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HomeMy WebLinkAbout19 - Accessory Dwelling Units�EWPR CITY OF T - z NEWPORT BEACH <,FoR�P City Council Staff Report July 25, 2017 Agenda Item No. 19 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Kimberly Brandt, Community Development Director - 949-644-3232, kbrandt@newportbeachca.gov PREPARED BY: Jaime Murillo, Senior Planner, jmurillo@newportbeachca.gov PHONE: 949-644-3209 TITLE: Amendments to the City's Regulations Regarding Accessory Dwelling Units (PA2017-069) ABSTRACT: Amendments to the Zoning Code and Local Coastal Program revising the City's regulations pertaining to Accessory Dwelling Units (ADU) to conform to recent State legislation that went into effect on January 1, 2017. Specifically, the amendments would establish regulations permitting the development of ADUs in single-family residential zoning districts. RECOMMENDATION: a) Conduct a public hearing; b) Find this project statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15282(h) of the CEQA Guidelines, which states that the adoption of an ordinance regarding second units to implement the provisions of Sections 65852.1 and 65852.2 of the Government Code are exempt from the requirements of CEQA; c) Introduce Ordinance No. 2017-11, An Ordinance of the City Council of the City of Newport Beach, California, Adopting Zoning Code Amendment No. CA2017-003 to Implement New State Law Requirements Relating to Accessory Dwelling Units (PA2017-069), and pass to second reading on August 8, 2017; and d) Adopt Resolution No. 2017-51, A Resolution of the City of Newport Beach, California, Authorizing the Submittal of Local Coastal Program Amendment No. LC2017-003 to the California Coastal Commission Implementing New State Law Requirements Relating to Accessory Dwelling Units (PA2017-069). FUNDING REQUIREMENTS: There is no fiscal impact related to this item. 19-1 Amendments to the City's Regulations Regarding Accessory Dwelling Units (PA2017-069) July 25, 2017 Page 2 INTRODUCTION: In 2016, the State Legislature amended California Government Code Section 65852.2 (State Law) related to ADUs, which took effect on January 1, 2017 (Attachment C). The new regulations are intended to reduce barriers to the development of ADUs, which have been found to be an affordable -by -design type of in -fill housing that can meet the needs of couples, small families, young people, students, and seniors by offering new below-market rentals in existing neighborhoods. In addition, homeowners who create ADUs may benefit from added income and an increased sense of security. Fig. 1 Attached ADU Over Garage Example Fig. 2 Detached ADU Example The City regulates ADUs through Section 20.48.200 of the Newport Beach Municipal Code (NBMC) (Attachment D), which prohibits second units, unless they are age - restricted to persons 55 years or older (Senior Accessory Dwelling Units). These restrictions, as well as other City regulations, do not comply with the new State law and are now considered null and void. Therefore, the City must use the State's more lenient ADU standards until such time the City modifies its regulations appropriately (see Interim Standards section). The State standards require ministerial approval (no discretion or public hearing) of an ADU in single-family and multi -family zones where only a single-family unit is present, provided other minimal standards are met. Upon City Council's adoption of the proposed ordinance regulating ADUs, the City will have the ability to regulate additional aspects of ADUs, such as location, lot size, unit size, parking, and aesthetics, depending on circumstances. 19-2 Amendments to the City's Regulations Regarding Accessory Dwelling Units (PA2017-069) July 25, 2017 Page 3 Background The State law addressing ADUs was first enacted in 1982, and it has been amended several times since then to encourage the creation of second units while maintaining local flexibility for unique circumstances and conditions. The law imposed standards intended to create greater flexibility to encourage construction while also requiring a ministerial process for the approval of such units. However, the law previously included an exemption allowing local agencies to prohibit ADUs upon finding that specific adverse impacts on the public health, safety, and welfare would result. City Council Ordinance No. 88-39 (Attachment E) adopted such findings and prohibited the creation of second units, which has remained in effect until the recent legislation took effect on January 1, 2017. Planning Commission Action and Community Outreach The Planning Commission considered the proposed amendments on May 4, 2017; however, staff was unable to display the presentation related to the proposed amendments, which made explaining the complex program challenging. The Planning Commission ultimately decided to continue the agenda item to June 8, 2017, to allow staff to return with a presentation and to allow for additional public outreach (Attachment F — Hearing Minutes). At the conclusion of the June 8, 2017, hearing, the Planning Commission voted 4-1 to recommend approval of the proposed amendments to the City Council (Attachment G — Hearing Minutes). DISCUSSION: Interim Standards Comparison to Proposed City Standards Until the City adopts an ordinance compliant with State Law, the City must ministerially approve ADUs in all single-family and multi -family zones where only a single-family unit is present. The underlying development standards of the district would continue to apply, with the exception of certain specific exemptions and minimal standards regulating the ADU itself. The standards that apply depend on whether the proposed ADU will be newly constructed or converted from an existing living space. The standards applicable to ADUs developed through additions or new construction are summarized in Table 1. The standards applicable to ADUs converted from an existing living space are summarized in Table 2. In addition, both tables include a comparison of the proposed City modifications to each standard. These standards are explained in detail in Attachment H. 19-3 Amendments to the City's Regulations Regarding Accessory Dwelling Units (PA2017-069) July 25, 2017 Page 4 Table 1- Comparison of State Standards and Proposed City Standards ADUs Requiring Additions or New Construction Standard State Standards Proposed City Standard Location Permitted on lots zoned for both single-family Single-family residential or multi -family residential. ADU must be zoning districts and similar located on same lot. Planned Community or Specific Plan areas. ADUs would be prohibited in two- family and multi -family zoning districts. Minimum Lot No standard. 5,000 square feet or Size greater. Unit Size Limited as follows: 750 square feet maximum, or 50 percent of the existing o Attached ADU- 50 percent of existing floor area (excluding living area, with a maximum of 1200 garage) of the principal square feet. unit, whichever is less. o Detached ADU- 1200 square feet. Aesthetics No standard. Height and Design standards added to minimize appearance of two units on the lot. Passageways Not required. This is an exemption from Per State standard. Building Code requiring a pathway, clear to the sky, from street to entrance of ADU. Setbacks Setbacks are not required for an existing Per Zoning Code, except garage that is converted to an ADU, and a as modified by State setback of no more than 5 feet from a side or standard. rear lot line is required for an ADU that is constructed above a garage. Parking A maximum of one space required per unit or Per State standard, except bedroom, whichever is greater. Spaces may parking in rear alley be provided as uncovered parking, tandem setback prohibited and parking on driveway or mechanical lifts. No additional clarifications parking required if within half -mile of public added. transit stop or one block of a car -share vehicle program. Fire ADUs are not required to provide fire Per State standard. Sprinklers sprinklers if they were not required for the principal residence. Utilities Connection fees or capacity charges must be Per State standard. proportionate to the impact of the ADU based on either its size or number of plumbing fixtures. 19-4 Amendments to the City's Regulations Regarding Accessory Dwelling Units (PA2017-069) July 25, 2017 Page 5 Table 2- Comparison of State Standards and Proposed City Standards ADUs Contained Entirely within Existing Structures Standard State Standards Proposed City Standards Location Within an existing single-family residence or Same; cannot be modified. accessory structure on a single-family residential zoned lot. Unit Size No limitation. Same; cannot be modified. Parking No additional parking required. Same; cannot be modified. Utilities No new or separate utility connections or Same; cannot be modified. connections fees. General Plan Consiste State law indicates that ADUs shall be deemed an accessory use and shall not be considered to exceed the allowable density for the lot upon which it is located, and shall be deemed a residential use that is consistent with the existing general plan and zoning district for the lot. Therefore, no amendments to the General Plan are required. Local Coastal Plan — Coastal Commission Collaboration Similar to the Zoning Code, the Implementation Plan of the Local Coastal Program (LCP), currently regulates ADUs inconsistent with State law. Therefore, corresponding amendments to the LCP are required, including the addition of a new policy, which reads as follows: 2.7-5. Administer the provisions of Government Code Section 65852.2 relative to the development of accessory dwelling units to increase the supply of lower-cost housing in the coastal zone and meet the needs of existing and future residents, while respecting the architectural character of existing neighborhoods and in a manner consistent with the LCP and any applicable policies from Chapter 3 of the Coastal Act. Staff notes that the Coastal Commission will need to review and approve the proposed amendments to the LCP. Staff sent a Notice of Availability for the amendment to the Coastal Commission staff on April 27, 2017. In response to their feedback, City staff revised the amendment as currently proposed in Attachment B and sent the revisions to the Coastal Commission staff on May 2, 2017, requesting their input. The City has not received any comments as of the publication of this report. 19-5 Amendments to the City's Regulations Regarding Accessory Dwelling Units (PA2017-069) July 25, 2017 Page 6 In the interim, any eligible projects located in the Coastal Zone that qualify for a Coastal Development Permit (CDP) exemption will be processed consistent with the Zoning Code. Projects that do not qualify for an exemption cannot be processed until the LCP Amendment is approved and adopted. Alternatives The City Council may recommend revisions to the draft ordinance or resolution, such as changing where ADUs are allowed, minimum lot size, maximum unit sizes, design standards, etc., provided the revisions are consistent with State law limitations and are not arbitrary, excessive, and burdensome, and do not unreasonably restrict the creation of ADUs. ENVIRONMENTAL REVIEW: The project is exempt from environmental review under the California Environmental Quality Act ("CEQA") pursuant to Public Resources Code Section 21080.17 and CEQA Guidelines Section 15282(h), which states that the adoption of an ordinance regarding second units in a single-family or multifamily zone by a city or county to implement the provisions of Sections 65852.1 and 65852.2 of the Government Code" relating to "granny" housing and "second unit ordinances" are exempt from the requirements of CEQA. Similarly, the ministerial approval of ADUs would not be a "project" for CEQA purposes, and environmental review would not be required prior to approving individual applications. NOTICING: Notice of this amendment was published in the Daily Pilot as an eighth page advertisement, consistent with the provisions of the Municipal Code. The item also appeared on the agenda for this meeting, which was posted at City Hall and on the City website. Additionally, notice was sent to all persons and agencies on the Notice of the Availability mailing list. ATTACHMENTS: Attachment A — Draft Ordinance (Zoning Code Amendment) Attachment B — Draft Resolution (Local Coastal Program Amendment) Attachment C — Government Code Section 65852.2 (ADU Law) Attachment D — Former Senior ADU Regulations (NBMC Sec. 20.48.200) Attachment E — City Council Ordinance No. 88-39 Attachment F — May 4, 2017, Planning Commission Minutes Attachment G — June 8, 2017, Planning Commission Minutes Attachment H — Description of Proposed Zoning Code Modifications 19-6 Attachment A Draft Ordinance (Zoning Code Amendment) 19-7 ORDINANCE NO. 2017-11 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, ADOPTING ZONING CODE AMENDMENT NO. CA2017-003 TO IMPLEMENT NEW STATE LAW REQUIREMENTS RELATING TO ACCESSORY DWELLING UNITS (PA2017-069) WHEREAS, State law (Senate Bill 1069 and Assembly Bill 2299, Statutes of 2016) requires jurisdictions to amend their local zoning ordinances to conform to California Government Code Section 65852.2,- WHEREAS, 5852.2; WHEREAS, Senate Bill 1069 and Assembly Bill 2299 are intended to address the State housing crisis by easing regulatory barriers for homeowners who choose to construct accessory dwelling units; WHEREAS, accessory dwelling units provide housing for family members, students, the elderly, in-home health care providers, and others, at or below market prices within existing neighborhoods; WHEREAS, homeowners who construct accessory dwelling units may benefit from added income and an increased sense of security; WHEREAS, allowing accessory dwelling units in single-family residential zones provides additional rental housing stock; WHEREAS, accessory dwelling units offer lower cost housing to meet the needs of existing and future residents within existing neighborhoods, while respecting architectural character, WHEREAS, adopting an ordinance consistent with California Government Code Section 65852.2 ensures that the character of the City of Newport Beach (City) is preserved to the maximum extent possible and that the City's regulation regarding accessory dwelling units continues to promote the health, safety, and welfare of the community; WHEREAS, the City has designated areas where accessory dwelling units may be located, when permitted by California Government Code Section 65852.2, based in part upon adequacy of water and sewer services and the impact of accessory dwelling units on traffic flow and public safety; .; Ordinance No. 2017 - Page 2 of 10 WHEREAS, a public hearing was held on May 4, 2017, in the Council Chambers located at 100 Civic Center Drive, Newport Beach. A notice of time, place and purpose of the public hearing was given in accordance with the Newport Beach Municipal Code (NBMC). Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this public hearing. The Planning Commission continued the hearing to June 8, 2017; WHEREAS, a public hearing was held on June 8, 2017, in the Council Chambers located at 100 Civic Center Drive, Newport Beach. A notice of time, place and purpose of the public hearing was given in accordance with the Newport Beach Municipal Code (NBMC). Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this public hearing; WHEREAS, on June 8, 2017, the Planning Commission adopted Resolution No. 2058 by a majority vote of 4-1, recommending approval of Zoning Code Amendment No. CA2017-003 to the City Council, and WHEREAS, a public hearing was held on July 25, 2017, in the Council Chambers located at 100 Civic Center Drive, Newport Beach. A notice of time, place and purpose of the public hearing was given in accordance with the Newport Beach Municipal Code (NBMC). Evidence, both written and oral, was presented to, and considered by, the City Council at this public hearing. NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: NBMC Subsections 20.18.010(A) are amended to read as follows: A. R -A (Residential -Agricultural) Zoning District. The R -A zoning district is intended to provide for areas appropriate for detached single-family residential dwelling units, accessory dwelling units, and light farming uses, each located on a single legal lot; B. R-1 (Single -Unit Residential) Zoning District. The R-1 zoning district is intended to provide for areas appropriate for a range of detached single-family residential dwelling units and accessory dwelling units; each located on a single legal lot, and does not include condominiums or cooperative housing. 19-9 Ordinance No. 2017 - Page 3 of 10 Section 2: Table 2-1 in NBMC Section 20.18.020(C) (Allowed Uses and Permit Requirements) is amended, in part to the Accessory Dwelling Units" row as follows: Accessory Dwelling Units P P Section 20.48.200 Section 3: Table 2-2 in NBMC Section 20.18.030 (Development Standards for Single -Unit Residential Zoning Districts) is amended, in part, as to the "Density/Intensity" row as follows: Density/Intensity Each legal lot shall be allowed one single -unit detached dwelling. In addition, one accessory dwelling unit may be allowed pursuant to Section 20.48.200. Section 4: NBMC Subsection 20.30.110(D) (Allowed Encroachments into Setback Areas) is amended to add subpart 16 to read as follows: 16. Accessory Dwelling Units. Accessory dwelling units may be established within required setback areas in compliance with the requirements of Section 20.48.200 (Accessory Dwelling Units). Section 5: Table 3-10 in NBMC Section 20.40.040 (Off -Street Parking Requirements) is amended, in part, as to the "Accessory Dwelling Units" row as follows.- Accessory ollows: Accessory Dwelling Units As required per Section 20.48.200 Section 6: NBMC Section 20.48.200 (Senior Accessory Dwelling Units) is amended in its entirety to read as follows: 20.48.200 Accessory Dwelling Units A. Purpose. The purpose of this Section is to establish the procedures for the creation of accessory dwelling units as defined in Part 7 (Definitions) and in the California Government Code Section 65852.2, or any successor statute, in single -unit residential zoning districts or areas designated for single-family residential use as part of a Planned Community Development Plan or Specific Plan, and to provide development standards to ensure the orderly development of these units in appropriate areas of the City. 19-10 Ordinance No. 2017 - Page 4 of 10 B. Review Authority. Accessory dwelling units shall be approved in all single -unit residential zoning districts subject to the approval of the Director upon finding that the following conditions have been met: 1. The dwelling conforms to the development standards and requirements for accessory dwelling units established in the subsections below. 2. Public and utility services including emergency access are adequate to serve both dwellings. C. Development standards. Except as modified by this subsection, an accessory dwelling unit shall conform to all requirements of the underlying residential zoning district, any applicable overlay district, and all other applicable provisions of this Code, including but not limited to height, setback, site coverage, floor area limit, and residential development standards and design criteria; unless the unit is contained within a legal, nonconforming structure and does not expand the nonconformity. Minimum lot area. A minimum lot area of five thousand (5,000) square feet, excluding submerged land area, shall be required in order to establish an accessory dwelling unit. 2. Setback requirements. Accessory dwelling units shall comply with the setback requirements applicable to the zoning district in which they are located, except in cases where the minimum required garage setbacks differ from principal building setbacks, in which case the following applies: a. No additional setback shall be required for an existing garage that is converted to an accessory dwelling unit, provided that the side and rear setbacks comply with required Building Codes. b. A setback of no more than five feet from the side and rear lot lines shall be required for an accessory dwelling unit constructed above the garage. 3. Building height. Detached accessory dwelling units shall not exceed one story and a height of 14 feet, unless the accessory dwelling unit is constructed above a garage, in which case the structure shall comply with the height limits of the underlying zoning district. 4. Unit size. The maximum size of an accessory dwelling unit shall not exceed a 750 square feet of floor area, or 50 percent of the existing floor area (excluding garage) of the principal unit, whichever is less. 19-11 Ordinance No. 2017 - Page 5 of 10 5. Design. An accessory dwelling unit shall be similar to the principal dwelling with respect to architectural style, roof pitch, color, and materials. 6. Conversion of space within existing structure. Notwithstanding the provisions of subsections C(1), C(2), C(3), C(4) and C(5) above, an accessory dwelling unit shall be permitted if the unit is contained within the existing space of a single -unit dwelling or existing accessory structure, has independent exterior access from the existing dwelling, and the side and rear setbacks comply with required Building Codes, and if the accessory dwelling unit conforms with the following: a. For the purposes of this section, the portion of the single -unit dwelling or accessory structure must have been legally permitted and existing for a minimum of three years prior to the issuance of a permit to convert the space into an accessory dwelling unit. b. No new or separate utility connection may be required between the accessory dwelling unit and the utility service, such as water, sewer, and power. 7. Fire sprinklers. Accessory dwelling units shall not be required to provide fire sprinklers if they are not required for the principal residence. 8. Passageway. No passageway shall be required in conjunction with the construction of an accessory dwelling unit. For the purposes of this section, "passageway" means a pathway that is unobstructed clear to the sky and extends from the street to one entrance of the accessory dwelling unit. 9. Parking. Parking shall comply with requirements of Chapter 20.40 (Off -Street Parking), except as modified below: a. One parking space required for one -bedroom or efficiency unit; two parking spaces required for unit with two or more bedrooms. b. Such parking may be provided as tandem parking and/or may be located on an existing driveway, however, in no case shall parking be allowed in a rear setback abutting an alley. c. No parking shall be required for: 19-12 Ordinance No. 2017 - Page 6 of 10 i. Accessory dwelling unit converted as part of the existing principal residence or existing accessory structure as described in subsection (C)5. ii. Accessory dwelling units located within one-half mile of a public transit. For the purposes of this section "public transit" shall include a bus stop with fixed route bus service that provides transit service at 15 -minute intervals or better during peak commute periods. iii. Accessory dwelling unit is located within an architecturally and historically significant district. iv. When on -street parking permits are required but not offered to the occupant of the accessory dwelling unit. v. When there is a car -share vehicle located within one block of the accessory dwelling unit. For the purposes of this section, "car - share vehicle" shall mean part of an established program intended to stay in a fixed location for at least 10 years and available to the public. d. If an accessory dwelling unit replaces an existing garage, replacement spaces must be provided. When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an accessory dwelling unit, any required replacement spaces may be located in any configuration on the same lot as the accessory dwelling unit, including but not limited to, as covered spaces, uncovered spaces, or tandem spaces, or by the use of mechanical automobile parking lifts. D. Additional requirements for all accessory dwelling units. 1. Sale of units. The accessory dwelling unit shall not be sold separately from the principal dwelling. 2. Short-term lodging. The accessory dwelling unit shall not be rented for periods of less than 30 days. 3. Number of units allowed. Only one accessory dwelling unit may be located on the lot. 4. Existing development. A single -unit dwelling must exist on the lot or shall be constructed on the lot in conjunction with the construction of the accessory dwelling unit. 19-13 Ordinance No. 2017 - Page 7 of 10 5. Occupancy. The principal dwelling unit or the accessory dwelling unit shall be continuously occupied by at least one person having an ownership interest in the lot. E. Deed restriction and recordation required. Prior to the issuance of a Building and/or Grading Permit for an accessory dwelling unit, the property owner shall record a deed restriction with the County Recorder's Office, the form and content of which is satisfactory to the City Attorney. The deed restriction document shall notify future owners of the owner occupancy requirements and restrictions on short-term rentals. This deed restriction shall remain in effect so long as the accessory dwelling unit exists on the property. Section 7: The definition of "Accessory Dwelling Unit (Land Use)" in NBMC Section 20.70.020 (Definition of Specialized Terms and Phrases) is amended to read as follows: Accessory Dwelling Unit (Land Use). See "Dwelling Unit, Accessory." Section 8: The definition of "Dwelling Unit, Senior Accessory (Land Use) in NBMC Section 20.70.020 (Definition of Specialized Terms and Phrases) is amended to read as follows.. Dwelling Unit, Accessory (Land Use). A dwelling unit accessory to and attached to, detached from, or contained within, the principal dwelling unit on a site zoned for a single-family dwelling. An accessory dwelling unit also includes the following: 1. An efficiency unit, as defined in Section 17958.1 of the Health and Safety Code, or any successor statute. 2. A manufactured home, as defined in Section 18007 of the Health and Safety Code, or any successor statute. Section 9: Subpart 8 in NBMC Subsection 20.90.060(D) (Accessory Uses Permitted) is amended to read as follows: 8. Accessory dwelling unit in conformance with Section 20.48.200. Section 10: Subpart 8 in NBMC Subsection 20.90.070(D) (Accessory Uses Permitted) is amended to read as follows: 8. Accessory dwelling unit in conformance with Section 20.48.200. 19-14 Ordinance No. 2017 - Page 8 of 10 Section 11: Subpart 8 in NBMC Subsection 20.90.080(D) (Accessory Uses Permitted) is amended to read as follows: 8. Accessory dwelling unit in conformance with Section 20.48.200. Section 12: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion of this ordinance. Section 13: If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 14: This action is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.17 and CEQA Guidelines Section 15282(h), which states the adoption of an ordinance regarding second units to implement the provisions of Sections 65852.1 and 65852.2 of the Government Code are exempt from the requirements of CEQA. Similarly, the ministerial approval of accessory dwelling units is not a "project" for CEQA purposes, and environmental review is not required prior to approving individual applications. Section 15: An amendment to the Local Coastal Program (LCP) is also underway to comply with State law. This Zoning Code Amendment shall not become effective for projects located in the coastal zone for which the LCP is applicable until approval of the subject LCP amendment by the California Coastal Commission and adoption, including any modifications suggested by the California Coastal Commission, by resolution and/or ordinance of the City Council of the City of Newport Beach. Section 16: Except as expressly modified in this ordinance, all other Sections, Subsections, terms, clauses and phrases set forth in the Newport Beach Municipal Code shall remain unchanged and shall be in full force and effect. Section 17: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be published pursuant to City Charter Section 414. 19-15 Ordinance No. 2017 - Page 9 of 10 This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 25th day of July, 2017, and adopted on the 8th day of August, 2017, by the following vote, to -wit: AYES, COUNCILMEMBERS NOES, COUNCILMEMBERS ABSENT COUNCILMEMBERS KEVIN MULDOON, MAYOR ATTEST: LEILANI I. BROWN, CITY CLERK APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE AARON C. RP, CITY ATTORNEY 19-16 Attachment B Draft Resolution (Local Coastal Program Amendment) 19-17 RESOLUTION NO. 2017-51 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AUTHORIZING THE SUBMITTAL OF LOCAL COASTAL PROGRAM AMENDMENT NO. LC2017-003 TO THE CALIFORNIA COASTAL COMMISSION IMPLEMENTING NEW STATE LAW REQUIREMENTS RELATING TO ACCESSORY DWELLING UNITS (PA2017-069) WHEREAS, State law (Senate Bill 1069 and Assembly Bill 2299, Statutes of 2016) requires jurisdictions to amend their local zoning ordinances to conform to California Government Code Section 65852.2, WHEREAS, Senate Bill 1069 and Assembly Bill 2299 are intended to address the State housing crisis by easing regulatory barriers for homeowners who choose to construct accessory dwelling units; WHEREAS, accessory dwelling units provide housing for family members, students, the elderly, in-home health care providers, and others, at below market prices within existing neighborhoods; WHEREAS, homeowners who construct accessory dwelling units may benefit from added income and an increased sense of security,- WHEREAS, ecurity; WHEREAS, allowing accessory dwelling units in single-family residential zones provides additional rental housing stock; WHEREAS, accessory dwelling units offer lower cost housing to meet the needs of existing and future residents within existing neighborhoods, while respecting architectural character; WHEREAS, adopting an ordinance consistent with California Government Code Section 65852.2 ensures that the character of the City of Newport Beach (City) is preserved to the maximum extent possible and that the City's regulation regarding accessory dwelling units continues to promote the health, safety, and welfare of the community; WHEREAS, the City has designated areas where accessory dwelling units may be located, when permitted by California Government Code Section 65852.2, based in part upon adequacy of water and sewer services and the impact of accessory dwelling units on traffic flow and public safety; 19-18 Resolution No. 2017 - Page 2 of 9 WHEREAS, a public hearing was held on May 4, 2017, in the Council Chambers located at 100 Civic Center Drive, Newport Beach. A notice of time, place and purpose of the public hearing was given in accordance with the Newport Beach Municipal Code (NBMC) and Section 13515 of the California Code of Regulations. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this public hearing. The Planning Commission continued the hearing to June 8, 2017; WHEREAS, a public hearing was held on June 8, 2017, in the Council Chambers located at 100 Civic Center Drive, Newport Beach. A notice of time, place and purpose of the public hearing was given in accordance with the Newport Beach Municipal Code (NBMC) and Section 13515 of the California Code of Regulations. Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this public hearing; WHEREAS, on June 8, 2017, the Planning Commission adopted Resolution No. 2057 by a majority vote of 4-1, recommending approval of Local Coastal Program Amendment No. LC2017-003 to the City Council; WHEREAS, a public hearing was held on July 25, 2017, in the Council Chambers located at 100 Civic Center Drive, Newport Beach. A notice of time, place and purpose of the public hearing was given in accordance with the Newport Beach Municipal Code (NBMC) and Section 13515 of the California Code of Regulations. Evidence, both written and oral, was presented to, and considered by, the City Council at this public hearing; and WHEREAS, pursuant to Section 13515 of Title 14, Division 5.5, of the California Code of Regulations, review drafts of LCP Amendment No. LC2017-003 were made available and a notice of the availability was distributed a minimum of six weeks prior the City Council public hearing. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council does hereby authorize City staff to submit LCP Amendment No. LC2017-003 to the California Coastal Commission for review and approval, as attached in Exhibit A, and incorporated herein by reference. Section 2: LCP Amendment No. LC2017-003 shall not become effective until approval by the California Coastal Commission and adoption, including any modifications suggested by the California Coastal Commission, by resolution(s) and/or ordinance(s) of the City Council of the City of Newport Beach. Section 3: The LCP including the proposed amendment will be carried out fully in 19-19 Resolution No. 2017 - Page 3 of 9 conformity with the California Coastal Act. Section 4: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 5: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 6: This action is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.17 and CEQA Guidelines Section 15282(h), which states the adoption of an ordinance regarding second units to implement the provisions of Sections 65852.1 and 65852.2 of the Government Code are exempt from the requirements of CEQA. Similarly, the ministerial approval of accessory dwelling units is not a "project" for CEQA purposes, and environmental review is not required prior to approving individual applications. Section 7: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 25th day of July, 2017. KEVIN MULDOON Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY A NEY'S OFFICE Aaron C. Harp City Attorney 19-20 Resolution No. 2017 - Page 4 of 9 EXHIBIT "A" Local Coastal Program Amendment No. LC2017-003 Section 1: Amending Chapter 2.0 (Land Use and Development) of the Coastal Land Use Plan to add Policy 2.7-5 as follows, with all other provisions of the Coastal Land Use Plan remaining unchanged: 2.7-5. Administer the provisions of Government Code Section 65852.2 relative to the development of accessory dwelling units to increase the supply of lower-cost housing in the coastal zone and meet the needs of existing and future residents, while respecting the architectural character of existing neighborhoods and in a manner consistent with the LCP and anv applicable policies from Chapter 3 of the Coastal Act. . Section 2: Newport Beach Municipal Code (NBMC) Subsection 21.18.010(A) and (B) are amended to read as follows: A. R -A (Residential -Agricultural) Coastal Zoning District. The R -A Coastal Zoning District is intended to provide for areas appropriate for detached single-family residential dwelling units, accessory dwelling units, and light farming uses, each located on a single legal lot, and does not include condominiums or cooperative housing. B. R-1 (Single -Unit Residential) Coastal Zoning District. The R-1 Coastal Zoning District is intended to provide for areas appropriate for a range of detached single-family residential dwelling units and accessory dwelling units, each located on a single legal lot, and does not include condominiums or cooperative housing. Section 3: Table 21.18-1 in NBMC Section 21.18.020(C) (Allowed Uses and Permit Requirements) is amended, in part to the Accessory Dwelling Units" row as follows: Accessory Dwelling Units Section 21.48.200 Section 4: Table 21.18-2 in NBMC Section 21.18.030 (Residential Coastal Zoning Districts General Development Standards) is amended, in part, as to the "Density/Intensity" row as follows: Density/Intensity Each legal lot shall be allowed one single -unit detached dwelling. In addition, one accessory dwelling unit may be allowed. Section 5: NBMC Subsection 21.31.110(D) (Allowed Encroachments into Setback Areas) is amended to add subpart 16 to read as follows: 19-21 Resolution No. 2017 - Page 5 of 9 16. Accessory Dwellina Units. Accessory dwellina units may be established within reauired setback areas in compliance with the requirements of Section 21.48.200 (Accessory Dwelling Units). Section 6: Table 3-10 in NBMC Section 21.41.040 (Off -Street Parking Requirements) is amended, in part, as to the "Accessory Dwelling Units" row as follows: 1 per mi+• a minimi im of ') nn�ioror! per ci4c Accessory Dwelling Units i As required per Section 21.48.200 Section 7: Amend NBMC Chapter 21.48 to add Section 21.48.200 (Accessory Dwelling Units) to read as follows, with all other provisions of Chapter 21.48 remaining unchanged: 21.48.200 Accessory Dwelling Units A. Purpose. The purpose of this section is to establish the procedures for the creation of accessory dwelling units as defined in Part 7 (Definitions) and in the California Government Code Section 65852.2, or any successor statute, in single -unit residential zoning districts or areas designated for single-family residential use as part of a Planned Community Development Plan or Specific Plan, and to provide development standards to ensure the orderly development of these units in appropriate areas of the City. B. Review Authority. Accessory dwelling units shall be approved in all single -unit residential coastal zoning districts or areas designated for single-family residential use as part of a Planned Community Development Plan or Specific Plan, subject to the approval of the Director upon findina that the followina conditions have been met: 1. The dwelling conforms to the development standards and requirements for accessory dwelling units established in the subsections below. 2. Public and utility services including emergency access are adequate to serve both dwellings. C. Development standards. Except as modified by this subsection. an accessory dwellin unit shall conform to all requirements of the underlying residential coastal zoning district, any applicable overlay district, and all other applicable provisions of this Code, including but not limited to height, setback, site coverage, floor area limit, and residential development standards and design criteria: unless the unit is contained within a legal, nonconforming structure and does not expand the nonconformitV. 1. Minimum lot area. A minimum lot area of five thousand (5,000) square feet, excluding submerged land area, shall be required in order to establish an accessory dwelling unit. 2. Setback requirements. Accessory dwelling units shall comply with the setback reauirements aoalicable to the zonina district in which thev are located. except in cases 19-22 Resolution No. 2017 - Page 6 of 9 where the minimum required garage setbacks differ from principal building setbacks in which case the following applies: a. No additional setback shall be required for an existing garage that is converted to an accessory dwelling unit, provided that the side and rear setbacks comply with required Building Codes. b. A setback of no more than five feet from the side and rear lot lines shall be required for an accessory dwelling unit constructed above the garage. 3. Building height. Detached accessory dwelling units shall not exceed one story and a height of 14 feet, unless the accessory dwelling unit is constructed above a garage, in which case the structure shall comply with the height limits of the underlying zoning district. 4. Unit size. The maximum size of an accessory dwelling unit shall not exceed a 750 square feet of floor area, or 50 percent of the existing floor area (excluding garage) of the principal unit, whichever is less. 5. Design. An accessory dwelling unit shall be designed and sited to: a. Be similar to the principal dwelling with respect to architectural style, roof pitch, color, and materials; b. Protect public access to and alona the shoreline areas: c. Protect public views to and along the ocean and scenic coastal areas; d. Protect sensitive coastal resources: and e. Minimize and, where feasible, avoid shoreline hazards. 6. Conversion of space within existing structure. Notwithstanding the provisions of subsections C(1), C(2), C(3), C(4) and C(5) above, an accessory dwelling unit shall be permitted if the unit is contained within the existing space of a single -unit dwelling or existing accessory structure, has independent exterior access from the existing dwelling, and the side and rear setbacks comply with required Building Codes, and if the accessory dwellina unit conforms with the followina: a. For the purposes of this section, the portion of the single -unit dwelling or accessory structure must have been legally permitted and existing for a 19-23 Resolution No. 2017 - Page 7 of 9 minimum of three years prior to the issuance of a permit to convert the s into an accessory dwelling unit. b. No new or separate utility connection may be required between the accessory dwellina unit and the utilitv service, such as water, sewer, and power. 7. Fire sprinklers. Accessory dwelling units shall not be required to provide fire sprinklers if they are not required for the principal residence. 8. Passageway. No passageway shall be required in conjunction with the construction of an accessory dwelling unit. For the purposes of this section, "passageway" means a pathway that is unobstructed clear to the sky and extends from the street to one entrance of the accessory dwelling unit. 9. Parking. Parking shall comply with requirements of Chapter 21.40 (Off -Street Parking), except as modified below: a. One parking space required for one -bedroom or efficiency unit; two parking spaces reauired for unit with two or more bedrooms. b. Such parking may be provided as tandem parking and/or may be located on an existing driveway; however, in no case shall parking be allowed in a rear setback abutting an alley. c. No parking shall be required for: i. Accessory dwelling unit converted as part of the existing principal residence or existing accessory structure as described in subsection (C)5. ii. Accessory dwelling units located within one-half mile of a public transit. For the purposes of this section "public transit" shall include a bus stop with fixed route bus service that provides transit service at 15 -minute intervals or better durina weak commute aeriods. iii. Accessory dwelling unit is located within an architecturally and historically significant district. iv. When on -street parking permits are required but not offered to the occupant of the accessory dwelling unit. v. When there is a car -share vehicle located within one block of the accessory dwelling unit. For the purposes of this section, "car -share vehicle" shall mean part of an established program intended to stay in a fixed location for at least 10 years and available to the public. 19-24 Resolution No. 2017 - Page 8 of 9 d. If an accessory dwelling unit replaces an existing garage, replacement spaces must be provided. When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an accessory dwelling unit, any required replacement spaces may be located in any configuration on the same lot as the accessory dwelling unit, including but not limited to, as covered spaces, uncovered spaces, or tandem spaces, or by the use of mechanical automobile parking lifts. D. Additional reauirements for all accessory dwellina units. 1. Sale of units. The accessory dwelling unit shall not be sold separately from the principal dwelling. 2. Short-term lodging. The accessory dwelling unit shall not be rented for periods of less than 30 days. 3. Number of units allowed. Only one accessory dwellina unit may be located on the lot. 4. Existing development. A single -unit dwelling must exist on the lot or shall be constructed on the lot in conjunction with the construction of the accessory dwelling unit. 5. Occupancy. The principal dwelling unit or the accessory dwelling unit shall be continuously occupied by at least one person having an ownership interest in the lot. E. Deed restriction and recordation required. Prior to the issuance of a Building and/or Grading Permit for an accessory dwelling unit, the property owner shall record a deed restriction with the County Recorder's Office, the form and content of which is satisfactory to the City Attorney. The deed restriction document shall notify future owners of the owner occupancy requirements and restrictions on short-term rentals. This deed restriction shall remain in effect so Iona as the accessory dwellina unit exists on the orooerty. F. Coastal Develoament Permits Hearing Exemption. All of the provisions of Chapter 21.52 regarding the review and approval of Coastal Development Permits in relation to accessory dwelling units are applicable, except that a public hearing as required by Chapter 21.62 shall not be required. Public notice shall be provided as required in Section 21.62.020, except the requirements of Section 21.62.020(A) shall be replaced with a statement that no local public hearing will be held and that written comments on the proposed development may be submitted. 2. Appeal Exemption. Notwithstanding the local appeal provisions of Chapter 21.64, coastal development permits for accessory dwelling units that are defined as "appealable development" pursuant to Section 21.64.035(A) may be directly 19-25 Resolution No. 2017 - Page 9 of 9 appealable to the Coastal Commission in accordance with the provisions of Section 21.64.035 without a discretionary hearing by the Planning Commission or City Council. Section 8: The definition of "Accessory Dwelling Unit (Land Use) in NBMC Section 21.70.020 (Definition of Specialized Terms and Phrases) is amended to read as follows: Accessory Dwelling Unit (Land Use). See "Dwelling Unit, Sexier Accessory. Section 9: The definition of "Dwelling Unit, Senior Accessory (Land Use) in NBMC Section 21.70.020 (Definition of Specialized Terms and Phrases) is amended to read as follows , Dwelling Unit, Accessory (Land Use). A dwelling unit accessory to and attached to, detached from, , or contained within, the principal dwelling unit on a site zoned for a single-family dwelling. An accessory dwellina unit also includes the followina: 1. An efficiency unit, as defined in Section 17958.1 of the Health and Safety Code, or any successor statute. 2. A manufactured home, as defined in Section 18007 of the Health and Safety Code, or any successor statute. Section 10: Subpart 8 in NBMC Subsection 21.90.060(D) (Accessory Uses Permitted) is amended to read as follows: 8. Accessory dwellina unit in conformance with Section 21.48.200. 19-26 Attachment C Government Code Section 65852.2 (ADU State Law) 19-27 State of California GOVERNMENT CODE Section 65852.2 65852.2. (a) (1) A local agency may, by ordinance, provide for the creation of accessory dwelling units in single-family and multifamily residential zones. The ordinance shall do all of the following: (A) Designate areas within the jurisdiction of the local agency where accessory dwelling units may be permitted. The designation of areas may be based on criteria, that may include, but are not limited to, the adequacy of water and sewer services and the impact of accessory dwelling units on traffic flow and public safety. (B) (i) Impose standards on accessory dwelling units that include, but are not limited to, parking, height, setback, lot coverage, landscape, architectural review, maximum size of a unit, and standards that prevent adverse impacts on any real property that is listed in the California Register of Historic Places. (ii) Notwithstanding clause (i), a local agency may reduce or eliminate parking requirements for any accessory dwelling unit located within its jurisdiction. (C) Provide that accessory dwelling units do not exceed the allowable density for the lot upon which the accessory dwelling unit is located, and that accessory dwelling units are a residential use that is consistent with the existing general plan and zoning designation for the lot. (D) Require the accessory dwelling units to comply with all of the following: (i) The unit is not intended for sale separate from the primary residence and may be rented. (ii) The lot is zoned for single-family or multifamily use and contains an existing, single-family dwelling. (iii) The accessory dwelling unit is either attached to the existing dwelling or located within the living area of the existing dwelling or detached from the existing dwelling and located on the same lot as the existing dwelling. (iv) The increased floor area of an attached accessory dwelling unit shall not exceed 50 percent of the existing living area, with a maximum increase in floor area of 1,200 square feet. (v) The total area of floorspace for a detached accessory dwelling unit shall not exceed 1,200 square feet. (vi) No passageway shall be required in conjunction with the construction of an accessory dwelling unit. (vii) No setback shall be required for an existing garage that is converted to a accessory dwelling unit, and a setback of no more than five feet from the side and rear lot lines shall be required for an accessory dwelling unit that is constructed above a garage. 19-28 (viii) Local building code requirements that apply to detached dwellings, as appropriate. (ix) Approval by the local health officer where a private sewage disposal system is being used, if required. (x) (I) Parking requirements for accessory dwelling units shall not exceed one parking space per unit or per bedroom. These spaces may be provided as tandem parking on an existing driveway. (II) Offstreet parking shall be permitted in setback areas in locations determined by the local agency or through tandem parking, unless specific findings are made that parking in setback areas or tandem parking is not feasible based upon specific site or regional topographical or fire and life safety conditions, or that it is not permitted anywhere else in the jurisdiction. (111) This clause shall not apply to a unit that is described in subdivision (d). (xi) When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an accessory dwelling unit, and the local agency requires that those offstreet parking spaces be replaced, the replacement spaces may be located in any configuration on the same lot as the accessory dwelling unit, including, but not limited to, as covered spaces, uncovered spaces, or tandem spaces, or by the use of mechanical automobile parking lifts. This clause shall not apply to a unit that is described in subdivision (d). (2) The ordinance shall not be considered in the application of any local ordinance, policy, or program to limit residential growth. (3) When a local agency receives its first application on or after July 1, 2003, for a permit pursuant to this subdivision, the application shall be considered ministerially without discretionary review or a hearing, notwithstanding Section 65901 or 65906 or any local ordinance regulating the issuance of variances or special use permits, within 120 days after receiving the application. A local agency may charge a fee to reimburse it for costs that it incurs as a result of amendments to this paragraph enacted during the 2001-02 Regular Session of the Legislature, including the costs of adopting or amending any ordinance that provides for the creation of an accessory dwelling unit. (4) An existing ordinance governing the creation of an accessory dwelling unit by a local agency or an accessory dwelling ordinance adopted by a local agency subsequent to the effective date of the act adding this paragraph shall provide an approval process that includes only ministerial provisions for the approval of accessory dwelling units and shall not include any discretionary processes, provisions, or requirements for those units, except as otherwise provided in this subdivision. In the event that a local agency has an existing accessory dwelling unit ordinance that fails to meet the requirements of this subdivision, that ordinance shall be null and void upon the effective date of the act adding this paragraph and that agency shall thereafter apply the standards established in this subdivision for the approval of accessory dwelling units, unless and until the agency adopts an ordinance that complies with this section. 19-29 (5) No other local ordinance, policy, or regulation shall be the basis for the denial of a building permit or a use permit under this subdivision. (6) This subdivision establishes the maximum standards that local agencies shall use to evaluate a proposed accessory dwelling unit on a lot zoned for residential use that contains an existing single-family dwelling. No additional standards, other than those provided in this subdivision, shall be utilized or imposed, except that a local agency may require an applicant for a permit issued pursuant to this subdivision to be an owner -occupant or that the property be used for rentals of terms longer than 30 days. (7) A local agency may amend its zoning ordinance or general plan to incorporate the policies, procedures, or other provisions applicable to the creation of an accessory dwelling unit if these provisions are consistent with the limitations of this subdivision. (8) An accessory dwelling unit that conforms to this subdivision shall be deemed to be an accessory use or an accessory building and shall not be considered to exceed the allowable density for the lot upon which it is located, and shall be deemed to be a residential use that is consistent with the existing general plan and zoning designations for the lot. The accessory dwelling unit shall not be considered in the application of any local ordinance, policy, or program to limit residential growth. (b) When a local agency that has not adopted an ordinance governing accessory dwelling units in accordance with subdivision (a) receives its first application on or after July 1, 1983, for a permit to create an accessory dwelling unit pursuant to this subdivision, the local agency shall accept the application and approve or disapprove the application ministerially without discretionary review pursuant to subdivision (a) within 120 days after receiving the application. (c) A local agency may establish minimum and maximum unit size requirements for both attached and detached accessory dwelling units. No minimum or maximum size for an accessory dwelling unit, or size based upon a percentage of the existing dwelling, shall be established by ordinance for either attached or detached dwellings that does not permit at least an efficiency unit to be constructed in compliance with local development standards. Accessory dwelling units shall not be required to provide fire sprinklers if they are not required for the primary residence. (d) Notwithstanding any other law, a local agency, whether or not it has adopted an ordinance governing accessory dwelling units in accordance with subdivision (a), shall not impose parking standards for an accessory dwelling unit in any of the following instances: (1) The accessory dwelling unit is located within one-half mile of public transit. (2) The accessory dwelling unit is located within an architecturally and historically significant historic district. (3) The accessory dwelling unit is part of the existing primary residence or an existing accessory structure. (4) When on -street parking permits are required but not offered to the occupant of the accessory dwelling unit. (5) When there is a car share vehicle located within one block of the accessory dwelling unit. 19-30 (e) Notwithstanding subdivisions (a) to (d), inclusive, a local agency shall ministerially approve an application for a building permit to create within a single-family residential zone one accessory dwelling unit per single-family lot if the unit is contained within the existing space of a single-family residence or accessory structure, has independent exterior access from the existing residence, and the side and rear setbacks are sufficient for fire safety. Accessory dwelling units shall not be required to provide fire sprinklers if they are not required for the primary residence. (f) (1) Fees charged for the construction of accessory dwelling units shall be determined in accordance with Chapter 5 (commencing with Section 66000) and Chapter 7 (commencing with Section 66012). (2) Accessory dwelling units shall not be considered new residential uses for the purposes of calculating local agency connection fees or capacity charges for utilities, including water and sewer service. (A) For an accessory dwelling unit described in subdivision (e), a local agency shall not require the applicant to install a new or separate utility connection directly between the accessory dwelling unit and the utility or impose a related connection fee or capacity charge. (B) For an accessory dwelling unit that is not described in subdivision (e), a local agency may require a new or separate utility connection directly between the accessory dwelling unit and the utility. Consistent with Section 66013, the connection may be subject to a connection fee or capacity charge that shall be proportionate to the burden of the proposed accessory dwelling unit, based upon either its size or the number of its plumbing fixtures, upon the water or sewer system. This fee or charge shall not exceed the reasonable cost of providing this service. (g) This section does not limit the authority of local agencies to adopt less restrictive requirements for the creation of an accessory dwelling unit. (h) Local agencies shall submit a copy of the ordinance adopted pursuant to subdivision (a) to the Department of Housing and Community Development within 60 days after adoption. (i) As used in this section, the following terms mean: (1) "Living area" means the interior habitable area of a dwelling unit including basements and attics but does not include a garage or any accessory structure. (2) "Local agency" means a city, county, or city and county, whether general law or chartered. (3) For purposes of this section, "neighborhood" has the same meaning as set forth in Section 65589.5. (4) "Accessory dwelling unit" means an attached or a detached residential dwelling unit which provides complete independent living facilities for one or more persons. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family dwelling is situated. An accessory dwelling unit also includes the following: (A) An efficiency unit, as defined in Section 17958.1 of Health and Safety Code. (B) A manufactured home, as defined in Section 18007 of the Health and Safety Code. 19-31 (5) "Passageway" means a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the accessory dwelling unit. 0) Nothing in this section shall be construed to supersede or in any way alter or lessen the effect or application of the California Coastal Act (Division 20 (commencing with Section 30000) of the Public Resources Code), except that the local government shall not be required to hold public hearings for coastal development permit applications for accessory dwelling units. (Amended by Stats. 2016, Ch. 735, Sec. 1.5. (AB 2299) Effective January 1, 2017.) 19-32 Attachment D Former Senior ADU Regulations (NBMC Sec. 20.48.200) 19-33 20.48.200 Senior Accessory Dwelling Units. ........................................................................................................ A. Purpose. The purpose of this section is to: 1. Establish procedures for the creation of granny units as defined in Part 7 of this title (Definitions) and in California Government Code Section 65852.1, and to provide development standards to ensure the orderly development of these units in appropriate areas of the City. 2. Prohibit the development of second units, as defined in Part 7 of this title (Definitions), on single-family residential lots as provided for in Government Code Section 65852.2. B. Prohibitions. The creation of a second unit on all sites within the City where this Zoning Code and the General Plan allow only one dwelling unit is expressly prohibited. Nothing contained in this section shall affect the creation of granny units under Government Code Section 65852.1 that are in compliance with the Municipal Code. C. Development Standards. The following standards shall be met before the occupancy of the granny unit in compliance with this section: 1. Building Height. Granny units shall comply with the maximum height limits in the zoning district in which they are located as provided in Part 2 of this title (Zoning Districts, Allowable Land Uses, and Zoning District Standards). 2. Setback Requirements. Granny units shall comply with the setback requirements applicable to the zoning district in which they are located. 3. Minimum Lot Size. A minimum lot size of five thousand four hundred fifty (5,450) square feet shall be required in order to establish a granny unit. 4. Minimum Floor Area. Each granny unit shall provide a minimum of six hundred (600) square feet of floor area and a maximum of six hundred forty (640) square feet of floor area as measured from within the surrounding perimeter walls of the unit. 19-34 5. Owner Occupancy Required. The principal dwelling unit or the granny unit shall be continuously occupied by at least one person having an ownership interest in the lot. D. Verification of Occupancy. Commencing with the final inspection of the granny unit by the Building Inspector and on an annual basis every year afterwards, the property owner shall submit to the Director the names and birth dates of any and all occupants of the granny unit to verify occupancy by a person or persons fifty-five (55) years of age or older. Upon any change of tenants, the property owner shall notify the Director immediately. This information shall be submitted in writing and shall contain a statement signed by the property owner certifying under penalty of perjury that all of the information is true and correct. E. Deed Restriction and Recordation Required. After approval of a minor use permit and before issuance of a building and/or grading permit for a granny unit, the property owner shall record a deed restriction with the County Recorder's Office, the form and content of which is satisfactory to the City Attorney. The deed restriction document shall state that under no circumstances shall the granny unit be rented to or otherwise occupied by any person or persons less than fifty-five (55) years of age. The deed restriction document shall also contain all conditions of approval imposed by the review authority. This deed restriction shall remain in effect so long as the granny unit exists on the property. F. Termination of Use. In the event that the property owner desires to terminate the use of the granny unit and remove the deed restriction, building permits shall be obtained that restore the property to a single dwelling unit as defined in Part 7 of this title (Definitions). The Director shall review and approve the plans before the issuance of the building permits to ensure compliance with the intent of this section and the definition. Upon completion of the final inspection by the Building Official, the Director shall cause the deed restriction to be removed from the property by the County Recorder. (Ord. 2010-21 § 1 (Exh. A)(part), 2010) 19-35 Attachment E City Council Ordinance No. 88-39 19-36 ORDINANCE NO. 88-39 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AMENDING TITLE 20 OF THE MUNICIPAL CODE SO AS TO ADOPT AN ORDINANCE PROHIBITING THE CREATION OF SECOND FAMILY UNITS IN SINGLE FAMILY OR MULTI -FAMILY DISTRICTS (Planning Commission Amendment No. 669) WHEREAS, Section 65852.2 of the California Government Code provides criteria for local agencies to establish regulations pertaining to the creation of second family units on single or multi -family building sites or to prohibit such uses; and WHEREAS, the City has recently completed major revisions to the Land Use and Circulation Elements of the General Plan; and WHEREAS, as a part of these revisions the City reviewed all of it's existing commercial intensity standards and permitted residential densities and it was determined that the previous allowable development would adverse- ly impact the City's existing circulation system; and WHEREAS, in order to determine the levels of development that could be accommodated in the City, a computerized Traffic Model was developed to analyze the impacts of different levels of commercial, residential, and industrial growth on the City's circulation system; and WHEREAS, after over eighteen months of public input, extensive analysis by Staff and Consultants, and many public hearings before the Planning Commission and City Council, the Land Use Element of the General Plan now establishes specific levels of development, both commercial and residential, that are correlated with the Circulation Element; and WHEREAS, the increase in the number of dwelling units that could be created pursuant to Section 65852.2 of the Government Code would adversely impact the balance and correlation between the Land Use and Circulation Elements of the General Plan; and WHEREAS, Section 65852.2 (c) sets forth the findings necessary for local agencies to prohibit second family units; and WHEREAS, the areas devoted to single family residential uses within the City of Newport Beach have developed so as to provide the residents a high quality of life and the peaceful enjoyment of their neighborhoods; and WHEREAS, the City of Newport Beach has historically provided a balance between the amount of land devoted to single and multi -family areas; and WHEREAS, there are many areas of the City designated for Two -Family and Multi -Family Residential uses that are developed with less than the per- mitted number of dwelling units on individual building sites; and WHEREAS, these underdeveloped Two -Family and Multi -Family Residential areas have been designed and built to provide adequate infrastructure for additional dwelling units; and WHEREAS, it is likely that any additional dwelling units created within these underdeveloped Two -Family and Multi -Family Residential areas would provide housing opportunities for all economic segments of the City; and • WHEREAS, it is the intention of the City to adopt an ordinance permitt- ing "Granny Units;" and WHEREAS, the creation of additional dwelling units in the Two -Family and Multi -Family Residential areas within the growth limits established in the General Plan Land Use Element will satisfy the legislative intent of 1 19-37 Section 65852.2 by increasing the number of housing opportunities within the region; and WHEREAS, prohibiting second family units within Single and Multi -Family Residential areas may limit housing opportunities of the region, any additional demand can be provided within the existing underdeveloped Two - Family and Multi -Family Residential areas; and WHEREAS, the creation of second family dwelling units in Single Family Detached areas will adversely impact the peace and quiet associated with these neighborhoods in the City; and - WHEREAS, the City Council of the City of Newport Beach has found and determined that second family units as defined herein and in Section 65852.2 of the Government Code will adversely impact the public health, safety, and welfare of residents in the City. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. The Newport Beach Municipal Code is hereby amended to include Chapter 20.79, Second Family Units. This Chapter shall apply to all property within the City. SECTION 2. The Planning Director of the City of Newport Beach is hereby instructed and directed to enforce the provisions of this Chapter. SECTION 3. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. This ordinance shall be published once in the official newspaper of the City within fifteen (15) days of its adoption. This ordinance shall be effective thirty days after the date of its adop- tion. SECOND FAMILY UNITS 40 CHAPTER 20.79 Sections: 20.79.010 Intent and Purpose 20.79.015 Definitions 20.79.020 Prohibitions 20.79.025 Separability 20.79.010 INTENT AND PURPOSE. It is the intent of this Chapter to prohibit the development of second family residential units on single family residential lots as provided for in Section 65852.2 of the California Government Code. 20.79.015 DEFINITION. The following term used in this Chapter shall have the meaning indicated herein: Second Family Residential Unit. A dwelling unit ancillary to and either attached to, detached from, or contained within the primary dwelling unit on a building site. 20.79.020 PROHIBITIONS. The creation of a second family residential unit on all building sites within the City of Newport Beach where the zoning and General Plan permit only one (1) dwelling unit is expressly prohibited. Nothing contained herein shall affect the creation of Granny Units under Section 65852.1 of the California Government Code that are in compliance with the Newport Beach Municipal Code. 2 19-38 20.79.025 SEPARABILITY. If any provisions or requirements of this Chapter shall be found invalid or unconstitutional in application or interpretation by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Chapter. This ordinance was introduced at a regular meeting of the City Council of the City of Newport beach held on the 10th day of October, 1988, and was adopted on the 24th day of October 1988, by the following vote, to wit: AYES, COUNCIL MEMBERS TURNER, PLUMMER, HART, COX, STRAUSS, SANSONE, MAURER NOES, COUNCIL MEMBERS NONE AT EST: Awn City Clerk low CG:WP:ORa2079:October 4, 1988 �1 to ABSENT COUNCIL MEMBERS NONE 3 19-39 Attachment F May 4, 2017, Planning Commission Minutes 19-40 NEWPORT BEACH PLANNING COMMISSION MINUTES CITY COUNCIL CHAMBERS —100 CIVIC CENTER DRIVE THURSDAY, MAY 4, 2017 REGULAR MEETING — 6:30 P.M. CALL TO ORDER — The meeting was called to order at 6:31 p.m. II. PLEDGE OF ALLEGIANCE — Chair Kramer III. ROLL CALL PRESENT: Chair Kory Kramer, Vice Chair Peter Koetting, Secretary Peter Zak (Arrived at 6:32 p.m.), Commissioner Bill Dunlap, Commissioner Bradley Hillgren, Commissioner Erik Weigand ABSENT: Commissioner Raymond Lawler Staff Present: Deputy Director Brenda Wisneski; Deputy City Attorney Andrew Maiorano; Planning Manager Patrick Alford; Principal Planner Jim Campbell; Senior Planner Jaime Murillo; Administrative Support Specialist Jennifer Biddle IV. PUBLIC COMMENTS None. V. REQUEST FOR CONTINUANCES None, VI. CONSENT ITEMS ITEM NO. 1 MINUTES OF APRIL 20, 2017 Recommended Action: Approve and file Motion made by Vice Chair Koetting and seconded by Commissioner Dunlap to approve the minutes of April 20, 2017. AYES: Koetting, Dunlap, Weigand NOES: None ABSTAIN: Kramer, Hillgren ABSENT: Zak, Lawler VII. PUBLIC HEARING ITEMS ITEM NO.2 ACCESSORY DWELLING UNIT ORDINANCE (PA2017-069) Site Location: Citywide Senior Planner Jaime Murillo reported the proposed ordinances would amend the City's Zoning Code for properties citywide and the City's Local Coastal Program (LCP) for properties within the coastal zone. The revisions respond to two bills that change the State's Accessory Dwelling Unit (ADU) law. An accessory dwelling unit is a complete secondary unit with independent living facilities for one or more persons. The two types of ADUs are new construction, either attached or detached, and conversion of existing floor area within the principal dwelling. The State law does not restrict homeowner association (HOA) powers or limit the prohibition of ADUs through Covenants, Conditions, and Restrictions (CC&Rs). State law revisions only apply to local agencies in the state. The City currently prohibits ADUs, which was allowed under previous versions of the State law. The City has allowed granny units or senior ADUs through a minor use permit process and has limited occupancy to persons 55 years of age or older. The new State law essentially eliminates cities' ability to prohibit second units. Any existing ordinance not consistent with State law is considered null and void. The State has established some very basic and minimal development standards for ADUs. ADUs must be approved ministerially, meaning without a public hearing, in all single -unit and multi -unit residential zones where only a single-family home is present. 1 of 8 19-41 NEWPORT BEACH PLANNING COMMISSION MINUTES 05/01/2017 Through the adoption of a new ordinance consistent with State law, the City can apply additional regulations pertaining to location, lot size, parking, and aesthetics provided that the regulations are not arbitrary, excessive, burdensome, and do not unreasonably restrict the creation of ADUs. State standards allow new construction ADUs in any single-family or multifamily residentially zoned lot. There is no minimum lot size standard. Staff proposes modifying State standards to allow ADUs in only single-family residentially zoned lots that provide a minimum of 5,000 square feet, which is the City's minimum conforming lot size. Staff proposes a minimum lot size because many areas in the City have a high concentration of substandard lot sizes and are already impacted by on -street parking. Zoning areas that currently allow R-2 and multifamily development, with the exception of large apartment complexes, are also in impacted neighborhoods with substandard lots. Staff believes redevelopment in those areas should occur in conformance with current parking regulations to ensure neighborhood compatibility and preservation of on -street parking for existing residents and visitors. State standards limit the maximum size of detached ADUs to 1,200 square feet. Attached ADUs are limited to 50 percent of the existing living area and up to a maximum of 1,200 square feet. Staff proposes to modify that standard to 750 square feet maximum or 50 percent of the existing area, whichever is less. In this manner, ADUs would remain subordinate to the principal dwelling and retain the character of single-family neighborhoods. The City's past Granny Unit Ordinance allowed a maximum size of 650 square feet. The City cannot require more than one parking space per bedroom or unit. The spaces can be provided through covered parking, uncovered parking, tandem parking on a driveway or the use of mechanical lifts. No parking shall be required for ADUs located within a half mile of a public transit stop, one block of a car -share program, a historic district, or an area where on -street parking permits are required and not offered to occupants of the ADU. Proposed regulations would adopt State parking standards except they would continue to prohibit parking in rear alley setbacks and define a public transit stop as a route that provides intervals of 15 minutes or better during peak periods. Car share programs would be defined as an established program in a fixed location and available to the public, such as Zipcar, but not car -share app programs. State standards make no provisions for aesthetics. To preserve the single-family character of neighborhoods, to minimize the appearance of multiple lots on the property, and to ensure ADUs remain subordinate, staff proposes height standards. Detached units would be one story and no more than 14 feet in height. Attached ADUs or ADUs located above a garage would be subject to the City's standard zoning requirements, which is usually 24 feet for single-family homes. With respect to design, staff proposes ADUs be designed similar to the principal dwelling on the lot with respect to architectural style, roof pitch, color, and materials to ensure the design is compatible with the existing home and doesn't appear as a separate unit. State standards require no setbacks for existing garage conversions and a setback of no more than 5 feet from a side or rear lot line for an ADU constructed above a garage. The City standard would require compliance with standard zoning requirements except as modified by State standards. Senior Planner Murillo reviewed the State standards that cannot be modified. To prevent someone from purposely building a 2,000 -square -foot accessory structure and then immediately converting it to an ADU to skirt the unit size and parking requirements, staff proposes a provision stating a dwelling or structure to be converted must have legally been permitted and existing for a minimum period of three years. The City can prohibit the use of ADUs for short-term lodging; can require owner occupancy of either the principal or accessory unit; and require deed restrictions be recorded on a property to notify future owners of restrictions. If a Coastal Development Permit is required, no public hearing can be required. Coastal Commission staff has suggested the City add a Coastal Land Use Plan policy to provide a framework for Implementation Plan regulations. In response to Commissioner Dunlap's questions, Senior Planner Murillo advised that staff has reviewed the actions and proposed actions of many cities. Two cities in Orange County have adopted an ordinance. Staff proposed a minimum lot size of 5,000 square feet because 5,450 square feet is the minimum lot size for granny units and 5,000 square feet for most single-family zoned lots. Commissioner Dunlap commented that current Municipal Code requires a new home of 5,000 square feet or more to have fire sprinklers. He questioned if someone could build a single-family home of less than 5,000 square feet and add 750 square feet as an ADU without installing fire sprinklers. Senior Planner Murillo responded that under State law, the City cannot require fire sprinklers for the ADU if sprinklers are not required for the principal unit. At a recent webinar regarding the new State law, many cities expressed concerns about this provision. In reply to Vice Chair Koetting's questions, Senior Planner Murillo indicated the State law does not mention HOAs or Covenants, Conditions, and Restrictions (CC&Rs). The new law only affects local agencies and their ordinances. An HOA's denial of a proposed ADU is consistent with the State law as written. The new State law does not override existing CC&Rs; in fact, it does not mention CC&Rs at all. Staff received correspondence from a local HOA objecting to adoption of the ordinances. The City's proposed ordinance would not affect an HOAs existing power and ability to regulate ADUs through CC&Rs. Under current State standards, people can apply for a permit to build an ADU without Planning Commission review. Under State standards, staff would ministerially Page 2 of 8 19-42 NEWPORT BEACH PLANNING COMMISSION MINUTES 05/01/2017 approve a permit for an ADU consistent with basic development standards on any size lot and up to 1,200 square feet for new construction. A property owner who converts a garage to an ADU would have to replace the parking if it was required parking. State law allows replacement parking to be uncovered, tandem, or on a driveway. In response to Commissioner Hillgren's inquiries, Senior Planner Murillo stated parking is not required for an ADU if the conditions listed in Item 9C of staffs memorandum exist. If the existing dwelling unit is required to have two spaces, then the existing unit and an ADU would still be required to have two spaces total if it is located within a half mile of a transit stop. An ADU combined with the principal residence would have to comply with the overall Floor Area Ratios (FAR) and lot coverage requirements for the property as a whole. The State law includes a CEQA exemption for cities to adopt an ordinance in compliance with the State law and states ADUs are not to be considered an increase in density for the purposes of the General Plan or any other city implementation document. Deputy Director Wisneski clarified that State law allows the City to preclude short-term lodging. The Municipal Code defines short-term lodging as 30 days or less. Senior Planner Murillo explained that anyone could apply for a variance for any deviation from the Code; however, making the findings to support a variance would be difficult in the case of an ADU. Deputy Director Wisneski advised that protection of private views is a subjective matter that staff probably would not want to consider at an administrative level. The Code allows consideration of the fact that any development occurring is consistent with development standards of a single-family home. Where the ADU structure would be established is where the principal home could be established. This is not increasing the possibility of infringing upon privacy. In reply to Commissioner Dunlap's questions, Senior Planner Murillo reported the nonconforming chapter of the Code allows a lot of flexibility for the development of nonconforming structures; however, the Code limits alterations to nonconforming accessory structures. An existing garage that encroaches into the current setbacks could not be converted to an ADU. The Code would not allow the garage to be converted to an ADU unless it was relocated outside the setback. Deputy City Attorney Maiorano reiterated that the State law is silent on CC&Rs. The State might choose to legislate the issue of CC&Rs later. An HOA taking action on its CC&Rs would not violate the terms of the State law because there is no mention of them in State law. Chair Kramer opened the public hearing. Jim Mosher remarked regarding the six-week period prior to final action, grammatical errors, and confusing language. Library staff was not aware that they had draft copies of amendments. The CEQA determination on page 2 of 9 is more elaborate than it needs to be. The Coastal Land Use Plan should include a definition of ADU. The Local Coastal Plan does not contain a Table 3-10 or a Section 21.41.40. Senior Planner Murillo could clarify citations to the California Code of Regulations. He personally handed copies of the amendments to the Central Library for distribution. The City does not intend to take any final action prior to six weeks from the date it released the Notice of Availability. The tentative City Council date is the first meeting in June, which would be six weeks from the date the notice was released. The City will submit formal amendments to the Coastal Commission after it takes final action. The CEQA exemption provides a clear rationale for the exemption. Staff will correct grammatical errors in the final versions presented to the City Council. Chair Kramer closed the public hearing. Chair Kramer questioned whether the proposed minimum lot size and unit size regulations are discriminatory. Staffs proposal for aesthetics is good because having no standard is not helpful. Setbacks have to conform with the Zoning Code. The prohibition against parking in rear alley setbacks makes sense. In response to Chair Kramer's questions, Senior Planner Murillo indicated the City has the ability to implement the State standards of no minimum lot size and a maximum unit size up to 1,200 square feet. Staff proposed modifications in an effort to preserve the character of single-family neighborhoods and to address the issue of parking in neighborhoods consisting of substandard lots. The 5,000 square foot minimum lot size would preclude new construction in all of Newport Shores, a majority of homes in Bayshores, and many homes on the Peninsula. The policy would encourage development of ADUs on larger lots that can more easily accommodate them. The State law allows the City to establish a minimum lot size differentfrom the one contained in the State law. Staff proposed a minimum lot size of 5,000 square feet, but the Planning Commission can change that. Staff proposed 5,000 square feet because they found that most zoning districts comply with the standard minimum lot size of 5,000 square feet. The exceptions were zoning districts located in the older parts of town, such as the Peninsula and Corona del Mar, where many lots are about 2,500 square feet. Page 3 of 8 19-43 NEWPORT BEACH PLANNING COMMISSION MINUTES 05/01/2017 In reply to Vice Chair Koetting's inquiry, Senior Planner Murillo explained the graph found on page 59. Yellow lots are conventional zoning for single-family. Purple lots are the single-family equivalent within planned community neighborhoods. Approximately 60 percent of single-family lots with conventional zoning would comply with the 5,000 square foot lot standard, and 85 percent of lots in planned communities would comply with that standard. In response to Chair Kramer's question, Senior Planner Murillo stated the difference between maps on pages 55 and 59 is Newport Shores, Eastbluff, Bayshores, and some lots on Lido Isle and the Peninsula. Page 55 has a map of properties eligible for conversion. If the minimum lot size requirement is removed, then all those properties would be eligible for construction of new ADUs. In reply to Vice Chair Koetting's question regarding current requests, Senior Planner Murillo reported staff talked with four individuals about ADUs. One property owner is working on plans for an ADU, and her property would comply with the proposed regulations. In response to Commissioner Hillgren's inquiry regarding urgency, Deputy Director Wisneski indicated there is no urgency for the Planning Commission to act. The City has been complying with the State law since January 1. Staff has not received any applications for ADUs and the one potential application is in compliance with the proposed regulations. Staff can return to the Planning Commission with any additional information it requests. Commissioner Hillgren noted the City's previous policy against ADUs. The City is attempting to impose reasonable restrictions that follow the State's intentions and also preserve the City's intentions. In reply to Commissioner Hillgren's questions, Senior Planner Murillo advised that staff sent public hearing notices to all HOAs on file with the City at least ten days prior to the hearing. Motion made by Chair Kramer and seconded by Commissioner Dunlap to continue the item. AYES: Kramer, Koetting, Zak, Dunlap, Hillgren, Weigand NOES: None ABSTAIN: None ABSENT: Lawler Commissioner Dunlap expressed concern about the few public comments given the potential effects on many residences. He questioned whether staff could make a broader public announcement. There should have been a workshop on the topic. ITEM NO. 3 LOCAL COASTAL PROGRAM AMENDMENTS (PA2017-047, PA2017-046 & PA2013-057) Site Location: Citywide Deputy Director Wisneski reported the amendment for the Oceanfront Encroachment Program was presented to the Planning Commission in midcycle of the Implementation Plan (IP). The Balboa Village program was part of the IP originally approved by the City, but the Coastal Commission removed it from the approved program. The Planning Commission took action on the Oceanfront Encroachment Program in 2015. The City Council amended the regulations in June 2016. The amendment concerns an area of the Peninsula from G Street down to Channel Road where properties have encroached beyond their property lines. Property owners have received violations from the Coastal Commission because of encroachments into the public right-of-way. Staff proposes to create an encroachment program similar to that in West Newport. The public right-of-way allows the City to implement a 15 - foot encroachment program so that property owners can purchase annual encroachment permits for minimal improvements. Because the area is only 15 feet, public access would be maintained. The proposed amendment would include Zoning Code regulations in the Implementation Plan. In response to Chair Kramer's questions, Deputy Director Wisneski advised that the fee would depend on how far the property owner encroached and the market rate of the property. Staff conducted a market analysis in 2016, which would be reevaluated when the program is adopted. The permit cost would be the amount of square footage of the encroachment multiplied by a fixed number. Page 4 of 8 19-44 Attachment G June 8, 2017, Planning Commission Minutes 19-45 NEWPORT BEACH PLANNING COMMISSION MINUTES 06/08/2017 Motion made by Commissioner Lawler and seconded by Commissioner Weigand to adopt Resolution No. 2056 approving an amendment to Conditional Use Permit No. UP2016-039 and to find this project categorically exempt under Section 15301 of the California Environmental Quality Act (CEQA) Guidelines. AYES: Kramer, Dunlap, Hillgren, Lawler, Weigand NOES: None ABSTAIN: None ABSENT: Koetting, Zak ITEM NO. 3 ACCESSORY DWELLING UNIT ORDINANCE (PA2017-069) Site Location: Citywide Senior Planner Murillo reported this item was continued from the May 4 meeting because of technical difficulties and to conduct additional outreach requested by the Planning Commission. Staff prepared and distributed a revised public hearing notice and a companion fact sheet to the community associations. Staff prepared an accessory dwelling unit (ADU) webpage that answered questions and provided additional details. Staff presented a summary of the amendments to the Corona del Mar Realtors Association. The Daily Pilot published an article summarizing the State standards and proposed amendments. Staff received only one correspondence from the Newport Hills Community Association opposing the amendments and some telephone calls from association property managers who asked questions but did not oppose the amendments. The State recently revised a portion of State law relating to accessory dwelling units. An accessory dwelling unit is a secondary dwelling unit with complete, independent living facilities. There are two types of accessory dwelling units and they are regulated slightly differently under State law and the proposed amendments. The first type is created through new construction and can be either an addition attached to the principal dwelling or a standalone, detached structure. The second type is created through converting or repurposing existing space within an existing home into an accessory dwelling unit. The law is intended to increase the supply of housing in the state and is an alternative to government -subsidized housing programs. The law does not address associations or preempt existing or proposed Covenants, Conditions & Restrictions (CC&Rs); it only affects local agencies. The law does not allow cities to prohibit second units and existing regulations are considered null and void. Until cities adopt compliant ordinances, they must utilize the interim State standards. Under the State standards, cities must approve all ADUs ministerially and must approve ADUs in all single-family and multifamily zones where only a single-family home is present. The City's ability to regulate ADUs is subject to minimal development standards. With adoption of an ordinance, the City can apply additional regulations pertaining to location, lot size, parking, and aesthetics provided that the regulations are not arbitrary, excessive, burdensome, or unreasonably restrict the creation of ADUs. Staff proposes to allow ADUs in single-family residential zoned lots only and only in lots containing a minimum of 5,000 square feet. The older parts of the City have a high concentration of lots that are substandard, meaning the lots contain less than 5,000 square feet and have less privacy, less setbacks, and little on -street parking. The older parts of the City also have a higher concentration of properties zoned for multifamily and two-family development; therefore, the possibility of increased development already exists. Staff believes new development should occur in these areas consistent with development standards and parking requirements. Of the 18,830 lots zoned for single-family development, approximately 70 percent can be developed with an ADU. Staff proposes a maximum ADU size of 750 square feet or 50 percent of the existing area, whichever is less, to ensure that the ADU remains subordinate to the principal dwelling, does not function as a duplex, and retains the original character of single- family neighborhoods. The City has to adopt essentially the State standards regarding parking; however, the City can clarify them. Staff proposes to define a public transit stop as a stop along a route with an interval of 15 minutes or less during peak periods and to define a car share program as an established program in a fixed location that is available to the public. This will prevent car share apps from being considered as a public transit stop. Staff proposes parking not be allowed in rear alley setbacks consistent with policies throughout the City. Senior Planner Murillo shared a map of bus routes where ADUs would be eligible for a parking waiver. Staff proposes detached ADUs be restricted to one story and no higher than 14 feet. Attached units would be subject to standard zoning height requirements, which is typically 24 feet in single-family zones. Staff proposes requiring that ADUs be designed similar to the principal dwelling on the lot with respect to architectural style, roof pitch, color, and materials. Staff proposes adoption of State standards regarding setbacks for conversion of garages to ADUs and for construction of an ADU above a garage. All other setbacks should comply with the City's standard setback requirements. Staff proposes adoption of the standard not to require a passageway to the unit. The State law states that fire sprinklers shall not be required if not provided for the principal dwelling. With respect to conversion of existing space to an ADU, the City cannot restrict development of these ADUs and shall permit them in any 2 of 5 19-46 NEWPORT BEACH PLANNING COMMISSION MINUTES 06/08/2017 single-family dwelling or accessory structure on a property that is zoned for single-family purposes. Because of the potential for homeowners to abuse this standard, staff proposes to define an existing structure as any dwelling or structure that was legally permitted and in existence for a period of three years. There is no limit on the size of these ADUs. The City cannot require any additional parking and cannot require any new fees or utility connections. ADUs need to comply with the Building Code and must have exterior access. With adoption of an ordinance, the City can prohibit rentals for short-term lodging, which is a period of 30 days or less. The City can require that the ADU or the principal dwelling be occupied by the owner of the property. The State law allows the City to require a deed restriction be recorded on the property to notify future owners of the restrictions. In addition to the Zoning Code amendment, the City needs to amend the Local Coastal Program to include similar language in the Implementation Plan of the Local Coastal Program. The Local Coastal Program amendment includes a provision that a Coastal Development Permit is required for the creation of an ADU and that no public hearing is required per State standards. The California Coastal Commission requested that staff add a coastal land use plan policy within the document to help guide and serve as a purpose for the Local Coastal Program amendment. A total of 5,834 lots located within the coastal zone would be affected by the amendments, and approximately 43 percent of those lots contain 5,000 square feet or more. Staff recommends that the Planning Commission recommend the amendments to the City Council, approve the Code amendments and direct staff to submit the Local Coastal Program amendments to the California Coastal Commission. In response to Commissioner Dunlap's questions, Chief Building Official Seimone Jurjis explained that the State wants to make construction of accessory dwelling units easy. If the original dwelling does not have fire sprinklers, then a detached accessory unit which is typically new construction does not require fire sprinklers. Whether an ADU is attached or detached and the existing home does not have fire sprinklers, the ADU does not require fire sprinklers. The addition of an ADU could increase the total square footage to more than 5,000 square feet but the ADU is still exempt from fire sprinklers if the original dwelling does not have them. Commissioner Dunlap expressed concern that the provision will allow additional construction that obviates the City's Fire Code. Chair Kramer advised that a report of ex parte communications was not needed. Chair Kramer opened the public hearing. Jim Mosher inquired about the rationale for the minimum lot size requirement of 5,450 square feet for a granny unit and 5,000 square feet for an ADU. He suggested clarifications be made to language in the first section, Section 2(a) and (b), and Section 6 of the proposed ordinance. Senior Planner Murillo explained that the minimum lot size of 5,450 square feet is from the granny unit ordinance, and 5,000 square feet is the minimum lot size for a new, conforming lot in an R-1 district. The requirement for a setback of no more than five feet was taken from state standards, and staff intended for it to read that way. The provision indicates an applicant needs to comply with basic setback standards from the Code; however, in no case shall the City require more than five feet. The provision does not need to be redrafted. With respect to a separate utility connection, the City cannot require one but the homeowner can voluntarily provide one. Chair Kramer closed the public hearing. Motion made by Commissioner Lawler and seconded by Chair Kramer to adopt Resolution No. 2057 recommending the City Council approve Zoning Code Amendment No. CA2017-003 modifying regulations pertaining to accessory dwelling units; adopt Resolution No. 2058 recommending the City Council authorize staff to submit Local Coastal Program Amendment No. LC2017-003 to the California Coastal Commission; and to find this project statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15282(h) of the CEQA Guidelines AYES: Kramer, Hillgren, Lawler, Weigand NOES: Dunlap ABSTAIN: None ABSENT: Koetting, Zak 3 of 5 19-47 Attachment H Description of Proposed Zoning Code Modifcations Description of Proposed Zoning Code Modifications State law encourages cities to adopt a local ordinance consistent with the law and allows additional regulation of ADUs pertaining to location, lot size, unit size, parking and aesthetics, provided the additional regulations are not arbitrary, excessive, and burdensome and that unreasonably restrict the creation of ADU. As such, staff has included the following additional regulations and clarifications to the draft ordinance. A complete redline version of the proposed revisions to the Zoning Code is included as Attachment 1. Location The draft ordinance permits ADUs in single-family residential zoning districts and areas designated for single-family residential use as part of a Planned Community or Specific Plan. ADUs would be prohibited in two-family and multi -family zoning districts. Attachment 2 provides an overview of the eligible single-family residential zoning districts. With the exception of large apartment complexes, most two-family and multi -family zoned properties are located in coastal neighborhoods of the City with substandard lot sizes and impacted by a lack of on -street parking, such as Corona del Mar, Balboa Peninsula, Balboa Island, and West Newport. Many lots in these neighborhoods are developed with less than the permitted number of units and capacity exists to construct additional density; however, redevelopment should occur in conformance with current parking standards ensuring neighborhood compatibility and preservation of on -street parking for existing residents and visitors to the beaches. It should be noted that the law does not apply to homeowner's associations or preclude prohibition of ADUs by CC&Rs. Minimum Lot Size for New ADUs The draft ordinance requires a minimum lot size of 5,000 square feet or greater, excluding submerged land area, in order to create an ADU through either an addition or new construction. If a property does not meet the minimum lot size, an ADU will not be permitted. Attachment 3 provides an overview of the eligible single-family zoning districts that also meet the minimum lot size requirements. The City is unable to restrict the minimum lot size of ADUs converted from existing floor area within an existing unit. 19-49 Aesthetics To preserve the character of single-family neighborhoods, minimize the appearance of multiple units on a lot, and ensure the design of ADUs remain subordinate to that of the principal residence, the draft ordinance regulates height and design as follows: Height- Detached ADUs would be restricted to one story and 14 feet, unless located above a garage, in which case the structure shall comply with the height limit of the underlying zoning district (typically 24 feet flat roofs/29 feet sloped roofs). Design- ADUs shall be designed similar to the principal dwelling on the lots with respect to architectural style, roof pitch, color, and materials. Unit Size The draft ordinance limits unit size for the construction of new ADUs to a maximum of 750 square feet, or 50 percent of the existing floor area (excluding garage) of the principal unit, whichever is less. The intent is to restrict the unit size to ensure it remains subordinate to the principal dwelling and to retain the character of the single-family neighborhood. The proposed unit size limitation is 110 square feet larger than the unit size previously allowed for Senior Accessory Dwelling Units by the City and which proved large enough to accommodate a one -bedroom unit. The City is unable to restrict the unit size of ADUs created from existing floor area within an existing unit. Parking The draft ordinance establishes flexible parking regulations in compliance with State law, with additional clarifications as follows: • One parking space required for one -bedroom or efficiency (small studio) unit; two parking spaces required for a unit with two or more bedrooms. • Parking may be provided as tandem parking and/or may be located on an existing driveway; however, in no case shall parking be allowed in a rear setback abutting an alley. • No parking shall be required for: 19-50 o ADU converted as part of the existing principal residence or existing accessory structure. o ADU located within one-half mile of a public transit. "Public transit" will be defined to mean a bus stop with fixed route bus service that provides transit service at 15 -minute intervals or better during peak commute periods. See Attachment 3 for a map of eligible bus routes. o ADU is located within an architecturally and historically significant district. Currently, no such district exists in the City. o When on -street parking permits are required but not offered to the occupant of the ADU. o When there is a car -share vehicle located within one block of the accessory dwelling unit. In order to prevent car -sharing applications that allow individuals to rent personal vehicles to qualify, "Car -share vehicle" will be defined to mean part of an established program intended to stay in a fixed location for at least 10 years and available to the public. • If an accessory dwelling unit replaces an existing garage, replacement spaces must be provided. When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an accessory dwelling unit, any required replacement spaces may be located in any configuration on the same lot as the accessory dwelling unit, including but not limited to, as covered spaces, uncovered spaces, or tandem spaces, or by the use of mechanical automobile parking lifts. Conversion of Space- Applicability The intent of the law's minimal standards relating to ADUs converted from within an existing single-family residence or accessory structure is to streamline and expand the potential for ADUs where the visual impact is minimal and the existing footprint is not increased. However, to ensure that homeowners are not intentionally avoiding the standards applicable to ADUs involving new construction, such as lot size, unit size, or parking, the draft ordinance requires that the portion of the dwelling or structure to be converted must have been legally permitted and existing for a minimum of three years. This would prevent a homeowner from securing building permits for a large pool house, or similar structure, and then immediately converting the space into an ADU. Short -Term Lodging The draft ordinance would prohibit the rental of ADUs for a period of less than 30 days, consistent with the City's prohibition of short-term lodging in single-family residential zones. 19-51 Owner -Occupancy The draft ordinance would require that either the principal dwelling or the ADU be occupied by at least one person having an ownership interest in the lot. This would ensure that the property is being used consistent with the purpose and intent of the law and does not effectively become a duplex for rental purposes. Deed Restriction The draft ordinance would require that prior to the issuance of permit for an ADU, a deed restriction be recorded to notify future owners of the owner occupancy requirements and the restrictions on short-term lodging. The deed restriction would remain in effect as long as the ADU exists on the property. 19-52 ATTACHMENT 1 Redline changes of Zoning Code revisions 19-53 Redline Changes of Zoning Code Amendment No. CA2017-003 Section 1: Newport Beach Municipal Code (NBMC) Subsection 20.18.010(A) and (B) are amended to read as follows: A. R -A (Residential -Agricultural) Zoning District. The R -A zoning district is intended to provide for areas appropriate for detached single-family residential dwelling units, accessory dwelling units, and light farming uses, each located on a single legal lot; B. R-1 (Single -Unit Residential) Zoning District. The R-1 zoning district is intended to provide for areas appropriate for a range of detached single-family residential dwelling units and accessory dwelling units; each located on a single legal lot, and does not include condominiums or cooperative housing. Section 2: Table 2-1 in NBMC Section 20.18.020(C) (Allowed Uses and Permit Requirements) is amended, in part to the Accessory Dwelling Units" row as follows: Accessory Dwelling Units MUP P MUP P ___ ___ Section 20.48.200 Section 3: Table 2-2 in NBMC Section 20.18.030 (Development Standards for Single - Unit Residential Zoning Districts) is amended, in part, as to the "Density/Intensity" row as follows: Density/Intensity Each legal lot shall be allowed one single -unit detached dwelling. In addition, one accessory dwelling unit may be allowed pursuant to Section 20.48.200. Section 4: NBMC Subsection 20.30.110(D) (Allowed Encroachments into Setback Areas) is amended to add subpart 16 to read as follows: 16. Accessory Dwelling Units. Accessory dwelling units may be established within required setback areas in compliance with the requirements of Section 20.48.200 (Accessory Dwellina Units). Section 5: Table 3-10 in NBMC Section 20.40.040 (Off -Street Parking Requirements) is amended, in part, as to the "Accessory Dwelling Units" row as follows: Accessory Dwelling Units 19-54 Section 6: NBMC Section 20.48.200 (Senior Accessory Dwelling Units) is amended in its entirety to read as follows: 20.48.200 Accessory Dwellina Units A. Purpose. The purpose of this Section is to establish the procedures for the creation of accessory dwelling units as defined in Part 7 (Definitions) and in the California Government Code Section 65852.2, or any successor statute, in single -unit residential zoning districts or areas designated for single-family residential use as part of a Planned Community Development Plan or Specific Plan, and to provide development standards to ensure the orderlv development of these units in appropriate areas of the City. B. Review Authority. Accessory dwelling units shall be approved in all single -unit residential zoning districts subject to the approval of the Director upon finding that the followina conditions have been met: 1. The dwelling conforms to the development standards and requirements for accessory dwellina units established in the subsections below. 2. Public and utility services including emergency access are adequate to serve both dwellings. C. Development standards. Except as modified by this subsection. an acce dwelling unit shall conform to all requirements of the underlying residential zoning district, any applicable overlay district, and all other applicable provisions of this Code, including but not limited to height, setback, site coverage, floor area limit, and residential development standards and design criteria; unless the unit is contained within a legal, nonconforming structure and does not expand the nonconformity. 1. Minimum lot area. A minimum lot area of five thousand (5.000) sauare feet excluding submerged land area, shall be required in order to establish an accessory dwellina unit. 2. Setback requirements. Accessory dwelling units shall comply with the setback reauirements apDlicable to the zonina district in which thev are located. exceat 19-55 in cases where the minimum reauired aaraae setbacks differ from principal building setbacks, in which case the following applies: a. No additional setback shall be reauired for an existina aaraae that is converted to an accessory dwelling unit, provided that the side and rear setbacks comDly with reauired Buildina Codes. b. A setback of no more than five feet from the side and rear lot lines shall be reauired for an accessory dwellina unit constructed above the garage. 3. Building height. Detached accessory dwelling units shall not exceed one story and a height of 14 feet, unless the accessory dwelling unit is constructed above a aaraae, in which case the structure shall comply with the heiaht limits of the underlying zoning district. 4. Unit size. The maximum size of an accessory dwellina unit shall not exceed a 750 square feet of floor area, or 50 percent of the existing floor area (excluding garage) of the principal unit, whichever is less. 5. Design. An accessory dwelling unit shall be similar to the principal dwelling with resaect to architectural stvle, roof Ditch, color, and materials. 6. Conversion of space within existing structure. Notwithstanding the provisions of subsections C(1), C(2), C(3), C(4) and C(5) above, an accessory dwelling unit shall be permitted if the unit is contained within the existing space of a single -unit dwelling or existing accessory structure, has independent exterior access from the existing dwelling, and the side and rear setbacks comply with required Building Codes, and if the accessory dwelling unit conforms with the following: a. For the purposes of this section, the portion of the single -unit dwelling or accessory structure must have been legally permitted and existing for a minimum of three years prior to the issuance of a permit to convert the space into an accessory dwellina unit. b. No new or separate utility connection may be required between the accessory dwellina unit and the utilitv service, such as water, sewer. and power. 7. Fire sprinklers. Accessory dwelling units shall not be required to provide fire sprinklers if they are not required for the principal residence. 8. Passageway. No passageway shall be required in conjunction with the construction of an accessory dwelling unit. For the purposes of this section, 19-56 "aassaaewav" means a oathwav that is unobstructed clear to the skv and extends from the street to one entrance of the accessory dwelling unit. 9. Parkina. Parkina shall comaly with reauirements of Chapter 20.40 (Off -Street Parking), except as modified below: 1. a. One parking space required for one -bedroom or efficiency unit; two parking spaces required for unit with two or more bedrooms. b. Such parking may be provided as tandem parking and/or may be located on an existing driveway; however, in no case shall parking be allowed in a rear setback abuttina an allev. c. No aarkina shall be reauired for: i. Accessory dwelling unit converted as part of the existing principal residence or existing accessory structure as described in subsection (C)5. ii. Accessory dwelling units located within one-half mile of a public transit. For the purposes of this section "public transit" shall include a bus stop with fixed route bus service that provides transit service at 15 -minute intervals or better during peak commute periods. iii. Accessory dwelling unit is located within an architecturally and historically sianificant district. iv. When on -street parking permits are required but not offered to the occupant of the accessory dwellina unit. v. When there is a car -share vehicle located within one block of the accessory dwelling unit. For the purposes of this section, "car - share vehicle" shall mean part of an established program intended to stav in a fixed location for at least 10 vears and available to the aublic. d. If an accessory dwelling unit replaces an existing garage, replacement spaces must be provided. When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an accessory dwelling unit, any required replacement spaces may be located in any configuration on the same lot as the accessory dwelling 19-57 unit. includina but not limited to, as covered spaces, uncovered spaces or tandem spaces, or by the use of mechanical automobile parking lifts. D. Additional reauirements for all accessory dwellina units. 1. Sale of units. The accessory dwelling unit shall not be sold separately from the principal dwelling_ 2. Short-term lodaina. The accessory dwellina unit shall not be rented for periods of less than 30 days. 3. Number of units allowed. Only one accessory dwellina unit may be located on the lot. 4. Existing development. A single -unit dwelling must exist on the lot or shall be constructed on the lot in conjunction with the construction of the accessory dwelling unit. 5. Occupancy. The principal dwelling unit or the accessory dwelling unit shall be continuously occuaied by at least one person havina an ownership interest in the lot. E. Deed restriction and recordation required. Prior to the issuance of a Building and/or Grading Permit for an accessory dwelling unit, the property owner shall record a deed restriction with the County Recorder's Office, the form and content of which is satisfactory to the City Attorney. The deed restriction document shall notify future owners of the owner occupancy requirements and restrictions on short-term rentals. This deed restriction shall remain in effect so Iona as the accessory dwelling unit exists on the property. Section 7: The definition of "Accessory Dwelling Unit (Land Use) in NBMC Section 20.70.020 (Definition of Specialized Terms and Phrases) is amended to read as follows: Accessory Dwelling Unit (Land Use). See "Dwelling Unit, Sen+er Accessory." Section 8: The definition of "Dwelling Unit, Senior Accessory (Land Use) in NBMC Section 20.70.020 (Definition of Specialized Terms and Phrases) is amended to read as follows �1A111f1:�:■■1:fE��r1'1i��11�1:1:■■1�1�MOM lk 10 19-58 Dwelling Unit, Accessory (Land Use). A dwelling unit accessory to and attached to, detached from, or contained within, the principal dwelling unit on a site zoned for a single- family dwelling. An accessory dwelling unit also includes the following: 1. An efficiency unit, as defined in Section 17958.1 of the Health and Safety Code, or anv successor statute. 2. A manufactured home, as defined in Section 18007 of the Health and Safetv Code or any successor statute. Section 9: Subpart 8 in NBMC Subsection 20.90.060(D) (Accessory Uses Permitted) is amended to read as follows: . Ms.7.T.I�M •- -- .. .. 8. Accessory dwelling unit in conformance with Section 20.48.200. Section 10: Subpart 8 in NBMC Subsection 20.90.070(D) (Accessory Uses Permitted) is amended to read as follows: 8. Accessory dwelling unit in conformance with Section 20.48.200. Section 11: Subpart 8 in NBMC Subsection 20.90.080(D) (Accessory Uses Permitted) is amended to read as follows: • ..• .. Man 8. Accessory dwelling unit in conformance with Section 20.48.200. 19-59 ATTACHMENT 2 Map of eligible single-family residential zoning districts 19-60 3 ZEN � 51N r op ' M1 HARBOR PENINSULA SLANG NE�p %O— °ar LIDO BAY La No - ISLE Isr-ANo NPSPORT R , f= PACIFIC OCEAN UPPER NEWPORT BAY lie aQ � 'z W BALBOA ISLAND ONANNEL '1�\BA STo( Cr Q 1 FASHION ISLAND 00 S W 3 r \ s N olEco cREerc nv� Single -Family Residential Zoned Lots _ I S Eligible for Accessory Dwelling Unit Conversion CA MSE° NaREs Planned Communities - Single -Family Equivalent Lots 7,480 total lots Conventional Zoning - R -A; R-1; R-1-6000; R-1-7200; R-1-10000; SP-7(Single-Family Lots) 11,350 total lots NEWPORT NAC.RVOIR, NEWPORT RIDGE R/0 F OR � F 1 COAST 1 CRYSTAL COVE STATE PARK ,/, NEWPORT I NEWPORT BEACH 0 O.s , City of Newport Beach .�-•/'� e Miles GIS Division April 06, 2017 19-61 ATTACHMENT 3 Map of eligible single-family residential zoned lots with conforming lots sizes and bus routes 19-62 N oRES i I ,3,H ST w6 I /�R�vEx �Eiiv I I Q�? AL RU � 1 �,• o � ■ ° i ASH a, s UPPER NEWPORT BAY f, 2 �Ra r� of a z \ s N o,Eco cxeerc ♦ + ♦ — { ourvEa FASHION <f� I ISLAND ° _ I HAISLAND ♦ PENIN ULA //I' W po s w h ♦♦� _ NE PCAr LIDO �s1Ax aIER r ��si••'■'r\� ISLE ISLANNEW—D Aa� •� Q \� - BA LBOA ISLAND P,ER PACIFIC OCEAN` Single -Family Residential Zoned Lots 5,000 sf or Greater"E°GE °R°HA Eligible for Accessory Dwelling Unit New Construction CAMEO SHORES Planned Communities - Single -Family Equivalent Lots 6,299 eligible lots out of 7,480 total lots 84% Conventional Zoning - R -A; R-1; R-1-6000; R-1-7200; R-1-10000; SP-7(Single-Family Lots) 6,827 eligible lots out of 11,350 total lots 60% -1 ■ ■ 1 BUS ROUTE 47 ■ ■ ■ 1 BUS ROUTE 55 *Transit service at 15 minute intervals or better during peak commute periods NEWPORT SAN NEWPORT RIDGE Ro e� OR oP i COAST r� 1 CRYSTAL COVE STATE PARK ,/, NEWPORT a F O U � I on��P NEWPORT BEACH o D.s , City of Newport Beach Miles GIS Division April 06, 2017 19-63