2/20/2025
1 City Council
February 25, 2025
Accessory Dwelling Unit
Ordinance Update
Municipal Code Amendment
MCA-2024-70005
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Item 10.A.
2/20/2025
2 Request
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Background
October 2024: City Adopted overhauled ADU ordinance
January 2025: AB 2533 and SB 1211 become effective
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2/20/2025
3 Assembly Bill 2533
Amends state law to:
(1)Prohibit local agencies from denying a permit to legalize an unpermitted ADU or JADU constructed before January 1, 2020
(2)Prohibit impact fees when legalizing an unpermitted ADU or JADU; (3)Prohibit penalizing an applicant for having an unpermitted unit; (4)Require the provision of certain information to the public; and (5)State that an inspector may inspect an unpermitted unit for compliance with Health and Safety standards and provide recommendations to comply with these standards.
TOAKS.GOV/ADU
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2/20/2025
4 Senate Bill 1211
Amends state law to:
(1) Prohibit replacement of parking when an uncovered parking space is demolished for, or converted to, an ADU;
(2) Add a definition of “livable space”; and
(3) Increase the number of detached ADUs for lots with an existing multifamily dwelling from two to eight, or equal to the number of existing units on the lot, whichever is less.
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EXAMPLE A:
EXAMPLE B:
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2/20/2025
5 Other Changes
(1) Per HCD clarification, local agencies are not required to allow ADUs or JADUs within trailer park developments. Text allowing ADUs in those zones is proposed to be removed;
(2) Removing text that contradicts state law that allows up to 150 square feet to accommodate ingress and egress for converted or reconstructed ADUs; (3) Removing design standard related to windows which was not objective; (4) Removing repetitive text; and
(5) Change name of “State Exemption ADUs” section to “State Mandated ADUs” General Plan Consistency
Goal LU-3: Promote a diversity of housing types for Thousand Oaks residents through all stages of life.
x Policy 3.1 Diversity of housing. Promote a diversity of housing types in locations throughout the City, specifically in neighborhood areas that contain goods and services, parks and open space, and public schools in a walkable setting.
x Policy 3.2 Housing for different life stages and incomes. Encourage new housing types for all residents including young professionals, older adults, and middle-and low-income families.
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2/20/2025
6 Conclusion
Staff Recommendation
Adopt a resolution:
1. Find that the project is Categorically Exempt from the California Environmental Quality Act (CEQA); and
2. Read in title only, further reading be waived, and if no objection, i
ntroduce an ordinance approving Municipal Code Amendment MCA 2024-70005 amending Chapter 4 of Title 9 of the Thousand Oaks M
unicipal Code.
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2/20/2025
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2/25/2025
1 Hillcrest Villas Additional Loan to Many MansionsFebruary 25, 2025Jaime Boscarino, Finance Director •Hillcrest Villas opened May 2013•Many Mansions developed and operates Hillcrest Villas•60-unit mixed supportive affordable housing project•Approximately 30 residents receive supportive services•Very Low and Extremely Low income residentsBackground2 1 2
2/25/2025
2 Hillcrest Drive, LP – Limited PartnershipHillcrest Drive LLC (Many Mansions) – General PartnerU.S. Bank LITC Fund 2012-2 – Limited PartnerMany Mansions – Property ManagerMany Mansions – Service ProviderOrganizational Structure3 AmountFunding/SourceType$1,144,520U.S. BankHard Debt$4,400,000State of California HOME FundsSoft Debt (Residual Receipts)$1,297,920State of California CalHFA-MHSA$7,056,500City RDA$590,000Federal Home Loan Bank of SF-AHP$11,290,504Capital Contribution U.S. Bank LITC Fund 2012-2Equity$296,586City Fee DeferralOther$26,076,030TotalProject Funding Background43 4 2/25/2025
3 •$944,000 outstanding•Many Mansions current on debt service payments•Debt Service Coverage Ratio (DSCR) required of 1.20:1.00•Net income must be at least 120% higher than debt service•Failure to maintain DSCR of 1.05:1.00 for two consecutive years shall result in immediate default•Hillcrest Villas failed to meet DSCR for two consecutive years resulting in U.S. Bank providing notice of default•U.S. Bank gave January 30, 2025, deadlineU.S. Bank Loan5 •Many Mansions reached out to City in Fall 2024•First notification to City of failure to meet DSCR requirement of U.S. Bank loan on Hillcrest Villas and subsequent default•Request for financial assistance to payoff loan•Several discussions over the next few monthsMany Mansions Initial Request65 6 2/25/2025
4 •High fire risk area•Property Insurance skyrocketed from under $20,000 annually to over $275,000 annually•U.S. Bank required forced placed insurance coverage•Restricted rents•Supportive services•U.S. Bank unwilling to waive DSCR requirements•Unlikely to pay residual receipts in the near futureHillcrest Villas Challenges7 •City and Many Mansions met with U.S. Bank in January•Discussed options for moving forward•U.S. Bank agreed in concept to extending payoff deadline to April 30, 2025, as follows: •City loan funding of $500,000 •Montecito Bank loan funding of $400,000 •any Mansions funding of difference (~$44,000)•HCD approval of loan agreementsU.S. Bank Meeting87 8 2/25/2025
5 •Purpose – Pay off existing U.S. Bank debt•Amount - $900,000 •Term – 55 years from closing•Interest Rate – 3% simple interest•Repayment – Loan to be repaid from residual receipts/excess cash flow. If Hillcrest Villas goes through syndication, resulting cash would be used to pay off loan early•Position – To be determined. Will work with HCD, but likely required to be behind existing debt.City Loan Terms9
1. Authorize City Manager to execute $900,000 Loan Agreement and all necessary documents with Many Mansions for Hillcrest Villas.2. Approve additional budget appropriation in the amount of $900,000 from A/C #001-0000-311-1000 (General Fund, Fund Balance) to A/C #001-4630-644-5927 (General Fund, Housing Projects, HS9932).3. Authorize City Manager to sign necessary documents with Many Mansions and other necessary parties, as needed.4. Find that this action is not a project as defined under the California Environmental Quality Act. Recommendations9 10 2/25/2025
6 Questions11
1 2/25/2025
Naming RecognitionFebruary 25, 2025
1.Existing policies1.Seat Dedications2.Philanthropic Naming3.Ceremonial Recognition4.Street Naming2.Recognition outside of polices3.City Council directionAgenda21 2 2
2/25/2025
•Introduced in 1984.•City Council can nominate community members to receive a “Citizen Honorary Seat Dedication”.•Honorees have a brass plate affixed to a seat in the City Council Chambers.•Honorees receive a certificate to commemorate the event. Seat Dedications 3 •Named in honor of those who have contributed to the arts.•Funds raised are directed to the TOCAP Endowment Fund.•Interest earnings support Theatres Enterprise Fund.•Agreements are drafted per MOU with TOArts for a defined timeframe. Philanthropic Naming43 4 3
2/25/2025•Certificates of Recognition•CommendationsCeremonial Recognition5 •Application process through Community Development in coordination with Public Works.•Fee and deposit for materials required.•80 percent of impacted residents/property owners must sign a petition.Street Naming6 5 6
4 2/25/2025
Year of RecognitionRecognitionService to CityName1998Main Library 20-Year City ManagerGrant R. Brimhall2001Teen Center 30-Year City CouncilmemberAlex Fiore2018City Council Chambers 24-Year City CouncilmemberAndrew P. Fox2022Pillar in Kavli Theatre20-Year City CouncilmemberClaudia Bill-de la PeñaNaming Outside of Policy 7 Downtown PlanFuture Opportunities8
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5 2/25/2025
1. Receive report and provide direction to staff.2. Find that this action is not a project as defined by the California Environmental Quality Act. Recommendations9