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2022 PC 29-22 NEIGHBORHOOD PRESERVATION OVERLAYORDINANCE NEIGHBORHOOD PRESERVATION OVERLAY DISTRICT RESOLUTION NO. PC 29-22 A RESOLUTION OF THE PLANNING COMMISSION RECOMMENDING CITY COUNCIL ADOPT AN ORDINANCE AMENDING TITLE 17 OF THE ORANGE MUNICIPAL CODE (ZONING) TO ESTABLISH A NEIGHBORHOOD PRESERVATION OVERLAY DISTRICT AND RELATED DEVELOPMENT STANDARDS FOR PROJECTS ADDING BEDROOMS OR BATHROOMS TO A PRIMARY RESIDENCE IN THE AREA BOUNDED BY KATELLA AVENUE TO THE NORTH, MAIN STREET TO THE WEST, SR 55 TO THE EAST, AND SR 22/FAIRHAVEN AVENUE TO THE SOUTH APPLICANT: CITY OF ORANGE Moved by Commissioner Glasgow and seconded by Commissioner Simpson that the following Resolution be adopted: WHEREAS, in the past two years, the City has seen numerous applications for additions or interior renovations to single-family dwellings (primary residences) in which several bedrooms and bathrooms are added, many with exterior doors and wet bars in each bedroom, in some cases transforming two or three bedroom homes into seven or eight bedroom and bathroom structures; and WHEREAS, on February 16, 2021, the City Council adopted interim Ordinance No. 02- 21, prohibiting the addition of three or more bedrooms or three or more bathrooms to a primary residence use on lots less than 12,000 square feet, and adding or revising certain related definitions; on March 23, 2021, the City Council extended interim Ordinance No. 02-21-A until February 15, 2022; and on February 8, 2022, the City Council extended interim Ordinance No. 02-21-B until February 15, 2023; and 4 WHEREAS, a permanent Neighborhood Preservation Overlay District Ordinance is necessary because Urgency Ordinance No. 02-21 will expire in February; and WHEREAS, the area within the City where bedroom and bathroom additions are most concentrated and contribute to negative impacts, is defined as the area bounded by Katella Avenue to the north, Main Street to the west, SR-55 to the east, and SR-22 to the south; and WHEREAS, the proposed Ordinance adds Section 17.28.08 to Title 17 of the Orange Municipal Code (OMC) with the purpose of controlling surges in construction of new additions and interior renovations to single-family dwellings (primary residences) concentrated in the Neighborhood Preservation Overlay District that are promoted as multiple tenant rental properties, which have resulted in adverse impacts to single-family neighborhoods; and Resolution No. PC 29-22 Page 2 of 4 WHEREAS, regulations are as set forth in proposed Ordinance No. 10-22 provided as Attachment 1 to this Resolution; and WHEREAS, Ordinance No. 10-22 is necessary to achieve the goals and policies of the General Plan Land Use Element for balancing economic gains from new development while preserving the character and densities of residential neighborhoods, minimizing effects of new development on the privacy and character of surrounding neighborhoods, preserving historic resources, both individual and cumulatively in neighborhoods, and ensuring contextually appropriate infill development that contributes positively to the quality of the surrounding neighborhood; and WHEREAS, the Planning Commission, having considered Ordinance No. 10-22, provided as Attachment 1 to this Resolution, at a public hearing held on November 7, 2022, including review of the staff report, and any public comments on the item, has determined Ordinance No. 10-22 is justified and recommends approval thereof. NOW, THEREFORE, BE IT RESOLVED that the Planning Commission recommends that the City Council approve the Neighborhood Preservation Overlay District Ordinance No. 10- 22 shown as Attachment 1, attached hereto, based on the following finding: SECTION 1- FINDINGS The proposed Ordinance No. 10-22 adds provisions to the OMC in support of the goals and policies outlined in the General Plan. Specific General Plan goal and policy -related accomplishments of the Neighborhood Preservation Overlay District include: balancing economic gains from new development while preserving the character and densities of residential neighborhoods, minimizing effects of new development on the privacy and character of surrounding neighborhoods, preserving historic resources, both individual and cumulatively in neighborhoods, and ensuring contextually appropriate infill development that contributes positively to the quality of the surrounding neighborhood. SECTION 2-ENVIRONMENTAL REVIEW The proposed project is not subject to the provisions of the California Environmental Quality Act (CEQA) pursuant to (1) Section 15061(b)(3) of the state CEQA Guidelines (Common Sense Exemption) because it can be seen with certainty that there is no possibility that it would have a significant effect on the environment; and (2) Section 15378 because it will not have a direct or reasonably foreseeable indirect physical change on the environment and is not a "project." For this reason, no further CEQA documentation is required. Resolution No. PC 29-22 Page 3 of 4 I hereby certify that the Planning Commission of the City of Orange adopted the foregoing Resolution on November 7, 2022, by the following vote: AYES: Glasgow, Martinez, Simpson, Trapesonian and Vazquez NOES: None ABSTAIN: None ABSENT: None David Vazquez, Planning Commission Chair Date Resolution No. PC 29-22 Page 4 of 4 Attachment 1 See next page ORDINANCE NO. 10-22 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ORANGE CREATING THE NEIGHBORHOOD PRESERVATION OVERLAY ZONE; PROVIDING DEVELOPMENT STANDARDS TO REGULATE THE ADDITION OF BEDROOMS OR BATHROOMS TO A PRIMARY RESIDENCE WITHIN SPECIFIED BOUNDARIES; REVISING OR ADDING DEFINITIONS PERTAINING TO RESIDENTIAL ADDITIONS AND STUDENT HOUSING; AND UPDATING PROVISIONS FOR REVIEWING BODY APPROVAL OF SPECIFIED MATTERS. WHEREAS, the City Council of the City of Orange, pursuant to its police powers afforded under the California Constitution, Article XI, Section 7, California Government Code 37100, et seq., may adopt regulations to protect the peace, health, safety and welfare of the community, and may declare that certain uses and conditions constitute a public nuisance; and WHEREAS, California Government Code 38771 authorizes the City, through its legislative body, to declare actions and activities that constitute a public nuisance in its community; and WHEREAS, the City in general, and the neighborhoods in proximity to Chapman University in particular, have experienced a surge of construction activity and new applications for additions to and/or interior renovations to single-family dwellings (primary residences) in which numerous bedrooms and bathrooms are added, many with exterior doors and wet bars in each bedroom, in some cases transforming two or three bedroom homes into seven or eight bedroom and bathroom structures; and WHEREAS, the mansionization of former single-family dwellings has in many cases been promoted as "student housing properties," with the goal of "creating a student housing assemblage" on specific streets; and WHEREAS, those mansionized single-family dwellings already constructed have caused numerous deleterious effects on the families residing nearby, including parking on front lawns, illegal street parking, unsafe vehicle speed demonstrations, trampled landscaping, loud music, unruly parties, congregation of crowds from outside the neighborhoods in the front yards over and above the number of occupants, confrontational interactions with neighbors, public drinking, late night disturbances, litter including bottles and cups visible to the neighborhood, overflowing trash cans, police responses to resident complaints, party call prosecutions, and what has been described by neighbors as a "fraternity" atmosphere, all of which effects constitute a public nuisance to the community; and WHEREAS, on February 16, 2021, the City Council adopted interim Ordinance No. 02- 21, prohibiting the addition of three or more bedrooms or three or more bathrooms to a primary residence use on lots less than 12,000 square feet, and adding or revising certain related definitions; on March 23, 2021, the City Council extended interim Ordinance No. 02-21-A until February 15, 2022; and on February 8, 2022, the City Council extended interim Ordinance No. 02-21-B until February 15, 2023; and WHEREAS, since adoption of the interim Ordinance, the City has reviewed and studied the development standards contained in its Zoning Code to examine under what circumstances and to what extent primary residences may be expanded in the number of bedrooms and number of bathrooms, along with other remodeling development standards, in a manner that does not deteriorate the neighborhood character; and WHEREAS, the City has also studied the required procedure for evaluating applications for the expansion of single-family dwellings to determine the proper level of review required to protect the peace, health, safety and welfare of the neighborhood and the public at large and mitigate the specific adverse impacts; and WHEREAS, the City has also studied the definitions of bedroom, dormitory and student housing to achieve a fair balance between accommodation of property owners' rights and the negative effects of unregulated increases in bedrooms and bathrooms in single-family residential neighborhoods; and WHEREAS, the City has examined the areas within the City where the additional bedrooms and bathrooms have been most prevalent and contributed most of the detrimental effects; and WHEREAS, City staff has determined that an overlay zone applicable to that area of the City most prone to home expansions, and containing specific requirements for the addition of bedrooms and bathrooms, will provide clear and reasonable regulations allowing property owners to expand their residences while ensuring orderly growth and elimination of the known detrimental effects from mansionization; and WHEREAS, at a public hearing held on November 7, 2022, the City of Orange Planning Commission considered proposed Ordinance No. 10-22 and recommended approval of said Ordinance to the City Council; and WHEREAS, Ordinance No. 10-22 is necessary to achieve the goals and policies of the General Plan Land Use Element for balancing economic gains from new development while preserving the character and densities of residential neighborhoods, minimizing effects of new development on the privacy and character of surrounding neighborhoods, preserving historic resources, both individual and cumulatively in neighborhoods, and ensuring contextually appropriate infill development that contributes positively to the quality of the surrounding neighborhood. Ord. No. 10-22 2 MEB NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ORANGE DOES HEREBY ORDAIN AS FOLLOWS: SECTION I: This Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to (1) Section 15061(b)(3) of the state CEQA Guidelines (Common Sense Exemption) because it can be seen with certainty that there is no possibility that it would have a significant effect on the environment; and (2) Guideline Section 15378 because it will not have a direct or reasonably foreseeable indirect physical change on the environment and is not a "project." For this reason, no further CEQA documentation is required. SECTION II: The definition of "BATHROOM" is hereby added to Section 17.04.021 of the Orange Municipal Code, "Zoning — Definitions — `B" Definitions," to read as follows: BATHROOM, FULL and HALF - A full bathroom contains one bathtub, tub or shower compartment; one water closet or lavatory or other similar approved facilities, and up to two sinks. It includes a compartmented bathroom in which the fixtures are distributed among interconnected rooms. A half -bathroom omits a bathtub, tub, or shower compartment. SECTION III: The definition of "BEDROOM" in Section 17.04.021 of the Orange Municipal Code, "Zoning — Definitions — `B" Definitions," is hereby revised to read as follows: BEDROOM - Any habitable room in a dwelling unit other than a bathroom, kitchen, dining room or living room with the following features: an interior door that can be closed or an opening into the room in which an interior door or double door can be easily installed; a window; and a closet or room for a wardrobe in addition to a bed. SECTION IV: The definition of "DORMITORY" in Section 17.04.023 of the Orange Municipal Code, "Zoning — Definitions — "D" Definitions," is hereby revised to read as follows: DORMITORY, DORMITORY -STYLE HOUSING, See also STUDENT HOUSING — A structure used for group accommodations, containing a number of private or semiprivate bedrooms with or without a private bathroom, usually with common recreation and kitchen areas, primarily advertised to and exclusively occupied by students of a provider of higher education. A dormitory may be owned or operated by a university, college, or private owner. Ord. No. 10-22 3 MEB SECTION V: The definition of "LIVING AREA, COMMON" is hereby added to Section 17.04.031 of the Orange Municipal Code, "Zoning — Definitions — "L" Definitions," to read as follows: LIVING AREA, COMMON - The interior habitable area of a dwelling unit, other than the kitchen, bedrooms, bathrooms, utility rooms, garage, and basement, that is of sufficient size to be shared by all occupants of the dwelling unit with no other specific purpose other than shared gathering area. SECTION VI: The definition of "OPEN SPACE, USABLE" in Section 17.04.034 of the Orange Municipal Code, "Zoning — Definitions — "O" Definitions," is hereby revised to read as follows: OPEN SPACE, USABLE - Any space on a lot not enclosed by buildings and intended for recreation and leisure uses. Usable open space includes yards, courtyards, balconies, decks, porches, and patios but does not include front yard setbacks, driveways, parking spaces or side yards less than eight feet in width. In multiple -family developments, indoor recreation areas may count toward the usable open space requirement. SECTION VII: The definition of "STUDENT HOUSING" in Section 17.04.03 S of the Orange Municipal Code, "Zoning — Definitions — "S" Definitions," is hereby revised to read as follows: STUDENT HOUSING, See also DORMITORY, DORMITORY -STYLE HOUSING -- A structure designed, primarily advertised to and exclusively used for long-term stay by students of an educational facility for group accommodations usually with common recreation and kitchen areas, primarily advertised to and exclusively occupied by students of a provider of higher education. This may include a dormitory or fraternity/sorority house or apartment. Student housing may be owned or operated by a university, college, or private owner. SECTION VIII: Table 17.06.020 of the Orange Municipal Code, "Zoning — Zoning Districts and Map — Districts Established," is hereby revised to read as follows: Table 17.06.020 Use District Symbol Use Classification Chapter Rl-R Single Family Residential District 17.14 R1-40 Single -Family Residential District 17.14 Ord. No. 10-22 4 MEB R1-20 Single -Family Residential District 17.14 R1-15 Single -Family Residential District 17.14 R1-12 Single -Family Residential District 17.14 R1-10 Single -Family Residential District 17.14 R1-8 Single -Family Residential District 17.14 R1-7 Single -Family Residential District 17.14 R1-6 Single -Family Residential District 17.14 R1-5 Single -Family Residential District 17.14 R2-8 Duplex Residential District 17.14 R2-7 Duplex Residential District 17.14 R2-6 Duplex Residential District 17.14 R-3 Multiple -Family Residential District 17.14 R-4 Multiple -Family Residential District 17.14 MH Mobile Home Residential District 17.14 OP Office Professional District 17.18 CP Commercial Professional District 17.18 C 1 Limited Business District 17.18 C-TR Limited Business District -Tustin Redevelopment Project Area 17.18 C2 General Business District 17.18 C3 Commercial District 17.18 OTMU-15 S Old Towne Mixed Use District - 15 S 17.19 OTMU-15 Old Towne Mixed Use District - 15 DU/AC 17.19 OTMU-24 Old Towne Mixed Use District - 24 DU/AC 17.19 NMU-24 Neighborhood Mixed Use District - 24 DU/AC 17.19 UMU Urban Mixed Use District 17.19 M1 Light Industrial District 17.20 M2 Industrial Manufacturing District 17.20 SG Sand and Gravel Extraction District 17.32 A-1 Agricultural District 17.22 RO Recreation Open Space District 17.22 SH Slope Hazard District 17.22 PI Public Institution District 17.24 PC Planned Community District 17.26 FP Flood Plain Overlay District 17.28 A Single -Story Overlay District 17.28 E Equestrian Overlay District 17.28 P Parking Overlay District 17.28 NP Neighborhood Preservation Overlay District 17.28 PUD Planned Unit Development District 17.16 Ord. No. 10-22 5 MEB SECTION IX: Table 17.08.020 of the Orange Municipal Code, "Zoning — General Administrative Procedures — Reviewing Bodies," is hereby revised to add the following: Table 17.08.020 Type of Procedure, Permit or Hearing CDD DRC ZA PC CC Neighborhood Preservation Overlay Applications A/X(1) X(1) SECTION X: Subsections 17.08.020.D.2(f) and (g) are hereby added to Section 17.08.020 of the Orange Municipal Code, "Zoning — General Administrative Procedures — Reviewing Bodies — Design Review Committee — Powers and Duties," to read as follows: f. Make final determination on design review of applications for additional bedrooms or bathrooms in a historic district pursuant to Section 17.28.080.D. La. g. Review and make recommendations to the Zoning Administrator on applications for additional bedrooms or bathrooms in a historic district pursuant to Section 17.28.080.D. Lb. SECTION XI: Subsections 17.08.020.E.1 of the Orange Municipal Code, "Zoning — General Administrative Procedures — Reviewing Bodies — Community Development Director — Powers and Duties," is hereby revised to read as follows: 1. Powers and Duties. The Community Development Director, after consultation with appropriate staff as determined by the Director, shall have the authority to: SECTION XII: Subsections 17.08.020.E.1(i) through (m) are hereby added to Section 17.08.020 of the Orange Municipal Code, "Zoning — General Administrative Procedures — Reviewing Bodies — Community Development Director — Powers and Duties," to read as follows: i. Decide upon the conformity of unlisted uses to the zoning district and similar uses pursuant to Section 17.13.070. j . Decide upon applications to install walls and fences within 5 feet of one another pursuant to Section 17.12.070.A. La. k. Decide upon Neighborhood Preservation Overlay District applications pursuant to Section 17.28.080.C. Ord. No. 10-22 6 MEB 1. Decide upon deviations from required number of parking spaces for nonresidential land uses pursuant to Section 17.34.060. in. Decide upon parking requirements for uses not specified pursuant to Section 17.34.070. SECTION XIII: Section 17.14.280 is hereby added to the Orange Municipal Code, "Zoning — Residential Districts — Bedrooms," to read as follows: 17.14.280 Bedrooms A bedroom may not contain facilities for a sink, refrigerator or microwave, a kitchenette, or infrastructure that can be easily converted to a kitchenette, e.g., GFCI outlets. Unless otherwise approved by the Community Development Director or designee, a bedroom may not have a door directly to the outside or contain a wet bar. SECTION XIV: The chart in Section 17.28.030 of the Orange Municipal Code, "Zoning — Overlay Districts — Denotation of Overlay Districts," is hereby revised to read as follows: District Symbol Flood Plain 1 FP-1 Flood Plain 2 FP-2 Single Story A Equestrian E Parking P Neighborhood Preservation NP SECTION XV: Section 17.28.080 is hereby added to the Orange Municipal Code, "Zoning — Overlay Districts — Neighborhood Preservation Overlay District," to read as follows: 17.28.080 Neighborhood Preservation Overlay A. Purpose and Intent. The purpose of the Neighborhood Preservation (NP) Overlay District is to provide regulations to control surges in construction of new additions and interior Ord. No. 10-22 7 MEB renovations to primary residences concentrated in the overlay district that become multiple tenant rental properties and that result in adverse impacts to single-family neighborhoods. B. Application. The Neighborhood Preservation Overlay District is the area bounded by Katella Avenue to the north, Main Street to the west, the SR-55 Freeway to the east, and the City's boundaries along the SR-22 Freeway to the south. The overlay district is established on the City of Orange Zoning Map. C. Overlay Development Standards — Ministerial Approval. Project applications from existing primary residences in the overlay district that add bedrooms or bathrooms in compliance with the City of Orange Infill Residential Design Guidelines and the following overlay development standards, shall be approved ministerially by the Community Development Director or designee. 1. A maximum of two bedrooms may be constructed onto and/or and added within a primary residence by reconfiguring existing space. For purposes of calculating allowable additional bedrooms, the number of bedrooms existing as of January 1, 2023, shall be considered the baseline. 2. A maximum of two bathrooms, including half -bathrooms, may be constructed onto and/or added to a primary residence by reconfiguring existing space. For purposes of calculating allowable additional bathrooms, the number of bathrooms existing as of January 1, 2023, shall be considered the baseline. 3. A minimum of 100 square feet of additional usable open space must be provided for each additional bedroom being proposed to the existing primary residence. 4. A minimum of 100 square feet of additional common living area must be provided for each additional bedroom being proposed to the existing primary residence. Dwelling units that maintain a minimum of 800 square feet of common living area are exempt from the requirement. 5. A minimum of 50 cubic feet of additional unified indoor storage area must be provided for each additional bedroom being proposed to the existing primary residence. Such storage area must be in addition to cabinets and closets typically found within a dwelling unit such as bedroom closets, linen closets, or kitchen cabinets. 6. In any single-family residential district, the addition of one or two new bedrooms must comply with the following floor area ratio (FAR) standards. Lot Area W) Max FAR Max FAR for One New Bedroom <105000 0.60 0.55 1000-1200 0.50 0.45 Max FAR for Two New Bedrooms 0.50 0.40 Ord. No. 10-22 8 MEB 7. Project applications involving exterior modifications to primary residences located in a historic district shall also be subject to design review by the Design Review Committee. D. Approval Process. Applications from existing primary residences in the overlay district that add bedrooms or bathrooms not in compliance with the overlay development standards set forth in Subsection C. and/or that are located in a historic district shall be subject to the following approval procedures: 1. Historic District Approval. An application for additional bedrooms, bathrooms and other related improvements that involves new square footage or exterior modifications (other than roof vents), shall be subject to the design review process as follows: a. When the property is located in a historic district but the application is otherwise in compliance with the overlay development standards contained in subsection C, the Design Review Committee shall have the final authority to review and approve the project. b. When the property is located in a historic district but the application is not in compliance with the overlay development standards contained in subsection C, the Design Review Committee shall have the authority to review and make a recommendation to the Zoning Administrator on the design of the proposed project. The Zoning Administrator shall have the final authority to review and approve the project. 2. Approval — Not in a Historic District. When the proposal is not in compliance with the overlay development standards contained in subsection C, the Zoning Administrator shall have the final authority to review and approve the project. 3. Zoning Administrator Approval - Considerations. In approving an application for additional bedrooms, bathrooms, and/or other related improvements not in compliance with the overlay development standards contained in subsection C, the Zoning Administrator shall consider the following: a. The proposal will preserve the public peace, health, safety, and welfare within those areas that neighbor the affected residence and other surrounding areas within the Neighborhood Preservation Overlay District. b. The size and design of the proposal will minimize the likelihood of excessive disturbances or unruly behavior such as parking on front lawns, illegal street parking, congregation of crowds in the front yards over and above the number of occupants, and other public nuisances to the community. C. The proposal will comply with those standards and requirements described in this Section and the entirety of Title 17 of this code. Ord. No. 10-22 9 MEB 4. Appeals. Final decisions of the Community Development Director, Design Review Committee or Zoning Administrator may be appealed to the Planning Commission pursuant to Section 17.08.050.E. E. The Community Development Director, Design Review Committee or Zoning Administrator may refer an application for which it may render a final decision to the Planning Commission for a final decision. The Planning Commission shall be subject to those approval considerations set forth in subsection D.3. SECTION XVI: If any section, subdivision, paragraph, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each section, subdivision, paragraph, sentence, clause and phrase thereof, irrespective of the fact that any one (or more) section, subdivision, paragraph, sentence, clause or phrase had been declared invalid or unconstitutional. SECTION XVII: The City Clerk is hereby directed to certify the adoption of this Ordinance and cause a summary of the same to be published as required by law. This Ordinance shall take effect thirty (30) days from and after the date of its final passage. APPROVED this day of , 2022. Mark A. Murphy, Mayor, City of Orange ATTEST: Pamela Coleman, City Clerk, City of Orange Ord. No. 10-22 10 MEB STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF ORANGE ) I, PAMELA COLEMAN, City Clerk of the City of Orange, California, do hereby certify that the foregoing Ordinance was introduced at the regular meeting of the City Council held on the day of , 2022, and thereafter at the regular meeting of said City Council duly held on the day of , 2022, was duly passed and adopted by the following vote, to wit: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: Pamela Coleman, City Clerk, City of Orange Ord. No. 10-22 11 MEB