 22; Chapter 24.10 Parts 3, 4, 5, 6, 6A, 7, 8, 10, 11, 12, 13, 16, 19, 21, and 24(A); and Chapter 24.12 are part of the Local Coastal Program Implementation Plan (LCP IP) and will require approval by the California Coastal Commission prior to taking effect inside the Coastal Zone. (CEQA: Exempt pursuant to CEQA Guidelines Section 15061(b)(3) as a project that with certainty does not have an effect on the environment and Section 15183 as a project consistent with the general plan for which an EIR was certified.)
RECOMMENDATION: That the Planning Commission make findings for Zoning Ordinance amendments pursuant to Municipal Code Sections 24.06.040 and recommend that the City Council: 1) Acknowledge the Environmental Determination; 2) Approve the proposed ordinances amending accessory dwelling Unit Regulations and other minor technical amendments, including amendments to Santa Cruz Municipal Code Chapters 21.06, 23.04,
23.12, 24.04, 24.08, 24.10, 24.12, and 24.16 and adding new sections 24.04.095 and 24.16.165, and including amendments to the Local Coastal Program; 3) Approve changes related changes to Subdivision Ordinance Chapters 23.04 and 23.12 related to condominium mapping of accessory dwelling units and primary dwellings; 4) Rescind temporary ordinance 2022-22 and as extended by ordinance 2023-01; and 5) Direct the City Manager to submit the Local Coastal Program amendments to the California Coastal Commission for approval.
BACKGROUND: The City’s accessory dwelling unit (ADU) regulations have evolved over the last several years in response to ongoing changes to state-level regulations as well as proactively on a local level as part of an effort to expand opportunities to create a variety of housing types. In December 2022, the City adopted a 45-day urgency ordinance that made minor changes to the
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Planning Commission Meeting of September 5, 2024
Accessory Dwelling Unit Regulation Amendments
City’s ADU regulations in response to two new state laws that required local adoption on a fast timeline before the end of that year. In January 2023, City Council extended the urgency ordinance to the end of 2024. A formal ordinance must be adopted prior to expiration of the urgency ordinance to permanently codify the approved language. When the City Council approves the formal ordinance, the urgency ordinance will be rescinded.
On February 6, 2024, as part of a statewide review of all jurisdictions, the California Department of Housing and Community Development (HCD) sent a letter to the Department of Planning and Community Development detailing a review of the City’s accessory dwelling unit regulations and requiring several mostly minor corrections to ensure ongoing compliance with state law.
In addition to permanently adopting the revisions made in the urgency ordinance and updates required by HCD, the proposed modifications include removal of owner-occupancy restrictions for existing ADUs constructed prior to 2020, implementation of state laws that allow ADUs and their associated primary dwelling to be sold separately as condominiums, and addressing other topics or needed clarifications that have arisen during review of ADU permit applications.
Development of these updates involved considering several policy questions that are also discussed below.
DISCUSSION:
State of California Housing and Community Development Department Letter The letter sent by HCD included several comments relating to removing references to discretionary review or subjective standards, the number of statewide exemption ADUs (specific types of ADUs allowed by right pursuant to Government Code Section 66323) permitted on a single-family home lot, standards for Junior ADUs (JADUs), and conformance with state laws regarding owner-occupancy and separate sale of ADUs constructed by nonprofit developers.
Following many discussions with HCD staff, the proposed amendments bring the Zoning Ordinance fully into compliance with state law. The attached comment response matrix details how the proposed amendments have addressed each of the comments from HCD.
Removal of Owner Occupancy Requirement and Residential Rental Inspection Service Enrollment
Historically, the City’s ADU regulations required owner occupancy for properties with ADUs with the property owner being required to live on the property, either in the primary dwelling or in the ADU. In 2019, state senate bill SB 13 (Wieckowski) passed into law and prohibited local jurisdictions from imposing owner-occupancy requirements for ADUs approved between January 1, 2020 and January 1, 2025. In 2023, AB 976 (Ting) expanded on this legislation by removing owner occupancy requirements in perpetuity for all ADUs created in 2025 and beyond.
The City’s ADU regulations currently waive owner-occupancy requirements for those ADUs constructed between 2020 and 2025. The proposed modifications eliminate owner occupancy requirements for ADUs altogether, not only to bring requirements for ADUs constructed in 2025 and beyond in line with state law but also to remove owner-occupancy requirements for ADUs constructed prior to 2020. This modification will ensure fairness and consistency in applying regulations so that those with existing ADUs can share the same benefits afforded to those who create ADUs today and in the future. It should be noted that properties with JADUs, which are essentially smaller attached ADUs that can share bathroom facilities with the primary dwelling, still require owner occupancy as this is required by state law.
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Planning Commission Meeting of September 5, 2024
Accessory Dwelling Unit Regulation Amendments
Since the City has historically required ADUs to have owner-occupancy and were considered an accessory use with direct oversight by the owner, they have been exempt from the City’s Residential Rental Inspection Service (RRIS). However, since the proposed amendments would no longer require owners to live on site, single-family properties with ADUs would have the capacity to function like a typical duplex rental property, and ADUs on multi-family properties would function as additional rental units on those properties. Therefore, the proposed amendments would eliminate the exemption for ADUs, requiring these properties to enroll in the RRIS.
The purpose of the RRIS is to ensure that rental dwelling units meet basic health and safety standards. The RRIS requires all rental dwelling units in the city to participate, and participation involves an annual program fee, currently $62, as well as an annual City inspection fee of $28 per unit. The program does provide exemptions for units that are not being used as a rental property or where Section 8 Housing Choice Vouchers are used by the tenants and the Housing Authority conducts similar inspections. Those units would still require registration but would not require City inspections. Additionally, many properties are eligible for self-certification, which comes with reduced fees and an opportunity for owners to self-inspect their properties most years. Therefore, the RRIS helps ensure that rented ADUs meet the same basic health and safety standards as any other rental property.
Separate Sale of ADUs
Two state laws in recent years have created opportunities to sell ADUs separately as condominiums. First, AB 587 (Friedman) was passed into law in 2019 and allowed ADUs and associated single-family detached residences to be constructed by a non-profit housing developer and sold via a tenants-in-common ownership structure. The law requires the City to allow these types of developments, and proposed language has been added to the amendments to address this requirement. The second state law is AB 1033 (Ting), passed into law in 2023 and codified as Government Code Section 66342, which permits local jurisdictions to adopt an ordinance to allow for any accessory dwelling units and their associated primary dwellings to be sold separately as condominiums. While local jurisdictions are not required to have an implementing ordinance, doing so would support the creation of a new type of ownership housing unit that may be more affordable by nature and create the potential for more variety in the city’s housing market.
The proposed amendments implement these state laws in a new Section 24.16.165 within the municipal code’s ADU regulations. With regard to implementing AB 1033, the proposed amendments would allow any number of permitted new construction or existing ADUs on a single-family or multi-family site to be mapped as condominiums. On sites with single-unit buildings, the primary dwelling associated with the ADU(s) could also be mapped and sold separately.
The new section includes several items that are required by Government Code Section 66342, including:
The condominiums shall be created pursuant to the Davis-Stirling Common Interest Development Act;
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Planning Commission Meeting of September 5, 2024
Accessory Dwelling Unit Regulation Amendments
The condominiums shall be created in conformance with all applicable objective requirements of the Subdivision Map Act and all objective requirements of the City’s subdivision ordinance;
A safety inspection must be completed before recordation of the condominium plan; The applicant must obtain all lienholders’ consent prior to recording the subdivision map or condominium plan;
The City must include a notice to applicants on a submittal checklist or other public information regarding lender consent requirements;
The homeowner is required to notify utility providers, including water, sewer, gas, and electricity, of the condominium creation and separate conveyance; and If a property is part of an existing association, the owner must obtain permission from the association to record the condominium plan.
The process would involve approval of a tentative map and final map for a project that involves the creation of five or more ADU condominiums on a site with a multi-family building as required by the Subdivision Map Act. On a site with a single-family home where the ADU(s) and associated primary dwelling are mapped as condominiums, or on a site with a multi-family building that is converting four or fewer ADUs into condominiums, the project would be exempt from requiring a tentative parcel map and instead would only require approval of a parcel map.
Exempting the tentative map for these projects results in a process that is more streamlined and involves fewer fees for the applicant. For all projects, Government Code Section 66342 requires that the process would include review of only objective standards required by the subdivision ordinance. It should be noted that exempting these permits from a tentative map requires minor language changes to the Subdivision Ordinance. The Subdivision Ordinance (Title 23 of the municipal code) itself was not detailed in the public noticing for this item, though the notice did refer to “condominium mapping and separate sale of accessory dwelling units and their associated primary dwellings,” which includes this topic. Therefore, staff recommends that the Planning Commission make a recommendation for City Council to approve these minor changes to the Subdivision Ordinance.
Municipal code regulations currently allow rental units to be converted to condominiums when at least 67 percent of the tenants purchase the condominium units or when the multi-family vacancy rate is more than five percent. The vacancy rate in Santa Cruz is consistently below five percent, which means that the 67 percent requirement would typically apply. Other displaced tenants have a right of first refusal for purchase of the condominium unit and are afforded two months of relocation assistance. These regulations were intended to protect against tenant displacement from conversions of entire apartment buildings to condominiums and not necessarily for the conversion of a single unit or handful of units. For ADU condominium conversions of up to four units, the proposed amendments would eliminate the 67 percent threshold and allow owners to remove their tenants to transfer ownership of the condominiums.
This would remove a potential barrier to condominium conversion of an ADU since it would not otherwise be possible to map an existing ADU without selling it to the existing tenant. Making this measure more flexible would be coupled with strengthening other protections, including first right of refusal if the condominium is offered for sale to the general public and four months of relocation assistance for low- or moderate-income tenants who lived in the unit within the last two years. The proposal strikes a balance between facilitating the creation of ADU ownership units and protecting existing tenants.
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Zoning Ordinance Section 24.12.180 requires certain development standards for community housing projects related to utilities, open space, storage areas, and off-street parking. While this section requires each unit in a community housing project to provide separate utilities to each unit, Government Code Section 66342 specifically requires applicants for ADU condominium units to contact the various utilities. Therefore, the proposed amendments do not include the local requirement for separate utilities but instead follow the state law requirement. With regard to open space, this standard is consistent with open space standards that would be applied to a new construction ADU except that state ADU law requires waiver of an open space standard if needed to allow an ADU of up to 800 square feet. Therefore, the proposed amendments require the open space standard only for new construction ADUs and with the caveat that the waiver could apply. The community housing project standards also require each unit to provide 200 cubic feet of storage space in addition to any kitchen cupboard, clothes closets, or linen closets.
The proposed ADU condominium regulations include this requirement only for new construction ADUs as it could be cost prohibitive to construct an addition to an existing building if needed solely to provide such storage space.
Regarding off-street parking, Zoning Ordinance Section 24.12.180 and the associated parking requirements in Section 24.12.240 require community housing projects to provide one parking space per studio or one-bedroom unit, two parking spaces per two-bedroom unit, and guest parking at a rate of 10 percent of the total parking requirement. However, the City’s ADU regulations do not require any parking for ADUs except for a small, defined area in the Coastal Zone. In addition, requiring parking for ADU condominium units could create a barrier to creating this type of housing and would therefore run against goals to support a variety of housing types. Finally, parking already is not required throughout much of the City, since most areas are within half a mile of a major transit stop, so any parking requirement would be restricted to a few small areas. Therefore, the proposed regulations for ADU condominiums require them to meet the same parking standards required for non-mapped ADUs. Specifically, no parking would be required except for within a small, defined area of the Coastal Zone.
Other Policy Questions
Staff evaluated a number of other policy questions that arose as a result of responding to comments from HCD or from review of ADU building permit applications. The following provides a brief description of each question as well as staff recommendation.
Number of ADUs
The ADU regulations currently limit the number of ADUs on sites with single-family homes to one and limit the number of ADUs on sites with multi-family buildings to two new construction ADUs plus a number of conversion ADUs equivalent to at least one but not more than 25% of the number of regular units in the building. However, state law requires the City to approve a specific number of statewide exemption ADUs that are different and distinct from any ADU that is created under the City’s more flexible development standards that have been in place several years before the new state laws. A site with a single-family home, including a lot with a townhome or a lot with multiple detached units, has a right to two statewide exemption ADUs including a new construction detached ADU and a conversion ADU. However, many ADUs constructed in the city on single-family home sites do not meet the definition of a statewide exemption ADU but meet the more flexible city standards in terms of setbacks, height, or size.
This means that if a single-family home property has an ADU that was approved under the City’s
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standards but that does not meet the definition of a statewide exemption ADU, that property would still be eligible to construct the two statewide exemption ADUs, bringing the total to three. Therefore, the proposed amendments account for this allowance by providing for one nonexempt ADU in addition to the two statewide exemption ADUs.
With regard to ADUs on multi-family sites, the City only amended its regulations in the last few years to reflect new statewide requirements to allow statewide exemption ADUs on these properties and did not allow ADUs on multi-family sites prior to this time. The proposed amendments clarify that only statewide exemption ADUs (two detached plus 25 percent conversion) are allowed on multi-family properties.
Establishing objective standards for natural features
The review by HCD identified areas of the City’s ADU regulations that still involve some form of subjective reasoning and indicated those should be revised to become objective. Under the current regulations, sites with natural features such as slopes, creeks, wetlands, sensitive habitats, and heritage trees have been reviewed on a case-by-case basis to determine the best location for the ADU given the applicant’s desires and site constraints. While this approach has generally resulted in site layouts that meet both the applicant’s desires and the City’s interests in resource protection, it does not meet the state’s test of objectivity. Therefore, objective standards have been created to set a proposed ADU a specific distance away from these natural features. This provides the City and the applicant with potentially less flexibility but does create a knowable, objective standard that the state requires.
Waiver of standards
While the City may set objective site development standards, state law also requires these standards to be waived under some circumstances. Percentage of primary dwelling floor area, lot coverage, floor area ratio, open space, and front yard setback must be waived to the extent that they preclude the creation of an 800 square foot attached or detached ADU with four-foot front and side yard setbacks. In addition, any other development standard would need to be waived to the extent that it would preclude the creation of a statewide exemption ADU, which includes a range of new construction and conversion ADUs defined specifically in Government Code Section 66323. HCD has indicated that the City must waive these standards in an objective manner and not on a case-by-case basis.
Therefore, the proposed modifications include a subsection on waiver of standards and creates an objective hierarchy of when each standard may be waived. The first tier waives those standards that must be waived for any 800 square foot ADU with four-foot side and rear yard setbacks and gives the applicant the flexibility to decide how to waive those standards. For statewide exemption ADUs, applicants may waive additional standards in three tiers to provide for creation of the statewide exemption ADU. First, the applicant may waive standards related to aesthetics such as site layout and building design. The second tier allows waiver of standards related to resource preservation. Third, the applicant can waive standards related to safety, preserving the line of sight at driveways and intersections.
An applicant may only waive standards in the next tier if waiver of all standards in the previous tier does not result in a buildable area that would provide for the statewide exemption ADU. For example, an applicant may only waive standards related to resource preservation if they are proposing a statewide exemption ADU and waiver of standards for all 800 square foot ADUs
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plus waiver of all aesthetic site development standards for statewide exemption ADUs do not create a buildable area for the proposed ADU. This setup creates an objective way to waive standards, while giving applicants some choice about which standards to waive and simultaneously protecting those standards that the City considers most important.
Rail trail orientation
The existing regulations encourage ADUs adjacent to a street, alley, or the Monterey Bay Sanctuary Scenic Trail (also known as the rail trail) to be oriented toward these features. While the intention of these standards was to activate the rail trail and make it a more interactive and accessible amenity, in review of these standards, Public Works staff indicated a desire to keep rail trail entry points at designated street intersections or planned entries from larger residential developments rather than via gates from individual properties as this would help to maintain safety on the trail. In addition, many parts of the rail trail abut retaining walls with significant grade changes that would preclude an ADU from being accessed via the rail trail. Therefore, since ADUs should not, and in many circumstances cannot, be accessed from the rail trail, standards calling for ADU orientation to the rail trail have been removed. These standards still remain in place and have been made more objective for an ADU that is adjacent to a street or alley.
Attached ADUs on substandard lots
The Zoning Ordinance includes specific site development standards for single-family homes on substandard lots in the R-1 zone districts. These development standards include a limitation of 45 percent lot coverage for all buildings and structures on the site, and the standards also limit the second story of a building to 50 percent of the size of the first story when the first story takes up more than 30 percent lot coverage. State law requires lot coverage to be waived to allow the creation of an ADU of up to 800 square feet, but it does not require such a waiver for a building’s second story to first story ratio. This combination of rules creates confusion in how the standards should apply new ADUs that are attached to a single-family home on a substandard lot. For example, if an ADU is constructed in conjunction with a new home, then under most circumstances, unless the lot is severely constrained by size, an 800 square foot ADU and a single-family home can be constructed within a space that maximizes the building envelope, taking up 45 percent lot coverage and a second floor that is 50 percent the size of the first floor.
However, if a new construction attached ADU is added to an existing house that has already maximized its floor area under these ratios, then the lot coverage limitation would need to be waived to allow the ADU. This scenario results in a building that is 800 square feet larger based on the order in which the single-family dwelling and ADU were created.
Staff recommends modifying the substandard lot regulations for ADUs in a way that make the rules equal regardless of the order of construction, that provide flexibility for applicants in how they want to design their ADUs, and that reflect the City’s desire to regulate building form on substandard lots by limiting the massing of second stories. The proposed modifications would allow the single-family home to occupy up to 45 percent of the lot coverage and allow the ADU to exceed that coverage as needed to create an 800 square foot ADU. If the house and ADU were constructed at the same time, the two units would not be required to fit together within the 45 percent lot coverage limit. However, whether the single-family home is existing or constructed in conjunction with the ADU, the second floor of the building is always limited to half of the 45 percent lot coverage. In other words, a waiver of lot coverage for an ADU does not increase the potential size of the building’s second floor.
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Converting nonconforming duplexes on R-1 lots to conforming SFD/ADU One question that has come up in development inquiries is whether a nonconforming duplex in the single-family R-1 zone districts can be redesignated as a conforming single-family home with an ADU. The Zoning Ordinance restricts nonconforming duplex units from expanding in size. However, it would still be possible to add ADUs to the property, specifically two detached new construction ADUs and one conversion ADU, resulting in a development capacity of five units. Two units designated as a single-family home and an ADU on an R-1 zoned lot are considered principal permitted uses and therefore could be enlarged as allowed by the zone district and ADU development standards. On such a site, the development capacity would be one single-family home, three ADUs, and a junior ADU, also resulting in five units. So, while the development capacity is essentially the same between a site with a duplex and a site with a single-family home and ADU, naming the existing structure by one name (duplex) is more restrictive than by another name (single-family home and ADU) in that the duplex could not be expanded. The ability to redesignate a duplex as a single-family home and ADU would create an equal set of rules.
State law and the City’s ADU regulations allow an ADU to be located on a site with a singlefamily home and allow an ADU to be created from the conversion of any building or portion of building on a site with a single-family home. So, when an R-1 lot contains a nonconforming use of two detached units, those are each considered single-family units for purposes of ADU regulations. One of the units could therefore be converted to an ADU, since the code allows an entire building to be converted if the result still includes a single-family unit on the site.
However, if the two nonconforming duplex units are attached, then they are considered a multifamily building for which state law restricts conversion ADUs to non-habitable space. This means that one of the existing attached dwellings could not be converted to an ADU because the dwelling is habitable space. However, state ADU law also allows local jurisdictions to make rules that are more permissive than the state code regarding ADUs. Therefore, the proposed amendments include an exception to allow a nonconforming attached duplex to convert one of the units into an ADU, thereby turning the nonconforming use into a conforming use consisting of a single-family home with an ADU. This approach promotes flexibility in the creation of housing and fairness among both detached and attached nonconforming two-unit sites. 150 square feet addition to conversion ADUs
State ADU law allows a conversion ADU to expand the footprint of the converted structure by up to 150 square feet to provide for ingress and egress. The City’s ADU regulations are more flexible and do not limit the 150 square foot expansion to ingress and egress only. Because of this more liberal standard, questions have arisen about how creatively this standard can be applied. For example, could the 150 square feet be used to attach a detached conversion ADU to the main unit? Or, on a two-story ADU, could a 150-square foot expansion of the footprint be interpreted to allow 150 square feet of floor area to be added on both the first and the second floor? To support flexibility in creating ADUs, staff recommends allowing such creative applications of the standard, and this flexibility is reflected in the proposed amendments. A more conservative approach could be to not allow attachments of units or to interpret the expansion as floor area and not footprint, which would limit a two-story structure expansion to 150 square feet total.
Allowing JADUs on sites with multiple detached units
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Government Code Section 66333(a) limits JADUs to “one per residential lot zoned for singlefamily residences with a single-family residence built, or proposed to be built, on the lot.” While the standard interpretation from HCD indicates that a JADU is allowed on a lot with only one single-family home, staff correspondence with HCD has confirmed that a more flexible interpretation of the government code section would be acceptable to the state. The existing regulations in the municipal code are not clear on whether a JADU is allowed on a lot that contains only one single-family home or whether one can be created on a lot that has multiple detached single-unit buildings. The proposed amendments apply the flexible interpretation of state law to allow a JADU on a lot that either has just one single-family home or has multiple detached single-unit buildings. It should be noted that the state law does not allow a JADU on a site with a multi-family dwelling, which is a building that contains more than one unit. So, while a JADU would be allowed on a multi-family site with detached units, it would not be allowed on a site with a multi-unit building. This interpretation parallels state ADU law that also applies different rules to lots with multiple detached units and lots with multiple attached units.
Ordinance Reorganization and Clarifications
The draft amendments to the ADU regulations found in municipal code Chapter 24.16 Part 2 include reorganization of Sections 24.16.140-142 into a section on general standards, site development standards, and design standards. In addition, the amendments include consolidation of site development standards for attached, detached, and conversion ADUs into a single site development standards table, creating a concise reference for both the public and City staff. This reorganization results from feedback from permit reviews and will help to streamline and clarify future reviews. In addition, the definitions section in 24.16.125 has been expanded, and other minor language changes clarify the meaning of certain requirements.
Minor Technical Changes
The draft ordinance amendments also include minor technical changes related not to ADUs but to objective standards for multi-family developments, specifically in Section 24.04.130 regarding which hearing body approves changes depending on the development type and the number of requested variations from objective standards. There was an administrative error that led to a discrepancy between the clean and strikeout versions that resulted in language being reviewed by the Coastal Commission and subsequently codified that was not the intended amendments reviewed by the PC and CC. The proposed amendments restore the text to that which was approved by the City Council. Since this language is referenced and relied upon regularly in processing development applications, staff seeks to remedy this error as soon as possible rather than waiting several more months for a more general set of Zoning Ordinance cleanup amendments.
General Plan and Local Coastal Program Consistency
The proposed amendments further general plan policies to promote the production of housing and affordable housing, facilitate production of ADUs, and remove ADU owner-occupancy requirements, including:
Housing Element Policy 1.1 Provide adequate sites and supporting infrastructure to accommodate housing through land use, zoning, and specific plan designations that encourage a broad range of housing opportunities.
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Housing Element Policy Policy 1.3 Facilitate the production of residential units through design and compatibility review, use of objective development standards, and regulatory and/or financial incentives.
Housing Element Policy 1.5 Facilitate the development of Accessory Dwelling Units. Housing Element Policy 1.5b. Continue to implement the City’s ADU program and communicate with ADU applicants to identify ways to modify the program in a manner that facilitates the production of ADUs, including continuation of the allowance for conversion of non-habitable space in multi-family projects to ADUs to be constructed simultaneously with new development projects. Continue public awareness campaigns regarding the construction of ADUs and available incentives through diverse forms of media and outreach distribution.
Housing Element Policy 1.5d. Present to Council amendments to the City’s ADU regulations regarding owner occupancy to provide greater flexibility to existing and future ADU developments.
Housing Element Policy 2.2 Develop creative ways to facilitate more affordable housing development in the City.
Housing Element Policy 6.2c. Revise ADU regulations to provide additional units in single-family zoning by such methods as removing owner occupancy requirements, allowing additional ADUs under certain circumstances, or similar measures. LU3.8 Allow the following residential uses to exceed the maximum densities in this chapter: Cf. LU1.3 and 3.7.1.
o Single-room occupancy (SRO) units;
o Flexible density units (FDU);
o Small studio and one-bedroom units;
o Accessory dwelling units (ADU);
o Density bonus units; and
o Residential uses within areas designated High-Density Overlay District (HD-O).
Some of the proposed amendments are also part of the Local Coastal Program, including minor text changes to procedures for ADU coastal permits; standards for design permits, slope development permits, watercourse development permits, and watercourse variances as they relate to ADUs; zone district allowed uses and site standards related to ADUs; projections into setback areas; accessory buildings and structures; fencing and screening; and bicycle parking requirements for multi-family developments. These proposed amendments are also consistent with Local Coastal Program policies that support natural resource protection and infill of housing in existing neighborhoods, including:
Environmental Quality Element 4.2 Preserve and enhance the character and quality of riparian and wetland habitats, as identified on Maps EQ-8 and EQ-11, or as identified through the planning process or as designated through the environmental review process. Environmental Quality Element 4.2.5 Protect and minimize the impact of development on bird, fish and wildlife habitat in and adjacent to waterways. Community Design Element 1.1 Infill and intensify land uses consistent with existing neighborhood or commercial district patterns in developed areas currently served by municipal services. (See policy L 2.1 and policies under L 2.6.3 Community Design Element 6.1 Protect existing significant vegetation and landscaping that provides scenic as well as wildlife habitat and forage value. (See policies under Goal EQ 4.)
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Findings
Zoning Ordinance Section 24.06.040 requires that prior to making a recommendation for approval of Zoning Ordinance amendments to the City Council, the Planning Commission shall make findings that the public necessity, and the general community welfare, and good zoning practice shall be served and furthered; and that the proposed amendment is in general conformance with the principles, policies and land use designations set forth in the General Plan, Local Coastal Plan and any adopted area or specific plan. Similar findings are also required in the Local Coastal Program for any amendments to the LCP.
These findings include: (1) the proposed amendment is deemed to be in the public interest; (2) the proposed General Plan and/or Local Coastal Program amendment is consistent and compatible with the rest of the General Plan and LCP and any implementation programs that may be affected; (3) the potential impacts of the proposed amendment have been assessed and have been determined not to be detrimental to the public health, safety, or welfare; and (4) the proposed amendment has been processed in accordance with the applicable provisions of the California Government Code and the California Environmental Quality Act (CEQA).
The proposed amendments serve and further public necessity and general community welfare by supporting the creation of ADUs, a housing type affordable by nature, throughout the city. The amendments further good zoning practice by maintaining consistency with state law and improving clarity of regulations. The proposed amendments are in general conformance with the principles, policies and land use designations set forth in the General Plan, Local Coastal Plan and any adopted area or specific plan as described above. The proposed amendments are consistent with the provisions of CEQA as discussed at the end of this report.
Community Outreach
The Department of Planning and Community Development held a virtual community meeting on August 15, 2024 consistent with the Department’s Community Outreach Policy. Approximately 30 community members attended the meeting. Staff presented an overview of proposed amendments and obtained feedback from attendees. Questions and comments from the public focused mainly on how the Residential Rental Inspection Services program works and questions about legalizing unpermitted ADUs. Additional questions included how the separate sale of ADUs would apply to SB 9 developments and what parking requirement would apply to ADU condominiums. In Santa Cruz, SB 9 developments can include condominiums, so ADUs could be mapped as well under the separate sale provisions as long as all SB 9 requirements, such as owner occupancy, are met. Regarding parking, staff recommends that parking requirements reflect those for ADUs and not regular condominium units.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATINON: The proposed amendments are exempt from CEQA pursuant to Section 15183 as a project consistent with the General Plan for which an EIR was certified. Creation of objective standards related to natural resources such as slopes, heritage trees, watercourses and wetlands, and other sensitive habitats are consistent with existing regulations in the Zoning Ordinance and General Plan and involve the type of review that was considered in the General Plan EIR.
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HEALTH IN ALL POLICIES (HIAP): HiAP is a collaborative approach to improving the health of all people by incorporating health considerations into decision-making across sectors and policy areas. HiAP is based on 3 pillars: equity, public health, and sustainability. The goal of HiAP is to ensure that all decision-makers are informed about the health, equity, and sustainability impacts of various policy options during the policy development process. The proposed changes to accessory dwelling unit regulations support the HiAP approach as these revisions support the creation of both rental and ownership accessory dwelling units that are typically more affordable by nature, allow for new types of ownership housing, and can provide seniors with an additional option for aging in place. The changes also support streamlined production of accessory dwelling units that create new infill housing units, which is an efficient and sustainable use of land. Therefore, the proposal is consistent with the three pillars of the HiAP.
Submitted By:
Clara Stanger
Senior Planner
Approved By:
Matt VanHua, AICP
Principal Planner
ATTACHMENTS:
1. Draft ordinance for accessory dwelling unit regulations amendments, LCP, strikeoutunderline
2. Draft ordinance for accessory dwelling unit regulations amendments, non-LCP, strikeoutunderline
3. Letter from HCD dated February 6, 2024
4. Matrix detailing City’s responses to HCD comments on current ordinance
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City Council
AGENDA REPORT
DATE: 09/19/2024
AGENDA OF: 10/08/2024
DEPARTMENT: Planning and Community Development
SUBJECT: Ordinance Amending Santa Cruz Municipal Code Chapters 21.06, 23.04,
23.12, 23.37, and 24.08; Amending Chapter 24.16 Part 1 and Part 2; and Adding New Section 24.16.165; and Ordinance Adding New Santa Cruz Municipal Code Section 24.04.095 and Amending Santa Cruz Municipal Code Chapter 24.04, Chapter 24.08, Chapter 24.10, and Chapter 24.12; Ordinances Are Related to Accessory Dwelling Units to Maintain Consistency with State Regulations, Clarify Existing Standards, Remove Owner-Occupancy Requirements for Existing Accessory Dwelling Units, Require Properties with Accessory Dwelling Units to Enroll in the Residential Rental Inspection Service, and to Allow for the Condominium Mapping and Separate Sale of Accessory Dwelling Units and Their Associated Primary Dwellings, and Related to Other Minor Technical Changes Regarding Hearing Bodies for Design Permit Approval.
Amendments to Chapter 24.04; Chapter 24.08 Parts 5, 9a, 14, 21, and 22; Chapter 24.10 Parts 3, 4, 5, 6, 6a, 7, 8, 10, 11, 12, 13, 16, 19, 21, and 24(a); and Chapter 24.12 Are Part of the Local Coastal Program Implementation Plan (LCP IP) and Will Require Approval by the California Coastal Commission Prior to Taking Effect Inside the Coastal Zone. (CEQA:
Exempt Pursuant to CEQA Guidelines Section 15183 as a Project Consistent With the General Plan For Which an EIR Was Certified). (PL) RECOMMENDATION: Motion to:
1) Acknowledge the environmental determination and introduce for publication an ordinance adding new Santa Cruz Municipal Code Section 24.04.095 and amending Santa Cruz Municipal Code Chapters 24.04, 24.08, 24.10, and 24.12 related to accessory dwelling units and related to other minor technical changes regarding hearing bodies for design permit approval and comprising parts of the LCP IP;
2) Acknowledge the environmental determination and introduce for publication an ordinance amending Santa Cruz Municipal Code Chapters 21.06, 23.04, 23.12, 23.37, and 24.08; amending Chapter 24.16 Part 1 and Part 2; adding new Section 24.16.165 related to accessory dwelling units, and rescinding Temporary Ordinance Nos. 2022-22 and 2023-01; and
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3) Direct the City Manager to submit the LCP IP amendments to the California Coastal Commission for approval, should they be formally adopted as part of a second reading.
BACKGROUND: The City’s accessory dwelling unit (ADU) regulations have evolved over the last several years in response to ongoing changes to state-level regulations, as well as proactively on a local level, as part of an effort to expand opportunities to create a variety of housing types.
In December 2022, the City adopted a 45-day urgency ordinance that made minor changes to the City’s ADU regulations in response to two new state laws that required local adoption on a fast timeline before the end of that year. In January 2023, City Council extended the urgency ordinance to the end of 2024. A formal ordinance must be adopted prior to expiration of the urgency ordinance to permanently codify the approved language, or else the state code would purely govern ADUs. Should the City Council approve the proposed ordinance, the urgency ordinance will be rescinded upon the new ordinance taking effect.
In 2023, two additional state laws were passed with potentially significant implications for the local regulation of ADUs. First, Assembly Bill (AB) 976 (Ting) removed local jurisdictions’ ability to impose owner-occupancy restrictions on properties with ADUs constructed in 2025 and beyond, a provision that was previously in effect for ADUs starting construction between January 1, 2020, and January 1, 2025. Second, AB 1033 (Ting) creates an option for local jurisdictions to create an ordinance to allow ADUs and their associated primary dwellings to be sold separately as condominiums.
On February 6, 2024, as part of a statewide review of all jurisdictions, the California Department of Housing and Community Development (HCD) sent a letter to the Department of Planning and Community Development detailing a review of the City’s ADU regulations and requiring several mostly minor corrections to ensure ongoing compliance with state law.
Finally, over the last few years, permit reviews and public inquiries have raised several questions about the meaning and application of existing regulations, prompting the need to clarify the existing language in the municipal code to make it easier for all users.
The proposed modifications would address the issues described above by permanently adopting the revisions made in the urgency ordinance; making updates required by HCD; removing owner-occupancy restrictions for all ADUs, including those constructed prior to 2020; implementing state laws that allow ADUs and their associated primary dwelling to be sold separately as condominiums; and addressing other topics or needed clarifications that have arisen during review of ADU permit applications. Development of these updates also involved considering several other minor policy questions.
As further detailed in the Discussion section below, the proposed amendments were presented to the Planning Commission for recommendation to Council on September 5, 2024, with Planning Commission voting 5-1-1 (Dann opposed, McKelvey absent) to support the proposed amendments. Additional details of the proposed amendments can be found in the attached Agenda Report from the September 5, 2024, Planning Commission Meeting.
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DISCUSSION:
Removal of Owner Occupancy Requirement
Historically, the City’s ADU regulations required owner occupancy for properties with ADUs.
This means that the property owner was required to live on the property, either in the primary dwelling or in the ADU. In 2019, state Senate Bill (SB) 13 (Wieckowski) passed into law and prohibited local jurisdictions from imposing owner-occupancy requirements for ADUs approved between January 1, 2020, and January 1, 2025. In 2023, AB 976 (Ting) expanded on this legislation by removing owner occupancy requirements in perpetuity for all ADUs created in 2025 and beyond. The City’s ADU regulations currently waive owner-occupancy requirements for those ADUs constructed between 2020 and 2025. The proposed modifications eliminate owner occupancy requirements for ADUs altogether, not only to bring requirements for ADUs constructed in 2025 and beyond in line with state law but also to remove owner-occupancy requirements for ADUs constructed prior to 2020. This modification would ensure fairness and consistency in applying regulations so that those with existing ADUs can share the same benefits afforded to those who create ADUs today and in the future. It should be noted that properties with junior accessory dwelling units (JADUs), which are essentially smaller, attached ADUs that can share bathroom facilities with the primary dwelling, still require owner occupancy, as this is required by state law.
Residential Rental Inspection Service Requirement
Since the City has historically required ADUs to have owner-occupancy, as they were considered an accessory use with direct oversight by the owner, they have been exempt from the City’s Residential Rental Inspection Service (RRIS). However, since the proposed amendments would no longer require owners to live on site, single-family properties with ADUs would have the capacity to function like a typical duplex rental property, and ADUs on multi-family properties would function as additional rental units on those properties. The City’s Code Compliance Division has also found that owner occupancy does not necessarily ensure a rental dwelling will be adequately maintained. Therefore, the proposed amendments would eliminate the exemption for ADUs, requiring these properties to enroll in the RRIS.
The purpose of the RRIS is to ensure that rental dwelling units meet basic health and safety standards. The RRIS requires all rental dwelling units in the city to participate, and participation involves an annual program fee, currently $62, as well as an annual City inspection fee of $28 per unit. The program does provide exemptions for units that are not being used as a rental property, units occupied by a family member, newly constructed units less than five years old, or units where Section 8 Housing Choice Vouchers are used by the tenants and the Housing Authority conducts similar inspections. Those units would still require registration in the program (at no cost) but would not require annual fees or City inspections. Additionally, many properties are eligible for self-certification inspections most years, which comes with reduced fees. While new fees may apply to some ADU owners, the RRIS helps ensure that rented ADUs meet the same basic health and safety standards as any other rental property in the City. This proposed change supports tenant protection and helps prevent displacement by addressing health and safety issues before a potentially unlivable situation develops.
Separate Sale of ADUs
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ADUs are an important part of the city’s housing stock, providing rental units that are typically more affordable by nature than single family homes. With changes in regulations at the state and local level to increase flexibility for the creation of ADUs, the City has permitted approximately 375 such units since 2020, and that number is likely to continue to grow in the coming years.
In 2023, state bill AB 1033 (Ting) created new legislation that allows local jurisdictions to adopt an ordinance to permit accessory dwelling units and their associated primary dwellings to be sold separately as condominiums. An AB 1033 implementing ordinance would support the creation of a new type of ownership housing unit that is more affordable by nature. In a time where nearly all new development in Santa Cruz is rental housing, the proposed amendment provides a new opportunity to create smaller ownership units, making the city’s housing market more diverse and accessible.
The proposed amendments would allow any number of permitted new construction or existing ADUs on a single-family or multi-family site to be mapped as condominiums. On sites with single-family buildings, the primary dwelling associated with the ADU(s) would also be mapped as a condominium and sold separately. Since the Planning Commission meeting, the draft amendments have been updated to clarify that on sites with multi-family housing, any units not mapped as an ADU, or primary dwelling condominium would also collectively be mapped within one condominium lot.
The proposed amendments to implement ADU condominium sales create a new Section
24.16.165 within the municipal code’s ADU regulations. The new section includes several items that are required by State Government Code Section 66342, including:
The condominiums shall be created pursuant to the Davis-Stirling Common Interest Development Act;
The condominiums shall be created in conformance with all applicable objective requirements of the Subdivision Map Act and all objective requirements of the City’s subdivision ordinance;
A safety inspection must be completed before recordation of the condominium plan; The applicant must obtain all lienholders’ consent prior to recording the subdivision map or condominium plan;
The City must include a notice to applicants on a submittal checklist or other public information regarding lender consent requirements;
The homeowner is required to notify utility providers, including water, sewer, gas, and electricity, of the condominium creation and separate conveyance; and If a property is part of an existing association, the owner must obtain permission from the association to record the condominium plan.
The process would involve approval of a tentative map and final map for a project that involves the creation of five or more condominiums on a site with a multi-family building as required by the Subdivision Map Act. On a site with a single-family home where the ADU(s) and associated primary dwelling are mapped as condominiums, or on a site with a multi-family building that is creating four or fewer condominiums, the project would be exempt from requiring a tentative parcel map and instead would only require approval of a condominium map through Public Works. Exempting the tentative map for these projects results in a process that is more
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streamlined and involves fewer fees for the applicant. For all projects, Government Code Section 66342 requires that the process would include review of only objective standards required by the subdivision ordinance. It should be noted that exempting these permits from a tentative map requires minor language changes to the Subdivision Ordinance.
Municipal code regulations currently allow rental units to be converted to condominiums when at least 67 percent of the tenants purchase the condominium units or when the multi-family vacancy rate is more than five percent. The vacancy rate in Santa Cruz is consistently below five percent, which means that the 67 percent requirement would typically apply. Other displaced tenants associated with condominium conversions have a right of first refusal for purchase of the condominium unit and are afforded one and a half months’ rent worth of relocation assistance (or two months’ rent if the tenant has a low to moderate income). These regulations were intended to protect against tenant displacement from conversions of entire apartment buildings to condominiums and not necessarily for the conversion of a single unit or handful of units. For ADU condominium conversions of up to four units, the proposed amendments would eliminate the 67 percent threshold and allow owners to remove their tenants to transfer ownership of the condominiums.
This provision would remove a significant barrier to condominium conversion of an ADU since it would not otherwise be possible to create an ADU condominium currently unless it was sold to the existing tenant. The proposed amendments couple this increased flexibility with strengthening other anti-displacement protections, including increasing relocation assistance of four months for low- or moderate-income tenants who lived in the unit within the last two years and maintaining the current protection of offering first right of refusal to the tenant if the condominium is offered for sale to the general public. The proposal strikes a balance between facilitating the creation of lower-cost ownership housing and protecting existing tenants.
See the attached Agenda Report from September 5, 2024, Planning Commission Meeting for more details about ADU condominiums, including, but not limited to, requirements related to utilities, open space, storage space, and parking.
Other Municipal Code Changes
The proposed amendments include additional changes to the zoning ordinance to address comments from HCD, resolve other minor policy questions, reorganize and improve clarity of existing standards, and make one minor but time-sensitive technical change related not to ADUs but to design permit approvals for multi-family residential projects. A detailed description and analysis of these proposed changes can be found in the agenda report for the September 5, 2024, Planning Commission meeting.
General Plan and Local Coastal Program Consistency
The proposed amendments further general plan policies to promote the production of housing and affordable housing, facilitate production of ADUs, and remove ADU owner-occupancy requirements, including:
Housing Element Policy 1.1 Provide adequate sites and supporting infrastructure to accommodate housing through land use, zoning, and specific plan designations that encourage a broad range of housing opportunities.
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Housing Element Policy 1.3 Facilitate the production of residential units through design and compatibility review, use of objective development standards, and regulatory and/or financial incentives.
Housing Element Policy 1.5 Facilitate the development of Accessory Dwelling Units. Housing Element Policy 1.5b. Continue to implement the City’s ADU program and communicate with ADU applicants to identify ways to modify the program in a manner that facilitates the production of ADUs, including continuation of the allowance for conversion of non-habitable space in multi-family projects to ADUs to be constructed simultaneously with new development projects. Continue public awareness campaigns regarding the construction of ADUs and available incentives through diverse forms of media and outreach distribution.
Housing Element Policy 1.5d. Present to Council amendments to the City’s ADU regulations regarding owner occupancy to provide greater flexibility to existing and future ADU developments.
Housing Element Policy 2.2 Develop creative ways to facilitate more affordable housing development in the City.
Housing Element Policy 6.2c. Revise ADU regulations to provide additional units in single-family zoning by such methods as removing owner occupancy requirements, allowing additional ADUs under certain circumstances, or similar measures. LU3.8 Allow the following residential uses to exceed the maximum densities in this chapter: Cf. LU1.3 and 3.7.1.
o Single-room occupancy (SRO) units;
o Flexible density units (FDU);
o Small studio and one-bedroom units;
o Accessory dwelling units (ADU);
o Density bonus units; and
o Residential uses within areas designated High-Density Overlay District (HD-O).
Some of the proposed amendments are also part of the Local Coastal Program, including minor text changes to procedures for ADU coastal permits; standards for design permits, slope development permits, watercourse development permits, and watercourse variances as they relate to ADUs; zone district allowed uses and site standards related to ADUs; projections into setback areas; accessory buildings and structures; fencing and screening; and bicycle parking requirements for multi-family developments. These proposed amendments are also consistent with Local Coastal Program policies that support natural resource protection and infill of housing in existing neighborhoods, including:
Environmental Quality Element 4.2 Preserve and enhance the character and quality of riparian and wetland habitats, as identified on Maps EQ-8 and EQ-11, or as identified through the planning process or as designated through the environmental review process. Environmental Quality Element 4.2.5 Protect and minimize the impact of development on bird, fish and wildlife habitat in and adjacent to waterways. Community Design Element 1.1 Infill and intensify land uses consistent with existing neighborhood or commercial district patterns in developed areas currently served by municipal services. (See policy L 2.1 and policies under L 2.6.3
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Community Design Element 6.1 Protect existing significant vegetation and landscaping that provides scenic as well as wildlife habitat and forage value. (See policies under Goal EQ 4.)
Planning Commission Recommendation
At the September 5th, 2024, Planning Commission meeting, the Planning Commission recommended approval of the proposed ordinance (5-1-1, Commissioner Dann dissenting and Commissioner McKelvey absent) with an additional recommendation for staff to amend the proposed modifications if needed to comply with state law based on comments received from the California Housing Defense Fund. The commissioners also raised a few additional questions about removal of owner-occupancy for ADUs constructed prior to 2020 and for condominium mapping and separate sale of ADUs and their primary dwellings.
While the Planning Commission passed a motion to recommend approval of the proposed amendments, their deliberation on this issue raised several questions. Regarding the removal of owner occupancy and required enrollment in the City’s RRIS, Commissioners asked if there are ways to make the transition easier for owners of existing ADUs, who would need to modify their deed restriction and enroll in the RRIS under the proposed modifications. Commissioners pondered whether there could be an easier process than requiring each owner to amend their deed restriction, such as allowing the removal of owner-occupancy requirements to be done by operation of law or by sending a notice to the recorder with a list of affected properties. Given new information from HCD that deed restrictions cannot be imposed on ADUs (as discussed further below), the property owner could rescind the deed restriction altogether rather than retaining the deed restriction and removing the owner-occupancy requirement. Staff researched options for removing deed restrictions and determined that since they are recorded against each individual title, the deed restrictions would need to be removed individually from each title. The Department of Planning and Community Development has a streamlined process in place to rescind deed restrictions within a few days.
Commissioners also asked whether RRIS enrollment could be waived for owners of ADUs constructed prior to 2020 who choose to live on the property, thus maintaining their situation under the current requirements. Early in the process, staff had considered an option to only remove the owner-occupancy stipulation from the deed restriction upon request by the owner and then require RRIS enrollment prior to amending the deed restriction. Those who would want to retain the owner occupancy restriction could do so and would not need to enroll in the RRIS.
While this approach would provide flexibility to the pre-2020 ADU owners, it still leaves open the potential for ADUs on owner-occupied sites to have unchecked health and safety problems impactful to tenants. The Code Compliance Division has attested that these issues can occur even on an owner-occupied site. That approach would perpetuate a double standard between those who own ADUs approved prior to 2020 and those who own ADUs approved in 2020 or later and would require tracking and enforcing two sets of ADUs, which would be less efficient in terms of allocating staff resources and time. Requiring all ADUs to enroll in the RRIS would relieve these potential issues.
During the meeting, a few Commissioners raised a concern about the newness of the condominium conversion law and asked if there was any information from other jurisdictions
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that have created an implementing ordinance. The City of San Jose is the only jurisdiction in California that staff knows has adopted an ordinance under AB 1033, and it was adopted in June of this year. Staff reached out to the City of San Jose to learn about their experience with the new ordinance but has not obtained a response as of the writing of this report. Despite not having a case study to consider, staff believes that this option provides significant benefits to Santa Cruz and that the potential downside of displacement has been thoughtfully considered and mitigated with specific anti-displacement measures. The program is optional for Council and could be rescinded at any time. Given the significant need for lower cost ownership housing in the city, staff recommends implementation of the ADU condominium allowances now.
A Planning Commissioner also considered whether the proposed four months of relocation assistance for low- and moderate-income tenants should be reevaluated and reduced to two months. The Subdivision Ordinance currently requires relocation assistance in the form of one and a half months’ rent for any tenant displaced because of conversion of a rental unit to a condominium. The Zoning Ordinance’s residential demolition/conversion authorization permit (RDAP) requires two months’ rent worth of relocation assistance for low- and moderate-income tenants displaced prior to conversion of a unit to a condominium. While AB 1033 requires an ADU condominium project to follow all objective standards within a local subdivision ordinance, it does not provide for local jurisdictions to require other permits such as the City’s RDAP permit. While two months’ rent worth of relocation assistance would be consistent with that currently required under an RDAP permit, the provisions of that permit would only apply for other types of condominium conversions, which are generally only possible when the multifamily vacancy rate is at least five percent. Since ADU conversions would be exempt from this vacancy rate threshold, strengthening tenant protections accordingly could help to balance out the increased flexibility for owners. Increasing relocation assistance to four months’ rent for lowand moderate-income tenants in this case would also align with concurrent efforts to strengthen protections for displaced tenants throughout the city.
Finally, discussion among commissioners raised concerns about certain types of property owners such as the University of California (UC) creating ADU condominiums and whether certain types of owners can be restricted from creating this type of development. Property owned by the UC and rented exclusively to students is not subject to local land use controls, so these regulations would not apply to such property, and the City would not have direct authority to restrict such a use on such UC-owned land. In any case, the proposed amendments are geared towards smaller-scale, single-family properties with the potential for only several condominium conversions, not a typical UC student housing property that is a larger multifamily project. Under the proposed amendments, projects of five units or more are not entitled to a more streamlined ministerial process, so ADU conversions on a larger scale would still have to go through standard public hearings.
Community Outreach
The Department of Planning and Community Development held a virtual community meeting on August 15, 2024, consistent with the department’s Community Outreach Policy. Approximately 30 community members attended the meeting. Staff presented an overview of proposed amendments and obtained feedback from attendees. In addition, staff gave a presentation to the Santa Cruz County Association of Realtors on August 23, 2024, to provide an overview of ADU
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regulations and potential modifications to the regulations. Questions and comments from the attendees focused on the RRIS program, the process for owner-occupancy requirements to be removed from deed restrictions, legalizing unpermitted ADUs, how the separate sale of ADUs would apply to SB 9 developments (both could be utilized on a lot, as long as both sets of regulations are adhered to), and what parking requirement would apply to ADU condominiums.
One comment letter was received prior to the Planning Commission meeting from the California Housing Defense Fund. The letter claimed that the portions of the amendments addressing state law consistency were not adequate. Planning staff reviewed these claims and consulted with the City Attorney and HCD on the items in question. The reviews by the City Attorney and HCD have determined that the proposed amendments are mostly consistent with state law. However, HCD has communicated a new interpretation of state law that is different from their previous communications with staff, which is that requiring deed restrictions for ADUs is not consistent with state law. The draft ordinance has been revised to eliminate the deed restriction requirements for ADUs. Provisions that were required in the deed restrictions are now listed as objective standards within the ordinance, and property owners with deed restrictions for existing ADUs will have the option to rescind their deed restriction. It should be noted that state law does require deed restrictions for JADUs, and those requirements remain in the draft ordinance.
Coastal Commission Review
In addition, after the proposed amendments were brought to Planning Commission, staff was notified by California Coastal Commission staff that they are implementing a new approval process for municipal code changes to ADU regulations that are also within the LCP. This new Coastal Commission process requires the City to formally submit the draft LCP ordinance to HCD to review prior to City Council approval and submittal of the LCP amendment application to the Coastal Commission. Staff’s contact at HCD has advised that their review may not be complete until mid-October, after City Council’s first reading of the ordinance but before the second reading. Should this additional HCD review result in any comments that need to be addressed with revisions to the proposed LCP ordinance, approval of that ordinance would need to be delayed. If this happens, staff recommends splitting these amendments into two separate items and not delaying the non-LCP ordinance on account of the LCP ordinance since the nonLCP ordinance contains changes from the urgency ordinance that must be in effect by December of this year to comply with state law.
NEXT STEPS: Should Council adopt these ordinances, the changes would take effect 30 days after final adoption outside the Coastal Zone. The ordinance containing municipal code sections that are part of the City’s Local Coastal Program Implementation Plan must obtain certification by the Coastal Commission before it can take effect in the Coastal Zone.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The proposed amendments are exempt from CEQA pursuant to Section 15183 as a project consistent with the General Plan for which an EIR was certified. Creation of objective standards related to natural resources such as slopes, heritage trees, watercourses and wetlands, and other sensitive
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habitats are consistent with existing regulations in the Zoning Ordinance and General Plan and involve the type of review that was considered in the General Plan EIR. Further, these amendments are largely made to comply with applicable state laws.
HEALTH IN ALL POLICIES (HIAP): HiAP is a collaborative approach to improving the health of all people by incorporating health considerations into decision-making across sectors and policy areas. HiAP is based on 3 pillars: equity, public health, and sustainability. The goal of HiAP is to ensure that all decision-makers are informed about the health, equity, and sustainability impacts of various policy options during the policy development process. The proposed changes to ADU regulations support the HiAP approach as these revisions support the creation of both rental and ownership ADUs that are typically more affordable by nature, allow for new types of ownership housing, and can provide seniors with an additional option for aging in place. The changes also support streamlined production of ADUs that create new infill housing units, which is an efficient and sustainable use of land. Therefore, the proposal is consistent with the three HiAP pillars.
FISCAL IMPACT: Proposed updates to clarify and streamline ADU regulations and to ensure continued consistency with state law may result in reduced staff time for permit application review, improving the efficiency of Planning services and thus reducing expenses. Creating a new option for mapping ADUs and their associated primary dwellings as condominiums may result in more permit applications that would generate additional revenue in the form of permit fees, though those fees are structured to cover staff costs associated with such reviews. Reduced permitting fees associated with not requiring a tentative parcel map approval for ADU condominium projects resulting in four or fewer condominium lots would decrease the potential revenue per project but could lower the barrier to obtaining permits, resulting in more permit applications and thus more revenue. Additional property tax revenue associated with new housing units would be counteracted by additional costs associated with providing services to the new residents.
Prepared By:
Clara Stanger
Senior Planner
Matt VanHua
Principal Planner
Submitted By:
Lee Butler
Director of Planning &
Community Development
Approved By:
Matt Huffaker
City Manager
ATTACHMENTS:
1. DRAFT ORDINANCE FOR ACCESSORY DWELLING UNIT REGULATIONS
AMENDMENTS, LCP, CLEAN
2. DRAFT ORDINANCE FOR ACCESSORY DWELLING UNIT REGULATIONS
AMENDMENTS, NON-LCP, CLEAN
3. DRAFT ORDINANCE FOR ACCESSORY DWELLING UNIT REGULATIONS
AMENDMENTS, LCP, TRACK CHANGES
4. DRAFT ORDINANCE FOR ACCESSORY DWELLING UNIT REGULATIONS
AMENDMENTS, NON-LCP, TRACK CHANGES
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5. AGENDA REPORT FROM SEPTEMBER 5, 2024 PLANNING COMMISSION
MEETING
6. LETTER FROM HCD DATED FEBRUARY 6, 2024
7. MATRIX DETAILING CITY’S RESPONSES TO HCD COMMENTS ON CURRENT
ORDINANCE
8. CORRESPONDENCE LETTER FROM CALIFORNIA HOUSING DEFENSE FUND DATED SEPTEMBER 5, 2024
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Planning Commission
AGENDA REPORT
DATE: 10/31/2024
AGENDA OF: 11/21/2024
DEPARTMENT: Planning and Community Development
SUBJECT: Planning Commission Public Hearing to review and make a recommendation on amending Santa Cruz Municipal Code Chapters 21.06,
23.04, 23.12, 23.37, 24.08, 24.10, 24.12, and 24.16 and adding new section
24.16.165 to maintain consistency with state regulations for accessory dwelling units, remove owner-occupancy requirements for all accessory dwelling units, and to allow for the condominium mapping and separate sale of accessory dwelling units and their associated primary dwellings.
Amendments to Sections 24.08.810a, 24.08.2140, 24.08.2200, Chapter
24.10, and Section 24.12.250 are part of the Local Coastal Program Implementation Plan (LCP IP) and will require approval by the California Coastal Commission prior to taking effect inside the Coastal Zone. CEQA:
Exempt pursuant to CEQA Guidelines Section 15061(b)(3) as a project that with certainty does not have an effect on the environment and Section 15183 as a project consistent with the General Plan for which an EIR was certified.
RECOMMENDATION: That the Planning Commission make findings for Zoning Ordinance amendments pursuant to Municipal Code Sections 24.06.040 and recommend that the City Council: 1) Acknowledge the Environmental Determination; 2) Approve the proposed ordinances amending accessory dwelling Unit Regulations, including amendments to Santa Cruz Municipal Code Chapters 21.06, 23.04, 23.12, 23.37, 24.08, 24.10, 24.12, and 24.16 and adding new section 24.16.165 and including amendments to the Local Coastal Program; and 3) Direct the City Manager to submit the Local Coastal Program amendments to the California Coastal Commission for approval.
BACKGROUND: During a second reading of the ordinances on October 22, 2024, the City Council adopted ordinances to modify the City’s accessory dwelling unit (ADU) regulations to keep the regulations consistent with state law, improve clarity of existing standards, and to require rented ADUs to enroll in the Residential Rental Inspection Service. The City Council had also considered two additional changes to the ADU regulations: removing owner-occupancy requirements for ADUs constructed prior to 2020 and allowing for the separate sale of ADUs.
The Council did not support these changes at the first reading of the ordinances on October 8, 2024, but during the second reading, Council directed staff to reintroduce these two changes as part of this separate package of amendments responding to recent state legislation.
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Planning Commission Meeting of November 7, 2024
Accessory Dwelling Unit Regulation Amendments
In September, the governor approved two new state laws affecting ADUs: AB 2533 and SB 1211. The first law relates to legalization of unpermitted ADUs and junior ADUs (JADUs), and the second makes changes to parking requirements, number of allowed ADUs, and the standards that can be applied to statewide exemption ADUs. These new state laws take effect January 1, 2025, and the City’s local regulations must reflect these changes by that date to avoid a lapse in enforceability of the City’s ADU ordinance. Therefore, the portions of the proposed amendments that go into effect January 1, 2025 must be brought to Council on December 10, 2025 as an urgency ordinance to avoid a lapse in the City’s Zoning Ordinance.
In addition, the California Coastal Commission and the California Department of Housing and Community Development (HCD) have recently collaborated on an effort to streamline review of changes to ADU ordinances that are also part of a Local Coastal Program (LCP). A new process derived from this effort requires the City to submit a draft of any ordinance that includes ADUrelated LCP amendments to HCD, which should complete their review prior to approval by City Council and subsequent submittal of the ordinance amendments to the Coastal Commission. This new process began after the proposed ordinance amendments were heard by the Planning Commission so the LCP amending ordinance that was recently approved by City Council was submitted to HCD about a month beforehand. HCD completed their review only a few days before the ordinance was approved by City Council and included comments that will be addressed in this package of ordinance amendments.
The ordinances approved by City Council on October 22, 2024 included changes that were under a state-mandated approval deadline, a time constraint that made it impossible to delay approval in order to include any of the above described changes in those amendments. Therefore, the follow-up amendments proposed here address City Council direction on owner-occupancy and separate sale of ADUs, the new state laws, and comments from HCD’s review of the recently approved LCP amending ordinance.
DISCUSSION:
SB 1211
In September 2024, SB 1211 was signed into law and goes into effect on January 1, 2025. This bill makes several changes to ADU law, including increasing the number of detached, new construction statewide exemption ADUs allowed on a site with a multi-family building. While existing law allows up to two such units, the new law will allow up to eight units to be constructed on a site with an existing multi-family building, but no more than the number of units in the building. The proposed amendments reflect this change.
The new law also prohibits a local agency from requiring uncovered parking spaces to be replaced if they are removed to create a new ADU. The City’s ordinance already aligns with this requirement (24.16.141.2) outside of the coastal zone. Within the coastal zone, uncovered required parking spaces are required to be replaced if removed to construct the ADU, and within a small, defined area of the coastal zone near the coastline, any required parking space, covered or uncovered, is required to be replaced. The parking requirements specific to the coastal zone were required by the Coastal Commission, which can supersede state law in this case. Therefore, no changes are required to the City’s ordinance to remain consistent with state law as modified by the Coastal Commission.
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Planning Commission Meeting of November 7, 2024
Accessory Dwelling Unit Regulation Amendments
Finally, this new legislation substantially limits the development standards that can be applied to statewide exemption ADUs. Existing law requires local jurisdictions to approve statewide exemption ADUs but is silent on what types of development standards could or could not be applied to these ADUs. Staff had consulted with the state Department of Housing and Community Development (HCD) on this question and were advised that objective standards could be applied as long as they did not directly conflict with the definition of a statewide exemption ADU in terms of building size, height, and setbacks. However, SB1211 now adds new language that prohibits a local jurisdiction from applying standards that are not explicitly included in Government Code Section 66323, the section that defines statewide exemption ADUs. The standards defined within this section include the number of units allowed, building height, setbacks, unit size, exterior access, and a requirement that rental duration be for longer than 30 days. To align with this law, the proposed amendments remove the applicability of development, design, and use standards on statewide exemption ADUs unless they are standards mentioned above.
AB2533
Assembly Bill 2533 makes changes to state law regulating the legalization of unpermitted ADUs.
Existing law restricts the allowable reasons to deny a permit to legalize an unpermitted ADU constructed prior to January 1, 2018 to those needed to protect the health and safety of the occupants. The new law makes several changes. First, it includes unpermitted JADUs in addition to ADUs. Second, the law now applies to any unpermitted ADU or JADU constructed prior to January 1, 2020 rather than January 1, 2018. Third, it further restricts the allowable reasons to deny a permit to legalize an unpermitted ADU to those specifically related to substandard conditions as defined in standards that can apply to those specifically related to substandard conditions listed under Section 17920.3 of the Health and Safety Code. The proposed amendments would make applicable changes to the Zoning Ordinance.
HCD Review of Previous LCP Amending Ordinance
The Coastal Commission and HCD recently collaborated on an effort to streamline review of ADU regulating ordinances that are also part of the LCP. A new process derived from this effort requires the City to submit a draft LCP ordinance to HCD for review before approval by City Council and submittal of the ordinance to the Coastal Commission as an LCP amendment. The previous LCP ordinance on which the current proposal follows up was submitted to HCD staff, who completed their review a few days before the ordinance was approved by City Council. The review letter included several comments related to the applicability of standards to statewide exemption ADUs pursuant to SB 1211, as well as a few other minor comments, which the current draft ordinance addresses. The attached City Responses to HCD Review of LCP Amending Ordinance 2024-17 details the City’s response to each of the comments from HCD.
Removal of Owner Occupancy Requirement
At the September 5, 2024 Planning Commission meeting, the Commission recommended that the City Council remove owner-occupancy requirements for all ADUs, including those constructed prior to 2020. At the October 8, 2024 City Council meeting, the City Council voted not to approve this part of the ordinance presented to them, citing concerns about protecting local ownership, neighborhood integrity, and housing prices. After this first reading, staff and Council received feedback from several community members expressing concerns about equity. Staff also received information from state legislators and HCD indicating that the supposed intent of AB 976, the new state law prohibiting owner-occupancy requirements, was to apply to all ADUs
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Planning Commission Meeting of November 7, 2024
Accessory Dwelling Unit Regulation Amendments
regardless of construction date. At the October 22, 2024 City Council meeting, the City Council provided direction to staff to include the removal of owner-occupancy requirements for all ADUs in a follow-up ordinance. The proposed amendments to remove all owner-occupancy requirements are therefore consistent with what the Planning Commission already reviewed on September 5th. Since the Commission has already made a recommendation on these amendments, an additional recommendation is not necessary.
Separate Sale of ADUs
Proposed amendments to allow the sale of ADUs were also reviewed by the Planning Commission on September 5, 2024. Similar to the owner-occupancy question, the City Council initially voted to reject this part of the proposal at the October 8th City Council meeting.
However, at the October 22 City Council meeting, Council directed staff to bring it back as part of the follow-up ADU ordinance amendments for further consideration. The proposed modifications associated with this topic are identical to those reviewed by the Planning Commission on September 5th. Since the Commission has already made a recommendation on these amendments, an additional recommendation is not necessary.
General Plan and Local Coastal Program Consistency
The proposed amendments further general plan policies to promote the production of housing and affordable housing, facilitate production of ADUs, and remove ADU owner-occupancy requirements, including:
Housing Element Policy 1.1 Provide adequate sites and supporting infrastructure to accommodate housing through land use, zoning, and specific plan designations that encourage a broad range of housing opportunities.
Housing Element Policy Policy 1.3 Facilitate the production of residential units through design and compatibility review, use of objective development standards, and regulatory and/or financial incentives.
Housing Element Policy 1.5 Facilitate the development of Accessory Dwelling Units. Housing Element Policy 1.5b. Continue to implement the City’s ADU program and communicate with ADU applicants to identify ways to modify the program in a manner that facilitates the production of ADUs, including continuation of the allowance for conversion of non-habitable space in multi-family projects to ADUs to be constructed simultaneously with new development projects. Continue public awareness campaigns regarding the construction of ADUs and available incentives through diverse forms of media and outreach distribution.
Housing Element Policy 1.5d. Present to Council amendments to the City’s ADU regulations regarding owner occupancy to provide greater flexibility to existing and future ADU developments.
Housing Element Policy 2.2 Develop creative ways to facilitate more affordable housing development in the City.
Housing Element Policy 6.2c. Revise ADU regulations to provide additional units in single-family zoning by such methods as removing owner occupancy requirements, allowing additional ADUs under certain circumstances, or similar measures. LU3.8 Allow the following residential uses to exceed the maximum densities in this chapter: Cf. LU1.3 and 3.7.1.
o Single-room occupancy (SRO) units;
o Flexible density units (FDU);
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Planning Commission Meeting of November 7, 2024
Accessory Dwelling Unit Regulation Amendments
o Small studio and one-bedroom units;
o Accessory dwelling units (ADU);
o Density bonus units; and
o Residential uses within areas designated High-Density Overlay District (HD-O).
Some of the proposed amendments are also part of the Local Coastal Program, including minor changes to standards for slope development permits, watercourse development permits, and watercourse variances as they relate to ADUs; zone district allowed uses related to ADUs and JADUs; and bicycle parking requirements for multi-family developments. The proposed amendments are consistent with LCP Community Design Element policy 1.1, which calls for infill and intensification of land uses consistent with existing neighborhood or commercial district patterns in developed areas currently served by municipal services.
While the amendments remove the City’s ability to require setbacks related to slopes, watercourses, or wetlands for statewide exemption ADUs, the amendments still require statewide exemption ADUs adjacent to a watercourse or wetland and that require a coastal permit to comply with the standards of the Citywide Creeks and Wetlands Management Plan, since this plan is part of the LCP. While application of this plan on statewide exemption ADUs would not normally be permissible under state ADU law, this law does not supersede the Coastal Act, which seeks to protect coastal resources such as watercourses and wetlands and is implemented locally through the City’s LCP. These standards are consistent with several LCP policies, including:
Environmental Quality Element 4.2 Preserve and enhance the character and quality of riparian and wetland habitats, as identified on Maps EQ-8 and EQ-11, or as identified through the planning process or as designated through the environmental review process. Environmental Quality Element 4.2.5 Protect and minimize the impact of development on bird, fish and wildlife habitat in and adjacent to waterways. Community Design Element 6.1 Protect existing significant vegetation and landscaping that provides scenic as well as wildlife habitat and forage value. (See policies under Goal EQ 4.)
Community Outreach
Most of the proposed changes are made to maintain consistency with state law and do not involve policy decisions; therefore, community outreach was not conducted for these changes.
Previously reviewed changes related to owner-occupancy and separate sale of ADUs involved several community outreach events, including a community meeting on August 15, a presentation to the Santa Cruz County Association of Realtors on August 23, and connecting with residents at the Westside Engagement Community Meeting on September 19.
Findings
Zoning Ordinance Section 24.06.040 requires that prior to making a recommendation for approval of Zoning Ordinance amendments to the City Council, the Planning Commission shall make findings that the public necessity, and the general community welfare, and good zoning practice shall be served and furthered; and that the proposed amendment is in general conformance with the principles, policies and land use designations set forth in the General Plan, Local Coastal Plan and any adopted area or specific plan.
30.217
Planning Commission Meeting of November 7, 2024
Accessory Dwelling Unit Regulation Amendments
Similar findings are also required in the Local Coastal Program for any amendments to the LCP.
These findings include: (1) the proposed amendment is deemed to be in the public interest; (2) the proposed General Plan and/or Local Coastal Program amendment is consistent and compatible with the rest of the General Plan and LCP and any implementation programs that may be affected; (3) the potential impacts of the proposed amendment have been assessed and have been determined not to be detrimental to the public health, safety, or welfare; and (4) the proposed amendment has been processed in accordance with the applicable provisions of the California Government Code and the California Environmental Quality Act (CEQA).
The proposed amendments serve and further public necessity and general community welfare by supporting the creation of ADUs, a housing type affordable by nature, throughout the city. The amendments further good zoning practice by maintaining consistency with state law and improving clarity of regulations. The proposed amendments are in general conformance with the principles, policies and land use designations set forth in the General Plan, Local Coastal Plan and any adopted area or specific plan as described above. The proposed amendments are consistent with the provisions of CEQA as discussed at the end of this report.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: The proposed amendments are exempt from CEQA pursuant to Section 15183 as a project consistent with the General Plan for which an EIR was certified.
HEALTH IN ALL POLICIES (HIAP): HiAP is a collaborative approach to improving the health of all people by incorporating health considerations into decision-making across sectors and policy areas. HiAP is based on 3 pillars: equity, public health, and sustainability. The goal of HiAP is to ensure that all decision-makers are informed about the health, equity, and sustainability impacts of various policy options during the policy development process. The proposed changes to accessory dwelling unit regulations support the HiAP approach as these revisions support the creation of both rental and ownership accessory dwelling units that are typically more affordable by nature, allow for new types of ownership housing, and can provide seniors with an additional option for aging in place. The changes also support streamlined production of accessory dwelling units that create new infill housing units, which is an efficient and sustainable use of land. Therefore, the proposal is consistent with the three pillars of the HiAP.
Submitted By:
Clara Stanger
Senior Planner
Approved By:
Matt VanHua, AICP
Principal Planner
ATTACHMENTS:
1. Draft ordinance for accessory dwelling unit regulations amendments, LCP, strikeoutunderline
2. Draft ordinance for accessory dwelling unit regulations amendments, non-LCP, strikeoutunderline
30.218
Planning Commission Meeting of November 7, 2024
Accessory Dwelling Unit Regulation Amendments
3. HCD Review of LCP Amending ADU Ordinance 2024-17
4. City Responses to HCD Review of LCP Ordinance 2024-17
30.219
1 Julia Wood
From: [email protected]
Sent: Thursday, December 5, 2024 11:15 PM
To: City Council
Cc: Renee Golder; Fred Keeley; Sandy Brown; Sonja Brunner; Shebreh Kalantari-Johnson; Martine Watkins; Scott Newsome
Subject: #30, ADU Ordinance, Remove Owner Occupancy
December 5, 2024
Dear City Council Members,
I am an owner of an ADU which has not had the Owner Occupancy Deed Restriction removed to achieve equity with the more recently constructed ADUs. I’ve written before about this issue and attended the last meeting about it in October when it seemed as if the council had given more consideration to the lack of fairness in characterizing the older ADUs and the newer ones with unequal weight. I seriously hope that council has arrived at the conclusion that all ADU owners need to be treated equally regarding this issue and remove the Owner Occupancy Deed Restriction.
When I first purchased this property the previous owners (who built the home and ADU) were renting the ADU and I have continued to do so ever since to supplement my income and pay the high cost of living in Santa Cruz. Owning and operating a rental property is costly. I won’t go into the details but if you have never been in the business you might be surprised. The next council meeting including this Agenda Item (#30) is ironically on the same day that property taxes are due (Dec 10th) and that is one of the many reasons I need this income, especially since I am now retired and my other source of income is Social Security. Should I be required to live elsewhere due to ill health or any other reason I would not like to leave both my home and ADU empty and unrented; this is obviously counterproductive to what both my financial needs would be and the city’s professed desire to increase the rental housing stock in the city.
For almost 14 years I have been dealing with the city in good faith, following all the rules. I would very much like to have the city return the favor, especially on the most expensive day of the year, Property Tax Day. Please remove the Owner Occupancy Deed Restriction on all ADUs, not just the newly constructed ones.
Thank you for your time and attention,
Robin Cunningham
30.220
2 Julia Wood
From: Thomas Hamilton <[email protected]>
Sent: Friday, December 6, 2024 4:39 AM
To: City Council
Subject: ADU
Dear Mayor Keeley and City Council Members:
I request that you remove the owner occupancy deed restrictions from my ADU.
It is unfair to penalize those people who built legal ADUs before 2020, at a time when the city had many more expensive requirements and regulations, such as fire sprinklers, covered parking, size restrictions, setbacks, energy restrictions, deed restrictions, and many layers of oversight and bureaucracy that added many thousands of dollars to the cost of construction. ADUs built currently have no such requirements. We believe that current legislation requires you to remove owner occupancy restrictions for all ADUs.
Maintaining owner occupancy requirements limits what homeowners can do with their ADUs. For example, people needing to move to assisted living cannot fulfill the owner occupancy requirement and therefore cannot rent out their ADUs, reducing rentals in the community while limiting income for seniors who might need it to pay for assisted living costs. People who travel extensively also cannot rent out their ADUs, limiting community rentals. One of the original goals expressed for creating ADUs was to increase community rentals; requiring owner occupancy is counterproductive. Limiting the use of ADUs by owner occupancy deed restrictions makes our properties worth less and less desirable to potential buyers, who will also face these same rental limitations.The lack of flexibility of use for ADUs creates unintended consequences resulting in real issues for tenants, who will be forced to move if the owner has to leave for an extended time for any reason.
Please remove the owner occupancy deed restrictions to be fair to those who built legal ADUs as early adopters. Increase rentals by removing restrictions. Provide flexibility to those who need rental income to provide for their own assisted living expenses.
Remove the owner occupancy deed restrictions that only penalize early adopters who went to the time, trouble and significant expense to follow the rules. Thank you for addressing this inequity.
----------------
놕놅놆녿놀
--
Thomas Hamilton
30.221
3 Julia Wood
From: Lena Blackburn <[email protected]>
Sent: Friday, December 6, 2024 6:59 AM
To: City Council
Subject: ADU Deed Restrictions
Dear Mayor Keeley and City Council Members:
I request that you remove the owner occupancy deed restrictions from my ADU.
It is unfair to penalize those people who built legal ADUs before 2020, at a time when the city had many more expensive requirements and regulations, such as fire sprinklers, covered parking, size restrictions, setbacks, energy restrictions, deed restrictions, and many layers of oversight and bureaucracy that added many thousands of dollars to the cost of construction. ADUs built currently have no such requirements. We believe that current legislation requires you to remove owner occupancy restrictions for all ADUs.
Maintaining owner occupancy requirements limits what homeowners can do with their ADUs. For example, people needing to move to assisted living cannot fulfill the owner occupancy requirement and therefore cannot rent out their ADUs, reducing rentals in the community while limiting income for seniors who might need it to pay for assisted living costs. People who travel extensively also cannot rent out their ADUs, limiting community rentals. One of the original goals expressed for creating ADUs was to increase community rentals; requiring owner occupancy is counterproductive. Limiting the use of ADUs by owner occupancy deed restrictions makes our properties worth less and less desirable to potential buyers, who will also face these same rental limitations.The lack of flexibility of use for ADUs creates unintended consequences resulting in real issues for tenants, who will be forced to move if the owner has to leave for an extended time for any reason.
Please remove the owner occupancy deed restrictions to be fair to those who built legal ADUs as early adopters. Increase rentals by removing restrictions. Provide flexibility to those who need rental income to provide for their own assisted living expenses.
Remove the owner occupancy deed restrictions that only penalize early adopters who went to the time, trouble and significant expense to follow the rules. Thank you for addressing this inequity.
Sincerely,
Lena Blackburn
Sent from my iPhone
30.222
4 Julia Wood
From: Germaine Akin <[email protected]>
Sent: Friday, December 6, 2024 8:24 AM
To: City Council
Subject: 30, ADU Ordinance, Remove Owner Occupancy
--------------
Dear Mayor Keeley and City Council Members:
I request that you remove the owner occupancy deed restrictions from my ADU.
It is unfair to penalize those people who built legal ADUs before 2020, at a time when the city had many more expensive requirements and regulations, such as fire sprinklers, covered parking, size restrictions, setbacks, energy restrictions, deed restrictions, and many layers of oversight and bureaucracy that added many thousands of dollars to the cost of construction. ADUs built currently have no such requirements. We believe that current legislation requires you to remove owner occupancy restrictions for all ADUs.
Maintaining owner occupancy requirements limits what homeowners can do with their ADUs. For example, people needing to move to assisted living cannot fulfill the owner occupancy requirement and therefore cannot rent out their ADUs, reducing rentals in the community while limiting income for seniors who might need it to pay for assisted living costs. People who travel extensively also cannot rent out their ADUs, limiting community rentals. One of the original goals expressed for creating ADUs was to increase community rentals; requiring owner occupancy is counterproductive. Limiting the use of ADUs by owner occupancy deed restrictions makes our properties worth less and less desirable to potential buyers, who will also face these same rental limitations.The lack of flexibility of use for ADUs creates unintended consequences resulting in real issues for tenants, who will be forced to move if the owner has to leave for an extended time for any reason.
Please remove the owner occupancy deed restrictions to be fair to those who built legal ADUs as early adopters. Increase rentals by removing restrictions. Provide flexibility to those who need rental income to provide for their own assisted living expenses.
Remove the owner occupancy deed restrictions that only penalize early adopters who went to the time, trouble and significant expense to follow the rules. Thank you for addressing this inequity.
----------------
Germaine Akin
30.223
5 Julia Wood
From: Susanne Millar <[email protected]>
Sent: Friday, December 6, 2024 10:39 AM
To: City Council
Subject: #30, ADU Ordinance, Remove Owner Occupancy
To the City Council of Santa Cruz,
I have owned a home in Santa Cruz since 1996. I’m writing to you about the ADU requirements for owner occupancy. I’m aware that there are many others who’ve been writing to you about the same topic and I wanted to voice my concerns as well.
I’ve rented to USCS Students for 12 years and not only was I an excellent landlord, but I’m friends with many of my former renters who’ve gotten married, had babies, and returned for visits in our home. We are good neighbors and good landlords - just the kind Santa Cruz needs more of, not less.
I complied for many years with the Rental Inspection program with the City of Santa Cruz. I think that’s an excellent way to make sure rentals are safe for renters. I’m much more willing to comply with that kind of inspection program regarding rentals than having restrictions filed on my property which limit my rights and income as a homeowner.
I’m asking that you remove the Owner Occupancy requirements in order to free up rental units without the unfair burden placed by the City on our deeds.
I want to thank the City Council for your willingness to look into this situation for those of us unlucky enough to have completed our ADUs before 2020 (we missed the magic window by mere months). I hope you can assist in eliminating this unfair inequity.
Thank you for your time and I do hope that the City aligns their decision to meet the State's.
30.224
6 Julia Wood
From: Bruce Dykaar <[email protected]>
Sent: Friday, December 6, 2024 11:18 AM
To: City Council
Subject: #30, ADU Ordinance, Remove Owner Occupancy
Dear Mayor Keeley and City Council Members:
I request that you remove the owner occupancy deed restriction from pre 2020 ADUs. I have a pre 2020 ADU and I want the deed restriction removed primarily because,
1. It limits what I can do with my property, if say, I want to travel extensively or need to move for some other reason and need the rental income.
2. It makes my property worth less than similar post 2020 properties that don’t have the deed restriction. It is not a fair restriction.
Further, I think that current state law AB 976 makes local owner occupancy requirements invalid for all ADUs. I believe the bill prohibits local governments from imposing these requirements entirely for ADUs of any age.
Please remove the owner occupancy deed restrictions so Santa Cruz does not have a patchwork of ADU properties with deed restrictions and give all ADU property owners the same flexibility to rent their properties as they may need.
Thank you,
Bruce Dykaar
30.225
7 Julia Wood
From: Monica Larenas <[email protected]>
Sent: Friday, December 6, 2024 12:41 PM
To: City Council
Cc: Veronica Larenas
Subject: Comment on item #30: ADU Ordinance, Remove Owner Occupancy Dear Mayor Keely and Santa Cruz City Council Members,
We urge you to remove the “Owner Occupancy” requirements for all ADU’s in the city for older ADU’s so that all ADU’s within Santa Cruz will have equal status regarding this requirement.
As owners of a property with an ADU we ask this not because we need, or can even foresee needing, to rent both units without us living here, but because this change in the ADU Ordinance is reasonable and fair for property owners.
I want to also point out, that ADUs are an affordable way to live for residents in Santa Cruz.
My sister and I own a property with an ADU on Darwin Street in Santa Cruz. We built the ADU in 1995-96 and it’s been the ‘family compound’ ever since, allowing us to care for our aging parents while one of us lived here. We have now both lived on property continuously for many years. This arrangement has allowed us to afford to own homes here (neither one of us could afford to buy a property by ourselves, even in the mid- 1990’s). It also helps us because we share maintenance costs, property taxes, etc.. As retired residents on very limited income, this is simply a blessing.
While many raise the fear of developers being the main ones to develop ADUs, in my experience on the Eastside, it is families or friends doing this, finding creative ways to live in our insanely expensive city. For example, from our backyard I can see two other properties (one on Windham, one on Sumner) that are ‘family compounds’ - two legal units with family members living in both, for many years.
I share this to encourage you to support this kind of development knowing that it really works and is a godsend!
Thanks to each of you for all your public service.
Sincerely,
Monica Larenas
Veronica Larenas
215/217 Darwin Street
30.226
8 Julia Wood
From: Zumwalt, Rosemary <[email protected]>
Sent: Friday, December 6, 2024 3:09 PM
To: City Council
Subject: Memo with respect to #30, ADU Ordinance, Remove Owner Occupancy Attachments: City Council memo ADU.docx
Dear City Council Members:
Please see attached memo.
Best,
Rosemary Lévy Zumwalt
Dean of the College Emerita
Professor Emerita of Anthropology
Agnes Scott College
115 Ladera Drive
Santa Cruz, CA 95060
706 867-5359
30.227
1 To: Santa Cruz City Council
[email protected]
From: Rosemary Lévy Zumwalt
[email protected]
Resident of 115 Ladera Street
And owner of 115B Ladera Street, ADU
Re: #30, ADU Ordinance, Remove Owner Occupancy
Dear Mayor Keeley and City Council Members:
I request that you remove the owner occupancy deed restrictions from my ADU.
It is unfair to penalize those people who built legal ADUs before 2020, at a time when the city had many more expensive requirements and regulations, such as fire sprinklers, covered parking, size restrictions, setbacks, energy restrictions, deed restrictions, and many layers of oversight and bureaucracy that added many thousands of dollars to the cost of construction. ADUs built currently have no such requirements. We believe that current legislation requires you to remove owner occupancy restrictions for all ADUs.
My ADU was built by the previous owners of my property in 2009. Currently my daughter lives in the ADU. I live in the front, main house with my grandchildren. Next week, I will turn eighty years old. In January 2023, I was diagnosed with Parkinson’s Disease. I might well face the decision to move into a care facility. If this is the case, I would certainly not want to jeopardize my daughter and grandchildren’s residence.
Maintaining owner occupancy requirements limits what homeowners can do with their ADUs. For example—and this might well apply to me—people needing to move to assisted living cannot fulfill the owner occupancy requirement and therefore cannot rent out their ADUs, reducing rentals in the community while limiting income for seniors who might need it to pay for assisted living costs. People who travel extensively also cannot rent out their ADUs, limiting community rentals. One of the original goals expressed for creating ADUs was to increase community rentals; requiring owner occupancy is counterproductive. Limiting the use of ADUs by owner occupancy deed restrictions makes our properties worth less and less desirable to potential buyers, who will also face these same rental limitations. The lack of flexibility of use for ADUs creates unintended consequences resulting in real issues for tenants, who will be forced to move if the owner has to leave for an extended time for any reason.
30.228
2 Please remove the owner occupancy deed restrictions to be fair to those who built legal ADUs as early adopters. Increase rentals by removing restrictions. Provide flexibility to those who need rental income to provide for their own assisted living expenses. Remove the owner occupancy deed restrictions that only penalize early adopters who went to the time, trouble and significant expense to follow the rules. Thank you for addressing this inequity.
Sincerely,
Rosemary Lévy Zumwalt
Dean of the College Emerita
Professor Emerita of Anthropology
Agnes Scott College
115 Ladera Drive
Santa Cruz, CA 95060
706 867-5359
30.229
9 Julia Wood
From: Craig Fellers <[email protected]>
Sent: Friday, December 6, 2024 4:04 PM
To: City Council
Subject: Item 30. ADU Ordinance. Remove Owner Occupancy Dear Mayor Keeley and City Council Members,
I respectfully request the removal of owner-occupancy deed restrictions from my Accessory Dwelling Unit (ADU).
It is unfair to penalize early adopters who built legal ADUs prior to 2020, when the city imposed more stringent regulations, including fire sprinklers, covered parking, size restrictions, setbacks, energy efficiency standards, and burdensome bureaucratic processes that significantly increased construction costs. In contrast, current ADU regulations are less restrictive. We believe that current legislation mandates the removal of owner-occupancy restrictions for all ADUs.
Maintaining owner-occupancy requirements limits the flexibility and potential benefits of ADUs. For instance, homeowners transitioning to assisted living may be unable to fulfill the owner-occupancy requirement, reducing rental housing options in the community while limiting their income source for essential care. Similarly, frequent travelers are unable to rent out their ADUs, further restricting housing availability. One of the original goals of ADU programs was to increase rental housing supply; owner-occupancy requirements counter this objective.
By limiting the use of ADUs, owner-occupancy deed restrictions diminish property values and deter potential buyers who would face the same rental limitations. Additionally, these restrictions can create unintended consequences for tenants who may be forced to relocate if the owner is absent for an extended period.
To promote fairness for early adopters, increase rental housing supply, and provide flexibility for homeowners, I urge you to remove owner-occupancy deed restrictions. By eliminating these outdated regulations, we can create a more equitable and sustainable housing market.
Thank you for your attention to this matter.
Craig Fellers
30.230
10 Julia Wood
From: Diana Camarlinghi <[email protected]>
Sent: Saturday, December 7, 2024 6:11 AM
To: City Council
Subject: #30 ADU Ordinance Remove Owner Occupancy
Dear Mayor Keeley and City Council Members:
I request that you remove the owner occupancy deed restrictions from my ADU.
It is unfair to penalize those people who built legal ADUs before 2020, at a time when the city had many more expensive requirements and regulations, such as fire sprinklers, covered parking, size restrictions, setbacks, energy restrictions, deed restrictions, and many layers of oversight and bureaucracy that added many thousands of dollars to the cost of construction. ADUs built currently have no such requirements. We believe that current legislation requires you to remove owner occupancy restrictions for all ADUs.
Maintaining owner occupancy requirements limits what homeowners can do with their ADUs. For example, people needing to move to assisted living cannot fulfill the owner occupancy requirement and therefore cannot rent out their ADUs, reducing rentals in the community while limiting income for seniors who might need it to pay for assisted living costs. People who travel extensively also cannot rent out their ADUs, limiting community rentals. One of the original goals expressed for creating ADUs was to increase community rentals; requiring owner occupancy is counterproductive. Limiting the use of ADUs by owner occupancy deed restrictions makes our properties worth less and less desirable to potential buyers, who will also face these same rental limitations.The lack of flexibility of use for ADUs creates unintended consequences resulting in real issues for tenants, who will be forced to move if the owner has to leave for an extended time for any reason.
Please remove the owner occupancy deed restrictions to be fair to those who built legal ADUs as early adopters. Increase rentals by removing restrictions. Provide flexibility to those who need rental income to provide for their own assisted living expenses.
Remove the owner occupancy deed restrictions that only penalize early adopters who went to the time, trouble and significant expense to follow the rules. Thank you for addressing this inequity.
Diana Camarlinghi
205 Marnell Ave.
30.231
11 Julia Wood
From: Garrett <[email protected]>
Sent: Saturday, December 7, 2024 10:29 AM
To: City Council
Subject: Agenda Item #30 More destruction of SFR housing ordinance Agenda Item #30 More destruction of SFR housing ordinance Dear Council,
The idea that you should go further than the State in rescinding previously agree to deed restrictions on owner occupied ADU properties has one logical flaw. The State was wrong in the first place to even temporarily, then permanently allow SFR housing with ADI's to go full rental.
You know the reasons it was wrong.
SFR owner occupied housing is better for families.
Renters and landlords have little reason for additional investment or oversight of such properties (especially in rent controlled Santa Cruz).
ADU's increase density removing low density and now increase renter/owner ratios.
Density allowances increase housing costs because the land is then worth more.
The singular reason you get so many letters from deed restricted ADU property owners is... wait for it... GREED.
There is no other reason for these people to speak up unless they either a) they intend to sell/move and sell to a rental investor, b) move and rent both (or more) units out.
Either way, they are no longer neighborhood residents and no longer have home owner as a home motivation to maintain neighborhood character and improve properties as their motivations shift to making money.
Yes, properties with restrictions are worth less than ones that aren't because there are more buyers (investors) interested in buying up such properties.
I found it amusing you all at first rejected this idea based on the merits I outlined above, but then when a few owners, again motivated by greed, not "it's unfair!", the fickle wet finger in the air testing the wind direction told you to succumb to these few owners. I don't think you heard from their soon to be renter invaded neighbors, but such is the politics of loud screechy protest.
Garrett Philipp
30.232
12 Julia Wood
From: Cindy Firenzi <[email protected]>
Sent: Saturday, December 7, 2024 11:48 AM
To: City Council
Subject: 12/10 Agenda item #30, ADU owner-occupancy
Dear Mayor Keeley and City Council Members,
Thank you for acknowledging the arbitrary inequity of the owner-occupancy requirement for pre-2020 ADU properties and for asking the City staff to revisit the issue. I am grateful as well to the Planning Department for researching and clarifying the equity concern so thoroughly.
Finally, a heartfelt thank you to Council Members Brown and Watkins for the thousands of hours you have devoted to “we issues” rather than “me issues.” Few of us can claim that. Your selfless commitment to the welfare of our city has always been apparent.
I wish you all a peaceful holiday season,
Cindy Firenzi
30.233
13 Julia Wood
From: Barry Tonge <[email protected]>
Sent: Saturday, December 7, 2024 3:30 PM
To: City Council
Subject: #30, ADU Ordinance, Remove Owner Occupancy
Dear Mayor Keeley and City Council Members:
I request that you remove the owner occupancy deed restrictions from my ADU.
It is unfair to have two different sets of rules in the same city for two people with the same ADU, simply built at two different times. We believe that current legislation requires you to remove owner occupancy restrictions for all ADUs.
We have used our ADU to assist traveling health professionals (nurses, physical therapists and specialists) come to our area to provide the much needed support to our local hospital care. Both my wife and I have 3 sets of aging parents that have so far required short times of care. We foresee in the decade to come the frequency of needed support increasing. If we had the freedoms currently afforded those without the deed restriction, we could rent our home for 6-12 months to a family in transition or to traveling health professional that is traveling with family members.
Please remove the owner occupancy deed restrictions to be fair to those who built legal ADUs as early adopters. Increase rentals by removing restrictions. Provide flexibility to those who need rental income to provide for their own assisted living expenses or that of parents as is our case.
Remove the owner occupancy deed restrictions that only penalize early adopters who went to the time, trouble and significant expense to follow the rules. Thank you for addressing this inequity.
----------------
Wishing us all good luck!
Yours,
Barry & Christy Tonge
--
89 Rooney St, Santa Cruz, CA 95065
[email protected]
650.444.4027 cell
30.234
14 Julia Wood
From: Peter Jones <[email protected]>
Sent: Saturday, December 7, 2024 9:17 PM
To: City Council
Subject: #30, ADU Ordinance, Remove Owner Occupancy
Dear Mayor Keeley and City Council Members:
I request that you remove the owner occupancy deed restrictions from my ADU.
We built our ADU in 2016, complying with all of the requirements at the time. Conditions have evolved and we all see the
relaxing of rules pertaining to these ADU’s. I want to ask, if it has now been determined that owner occupancy of ADU’s
is no longer in the interest of the community, why are we the owners needing to plead our case to have this requirement removed. You, who have the power to remove this requirement, need to justify to us why it is in the interest of the community to just have our ADU’s subject to this burden. Should the requirement not be removed, during the next election we will be looking for candidates who will advocate for us. Separately, if there is some justification for not removing it immediately, please consider reducing the requirement to 10 years as opposed to a lifetime. At least it will be on the horizon for most of us.
It is unfair to penalize those people who built legal ADUs before 2020, at a time when the city had many more expensive requirements and regulations, such as fire sprinklers, covered parking, size restrictions, setbacks, energy restrictions, deed restrictions, and many layers of oversight and bureaucracy that added many thousands of dollars to the cost of construction. ADUs built currently have no such requirements. We believe that current legislation requires you to remove owner occupancy restrictions for all ADUs.
Maintaining owner occupancy requirements limits what homeowners can do with their ADUs. For example, people needing to move to assisted living cannot fulfill the owner occupancy requirement and therefore cannot rent out their ADUs, reducing rentals in the community while limiting income for seniors who might need it to pay for assisted living costs. People who travel extensively also cannot rent out their ADUs, limiting community rentals. One of the original goals expressed for creating ADUs was to increase community rentals; requiring owner occupancy is counterproductive.
Limiting the use of ADUs by owner occupancy deed restrictions makes our properties worth less and less desirable to potential buyers, who will also face these same rental limitations.
The lack of flexibility of use for ADUs creates unintended consequences resulting in real issues for tenants, who will be forced to move if the owner has to leave for an extended time for any reason.
Please remove the owner occupancy deed restrictions to be fair to those who built legal ADUs as early adopters. Increase rentals by removing restrictions. Provide flexibility to those who need rental income to provide for their own assisted living expenses.
Remove the owner occupancy deed restrictions that only penalize early adopters who went to the time, trouble and significant expense to follow the rules.
Thank you for addressing this inequity.
30.235
15 Peter Jones
30.236
16 Julia Wood
From: Sharon Strelitz <[email protected]>
Sent: Sunday, December 8, 2024 6:46 PM
To: Renee Golder; Shebreh Kalantari-Johnson; Sandy Brown; Scott Newsome; Sonja Brunner; Fred Keeley; City Council
Subject: #30, ADU Ordinance, Remove Owner Occupancy
Hello - My name is Sharon Strelitz. I have written to you previously about older ADUs having the Owner Occupancy Requirement removed. Once again this topic is on the city council agenda. Please do not penalize older ADUs.
My situation is that my daughter lives outside of Santa Cruz and both she and her husband work full time. I am now retired and want to be able to help them in their careers by helping with my two granddaughters. Due to the owner occupancy requirement I am not able to help them out more than six months per year.
If the owner occupancy requirement was removed, I would be able to rent out my house, thus providing housing. Any other owner who needed to live elsewhere (assisted living, helping an aging parent, etc.) for whatever reason could also provide housing.
Furthermore, the value of the property is reduced by the simple fact that a new owner must live on this property. This means that new owners who would plan to rent out all spaces on the property cannot buy it. The reduces the number of people that will want to buy an older ADU and thus has reduced the value of the property.
It is not clear to me why you feel you need guidance from the State on this matter. It seems like a fairly clear case of equity between newer and older ADUs. Why would some rules apply to one and not the other?
Many thanks for your consideration of this important issue, Sharon Strelitz
30.237
17 Julia Wood
From: Santa Cruz YIMBY <[email protected]>
Sent: Sunday, December 8, 2024 8:33 PM
To: City Council
Cc: [email protected]
Subject: Item #30 Dec 10th Agenda - Approve ADU Sales
Attachments: Santa Cruz YIMBY Petition - Approve ADUs - Item 30 on 12-10-24.pdf Hello,
Please find attached Santa Cruz YIMBY's petition for approval of the ADU ordinance as is, item #30 on your Dec 10th agenda.
Sincerely
Janine Roeth
on behalf of Santa Cruz YIMBY
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Expand Homeownership: Support ADU Sales in
Santa Cruz!
December 8, 2024
To: Santa Cruz City Council
Re: Item #30 on Dec 10, 2024 City Council agenda
Thank you for your time and consideration regarding the city’s ADU ordinance. We are glad to see the owner-occupancy requirement removed and other updates included to bring the ordinance into compliance with state law.
We urge you to adopt the ordinance as recommended by the Planning Commission, including the provision to allow ADU sales. Allowing ADUs to be sold creates affordable starter home opportunities and expands homeownership options — an essential step toward improving housing accessibility!
1. Grace Stetson, SANTA CRUZ, 95062
2. Brendan Quirk, Santa Cruz, 95062
3. Martha Dexter, Santa Cruz, 95060
4. Ryan Meckel, SANTA CRUZ. 95060
5. thairie ritchie, capitola, 95010
6. Janine Roeth, Santa Cruz, 95062
7. David Lieby, Santa Cruz, 95060 Please let us have a place to live.
8. Meghan Arnold, Santa Cruz, 95060
9. Cory Matsui, Santa Cruz, 95060
10. Erin Lee, Santa Cruz, 95060
11. Alexander Pedersen, CAPITOLA, 95010. Santa Cruz County needs more affordable housing opportunities and allowing ADU sales is an important as step in this goal.
12. Josh Bootz, Santa Cruz, 95060
13. Jonathan Evans, Santa Cruz, 95062
14. Theo Kell, SANTA CRUZ, 95060
15. Gavin Roth, Santa Cruz, 95060
16. Indiana Reid-Shaw, Santa Cruz, 95060
Santa Cruz YIMBY Mission: We envision a community where our neighbors of all ages, cultures, abilities, and incomes, can make Santa Cruz County their home. In response to the ever-increasing cost of living, we advocate for more affordable housing to meet the needs of our growing population.
Santa Cruz YIMBY is a chapter of YIMBY Action, a 501(c)(4) nonprofit organization.
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18 Julia Wood
From: Carol Polhamus <[email protected]>
Sent: Sunday, December 8, 2024 9:27 PM
To: City Council
Subject: Item #30 - ADU ordinance - Please remove owner occupancy requirement Dear Mayor Keeley, Vice Mayor Golder and City Council Members:
Thank you for reconsidering the owner occupancy requirement and deed restriction for ADUs built legally before 2020. I am aware that subsequent additional clarification from Assemblymember Ting's office and the State Housing and Community Development Office supports the removal of owner occupancy and deed restriction for all ADUs.
It is unfair to penalize those who built legal, permitted ADUs before 2020 by maintaining their deed restriction. Those homeowners who went to the time, trouble and considerable additional expense of building ADUs in the early adoption phase when the city's requirements were much greater should not be treated differently from those currently building ADUs under the new liberalized state rules. I am asking you to be fair and remove the deed restriction and owner occupancy requirements for all.
Thank you for listening and for your service to the city.
Yours,
Carol Polhamus
Previous email included.
On Oct 18, 2024, at 9:20 PM, Polhamus <[email protected]> wrote:
Dear Mayor Keeley, Vice Mayor Golder, and City Council Members:
I spoke at the last city council meeting regarding the owner occupancy requirements for ADUs built pre-2020, and thanked the Planning staff and Council for proposing removing the deed restrictions and owner occupancy requirements from ADUs built before 2020, after a three-year wait for this to be agendized. To my surprise, the owner occupancy requirements were maintained. I think many people were blindsided by this unexpected decision.
Santa Cruz was one of the first cities in the state to adopt ADU guidelines in the early 2000s in the hope of creating much-needed rental housing at no cost to the city. Other cities looked to us for guidance since we were one of the early adopters of this idea, and Santa Cruz even published a guide for people to follow. I built my ADU in 2004 to house my elderly parents at a time when
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19 the requirements were onerous and expensive to comply with. Fire sprinklers, off street/covered parking, setback requirements, size restrictions, design fees, building permits, all added many thousands of dollars to the cost of building an ADU. My 490 sq.ft. ADU cost over $185,000 to build in 2004, and is ADA compliant.
As the city hoped, the ADU idea has really caught on, so important because it adds much needed housing to our communities at no cost to the city because the homeowner pays for it.
Even though this is a second reading of the ordinance, I am asking you to take another look at removing the owner occupancy requirements and deed restrictions for the following reasons:
• Originally owner occupancy may have made sense, as people were just getting comfortable with the idea of ADUs in single family residential neighborhoods and owner oversight increased that comfort level.
However, the requirement has not aged well in the ensuing 20 years because people's life circumstances change, especially true for older people who would have been the ones who were able to build ADUs when they were first allowed. ADUs were originally conceived and permitted as a source of much needed rental housing in the city, but continuing to require owner occupancy has resulted in a decrease in the use of ADUs as rental housing, because people who are not able to comply with the owner occupancy requirement cannot rent out their ADUs, so they remain empty or are repurposed. Some reasons for not being able to comply with the owner occupancy requirement include ill health (needing to move to assisted living or hospital), moving to be able to be closer to family for care (but still keeping their house), moving for work, and traveling.
• Tenants in existing ADU rental units may be displaced if the owner cannot satisfy the owner occupancy requirement.
• Maintaining required owner occupancy limits the ADU owner financially. People who need to rent out both their ADU and their home to help pay for assisted living are limited by this requirement. The value of homes with ADUs with deed restrictions are worth less than neighboring homes without such restrictions. People are reluctant to sell a home with a deed restriction because it is worth less, and people are reluctant to buy a home with a deed restriction because of the limitations it presents.
• Owner occupancy deed restrictions are inherently unfair if unequally applied. Anyone who built an ADU after 2020 has no such restriction, creating a second class of ADU owners. This is not equitable. I heard the concern that removing the owner occupancy might result in an uptick of "out of area investors" buying up all the
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20 ADU's, but I ask you to consider, has that happened with the 350 ADUs that have been built since the owner occupancy restriction was removed? Have these 350 unrestricted ADUs been bought up by investors? I believe this fear is not based in fact.
It is unfair to penalize those people who built legal, permitted ADUs before 2020 by maintaining their deed restrictions for owner occupancy. People who went to the time, trouble and considerable expense of building their ADUs in the early adoption phase should not be treated differently from those currently building ADUs under new state regulations. I am asking you to please be fair and remove the deed restriction.
Thank you for listening, and thank you for your service to the city.
Yours,
Carol Polhamus
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Brittany Inclan
From: Peter Cook <[email protected]>
Sent: Monday, December 9, 2024 9:16 AM
To: City Council
Subject: #30 Please Remove Owner Occupied Restriction
Dear Mayor and Council Members,
Please removed the owner-occupied restriction on existing ADUs. This will bring our city into compliance with state law and will allow existing ADU owners to remove language from their titles of their property that discriminates against tenants.
Sincerely,
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Brittany Inclan
From: Krista Cook <[email protected]>
Sent: Monday, December 9, 2024 9:30 AM
To: City Council
Subject: #30 Please Remove Owner Occupied Restriction
Dear City Council,
Please remove the owner occupancy deed restrictions on all ADU's. Currently, those who built legal ADUs in the early stages of the program are being held to different rules than those that build ADU's now.
If you care about tenants and access to rental housing then removing this restriction is a step in the right direction.
Thank you for addressing this.
Sincerely,
Krista
Krista Cook
Lighthouse Realty and Property Management
phone: 831.247.4455
web: www.lighthouserealty.net
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Brittany Inclan
From: james cook <[email protected]>
Sent: Monday, December 9, 2024 3:31 PM
To: City Council
Subject: ADU
Hello
Please remove the owner occupied requirement on early construction adu's. This onerous requirement is out of line w state law and discriminates against tenants.
Your consideration is appreciated
James Cook
Get Outlook for iOS
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Santa Cruz City Council
December 10, 2024
Accessory Dwelling
Unit FollowUp Amendments
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2 • New state laws in effect Jan. 1: SB 1211 and AB 2533 • HCD feedback on LCP Amending Ordinance 2024-17
• Owner-occupancy and ADU separate sale
Follow-up amendments
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3 • Detached ADUs on sites with existing multi-family buildings:
• Existing law: 2
• Change: up to 8, but no more than the number of units in building • Statewide exemption ADUs:
• Existing law: Can require objective standards as long as they don’t preclude ADU
• Change: no objective standards beyond those in Gov. 66323 • Parking: Can’t require replacement of any removed spaces • City already provides for this
SB 1211
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4 • Further limits reasons for permit denial to those
related to substandard dwellings in Health and Safety
Code Section 17920.3
• Protection expanded to include JADUs
• Affects ADUs and JADUs constructed prior to 2020
AB 2533: legalizing unpermitted ADUs
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5 • Current requirements: Owner occupancy required for
ADUs constructed prior to 2020, not required for those
constructed 2020 or later
• Proposed: remove owner-occupancy requirements for
ADUs constructed prior to 2020
Owner Occupancy
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6 • Allows condominium mapping of sites with ADUs
• More variety in housing market
• Opportunity for lower-cost ownership housing
• Ministerial approval process for four or fewer condos • Tenant displacement assistance
Separate Sale: AB 1033
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7 • 10/8/24 Council Concerns:
• New, relatively untested in CA
• Effect on housing prices
• Seattle case study (2022 data)
• 44% of ADU permits are condominiums
• Median single family home price: $1.6 million
• Median ADU condo price: $757,500
• Median primary home condo price: $1.18 million
Separate Sale: AB 1033
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8 • 12/10: City Council 1st reading
• 12/10: Urgency ordinance
• 1/14: City Council 2nd reading
• 2025: Coastal Commission approval of LCP amending
ordinance
Next Steps
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9 Motion to:
1) Adopt an Emergency Ordinance acknowledging the environmental determination and amending Santa Cruz Municipal Code Chapters 18.15, 24.08, 24.10, 24.12, and 24.16 to update the City’s local accessory dwelling unit regulations ensuring they remain valid and conform to the requirements of new state laws SB 1211 and AB 2533, which take effect January 1, 2025;
2) Acknowledge the environmental determination and introduce for publication an ordinance amending Santa Cruz Municipal Code Chapters 23.04, 23.12, 23.37, 24.08, 24.10, and 24.16 and Adding New Section
24.16.165, related to accessory dwelling units;
3) Acknowledge the environmental determination and introduce for publication an ordinance amending Santa Cruz Municipal Code Chapters 24.08, 24.10, and 24.12 related to accessory dwelling units and comprising parts of the LCP IP;
4) Direct the City Manager to submit the LCP IP amendments to the California Coastal Commission for approval, should they be formally adopted as part of a second reading; and 5) Acknowledge the environmental determination and introduce for publication an ordinance amending Santa Cruz Municipal Code Chapter 18.15 related to accessory dwelling units.
Recommendation
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34.1 35.1