TO:Andrew P. Powers, City Manager
FROM:Kelvin Parker, Community Development Director
DATE:August 26, 2025
SUBJECT: Senate Bill 9 Unit and Lot Split Regulations Update (MCA-2023- 70010)
RECOMMENDATION:
1. Find that the update of the City’s Senate Bill (SB) 9 regulations is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to California Government Code Sections 65852.21(k) and 66411.7(n) which specifically find that ordinances adopted to implement the provisions of Section 65852.21 (related to the regulation of Two-Unit Housing Developments) or 66411.7 (related to the regulation of Urban Lot Splits) shall not be considered a project under Division 13 (commencing with Section 21000) of the Public Resources Code.
2. Read in title only, further reading be waived, and if no objection, introduce an ordinance approving Municipal Code Amendment MCA-2023-70010 amending the Thousand Oaks Municipal Code (TOMC) relating to the regulation of Urban Lot Splits and Two-Unit Housing Developments (SB 9 Units) by updating Title 9, Chapter 4, Article 37, Sections 9-4.3703 through 9-4.3708 to implement adopted state law.
LEVINE ACT ITEM: No
FINANCIAL IMPACT:
No Additional Funding Requested. Staff time to prepare and process the staff report and Municipal Code Amendment (MCA) is included in the Adopted FY 2025- 26 General Fund Budget.
BACKGROUND:
SB 9, also known as The California Housing Opportunity and More Efficiency Act, was part of the State Senate’s “Building Opportunities for All” housing package
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created to address the severe housing shortage in California. Governor Newsom signed SB 9 on September 16, 2021, and the law went into effect on January 1, 2022. SB 9 requires cities to ministerially approve, subject to objective design standards, the following projects in a single-family zone: 1) a housing development with no more than two primary units; and 2) a one-time subdivision creating two relatively proportionate lots. City Council adopted MCA-2022-70465, implementing SB 9 State law, on October 11, 2022.
In September 2024, Governor Newsom signed SB 450, which amended existing SB 9 government code sections, and became effective on January 1, 2025. The new law has been incorporated into the ordinance recommended for adoption by the Planning Commission. Further details are provided in the Planning Commission staff report in Attachment #1.
Planning Commission
The MCA for the ordinance updating the regulation of Urban Lot Splits and Two- Unit Housing Developments (SB 9 Units) was presented to the Planning Commission on May 19, 2025, for review and recommendation. The staff report for the Planning Commission, as well as the Planning Commission resolution and redlined draft ordinance (Attachment #1), provide a detailed discussion of the updates and changes to the City’s Accessory Dwelling Unit (ADU) ordinance.
No public comments on the amendment were received. After deliberating on the matter, the Planning Commission voted to recommend approval, as recommended by staff. The motion passed with a 5-0 vote.
DISCUSSION/ANALYSIS:
Summary of Proposed Changes
The proposed ordinance (Attachment #2) amends Title 9, Chapter 4, Article 37 of the Thousand Oaks Municipal Code (TOMC) to ensure that the process requirements and development standards are consistent with current State Law, while retaining as much local control as possible.
The proposed changes to the existing SB 9 regulations were made for the following reasons:
1. To implement the amendments to State law enacted by SB 450, which:
a) Removes a restriction on demolition previously required by State law;
b) Requires only objective design standards that apply uniformly to underlying residential zones; including those found in Article 22, Objective Design Standards;
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c) Requires that the City approve or deny a complete application for an Urban Lot Split or Two-Unit Housing Development project within 60 days; and
d) Removes the option to deny an application for an Urban Lot Split or Two-Unit Housing Development due to specific adverse impacts to the “physical environment.”
2. To clarify that a one-unit project is allowed on a single un-split vacant lot under a Two-Unit Housing Development application;
3. To improve readability and clarify requirements;
4. To adjust numbering or internal references;
5. To correct typographical, grammatical, or spelling errors;
6. To improve consistency between sections; and
7. To clarify the process required for review of SB 9-related applications.
Generally speaking, the proposed revisions necessary to comply with SB 450 consist of simple text changes. However, the new provision prohibiting the City from imposing objective design standards unless they "apply uniformly to development within the underlying zone" requires the removal of standards related to the architectural design of garage conversions and the requirement for privacy windows. New standards related to entry area requirements and garage size were added, as they apply uniformly across the eligible single-family residential zones.
Additionally, flag lots are no longer prohibited under the amended ordinance.
General Plan Consistency
The City’s General Plan includes goals and policies to guide future development, as follows:
Housing Element Goal 1: Provide a wide range of housing opportunities for persons of all income levels.
Housing Element Goal 2: Provide housing opportunities for persons with special needs.
Housing Element Goal 5: Affirmatively further fair housing. Land Use Element Goal 3: Promote diversity of housing types for Thousand Oaks residents through all stages of life.
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Land Use Element Goal 4: Support the creation of safe, affordable, and sanitary housing for all ages, income levels, and abilities.
The adoption and implementation of the proposed MCA is consistent with the City’s General Plan by allowing for the development of Two-Unit Housing Development and Urban Lot Split projects within single-family residential zones while minimizing negative impacts on the existing residential neighborhoods and maintaining consistency with State law.
Community Outreach
Notification for this hearing and the Planning Commission hearing was completed in compliance with the TOMC and the Government Code.
Environmental Review
The project has been determined to be exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to California Government Code Sections 65852.21(k) and 66411.7(n) which specifically find that ordinances adopted to implement the provisions of Section 65852.21 (related to the regulation of Two-Unit Housing Developments) or 66411.7 (related to the regulation of Urban Lot Splits) shall not be considered a project under Division 13 (commencing with Section 21000) of the Public Resources Code.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goal:
A. Create a more equitable, accessible, safe, welcoming, and inclusive government and community regardless of race, color, ethnicity, religion, sex, physical or mental ability, sexual orientation, gender identity and expression, age, language, education, and/or socio-economic status.
PREPARED BY: Justine Kendall, Associate Planner
Attachments:
Attachment #1 – Planning Commission Staff Report, Resolution, and Municipal Code Amendment with Current and Proposed Text Amendments in Redline
Attachment #2 – Municipal Code Amendment Ordinance
cdd:660-21\jk\H:\COMMON\City Council\CC Agenda Items\2025\08262025\SB9 Update MCA-2023-70010\Staff Report.docx