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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