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HomeMy WebLinkAboutItem 6b. Introduce Ordinance amending Title 16 (Subdivision Regulations) and Title 17 (Zoning Regulations) (CODE-0031-2025) Item 6b Department: Community Development Cost Center: 4006 For Agenda of: 3/4/2025 Placement: Public Hearing Estimated Time: 60 minutes FROM: Timmi Tway, Community Development Director Prepared By: David Amini, Housing Coordinator; Teresa McClish, Principal Planner SUBJECT: INTRODUCE AN ORDINANCE AMENDING TITLE 16 (SUBDIVISION REGULATIONS) AND TITLE 17 (ZONING REGULATIONS) OF THE MUNICIPAL CODE ADDRESSING STATE LEGISLATIVE UPDATES ON ACCESSORY AND JUNIOR ACCESSORY DWELLING UNITS AND URBAN LOT SPLITS, AND CLARIFICATIONS TO RE RECOMMENDATION As recommended by the Planning Commission, introduce a Draft Ordinance entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, a pproving an update to the City’s Subdivision Regulations (Title 16) and Zoning Regulations (Title 17) to implement State Legislative Updates on Accessory and Junior Accessory Dwelling Units and Urban Lot Splits; and an Update to the City’s Zoning Regulations (Title 17) to Provide Clarifications to Regulations for Affordable Housing Projects with an Exemption from Environmental Review (CEQA).” POLICY CONTEXT The California State Legislature has passed numerous bills that require updates to the City’s Municipal Code to maintain consistency with state housing law. The proposed amendments to comply with state law, as well as other amendments identified for more efficient processing or clarification, are supported by City policy as described below. On November 17, 2020, the City Council adopte d the 6th Cycle Housing Element, which includes housing policies and programs for 2020 -2028. Accessory Dwelling Units (ADU) are an important part of the City’s housing production, address state mandated Regional Housing Needs Allocation (RHNA), and help the City meet housing policy goals. The Housing Element contains the following policies that encourage housing production. HE Policy 2.4: Encourage housing production for all financial strata of the City's population, as allocated in the Regional Housing Needs Allocation, for the 6th cycle planning period. The number of units per income category are: extremely low and very low income, 825 units; low income, 520 units; moderate income, 604 units; and above moderate income, 1,405 units. HE Policy 8.1: Encourage housing development that meets a variety of special needs, including large families, single parents, disabled persons, the elderly, students, veterans, Page 551 of 717 Item 6b farmworkers, the homeless, or those seeking congregate care, group housing, single - room occupancy, or cohousing accommodations, utilizing universal design. HE Policy 6.8: To help meet the 6th cycle RHNA production targets, the City will support residential infill development and promote higher residential density where appropriate. The State Housing and Community Development department (HCD) allows the City to count one-half of ADU production towards moderate income affordable housing allocations. ADU production allows important infill opportunities and missing middle housing typologies through a variety of detached and attached formats in both single - family and multi-family residential districts. Amending the City’s subdivision regulations for urban lot splits expands the types of lots eligible for subdivision in multi-family districts and supports additional residential infill projects. Community Development Department (CDD) staff also periodically reviews the City’s Zoning Regulations to identify possible barriers to development, including affordable housing development. Several of the proposed amendments provide additional clarifications on regulations. This is especially important as housing production is an integral part of the Housing and Homelessness Major City Goal: Support the expansion of housing options for all, and continue to facilitate the production of housing, including the necessary supporting infrastructure, with an emphasis on affordable and workforce housing as well as accessibly connected development. REPORT-IN-BRIEF The California State Legislature passed numerous bills that went into effect in 2024 and at the beginning of 2025, introducing new or altered state laws related to ADUs, junior accessory dwelling units (JADUs), and urban lot splits, requiring amendments to the City’s subdivision and zoning regulations. In accordance with Government Code §65585, on September 11, 2024, HCD provided the City’s Community Development Department with a letter outlining thirteen purported inconsistencies between the City’s Zoning Regulations and state ADU law. Many cities and counties in California received a similar letter, as HCD has indicated their intent to more strictly enforce these laws. As the state agency tasked with interpreting and enforcing state housing law, HCD is requiring that amendments be made to the City’s Zoning Regulations to address these inconsistencies, or for CDD to provide to HCD an explanation as to how the City’s regulations are already consistent with state ADU law. HCD’s letter and CDD’s response can be viewed in Attachment C. The proposed amendments seek to bring the City’s Municipal Code into compliance with state law per new legislation regarding ADUs, JADUs, and urban lot splits and correspondence from California’s Department of Housing and Community Development. In addition to state law compliance, some of the proposed amendments address miscellaneous items identified via community feedback that seek to alleviate possible barriers to housing development and streamline regulations and processes. The two sections of the City’s Municipal Code being amended are the City’s Subdivision Regulations in Title 16, and the Zoning Regulations in Title 17. Due to the continuing Page 552 of 717 Item 6b legislative updates to state housing law, Staff anticipates a second update to the Subdivision and Zoning Regulations later this year. DISCUSSION New State Legislation Several new significant state laws were recently passed that necessitate changes to local regulations in the municipal code, as outlined in the letter received from the State on September 11, 2024. These laws include:  Senate Bill No. 477 reorganized and renumbered 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).  Senate Bill No. 1211 introduced several changes to Government Code sections 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.  Senate Bill No. 450 introduced several changes to Government Code sections 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, codified in Government Code sections 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 need not be the same. 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.” Page 553 of 717 Item 6b  Effective July 1, 2025, Senate Bill No. 1123 will implement several changes to the provisions introduced under Senate Bill No. 684. This bill ex pands the types of lots eligible for major urban lot splits and adds new requirements and allowances for these developments. The proposed amendments incorporating major urban lot splits into the municipal code are intended to proactively comply with this law. HCD Letter - Accessory Dwelling Units Letter from California’s Department of Housing and Community Development On September 11, 2024, CDD received a letter from HCD1 outlining inconsistencies between the City’s Municipal Code and California’s Gove rnment Code regarding ADUs. CDD provided a response to the 13 items identified by HCD that described how the City would propose 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 C. 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.  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. Th e proposed ordinance provided in Attachment A 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. The proposed code 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 A - Section 13; 17.86.020(B)(3))  Mixed Use: The City’s existing Zoning Regulations state that structures conta ining 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. The proposed code update would remove exemption of mixed-use structures from the ADU Regulations, thereby allowing ADUs to be developed on mixed-use properties. (Attachment A – Section 13; 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 1HCD has statutory authority to review local agencies’ ADU ordinances and to enforce State ADU Laws (see Govt. Code §65585.) Page 554 of 717 Item 6b imposing specific gross floor area limitations on certain ADU configurations described under said section. The proposed code update would add language exempting ADUs that qualify under this section of state law from the City’s gross floor area requirements. (Attachment A – Section 13; 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 now 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 accessory dwelling unit…” 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 Governme nt Code 66323. The proposed code update would remove language from the Zoning Regulations that limit the number of ADUs permitted on a residential property. (Attachment A – Section 13; 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. The proposed code update would add this additional fire sprinkler language to the Zoning Regulations. (Attachment A – Section 13; 17.86.020(B)(3))  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 are 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. The proposed code update would add this language for compliance with state law. (Attachment A – Section 13; 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. The proposed code update would change the Zoning Regulations to address this discrepancy. (Attachment A – Section 13; 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 Page 555 of 717 Item 6b contain a separate bathroom must maintain an interior entrance to the main residence in addition to the required separate exterior entrance. The proposed code update would add this language to the Zoning Regulations. (Attachment A – Section 13; 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, which prohibit rental terms of less than 30 days for JADUs, 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 removing this portion of 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 Pertaining to ADUs In addition to the changes described above, staff proposes several miscellaneous amendments related to ADUs. These changes were identified through discussions with builders, developers, and property owners, 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 current zoning regulations require that new ADUs match the primary residence in style, form, and materials. As state law continues to require objective design standards regarding ADUs, these specific requirements can be subjective in nature, challenging to implement, and do not always result in the best building design. CDD has received numerous requests from community members to remove these provisions in order to allow more flexibility in the design of ADUs. This proposed ordinance update would remove this language from the Zoning Regulations. (Attachment A – Section 13; 17.86.020(B)(3))  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. The proposed code update would add references to state ADU law to account for instances in which ADUs can be separately conveyed. (Attachment A – Section 8; 16.15.035, Section 9; 16.17.020, and Section 13; 17.86.020(B)(2)) Page 556 of 717 Item 6b 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 pre -emptive 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 residence (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 JADU when it officially becomes existing dwelling unit. 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 waste ful to require this two-step process. To streamline this process, staff is proposing the following provision to be added as 17.86.020(B)(4)(c) (Attachment A – Section 13): Building permit applications that propose the expansion or alteration of an existing single-family or multifamily dwelling, or the conversion of existing space within a single-family or multifamily dwelling, for the purpose of creating an accessory dwelling unit or a junior accessory dwelling unit, are permissible under this Chapter. Said expansion or alteration to an existing single -family or multifamily dwelling shall be consistent with the City’s objective design standards and any applicable zoning regulations. The number of ADUs within the existing or proposed converted space of a multifamily dwelling shall not exceed 25 percent of the existing number of multifamily dwelling units. The provisions of this section do not apply to new construction multifamily dwellings. The language provided above would allow an applicant to propose an a ddition or alteration to a structure with the intent of converting it to an ADU, which is allowed by state law. The City would not require the applicant to first “create” the existing space by having it permitted and built as an addition prior to allowing its conversion to an ADU. The language above clarifies that the City will process an addition/alteration along with the request to “convert” that space into an ADU. This results in the same outcome, as would otherwise be required by state law, but eliminates onerous steps for the property owner. Urban Lot Splits Originally introduced under Senate Bill No. 9, now codified 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 Page 557 of 717 Item 6b 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, altering the provisions of these sections. The update included in Attachment A would incorporate the changes presented in said legislation. 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, now referenced under California Government Code Sections 65852.28, 65913.4.5, and 66499.41, creating a similar subdivision and development system for multi -family zoned properties. In addition to SB 684, the state legislature passed Senate Bill No. 1123, 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. 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 ref erence both types independently of one another. Therefore, staff has proposed to refer to urban lot splits under California Government Code Sections 65852.21 and 66411.7 (SB 9 & SB 450) 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.” Update for Major Urban Lot Splits Major urban lot splits are established under this code update. This allows property owners of multifamily and vacant single family lots to create a subdivision of up to 10 lots, and build housing units on each resulting parcel. Below is a summary of major urban lot splits, including various qualifying requirements, standards, and regulations that apply as required by state law:  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 A – Section 3; 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 This provision is allowed per Government Code 65589.5(2)(d) (Attachment A – Section 4; 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 A – Section 4; 16.15.010) Page 558 of 717 Item 6b  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 A – Section 5; 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 66499.412, unless the development satisfies the requirements specified therein. (Attachment A – Section 5; 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 A – Section 5; 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 A – Section 5; 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 A – Section 5; 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. The square footages listed are per state law requirements. (Attachment A – Section 5; 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. This is a requirement of City law. (Attachment A – Section 5; 16.15.020)  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 A – Section 5; 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 2 Government Code 66499.41 prohibits the following sites from being allowed an urban lot split: Prime farmland, wetlands, land within a very high fire hazard severity zon e, hazardous waste sites, sites within an earthquake fault zone, floor areas, within floodways, land identified for conservation, habitat for protected species, or land under conservation easement. Page 559 of 717 Item 6b affordable units as projected and be subject to a recorded affordability restriction o f 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 i n subparagraph (B) of paragraph (3) of subdivision (c) of California Government Code Section 65583.2, whichever is greater. (Attachment A – Section 5; 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 A – Section 5; 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. This requirement is provided by California General Code Section 66499.41 (Attachment A – Section 5; 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 A – Section 5; 16.15.020) Update for 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, which are only allowed in the single-family (R-1) zone. 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 to the municipal code:  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 A – Section 5; 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 A – Section 5; 16.15.020) 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. Page 560 of 717 Item 6b 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 requirements, some 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 sta te law. (Attachment A – Section 10; 16.26.065) 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 by requiring the projects to contain some commercial component in commercial zones (essentially requiring projects in commercial zones to be mixed-use). The intent of these requirements was to create mixed use areas where the City desires projects to have both commercial and residential components, which can help activate streets in commercial areas. This required commercial component complicates financing for these projects, which can make projects very difficult or infeasible. With the production of such housing being a priority for the City, and to be consistent 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 A – Section 11): 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. This language would remove the commercial requirement for supportive and/or transitional housing located in commercial zones outside of the Downtown Core and C-D zones in order to attempt to remove this identified barrier to this type of housing development. Page 561 of 717 Item 6b Previous Council or Advisory Body Action The Planning Commission met on February 12, 2025 (Agenda Packet) and reviewed the proposed amendments and adopted a Resolution (Attachment B) which recommended that City Council adopt an Ordinance amending Title 16 (Subdivision Regulations) and Title 17 (Zoning Regulations) of the Municipal Code 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 en vironmental review (CEQA), as represented in the staff report and attachments, with modifications as follows (in bold): 1. Revise Section 17.86.020(C)(5) to read as follows: “Except as provided by state law, the owner of the property shall occupy either the primary residence or the junior accessory dwelling unit.” Staff recommended this modification in agenda correspondence submitted for the Planning Commission hearing. The reference made to state law is intended to refer to several exceptions to the owner occupancy requirement under state JADU law. 2. Revise Section 17.86.020(C)(6) to read as follows: “Except as provided by state law, prior to the issuance of building permits for a junior accessory dwelling unit...” Staff recommended this modification in agenda correspondence submitted for the Planning Commission hearing. The reference made to state law is intended to refer to any future changes to state JADU law that may require exceptions to this covenant agreement requirement. 3. Revise Section 16.15.025(D)(2) to read as follows: “There is a car share vehicle, as defined in Section 16.26.065, located within one block...” Staff recommended this modification in agenda correspondence submitted for the Planning Commission hearing in order to reference the correct municipal code section. 4. Revise Section 16.15.020(I)(2) to read as follows: “Copies of the unrecorded easement agreements must be submitted with the application. The easement agreements must be recorded against the property prior to or concurrently with the final parcel map.” The Planning Commission recommended this modification in order to better align with the practical application of recording subdivision parcel maps. Page 562 of 717 Item 6b Next Steps This update to the Zoning Regulations addresses the requirements of new state housing law and comments by HCD and removes barriers to housing development identified through community outreach and collaboration. Additional feedback from the community will be taken into consideration for a future update to the Zoning Regulat ions. Public Engagement Advisement of proposed amendments were discussed at the City’s most recent Developer’s Roundtable meeting, and the Roundtable attendees were provided a link to the Planning Commission’s agenda packet and invited to comment. Public notice was provided for the Planning Commission meeting (February 12, 2025), and public comment was received prior to and at the meeting. Public notice of this hearing has been published in a widely circulated local newspaper, and hearing agendas for this meeting have been posted at City Hall, consistent with adopted notification procedures. Email notices have been provided for each public meeting to those on the interested parties list. CONCURRENCE Planning Division Staff, as well as the City Attorney’s office, have reviewed the proposed changes to Titles 16 and 17 and provided feedback that has been incorporated into the proposed amendments in this report. ENVIRONMENTAL REVIEW The proposed code amendments have been assessed in accordance with the aut hority 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 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 implementin g state law related to accessory dwelling units. The proposed code amendments regarding the Subdivision Regulations are not considered a project under CEQA pursuant to Government Code Sections 65852.28(e), 65913.4.5(b), and 66499.41(i) and thus are not subject to further environmental review under CEQA. FISCAL IMPACT Budgeted: N/A Budget Year: N/A Funding Identified: N/A Page 563 of 717 Item 6b Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $0 $0 $0 $0 State Federal Fees Other: Total $0 $0 $0 $0 The amendments contained in the proposed ordinance do not have a fiscal impact on the City. ALTERNATIVES 1. Continue consideration of the proposed zoning amendments. An action continuing the project should include direction for staff on pertinent issues that should be further studied or analyzed for future presentation to the Council, with consideration that the State has provided the City with a letter containing items that must be addressed to ensure City regulations are compliant with state law. 2. Do not approve the proposed zoning amendments. Not approving the amendments would result in the City’s Municipal Code not being consistent with state law. Denying the proposed amendments would also allow a possible barrier to affordable housing production to remain within the City’s Zoning Regulations. ATTACHMENTS A - Draft Ordinance adopting amendments to Titles 16 (Subdivision Regulations) and 17 (Zoning Regulations) B - Signed Planning Commission Resolution recommending that City Council adopt amendments to Titles 16 and 17 with modifications presented by staff and the Commission C - HCD Correspondence Page 564 of 717 O ______ ORDINANCE NO. _____ (2025 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING AN UPDATE TO THE CITY’S SUBDIVISON REGULATIONS (TITLE 16) AND ZONING REGULATIONS (TITLE 17) TO IMPLEMENT STATE LEGISLATIVE UPDATES ON ACCESSORY AND JUNIOR ACCESSORY DWELLING UNITS AND URBAN LOT SPLITS; AND AN UPDATE TO THE CITY’S ZONING REGULATIONS (TITLE 17) TO PROVIDE CLARIFICATIONS TO REGULATIONS FOR AFFORDABLE HOUSING PROJECTS WITH AN EXEMPTION FROM ENVIRONMENTAL REVIEW (CEQA) (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 efficiently 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 Page 565 of 717 Ordinance No. _____ (2025 Series) Page 2 O ______ WHEREAS, the City Council 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 March 4, 2025, for the purpose of introducing 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 mann er required by the law; and NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Findings. Based upon all evidence, and as recommended by the Planning Commission, the City Council 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. 4. Requiring a junior accessory dwelling unit to be rented for a period of at least thirty days ensures housing affordability as well as consistency with other elements of the Ordinance regarding ADUs, which do have term limits under state law. JADUs and ADUs represent a significant portion of the City’s new housing stock, and allowing short term rentals for ADUs and JADUs in this region of the State would cause a significant reduction in availability in the local rental market, thereby reducing available housing for working families and individuals in favor of short-term rental income for investors. This requirement is consistent with state law and furthers state law’s goals of housing production. 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.) SECTION 3. Title 16 SUBDIVISIONS: Section 16.15.005 Purpose and applicability is hereby amended as follows: Page 566 of 717 Ordinance No. _____ (2025 Series) Page 3 O ______ 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 pr ovided 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). SECTION 4. Section 16.15.010 Permit application and review procedures is hereby amended as follows: 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 and 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 Page 567 of 717 Ordinance No. _____ (2025 Series) Page 4 O ______ 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 applicatio n 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 remedied by said applicant. These procedural requirements shall also apply to the housing development project associated with the urban lot split. SECTION 5. Section 16.15.020 Qualifying requirements is hereby amended as follows: 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. Page 568 of 717 Ordinance No. _____ (2025 Series) Page 5 O ______ 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. 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 conservation 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. Page 569 of 717 Ordinance No. _____ (2025 Series) Page 6 O ______ 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. 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 t he 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. Page 570 of 717 Ordinance No. _____ (2025 Series) Page 7 O ______ 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 prior to or concurrent with final parcel map approval. 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 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. Page 571 of 717 Ordinance No. _____ (2025 Series) Page 8 O ______ 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, 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. SECTION 6. Section 16.15.025 Property improvement standards is hereby amended as follows: 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 e asement 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; 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. Page 572 of 717 Ordinance No. _____ (2025 Series) Page 9 O ______ 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 develop ment 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 16.26.065, 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, unless 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) SECTION 7. Section 16.15.030 Exceptions to objective standards is hereby amended as follows: 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 meets all of the below requirements. For the purpose of these requirements, existing improvements or development is not considered a physical constraint. Page 573 of 717 Ordinance No. _____ (2025 Series) Page 10 O ______ 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 un its 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 thou sand two hundred square feet in size when the property is zoned R -1. (Ord. 1729 § 4 (Exh. A), 2023) SECTION 8. Section 16.15.035 Separate conveyance is hereby amended as follows: 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 sha re 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 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. Page 574 of 717 Ordinance No. _____ (2025 Series) Page 11 O ______ 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) SECTION 9. Section 16.17.020 Airspace subdivisions, common interest subdivisions, and flexible lot design subdivisions is hereby amended as follows: 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 allocating 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) SECTION 10. Section 16.26.065 Car Share vehicle is hereby added as follows: “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 a gency 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. SECTION 11. Title 17 ZONING REGULATIONS Section 17.10.020 Use regulations by zone is hereby amended as follows: Page 575 of 717 Ordinance No. _____ (2025 Series) Page 12 O ______ 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 576 of 717 Ordinance No. _____ (2025 Series) Page 13 O ______ SECTION 12. Section 17.69.010 Purpose and application is hereby amended as follows: 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) SECTION 13. Section 17.86.020 Accessory dwelling units, and junior accessory dwelling units, and guest quarters is hereby amended as follows: 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). Page 577 of 717 Ordinance No. _____ (2025 Series) Page 14 O ______ 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. 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 lot s 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. Page 578 of 717 Ordinance No. _____ (2025 Series) Page 15 O ______ 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. 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 squ are 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. Page 579 of 717 Ordinance No. _____ (2025 Series) Page 16 O ______ 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. 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 s ection 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 Page 580 of 717 Ordinance No. _____ (2025 Series) Page 17 O ______ 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, this sixty-day requirement shall only apply once all other aspects of the permit are approved. b. Building permit applications for accessory dwellin g 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 that propose the expansion/alteration of an existing single-family or multifamily dwelling, or the conversion of existing space within a single-family or multifamily dwelling, for the purpose of creating an accessory dwelling unit or junior accessory dwelling unit are permissible under this Chapter. Said expansion or alteration to an existing single-family or multifamily dwelling shall be consistent with the City’s objective design standards and any applicable zoning regulations. The number of ADUs within the existing or proposed converted space of a multifamily dwelling shall not exceed 25 percent of the existing number of multifamily units. The provisions of this section do not apply to new construction multifamily dwellings. 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. Page 581 of 717 Ordinance No. _____ (2025 Series) Page 18 O ______ 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. 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 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. Page 582 of 717 Ordinance No. _____ (2025 Series) Page 19 O ______ 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. 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. Page 583 of 717 Ordinance No. _____ (2025 Series) Page 20 O ______ 5. Owner Occupancy. The Except as provided 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 provided 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. Page 584 of 717 Ordinance No. _____ (2025 Series) Page 21 O ______ SECTION 14. A summary of this ordinance, together with the name s of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The New Times, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage. INTRODUCED on the ________ day of __________ 2025, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the _______ day of __________ 2025, on the following vote: AYES: NOES: ABSENT: ___________________________ Mayor Erica A. Stewart ATTEST: _______________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _______________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________ Teresa Purrington City Clerk Page 585 of 717 Page 586 of 717 RESOLUTION NO. PC-1095-25 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 587 of 717 Planning Commission Resolution No. PC-1095-25 CODE-0031-2025 Page 2 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.) 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 A ttachment 1. Upon motion of Commissioner Houghton, seconded by Commissioner Jorgensen, and on the following roll call vote: AYES: Vice Chair Houghton, Commissioner Jorgensen, Commissioner Flores, Commissioner Kahn, Commissioner Tolle, Chair Cooley NOES: None ABSENT: Commissioner Munoz-Morris Page 588 of 717 Planning Commission Resolution No. PC-1095-25 CODE-0031-2025 Page 3 The foregoing resolution was passed and adopted this 12th day of February, 2025. ____ Tyler Corey, Secretary Planning Commission Page 589 of 717 Planning Commission Resolution No. PC-1095-25 CODE-0031-2025 Page 4 ATTACHMENT 1: DRAFT ORDINANCE ORDINANCE NO. _____ (2025 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING AN UPDATE TO THE CITY’S SUBDIVISON REGULATIONS (TITLE 16) AND ZONING REGULATIONS (TITLE 17) TO IMPLEMENT STATE LEGISLATIVE UPDATES ON ACCESSORY AND JUNIOR ACCESSORY DWEL LING UNITS AND URBAN LOT SPLITS; AND AN UPDATE TO THE CITY’S ZONING REGULATIONS (TITLE 17) TO PROVIDE CLARIFICATIONS TO REGULATIONS FOR AFFORDABLE HOUSING PROJECTS WITH AN EXEMPTION FROM ENVIRONMENTAL REVIEW (CEQA) (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 efficiently 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 Page 590 of 717 Planning Commission Resolution No. PC-1095-25 CODE-0031-2025 Page 5 WHEREAS, the City Council 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 March 4, 2025, for the purpose of introducing 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 NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Findings. Based upon all evidence, and as recommended by the Planning Commission, the City Council 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. 4. Requiring a junior accessory dwelling unit to be rented for a period of at least thirty days ensures housing affordability as well as consistency with other elements of the Ordinance regarding ADUs, which do have term limits under state law. JADUs and ADUs represent a significant portion of the City’s new housing stock, and allowing short term rentals for ADUs and JADUs in this region of the State would cause a significant reduction in availability in the local rental market, thereby reducing available housing for working families and individuals in favor of short-term rental income for investors. This requirement is consistent with state law and furthers state law’s goals of housing production. 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.) SECTION 3. Title 16 SUBDIVISIONS: Section 16.15.005 Purpose and applicability is hereby amended as follows: Page 591 of 717 Planning Commission Resolution No. PC-1095-25 CODE-0031-2025 Page 6 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). SECTION 4. Section 16.15.010 Permit application and review procedures is hereby amended as follows: Page 592 of 717 Planning Commission Resolution No. PC-1095-25 CODE-0031-2025 Page 7 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 and 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 applicatio n 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 Page 593 of 717 Planning Commission Resolution No. PC-1095-25 CODE-0031-2025 Page 8 a description of how the application can be remedied by said applicant. These procedural requirements shall also apply to the housing development project associated with the urban lot split. SECTION 5. Section 16.15.020 Qualifying requirements is hereby amended as follows: 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 identifie d for Page 594 of 717 Planning Commission Resolution No. PC-1095-25 CODE-0031-2025 Page 9 conservation or habitat preservation as specifically defined in Government Code Section 65913.4. 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 identifie d for conservation 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 co nservation 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 Page 595 of 717 Planning Commission Resolution No. PC-1095-25 CODE-0031-2025 Page 10 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. 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. Page 596 of 717 Planning Commission Resolution No. PC-1095-25 CODE-0031-2025 Page 11 2. Copies of the unrecorded easement agreements must be submitted with the application. The easement agreements must be recorded against the property prior to or concurrent with final parcel map approval . 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 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 o f 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 ei ther 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. Page 597 of 717 Planning Commission Resolution No. PC-1095-25 CODE-0031-2025 Page 12 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, 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. SECTION 6. Section 16.15.025 Property improvement standards is hereby amended as follows: 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. Page 598 of 717 Planning Commission Resolution No. PC-1095-25 CODE-0031-2025 Page 13 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; 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 Page 599 of 717 Planning Commission Resolution No. PC-1095-25 CODE-0031-2025 Page 14 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 16.26.065, 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, unless 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) SECTION 7. Section 16.15.030 Exceptions to objective standards is hereby amended as follows: 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 meets 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) Page 600 of 717 Planning Commission Resolution No. PC-1095-25 CODE-0031-2025 Page 15 SECTION 8. Section 16.15.035 Separate conveyance is hereby amended as follows: 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 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) SECTION 9. Section 16.17.020 Airspace subdivisions, common interest subdivisions, and flexible lot design subdivisions is hereby amended as follows: Page 601 of 717 Planning Commission Resolution No. PC-1095-25 CODE-0031-2025 Page 16 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, appropri ate covenants, easements or similar documentation allocating 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 rela ted 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) SECTION 10. Section 16.26.065 Car Share vehicle is hereby added as follows: “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 s ervices. 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. SECTION 11. Title 17 ZONING REGULATIONS Section 17.10.020 Use regulations by zone is hereby amended as follows: Residential Care Facilities—6 A A A A A A M/ A M/A M/A MU P Multiple state statutes Page 602 of 717 Planning Commission Resolution No. PC-1095-25 CODE-0031-2025 Page 17 or Fewer Residents Residential Care Facilities—7 or More Residents MU P MU P MU P MU P MU P MU P MU P Multiple state statutes Supportive and/or Transitional Housing, with On- or Off-Site Services A A A A MU P 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 Page 603 of 717 Planning Commission Resolution No. PC-1095-25 CODE-0031-2025 Page 18 Mixed-Use Developmen t A A A A A A A A See Sec. 17.70.130 and GC Sec. 65852.24 SECTION 12. Section 17.69.010 Purpose and application is hereby amended as follows: 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 604 of 717 Planning Commission Resolution No. PC-1095-25 CODE-0031-2025 Page 19 SECTION 13. Section 17.86.020 Accessory dwelling units, and junior accessory dwelling units, and guest quarters is hereby amended as follows: 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. 3. Specific Requirements and Standards. Page 605 of 717 Planning Commission Resolution No. PC-1095-25 CODE-0031-2025 Page 20 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 606 of 717 Planning Commission Resolution No. PC-1095-25 CODE-0031-2025 Page 21 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 e xceed 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. Page 607 of 717 Planning Commission Resolution No. PC-1095-25 CODE-0031-2025 Page 22 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. 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. Page 608 of 717 Planning Commission Resolution No. PC-1095-25 CODE-0031-2025 Page 23 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, 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 that propose the expansion/alteration of an existing single-family or multifamily dwelling, or the conversion of existing space within a single-family or multifamily dwelling, for the purpose of creating an accessory dwelling unit or junior accessory dwelling unit are permissible under this Chapter. Said expansion or alteration to an existing single-family or multifamily dwelling shall be consistent with the City’s objective design standards and any applicable zoning regulat ions. The number of ADUs within the existing or proposed converted space of a multifamily dwelling shall not exceed 25 percent of the existing number of multifamily units. The provisions of this section do not apply to new construction multifamily dwelling s. 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 Page 609 of 717 Planning Commission Resolution No. PC-1095-25 CODE-0031-2025 Page 24 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. 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 Page 610 of 717 Planning Commission Resolution No. PC-1095-25 CODE-0031-2025 Page 25 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 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 accessor y 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. Page 611 of 717 Planning Commission Resolution No. PC-1095-25 CODE-0031-2025 Page 26 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. 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 provided 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 provided 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 Page 612 of 717 Planning Commission Resolution No. PC-1095-25 CODE-0031-2025 Page 27 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. SECTION 14. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The New Times, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage. INTRODUCED on the 4th day of March, 2025, on the following vote: AYES: NOES: ABSENT: ___________________________ Mayor Erica A. Stewart ATTEST: _______________________ Teresa Purrington City Clerk APPROVED AS TO FORM: _______________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. Page 613 of 717 Planning Commission Resolution No. PC-1095-25 CODE-0031-2025 Page 28 ___________________________ Teresa Purrington City Clerk Page 614 of 717 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 615 of 717 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 616 of 717 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 617 of 717 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 618 of 717 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 619 of 717 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 620 of 717 Page 621 of 717 Page 622 of 717 Page 623 of 717 Page 624 of 717 Page 625 of 717 Page 626 of 717 Introduce an Ordinance Amending Title 16 (Subdivision Regulations) and Title 17 (Zoning Regulations) of the City’s Municipal Code (CODE-0031-2025) City Council March 4, 2025 Recommendation As recommended by the Planning Commission, introduce an Ordinance entitled, “Approving an Update to the City’s Subdivision Regulations (Title 16) and Zoning Regulations (Title 17) to Implement State Legislative Updates on Accessory and Junior Accessory Dwelling Units and Urban Lot Splits; and an Update to the City’s Zoning Regulations (Title 17) to Provide Clarifications to Regulations for Affordable Housing Projects with an Exemption from Environmental Review (CEQA)” Background – Why is Proposed Ordinance necessary? •State periodically updates rules regarding development standards •City takes feedback from community members about how to improve code language for clarity and streamlining of housing •City of SLO received letter from California Department of Housing and Community Development (HCD) regarding updates needed in code language to comply with State law General Plan Consistency 6th Cycle Housing Element The proposed amendments to Title 16 and Title 17 are consistent with various policies under the City’s 6th Cycle Housing Element: •Policy 2.4 – encourage housing production for all financial strata of the City’s populations… •Policy 6.8 – to meet the 6th Cycle RHNA production targets, the City will support residential infill development and promote a higher residential density where appropriate •Policy 8.1 – encourage housing development that meets a variety of special needs, including large families, single parents, disabled persons, the elderly, students, veterans, farmworkers, the homeless… Public Notification and Outreach •Project noticed as required by state law and local regulations •Changes discussed at Developer's Roundtable meetings for informational purposes and feedback •Feedback received regarding short-term rental of ADU/JADUs •No changes proposed at this time •Desire to retain ADU/JADU as housing units Summary of Proposed ADU Changes •Removal of language allowing only one ADU per property •Allowing a combination of one ADU, one JADU, and one conversion ADU on any lot with an existing dwelling, per state law •Allowing for ADU’s in any zone that allows residential development, per state law •Allowing for ADUs on properties with multifamily dwellings – up to 8 detached ADUs (SB 1211) Additional Amendments for ADUs/JADUs •Removing language that required new ADUs to match the primary residence in style, form, and materials •Based on feedback from development community •Was difficult to implement •Adding language referencing state law that permits the conveyance and sale of an ADU separate from the primary residence •Removing height restriction from ADUs and allowing up to 25 foot height for ADU’s Urban Lot Splits Urban Lot Splits as Existing Under Ch. 16.15 •Allows subdivision of a single-family zoned property into two lots, relatively equal in size, and the subsequent development of up to 2 residential dwellings per lot New State Legislation •Senate Bill No. 450 •Senate Bill No. 684 •Senate Bill No. 1123 Urban Lot Splits Minor & Major Urban Lot Splits •Urban lot splits for single-family, R-1 properties will be referred to as “minor urban lot splits” •Urban lot splits for multifamily, R-2 and above properties (and vacant R-1 properties), will be referred to as “major urban lot splits” Urban Lot Splits Major Urban Lot Splits •Permitted in multifamily zoned properties less than 5-acres in size and substantially surrounded by urban uses •Allowed in vacant, single-family zoned properties no larger than 1.5 acres •Such property may be subdivided to create up to 10 new lots with up to 10 new residential dwellings (1 dwelling required on each lot) Urban Lot Splits Major Urban Lot Splits Continued •Each lot created by a major urban lot split must be no smaller than 600 SF •If zoned R-1, lots must be no smaller than 1,200 SF •Average floor area for all proposed dwellings associated with a major urban lot split shall not exceed 1,750 SF •A major urban lot split cannot result in the demolition of below market rate housing •Basic standards for lot design, setbacks, access requirements, parking •ADU’s not required to be allowed on lots created through lot splits, per state law. Miscellaneous Changes Car Share Vehicles – Create Definition Section 16.15.025 of the City’s Municipal Code requires 1 parking space per residential unit associated with an urban lot split. This requirement can be waived if: •The property is within 0.5 miles of a high-quality transit corridor, or a major transit stop; or •The property is within 1 block of a car share vehicle Proposed amendments create a definition for car share vehicle in order to provide clarity to applicants and staff Miscellaneous Changes Streamlining of ADU Conversions Currently, property owners required to undergo a “two-step” building permit process when expanding or altering an existing dwelling to convert that space into an ADU or JADU. The Zoning Update streamlines this process by allowing for this to be a one- step process for existing dwellings. •Changed based on feedback from development community to improve and process Miscellaneous Changes Supportive/Transitional Housing Clarification •City received feedback that regulations requiring commercial space in mixed-use zones restrict the development of supportive and transitional affordable housing projects •This requirement is now waived for these specific projects •Intent is to remove barrier to development of needed housing type in community Next Steps •After Council approval, Ordinance will be sent to State for required review •If there are additional changes required, we will return to make changes •Staff continuing to discuss changes with community that can further clarify, streamline, and encourage infill housing and will process future zoning code amendments as appropriate •Staff will create guidelines document with clear information about how to apply ADU, JADU and Subdivision regulations Recommendation As recommended by the Planning Commission, introduce an Ordinance entitled, “Approving an Update to the City’s Subdivision Regulations (Title 16) and Zoning Regulations (Title 17) to Implement State Legislative Updates on Accessory and Junior Accessory Dwelling Units and Urban Lot Splits; and an Update to the City’s Zoning Regulations (Title 17) to Provide Clarifications to Regulations for Affordable Housing Projects with an Exemption from Environmental Review (CEQA)” Accessory & Junior Accessory Dwelling Units New State Legislation •Senate Bill No. 477 – reorganized ADU/JADU law •Senate Bill No. 1211 – introduced new provisions pertaining to ADUs Letter from California’s Department of Housing and Community Development (HCD) •Outlined 13 inconsistencies between state ADU law and the City’s Zoning Regulations identified by HCD Miscellaneous Changes Car Share Vehicles Continued Staff proposes the following definition for car share vehicle: •“A motor vehicle that is operated as part of a regional fleet by a public agency or private car sharing company or organizations 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 care 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.”