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2020 05 12 PCPLANNING COMMISSION AGENDA 1 MAY 12, 2020 PLANNING COMMISSION AGENDA CITY HALL COUNCIL CHAMBER 78-495 Calle Tampico, La Quinta REGULAR MEETING on TUESDAY, MAY 12, 2020 AT 5:00 P.M. ****************************** SPECIAL NOTICE Teleconferencing and Telephonic Accessibility In Effect Pursuant to Executive Orders N-25-20, N-29-20, N-33-20, and N-35-20, executed by the Governor of California in response to the state of emergency relating to novel coronavirus disease 2019 (COVID-19) and enabling teleconferencing accommodations by suspending or waiving specified provisions in the Ralph M. Brown Act (Government Code § 54950 et seq.), members of the Planning Commission, the City Attorney, City Staff, and City Consultants may participate in this meeting by teleconference. Additionally, pursuant to the above-referenced executive orders, the public is not permitted to physically attend at City Hall the meeting to which this agenda applies, but any member of the public may listen or participate in the open session of this meeting as specified below. Members of the public wanting to listen to this meeting may do so by tuning-in live via http://laquinta.12milesout.com/video/live. Members of the public wanting to address the Planning Commission, either for public comment or for a specific agenda item, or both, are requested to send an email notification to the Planning Commission Secretary Wanda Wise-Latta at WLatta@LaQuintaCA.Gov, and specify the following information: 1) Full Name 4) Public Comment or Agenda Item Number 2) City of Residence 5) Subject 3) Phone Number 6) Written or Verbal Comments The email “subject line” must clearly state “Written Comments” or “Verbal Comments.” Planning Commission agendas and staff reports are now available on the City’s web page: www.LaQuintaCA.Gov PLANNING COMMISSION AGENDA 2 MAY 12, 2020 Verbal public comments – requests to speak must be emailed to the Commission Secretary no later than 4:00 p.m. on the day of the meeting; the City will facilitate the ability for a member of the public to be audible to the Planning Commission and general public for the item(s) by contacting him/her via phone and queuing him/her to speak during the discussion. Only one person at a time may speak by telephone and only after being recognized by the Planning Commission’s Chairperson. Written public comments, received prior to the adjournment of the meeting, will be distributed to the Planning Commission, incorporated into the agenda packet and public record of the meeting, and will not be read during the meeting unless, upon the request of the Planning Commission Chairperson, a brief summary of any public comment is asked to be read, to the extent the Commission Secretary can accommodate such request. It would be appreciated that any email communications for public comments related to the items on the agenda, or for general public comment, are provided to the Design and Development Department at the email address listed above prior to the commencement of the meeting. If that is not possible, and to accommodate public comments on items that may be added to the agenda after its initial posting or items that are on the agenda, every effort will be made to attempt to review emails received by the Design and Development Department during the course of the meeting. The Planning Commission’s Chairperson will endeavor to take a brief pause before action is taken on any agenda item to allow the Commission Secretary to review emails and share any public comments received during the meeting. All emails received by the Commission Secretary, at the email address above, until the adjournment of the meeting, will be included within the public record relating to the meeting. ****************************** CALL TO ORDER ROLL CALL: Commissioners Bettencourt, Currie, Libolt Varner, McCune, Nieto, Proctor and Chairperson Caldwell PLEDGE OF ALLEGIANCE PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA At this time, members of the public may address the Planning Commission on any matter not listed on the agenda. Please email “Written Public Comments” to WLatta@LaQuintaCA.Gov and limit your comments to three (3) minutes (approximately 350 words). The Commission values your comments; however, in accordance with State law, no action shall be taken on any item not appearing on the agenda unless it is an emergency item authorized by the Brown Act [Government Code Section 54654.2(b)]. PLANNING COMMISSION AGENDA 3 MAY 12, 2020 CONFIRMATION OF AGENDA ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COM MUNICATIONS - None CONSENT CALENDAR NOTE: Consent Calendar items are routine in nature and can be approved by one motion. 1. APPROVE MINUTES OF FEBRUARY 25, 2020 BUSINESS SESSION - None STUDY SESSION 1. 2019 STATE OF CALIFORNIA HOUSING LEGISLATION PUBLIC HEARINGS - None REPORTS AND INFORMATIONAL ITEMS - None COMMISSIONERS’ ITEMS STAFF ITEMS - None ADJOURNMENT The next regular meeting of the Planning Commission will be held on May 26, 2020, commencing at 5:00 p.m. with the Call to Order, at the City Hall Council Chamber, 78-495 Calle Tampico, La Quinta, California. DECLARATION OF POSTING I, Wanda Wise-Latta, Commission Secretary, do hereby declare that the foregoing Agenda for the La Quinta Planning Commission meeting of May 12, 2020 was posted on the City’s website, near the entrance to the Council Chamber at 78-495 Calle Tampico, and the bulletin boards at the Stater Brothers Supermarket at 78- 630 Highway 111, and the La Quinta Cove Post Office at 51-321 Avenida Bermudas, on May 7, 2020. DATED: May 7, 2020 WANDA WISE-LATTA, Commission Secretary City of La Quinta, California Public Notices PLANNING COMMISSION AGENDA 4 MAY 12, 2020 The La Quinta City Council Chamber is handicapped accessible. If special equipment is needed for the hearing impaired, please call the Planning Division of the Design and Development Department at 777-7118, twenty- four (24) hours in advance of the meeting and accommodations will be made. If special electronic equipment is needed to make presentations to the Commission, arrangements should be made in advance by contacting the Planning Division of the Design and Development Department at 777- 7118. A one (1) week notice is required. If background material is to be presented to the Commission during a Planning Commission meeting, please be advised that ten (10) copies of all documents, exhibits, etc., must be supplied to the Executive Assistant for distribution. It is requested that this take place prior to the beginning of the meeting. Any writings or documents provided to a majority of the Commission regarding any item(s) on this agenda will be made available for public inspection at the Design and Development Department’s counter at City Hall located at 78-495 Calle Tampico, La Quinta, California, 92253, during normal business hours. PLANNING COMMISSION MINUTES 1 FEBRUARY 25, 2020 PLANNING COMMISSION MINUTES TUESDAY, FEBRUARY 25, 2020 CALL TO ORDER A regular meeting of the La Quinta Planning Commission was called to order at 5:00 p.m. by Chairperson Caldwell. PRESENT: Commissioners Bettencourt, Currie, Libolt Varner, McCune, Nieto, Proctor and Chairperson Caldwell ABSENT: None STAFF PRESENT: Design & Development Director Danny Castro, Planning Manager Cheri L. Flores, Senior Planner Carlos Fl ores, Public Works Director/City Engineer Bryan McKinney and Commission Secretary Wanda Wise-Latta PLEDGE OF ALLEGIANCE Commissioner Nieto led the Planning Commission in the Pledge of Allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – None CONFIRMATION OF AGENDA - Confirmed ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATION - None CONSENT CALENDAR 1. APPROVAL OF MINUTES DATED FEBRUARY 11, 2020 MOTION – A motion was made and seconded by Commissioners Proctor/Bettencourt to approve the Consent Calendar as submitted. AYES: Commissioners Bettencourt, Currie, Libolt Varner, McCune, Nieto and Chairperson Caldwell. NOES: None. ABSENT: None. ABSTAIN: None. Motion passed unanimously. BUSINESS SESSION 1. GENERAL PLAN AND HOUSING ELEMENT ANNUAL PROGRESS REPORTS FOR CALENDAR YEAR 2019 CONSENT CALENDAR ITEM NO. 1 PLANNING COMMISSION MINUTES 2 FEBRUARY 25, 2020 Planning Manager Cheri L. Flores and Senior Planner Carlos Flores presented the staff report which is on file in the Design and Development Department. Staff responded to Commission inquiries and comments regarding Regional Housing Needs Allocations (RHNA); strategies to meet RHNA; SB2 funding award and how funds will be used; preparation and submittal of Housing Element Annual Progress Report; special needs housing; RHNA final unit allocation distribution for 2021/2029; General Plan land uses; upcoming Housing Element Update; zoning code incentives related to development; homeless population in the Coachella Valley and related assistance programs; form -based codes and how the process might be implemented in La Quinta and more specifically the Highway 111 commercial area; higher density, mixed-use areas near commercial development; and staff clarified that the Public Works Department updates the Golf Cart Use Map. Commissioners shared thoughts regarding Planning Commission review of any fiscal impact analysis when considering important or larger land use issues. Director Castro commented that fiscal impact analysis is typically not within the realm of Planning Commission review when considering the merits of a project in terms of zoning and appropriateness; would not be part of the Commission’s findings and should not be a basis for approval of a project. MOTION: A motion was made and seconded by Commissioners Bettencourt/Currie recommending to the City Council that they authorize submittal of the General Plan Status and the Housing Element Annual Progress Reports to the Office of Planning and Research and State Department of Housing and Community Development. AYES: Commissioners Bettencourt, Currie, Libolt Varner, McCune, Nieto, Proctor and Chairperson Caldwell. NOES: None. ABSENT: None. ABSTAIN: None. Motion passed unanimously. STUDY SESSION - None PUBLIC HEARINGS – None REPORTS AND INFORMATIONAL ITEMS - None COMMISSIONERS’ ITEMS Commissioner Proctor commented he was pleased to see the start of the installation of the auto dealer signs along Highway 111. Commission Bettencourt extended a happy birthday to Commissioner Libolt Varner and the Commission concurred. STAFF ITEMS - None ADJOURNM ENT PLANNING COMMISSION MINUTES 3 FEBRUARY 25, 2020 There being no further business, it was moved and seconded by Commissioners Bettencourt/Currie to adjourn this meeting at 5:54 p.m. Motion passed unanimously. Respectfully submitted, WANDA WISE-LATTA, Commission Secretary City of La Quinta , California City of La Quinta PLANNING COMMISSION MEETING STAFF ITEM TO: Madame Chair and Members of the Planning Commission FROM: Cheri Flores, Planning Manager DATE: May 12, 2020 SUBJECT: PRESENTATION OF 2019 STATE OF CALIFORNIA HOUSING LEGISLATION Over the last several years, the State Legislature has passed legislation to address the shortfall of housing in California. In 2019, over 30 pieces of legislation were passed by the State legislature covering various aspects of housing, from tenant protection to streamlining the development process to increasing density, in an effort to increase housing affordability and speed up the process of building houses. Many of this legislation affects the way Cities conduct their business moving forward. This presentation provides a summary of key legislation that affects existing and future project applications. This is for the Commission’s information only and no direction, guidance or decisions are being sought. Attachment 1: Housing Legislation Summary STUDY SESSION ITEM NO. 1 3/4/2020 1 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Housing Legislation Summary Presented to City of La Quinta Planning Commission City Attorney’s Office, Bill Ihrke Rutan & Tucker, LLP May 2020 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Refresher on ADU Lingo Accessory Dwelling Unit (ADU) = attached or detached dwelling unit that provides independent living facilities for 1 or more persons and is located on a lot with existing or proposed primary single family (SF) or multifamily (new) dwelling. Includes permanent provisions for living, sleeping, eating, cooking and sanitation. Includes efficiencies (Health & Safety § 17958.1) and manufactured homes (Health & Safety § 18007). 2 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Refresher on ADU Lingo Junior Accessory Dwelling Unit (JADU) = dwelling unit of no more than 500 sf, contained entirely within a SF home with either separate or shared sanitation facilities. 3 ATTACHMENT 1 3/4/2020 2 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com 5-year Experiment..... ADU law to remain in effect until 1-1-2025 § 65852.2(o) Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com ADUs/JADUs 5 Deadline for acting on completed applications cut in half starting Jan. 1 Complete applications for ADU/JADU must be approved ministerially within 60 days rather than 120 days Exception: No primary structure exists No action = automatic approval if no enforceable local ordinance § 65852.2(a)(3)**All references are to Government Code unless otherwise stated Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Local Regulation of ADU/JADU Severely Restricted as of January 1 • Local ordinance “may” be adopted. Not mandatory. Worth it? • It will only apply when you are not dealing with the 4 categories of by-right/building permit only ADUs/JADUs (discussed later). • Ordinance must generally allow ADUs in areas zoned for SF or multifamily use. • City may limit areas for ADUs based only on adequacy of water/sewer service or traffic flow/public safety. • Cannot mandate owner-occupancy. 3/4/2020 3 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Local Regulation of ADU/JADU Severely Restricted as of January 1 • As revised, subsection (a)(1) states that the City may .... – “Impose standards on accessory dwelling units that include, but are not limited to, parking, height, setback, landscape, architectural review, maximum size of a unit, and standards that prevent adverse impacts on any real property that is listed in the California Register of Historic Resources. These standards shall not include requirements on minimum lot size.” • But then the following subsections severely cut back what can be imposed. Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Local Regulation of ADU/JADU Severely Restricted as of January 1 • No minimum lot size may be included. • Cannot impose lot coverage limitations/FAR that would prevent 800 sq ft ADU that is 16 ft in height, with at least 4 ft rear/side yard setback. • No minimum size standard that would prohibit efficiency (150 sq ft). • No maximum size standard that would preclude 850 sq ft or 1000 sq ft for 2-bd ADU. • No more than 4 ft side/rear yard setback (front yard ok). • Cannot require fire sprinklers unless required for primary unit. Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Local Regulation of ADU/JADU Severely Restricted as of January 1 § 65852.2 (a) outlines the most restrictive standards (that don’t apply to the 4 categories of automatically permitted units discussed below -- not governed by local ordinance) § 65852.2(a)(6) “No other local ordinance, policy, or regulation shall be the basis for the delay or denial of building permit.” § 65852(a)(5) Option: City may require that ADUs only be rented for 30+ days [Note –short-term rental must be prohibited for the “Building Permit Only” units, discussed below] 3/4/2020 4 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Local Regulation of ADU/JADU Severely Restricted as of January 1 Local Parking Standards were already cut back, now more so... New – local ordinance cannot require replacement parking when parking area converted to ADU. § 65852.2(a)(1)(D)(xi). Clarified – can’t impose any parking requirement if unit within ½ mile walking distance to public transit, which includes bus stop or train station. Carried forward, among others: can’t impose requirement when ADU is part of existing or proposed primary or accessory structure. Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com 11 If City’s ordinance fails to meet any of the new requirements (e.g., if it has a minimum lot size) it “shall be null and void and [the city] shall thereafter apply the standards established in this subdivision for approval of accessory dwelling units, unless and until the agency adopts an ordinance that complies with this subdivision. § 65852.2(a)(4) Interpreted (at least by some) to mean it voids the whole ordinance. Effect on City’s Existing Ordinance Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com CEQA Clearance for Ordinance Amendment? What about all the GHG/VMT from additional units?? PRC § 21080.17 3/4/2020 5 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Ordinance oversight by HCD 13 If City adopts ordinance to comply with new law (old ordinance will not be in compliance), must submit to HCD for compliance review within 60 days of adoption. Failure to address HCD comments/concerns may lead to notification by HCD to Attorney General that City is violation the law. § 65852.2(h) Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com 4 New Categories of ADU/JADU by BUILDING PERMIT ONLY (Regardless of what your ordinance says!) “perhaps the most significant change of all” – CA Renters Legal Advocacy These apply in all residential AND MIXED-USE zones. § 65852.2(e) Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Category 1 A (Mostly) Contained Unit 1 ADU or JADU per lot with existing or proposed SF home, if it satisfies all of the following: – Unit is within space of SF home or accessory structure + up to 150 sq ft expansion for accommodating ingress/egress – Unit has exterior access from SF home – Side/rear setbacks sufficient for fire/safety – If JADU, meets requirements of § 65852.22 § 65852.2(e)(1)(A) 15 3/4/2020 6 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Category 2 The Twofer – Detach ADU + JADU • 1 detached, new construction ADU with existing or new SF home – Must be able to provide 4-ft rear/side yard setback – City may limit to 800 sq ft and 16 ft. in height • Above detached ADU can be COMBINED with JADU that meets Category 1 requirement, for a total of 3 units on lot. • § 65852.2(e)(1)(B) 16 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com 17 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Category 3 The Multifamily Boiler Room Option! • Existing multifamily may convert portions not used as livable spaces “including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages.” • Space must comply with state building standards for dwellings. • City “shall” allow at least 1 ADU, and may allow up to 25% of existing units. • § 65852.2(e)(1)(C) 18 3/4/2020 7 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Category 4 Multifamily Detached ADUs • Two DETACHED ADUs can be added on lot with multifamily. • Can’t exceed 16 ft. in height. • Can’t encroach within 4 ft. side/rear yard setback. • § 65852.2(e)(1)(D) 19 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Special Rules for “Building Permit only” Categories 1-4 • City can’t require correction of non-conforming zoning conditions. Note – this is NOT restricted to LEGAL nonconforming conditions. • City can’t require fire sprinklers unless main structure require to have them. • City MUST require that all rentals be more than 30 days. Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Changes to the JADU requirements • Clarified that a JADU can be proposed for either an existing or a proposed SF dwelling • Deleted the requirement of sink • Deleted voltage requirement for cooking appliances • Reduced processing time to 60 days 21 3/4/2020 8 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com ADU/JADU Mitigation Fee Act • Mitigation Fee Act & Quimby – No fees on ADUs under 750 sq ft – ADUs over 750 sq ft – charged proportionally in relation to sq ft of primary unit 22 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com ADU Utility Connections & Fees – Not considered “a new residential use” if SF home already exists for purposes of connection/capacity charges. – A Category 1 unit (mostly within existing SF home), applicant’s not required to install new/separate utility connection for unit, and no fee or capacity charge permitted. – For any ADU other than Category 1, new/separate utility connection may be required and may be subject to proportionate fee, based upon sq ft or number of fixtures. 23 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Timing of Certificates of Occupancies When being constructed together, City can’t issue C of O for ADU before issuing one for primary dwelling. § 65852.2(k) 24 3/4/2020 9 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com 25 Owners of ADUs built before 1/1/2020, or built after that date in city with noncompliant ADU ordinance at the time of construction, may request a 5-year delay in Code Enforcement unless correcting the violation is necessary to protect health and safety. Notice of violation must include notice of right to request delay! Gov’t § 65852.2(n); H&S § 17980.12 “Statewide amnesty program for unpermitted ADUs” Impacts on Code Enforcement until 2025 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com 26 HOAs now limited. AB 670: CC&R’s cannot “effectively prohibit or unreasonably restrict” ADUs. HOA may only impose “reasonable restrictions” if they don’t unreasonably increase costs or effectively prohibit construction. Civ. Code § 4751 What about HOA? Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Impact on Existing Deed Restrictions? • Legislation is silent on whether existing owner occupancy deed restrictions must be removed • Civil Code 4751 might invalidate: (a) Any covenant, restriction, or condition contained in any deed, contract, ... or other instrument affecting the transfer or sale of any interest in a planned development, and any provision of a governing document, that either effectively prohibits or unreasonably restricts the ... use of an accessory dwelling unit or junior accessory dwelling unit on a lot zoned for single-family residential use that meets the requirements of Section 65852.2 or 65852.22 of the Government Code, is void and unenforceable. 27 3/4/2020 10 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com ADUs & Housing Elements Housing Elements must now include “a plan that incentivizes and promotes the creation of accessory dwelling units that can be offered at affordable rent.” AB 671 - § 65583(c)(7) City may count ADUs for purposes of identifying sites for housing per § 65583.1(a), subject to HCD approval. § 65852.2(m) Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Selling ADUs separate from primary dwelling? AB 587 – Adds § 65852.26 that allows units built by “qualified nonprofit” (e.g., Habitat For Humanity) to be sold/conveyed to low or moderate income persons, provided certain requirements are satisfied. Requires recorded agreements and covenants that impose: • 45-year affordability requirements • certain resale/ restrictions • separate utility connections • principal residency requirements Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com “OLD” & “NEW” NO-NET LOSS NOW ON TO... 30 3/4/2020 11 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Existing “No Net Loss” Law Effective Jan. 1, 2019 - § 65863 already imposed: • Restrictions on reduction of density unless certain findings were made, including remaining sites identified in HE were sufficient to meet RHNA • Restrictions on approving individual projects with less than the density than units identified in the HE unless findings made • Requirement to identify additional sites for housing to cover reductions • Requirement to “identify and make available” within 180 days additional adequate sites if agency approves lower density project and finds remaining sites are not adequate to meet RHNA Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com HERE COMES Another 5-year experiment ... • No net loss on steroids! 32 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com SB 330 – NEW No Net Loss of Planned or Actual Units • § 66300 added: • Applies to “Affected Cities” – cities determined to be in “urbanized area or urban cluster” • LQ qualifies • Includes voters – initiative power regulated 33 3/4/2020 12 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com SB 330 – NEW No Net Loss of Planned or Actual Units • Fundamental purposes: – Prevent future planning/across the board regulations that will reduce housing – Preclude/limit individual projects that will result in fewer units due to demolition • Kicks in on housing development projects that don’t have a completed project application before Jan. 1 2020 – Extreme limitations on demolition of “protected units” 34 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com SB 330 – NEW No Net Loss of Planned Units • Per § 66300(b), on land where housing is permitted, City can’t enact “development policy, standard, or condition” that would have the following effects: – Reduce intensity of land use per GP, SP, zoning below Jan. 1, 2018 levels (unless HCD approves) – “Less intense use” includes • reductions to height, density, FAR • increases in open space or lot size requirements • new/increased set backs, minimum frontage or maximum lot coverage • “or anything that would lessen the intensity of housing” 35 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com SB 330 – NEW No Net Loss of Planned Units • Per § 66300(b), on land where housing is permitted, City can’t enact “development policy, standard, or condition” that would have the following effects: – Impose moratorium on housing development unless imminent threat to health & safety – Enforce ordinance imposing moratorium on housing unless approved by HCD – Impose/enforce design standards established after 1-1-2020 that are not objective – Establishing/implementing numeric caps on permits/units/limits on population 36 3/4/2020 13 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com SB 330 – NEW No Net Loss of Planned Units • City can decrease intensity if it concurrently increases intensity elsewhere so no net loss in residential capacity (66300(i)) • Any provision enacted after Jan. 1, 2020 not consistent with above is deemed void 37 City can impose restrictions on “commercial use” of land designated for residential use, e.g., short term rentals (66300(c)) Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com SB 330 – NEW No Net Loss of Actual Units • On project level [§ 66300(d)], City can’t approve a “housing development project” [more than one unit] that: – Demolishes existing dwelling units unless it replaces with at least as many 38 • Severe restriction is the demolition of “protected units” (e.g., affordable), including replacement requirements Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com SB 330 AND THE HOUSING ACCOUNTABILITY ACT (HAA) Next... 39 3/4/2020 14 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Housing Accountability Act • Housing Accountability Act or “Anti-NIMBY Act” (Gov. Code § 65589.5) amended again • Applies to “housing development projects” – Residential or mixed use with 2/3 residential square footage –Likely does not apply to the development of a single family home – Single family home and ADU? 40 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com 2018 Amendments 41 • The HAA had historically placed a number of restrictions on a local agency’s ability to disprove both affordable housing and market rate housing projects • 2018 amendments made a number of changes to further limit local discretion Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com 2018 Amendments To deny a housing development project (or impose a condition reducing density), agency must either: • Determine project does not comply with objective general plan, zoning or subdivision criteria or standards within 1-2 months of a completed application (otherwise deemed consistent) OR 3/4/2020 15 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com 2018 Amendments Find, by a preponderance of the evidence, that project would have a specific adverse impact on public health or safety that can’t be mitigated: • previously substantial evidence test • “specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete 43 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com 2018 Amendments Additional changes: • Added additional penalty provisions, including fines for bad faith disapprovals • Attorneys fees for housing groups Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com New Amendments Effective January 1, 2020 SB 330 further amended HAA: • Freezes all existing regulations and impact fees when certain enumerated information (a “preliminary application”) is submitted for a housing development project • No City action required to “deem” application complete 3/4/2020 16 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Vesting Regulations Upon Complete “Preliminary Application” • “Deemed complete” is now defined as the submittal of a “preliminary application.” • Project is only subject to ordinances, policies, and standards adopted and in effect when the “preliminary application” was submitted. • “Preliminary application” is a new defined term in Permit Streamlining Act. (§65941.1) 46 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Contents Required for Preliminary Application • Application deemed complete upon receipt of: – Specific location/legal description – Existing uses/physical condition of the site – Site plan – Number of units and square feet of residential and nonresidential development, and proposed parking spaces 47 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Contents Required for Preliminary Application Required Information (continued): – Proposed point sources of air or water pollution – Species of concern known to occur on the site – Certain information about potential hazards – Any historic or cultural resources – Any density bonus requests 48 3/4/2020 17 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Contents Required for Preliminary Application Required Information (continued): – Whether any Subdivision Map Act approvals are needed – Certain information related to the coastal zone – Whether any residential units will be demolished – Location of any streams or public easements 49 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Limitations to Vesting The following may still be imposed after application deemed complete: • Automatic fee increases based on independent cost indices referenced in a city or county’s fee ordinance • Regulation is necessary to mitigate or avoid a health or safety impact and there is no feasible alternative (preponderance of evidence) • Regulation necessary to avoid or substantially lessen a project impact under CEQA 50 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Limitations to Vesting Continued Vesting “expires” when the project has not commenced construction within 2.5 years of “final approval” or is revised to change the number of residential units or square footage of construction by 20% or more 51 3/4/2020 18 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Limitations to Vesting Continued • Later enacted regulations of use and occupancy of residential units such as rent control and limitations on short term rentals still apply to housing development projects 52 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Additional HAA Amendments • Clarifies “objective” to mean “involving no personal or subjective judgment by a public official and being uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official.” • “Lower density” includes any conditions that have the same effect or impact on the ability of the project to provide housing. 53 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Additional HAA Amendments • Reorganizes provisions allowing challenge to enforce HAA by applicant, potential resident, or housing organization • Court required to order compliance in 60 days if a violation is found – Violation = “disapproved a housing development project complying with applicable, objective general plan and zoning standards and criteria, or imposed a condition that the project be developed at a lower density, without making the findings required by this section or without making findings supported by a preponderance of the evidence.” 54 3/4/2020 19 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com HAA Does Not Exempt Projects from CEQA SB 330 did not affect § 65589.5(e), which states: • “Nothing in this section shall be construed to relieve the local agency from complying with” CEQA or the Coastal Act 55 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com SB 330 AND THE PERMIT STREAMLINING ACT Some more changes... 56 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Permit Streamlining Act • Maximum of 5 public hearings where project complies with General Plan and zoning (§ 65905.5) • Deadline to act on project after EIR certified reduced from 120 to 90 days (§ 65950) – 60 days for certain affordable housing developments 57 3/4/2020 20 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Permit Streamlining Act Adds § 65913.10: • City must make “historic site” determination at the time the preliminary application is submitted, “[f]or purposes of any state or local law, ordinance, or regulation that requires the city or county to determine whether the site of a proposed housing development project is a historic site.” 58 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Permit Streamlining Act New § 65913.10: • Determination “remains valid” during pendency unless discovery made during grading/construction • Only applies to housing development projects (probably not SFH projects) • Does not “supersede, limit or otherwise modify” the requirements of CEQA or the Coastal Act 59 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Permit Streamlining Act Amends § 65943: • City required to provide the applicant with an exhaustive list, in writing, of the items that were not complete within 30 days of application submittal – deemed complete if no written determination in 30 days • City may not request new information that was not listed in the initial incomplete letter during subsequent reviews of an incomplete application 60 3/4/2020 21 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Permit Streamlining Act City must make copies of list of information required to be included in applications for housing development projects available both – in writing to applicants and anyone requesting it – publicly available on the agency’s website 61 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com CHANGES TO THE DENSITY BONUS LAW ...and finally 62 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Density Bonus Law Concept and Existing Law If Applied For & Criteria Met, City MUST Grant: – Additional (Bonus) Market-Rate Units – Incentives and Concessions – Waivers or Reductions of Development Standards – Parking Concessions – Parking Allowances 63 3/4/2020 22 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Density Bonus Law (Review) • Criteria to trigger law: – Restrict Specified Percentages of Affordable Units or – Other Statutorily Specified Housing Uses • State Law Governs & City Ordinance Implements • Governing Statutes: Government Code § 65915 et seq. 64 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Density Bonus Law (Review) State Law Affordable Incomes • Extremely Low Income Households = 30% or Less than Area Median Income (AMI) • Very Low Income Households = 50% or Less AMI • Lower Income Households = 80% or Less AMI • Moderate Income Households = 120% or Less AMI • Housing & Community Dev. (HCD) Publishes Annually (See, Health & Saf. Code §§ 50050-50106) Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Density Bonus Law (Review) State Law Affordable Rents and Purchase Prices • Maximum Affordable Rental Rates (Generally) Very Low = 30% x 50% AMI Low = 30% x 60% AMI Moderate = 30% x 110% AMI • Maximum Affordable Housing Costs (Generally) Very Low = 30% of 50% AMI Low = 30% of 70% AMI Moderate = Between 28% and 35% of Income x 110% AMI (Health & Saf. Code §§ 50052.5, 50053) 3/4/2020 23 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Density Bonus Law (Review) Existing Law - Housing Projects Eligible for Density Bonus “Sliding Scale” Percentages for Affordable Units: • 10% of Units for Lower Income Households (80% AMI) • 5% of Units for Very Low Income Households (50% AMI) • 10% of Owner-Occupied Condo Units for Moderate Income Households (120% AMI) 67 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Density Bonus Law (Review) Existing Law – Other Projects Eligible for Density Bonus • Senior Citizen Housing • Child Care Facilities • Special Needs Housing • Land Dedication • 20% of Units (bed + common area) for Lower Income College Students (with Priority for Homeless Students) (Gov. Code § 65915, subd. (b)(1)(A)-(F)) 68 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Density Bonus Law (Amendments) Starting Jan. 1, 2020 – Additional Eligible Housing Projects • 100% of Units for Lower Income Households o Allowance of up to 20% for Moderate Income Households o May Have Manager Unit(s) Too 3/4/2020 24 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Density Bonus Law (Amendments) 100% Affordable Projects – Additional Mandates • Specified Rental Rates: • At Least 20% of Units at Affordable Rent • Other Units at TCAC Low-Income Tax Credit Rates (Gov. Code § 65915, subd. (c)(1)(B)(ii)) (Amended by stats. 2019, ch. 666 (AB 1763)) 70 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Density Bonus Law (Amendments) 100% Affordable Projects – Additional Mandates • Even Higher Density Bonus: • No “Sliding Scale” Percentage • Bonus = 80% of Number of Low Income Units • If within ½ Mile of “Major Transit Stop” (Pub. Res. Code § 21155), NO Maximum Control On Density (Gov. Code § 65915, subd. (f)(3)(D)) (Amended by stats. 2019, ch. 666 (AB 1763)) Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Density Bonus Law (Amendments) 100% Affordable Projects – Additional Mandates • More Incentives and Concessions: • Entitled up to 4 • If within ½ Mile of “Major Transit Stop,” Entitled to Up To 3 Additional Stories or 33 Feet 3/4/2020 25 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Density Bonus Law (Amendments) 100% Affordable Projects – Additional Mandates • Incentives and Concessions: o Reduction in Site Development Standards, o Mixed Use Approval, o Design Modifications, Etc., o NOT REQUIRED to be City Financial Assistance. (Gov. Code § 65915, subds. (d)(2)(D), (k)) (Amended by stats. 2019, ch. 666 (AB 1763)) 73 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Density Bonus Law (Amendments) 100% Affordable Projects – Additional Mandates • Waivers or Reductions of Development Standards: • Includes Set Backs, Density, Height Restrictions, Etc. • Not Required UNLESS: Prevent Construction of Project Burden on City = Adverse Impact on Health/Safety • Attorney’s Fees If Applicant Successful (Gov. Code § 65915, subd. (e)(1) & (3)) (Amended by stats. 2019, ch. 666 (AB 1763)) Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Density Bonus Law (Amendments) 100% Rental & Special Use Projects – Parking Exemptions • No Minimum Vehicular Parking Requirement • Project Meets Criteria: – Consists Solely of Rental Units (excluding Manager Unit(s)) – For Lower Income Households at Affordable Housing Costs 75 3/4/2020 26 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Density Bonus Law (Amendments) – Project is Either: • Special Needs Housing, or • Supportive Housing – Special Needs Housing Must Have: • Paratransit Service • Unobstructed Access (½ Mile to Bus Route) (Gov. Code § 65915, subd. (p)(4)) (Amended by stats. 2019, ch. 666 (AB 1763)) 76 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com QUESTIONS? POWER POINTS PLANNING COMMISSION MEETING MAY 12, 2020 Planning Commission Meeting  May 12, 2020 1 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Planning Commission May 12, 2020 at 5 p.m. Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Housing Legislation Summary Presented to City of La Quinta Planning Commission City Attorney’s Office, Bill Ihrke Rutan & Tucker, LLP May 2020 1 2 Planning Commission Meeting  May 12, 2020 2 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Refresher on ADU Lingo Accessory Dwelling Unit (ADU) = attached or detached dwelling unit that provides independent living facilities for 1 or more persons and is located on a lot with existing or proposed primary single family (SF) or multifamily (new) dwelling. Includes permanent provisions for living, sleeping, eating, cooking and sanitation. Includes efficiencies (Health & Safety § 17958.1) and manufactured homes (Health & Safety § 18007). 3 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Refresher on ADU Lingo Junior Accessory Dwelling Unit (JADU) = dwelling unit of no more than 500 sf, contained entirely within a SF home with either separate or shared sanitation facilities. 4 3 4 Planning Commission Meeting  May 12, 2020 3 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com 5-year Experiment..... ADU law to remain in effect until 1-1-2025 § 65852.2(o) Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com ADUs/JADUs 6 Deadline for acting on completed applications cut in half starting Jan. 1 Complete applications for ADU/JADU must be approved ministerially within 60 days rather than 120 days Exception: No primary structure exists No action = automatic approval if no enforceable local ordinance § 65852.2(a)(3)**All references are to Government Code unless otherwise stated 5 6 Planning Commission Meeting  May 12, 2020 4 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Local Regulation of ADU/JADU Severely Restricted as of January 1 • Local ordinance “may” be adopted. Not mandatory. Worth it? • It will only apply when you are not dealing with the 4 categories of by-right/building permit only ADUs/JADUs (discussed later). • Ordinance must generally allow ADUs in areas zoned for SF or multifamily use. • City may limit areas for ADUs based only on adequacy of water/sewer service or traffic flow/public safety. • Cannot mandate owner-occupancy. Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Local Regulation of ADU/JADU Severely Restricted as of January 1 • As revised, subsection (a)(1) states that the City may .... – “Impose standards on accessory dwelling units that include, but are not limited to, parking, height, setback, landscape, architectural review, maximum size of a unit, and standards that prevent adverse impacts on any real property that is listed in the California Register of Historic Resources. These standards shall not include requirements on minimum lot size.” • But then the following subsections severely cut back what can be imposed. 7 8 Planning Commission Meeting  May 12, 2020 5 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Local Regulation of ADU/JADU Severely Restricted as of January 1 • No minimum lot size may be included. • Cannot impose lot coverage limitations/FAR that would prevent 800 sq ft ADU that is 16 ft in height, with at least 4 ft rear/side yard setback. • No minimum size standard that would prohibit efficiency (150 sq ft). • No maximum size standard that would preclude 850 sq ft or 1000 sq ft for 2-bd ADU. • No more than 4 ft side/rear yard setback (front yard ok). • Cannot require fire sprinklers unless required for primary unit. Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Local Regulation of ADU/JADU Severely Restricted as of January 1 § 65852.2 (a) outlines the most restrictive standards (that don’t apply to the 4 categories of automatically permitted units discussed below -- not governed by local ordinance) § 65852.2(a)(6) “No other local ordinance, policy, or regulation shall be the basis for the delay or denial of building permit.” § 65852(a)(5) Option: City may require that ADUs only be rented for 30+ days [Note –short-term rental must be prohibited for the “Building Permit Only” units, discussed below] 9 10 Planning Commission Meeting  May 12, 2020 6 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Local Regulation of ADU/JADU Severely Restricted as of January 1 Local Parking Standards were already cut back, now more so... New – local ordinance cannot require replacement parking when parking area converted to ADU. § 65852.2(a)(1)(D)(xi). Clarified – can’t impose any parking requirement if unit within ½ mile walking distance to public transit, which includes bus stop or train station. Carried forward, among others: can’t impose requirement when ADU is part of existing or proposed primary or accessory structure. Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com 12 If City’s ordinance fails to meet any of the new requirements (e.g., if it has a minimum lot size) it “shall be null and void and [the city] shall thereafter apply the standards established in this subdivision for approval of accessory dwelling units, unless and until the agency adopts an ordinance that complies with this subdivision. § 65852.2(a)(4) Interpreted (at least by some) to mean it voids the whole ordinance. Effect on City’s Existing Ordinance 11 12 Planning Commission Meeting  May 12, 2020 7 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com CEQA Clearance for Ordinance Amendment? What about all the GHG/VMT from additional units?? PRC § 21080.17 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Ordinance oversight by HCD 14 If City adopts ordinance to comply with new law (old ordinance will not be in compliance), must submit to HCD for compliance review within 60 days of adoption. Failure to address HCD comments/concerns may lead to notification by HCD to Attorney General that City is violation the law. § 65852.2(h) 13 14 Planning Commission Meeting  May 12, 2020 8 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com 4 New Categories of ADU/JADU by BUILDING PERMIT ONLY (Regardless of what your ordinance says!) “perhaps the most significant change of all” – CA Renters Legal Advocacy These apply in all residential AND MIXED-USE zones. § 65852.2(e) Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Category 1 A (Mostly) Contained Unit 1 ADU or JADU per lot with existing or proposed SF home, if it satisfies all of the following: – Unit is within space of SF home or accessory structure + up to 150 sq ft expansion for accommodating ingress/egress – Unit has exterior access from SF home – Side/rear setbacks sufficient for fire/safety – If JADU, meets requirements of § 65852.22 § 65852.2(e)(1)(A) 16 15 16 Planning Commission Meeting  May 12, 2020 9 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Category 2 The Twofer – Detach ADU + JADU • 1 detached, new construction ADU with existing or new SF home – Must be able to provide 4-ft rear/side yard setback – City may limit to 800 sq ft and 16 ft. in height • Above detached ADU can be COMBINED with JADU that meets Category 1 requirement, for a total of 3 units on lot. • § 65852.2(e)(1)(B) 17 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com 18 17 18 Planning Commission Meeting  May 12, 2020 10 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Category 3 The Multifamily Boiler Room Option! • Existing multifamily may convert portions not used as livable spaces “including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages.” • Space must comply with state building standards for dwellings. • City “shall” allow at least 1 ADU, and may allow up to 25% of existing units. • § 65852.2(e)(1)(C) 19 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Category 4 Multifamily Detached ADUs • Two DETACHED ADUs can be added on lot with multifamily. • Can’t exceed 16 ft. in height. • Can’t encroach within 4 ft. side/rear yard setback. • § 65852.2(e)(1)(D) 20 19 20 Planning Commission Meeting  May 12, 2020 11 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Special Rules for “Building Permit only” Categories 1-4 • City can’t require correction of non-conforming zoning conditions. Note – this is NOT restricted to LEGAL nonconforming conditions. • City can’t require fire sprinklers unless main structure require to have them. • City MUST require that all rentals be more than 30 days. Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Changes to the JADU requirements • Clarified that a JADU can be proposed for either an existing or a proposed SF dwelling • Deleted the requirement of sink • Deleted voltage requirement for cooking appliances • Reduced processing time to 60 days 22 21 22 Planning Commission Meeting  May 12, 2020 12 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com ADU/JADU Mitigation Fee Act • Mitigation Fee Act & Quimby – No fees on ADUs under 750 sq ft – ADUs over 750 sq ft – charged proportionally in relation to sq ft of primary unit 23 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com ADU Utility Connections & Fees – Not considered “a new residential use” if SF home already exists for purposes of connection/capacity charges. – A Category 1 unit (mostly within existing SF home), applicant’s not required to install new/separate utility connection for unit, and no fee or capacity charge permitted. – For any ADU other than Category 1, new/separate utility connection may be required and may be subject to proportionate fee, based upon sq ft or number of fixtures. 24 23 24 Planning Commission Meeting  May 12, 2020 13 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Timing of Certificates of Occupancies When being constructed together, City can’t issue C of O for ADU before issuing one for primary dwelling. § 65852.2(k) 25 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com 26 Owners of ADUs built before 1/1/2020, or built after that date in city with noncompliant ADU ordinance at the time of construction, may request a 5-year delay in Code Enforcement unless correcting the violation is necessary to protect health and safety. Notice of violation must include notice of right to request delay! Gov’t § 65852.2(n); H&S § 17980.12 “Statewide amnesty program for unpermitted ADUs” Impacts on Code Enforcement until 2025 25 26 Planning Commission Meeting  May 12, 2020 14 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com 27 HOAs now limited. AB 670: CC&R’s cannot “effectively prohibit or unreasonably restrict” ADUs. HOA may only impose “reasonable restrictions” if they don’t unreasonably increase costs or effectively prohibit construction. Civ. Code § 4751 What about HOA? Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Impact on Existing Deed Restrictions? • Legislation is silent on whether existing owner occupancy deed restrictions must be removed • Civil Code 4751 might invalidate: (a) Any covenant, restriction, or condition contained in any deed, contract, ... or other instrument affecting the transfer or sale of any interest in a planned development, and any provision of a governing document, that either effectively prohibits or unreasonably restricts the ... use of an accessory dwelling unit or junior accessory dwelling unit on a lot zoned for single-family residential use that meets the requirements of Section 65852.2 or 65852.22 of the Government Code, is void and unenforceable. 28 27 28 Planning Commission Meeting  May 12, 2020 15 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com ADUs & Housing Elements Housing Elements must now include “a plan that incentivizes and promotes the creation of accessory dwelling units that can be offered at affordable rent.” AB 671 - § 65583(c)(7) City may count ADUs for purposes of identifying sites for housing per § 65583.1(a), subject to HCD approval. § 65852.2(m) Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Selling ADUs separate from primary dwelling? AB 587 – Adds § 65852.26 that allows units built by “qualified nonprofit” (e.g., Habitat For Humanity) to be sold/conveyed to low or moderate income persons, provided certain requirements are satisfied. Requires recorded agreements and covenants that impose: • 45-year affordability requirements • certain resale/ restrictions • separate utility connections • principal residency requirements 29 30 Planning Commission Meeting  May 12, 2020 16 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com “OLD” & “NEW” NO-NET LOSS NOW ON TO... 31 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Existing “No Net Loss” Law Effective Jan. 1, 2019 - § 65863 already imposed: • Restrictions on reduction of density unless certain findings were made, including remaining sites identified in HE were sufficient to meet RHNA • Restrictions on approving individual projects with less than the density than units identified in the HE unless findings made • Requirement to identify additional sites for housing to cover reductions • Requirement to “identify and make available” within 180 days additional adequate sites if agency approves lower density project and finds remaining sites are not adequate to meet RHNA 31 32 Planning Commission Meeting  May 12, 2020 17 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com HERE COMES Another 5-year experiment ... • No net loss on steroids! 33 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com SB 330 – NEW No Net Loss of Planned or Actual Units • § 66300 added: • Applies to “Affected Cities” – cities determined to be in “urbanized area or urban cluster” • LQ qualifies • Includes voters – initiative power regulated 34 33 34 Planning Commission Meeting  May 12, 2020 18 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com SB 330 – NEW No Net Loss of Planned or Actual Units • Fundamental purposes: – Prevent future planning/across the board regulations that will reduce housing – Preclude/limit individual projects that will result in fewer units due to demolition • Kicks in on housing development projects that don’t have a completed project application before Jan. 1 2020 – Extreme limitations on demolition of “protected units” 35 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com SB 330 – NEW No Net Loss of Planned Units • Per § 66300(b), on land where housing is permitted, City can’t enact “development policy, standard, or condition” that would have the following effects: – Reduce intensity of land use per GP, SP, zoning below Jan. 1, 2018 levels (unless HCD approves) – “Less intense use” includes • reductions to height, density, FAR • increases in open space or lot size requirements • new/increased set backs, minimum frontage or maximum lot coverage • “or anything that would lessen the intensity of housing” 36 35 36 Planning Commission Meeting  May 12, 2020 19 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com SB 330 – NEW No Net Loss of Planned Units • Per § 66300(b), on land where housing is permitted, City can’t enact “development policy, standard, or condition” that would have the following effects: – Impose moratorium on housing development unless imminent threat to health & safety – Enforce ordinance imposing moratorium on housing unless approved by HCD – Impose/enforce design standards established after 1-1-2020 that are not objective – Establishing/implementing numeric caps on permits/units/limits on population 37 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com SB 330 – NEW No Net Loss of Planned Units • City can decrease intensity if it concurrently increases intensity elsewhere so no net loss in residential capacity (66300(i)) • Any provision enacted after Jan. 1, 2020 not consistent with above is deemed void 38 City can impose restrictions on “commercial use” of land designated for residential use, e.g., short term rentals (66300(c)) 37 38 Planning Commission Meeting  May 12, 2020 20 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com SB 330 – NEW No Net Loss of Actual Units • On project level [§ 66300(d)], City can’t approve a “housing development project” [more than one unit] that: – Demolishes existing dwelling units unless it replaces with at least as many 39 • Severe restriction is the demolition of “protected units” (e.g., affordable), including replacement requirements Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com SB 330 AND THE HOUSING ACCOUNTABILITY ACT (HAA) Next... 40 39 40 Planning Commission Meeting  May 12, 2020 21 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Housing Accountability Act • Housing Accountability Act or “Anti-NIMBY Act” (Gov. Code § 65589.5) amended again • Applies to “housing development projects” – Residential or mixed use with 2/3 residential square footage –Likely does not apply to the development of a single family home – Single family home and ADU? 41 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com 2018 Amendments 42 • The HAA had historically placed a number of restrictions on a local agency’s ability to disprove both affordable housing and market rate housing projects • 2018 amendments made a number of changes to further limit local discretion 41 42 Planning Commission Meeting  May 12, 2020 22 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com 2018 Amendments To deny a housing development project (or impose a condition reducing density), agency must either: • Determine project does not comply with objective general plan, zoning or subdivision criteria or standards within 1-2 months of a completed application (otherwise deemed consistent) OR Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com 2018 Amendments Find, by a preponderance of the evidence, that project would have a specific adverse impact on public health or safety that can’t be mitigated: • previously substantial evidence test • “specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete 44 43 44 Planning Commission Meeting  May 12, 2020 23 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com 2018 Amendments Additional changes: • Added additional penalty provisions, including fines for bad faith disapprovals • Attorneys fees for housing groups Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com New Amendments Effective January 1, 2020 SB 330 further amended HAA: • Freezes all existing regulations and impact fees when certain enumerated information (a “preliminary application”) is submitted for a housing development project • No City action required to “deem” application complete 45 46 Planning Commission Meeting  May 12, 2020 24 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Vesting Regulations Upon Complete “Preliminary Application” • “Deemed complete” is now defined as the submittal of a “preliminary application.” • Project is only subject to ordinances, policies, and standards adopted and in effect when the “preliminary application” was submitted. • “Preliminary application” is a new defined term in Permit Streamlining Act. (§ 65941.1) 47 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Contents Required for Preliminary Application • Application deemed complete upon receipt of: – Specific location/legal description – Existing uses/physical condition of the site – Site plan – Number of units and square feet of residential and nonresidential development, and proposed parking spaces 48 47 48 Planning Commission Meeting  May 12, 2020 25 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Contents Required for Preliminary Application Required Information (continued): – Proposed point sources of air or water pollution – Species of concern known to occur on the site – Certain information about potential hazards – Any historic or cultural resources – Any density bonus requests 49 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Contents Required for Preliminary Application Required Information (continued): – Whether any Subdivision Map Act approvals are needed – Certain information related to the coastal zone – Whether any residential units will be demolished – Location of any streams or public easements 50 49 50 Planning Commission Meeting  May 12, 2020 26 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Limitations to Vesting The following may still be imposed after application deemed complete: • Automatic fee increases based on independent cost indices referenced in a city or county’s fee ordinance • Regulation is necessary to mitigate or avoid a health or safety impact and there is no feasible alternative (preponderance of evidence) • Regulation necessary to avoid or substantially lessen a project impact under CEQA 51 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Limitations to Vesting Continued Vesting “expires” when the project has not commenced construction within 2.5 years of “final approval” or is revised to change the number of residential units or square footage of construction by 20% or more 52 51 52 Planning Commission Meeting  May 12, 2020 27 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Limitations to Vesting Continued • Later enacted regulations of use and occupancy of residential units such as rent control and limitations on short term rentals still apply to housing development projects 53 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Additional HAA Amendments • Clarifies “objective” to mean “involving no personal or subjective judgment by a public official and being uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official.” • “Lower density” includes any conditions that have the same effect or impact on the ability of the project to provide housing. 54 53 54 Planning Commission Meeting  May 12, 2020 28 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Additional HAA Amendments • Reorganizes provisions allowing challenge to enforce HAA by applicant, potential resident, or housing organization • Court required to order compliance in 60 days if a violation is found – Violation = “disapproved a housing development project complying with applicable, objective general plan and zoning standards and criteria, or imposed a condition that the project be developed at a lower density, without making the findings required by this section or without making findings supported by a preponderance of the evidence.” 55 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com HAA Does Not Exempt Projects from CEQA SB 330 did not affect § 65589.5(e), which states: • “Nothing in this section shall be construed to relieve the local agency from complying with” CEQA or the Coastal Act 56 55 56 Planning Commission Meeting  May 12, 2020 29 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com SB 330 AND THE PERMIT STREAMLINING ACT Some more changes... 57 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Permit Streamlining Act • Maximum of 5 public hearings where project complies with General Plan and zoning (§ 65905.5) • Deadline to act on project after EIR certified reduced from 120 to 90 days (§ 65950) – 60 days for certain affordable housing developments 58 57 58 Planning Commission Meeting  May 12, 2020 30 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Permit Streamlining Act Adds § 65913.10: • City must make “historic site” determination at the time the preliminary application is submitted, “[f]or purposes of any state or local law, ordinance, or regulation that requires the city or county to determine whether the site of a proposed housing development project is a historic site.” 59 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Permit Streamlining Act New § 65913.10: • Determination “remains valid” during pendency unless discovery made during grading/construction • Only applies to housing development projects (probably not SFH projects) • Does not “supersede, limit or otherwise modify” the requirements of CEQA or the Coastal Act 60 59 60 Planning Commission Meeting  May 12, 2020 31 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Permit Streamlining Act Amends § 65943: • City required to provide the applicant with an exhaustive list, in writing, of the items that were not complete within 30 days of application submittal – deemed complete if no written determination in 30 days • City may not request new information that was not listed in the initial incomplete letter during subsequent reviews of an incomplete application 61 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Permit Streamlining Act City must make copies of list of information required to be included in applications for housing development projects available both – in writing to applicants and anyone requesting it – publicly available on the agency’s website 62 61 62 Planning Commission Meeting  May 12, 2020 32 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com CHANGES TO THE DENSITY BONUS LAW ...and finally 63 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Density Bonus Law Concept and Existing Law If Applied For & Criteria Met, City MUST Grant: – Additional (Bonus) Market-Rate Units – Incentives and Concessions – Waivers or Reductions of Development Standards – Parking Concessions – Parking Allowances 64 63 64 Planning Commission Meeting  May 12, 2020 33 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Density Bonus Law (Review) • Criteria to trigger law: – Restrict Specified Percentages of Affordable Units or – Other Statutorily Specified Housing Uses • State Law Governs & City Ordinance Implements • Governing Statutes: Government Code § 65915 et seq. 65 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Density Bonus Law (Review) State Law Affordable Incomes • Extremely Low Income Households = 30% or Less than Area Median Income (AMI) • Very Low Income Households = 50% or Less AMI • Lower Income Households = 80% or Less AMI • Moderate Income Households = 120% or Less AMI • Housing & Community Dev. (HCD) Publishes Annually (See, Health & Saf. Code §§ 50050-50106) 65 66 Planning Commission Meeting  May 12, 2020 34 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Density Bonus Law (Review) State Law Affordable Rents and Purchase Prices • Maximum Affordable Rental Rates (Generally) Very Low = 30% x 50% AMI Low = 30% x 60% AMI Moderate = 30% x 110% AMI • Maximum Affordable Housing Costs (Generally) Very Low = 30% of 50% AMI Low = 30% of 70% AMI Moderate = Between 28% and 35% of Income x 110% AMI (Health & Saf. Code §§ 50052.5, 50053) Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Density Bonus Law (Review) Existing Law - Housing Projects Eligible for Density Bonus “Sliding Scale” Percentages for Affordable Units: • 10% of Units for Lower Income Households (80% AMI) • 5% of Units for Very Low Income Households (50% AMI) • 10% of Owner-Occupied Condo Units for Moderate Income Households (120% AMI) 68 67 68 Planning Commission Meeting  May 12, 2020 35 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Density Bonus Law (Review) Existing Law – Other Projects Eligible for Density Bonus • Senior Citizen Housing • Child Care Facilities • Special Needs Housing • Land Dedication • 20% of Units (bed + common area) for Lower Income College Students (with Priority for Homeless Students) (Gov. Code § 65915, subd. (b)(1)(A)-(F)) 69 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Density Bonus Law (Amendments) Starting Jan. 1, 2020 – Additional Eligible Housing Projects • 100% of Units for Lower Income Households o Allowance of up to 20% for Moderate Income Households o May Have Manager Unit(s) Too 69 70 Planning Commission Meeting  May 12, 2020 36 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Density Bonus Law (Amendments) 100% Affordable Projects – Additional Mandates • Specified Rental Rates: • At Least 20% of Units at Affordable Rent • Other Units at TCAC Low-Income Tax Credit Rates (Gov. Code § 65915, subd. (c)(1)(B)(ii)) (Amended by stats. 2019, ch. 666 (AB 1763)) 71 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Density Bonus Law (Amendments) 100% Affordable Projects – Additional Mandates • Even Higher Density Bonus: • No “Sliding Scale” Percentage • Bonus = 80% of Number of Low Income Units • If within ½ Mile of “Major Transit Stop” (Pub. Res. Code § 21155), NO Maximum Control On Density (Gov. Code § 65915, subd. (f)(3)(D)) (Amended by stats. 2019, ch. 666 (AB 1763)) 71 72 Planning Commission Meeting  May 12, 2020 37 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Density Bonus Law (Amendments) 100% Affordable Projects – Additional Mandates • More Incentives and Concessions: • Entitled up to 4 • If within ½ Mile of “Major Transit Stop,” Entitled to Up To 3 Additional Stories or 33 Feet Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Density Bonus Law (Amendments) 100% Affordable Projects – Additional Mandates • Incentives and Concessions: o Reduction in Site Development Standards, o Mixed Use Approval, o Design Modifications, Etc., o NOT REQUIRED to be City Financial Assistance. (Gov. Code § 65915, subds. (d)(2)(D), (k)) (Amended by stats. 2019, ch. 666 (AB 1763)) 74 73 74 Planning Commission Meeting  May 12, 2020 38 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Density Bonus Law (Amendments) 100% Affordable Projects – Additional Mandates • Waivers or Reductions of Development Standards: • Includes Set Backs, Density, Height Restrictions, Etc. • Not Required UNLESS: Prevent Construction of Project Burden on City = Adverse Impact on Health/Safety • Attorney’s Fees If Applicant Successful (Gov. Code § 65915, subd. (e)(1) & (3)) (Amended by stats. 2019, ch. 666 (AB 1763)) Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Density Bonus Law (Amendments) 100% Rental & Special Use Projects – Parking Exemptions • No Minimum Vehicular Parking Requirement • Project Meets Criteria: – Consists Solely of Rental Units (excluding Manager Unit(s)) – For Lower Income Households at Affordable Housing Costs 76 75 76 Planning Commission Meeting  May 12, 2020 39 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com Density Bonus Law (Amendments) – Project is Either: • Special Needs Housing, or • Supportive Housing – Special Needs Housing Must Have: • Paratransit Service • Unobstructed Access (½ Mile to Bus Route) (Gov. Code § 65915, subd. (p)(4)) (Amended by stats. 2019, ch. 666 (AB 1763)) 77 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com QUESTIONS? 77 78 Planning Commission Meeting  May 12, 2020 40 Rutan & Tucker, LLP | 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626 | 714-641-5100 | www.rutan.com 79