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HomeMy WebLinkAbout02-12-2025 PC Agenda Packet Planning Commission AGENDA Wednesday, February 12, 2025, 6:00 p.m. Council Chambers, 990 Palm Street, San Luis Obispo Planning Commission meetings can be viewed remotely on Channel 20, the City’s YouTube Channel, and on the City’s website under the Public Meeting Agendas web page. Attendees of City Council or Advisory Body meetings are eligible to receive one hour of complimentary parking; restrictions apply, visit Parking for Public Meetings for more details. INSTRUCTIONS FOR PUBLIC COMMENT: Public Comment prior to the meeting (must be received 3 hours in advance of the meeting): Mail - Delivered by the U.S. Postal Service. Address letters to the City Clerk's Office at 990 Palm Street, San Luis Obispo, California, 93401. Email - Submit Public Comments via email to advisorybodies@slocity.org. In the body of your email, please include the date of the meeting and the item number (if applicable). Emails will not be read aloud during the meeting. Voicemail - Call (805) 781-7164 and leave a voicemail. Please state and spell your name, the agenda item number you are calling about, and leave your comment. Verbal comments must be limited to 3 minutes. Voicemails will not be played during the meeting. *All correspondence will be archived and distributed to members, however, submissions received after the deadline may not be processed until the following day. Public Comment during the meeting: Meetings are held in-person. To provide public comment during the meeting, you must be present at the meeting location. Electronic Visual Aid Presentation. To conform with the City's Network Access and Use Policy, Chapter 1.3.8 of the Council Policies & Procedures Manual, members of the public who desire to utilize electronic visual aids to supplement their oral presentation must provide display-ready material to the City Clerk by 12:00 p.m. on the day of the meeting. Contact the City Clerk's Office at cityclerk@slocity.org or (805) 781-7114. Pages 1.CALL TO ORDER Chair Cooley will call the Regular Meeting of the Planning Commission to order. 2.PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA At this time, people may address the Commission about items not on the agenda. Comments are limited to three minutes per person. Items raised at this time are generally referred to staff and, if action by the Commission is necessary, may be scheduled for a future meeting. 3.CONSENT Matters appearing on the Consent Calendar are expected to be non- controversial and will be acted upon at one time. A member of the public may request the Planning Commission to pull an item for discussion. The public may comment on any and all items on the Consent Agenda within the three-minute time limit. 3.a CONSIDERATION OF MINUTES - JANUARY 22, 2025 PLANNING COMMISSION MINUTES 5 Recommendation: To approve the Planning Commission Minutes of January 22, 2025. 4.PUBLIC HEARING Note: Any court challenge to the action taken on public hearing items on this agenda may be limited to considering only those issues raised at the public hearing or in written correspondence delivered to the City of San Luis Obispo at, or prior to, the public hearing. If you wish to speak, please give your name and address for the record. Please limit your comments to three minutes; consultant and project presentations limited to six minutes. 4.a REVIEW OF PROPOSED AMENDMENTS TO TITLE 16 (SUBDIVISION REGULATIONS) AND TITLE 17 (ZONING REGULATIONS) (CODE-0031-2025) OF THE CITY’S MUNICIPAL CODE 9 Recommendation: Adopt the Draft Resolution, which recommends that the City Council introduce and adopt an Ordinance amending Title 16 (Subdivision Regulations) and Title 17 (Zoning Regulations) of the City’s Municipal Code regarding accessory dwelling units, junior accessory dwelling units, urban lot splits, and clarifications to regulations for affordable housing projects. 5.COMMENT AND DISCUSSION 5.a STAFF UPDATES AND AGENDA FORECAST Receive a brief update from Deputy Community Development Director Tyler Corey. 6.ADJOURNMENT The next Regular Meeting of the Planning Commission is scheduled for February 26, 2025 at 6:00 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo. LISTENING ASSISTIVE DEVICES for the hearing impaired--see the Clerk The City of San Luis Obispo wishes to make all of its public meetings accessible to the public. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to the City Clerk’s Office at (805) 781-7114 at least 48 hours before the meeting, if possible. Telecommunications Device for the Deaf (805) 781-7410. Planning Commission meetings are televised live on Charter Channel 20 and on the City's YouTube Channel: www.youtube.com/CityofSanLuisObispo. Agenda related writings or documents provided to the Planning Commission are available for public inspection on the City’s website: https://www.slocity.org/government/mayor-and-city-council/agendas-and- minutes. 1 Planning Commission Minutes January 22, 2025, 6:00 p.m. Council Chambers, 990 Palm Street, San Luis Obispo Planning Commissioners Present: Commissioner Sheryl Flores, Commissioner Bob Jorgensen, Commissioner Steve Kahn, Commissioner Juan Munoz-Morris, Vice Chair Dave Houghton, Chair Justin Cooley Planning Commissioners Absent: Commissioner Eric Tolle City Staff Present: Community Development Director Timmi Tway, Deputy Community Development Director Tyler Corey, Deputy City Attorney Sadie Symens, Megan Wilbanks, Deputy City Clerk _____________________________________________________________________ 1. CALL TO ORDER A Regular Meeting of the San Luis Obispo Planning Commission was called to order on January 22, 2025 at 6:00 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo, by Chair Cooley. 2. PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA Public Comment: None --End of Public Comment-- 3. CONSENT 3.a CONSIDERATION OF MINUTES - DECEMBER 11, 2024 PLANNING COMMISSION MINUTES Motion By Commissioner Flores Second By Vice Chair Houghton To approve the Planning Commission Minutes of December 11, 2024. Ayes (6): Commissioner Flores, Commissioner Jorgensen, Commissioner Kahn, Commissioner Munoz-Morris, Vice Chair Houghton, Chair Cooley Absent (1): Commissioner Tolle CARRIED (6 to 0) Page 5 of 64 2 4. PUBLIC HEARING 4.a REQUEST TO CONSIDER FIVE SITES FOR THE ROTATING OVERNIGHT SAFE PARKING PILOT PROGRAM (DIR-0612-2024; DIR- 0639-2024; DIR-0640-2024; DIR-0641-2024; DIR-0642-2024) No Commissioners reported having Ex Parte Communications regarding the project. Homelessness Response Manager Daisy Wiberg and Housing Coordinator David Amini presented the staff report and responded to Commission inquiries. Applicant representative, Jack Lahey with CAPSLO, provided a brief overview of the project and responded to questions raised. Chair Cooley opened the Public Hearing Public Comment: Young Su McCann Linda Belch John Townsend Tayler Simpson Ilene Brill Anne Wyatt John Olejnik Mark Lamor --End of Public Comment-- Chair Cooley closed the Public Hearing Motion By Commissioner Munoz-Morris Second By Commissioner Flores Adopt the Draft Resolution approving five sites for the Rotating Overnight Safe Parking Pilot Program, based on findings and subject to conditions of approval. "A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF SAN LUIS OBISPO APPROVING FIVE SITES FOR THE ROTATING OVERNIGHT SAFE PARKING PILOT PROGRAM THAT PROVIDES INDIVIDUALS EXPERIENCING HOMELESSNESS A SAFE PLACE TO TEMPORARILY PARK A VEHICLE OVERNIGHT TO FACILITATE THE TRANSITION TO PERMANENT HOUSING, WITH STATUTORY AND CATEGORICAL EXEMPTION FROM ENVIRONMENTAL REVIEW; Page 6 of 64 3 APPLICANT CAPSLO; LOCATIONS 1545 CALLE JOAQUIN, 25 PRADO ROAD, 680 INDUSTRIAL WAY, 2075 JOHNSON AVE, AND 317 FOOTHILL BLVD" Ayes (6): Commissioner Flores, Commissioner Jorgensen, Commissioner Kahn, Commissioner Munoz-Morris, Vice Chair Houghton, and Chair Cooley Absent (1): Commissioner Tolle CARRIED (6 to 0) 5. COMMENT AND DISCUSSION 5.a STAFF UPDATES AND AGENDA FORECAST Deputy Community Development Director Tyler Corey provided the following update of upcoming projects:  Tentatively scheduled for the February 12, 2025 meeting, is review of a Draft Ordinance to update the Zoning Regulations to make the City's Accessory Dwelling Unit regulations consistent with recent legislative changes to State Law.  Tentatively scheduled for the February 26, 2025 meeting, is review of the General Plan Annual Report and proposed updates to the Airport Area Specific Plan (SPEC-0457-2023, 120 Venture) to allow mixed-use development where appropriate and consistent with the Airport Land Use Plan. Commissioner Kahn noted that he will be absent for the February 26th meeting. 6. ADJOURNMENT The meeting was adjourned at 7:39 p.m. The next Regular Meeting of the Planning Commission is scheduled for February 12, 2025 at 6:00 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo. _________________________ APPROVED BY PLANNING COMMISSION: XX/XX/2025 Page 7 of 64 Page 8 of 64 PLANNING COMMISSION AGENDA REPORT SUBJECT: (CODE-0031-2025) REVIEW OF PROPOSED AMENDMENTS TO TITLE 16 (SUBDIVISION REGULATIONS) AND TITLE 17 (ZONING REGULATIONS) OF THE CITY’S MUNICIPAL CODE. BY: Ethan Estrada, Assistant Planner FROM: Tyler Corey, Deputy Director David Amini, Housing Coordinator Phone Number: (805) 781-7169 Phone Number: (805) 781-7576 Email: tcorey@slocity.org Email: ejestrad@slocity.org RECOMMENDATION Adopt the Draft Resolution, which recommends that the City Council introduce and adopt an Ordinance amending Title 16 (Subdivision Regulations) and Title 17 (Zoning Regulations) of the City’s Municipal Code regarding accessory dwelling units, junior accessory dwelling units, urban lot splits, and clarifications to regulations for affordable housing projects. 1.0 COMMISSION'S PURVIEW The recommended amendments are being brought before the Planning Commission to provide Commissioners with an opportunity to evaluate the proposed code amendments and make a recommendation to the City Council. Draft Title 16 and Title 17 amendments are included in Attachments 1 and 2. Formatting of the amendments include strikethrough on text proposed to be deleted, and new text is underlined, so that changes are clear to the public and the Commissioners. 2.0 SUMMARY In 2024 and at the beginning of 2025, numerous bills implementing changes to state law surrounding accessory dwelling units (ADUs), junior accessory dwelling units (JADUs), and urban lot splits have gone into effect, with the intention of streamlining and incentivizing housing production statewide. The core of this update to the City’s Municipal Code is to incorporate the provisions of this new legislation as required by state law. In September 2024, along with numerous other cities in the state, the Community Development Department (CDD) received a letter from the California Department of Housing and Community Development (HCD) that outlined various inconsistencies between the City’s ADU ordinance and state law, specifically new laws regarding ADUs. HCD is requiring that the City either revise and amend the Zoning Regulations to correct these inconsistencies or provide how the Zoning Regulations are already consistent with state law. CDD provided a response to HCD outlining what amendments will be made for consistency and what items are already consistent (Attachment D). Meeting Date: 2/12/2025 Item Number: 4a Time Estimate: 60 minutes Page 9 of 64 Item 4a [CODE-0031-2025] Planning Commission Report – 2/12/2025 In 2024, the City received a Prohousing designation from HCD, which recognizes cities that implement local policies to remove barriers to new housing. This designation allows for the City to receive priority processing and additional points when applying f or state funding programs. Staff continues to reevaluate the Zoning Regulations and our development review processes to identify any possible barriers to be addressed in an update like this one. In conjunction with efforts to bring the City’s Municipal Co de into compliance with state law, staff has continued to evaluate the efficacy of existing policies and procedures instituted through said code. Based on HCD correspondence and community feedback, this update contains several miscellaneous amendments to t he Zoning Regulations that streamline the review process for certain ADU and JADU conversions and clarifies use regulations for affordable housing projects. This update also contains an amendment to the Subdivision Regulations to strengthen and clarify language for car share vehicles and services. 3.0 NEW STATE LEGISLATION Provided below is a brief overview of state legislation that went into effect in 2024 or at the beginning of 2025 that this update specifically addresses and integrates into the City’s Municipal Code. The provisions introduced or altered by this legislation require amendments to Chapters 16.15 and 17.86 of the City’s Municipal Code. These specific amendments can be viewed in Attachments B and C, respectively. Senate Bill No. 477 Senate Bill No. 477 reorganized various state code provisions relating to the creation and regulation of ADUs and JADUs, consolidating them into Chapter 13 of Division 1 of Title 7 of California’s Government Code (sections 66310 through 66342). This update would correct references to the Government Code in the City’s Municipal Code by either referencing state law generally or the specific Government Code Section number when necessary. Senate Bill No. 1211 Senate Bill No. 1211 introduced severa l changes to Government Codes 66313, 66314, and 66323, which deal with state ADU law. This bill prohibits local agencies from requiring the replacement of off-street parking spaces if an uncovered parking space is demolished in conjunction with the construction of, or conversion to, an ADU. It also prohibits local agencies from imposing any objective development or design standard not authorized by the provisions listed in state ADU law and provides a definition for the phrase “livable space” as being “a space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation.” Lastly, this bill allows up to eight detached ADUs to be developed on a lot with an existing multi -family dwelling, provided that the number of ADUs does not exceed the number of existing units on the lot. Page 10 of 64 Item 4a [CODE-0031-2025] Planning Commission Report – 2/12/2025 Senate Bill No. 450 Senate Bill No. 450 introduced several changes to Government Codes 65852.21 and 66411.7, which deal with urban lot splits and resultant residential development. This bill removes a local agency’s ability to deny a proposed housing development associated with an urban lot split on the basis that it would have a specific, adverse impact on the physical environment. This bill also specifies that a local agency must consider and approve or deny a proposed housing development project associated with an urban lot split within 60 days of receiving a complete application. If the local agency denies the application, they are required to provide a list of items that are defective or deficient and a description of how they can be resolved by the applicant. Senate Bill No. 684 Senate Bill No. 684, now existing under Government Codes 65852.28, 65913.4.5, and 66499.41, allows the subdivision of a multi-family zoned lot less than 5-acres in size into 10 or fewer lots at a minimum lot size of 600 square feet for the subsequent development of 10 or fewer residential units. The number of lots and the number of residential units are not mutually exclusive. For example, a property may be subdivided into four lots while still being allowed to develop up to 10 residential units. The provisions introduced under this bill are discussed in more detail below. Subdivisions under Government Code 66499.41 are referred to in this update as “major urban lot splits.” Senate Bill No. 1123 Effective July 1, 2025, Senate Bill No. 1123 will implement several changes to the provisions introduced under Senate Bill No. 684. This bill expands the types of lots eligible for major urban lot splits and adds new requirements and allowances for these developments 4.0 ACCESSORY DWELLING UNITS Letter from California’s Department of Housing and Community Development In 2024, the City’s Community Development Department (CDD) received a letter from California’s Department of Housing and Community Development (HCD)1 outlining inconsistencies between the City’s Municipal Code and California’s Government Code regarding accessory dwelling units (ADU). CDD provided a response to the 13 items identified by HCD that described how we plan to amend the Municipal Code or how the code is already in compliance with state law. Both HCD’s letter and CDD’s response can be reviewed in Attachment D. Below is a brief overview of the items identified by HCD that will require amendments to Chapter 17.86 of the City’s Municipal Code. These specific amendments can be viewed in Attachment C. 1HCD has statutory authority to review local agencies’ ADU ordinances and to enforce State ADU Laws (see Govt. Code §65585.) Page 11 of 64 Item 4a [CODE-0031-2025] Planning Commission Report – 2/12/2025  Statutory Numbering: Senate Bill 477 restructured and relocated state ADU code to Chapter 13, of Division 1, of Title 7, of the Government Code. This means that existing references to state code pertaining to ADUs are now outdated. This update contains numerous changes to statutory references throughout the City’s Municipal Code.  Zones: The City’s existing Zoning Regulations permit ADUs in the following zones: AG, C/OS, R-1, R-2, R-3, R-4, and O. HCD claimed that this list is not inclusive of all zones that would allow ADUs as described under Government Code 66314, which states that ADUs are to be allowed in a lot zoned for single-family or multi-family dwellings and has a proposed or existing dwelling. This update would amend the Zoning Regulations to include the C-N, C-C, C-R, C-D, C-T, C-S, and M zones in this existing list of zones where ADUs are permitted. (Attachment C – 17.86.020(B)(3))  Mixed Use: The City’s existing Zoning Regulations state that structures containing both commercial and residential uses are not considered residential structures, prohibiting the development of ADUs on such properties. Government Code 66323 states that ADUs described under that section are to be permitted in residential or mixed-use zones with proposed or existing single-family or multi-family dwellings. Additionally, Government Code 66314 permits ADUs on any lot zoned to allow residential use with a proposed or existing dwelling. This update would remove this description of mixed-use structures from the Zoning Regulations. (Attachment C – 17.86.020(B)(3))  Max Sizes: The City’s existing Zoning Regulations specify gross floor area limits as allowed by the Government Code. However, these regulations do not account for ADUs that qualify under Government Code 66323, which prohibits local agencies from imposing specific gross floor area limitations on certain ADU configurations described under said section. This update would add language referencing section 66323 to the Zoning Regulations pertaining to gross floor area limits. (Attachment C – 17.86.020(B)(3))  ADU Allowance: The City’s existing Zoning Regulations state that only one ADU is permitted per lot. They also state that the provisions of Government Code 65852.2(e) (now 66323) cannot be combined with other ADU provisions outlined in the City’s Municipal Code. This conflicts with Government Code 66323 that states “a local agency must ministerially approve an application for a building permit… to create any of the following: (1) One accessory dwelling unit and one junior…” The use of the word “any,” followed by an enumeration of by-right ADU types permitted, implies that any of the said types can be combined. This permits a property zoned for a single-family residence, that meets specified requirements, to create one converted ADU, one detached, new construction ADU, and one JADU via Government Code 66323. This update would remove language from the Zoning Regulations that limit the number of ADUs permitted on a residential property. (Attachment C – 17.86.020(B)(3))  Sprinklers: The City’s existing Zoning Regulations state that fire sprinklers are not required in an ADU if fire sprinklers are not required in the existing primary residence. Government Code 66314 supports this, but also stipulates that the construction of an ADU will not trigger a requirement for fire sprinklers to be installed in the existing primary residence. This update would add this additional fire sprinkler language to the Zoning Regulations (Attachment C - 17.86.020(B)(3)). Page 12 of 64 Item 4a [CODE-0031-2025] Planning Commission Report – 2/12/2025  Denial Requirements: Government Code 66317 outlines the required timeline for a local agency to review and provide a decision on an ADU application, as well as guidelines for a local agency to follow in the event of application denial. These guidelines require a local agency to provide a full set of comments to the applicant with a list of items that a re defective or deficient and a description of how those items can be resolved. The City’s existing Zoning Regulations include language for the required timeline but does not address application denials. This update would add this language. (Attachment C – 17.86.020(B)(4))  JADUs on Multiple Single-Family Lots: The City’s existing Zoning Regulations state that a junior accessory dwelling unit (JADU) may be located on a lot that contains one existing or proposed single-family structure. Government Code 66333 states “one [JADU] per residential lot zoned for single-family residences with a single-family residence built, or proposed to be built, on the lot.” The use of “a” implies that one JADU may be allowed on a lot that contains more than one single-family structure, which the Zoning Regulations restricts. This update would change the Zoning Regulations to address this discrepancy. (Attachment C – 17.86.020(C)(2))  JADUs, Sanitation, and Interior Entry: The City’s existing Zoning Regulations state that an interior connection to the residence that a JADU exists within may be maintained or removed. Government Code 66333 specifies that JADUs that do not contain a separate bathroom must maintain an interior entrance to the main residence in addition to the required separate exterior entrance. This update would add this language to the Zoning Regulations. (Attachment C – 17.86.020(C)(3))  Short Term Rental: HCD asserted that because Government Code 66333 does not provide language for rental term limits for JADUs, the City’s Zoning Regulations are inconsistent with state law on the matter. The City responded to HCD, stating its intent to preserve this element of the City’s Municipal Code to ensure housing affordability as well as consistency with other elements of the code regarding ADUs. The City further expressed that ADUs and JADUs represent a significant portion of the City’s new housing stock, and amending the code as suggested by HCD would reduce a considerable portion of available housing in favor of short-term rental income for investors. Government Code 66333 does not expressly prohibit the City from imposing minimum rental terms for JADUs, and the City believes its interpretation is consistent with state law and furthers the state law’s purpose of housing production. Additional Amendments In addition to the changes described above, staff p roposes several miscellaneous amendments related to ADUs. These changes were identified as possible barriers to housing development or possible inconsistencies with state law that were not identified by HCD. These proposed amendments are as follows:  ADU Design: The Zoning Regulations require that new ADUs match the primary residence in style, form, and materials. As state law continues to implement objective design standards regarding ADUs, these specific requirements are subjective in nature, challenging to implement, and do not always result in the best building design. This update would remove this language from the Zoning Regulations. (Attachment C – 17.86.020(B)(3)) Page 13 of 64 Item 4a [CODE-0031-2025] Planning Commission Report – 2/12/2025  Separate Conveyance: The Zoning Regulations currently restrict the conveyance and sale of ADUs separate from the primary residence, which is inconsistent with state ADU law. This update would add references to state ADU law to account for instances in which ADUs can be separately conveyed and sold in the Zoning Regulations. (Attachment C – 17.86.020(B)(2)) 5.0 URBAN LOT SPLITS Originally introduced under Senate Bill No. 9, now referenced under California Government Code Sections 65852.21 and 66411.7, urban lot splits allow for the subdivision and subsequent development of a single-family residential lot (zoned R-1) into two lots of relatively equal size, each entitled to a maximum of two residential units. Sections 65852.21 and 66411.7 also provide a streamlined subdivision and development review process prohibiting discretionary review. The City created Chapter 16.15 (Urban Lot Splits) under Title 16 (Subdivision Regulations) of its Municipal Code to implement these provisions as required by state law. In 2024, the state legislature passed Senate Bill No. 450 (Section 3.0 New State Legislation), altering the provisions of these sections. This update would incorporate the changes presented in said legislation , which can be viewed in Attachment B. Urban lot splits, as they are described in the City’s Municipal Code, are relegated to R-1 zoned properties. In 2024, the state legislature passed Senate Bill No. 684 (Section 3.0 New State Legislation), now referenced under California Government Code Sections 65852.28, 65913.4.5, and 66499.41, creating a similar subdivision and devel opment system for multi-family zoned properties. In addition to SB 684, the state legislature passed Senate Bill No. 1123 (Section 3.0 New State Legislation), which altered some of the provisions introduced by the former. Staff’s approach to integrating the provisions of SB 684 and 1123 into the City’s Municipal Code involves substantial changes to Chapter 16.15 of the Subdivision Regulations. These specific amendments can be viewed in Attachment B. The number of similarities between these two types of urban lot splits provides the opportunity to expand upon an existing section in the City’s Municipal Code. However, there are enough differences to necessitate a means to reference both types independently of one another. Therefore, staff has proposed to refe r to urban lot splits under California Government Code Sections 65852.21 and 66411.7 (S B 9) as minor urban lot splits, and those under Sections 65852.28, 65913.4.5, and 66499.41 (SB 684 & SB 1123) as major urban lot splits. Major Urban Lot Splits Below is a review of major urban lot splits, including various qualifying requirements, standards, and regulations that apply as required by state law: Page 14 of 64 Item 4a [CODE-0031-2025] Planning Commission Report – 2/12/2025  Permitted Locations: Major urban lot splits are allowed in the R-1 (must be vacant and no larger than one and one-half acre), R-2, R-3, and R-4 zones where the property is substantially surrounded by urban uses and all qualifying requirements can be met. (Attachment B – 16.15.005)  Adverse Impacts: The Community Development Director may deem an application noncompliant upon written findings that the proposed housing development project associated with a major urban lot split would have a specific, adverse impact on public health and safety. (Attachment B – 16.15.010)  Procedural Requirements: The City is required to approve or deny major urban lot split applications ministerially within 60 days of receiving a complete application. If an application is denied, the City is required to provide a full set of comments and a list of items that are defective or deficient with a description of how said items can be resolved. (Attachment B – 16.15.010)  Maximum Number of Dwellings: The resulting lots of a major urban lot split must contain at least one residential unit, with the entirety of the property to be subdivided limited to a maximum of 10 residential units. (Attachment B – 16.15.020)  Hazardous and Protected Areas: A major urban lot split cannot be located on a site identified in subparagraphs (A) to (J), inclusive, of paragraph (9) of subdivision (a) of California Government Code Section 66499.41, unless the development satisfies the requirements specified therein. (Attachment B – 16.15.020)  Demolition or Alteration of Housing: A major urban lot split cannot result in the demolition or alteration of the type of housing identified in paragraph (8), inclusive, of subdivision (a) of California Government Code 66499.41. This includes housing subject to a recorded covenant, ordinance, or law restricting rent to levels affordable to persons and families of low-, very low-, and extremely low-income, and more. (Attachment B – 16.15.020)  Subsequent Urban Lot Splits: A major urban lot split cannot be conducted on a lot that was established through a prior urban lot split. (Attachment B – 16.15.020)  Subdivision Map Act: Major urban lot splits must conform to all applicable objective requirements of the Subdivision Map Act, except as otherwise provided in Chapter 16.15 of the City’s Municipal Code. (Attachment B – 16.15.020)  Lot Requirements and Limits: A major urban lot split may not result in more than 10 lots, with each lot being no smaller than 600 square feet. If the property subject to a major urban lot split is zoned for single-family use, each lot shall be no smaller than 1,200 square feet. Additionally, the average total area of floorspace for the proposed dwelling units associated with a major urban lot space cannot exceed 1,750 square feet. (Attachment B – 16.15.020)  Rental Term: The rental of any residential unit created via a major urban lot split must be for terms longer than 30 days. (Attachment B – 16.15.020) Page 15 of 64 Item 4a [CODE-0031-2025] Planning Commission Report – 2/12/2025  Housing Unit Specifications: Residential units on lots created by a major urban lot split must be either constructed on fee simple ownership lots, part of a common interest development, part of a housing cooperative, constructed on land owned by a community land trust, or part of a tenancy in common. (Attachment B – 16.15.020)  Housing Element: If a parcel to be subject to a major urban lot split is identified in the City’s Housing Element, the associated housing development project must result in at least as many units as projected for that parcel. Additionally, if the parcel is identified as contributing to a portion of the City’s share of the regional housing need for low- or very low-income households, the housing development project must result in as many affordable units as projected and be subject to a recorded affordability restriction of at least 45 years. If the parcel is not identified in the City’s Housing Element, the associated housing development project must result in at least 66% of the maximum allowable residential density or 66% of the applicable residential density specified in subparagraph (B) of paragraph (3) of subdivision (c) of California Government Code Section 65583.2, whichever is greater. (Attachment B – 16.15.020)  Water and Sewer Requirement: Lots created through a major urban lot split must be served by a public water system and municipal sewer system. (Attachment B – 16.15.020)  Separately Alienable: A major urban lot split shall not result in any existing dwelling unit being alienable separate from the title to any other existing dwelling unit on the lot. (Attachment B – 16.15.020)  Floor Area Ratio: A housing development project associated with a major urban lot split is subject to a floor area ratio standard not less than 1.0 for developments consisting of 3 to 7 units, inclusive, and a floor area ratio not less than 1.25 for projects consisting of 8 to 10 units, inclusive. (Attachment B – 16.15.020) Update to Minor Urban Lot Splits The existing provisions of Chapter 16.15 of the City’s Municipal Code are still applicable to minor urban lot splits. However, with the passing of SB 450, several changes were implemented to Government Code Sections 65852.21 and 66411.7 that will require the following changes:  Impacts to the Physical Environment: Local agencies may no longer deny housing development projects associated with urban lot splits on the basis that the project would have a specific, adverse impact upon the physical environment. (Attachment B – 16.15.020)  Procedural Requirements: Local agencies are required to approve or deny an urban lot split ministerially within 60 days of receiving a complete application, and upon denial, must provide the applicant with a list of defective or deficient items with a description of how they can be resolved. (Attachment B – 16.15.020) Page 16 of 64 Item 4a [CODE-0031-2025] Planning Commission Report – 2/12/2025 6.0 MISCELLANEOUS CHANGES Car Share Vehicles Under 16.15.025 of the City’s Municipal Code, housing developments associated with urban lot splits are required to provide one parking space per residential unit. This parking requirement is waived if the property is located within one -half mile walking distance of either a high-quality transit corridor as defined in subdivision (b) of Section 21155 of the Public Resources Code, or a major transit stop as defined in Section 21064.3 of the Public Resources Code. Parking is also waived if the property can show that a car share vehicle is located within one block of the subject parcel. The property would then be required to enter into an agreement with the City to ensure that a car share vehicle will remain available in perpetuity until off -street parking is provided or development of a high-quality transit corridor or a major transit stop within one-half mile of the subject parcel occurs. Currently, the City of San Luis Obispo does not contain a high -quality transit corridor, nor a major transit stop. To be exempt from parking, property owners have utilized the car share vehicle exemption. However, staff has found that existing guidelines for car share vehicles are lacking in detail, allowing this exemption to be used in a manner inconsistent with its purpose. Following a review of surrounding jurisdictions, staff is proposing the following definition to be added to Chapter 16.26 of the City’s Municipal Code: “Car share vehicle” means a motor vehicle that is operated as part of a regional fleet by a public agency or private car sharing company or organization that possesses a valid business license with the City of San Luis Obispo and provide hourly or daily services. Car share vehicles shall be stored on parking spaces dedicated to car share vehicles in between each use. Execution of a contract between the public agency or private car sharing company or organization and the client, and retrieval of the car share vehicle’s keys, shall take place at the location of the car share vehicle. This new definition will add clarity to the existing car share vehicle exemption and ensure that this alternative will offset the impacts of on-street vehicle parking to the same extent as off-street parking and proximity to major transit as contemplated by state law. (Attachment B – 16.26.065) Streamlining of ADU Conversions As state law continues to provide more avenues for the development of ADUs and JADUs, staff has seen an increase in the variety of designs being submitted for review. One such design that was brought to the attention of staff is the preemptive conversion of newly constructed or altered space in an existing residential structure that would be eligible for conversion to an ADU or JADU if already existing. One example is the expansion of an existing residen ce (whether a primary residence or detached ADU) that includes the construction of a new garage. Under state law and the City’s municipal code, the new garage would be eligible for conversion to an ADU or Page 17 of 64 Item 4a [CODE-0031-2025] Planning Commission Report – 2/12/2025 JADU when it officially becomes existing space. However, this means that under the current process, the applicant would need to receive approval for this addition and construct the space to the required building standards for a garage. Then, they would need to submit a second application for the ADU or JADU conversion, and upon approval, demolish and/or alter portions of the newly constructed garage into the approved ADU or JADU. Comments received by the development community on this issue state that this places an unnecessary burden on the applicant/property owner and is generally wasteful. To streamline this process, staff is proposing the following provision to be added as 17.86.020(B)(4)(c) (Attachment C): Building permit applications involving the construction of new space or the alteration of existing space within an existing residential structure may be designed in such a manner as to facilitate the conversion to an accessory dwelling unit or junior accessory dwelling unit. Said new construction or alterations to the existing structure(s) shall be consistent with the City’s objective design standards and any applicable zoning regulations. An accessory dwelling unit or junior accessory dwelling unit created through such a building permit application cannot be combined with the provisions of California Government Code Section 66323. Supportive/Transitional Housing Clarification In recent months, CDD has received feedback from some of the City’s affordable housing partners that the standards outlined in the Zoning Regulations restrict the development of potential projects that could provide supportive and/or transitional housing. With the production of such housing being a priority for the City, and to be consisten t with efforts to reduce barriers to affordable housing development, staff is proposing the following note to be added to the Supportive and/or Transitional Housing, with On- or Off-Site Services land use category of Table 2-1 of Chapter 17.10 (Attachment C): Projects that contain supportive and/or transitional housing located within a commercial zone are not required to be a mixed -use development and may be 100% residential except for those projects located in the C -D zone or Downtown Core. This includes projects that combine below market rate housing and supportive and/or transitional housing units. 7.0 GENERAL PLAN CONSISTENCY The proposed amendments to both Title 17 (Zoning Regulations) and Title 16 (Subdivisions) are consistent with the City’s Housing Element, specifically in promoting Goals 5 (Housing Variety) and 6 (Housing Production). The state’s intention in implementing the legislation discussed in this report is to promote and develop a diverse housing market that includes an increase in “missing middle” housing types (e.g., duplex, triplex, quadplex, cottages, etc.). These revisions to state ADU law allows for increased residential infill development that contributes to the City’s 6 th cycle RHNA production targets. This legislation also seeks to remove barriers to housing development by limiting the use of discretionary review for housing-related projects and allowing for smaller subdivisions to promote more efficient land use. Page 18 of 64 Item 4a [CODE-0031-2025] Planning Commission Report – 2/12/2025 8.0 ENVIRONMENTAL REVIEW The proposed code amendments have been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA) and the State CEQA Guidelines. Specifically, the proposed amendments have been determined to be exempt from further environmental revie w pursuant to CEQA Guidelines Section 15061(b)(3), the “Common Sense” exemption, because the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment, and it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. The proposed code amendments pertaining to ADUs and JADUs are also exempt under Public Resources Code Section 21080.17 that applies to local ordinances implementing state law related to accessory dwelling units. 9.0 ALTERNATIVES 1. The Commission may modify the proposed amendments to Chapters 16.15, 16.17, and 16.26 of the Subdivision Regulations and 17.10, 17.69, and 17.86 of the Zoning Regulations, so long as they are consistent with state law. 2. The Commission may continue action if additional information is needed. Specific direction should be given to staff if continued. 8.0 ATTACHMENTS A - Draft Planning Commission Resolution B - Revised Title 16 Text (Subdivision Regulations – Legislative Draft) C - Revised Title 17 Text (Zoning Regulations - Legislative Draft) D - HCD Correspondence Page 19 of 64 Page 20 of 64 RESOLUTION NO. PC-XXXX-25 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF SAN LUIS OBISPO RECOMMENDING THE CITY COUNCIL INTRODUCE AND ADOPT AN ORDINANCE AMENDING TITLE 16 (SUBDIVISION REGULATIONS) AND TITLE 17 (ZONING REGULATIONS) OF THE MUNICIPAL CODE WITH CHANGES ADDRESSING STATE LEGISLATIVE UPDATES ON ACCESSORY AND JUNIOR ACCESSORY DWELLING UNITS AND URBAN LOT SPLITS, AND CLARIFICATIONS TO REGULATIONS FOR AFFORDABLE HOUSING PROJECTS, WITH AN EXEMPTION FROM ENVIRONMENTAL REVIEW (CEQA) AS REPRESENTED IN THE STAFF REPORT AND ATTACHMENTS DATED FEBRUARY 12, 2025 (CODE-0031-2025) WHEREAS, on October 11, 2023, Governor Newsom approved SB 684 to allow the development of ten or fewer residential lots on urban lots no larger than five acres; and WHEREAS, on March 25, 2024, Governor Newsom approved SB 477 to reorganize various provisions relating to the creation and regulation of accessory and junior accessory dwelling units; and WHEREAS, on September 19, 2024, Governor Newsom approved SB 1211 to further encourage development of accessory dwelling units, SB 450 to update the regulatory powers a local agency can exercise on urban lot splits subject to Government Code Section 65852.21 and 66411.7, and SB 1123 to expand upon the provisions introduced in SB 684; and WHEREAS, the City of San Luis Obispo desires to update Title 16 (Subdivision Regulations) and Title 17 (Zoning Regulations) so that they may be consistent with current state law; and WHEREAS, a number of minor changes have been identified in order to add clarification to or streamline the development review processes to more efficient ly implement policies and programs of the City of San Luis Obispo’s General Plan that are implemented through Title 16 (Subdivision Regulations) and Title 17 (Zoning Regulations); and WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California on February 12, 2025, for the purpose of recommending various amendments to Title 16 and Title 17 of the Municipal Code to ensure consistency with state law and improve the efficiency of development review processes; and WHEREAS, notice of said public hearing were made at the time and in the manner required by the law; and Page 21 of 64 WHEREAS, the Planning Commission has duly considered all evidence, including the testimony of the applicant, interested parties, and the evaluation and recommendations by staff, presented at said hearing. NOW, THEREFORE, BE IT RESOLVED, by the Planning Commission of the City of San Luis Obispo as follows: SECTION 1. Findings. Based upon all evidence, the Planning Commission makes the following findings: 1. The proposed amendments to Titles 16 and 17 will not cause significant health, safety, or welfare concerns since the amendments are consistent with the General Plan and directly implement City goals and polices. 2. The proposed amendments to Title 17 are consistent with the 6th Cycle Housing Element in promoting Goal 5 (Housing Variety) and Goal 6 (Housing Production). 3. The proposed amendments to Title 16 and 17 are consistent with state law. SECTION 2. Environmental Determination. The proposed amendments to Title 16 and Title 17 of the Municipal Code have been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA) and the state CEQA guidelines. Specifically, the proposed amendments have been determined to be exempt from further environmental review pursuant to CEQA Guidelines Section 15061(b)(3), the “Common Sense” exemption, because the proposed actions have no possibility of having a significant effect on the environment. The proposed code amendments pertaining to ADUs and JADUs are also statutorily exempt under Public Resources Code Section 21080.17 (exemption for local ordinances implementing state law related to accessory dwelling units.) Page 22 of 64 SECTION 3. Action. The Planning Commission hereby recommends to the City Council the introduction and adoption of an ordinance to amend Title 16 (Subdivision Regulations) and Title 17 (Zoning Regulations) of the City’s Municipal Code regarding accessory dwelling units, junior accessory dwelling units, urban lot splits, and clarifications to regulations for affordable housing projects , as set forth in Exhibit A and incorporated herein. Upon motion of ______________________, seconded by __________________ and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was passed and adopted this 12th day of February, 2025. _____________________________ Tyler Corey, Secretary Planning Commission Page 23 of 64 Page 24 of 64 Attachment B TITLE 16 SUBDIVISIONS 16.15.005 Purpose and applicability. The purpose of this chapter is to appropriately regulate qualifying “urban lot splits” within qualifying locations in low-density residential (R-1) zones in accordance with California Government Code Sections 66411.7. state law. For the purposes of this chapter, urban lot splits subject to California Government Code Sections 65852.21 and 66411.7 (and other comparable provisions which may hereafter be added by the legislature) shall be referred to as “minor urban lot splits.” Urban lot splits subject to California Government Code Sections 65852.28, 65913.4.5, and 66499.41 (and other comparable provisions which may hereafter be added by the legislature) shall be referred to as “major urban lot splits.” The use of the phrase “urban lot split” on its own is in reference to both major and minor urban lot splits . A. Applicability. The standards and limitations set forth in this chapter shall apply to minor urban lot splits under California Senate Bill 9 of 2021 (“SB 9”) within the R-1 zone residential zones in the city, and major urban lot splits within the R-1 (vacant lots only; no larger than one and one-half acre), R-2, R-3, and R-4 zones, notwithstanding any other conflicting provisions of this code. In the event of a conflict between the provisions of this chapter and any other provision of this code, the provisions of this chapter shall prevail. B. Interpretation. The provisions of this chapter shall be interpreted to be consistent with the provisions of California Government Code Section Sections 66411.7 and 66499.41, and shall be applied in a manner consistent with state law. The city shall not apply any requirement or development standard provided for in this chapter to the extent prohibited by any provision of state law. C. Permitted Locations. A lot on which an urban lot split is proposed must be located within and R-1 zone and meet all qualifying requirements of Section 16.15.020. A lot subject to a minor urban lot split must be located within an R-1 zone and meet all qualifying requirements of Section 16.15.020. A lot subject to a major urban lot split must be located within an R-1 (vacant lot only; no larger than one and one-half acre), R- 2, R-3, or R-4 zone that is no larger than five acres, substantially surrounded by urban uses, and meet all qualifying requirements of Section 16.15.022. (Ord. 1729 § 4 (Exh. A), 2023) Page 25 of 64 Attachment B 16.15.010 Permit application and review procedures. A. Application. An Per state law, an applicant for an SB 9 urban lot split shall submit all required items from the tentative map application on file at the community development department. The application shall be accepted if it is completed as prescribed a nd accompanied by payment for all applicable fees. In addition to all required submittal checklist items for a tentative map, sufficient information shall be provided in the application to demonstrate, through objective review, the following: (1) the lots will accommodate development that complies with development standards and city codes, (2) information is provided to justify any proposed exceptions to objective standards, (3) sufficient access to the public right-of-way is provided or preserved, (4) the lots accommodate needed easements, infrastructure, and emergency access, and (5) any information deemed necessary by the director for objective review as needed evidence that the proposal will not result in any specific adverse impacts. B. Review. Consistent with state law, the director will review and determine compliance of a complete application for an SB 9 urban lot split pursuant to this Chapter ministerially, without discretionary review or public hearing. C. Effectiveness of Approval. The ministerial approval of a final parcel map for an urban lot split does not take effect until the city has confirmed that all required documents have been recorded at the county clerk-recorder. D. Specific, Adverse Impacts. Notwithstanding anything else in this section, the director shall deem an application for a tentative parcel map an urban lot split noncompliant upon written findings, based on a preponderance of the evidence, that the project proposed housing development project would have a specific, adverse impact, as defined and determined in paragraph (2) of subdivision (d) of California Government Code Section 65589.5, on either public health and safety or on the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. (Ord. 1729 § 4 (Exh. A), 2023) E. Procedural Requirements. Within sixty days of receiving a complete application for an urban lot split, the city shall ministerially approve any such application which complies with all applicable requirements and development standards identified in this chapter. If the application does not comply with the listed requirements and standards identified in this chapter, the applicant will receive a full set of comments with a list of items that are defective or deficient and a description of how the application can be Page 26 of 64 Attachment B remedied by said applicant. These procedural requirements shall also apply to the housing development project associated with the urban lot split. 16.15.020 Qualifying requirements A proposed urban lot split Minor and major urban lot splits must meet all of the following requirements, unless otherwise stated in this chapter, in order to be an eligible urban lot split under their respective Government Code sections. Government Code Section 66411.7 (urban lot split) It shall be the responsibility of the applicant to demonstrate to the satisfaction of the director that each of these requirements is satisfied. The applicant and/or owner of the property shall provide a sworn statement, in a form approved by the director, attesting to all facts necessary to establish that each requirement is met. A. Maximum Number of Dwellings. An urban lot split shall not result in more than two dwelling units of any kind on the resulting parcels. As described by Government Code Section 66411.7(j), the two-unit limitation applies to any combination of primary dwelling units, ADUs, or JADUs. 1. A minor urban lot split shall not result in more than two dwelling units of any kind on the resulting parcels. As described by California Government Code Section 66411.7(j), the two-unit limitation applies to any combination of primary dwelling units, ADUs, or JADUs. 2. A major urban lot split shall contain at least one dwelling unit on each resulting parcel (see California Government Code Section 66499.41(e)). A maximum of ten dwelling units may be developed on the parcel to be subdivided. As described by Section 66499.41(g), the City may deny an application which proposes accessory dwelling units and/or junior accessory dwelling units on the resulting parcel(s). B. Hazardous and Protected Areas. The proposed lot split shall not be located on any site identified in subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision (a) of California Government Code Section 65913.4, unless the development satisfies the requirements specified therein. Such sites include, but are not limited to, prime farmland, wetlands, high or very high fire hazard severity zones, special flood hazard areas, regulatory floodways, and lands identified for conservation or habitat preservation as specifically defined in Government Code Section 65913.4. Page 27 of 64 Attachment B 1. A minor urban lot split shall not be located on any site identified in subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision (a) of California Government Code Section 65913.4, unless the development satisfies the requirements specified therein. Such sites include, but are not limited to, prime farmland, wetlands, high or very high fire hazard severity zones, special flood hazard areas, regulatory floodways, and lands identified for conserv ation or habitat preservation as specifically defined in Government Code Section 65913.4. 2. A major urban lot split shall not be located on any site identified in subparagraphs (A) to (J), inclusive, of paragraph (9) of subdivision (a) of California government Code Section 66499.41, unless the development satisfies the requirements specified therein. Such sites include, but are not limited to, prime farmland, wetlands, very high fire hazard severity zones, special flood hazard areas, regulatory floodways, and lands identified for conservation or habitat preservation. C. Historic Properties. The proposed A minor urban lot split shall not be located within a historic district or on property included on the State Historic Resources Inventory, as defined in Section 5020.1 of the California Public Resources Code, or within a site that is designated or listed as a historic resource pursuant to the city’s historic preservation ordinance. D. Affordable Housing. Demolition or Alteration of Housing. The proposed A minor urban lot split shall not require the demolition or alteration of the types of housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. identified in subparagraph (D), inclusive, of paragraph (3) of subdivision (a) of California Government Code Section 66411.7. A major urban lot split shall not require the demolition or alteration of the types of housing identified in paragraph (8), inclusive, of subdivision (a) of California Government Code Section 66499.41. E. Subsequent Urban Lot Splits. In the case of an urban lot split, the lot proposed to be subdivided shall not have been established through a prior urban lot split. F. Adjacent Urban Lot Splits. In the case of an a minor urban lot split, the lot proposed to be subdivided (“subject lot”) shall not be adjacent to any lot that was established through an a minor urban lot split by the owner of the subject lot or by any person acting in concert with the owner of the subject lot. Page 28 of 64 Attachment B G. Subdivision Map Act. An urban lot split must conform to all applicable objective requirements of the Subdivision Map Act, including implementing requirements in this code, except as otherwise provided in this chapter. Notwithstanding the foregoing, no dedication of rights-of-way or construction of off-site improvements is required solely for an a minor urban lot split. H. Lot Size Lot Requirements and Limits. An urban lot split application may subdivide an existing lot to create no more than two new lots of approximately equal lot area; provided, that one lot shall not be smaller than forty percent of the lot area of the original lot proposed for subdivision. Both newly created lots must each be no smaller than one thousand two hundred square feet. 1. A minor urban lot split application may subdivide an existing lot to create no more than two new lots of approximately equal lot area; provided, that one lot shall not be smaller than forty percent of the lot area of the original lot proposed for subdivision. Both newly created lots must each be no smaller than one thousand two hundred square feet. 2. A major urban lot split may subdivide an existing lot to create no more than ten new lots, with each lot being no smaller than six hundred square feet. If the property subject to a major urban lot split is zoned for single-family use, each lot shall be no smaller than one thousand two hundred square feet. The average total area of floorspace for the proposed dwelling units to be located on lots created via a major urban lot split shall not exceed one thousand seven hundred fifty net habitable square feet, as defined by California Government Code Section 66499.41. I. Easements. The owner must enter into an easement agreement with each utility/public-service provider to establish necessary easements that are sufficient for the provision of public services and facilities to each of the resulting lots. 1. Each easement must be shown on the tentative parcel map and the final parcel map. 2. Copies of the unrecorded easement agreements must be submitted with the application. The easement agreements must be recorded against the property before the final parcel map may be approved. J. Required Affidavit. The applicant for a final parcel map for an a minor urban lot split must sign an affidavit provided by the city stating that the applicant intends to occupy Page 29 of 64 Attachment B one of the dwelling units on one of the resulting lots as the applicant’s principal residence for a minimum of three years from the date of approval of the minor urban lot split, or in the case of a vacant property a minimum of three years from the date of issuance of occupancy certification of any new residential dwellings on either of the resulting lots. K. Rental Term. Rental of any unit created pursuant to this section shall be for a term longer than thirty days. (Ord. 1729 § 4 (Exh. A), 2023) L. Housing Unit Specifications. Housing units on a major urban lot split shall be one of the housing unit types identified in paragraph (4), inclusive, of subdivision (a) of California Government Code Section 66499.41. M. Housing Element. The proposed housing development associated with a major urban lot split shall meet one of the following, as applicable: 1. If the parcel is identified in the city’s Housing Element for the current planning period, the housing development will result in at least as many units as projected for that parcel. Additionally, if the parcel is identified to accommodate any portion of the city’s share of the regional housing need for low- or very low-income households, the development will result in at least as many low- or very low-income units as projected in the housing element and shall be subject to a recorded affordability restriction of at least 45 years. 2. If the parcel is not identified in the city’s Housing Element for the current planning period, the development will result in at least sixty-six percent of the maximum allowable residential density or sixty-six percent of the applicable residential density specified in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2, whichever is greater. N. Water and Sewer Requirement. All parcels created through a major urban lot split shall be served by a public water system and municipal sewer system. O. Separately Alienable. A major urban lot split shall not result in any existing dwelling unit being alienable separate from the title to any other existing dwelling unit on the lot. P. Floor Area Ratio. For major urban lot splits, a floor area ratio standard not less than 1.0 shall apply for housing development projects consisting of three to seven units, Page 30 of 64 Attachment B inclusive, and a floor area ratio standard not less than 1.25 shall apply for housing development projects consisting of eight to ten units, inclusive. 16.15.025 Property improvement standards. A. Objective Standards. The design and improvements of any lot created through an urban lot split shall be subject to the standards and criteria set forth in this section. In addition, except as modified or provided by this section or state law, any lot created through an urban lot split shall conform to all objective standards applicable to the lot as set forth in this title and/or in an applicable specific plan or planned unit development ordinance or resolution, along with all applicable objective standards and criteria contained in standard plans and specifications, policies, codes, regulations, and/or standard conditions duly promulgated and/or adopted by the city. B. Lot Access. Each resulting lot must have frontage on the public right-of-way of at least twenty feet or be served by an access easement serving no more than two lots. Access shall be provided in compliance with these standards: 1. Vehicle access easements serving a maximum of two parcels shall meet the following standards: i. Easement width shall be a minimum of twenty feet and shall comply with Engineering Standard 2120 for driveway ramp improvements and widths. ii. The minimum length for a vehicle access easement is twenty feet. No maximum easement length shall be set. If easement length is more than seventy-five feet, a vehicle turnaround shall be provided. iii. No residential structure shall be closer than three feet to the easement. iv. Vehicle access easements shall not be located closer than twenty-five feet to an intersection. 2. Where a lot does not abut a public street, and where no automobile parking spaces are required under subsection D of this section, a vehicle access easement is not required. An easement providing pedestrian access to a street from each lot shall be provided meeting the following standards: i. Easement width shall be a minimum of ten feet; Page 31 of 64 Attachment B ii. Pedestrian access easements shall not exceed two hundred feet in length. 3. Access and provisions for fire protection consistent with the California Fire Code shall be provided for all structures served by an access easement. 4. Surfacing of easements, pedestrian walkways required within easements, and turnaround dimensions shall meet the requirements of the California Fire Code and the city’s engineering standards. 5. Lots taking access by an easement must record a shared maintenance agreement for the driveway/accessway. The agreement shall be recorded prior to or concurrently with the final parcel map. C. Lot Line Configurations. The location of property lines associated with an urban lot split application shall comply with all objective standards as identified in Section 16.18.040 (Location of lot lines), and as described below: 1. No Except as otherwise provided in state law, no portion of an urban lot split may result in a lot width or depth of less than twenty feet for any portion of the subdivision. 2. A lot line shall not bisect or be located within four feet of any existing or proposed structure. D. Parking Required. Off-street parking of up to one space per unit shall be provided and comply with the city’s parking and driveway design and development standards Section 17.72.090 except when: 1. The parcel is located within one-half mile walking distance of either a high- quality transit corridor as defined in subdivision (b) of Section 21155 of the Public Resources Code, or a major transit stop as defined in Section 21064.3 of the Public Resources Code. 2. There is a car share vehicle, as defined in Section 16.26.061, located within one block of the parcel. Owner shall enter into an agreement with the city to ensure that a car share vehicle will remain within one block of the parcel in perpetuity, un less and until owner provides off-street parking or development occurs such that subsection (D)(1) of this section applies. (Ord. 1729 § 4 (Exh. A), 2023) Page 32 of 64 Attachment B 16.15.030 Exceptions to objective standards. A. All proposed lots and development proposed pursuant to this chapter shall comply with all city zoning codes, and objective policies, and guidelines unless an exception is granted. No exception shall be granted for any of the qualifying requirements as outlined in Section 16.15.020. Any proposed exception to any relevant objective standards, policies, guidelines, or codes shall not be granted unless the community development director can affirmatively determine the application m eets all of the below requirements. For the purpose of these requirements, existing improvements or development is not considered a physical constraint. B. The necessity to grant the exception(s) is based on site development feasibility where there are no options for other design alternatives such as modifying the footprint, moving lot lines, adding stories, or reducing floor area (to minimum eight hundred square feet) and where the applicant has demonstrated it is physically not possible to redesign the project to avoid the necessity of exceptions. C. The For a minor urban lot split, the requested exceptions represent the minimum deviation necessary to allow the construction of two units on each resulting parcel and which would not require any of the units to be less than eight hundred square feet. For a major urban lot split, the requested exceptions represent the minimum deviation necessary to allow parcels that are no less than six hundred square feet in size, or parcels that are no less than one thousand two hundred square feet in size when the property is zoned R-1. (Ord. 1729 § 4 (Exh. A), 2023) 16.15.035 Separate conveyance. A. Separate conveyance of the two lots resulting from an urban a minor urban lot split is permitted. If dwellings or other structures (such as garages) on different lots are adjacent or attached to each other, the minor urban lot split boundary may separate them for conveyance purposes if the structures meet building code safety standards and are sufficient to allow separate conveyance. If any attached structures span or will span the new lot line, or if the two lots share a driveway, appropriate covenants, easements or similar documentation allocating legal and financial rights and responsibilities between the owners of the two lots (“CC&Rs”) for construction, reconstruction, use, maintenance, and improvement of the attached structures and any related shared drive aisles, parking areas, or other portions of the lot must be recorded Page 33 of 64 Attachment B before the city will approve a final parcel map for the minor urban lot split. Notwithstanding the provision of such CC&Rs, however, where attached structures and/or related shared facilities span a lot line resulting from an a minor urban lot split, all owners of both lots shall be jointly and severally responsible for the use and maintenance of such structures and/or shared facilities in compliance with all provisions of this code. 1. Primary dwelling units located on the same lot may not be owned or conveyed separately from one another. All fee interest in a lot and all dwellings must be held equally and undivided by all individual owners of the lot. 2. Except as provided in Government Code Section 65852.26 state law, accessory dwelling units (ADU) may not be sold or otherwise conveyed separate from the primary residence. 3. Junior accessory dwelling units (JADU) may not be sold or otherwise conveyed separate from the primary residence. B. A lot created by a final parcel map under this section shall not be further subdivided. Condominium airspace division or common interest subdivisions are not permitted on a lot created through an urban lot split. (Ord. 1729 § 4 (Exh. A), 2023) 16.17.020 Airspace subdivisions, common interest subdivisions, and flexible lot design subdivisions. A. Applicability and Intent. This section explains the review process and standards that apply to subdivision types that differ from the lot area minimums and dimensions in Section 16.18.030 (Table 2). This section covers projects (where allowed in subsection B of this section) that propose ownership boundaries or separate unit ownershi p within buildings or on parcels where property development standards such as lot coverage and density are determined by using the exterior boundaries of the property and where standards apply to the project as a whole instead of requiring conformance with all property development standards on each of the proposed parcels/units in the subdivision. These types of subdivisions can rely on shared ownerships as is the case with subdivisions with common interests (i.e., condominiums) or may also rely solely or Page 34 of 64 Attachment B in part with easements for common areas such as recreation facilities, open space, parking, driveways, etc. (i.e., flexible lot subdivisions, and airspace subdivisions). B. Zones Allowed. This chapter applies to the subdivision types listed in Section 16.17.010 (defined in Chapter 16.26) and can be allowed in multifamily and nonresidential zones with the exception of the AG and OS zones. In the R-1 zone, only flexible lot subdivisions are allowed consistent with Section 16.17.030. C. Application and Review Requirements. Subdivisions subject to this chapter shall be consistent with development projects which have already received development review approval or shall be processed concurrently with a separate development review application. Subdivisions subject to this chapter shall not be approved without development review approval pursuant to Section 17.106.030. Tentative parcel map or tentative tract map application requirements are determined based on the number of lots or units and criteria of Sections 16.08.040 and 16.08.050. D. Property Development Standards. Property development standards (Chapter 17.70), including (but not limited to) density, setbacks, floor area ratios, and lot coverage limitations, shall apply with respect to the exterior boundary lines (property lines) of the proposed subdivision and not to individual units or lots within the project. Interior setback standards for each newly created lot within the subdivision are dictated by minimum separation requirements of the building and fire codes and standard minimum setbacks of the zoning code are required at the exterior boundaries of the project. 1. Lot Dimensions. Subdivisions subject to this section may be any size or shape and shall not be subject to the minimum lot sizes, lot dimensions, and lot area requirements as described in Section 16.18.030, Table 2 (Minimum Lot Area and Dimensions). 2. Access and Driveways. Driveway and pedestrian access shall be provided by direct access to the public right-of-way or may be served by an easement or be within a separate lot that is commonly owned and managed by an association or agreement, subject to the approval of the public works director. 3. Easements. Subdivisions subject to this section shall provide for use easements or a commonly owned separate lot for any facilities such as driveways or open Page 35 of 64 Attachment B space and must provide for a method of common area maintenance by means of association or agreement. E. Separate Conveyance. Separate conveyance of the lots resulting from an airspace or common interest subdivision is permitted. If dwellings or other structures (such as garages) on different lots are adjacent or attached to each other, the subdivision boundary may separate them for conveyance purposes if the structures meet building code safety standards and are sufficient to allow separate conveyance. If any attached structures span or will span the new lot line, or if the lots share a driveway, appropriate covenants, easements or similar documentation allocat ing legal and financial rights and responsibilities between the owners of the lots (“CC&Rs”) for construction, reconstruction, use, maintenance, and improvement of the attached structures and any related shared drive aisles, parking areas, or other portions of the lot must be recorded before the city will approve a final map for the common interest subdivision. Notwithstanding the provision of such CC&Rs, however, where attached structures and/or related shared facilities span a lot line resulting from a common interest subdivision, all owners of the lots shall be jointly and severally responsible for the use and maintenance of such structures and/or shared facilities in compliance with all provisions of this code. 1. Except as provided in Government Code Section 65852.26 state law, accessory dwelling units may not be sold or otherwise conveyed separate from the primary residence. (Ord. 1729 § 4 (Exh. A), 2023) 16.26.060 Average cross slope. “Average cross slope” means the ratio, expressed as a percentage, of the difference in elevation to the horizontal distance between two points on the perimeter of the area whose slope is being determined, with the line along which the slope is being measured running essentially perpendicular to the contours between the points. (Ord. 1729 § 4 (Exh. A), 2023) Page 36 of 64 Attachment B 16.26.065 Car share vehicle. “Car share vehicle” means a motor vehicle that is operated as part of a regional fleet by a public agency or private car sharing company or organization that possesses a valid business license with the city of San Luis Obispo and provides hourly or daily services. Car share vehicles shall be stored on parking spaces dedicated to car share vehicles when not in use by a client. Execution of a contract between the public agency or private car sharing company or organization and the client, and retrieval of the car share vehicle’s keys, shall take place at the location of the car share vehicle. 16.26.070 Common interest subdivision/condominium. “Common interest subdivision” includes subdivided lands which include a separate interest in real property combined with an interest in common with other owners. The following types of common interest subdivisions are recognized by the city of San Luis Obispo, consistent with the Davis Sterling Common Interest Development Act: A. “Condominium project” consists of an undivided interest in common in a portion of real property coupled with a separate interest in space called a unit, the boundaries of which are described on a recorded final map, parcel map, or condominium plan in sufficient detail to locate all boundaries thereof. The area within these boundaries may be filled with air, earth, or water, or any combination thereof, and need not be physically attached to land except by easements for access and, if necessary, support. Generally, condominiums are recognized as airspace ownership. Page 37 of 64 Page 38 of 64 Attachment C TITLE 17 ZONING REGULATIONS 17.10.020 Use regulations by zone. Residential Care Facilities—6 or Fewer Residents A A A A A A M/A M/A M/A MUP Multiple state statutes Residential Care Facilities—7 or More Residents MUP MUP MUP MUP MUP MUP MUP Multiple state statutes Supportive and/or Transitional Housing, with On- or Off-Site Services A A A A MUP A A A A A A A A Projects that contain supportive and/or transitional housing located within a commercial zone are not required to be a mixed-use development and may be 100% residential except for those projects located in the C-D zone or Downtown Core. This includes projects that combine below market rate housing and supportive and/or transitional housing units. Farmworker Housing A A MIXED USES Mixed-Use Development A A A A A A A A See Sec. 17.70.130 and GC Sec. 65852.24 Page 39 of 64 Attachment C 17.69.010 Purpose and application. A. Purpose. This chapter is intended to provide objective standards for the design of residential and mixed-use projects (herein referred to as “residential projects”) that are eligible for ministerial approval to ensure compatibility with existing and planned development on the site and adjacent and nearby properties while also supporting the development of housing consistent with the city’s general plan. B. Applicability. The provisions of this chapter apply to all residential projects, in all zones, that qualify for streamlined, ministerial processing per Government Code Section 65913.4, or that are a “use by right” residential project. In addition, eligible residential projects must comply with all objective city policies, thresholds of significance, development standards, and design standards as established in, but not limited to, the general plan, zoning regulations, city standard specifications and engineering standards, active transportation plan, transportation impact study guidelines, climate action plan, and the municipal code. A “use by right” residential project is a residential project that includes at least twenty percent of the units as affordable to lower income households (low, very low, and extremely low) and does not require discretionary review or approval (ministerial review only) and or residential projects that are otherwise deemed subject to ministerial processing per state or local law. Residential projects seeking exceptions, waivers, or modifications to any development standards set forth in the city’s zoning regulations or the design standards set forth in this chapter, excluding modifications granted as part of density bonus concession, incentive, parking reduction, or waiver of development standards pursuant to state density bonus law or the city’s density bonus regulations (Chapter 17.140), shall not be eligible for ministerial and/or streamlined processing contemplated by this chapter, and will be subject to the city’s discretionary development review process outlined in Chapter 17.106. Where these standards conflict with other state law or local code requirements (including but not limited to California Building Code and the city’s standard specifications and engineering standards) the more restrictive provision shall prevail. (Ord. 1703 § 4, 2021) Page 40 of 64 Attachment C 17.86.020 Accessory dwelling units, and junior accessory dwelling units, and guest quarters. A. Purpose and Applicability. The purpose of this chapter is to prescribe development and site regulations that apply, except where specifically stated, to accessory dwelling units, junior accessory dwelling units, and guest quarters, as defined in Chapter 17.156 (Land Use Definitions). B. Accessory Dwelling Units. The provisions in this subsection shall apply to accessory dwelling units as defined in Chapter 17.156 (Land Use Definitions) and where allowed in compliance with Chapter 17.10 (Use Regulations). 1. Purpose. The purpose of this chapter is to provide for the creation of accessory dwelling units in a manner that is consistent with requirements identified in Government Code Section 65852.2 Chapter 13 of Division 1 of Title 7 of the California Government Code, as amended from time to time. Implementation of this section is meant to expand housing opportunities by increasing the number of smaller units available within existing neighborhoods. 2. General Requirements. a. Application. Where this section does not contain a particular type of standard or procedure, conventional zoning standards and procedures shall apply. b. No Subdivision of Property. Except as provided in state law, No no subdivision of property shall be allowed where an accessory dwelling unit has been established and the resulting subdivision does not maintain the primary residence on the same lot as the accessory dwelling unit(s). c. Sale of Property. This section shall apply to new owners of property where an accessory dwelling unit has been established. All conditions of director’s action (if applicable), restrictive covenants and other contractual agreements with the city shall apply to the property and the new owners, except as allowed or prohibited by state law. d. Applicability of Building Codes. Accessory dwelling units shall conform to all applicable building and construction codes. Page 41 of 64 Attachment C 3. Specific Requirements and Standards. a. Zones Where Allowed. An accessory dwelling unit, as defined in Chapter 17.156 (Land Use Definitions), can be created in the AG, C/OS, C-N, C-C, C-R, C-D, C-T, C-S, M, R-1, R-2, R-3, R-4, or O (Office) zone on lots with an existing or proposed residential structure. For the purposes of this section, structures that contain both commercial and residential uses are not considered residential structures. b. Size of Accessory Dwelling Unit. The Except as provided in state law, the gross floor area of an accessory dwelling unit shall be no less than one hundred fifty square feet and shall not exceed eight hundred fifty square feet for a studio or one-bedroom unit, or one thousand square feet for a unit containing two or more bedrooms. i. The director may authorize an exception to the square footage standards to allow an accessory dwelling unit up to one thousand two hundred square feet through the director’s action process. In the R-1 zone, this exception can only be approved on lots that are at least twelve thousand square feet in area. In all other zones, exceptions shall be based on compatibility with the development pattern of the neighborhood. c. Limitation on Number. Only one accessory dwelling unit is permitted per lot. d. c. Design Standards. Accessory dwelling units shall conform to all applicable development standards of the underlying zone, including but not limited to height, setback area, parking, and building coverage, unless otherwise stated in this section or prohibited by state law. i. No passageway, defined as a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the accessory dwelling unit, shall be required in conjunction with the construction of an accessory dwelling unit. ii. No setback shall be required for an existing permitted structure that is converted to an accessory dwelling unit, or for an accessory dwelling unit that is constructed in replacement of an existing permitted structure, provided it is in the same location and has the same dimensions including height. Page 42 of 64 Attachment C iii. A setback of no more than four feet from the side and rear lot lines is required for an accessory dwelling unit, for walls up to sixteen feet in height. iv. Accessory dwelling units that include the creation of new square footage shall be limited to sixteen feet in height. Up to one hundred fifty square feet of new square footage may be exempted from this requirement in connection to a conversion of existing upper floor square footage, but only as needed to accommodate ingress and egress. (a) In order to provide additional design options for accessory dwelling units, units that include the creation of new square footage can be constructed up to twenty-five feet in height if consistent with the setback standards provided in Article 2 of this title (Zones, Allowable Uses and Development and Design Standards). v. Architectural style and form shall match the style and form of the primary residential structure(s) on the property. vi. The materials of the accessory dwelling unit shall match the materials of the primary residential structure(s) on the property. vii.v. The minimum required setback for any balcony or terrace above the first floor shall be increased to ten feet from the adjacent property line(s). Upper level private or common open space areas provided as accessory to an accessory dwelling unit shall not exceed an aggregate area of fifty square feet. Roof decks or rooftop open spaces are prohibited. viii.vi. Exceptions to these design standards can be approved by the director, through director’s action, subject to required findings (Section 17.108.040). e. d. Fire Sprinklers. Accessory dwelling units shall not be required to provide fire sprinklers if fire sprinklers are not required for the primary residence. The construction of an accessory dwelling unit shall not require fire sprinklers to be installed in the existing primary dwelling. f. e. Parking Requirements. No additional parking spaces shall be required for an accessory dwelling unit. If a garage or carport is converted or removed to accommodate an accessory dwelling unit, replacement parking is not required. Page 43 of 64 Attachment C g. f. Historic Resources. Accessory dwelling units on listed historic properties and in historic districts shall be consistent with the historic preservation ordinance, including historic preservation guidelines and Secretary of the Interior standards for the treatment of historic properties. h. g. Utility Connection Fees. Where an accessory dwelling unit is created within an existing structure (primary or accessory), no new utility connection or payment of impact fees shall be required. For all other accessory dwelling units, a new utility connection for the accessory dwelling unit and payment of impact fees may be required if the accessory dwelling unit is seven hundred fifty square feet or more. New accessory dwelling units located in sewer capacity constrained areas are subject to Section 13.08.396 (Wastewater flow offset). i. h. Additional Accessory Dwelling Unit Types. Additional Accessory Dwelling Unit Configurations. Accessory dwelling units that are consistent with Government Code Section 65852.2(e) 66323 shall receive ministerial approval. The provisions of Government Code Section 65852.2(e) cannot be combined with other accessory dwelling unit provisions of this section and no exceptions are available for projects subject to Section 65852.2(e). Building permit applications to create accessory dwelling units consistent with Government Code Section 65852.2(e) 66323 shall clearly be labeled as such (e.g., “ADU-e” “ADU-66323”). In connection to the provision of Government Code Section 65852.2(e), multifamily dwelling structures shall be defined in accordance with Government Code Section 65589.5(h)(2). 4. Procedural Requirements. An accessory dwelling unit that meets the standards contained in this section shall be subject to ministerial review (building permit) and approval without discretionary review (i.e., use permit, architectural review, etc.) or public hearing. a. Within sixty days of receiving a complete application, the city shall approve any such application which complies with all applicable requirements and development standards identified in this chapter or deny any such application that does not. If the proposed accessory dwelling unit(s) does not comply with the requirements and standards identified in this chapter, the applicant shall receive a full set of comments with a list of items that are defective or deficient and a description of how the application can be remedied by said applicant. When an accessory dwelling unit is proposed within a new residential structure, Page 44 of 64 Attachment C this sixty-day requirement shall only apply once all other aspects of the permit are approved. b. Building permit applications for accessory dwelling units on lots containing an existing primary dwelling or dwellings shall not include other changes or improvements to the property unless those improvements are required to facilitate the creation of the accessory dwelling unit. c. Building permit applications involving the construction of new space or the alteration of existing space within an existing residential structure may be designed in such a manner as to facilitate the conversion to an accessory dwelling unit or junior accessory dwelling unit. Said new construction or alterations to an existing single-family residential structure shall be consistent with the City’s objective design standards and any applicable zoning regulations. An accessory dwelling unit or junior accessory dwelling unit created through such a building permit application cannot be combined with the provisions of California Government Code Section 66323. 5. No Short-Term Rental. An accessory dwelling unit cannot be rented for a period of less than thirty days. Homestay use of an accessory dwelling unit is prohibited. 6. Violations. Violation of any of the provisions of this chapter shall be subject to basic code enforcement action as provided in Title 1. C. Junior Accessory Dwelling Units. The provisions in this subsection shall apply to junior accessory dwelling units as defined in Chapter 17.156 (Land Use Definitions) and where allowed in compliance with Chapter 17.10 (Use Regulations). 1. Purpose. The purpose of this chapter is to provide for the creation of junior accessory dwelling units in a manner that is consistent with requirements identified in Government Code Section 65852.22 Chapter 13 of Division 1 of Title 7 of the California Government Code, as amended from time to time. Implementation of this section is meant to expand housing opportunities by increasing the number of smaller units available within existing neighborhoods. 2. General Requirements. Page 45 of 64 Attachment C a. Application. Where this section does not contain a particular type of standard or procedure, conventional zoning standards and procedures shall apply. b. Areas Where Junior Accessory Dwelling Units Are Allowed. Upon meeting the requirements of this section, junior accessory dwelling units may be established in any zone where the use of the property is a single-unit dwelling, either existing or proposed. c. Sale of Property. A junior accessory dwelling unit shall not be sold independently of the primary dwelling on the parcel. d. Location. A junior accessory dwelling unit must be created within the walls of a proposed or existing primary dwelling. i. Conversion of an existing garage into a junior accessory dwelling unit shall only be permitted if replacement parking is provided consistent with Sections 17.70.170 (Setbacks) and 17.76.040 (Front yard parking). No setback exception shall be approved to accommodate replacement parking. e. Size of Junior Accessory Dwelling Unit. The gross floor area of a junior accessory dwelling unit shall not exceed five hundred square feet. f. Limitation on Number. Only one junior accessory dwelling unit may be located on any residentially zoned lot zoned for single-family residences with existing or proposed single-family residence(s). A junior accessory dwelling unit may only be located on a lot that contains one permitted single-family structure or in connection with the construction of a single-family structure. A junior accessory dwelling unit may be located on the same lot as an accessory dwelling unit under one of the following circumstances: i. The accessory dwelling unit was constructed at the same time as the single-family residence. ii. The accessory dwelling unit was created through the conversion of existing space within a single-family residence or accessory structure. iii. The accessory dwelling unit, either new or existing, is a detached unit, and the detached accessory dwelling unit is no larger than eight hundred Page 46 of 64 Attachment C square feet, no taller than sixteen feet in height and has setbacks of no less than four feet from side and rear lot lines. g. Applicability of Building Codes. Junior accessory dwelling units shall conform to all applicable building and construction codes. 3. Performance Standards and Compatibility. a. Design Standards. Junior accessory dwelling units shall conform to all applicable development standards of the underlying zone, including but not limited to height, setback area, parking, and building coverage and shall be subject to the provisions below. A junior accessory dwelling unit that conforms to this section shall not be considered a dwelling unit for the purpose of calculating density. i. A separate exterior entry shall be provided to serve a junior accessory dwelling unit. ii. The interior connection to the main living area may be maintained or removed. A separate entrance from the main entrance to the primary structure, with an interior entry to the main living area, shall be provided if the junior accessory dwelling unit does not include a separate bathroom. iii. At a minimum, junior accessory dwelling units shall include an efficiency kitchen, which shall contain a cooking facility, food preparation counter, and storage cabinets. iv. Junior accessory dwelling units shall not be required to provide fire sprinklers if fire sprinklers are not required for the primary residence. The construction of a junior accessory dwelling unit shall not require fire sprinklers to be installed in the existing primary dwelling v. No additional parking spaces shall be required for a junior accessory dwelling unit. b. Utility Connection Fees. Where a junior accessory dwelling unit is created no new utility connection or payment of impact fees shall be required. Page 47 of 64 Attachment C c. Fire and Life Protection. For purposes of any fire or life protection ordinance or regulation, a junior accessory dwelling unit shall not be considered a separate or new dwelling unit. 4. Procedural Requirements. A junior accessory dwelling unit that meets the standards contained in this section shall be subject to ministerial review (building permit) and approval without discretionary review (i.e., use permit, architectural review, etc.) or public hearing. a. Within sixty days of receiving a complete application, the city shall approve any such application which complies with all applicable requirements of this section. b. Building permit applications for junior accessory dwelling units on lots containing an existing single-family residence shall not include other changes or improvements to the property unless those improvements are required to facilitate the creation of the junior accessory dwelling unit. 5. Owner Occupancy. The Except as required by state law, the owner of the property shall occupy either the primary residence or the junior accessory dwelling unit. 6. Covenant Agreement. Prior Except as required by state law, prior to the issuance of building permits for a junior accessory dwelling unit, a covenant agreement shall be recorded which discloses the structure’s approved floor plan and status as a “junior accessory dwelling unit” and agreeing that the owner of the property will occupy either the primary residence or the junior accessory dwelling unit. This agreement shall be recorded in the office of the county recorder to provide constructive notice to all future owners of the property. 7. No Short-Term Rental. A junior accessory dwelling unit cannot be rented for a period of less than thirty days. Homestay use of a junior accessory dwelling unit is prohibited. 8. Violations. Violation of any of the provisions set forth in this chapter shall be subject to code enforcement action as provided in Title 1. D. Guest Quarters. Page 48 of 64 Attachment C 1. Purpose and Intent. The purpose of this section is to establish regulations for the development of guest quarters as an approved accessory use to a primary residential unit in accordance with Section 17.70.010 (Accessory structures). 2. Applicability. This section does not apply to legally established dwellings or accessory dwelling units, or accessory structures, which are separately defined in Chapter 17.158 (General Definitions). 3. General Requirements. Guest quarters shall conform to all applicable zoning regulations such as height, yards, parking, building coverage, etc., and shall be subject to the following provisions: a. Accessory to Primary Residence. Guest quarters may only be used in conjunction with a primary residence that contains a kitchen and may consist of detached structures or additions to primary structures. Only one guest quarters may be permitted per property. b. Size. Guest quarters shall be no larger than four hundred fifty square feet. c. Density and Development Standards. Guest quarters shall be consistent with density provisions and development standards of the underlying zone. For the purposes of calculating density in multi-unit residential zones, guest quarters will be considered an additional bedroom, accessory to the primary unit. The structure may not exceed four hundred fifty square feet and shall remain in an open floor plan (studio configuration). d. Zones in Which Guest Quarters May Be Allowed. Upon meeting the requirements in this section, guest quarters may be established in the following zones: R-1, R-2, R-3, R-4, and O, when the primary use on the site is a single- unit residential dwelling. e. Areas Prohibited. Guest quarters shall not be established in any condominium or planned development project unless specifically addressed in the planned development ordinance as adopted or amended, or any mobile home subdivision or trailer park. Guest quarters shall not be allowed on lots with an existing accessory dwelling unit. f. Owner Occupancy. The property must be occupied by the property owner as the owner’s primary place of residence. If a property can no longer be occupied Page 49 of 64 Attachment C as the owner’s primary place of residence, the guest quarters may continue to be used as habitable space (e.g., office, pool house, art studio) but can no longer be used as overnight sleeping quarters. g. No Separate Rental. Guest quarters may not be rented separately from the primary dwelling unit. h. No Kitchen Facilities. No facilities meeting the definition of a “kitchen” as defined in Chapter 17.158 (General Definitions) may be installed and plumbing shall be provided for bathroom use only. No plumbing may be provided to “wet bars,” dishwashers, or any features that could be used for a kitchen. Plans approved for construction of guest quarters shall not include countertops or plumbing designed for subsequent installation of sinks, dishwashers, garbage disposals, or any other features consistent with the definition of a “kitchen.” 4. Procedural Requirements. Prior to filing building plans with the city building division, the following shall be met: a. Design Review. All requests shall be reviewed for consistency with the city’s community design guidelines and this section. All new development projects within historic districts or within properties that contain designated historic structures shall be referred to the cultural heritage committee to be reviewed for consistency with Secretary of the Interior standards for treatment of a historic property. b. Owner’s Agreement with the City. Prior to the issuance of construction permits, a covenant agreement shall be recorded that discloses the structure’s approved floor plan and status as “guest quarters,” which cannot be used as an independent dwelling unit, and may only be used in conjunction with the primary residence that contains a kitchen. This agreement shall be recorded in the office of the county recorder to provide constructive notice to all future owners of the property. The covenant agreement also may contain authorization for annual inspections, and to allow the city upon reasonable time and notice to inspect the premises for compliance with the agreement and to verify continued compliance with requirements of this section and health and safety codes. If a property can no longer be occupied as the owner’s primary place of residence, the guest quarters may continue to be used as habitable space (e.g., office, pool house, art studio) but shall no longer be used as overnight sleeping quarters. Page 50 of 64 Attachment C c. Conversion of Guest Quarters to an Accessory Dwelling Unit. A legally established guest quarters may either be retained in its configuration or be converted to an accessory dwelling unit in compliance with the provisions of this chapter. (Ord. 1705 § 44, 2021) Page 51 of 64 Page 52 of 64 STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 651 Bannon Street, Suite 400 Sacramento, CA 95811 (916) 263-2911 / FAX (916) 263-7453 www.hcd.ca.gov September 11, 2024 Timmi Tway Director of Community Development City of San Luis Obispo 919 Palm St San Luis Obispo, CA 93401 Dear Timmi Tway: RE: Review of San Luis Obispo’s Accessory Dwelling Unit (ADU) Ordinance under State ADU Law (Gov. Code, §§ 66310 – 66342) Please Note: As of March 25, 2024, with the Chaptering of Senate Bill (SB) 477 (Chapter 7, Statutes of 2024), the sections of Government Code relevant to State ADU and Junior Accessory Dwelling Unit (JADU) Law have been re-numbered (Enclosure 1). Thank you for submitting the City of San Luis Obispo (City) ADU Ordinance No. 1705 (Ordinance), adopted December 7, 2021, to the California Department of Housing and Community Development (HCD). HCD has reviewed the Ordinance and submits these written findings pursuant to Government Code section 66326, subdivision (a). HCD finds that the Ordinance fails to comply with State ADU and JADU Laws in the manner noted below. Under section 66326, subdivision (b)(1), the City has up to 30 days to respond to these findings. Accordingly, the City must provide a written response to these findings no later than October 11, 2024. The Ordinance addresses many statutory requirements; however, HCD finds that the Ordinance does not comply with State ADU Law in the following respects: 1. Statutory Numbering - The Ordinance contains several references to code sections that were deleted by SB 477, effective March 25, 2024. These include Government Code sections 65852.2, 65852.22 and 65852.26. The contents of these sections were relocated to Government Code, Title 7, Division 1, Chapter 13 (sections 66310-66342, see Enclosure). The City must amend the Ordinance to refer to the correct code sections. 2. Section 17.86.020 B.3.a. – Zones – The Ordinance creates a discrete list of zones that permit ADU development, namely “AG, C/OS, R-1, R-2, R-3, R-4, or O” zones. HCD requests and requires more information on this limitation on zones that permit by-right residential development within the City. Government Code section 66314, subdivision (d)(2) allows ADUs wherever a “lot is zoned to Page 53 of 64 Timmi Tway, Planning and Zoning Page 2 allow single-family or multifamily dwelling residential use and includes a proposed or existing dwelling.” 3. Section 17.86.020 B.3.a. – Mixed Use – The Ordinance states, “Structures that contain both commercial and residential uses are not considered residential structures.” However, this will likely have the effect of disallowing ADU development in or with mixed-use lots, otherwise authorized under state law. Government Code section 66323, subdivision (a) specifically requires that “A local agency shall ministerially approve an application for a building permit within a residential or mixed-use zone to create any of the following…” before referring to units with existing or proposed single-family dwellings (in subdivisions (a)(1) and (a)(2) and multifamily dwellings (in subdivisions (a)(3) and (a)(4).Additionally, Government Code section 66317, subdivision (d)(2), permits ADUs where “The lot is zoned to allow single-family or multifamily dwelling residential use and includes a proposed or existing dwelling.” Therefore, the City must amend the Ordinance to comply with State ADU Law. 4. Section 17.86.020 B.3.b.1. – Max Sizes – The Ordinance states, “The gross floor area of an accessory dwelling unit shall be no less than 150 square feet and shall not exceed 850 square feet for a studio or one -bedroom unit, or 1,000 square feet for a unit containing two or more bedrooms.” Although the City may impose maximum sizes for ADUs, some types of ADUs may not have size limitations under state law. For example, ADUs created pursuant to Government Code section 66323, subdivisions (a)(1), (3), and (4) do not have size limitations. Therefore, the City must remove or amend the referenced Ordinance language. 5. Section 17.86.020 B.3.c and B.3.i. – ADU Allowance – The Ordinance states, “Only one accessory dwelling unit is permitted per lot.” It later notes that while an ADU subject to Government Code section 66323 will receive ministerial approval, “The provisions of Government Code Section 65852.2(e) cannot be combined with other accessory dwelling unit provisions of Section 17.86.020 and no exceptions are available for projects subject to Section 65852.2(e).” These provisions unlawfully limit ADUs to one per lot, regardless of the format of the ADU. Government Code section 66323 states, “Notwithstanding Sections 66314 to 66322, inclusive, a local agency shall ministerially approve an application for a building permit within a residential or mixed-use zone to create any of the following: (1) One accessory dwelling unit and one junior accessory dwelling unit per lot with a proposed or existing single-family dwelling…(A) The accessory dwelling unit or junior accessory dwelling unit is within the proposed space of a single family dwelling or existing space of a single-family dwelling or accessory structure.” Subparagraph (2) permits “[o]ne detached, new construction, accessory dwelling unit that does not exceed four-foot side and Page 54 of 64 Timmi Tway, Planning and Zoning Page 3 rear yard setbacks.” The use of the term “any” followed by an enumeration of by right ADU types permitted means that any of these ADU types can be combined on a lot zoned for single-family dwellings. This permits a homeowner, who meets specified requirements, to create one converted ADU; one detached, new construction ADU; and one JADU. Thus, if the local agency approves an ADU that is created from existing (or proposed) space, and the owner subsequently applies for a detached ADU (or vice versa) that meets the size and setbacks pursuant to the subdivision, the local agency cannot deny the application, nor deny a permit for a JADU under this section. HCD notes that the Legislature, in creating the list, did not use “or” nor “one of” to indicate only one or another would be applicable to the exclusion of the other. Limiting single-family lots to one ADU would prevent property owners from creating ADUs by-right under section 66323. Therefore, the City must amend the Ordinance to allow for all by-right ADU combinations. 6. Section 17.86.020 B.3.d.3. and 4. – Height – The Ordinance allows, “Walls up to 16 feet in height” and states “Accessory dwelling units that include the creation of new square footage shall be limited to sixteen feet in height.” However, However, Government Code section 66323, subdivision (a)(2)(B), directly refers to Government Code section 66321 (b)(4), which increases height maximums under certain conditions. The City must amend the Ordinance to comply with State ADU Law. 7. Section 17.86.020 B.3.e. and C.3.4. – Sprinklers – The Ordinance states, “Accessory dwelling units shall not be required to provide fire sprinklers if fire sprinklers are not required for the primary residence.” A similar statement is made for JADUs. However, Government Code section 66314, subdivision (d)(12) and 66323, subdivision (c) specifies an important additional limitation: “The construction of an accessory dwelling unit shall not trigger a requirement for fire sprinklers to be installed in the existing primary dwelling.” Therefore, the City must add this language to the Ordinance to comply with State ADU Law. 8. Section 17.86.020 B.3.g. – Historic Resources – The Ordinance states, “Accessory dwelling units on listed historic properties and in historic districts shall be consistent with the historic preservation ordinance, including historic preservation guidelines and Secretary of the Interior standards for the treatment of historic properties.” However, the parameters of historic property listing, or historic districts is unclear. HCD requires more information – are local historic registries or locally designated historic districts relevant criteria for this section? Government Code section 66314, subdivision (b)(1) refers only to the “California Register of Historical Resources”. Page 55 of 64 Timmi Tway, Planning and Zoning Page 4 9. Section 17.86.020 B.4.a. – Denial Requirements – The Ordinance states, “Within sixty days of receiving a complete application, the city shall approve any such application which complies with all applicable requirements and development standards identified in this chapter. When an accessory dwelling unit is proposed within a new residential structure, this sixty-day requirement shall only apply once all other aspects of the permit are approved.” However, Government Code section 66317, subdivision (a) states, “The permitting agency shall either approve or deny the application to create or serve an accessory dwelling unit or a junior accessory dwelling unit within 60 days from the date the permitting agency receives a completed application,” and subdivision (b) states, “If a permitting agency denies an application for an accessory dwelling unit or junior accessory dwelling unit pursuant to subdivision (a), the permitting agency shall, within the time period described in subdivision (a), return in writing a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the application can be remedied by the applicant.” As written, the Ordinance does not address state law requirements for denials. Therefore, the City must amend the Ordinance to reflect the entirety of the approval and denial process to comply with State ADU Law. 10. Section 17.86.020 C.2.f. – JADUs on Multiple SFH Lots – The Ordinance states, “A junior accessory dwelling unit may only be located on a lot that contains one permitted single-family structure or in connection with the construction of a single-family structure.” This would unlawfully restrict JADUs on any lot with more than one single-family primary dwelling. However, Government Code section 66333, subdivision (a) permits “one [JADU] per residential lot zoned for single-family residences with a single-family residence built, or proposed to be built, on the lot.” Note that this says “a” single-family residence, not “one” single-family residence built. 11. As Government Code section 66336 states, “A local agency shall not deny an application for a permit to create a junior accessory dwelling unit pursuant to this article due to the correction of nonconforming zoning conditions, building code violations, or unpermitted structures that do not present a threat to public health and safety and that are not affected by the construction of the junior accessory dwelling unit.” Multiple single-family homes on a single lot would be a nonconforming zoning condition that may not preclude the creation of a JADU. Therefore, lots with multiple single-family homes may have one JADU per lot. The City must amend the Ordinance to comply with State ADU Law. 12. Section 17.86.020 C.3.a.2. – JADUs, Sanitation, and Interior Entry – The Ordinance makes no reference to sanitation for JADUs, and states “The interior connection to the main living area may be maintained or removed.” However, Government Code section 66333, subdivision (e) states, “If a permitted junior accessory dwelling unit does not include a separate bathroom, the permitted Page 56 of 64 Timmi Tway, Planning and Zoning Page 5 junior accessory dwelling unit shall include a separate entrance from the main entrance to the structure, with an interior entry to the main living area.” Therefore, the City must amend the Ordinance to comply with State ADU Law. 13. Section 17.86.020 C.7. – Short Term Rental – The Ordinance states, “A junior accessory dwelling unit cannot be rented for a period of less than thirty days. Homestay use of a junior accessory dwelling unit is prohibited.” However, Government Code section 66333 does not reference term limits for JADUs and therefore such a requirement would be unlawful and inconsistent with State JADU Law. The City must amend the Ordinance accordingly. The City has two options in response to this letter1. The City can either amend the Ordinance to comply with State ADU Law2 or adopt the Ordinance without changes and include findings in its resolution adopting the Ordinance that explain the reasons the City believes that the Ordinance complies with State ADU Law despite HCD’s findings 3. If the City fails to take either course of action and bring the Ordinance into compliance with State ADU Law, HCD must notify the City and may notify the California Office of the Attorney General that the City is in violation of State ADU Law4. HCD appreciates the City’s efforts in the preparation and adoption of the Ordinance and welcomes the opportunity to assist the City in fully complying with State ADU Law. Please contact Mike Van Gorder, of our staff, at (916) 776-7541 or at mike.vangorder@hcd.ca.gov if you have any questions or would like HCD’s technical assistance in these matters. Sincerely, Jamie Candelaria Senior Housing Accountability Unit Manager Housing Policy Development Division 1 Gov. Code, § 66326, subd. (b)(2). 2 Gov. Code, § 66326, subd. (b)(2)(A). 3 Gov. Code, § 66326, subd. (b)(2)(B). 4 Gov. Code, § 66326, subd. (c). Page 57 of 64 State ADU/JADU Law Statutory Conversion Table New Government Code Sections Previous Government Code Sections Article 1. General Provisions 66310 65852.150 (a) 66311 65852.150 (b) 66312 65852.150 (c) 66313 General Definition Section 65852.2 (j) 65852.22 (j) Article 2. Accessory Dwelling Unit Approvals 66314 65852.2(a)(1)(A), (D)(i)-(xii), (a)(4)-(5) 66315 65852.2 (a)(8) 66316 65852.2 (a)(6) 66317 65852.2 (a)(3), (a)(7) 66318 65852.2 (a)(9), 65852.2 (a)(2) 66319 65852.2 (a)(10) 66320 65852.2 (b) 66321 65852.2 (c) 66322 65852.2 (d) 66323 65852.2 (e) 66324 65852.2 (f) 66325 65852.2 (g) 66326 65852.2 (h) 66327 65852.2 (i) 66328 65852.2 (k) 66329 65852.2 (l) 66330 65852.2 (m) 66331 65852.2 (n) 66332 65852.23. Article 3. Junior Accessory Dwelling Units 66333 65852.22 (a) 66334 65852.22 (b) 66335 65852.22 (c) 66336 65852.22 (d) 66337 65852.22 (e) 66338 65852.22 (f)-(g) 66339 65852.22 (h) Article 4. Accessory Dwelling Unit Sales 66340 65852.26 (b) 66341 65852.26 (a) 66342 65852.2 (a)(10) Page 58 of 64 Page 59 of 64 Page 60 of 64 Page 61 of 64 Page 62 of 64 Page 63 of 64 Page 64 of 64