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HomeMy WebLinkAbout10/17/1989, 1 - REZONING R 1458, COMMERCIAL RESIDENTIAL USE REGULATIONS iII�H��^�IIINIIIII�III IIIT1/ 1" MEETING DATE: city o San Luis osispo ITEM . COUNCIL AGENDA REPORT i FROM: Randy Rossif,Interim Community Development Director; By: David Moran, Associate Planner `.`/ vJ, SUBJECT: Rezoning R1458, Commercial Residential Use Regulations CAO RECOMMENDATION The council should adopt draft ordinance No. 1 to: 1. Concur with the negative declaration on environmental impact, and 2. Introduce an ordinance adding section 17.93 and amending section 17.22 of the Zoning Code. BACKGROUND/EVALUATION At the meeting of October 3, 1989, the council approved in concept the draft Commercial Residential Use regulations with certain modifications. The attached draft ordinance reflects the council's direction in that: -- It applies only to rental households consisting of six or more adults. -- The garage area is now excluded from the gross floor area calculation to determine compliance with the 300 square feet per adult requirement. -- The maximum coverage requirement for parking has been eliminated. -- A business license would be required only for rental households of six or more adults (a commercial residential use). The council also expressed interest in the implications for staffing and enforcement of an effective date in December versus some date in the future. If the council approves the ordinance (first reading) at your October 17th meeting, the ordinance would usually become law at the end of December, with the following implications: -- The sooner the ordinance becomes effective, the sooner we can begin using it as a tool to maintain neighborhood compatibility. -- This effective date would coincide with the hiring of the new enforcement person. -- The end of December is also the end of the fall quarter at Cal Poly, with people relocating because of graduation, etc. Delaying the effective date until next July, for example, would have the following implications: -- It would give the community development department time to set up the administration of the new ordinance. This would include education and information sharing with the public, as well as necessary revisions to application forms, etc. ����u���►�IIIII[I��I� ►����II city of San LUIS OBIspo 11Mi COUNCIL AGENDA REPORT R1458 Page 2 -- The new enforcement person will have other responsibilities than this ordinance. The delay would give him/her time to become familiar with the city, our existing ordinances and policies and to help formulate the administration strategy for the new ordinance as well as work on other enforcement issues. -- Delaying the effective date of the ordinance would help lessen the displacement of renters by giving both renters and property owners time to understand the regulations and to prepare to comply and find housing that it is in compliance. RECOMMENDATION The council should adopt draft ordinance No. 1 to: 1. Concur with the negative declaration on environmental impact, and 2. Introduce an ordinance adding section 17.93 and amending section 17.22 of the Zoning Code. attachments: Draft ordinance No. 1 Initial study I I ORDINANCE NO. (1989 Series) COMMERCIAL RESIDENTIAL USE REGULATIONS WHEREAS, the Planning Commission and the City Council have held public hearings to consider amending the zoning regulations in accordance with Section 65800 et. seq. of the Government Code, and Chapter 17.62 of the Municipal Code; and WHEREAS, an increase in the intensity of occupancy, and conversion of garages and other accessory structures into living space in low density and medium density residential zones has caused, and is likely to cause, problems relating to overcrowding, excess traffic, automobile parking, and nuisances associated with such increased use; and WHEREAS, the burdens associated with such intensive uses causes unreasonable conflicts with neighbors' uses and expectations, and other burdens and risks to public health, safety and welfare; and WHEREAS, the City Council finds that the proposed changes to the zoning ordinance are consistent with the general plan and are necessary to protect the health, safety and welfare of its citizens; and WHEREAS, the negative declaration on environmental impact is affirmed; and NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. That Section 17.93 is hereby added to the zoning ordinance as follows: COMMERCIAL RESIDENTIAL USE REGULATIONS Sections: 17.93.010 Purpose 17.93.020 Definition 17.93.030 General Requirements 17.93.040 Performance Standards 17.93.050 Administration 17.93.060 Periodic Review, Enforcement and Violations ► -3 Ordinance No. (1989 Series) R 1458 Page 2 17.93.010 Purpose A. This chapter is intended to promote the quality of life in low density and medium density residential neighborhoods by ensuring that rental housing provides adequate support facilities. 17.93.020 Definitions A."Commercial residential use" means the business of renting for any period of time any dwelling, or part thereof, other than a residential care facility as defined in section 17.04.340 of this code, in the R-1 or R-2 zones when the occupancy of the dwelling consists of six or more adults. B. "Adult" means a person 18 years of age and older. C. "Tandem parking" means the arrangement of parking where no more than two cars are arranged in tandem, one in front of the other. 17.93.030 General requirements A. Applicability. A commercial residential use shall be allowed in the R-1 and R-2 zones _ subject to the performance standards set forth in section 17.93.040, below. B. Relation to zone standards. Where this chapter does not contain a particular type of standard or procedure, conventional zoning standards shall apply. C. Nothing in this section prohibits applicants from requesting exceptions or variances from the strict interpretation of zoning regulations to the extent allowed by said regulations for any use. 17.93.040 Performance standards A. Upon approval of an administrative use permit, as defined by Chapter 17.58, a commercial residential use may be established with occupancy of six or more adults. The purpose of the use permit is to ensure compliance with the performance standards described below, and to ensure the compatibility of the commercial residential use at particular locations. 1. A business license is obtained pursuant to Chapter 5.040 of the Municipal Code. 2. The dwelling must contain a minimum 300 square feet of gross floor area, less garage area, per adult. 3. The parking requirement shall be the greater of: 1) The number of spaces required for dwellings as described in Section 17.16.060. OR one off-street parking space per adult occupant, less one. 4. The parking of one vehicle within a required street yard or setback is allowed. Parking in other yards is prohibited. Ordinance No. (1989 Series) R 1458 Page 3 5. Each required parking space shall be of an all-weather surface. 6. Upon approval of the Community Development Director, parking may be provided in tandem. 7. There shall be a minimum of one bathroom provided for every three adult occupants. 8. The dwelling must meet all current building, health, safety and fire codes and built with all required permits. 17.93.050 Administration A. Business license required. A business license is required for all commercial residential uses with occupancy of six or more adults. B. Permit requirement. For commercial residential uses with six or more adult occupants, the applicant shall apply for and obtain an administrative use permit as defined by zoning regulations. The applicant shall submit and certify the following information as part of the application for an administrative use permit: 1. Address of dwelling. 2. A site plan which shows: a. the entire boundary of the site as well as adjacent structures within 20 feet. b. the number and location of off-street parking spaces. C. the gross floor area of the dwelling in square feet. d. the floor plan for the dwelling with the rooms clearly labeled. 3. The number of proposed adult occupants. 4. Owner's signature. 5. Any other information deemed necessary by the Community Development Director. 17.93.060 Periodic review and enforcement A. Periodic Review. Commercial residential uses shall be reviewed annually to insure compliance with the provisions of this section. The use permit shall be reviewed annually for compliance with this chapter. It shall be the responsibility of the property owner to initiate the review and pay applicable fees. B. Violations. Violation of any of the provisions of this chapter shall be the basis for enforcement action by the city which may include revocation of a previously approved use permit. Ordinance No. (1989 Series) R1458 Page 4 SECTION 2. Section 17.04.075 is added as follows: 17.04.075 Commercial Residential Use "Commercial residential use" means the business of renting for any period of time any dwelling, or part thereof, other than a residential care facility as defined in section 17.04.340 of this code, in the R-1 or R-2 zones when the occupancy of the dwelling consists of six or more adults. SECTION 3. Section 17.16.060 is amended as follows: Commercial residential use The parking requirement shall be the greater of: 1. The number of spaces required for dwellings. OR, 2. One off-street parking space per adult occupant, less one. SECTION 4. Section 17.22.010 is amended as follows: Insert between Circus, carnival, parades, and Computer services: R-L R-2 R-3 R-1 I C/OS I U" i 1'F Commercial residential use D D SECTION 6. A summary of this ordinance, approved by the City Attorney, together with the ayes and noes, shall be published at least five (5) days prior to its final passage in the Telegram-Tribune, a newspaper published and circulated in said city, and the same Ordinance No. (1989 Series) R 1458 Page 5 shall go into effect at the expiration of thirty (30) days after its said final passage. A copy of the full text of this ordinance shall be on file in the office of the City Clerk on and after the date following introduction and passage to print and shall be available to any interested member of the public. INTRODUCED by the Council of the City of San Luis Obispo, at its meeting held on the day of 1989, on motion of seconded by and on the following roll call vote: AYES: NOES: ABSENT: Mayor ATTEST: City Clerk APPROVED: (!City dministrative Officer City Attorn Community Development Director ' n city o� san lues osispo ALS INITIAL STUDY OF ENVIRONMENTAL IMPACT SITE LOCATION APPLICATION NO. _PROJECT DESCRIPTION APPLICANT STAFF RECOMMENDATION: y_NEGATIVE DECLARATION _ MITIGATION INCLUDED EXPANDED INITIAL STUDY REOUIREO _ENVIRONMENTAL IMPACT REPORT REOUIRED PREPARED BY -avid 'bran, Associare = fanner DATE COMMUNITY DEVELOPMENT DIRECTOR'S ACTIONS DATE7% SUMMARY OF INITIAL STUDY FINDINGS I. DESCRIPTION OF PROJECT AND ENVIRONMENTAL SETTING it.POTENTIAL IMPACT REVIEW POSSIBLE ADVERSE EFFECTS A. COMMUNITY PLANS AND GOALS . . . .aV0e. . . . . . . . . . . . . . . . . . . .. . Yes* B. POPULATION DISTRIBUTION AND GROWTH . . . .. . . . . . . . . . . . . . . . .... . . . . . . . :Ore. ` C. LAND USE ............... .... D. TRANSPORTATION AND CIRCULATION . . . . . . . . . :Cne. °Ione. E. PUBLIC SERVICES . .. . Nome. F. UTILITIES. . ... . . . . . . . . `!one. G. NOISE LEVELS . . . . . . . H. GEOLOGICd SEISMIC HAZARDS&TOPOGRAPHIC MODIFICATIONS :cne. I. AIR QUALITY AND WIND CONDITIONS . . . . . . :one. J. SURFACE WATER FLOW AND QUALITY . . . . . . . ..one. K. PLANT LIFE . . . . ',!ore. L. ANIMAL LIFE... . ... .. . . . . .. . . . . . .. .. :Ore. M. ARCHAEOLOGICAUHISTORICAL . . . . . . . . IOre. N. AESTHETIC . .... . . .. . . . . .. . . . . . . . . . . .. . . . . "One. 0. ENERGY1RESOURCEUSE Ione. P OTHER -ousinr. . . . '_` Ill. STAFF RECOMMENDATION 'SEE ATTACHED REPORT :a e] Initial Study ER 52-89 Page 2 1. DESCRIPTION OF PROJECT AND ENVIRONMENT J /� The City of San Luis Obispo wants to promote the qual neighborhoods by ensuring that rental housing provides A facilities such as on-site parking. To further this goal, t zoning regulations and other sections of the municipal standards for rental housing in the R-I and R-2 zones. `^n following requirements and standards: M Y Y 1 1. A business license would be required in order to cn O V in the R-I and R-2 zones. f4 I. To qualify for a business license for a residential rental with fewer than 5 adult occupants, the dwelling would have to satisfy the following performance standards: - The dwelling must contain minimum floor area consistent with the following schedule: Minimum Gross Floor Area Dwelline Size Per Adult Occuoant < 3000 sq.ft. 300 sq.ft. > 3000 sq.ft. 200 sq.ft. - A minimum of two offstreet parking spaces must be provided per dwelling OR one off-street parking space per adult occupant, less one, whichever is greater. 3. When a residential rental is to be occupied by six or more adult occupants, an administrative use permit is required. The use permit is to ensure the above performance standards arc satisfied as well as to ensure compatibility of residential rentals at particular locations. 1. POTENTIAL IMPACT OVERVIEW A. Community Plans and Goals Housing Element The housing element contains programs and policies which are intended to promote the diversity and affordability of housing opportunities, and points out the need for additional affordable housing. In that the proposed ordinance would establish new, more restrictive performance standards for rental housing in the R-1 and R-2 zones which may not be attainable by all of the available rental housing stock, the result could be the displacement of renters as rental opportunities decrease. For this reason, the proposed ordinance may not be consistent with housing clement policies which favor actions to help alleviate the lack of affordable rental housing because the supply of rental opportunities in the R-I and R-2 Zones may be reduced. l - % ER 52-89 Page 3 Conversely, the application of the ordinance could moderate adult household size in the R-1 and R-2 zones and reduce the upward pressure on rents caused by ovcroccupancv_ of dwellings. In this broad context, rental units may be more affordable to family households in that the ability of property owners to achieve, high income levels from. large adult households would be reduced. Evaluation_ May Be Significant C. Land Use The proposed ordinance could have beneficial impacts on the quality of rental housing environments by ensuring minimum floor space and parking for tenants, thus alleviating existing and potential neighborhood compatibility impacts. Evaluation_ Not Significant Housing As outlined above, the regulations could result in less rental housing available in the R-1 and R-2 zones by reducing the rental capacity of these areas. The ordinance would apply to all types of households in these zones. The standards are designed to relate adult occupancy levels to the need for on-site parking !and living area within dwellings. Given the population composition of San Luis Obispo, however, the regulations would most likely impact college student rental households in the R=1 and R-2 zones. Student household data is instructive because student households are often composed of adult renters and the proposed ordinance could reduce rental housing opportunities as a function of the number of adults per dwelling. However, other non-student households would also be regulated by the proposed ordinance and subject to the same performance standards. Based on enrollment data for spring, 1989, for Cal Poly, about 8,862 full and part time students listed San Luis Obispo as their principal address. (The actual number of students living in town will be slightly larger because some students use PO boxes). Of the 8,862 Cal Poly students who lived in the City during the spring quarter, 2279 lived in the R-1 zone in about 882 households for an average household size of 2.7 students. For a dwelling to accommodate 2.7 adult tenants under the new regulations, it would have to have a minimum 810 square feet of gross floor area and provide 2 offstrcet parking spaces. Although an actual housing inventory by dwelling size and number of parking spaces is unavailable, very few single family residences in the city are smaller than 810 square feet. In the Old Town, which is predominantly R-2 zoning and where the dwellings arc generally smaller, there could be more non-conforming dwellings. Nevertheless, it appears that most single family dwellings could accommodate the average student household size of 2.7. To estimate the impacts of the more restrictive regulations, an estimate must be made of the number of rental dwellings which could not accommodate the average student household size, and determine the amount of "overflow" renter's from each dwelling. However. not all student households consist of 2.1 students. Foe reasons of economy, among others, many student households consist of two students per bedroom. � - la ER 5=-89 Page 4 If we assume a worse case in which all students in the R-I zone to excess of 2.7 per dwelling arc displaced immediately after adoption of the new regulations, the number could be significant. For example, the Cal Poly data for spring, 1989, suggests that, of the 882 Cal Poly student households in the R-I zone, 197 contained 4 or more I students. The "excess renters" (household size - 2.7) would amount to about 380 students, which is about 140 households at 2.7 students per household. The relative impact of the displaced student households on the availability of rental housing can be obtained by estimating the number of dwellings that would have to be built in order to satisfy the city's growth management and housing objectives once the Cal Poly student households in the R-1 zone are displaced .by the new regulations. City growth regulations adopted in 1982 established a schedule for maximum residential construction rates through the year 1999. Under those regulations during i the past 5 years, the city has: - added 2,215 dwellings, or 443 per year (new construction minus demolitions) - added 729 people per year, for a growth rate of about 2.4% per year, and a household size of about 2.4 persons/dwelling. -- maintained an average vacancy rate of about 5%, acknowledged by the city's Housing Element as a desirable level to maintain a variety of choice and affordability (Source: San Luis Obispo Housing Element, 1987, p. 34, B-I1.) The target number of dwellings to meet the city's housing needs during this same period, as estimated by the state Department of Housing and Community Development was 1630 dwellings, or about 326 dwellings per year. (Source: California Housing Needs Plan, California Department of Housing and Community Development, Sacrament, California, 1985.) Thus, the city has produced more housing during this period than the state estimated for our needs, while maintaining a desirable vacancy rate of about 5%. In order to maintain the desirable vacancy rate of about 5% in addition to absorbing the displaced Cal Poly student households from the R-1 zone, the city will have to continue to produce an average of 300 dwellings per year, which would accommodate a growth rate of about 1.76%. NOTE: This dwelling production rate would be able to accommodate the displaced renters who are Cal Poly students living in the R-1 zone, only. When all other adult households arc factored in from the R-1 and R-2 zones, the number would be significantly higher. Furthermore, the university plans to add another 400 students in the 1990/91 school year and another 400 in 1991/92 for a total student enrollment (full and part time) of about 17,000. If the proportion of I Cal Poly students living in the city remains constant, an additional 800 students (296 households at 2.7 students/household) will be seeking housing during the next two years. I Evaluation: Significant The displaced renters resulting from the regulations will make it more difficult for families to find affordable rental housing. This results from the disparity in the income earning power between a family with one or two incomes versus an adult household with three or more income sources. Competition will be grcarest for the i I ER 52-89 Page 5 housing preferred by both types of households, which has been ;predominantly detached, single family dwellings. ,As long as the demand for single family rentals exceeds the supply, we would expect rents to increase, further aggravating the problem of affordability. Evaluation: May Be Significant D. Impact Mitirtation Through the displacement of adult tenants, the ordinance could reduce rental housing opportunities in the R-1 and R-2 zone and inercasc.demand for rental housing. The city's overall strategy for addressing the community's rental housing needs is to add to the supply of housing by promoting additional multi-family dwelling construction and to better manage demand by regulating the creation of new jobs in the city. The actual impact of the new regulations will also be a function of the enforcement posture assumed by the city. If all rental properties in the R-1 and R-2 zones were to comply with the new regulations immediately after adoption,:which is assumed in the worse-case scenario outlined above, it would likely mean a sudden flood of displaced renters. However, if the pace of conformity is equal to or less than the additional housing constructed each year, the impact would be lessened. The following mitigation measures-would address either the housing supply issue or level of impacts caused by displacement. 1. Mitieation Measures that May Be Enacted by the City (a) Promote the construction of additional housing within the city. This would include continued implementation of housing element and land use clement policies and programs. (Note_ the discussion draft of new city Land Use Element proposes that the land use designation of some commercial/industrial areas in the city be changed to residential to enable additional housing inside the urban reserve.) (b) Apply the regulations to the R-1 zone only. This would reduce the number of displaced renters. (c) Apply the regulations primarily on a complaint basis. I This would significantly reduce the number of displaced renters, and would likely distribute the displacement over a longer period of time. (d) Enforce the regulations only when the city's residential vacancy rate was 3% or greater. In this way, choice and opportunity for housing for displaced renters could be better maintained, as well as minimizing the impact of renter displacement on family households. (Note: the State Department of Finance estimates residential vacancy rates each year, The last time the city's vacancy rate was at 3% or below was in the mid 1970's when Cal Poly enrollment outpaced city housing production.) / - JO ER 52-89 Page 6 (c) Allow a grace period for compliance when displacement occurs. In this way the transition from one housing situation to another would be phased and the impact on the displaced household would be lessened. The grace period (eg. 60-90 days) could be part of the city's action on use permit applications or enforcement proceedings. (f) Provide relocation assistance. The city could contract with a local real estate firm specializing in rental housing and/or work directly with the Cal Poly housing office to help displaced renters find replacement housing. 2. Mitittation Measures that Would Reouirc the Action of Other ARenclej (a) Have the state university system provide more housing on campus. Cal Poly already provides more on-campus housing than any other state university. Nevertheless, this option would help reduce the demand for housing by adult households. (b) Establish enrollment ceilings for Cal Poly and Cuesta college based on the city's capacity to absorb the additional residents while maintaining growth management and housing objective3. If enrollment increases at the two local colleges can be tied to the city's capacity to provide new housing, the overall impacts from the adult households generated by the two schools would be diminished. III. STAFF RECOMMENDATION Negative declaration with the following mitigation (reference paragraph D above for description): L(a) Promote the construction of additional housing within the city. L(c) Apply the regulations primarily on a complaint basis. 1.(d) Enforce the regulations only when the city's residential vacancy rate was 3% or greater as determined by the California Department of Finance. 1.(e) Allow a grace period for compliance when displacement occurs.