HomeMy WebLinkAboutItem 11b - Amending Municode Relating to Urban Lot Splits
DATE: July 19, 2022
TO: Honorable Mayor and City Council
FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director
Lisa Flores, Planning & Community Development Administrator
Prepared By: Fiona Graham, Planning Services Manager
SUBJECT: ORDINANCE NO. 2388 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
TEXT AMENDMENT NO. TA 22-01 TO BE STATUTORILY EXEMPT
FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (“CEQA”)
Recommendation: Adopt
SUMMARY
At its regular meeting of June 21, 2022, the City Council introduced Ordinance No. 2388,
to amend Divisions 2 and 5 of Chapter 1, Article IX of the Arcadia Municipal Code related
to Urban Lot Splits and Two-Unit Projects. These changes to the Municipal Code are a
direct result of the adoption of Senate Bill 9 (SB 9), which allows urban lot splits and two-
unit projects in all single-family zoned areas. While the City opposed SB 9, adoption of
local regulations is now necessary to protect Arcadia’s interests to the extent possible.
The Ordinance was unanimously approved by the City Council – refer to Attachment No.
1 for the final draft of the text amendment under Ordinance No. 2388.
RECOMMENDATION
It is recommended that the City Council adopt Ordinance No. 2388, approving Text
Amendment No. TA 22-01 amending Divisions 2 and 5 of Chapter 1, Article IX of the
Arcadia Municipal Code related to Urban Lot Splits and Two-Unit Projects with a
Statutorily Exemption from the California Environmental Quality Act (“CEQA”).
Adoption of Ordinance No. 2388 – TA 22-01
July 19, 2022
Page 2 of 2
Attachment No. 1: Ordinance No. 2388
Attachment No. 2: City Council Staff Report (with no attachments), dated June 21, 2022
DATE: June 21, 2022
TO: Honorable Mayor and City Council
FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director
Lisa Flores, Planning & Community Development Administrator
Prepared By: Fiona Graham, Planning Services Manager
SUBJECT: ORDINANCE NO. 2388 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
TEXT AMENDMENT NO. TA 22-01 TO BE STATUTORILY EXEMPT
FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (“CEQA”)
Recommendation: Introduce
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 went into effect on January 1, 2022.
Because the new law dramatically changes how development can occur in single -family
zones, an Urgency Ordinance (Ordinance No. 2385) to regulate SB 9 developments was
adopted by the City Council on December 21, 2021, which went into effect on January 1,
2022. A text amendment (TA 22-01) is now being put forth to formalize the regulations
and process for urban lot splits and two-unit projects. As such, it is recommended that the
City Council Introduce Ordinance No. 2388 (Attachment No. 1) and determine that Text
Amendment No. TA 22-01 is statutory exempt from the California Environmental Quality
Act (“CEQA”).
BACKGROUND
On December 7, 2020, State Senators Atkins, Caballero, Rubio, and Wiener introduced
SB 9, to require local governments to ministerially approve housing developments
containing two units and urban lot splits in single-family residential zones. This essentially
allows, by right, up to four units where a single home exists today. On February 22, 2021,
Ordinance No. 2388 – TA 22-01
Urban Lot Splits and Two-Unit Projects (SB 9)
June 21, 2022
Page 2 of 7
the City submitted a letter to the California State Senate opposing 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.
The Development Services Department worked with the City Attorney to develop
regulations that complied with 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.
The City Council adopted Urgency Ordinance No. 2385 on December 21, 2021, to ensure
regulations and objective development standards were in place on January 1, 2022, when
SB 9 went into effect. Since the new law went into effect, staff has received multiple
inquiries from the public about SB 9; however no applications have been received to date.
DISCUSSION
SB 9 requires 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 also overrides the City’s minimum
setback requirements and requires 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 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
requirement1.
SB 9 also requires 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 are
eligible to be subdivided into two separate parcels. Each of the new parcel s 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
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.
Ordinance No. 2388 – TA 22-01
Urban Lot Splits and Two-Unit Projects (SB 9)
June 21, 2022
Page 3 of 7
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 u nder the provisions of this bill for three
(3) years after the approval of an urban lot split, or that the applicant must be a qualified
nonprofit corporation.
The attached text amendment is structured to carry over the regulations that are already
in place – refer to Attachment No. 1. Because the process is ministerial, the text
amendment is very clear in what it does and does not permit. Since design guidelines are
not permissible in this process, the existing “Objective Development Standards” that were
approved under the Urgency Ordinance are being carried over under this text
amendment.
Below are the primary tenets of the text amendment that was approved under the Urgency
Ordinance and currently in effect. For the full text of the regulations, pleas e refer to
Attachment No. 1, Exhibit “A” of the Resolution.
• The regulations were divided into two sections, one specifically dealing with Urban
Lot Splits and one for Two-Unit Projects. Fees for Urban Lot Splits were approved
by the City Council at $1,770 and $1,617 for Two-Unit Projects.
• 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.
• 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.
• 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.
Ordinance No. 2388 – TA 22-01
Urban Lot Splits and Two-Unit Projects (SB 9)
June 21, 2022
Page 4 of 7
• 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 (3)
years after the units are completed.
This text amendment is very similar to Urgency Ordinance No. 2385 that was adopted by
the City Council on December 21, 2021. There is one minor change being proposed: to
amend one of the objective development standards that relates to front yard fencing/walls
between properties created via an Urban Lot Split. Urgency Ordinance No. 2385 required
a new perimeter wall or fence along all new property lines created through an Urban Lot
Split. Ordinance No. 2388 clarifies that the requirement for a new perimeter wall or fence
does not apply to the front yard area.
PLANNING COMMISSION
This text amendment was presented to the Planning Commission at their regular meeting
on May 24, 2022, for their consideration and recommendation to the City Council - refer
to Attachment No. 2 for Planning Commission Staff Report, dated May 24, 2022, and
Attachment No. 3 for the Planning Commission Minutes, dated May 24, 2022. There were
no comments or concerns from the public. After discussion, the Planning Commission
voted unanimously to recommend approval of the text amendment to the City Council.
FINDINGS
Pursuant to Section 9108.03.060, an amendment to the Development Code may be
approved only if all of the following findings are made:
1. The proposed Development Code amendment is consistent with the goals,
policies, and objectives [of] the General Plan; and any applicable specific
plan(s);
Facts to Support the Finding: The proposed Text Amendment No. TA 22-01 is
consistent with the General Plan Land Use Element and Housing Element goals and
policies. SB 9 projects are residential land uses permitted in Single Family Zoned
properties. The Amendment ensures that the Development Code will comply with
State law and that the City will retain the ability to regulate certain aspects of SB 9
projects, such as subdividing lines, building height, location and design, to ensure
neighborhood compatibility, which is consistent with the following General Plan
Policies:
Land Use and Community Development Element
• Policy LU-3: Preservation and enhancement of Arcadia’s single-family
neighborhoods, which are an essential part of the City’s core identity.
Ordinance No. 2388 – TA 22-01
Urban Lot Splits and Two-Unit Projects (SB 9)
June 21, 2022
Page 5 of 7
• Policy LU-3.4: Strengthen neighborhood identity with new development that is
compatible with surrounding structures through scale, massing, and preferred
architectural style.
• Policy LU-3.5: Require that new construction, additions, renovations, and infill
developments be sensitive to neighborhood context, building forms, scale, and
colors. The proposed amendments also regulate SB 9 projects, which can
contribute to the overall variety of available housing choices in Arcadia.
Housing Element
• Policy H-2.4: Maintain development standards, regulations, and design features
that are flexible to provide a variety of housing types and facilitate housing that is
appropriate for the neighborhoods in which they are located.
• Policy H-4.1: Periodically review and modify as appropriate residential and mixed -
use development standards, regulations, and processing procedures that are
determined to constrain housing development, particularly housing for lower - and
moderate-income households and for persons with special needs.
• Policy H-4.3: Provide for streamlined, timely, and coordinated processing of
residential projects to minimize holding costs and encourage housing production.
The purpose of the proposed Text Amendment No. TA 22-01 is to comprehensively
respond to SB 9, which allows for two-unit projects and urban lot splits. The Text
Amendment will implement regulations allowing SB 9 projects while protecting the
existing character and aesthetics of the City’s single-family neighborhoods. This
amendment will not affect any other development standards and is consistent with
the adopted General Plan.
2. The proposed amendment is internally consistent with other applicable
provisions of this Development Code.
Facts to Support the Finding: The purpose of the proposed Text Amendment is to
adopt SB 9 regulations in the Development Code. The proposed Text Amendment
has been reviewed to ensure it is consistent with the other applicable provisions of
the Development Code. The proposed Amendment was reviewed by the City
Attorney for internal consistency to ensure that there are no conflicting standards or
uncertainties. The Text Amendment has been drafted with the intent that it will largely
stand alone for the purpose of regulating SB 9 projects only. As such, these
provisions will not be of effect for any non -SB 9 projects on Single Family Zoned
properties.
Ordinance No. 2388 – TA 22-01
Urban Lot Splits and Two-Unit Projects (SB 9)
June 21, 2022
Page 6 of 7
It is important to note that this ordinance conflicts with several long-established goals and
policies in the General Plan; however, in this instance, the need to comply with statewide
mandates supersedes those. In addition, a failure to establish reasonable local standards
would result in the City being subjected to the state’s default standards, which present
even greater conflicts with the General Plan’s tenets. Therefore, all required findings can
be made.
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 as the
ordinance implements these new laws enacted by SB 9. See Attachment No. 4 for the
Preliminary Exemption Assessment.
PUBLIC COMMENTS/NOTICE
The public hearing notice for this City Council meeting was published in the Arcadia
Weekly on June 9, 2022. As of June 16, 2022, staff did not receive any additional
concerns or comments from the public.
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
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 Introduce Ordinance No. 2388, 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 Text Amendment No. TA 22-01 to be
Statutorily Exempt from the California Environmental Quality Act (“CEQA”).
Ordinance No. 2388 – TA 22-01
Urban Lot Splits and Two-Unit Projects (SB 9)
June 21, 2022
Page 7 of 7
Attachment No. 1: Ordinance No. 2388
(including full text amendments to Divisions 2 and 5)
Attachment No. 2: Planning Commission Resolution No. 2096 and Planning
Commission Staff Report dated May 24, 2022 (without the
attachments)
Attachment No. 3: Excerpt of Planning Commission Minutes, dated May 24, 2022
Attachment No. 4: Preliminary Exemption Assessment