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02-22-17 Accessory Dwelling Unit Ordinance Amendment City wide TO: Chair Gladson and Members of the Planning Commission THRU: Anna Pehoushek, Assistant Director FROM: Chad Ortlieb, Senior Planner SUBJECT PUBLIC HEARING: Zone Change No. 1285-17, Accessory Dwelling Unit Ordinance Amendment in Accordance with the Provisions of State Law SUMMARY Staff proposes to amend the City’s existing Accessory Dwelling Unit Ordinance in order to comply with State Law. RECOMMENDED ACTION Adopt Planning Commission Resolution No. 03-17 entitled: A RESOLUTION OF THE PLANNING COMMISSION RECOMMENDING THAT THE CITY COUNCIL APPROVE ORDINANCE NO. 02-17, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ORANGE AMENDING VARIOUS SECTIONS OF TITLE 17 OF THE ORANGE MUNICIPAL CODE TO IMPLEMENT CHANGES FOR ACCESSORY DWELLING UNITS IN ACCORDANCE WITH THE PROVISIONS OF STATE LAW AUTHORIZATION/GUIDELINES Orange Municipal Code (OMC) Sections 17.08.020B.2.b.i. and 17.10.020B. authorize the Planning Commission to review and make a recommendation to the City Council for zoning ordinance amendments. Planning Commission Agenda Item February 22, 2017 Planning Commission Staff Report February 22, 2017 Page 2 PUBLIC NOTICE On February 9, 2017, the City published notice of the Planning Commission’s consideration of the proposed ordinance on 1/8 page of the Orange City News newspaper. ENVIRONMENTAL REVIEW Statutory Exemption: The proposed project is statutorily exempt from the provisions of the California Environmental Quality Act (CEQA) per State CEQA Guidelines Section 15282(h) because the project is the adoption of an ordinance regarding accessory dwelling units in single-family zones pursuant to Section 65852.2 of the Government Code. No public review is required. No public comments have been received as of the date of staff report preparation. Any subsequent comments received will be forwarded to the Planning Commission as they are received. PROJECT BACKGROUND On May 27, 2003, the City Council adopted Ordinance 8-03 to establish provisions for accessory dwelling units (ADUs) required by then amended Sections 65583.1, 65852.2, and 65915 of the Government Code as required by the passage of Assembly Bill 1866. The Code allows ADUs in single-family and multiple-family residential zoning districts provided that the lot is occupied by only a single-family residence. ADUs are allowed by right in all residential zoning districts as a “ministerial” matter. Beginning in 2017, State Law was amended with regard to certain provisions pertaining to ADUs necessitating an update to the OMC. The intent of the change in State law was to remove barriers and provide greater flexibility in allowing for ADUs in order to provide greater housing supply options. The proposed Code changes are intended to comply with these new State requirements. PROJECT DESCRIPTION The City has existing provisions in the Orange Municipal Code (OMC) that allow for ADUs as required by State Law. To respond to State law changes, Planning Division staff and the City Attorney’s Office have crafted proposed OMC revisions. Proposed text changes necessitated by State law include:  adding definitions  clarifying processing procedures  providing for efficiency units  adding restrictions pertaining to fire safety  adding water connection fee restrictions  clarifying existing OMC provisions pertaining to accessory dwelling unit setbacks and separation requirements; and  adding parking exemptions. Planning Commission Staff Report February 22, 2017 Page 3 The proposed Code revisions addressing these items are presented in Attachments 1 and 2 to the staff report (the Draft City Council Ordinance No. 02-17 - clean copy and track changes version, respectively). There are three items that represent the most significant changes to long-standing City policy that warrant highlighting, as follows. Efficiency Units Under State Law, the City cannot prohibit efficiency units, as defined by the Health and Safety Code, which are a minimum of 150 square feet. Presently, the Code defines an ADU as being between 450 square feet and 600 square feet in size. Therefore, the proposed ordinance provides for the Community Development Director to authorize efficiency units when all other development standards, such as setbacks, are met. Parking Presently, the Code requires one open parking space to be provided for an ADU. State Law now requires that the City waive parking requirements for accessory dwelling units in the event any of the five scenarios exist: (1) The accessory dwelling unit is located within one-half mile of public transit. (2) The accessory dwelling unit is located within an architecturally and historically significant historic district. (3) The accessory dwelling unit is part of the existing primary residence or an existing accessory structure. (4) When on-street parking permits are required but not offered to the occupant of the accessory dwelling unit. (5) When there is a car share vehicle located within one block of the accessory dwelling unit. Staff is proposing to amend the OMC to require the applicant to demonstrate to the Community Development Director that one or more of the five criteria apply before the parking waiver is applied. If the waiver does not apply, staff will continue to require one uncovered parking space for an ADU. Accessory Dwelling Units on Single-Family Residential Zoned Lots The Code currently allows accessory dwelling units for properties with single-family and multiple- family residential zoning but are only occupied with a single-family residence. The amended State law allows the City to designate which zones are most appropriate for accessory dwelling units. Given the parking waiver mandated for accessory dwelling units, staff is proposing to eliminate the potential for accessory dwelling units to occur on multiple-family residential zoned properties as a means of limiting the effects of the mandated parking waivers on on-street parking. Planning Commission Staff Report February 22, 2017 Page 4 APPLICATION(S) REQUESTED/ REQUIRED FINDINGS Zoning Ordinance Amendment: Staff is proposing a Zoning Ordinance Amendment to implement the new requirements of State Law for accessory dwelling units. Required Findings: There are no required findings for a Zone Change since it is considered a legislative action. However, OMC Section 17.10.020 requires that when the Planning Commission makes a recommendation to the City Council, the Planning Commission include in its decision: 1) the reasons for the recommendation; 2) the relationship of the proposed amendment to the General Plan and applicable Specific Plans; and 3) the environmental determination. These three items are addressed in the Planning Commission Resolution. By adopting the Resolution, the Planning Commission will have complied with this Code provision. ANALYSIS/STATEMENT OF THE ISSUES Issue 1: Compliance with State Law The City’s ADU Ordinance was last updated in 2003. State Law has recently been amended with regard to ADUs necessitating an update to the OMC. Resolution: The proposed Ordinance provides for changes to the Zoning Code that are necessary to comply with new State law requirements. Adoption of the Ordinance will bring the City’s Code into conformance with State law. Issue 2: Parking and Limiting Accessory Dwelling Units to Single-Family Zoned Lots State law now requires the City to waive parking requirements for ADU’s under certain circumstances, including when located within a ½ mile of transit and when located within a historic district. Based on the widespread distribution of transit stops throughout the City, it is likely that parking requirements will be waived for a majority of ADU’s moving forward. The result will likely be a greater reliance on on-street parking by occupants of ADU’s and therefore a more impacted on- street parking situation, particularly in areas such as Old Towne. Resolution: The City currently allows accessory dwelling units for properties that have single-family or multiple-family residential zoning but are occupied with single-family residences. The amended State law only requires the City to allow accessory dwelling units on single-family zoned properties. Therefore, given the parking waivers mandated for accessory dwelling units, staff is proposing to change the Zoning Code to eliminate the potential for ADU’s to occur on multiple-family zoned properties. Existing multiple-family zoned lots with ADU’s would continue to be recognized as legal uses. Although ADU’s would not be an allowed use on multi-family residential zoned lots moving forward, Planning Commission Staff Report February 22, 2017 Page 5 multiple-family zoned lots would continue to allow for development of additional new residential units according to existing zoning and development standards. Overall, staff’s recommended Code changes are intended to ensure compliance with State law while striving to protect neighborhood character and quality to the extent possible given the expanded accommodations provided to ADU’s by the State. ADVISORY BOARD RECOMMENDATION No advisory board review is required for an Ordinance Amendment. ATTACHMENTS/EXHIBITS Attachments to Report: 1. Planning Commission Resolution No. 03-17  Attachment A- Draft City Council Ordinance No. 02-17 – clean copy 2. Draft City Council Ordinance No. 02-17 – underline/strikeout version N:\CDD\PLNG\Ordinance Amendments\Accessory Second Housing Unit\2017 Update\Planning Commission Staff Report - Final Version.docx