City Council
SB 1123 Emergency Interim Zoning Ordinance
June 10, 2025
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025
Purpose
• Provide a high-level overview of how the City is required to implement SB 1123
• Implement May 13, 2025 Council direction to allow Accessory Dwelling Units (ADUs) in conjunction with projects utilizing SB 1123 • Emergency Interim Zoning Ordinance
• Immediately effective in time for SB 1123’s effective date of July 1, 2025 • Public inquiries and stated interest in the use of SB 1123 when it becomes available
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025
SB 1123 - Background
• Effective July 1, 2025
• Builds upon prior State law (SB 684) which required local agencies to ministerially approve projects on parcels zoned for multi-unit residential developments:
1. Subdivision resulting in 10 or fewer parcels for certain housing development projects; and
2. Housing development project consisting of 10 or fewer units on a parcel resulting from a subdivision under SB 684.
• Expands the Government Code to apply to parcels zoned for single-unit residential, with some additional limitations and provisions
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025
SB 1123 - Overview
The following overview is based on staff’s preliminary understanding of SB 1123; however, anticipated guidance from HCD and any applicable judicial guidance that may be issued may change the below interpretation and, consequently, the City’s implementation of SB 1123. • Expands Government Code Sections 65852.28 and 66499.41 to now apply to single-unit residential zoning districts (R1 & OP1)
• Parcels must be:
• “Vacant”, which is defined as “having no permanent structure, unless the permanent structure is abandoned and uninhabitable” at time of application submittal • No larger than 1.5 acres; and
• Surrounded by qualifies urban uses (which is all of Santa Monica) • Includes displacement/tenant protections
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025
SB 1123 - Overview
• Locational restrictions include, but are not limited to:
• Parcels created utilizing “SB 9/450”
• Parcels within high or very high hazard severity zones • Parcels within a delineated earthquake fault zone, unless the development complies with applicable seismic protection building code standards
• Newly created parcels must be at least 1,200 SF in size. • Most applicable subdivision types permitted:
• Fee simple ownership lots
• Common interest developments (e.g., condominiums, planned developments, stock cooperatives, community apartment projects).
• Allows a local inclusionary ordinance to apply (SMMC Chapter 9.64 – Affordable Housing Production Program) Item 12-C
June 10, 2025
Item 12-C
June 10, 2025
SB 1123 - Overview
• Allows for the ministerial subdivision of a parcel to up to 10 newly created parcels and may surpass local density limits (interpretation based on HCD Technical Assistance issued on May 5, 2025 to the City of Morro Bay) • Defaults to the underlying zoning district to determine what can be build on each newly created parcel • Example: Within the R1 zoning district, one single-unit dwelling can be built on each newly created parcel • May impose objective standards on development, but does not permit the following:
• Height limits less than the underlying zoning district • Setbacks between units
• Side and rear setback from the original lot line greater than 4’ • Parking within ½ mile walking distance of high-quality transit corridor • Development sizes that would not provide for the following:
• 1.0 FAR for project consisting of 3-7 units
• 1.25 FAR for projects consisting 8-10 units
• Average total area of floorspace exceeding 1,750 SF
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025
Policy Question
Background:
Council’s direction to allow ADUs was related to the applicability of SB 1123 within the City’s single-unit dwelling zoning districts. However, SB 1123 was only an expansion of an already existing Government Code that also applies to multi-unit residential zoning districts.
Policy Question:
Should ADUs be permitted in all projects that utilize Government Code 66499.41, which includes parcels within both single-unit and multi-unit zoning districts? Options:
Yes, allow ADUs in all zoning districts utilize Government Code 66499.41 No, only allow ADUs when Government Code 66499.41 is utilized on parcels zoned for single-unit residential.
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025
Recommended Council Action
1. Adopt a finding of Statutory Exemption from the California Environmental Quality Act (CEQA) pursuant to Government Code Section 65913.4.5(b).
2. Introduce and Adopt an Emergency Interim Zoning Ordinance Permitting the Establishment of Accessory Dwelling Units (ADUs) as Part of Projects Utilizing Senate Bill (SB) 1123 on Vacant Parcels Zoned for Single-Unit Residential.
Item 12-C
June 10, 2025
Item 12-C
June 10, 2025