HomeMy WebLinkAboutItem 09a - Urgency Ordinance
DATE: December 21, 2021
TO: Honorable Mayor and City Council
FROM: Dominic Lazzaretto, City Manager
By: Jason Kruckeberg, Assistant City Manager/Development Services
Director
Lisa Flores, Planning & Community Development Administrator
SUBJECT: URGENCY ORDINANCE NO. 2385 AMENDING DIVISIONS 2 AND 5 OF
CHAPTER 1, ARTICLE IX, OF THE ARCADIA MUNICIPAL CODE
RELATED TO URBAN LOT SPLITS AND TWO-UNIT PROJECTS AND
DETERMINING THE ORDINANCE TO BE STATUTORILY EXEMPT
FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
Recommendation: Adopt
SUMMARY
Governor Newsom signed Senate Bill 9 – Housing Development: Approvals (“SB 9”) into
law on September 16, 2021. This bill was one of at least 31 bills signed by the Governor
related to housing during this past legislative session. Among other provisions, SB 9
requires local governments to ministerially approve housing developments containing two
residential units on single-family zoned parcels, and to ministerially approve subdivisions
of single-family zoned parcels into two parcels. SB 9 goes into effect on January 1, 2022.
Because the new law dramatically changes how development can occur in single-family
zones, the Development Services Department has been working with the City Attorney to
develop an Urgency Ordinance to put allowable regulations in place related to SB 9 prior
to the effective date of January 1. It is recommended that the City Council adopt Urgency
Ordinance No. 2385 related to urban lot splits and two-unit projects and determine the
project to be statutorily exempt from the California Environmental Quality Act (“CEQA”).
BACKGROUND
On December 7, 2020, State Senators Atkins, Caballero, Rubio, and Wiener introduced
SB 9, which would require local governments to ministerially approve housing
developments containing two units and urban lot splits in single-family residential zones.
This would essentially allow, by right, up to four units where a single home exists today.
On February 22, 2021, the City submitted a letter to the California State Senate opposing
Urgency Ordinance No. 2385
Urban Lot Splits and Two-Unit Projects (SB 9)
December 21, 2021
Page 2 of 5
SB 9 unless amended to address items in the bill that would undermine local control.
Subsequently, at the August 17, 2021, regular meeting, the City Council approved a
Resolution opposing both Senate Bills 9 and 10 prior to these two bills being considered
during the fall legislative session. The City also signed letters of opposition from the San
Gabriel Valley Council of Governments. Despite these efforts, and the opposition of many
other cities and jurisdictions throughout the State, SB 9 was signed into law on September
16, 2021.
Since that time, the Development Services Department has been working with the City
Attorney to react to the new rules within SB 9. While the law requires urban lot splits and
two-unit projects in single-family areas to be approved ministerially, it also allows cities to
establish objective development standards to regulate new projects that fall under SB 9
processes. Unfortunately, this does not allow the City’s current design review process,
utilized by both the Planning Division and Architectural Review Boards within the City’s
five Homeowners’ Associations because design review is a discretionary action and is
not ministerial. Despite this, the law does allow some regulatory control of new projects.
An Urgency Ordinance is necessary to enable the City to put standards in place to react
to SB 9 applications as of January 1. In the absence of such standards, all developments
under the SB 9 banner would be allowed by right with little to no oversight. To this end,
the Development Services Department has been contacted by many individuals
interested in building under the new law. It is anticipated that a regular Ordinance will
likely follow Urgency Ordinance No. 2385 early in 2022. Much is not known regarding
how cities (and residents and homeowners) will react to SB 9 and what elements of the
new law may change, be re-legislated, or be litigated. As such, it is advisable to adopt an
Urgency Ordinance now to allow the City to adequately react to newly submitted projects.
DISCUSSION
SB 9 would require local governments to ministerially approve two-unit residential
developments on any single-family zoned lot of at least 2,400 square feet, which is
virtually every single-family zoned lot in the City. SB 9 would also override the City’s
minimum setback requirements and require only a four-foot side-yard and rear-yard
setback when it can be shown that a greater setback would prohibit the reasonable
development of two residential units, each with a minimum area of 800 square feet. SB
9 also specifies that a maximum of one off-street parking space may be required for each
new residential unit. However, for parcels located within one-half mile of a high-quality
transit corridor or a major transit stop, no parking spaces may be required by the City as
a development requirement 1.
1 A high-quality transit corridor is defined as one with fixed route bus service with service intervals no longer than
15 minutes during peak commute hours. A major transit stop is defined as an existing rail or bus rapid transit station.
Urgency Ordinance No. 2385
Urban Lot Splits and Two-Unit Projects (SB 9)
December 21, 2021
Page 3 of 5
SB 9 would also require the City to ministerially approve any request to subdivide a single-
family zoned property into two separate parcels, provided that each new parcel is not less
than 1,200 square feet in area and contains not less than 40% of the original parcel area.
Given that most single-family residential properties in the City meet these minimum
subdivision requirements, under SB 9 most of Arcadia’s single-family properties would be
eligible to be subdivided into two separate parcels. Each of the new parcels could then
be developed individually with two residential units resulting in a total of four units on each
qualifying single-family property. As ministerial actions, both the subdivision and the two-
unit residential developments would be exempt from CEQA review.
SB 9 does include a provision stating that local governments are not required to permit
an accessory dwelling unit or junior accessory dwelling unit on any new parcel created
under the SB 9 subdivision authority which is then developed with two residential units.
There is also a provision in SB 9 that allows a local government to impose an owner
occupancy requirement on an applicant for an urban lot split. Specifically, it states that
the applicant must intend to occupy one of the units created under the provisions of this
bill for three years after the approval of an urban lot split, or that the applicant must be a
qualified nonprofit corporation.
The attached Urgency Ordinance is structured to provide regulations that address the
new law while at the same time providing safeguards and balance to the process.
Because the process is to be ministerial, the Ordinance is very clear in what it does and
does not permit. Since design guidelines are not permissible in this process, a set of
“Objective Development Standards” has been added to provide surety for developers and
staff members alike.
Below are the primary tenets of the Ordinance. For the full text of the new regulations,
please see Exhibit “A” to the Urgency Ordinance, included in the attachments.
• The regulations are divided into two sections, one specifically dealing with Urban
Lot Splits and one for Two-Unit Projects. Fees for Urban Lot Splits will be set at
the same cost as Lot Line Adjustments ($1,770) and fees for Two-Unit Projects will
be set at the same cost as Preliminary Plan Review for Multi-Family Projects
($1,617). The costs of these processes are very similar in scope and effort and
these two existing processes.
• Urban lot splits will not be allowed in areas that are not zoned Single-Family
Residential, are in a historic district, have an impact on protected housing (such as
existing low-income housing or will impact existing tenants), or result in a lot that
contains more than 60% of the frontage or area of the original lot or less than 40%
of the frontage or area of the original lot.
Urgency Ordinance No. 2385
Urban Lot Splits and Two-Unit Projects (SB 9)
December 21, 2021
Page 4 of 5
• The allowable unit size of a unit built following an Urban Lot Split OR for units built
as a second unit of a two-unit project is no greater than 800 square feet. This is
the size of unit that is specifically mentioned in the text of SB 9.
• All new units are subject to height, setback, lot coverage, floor area ratio, and
parking requirements within the Code as well as objective development standards
related to architecture and appearance, landscaping, fences and walls, and
parking. All of these standards are enforceable to the extent they do not prevent
the development of two 800 square foot units on a qualifying lot. In a case where
an 800 square foot unit cannot be built, the standards must yield to the extent that
the unit could be built.
• Units created through these processes may not be used for commercial purposes
or used as short-term rentals, and owners must live on the property for three years
after the units are completed.
As mentioned above, a regular Ordinance will be developed and presented to the City
Council in the upcoming months. Since the law was written with some very vague
components, it is anticipated that the trailing regular Ordinance will include additional
“clean-up” language as necessary as well as any best practices gleaned from
implementation of the new law. One of these issues is how to deal with extremely deep
lots such as the various horse properties in Arcadia. The City Council discussed this issue
and agreed it would likely be better to allow flag lots for these very deep parcels as
opposed to Urban Lot Splits that would create awkward, long, narrow lots. In these
situations, a flag lot may create a better streetscape and development pattern. However,
there are many ramifications for lots throughout Arcadia in allowing flag lots and this is an
issue that needs careful study and review to develop an adequate regulatory structure.
As such, this issue will be returned to the City Council at a later date. It is recommended
to adopt the Urgency Ordinance now, to put the requisite rules in place.
ENVIRONMENTAL ANALYSIS
Under California Government Code Sections 65852.21(j), and 66411.7(n), the adoption
of an ordinance by a city or county implementing the provisions of Government Code
Sections 66411.7 and 65852.21 and regulating urban lot splits and two-unit projects is
statutorily exempt from the requirements of the California Environmental Quality Act
(“CEQA”). Therefore, the proposed ordinance is statutorily exempt from CEQA in that the
proposed ordinance implements these new laws enacted by SB 9.
FISCAL IMPACT
The financial impacts to the City, if any, are unknown at this time. While additional
development may result in increased property taxes, it is not known if those increases
Urgency Ordinance No. 2385
Urban Lot Splits and Two-Unit Projects (SB 9)
December 21, 2021
Page 5 of 5
would be offset by additional service costs or other impacts to the community from an
increased density that is not fully studied prior to approval.
RECOMMENDATION
It is recommended that the City Council Adopt Urgency Ordinance No. 2385, amending
Divisions 2 and 5 of Chapter 1, Article IX of the Arcadia Municipal Code related to Urban
Lot Splits and Two-Unit Projects and Determine the Ordinance to be Statutorily Exempt
from the California Environmental Quality Act.
Attachment: Urgency Ordinance No. 2385 (including full text amendments to Divisions
2 and 5)