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CC 2022-07-26_10a ADU PP Presentation Continued Study Session Accessory Dwelling Unit Ordinance 10/6/2022 1 Background & Purpose October 2019: Housing legislation amending Government Code Sections 65852.2 and 65852.22 was passed to streamline and encourage creation of ADUs Eliminates lot size requirements Reduces setbacks Increases the number of ADUs allowed on a single parcel Amendments would bring the City’s ordinance into compliance with state law 10/6/2022 2 Timeline Planning Commission August 3, 2021: Study Session Provided feedback on proposed amendments including architectural compatibility standards, design standards for THOW, and short term rentals August 17, 2021: Recommendation Hearing Recommended adoption of the amendments as proposed, with modifications to standards for attached outdoor living area and design standards for THOW Recommended prohibition of short-term rentals in all ADUs 10/6/2022 3 City Council February 8, 2022: Introduction of Ordinance Council directed staff to revise the ordinance and/or conduct follow-up research on the following items: Separate standards for THOW from ADU Ordinance Develop objective design standards to ensure ADU resembles primary Include a prohibition of rooftop decks Evaluate the feasibility of a fee waiver program Explore a pre-fabricated ADU program Include a prohibition on ADUs in front yard Research incentives for installation of solar panels on ADUs 10/6/2022 4 Tiny Homes on Wheels Previous version of draft ordinance included provisions for the installation of THOW as a type of ADU Council directed staff to extract standards for THOW from the ADU ordinance for separate consideration 10/6/2022 5 Objective Design Standards State law allows agencies to develop objective design standards for ADUs Objective standards are those that involve no personal or subjective judgment by a public official and are uniformly verifiable Council directed staff to include objective design standards to ensure ADUs are compatible with the existing primary dwelling on a property 10/6/2022 6 Objective Design Standards To satisfy this direction, staff proposes the following design standards: The colors of a detached ADU must match the appearance and architectural design of those of the primary dwelling. If a garage is converted to an ADU, the garage door opening shall be replaced with materials to match the existing siding of the primary ADUs created under the By-Right provisions, pre-approved plan program, and factory-built housing units are exempt from these standards 10/6/2022 7 Objective Design Standards ADUs proposed on properties in the D-2.4 Historic Overlay District shall also comply with the following standards: Second floor living area shall be setback 5 feet from ground floor footprint. Window sashes and doorframes shall be made of wood or vinyl that looks like wood. New or replacement doors shall be wood or an approved substitute material that simulates the appearance of original materials. The use of fluorescent "neon", "day-glo", or bright primary colors as the predominant shade on building facades is not permitted. 10/6/2022 8 Rooftop Decks Rooftop decks were discussed at the previous Council meeting Council’s directed staff to include a prohibition of rooftop decks for detached ADUs – Section D 10/6/2022 9 Fee Waiver Council directed staff to consider the implications of waiving permit fees for ADUs less than 500 sf Building permit fees for ADUs are dependent on whether the unit is created through the conversion of existing space or is a new build For a 500 square foot ADU, permit fees range from $1,627 (conversion) to $4,338 (new construction) 10/6/2022 10 Fee Waiver Between Jan 1, 2017 and June 1, 2022, 23 permits were issued for ADUs less than 500 sf (approx. 4/yr.) Waiving fees for these ADUs is may result in a decrease of revenue for CDD by $6,800 - $18,200 annually It is assumed that this amount would increase if the fee waiver program were implemented 10/6/2022 11 Fee Waiver Program Staff proposes a program that would waive permit fees for ADUs proposed at 500 square feet or less A property owner would agree to rent the ADU to a lower income household for 10 years Money from the Inclusionary Affordable Housing Trust Fund would be used to recoup the loss of revenue Consistent with intent of the Fund to increase the supply of affordable housing 10/6/2022 12 Pre-fabricated ADUs Draft ordinance identifies factory-built housing (FBH) as an allowed type of ADU FBH is defined by the State as “residential structures manufactured wholly or partially offsite, in sections, or in building components which are assembled at the installation site to form part of or most of a completed unit FBH units are reviewed and approved by a third-party 10/6/2022 13 Pre-fabricated ADUs The City may not require review of any FBH plans, require alterations to an approved FBH Allowing FBH as ADUs could accelerate ADU development due to reduced plan review and construction timelines 10/6/2022 14 Front Yard ADUs Consistent with Council direction, ADUs are only allowed when no feasible alternative exists Feasibility is determined by whether a By-Right ADU can be built in a rear yard “due to the presence of slope, existing easements, drainage features, and other structures or amenities” Staff recommends removal of “amenities” from this provision because it is more open to interpretation 10/6/2022 15 Solar Installations Council directed staff to research incentives for solar energy systems for ADUs New detached ADUs are subject to the Energy Code Requires solar panels on either the new ADU or primary unit on site ADUs created through the conversion of existing space do not require solar Federal tax credits are available for solar installations No additional solar requirements are proposed in the draft ordinance 10/6/2022 16 Next Steps Positive feedback from Council will allow staff to take the draft ordinance to PC for a recommendation hearing Return to Council for an introduction hearing upon receiving a recommendation from PC Regulations for THOW will return at a separate study session 10/6/2022 17