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HomeMy WebLinkAboutItem 8a. Introduce an Ordinance Amending Title 5, (Permits, Licenses, and Regulations), Title 16 (Subdivision Regulations), and Title 17 (Zoning Regulations) of the Municipal Code Item 7a Department: Community Development Cost Center: 4006 For Agenda of: 5/5/2025 Placement: Public Hearing Estimated Time: 60 minutes FROM: Timmi Tway, Community Development Director Prepared By: Ethan Estrada, Assistant Planner; David Amini, Senior Planner SUBJECT: INTRODUCE AN ORDINANCE AMENDING TITLE 5 (PERMITS, LICENSES, AND REGULATIONS), TITLE 16 (SUBDIVISION REGULATIONS), AND TITLE 17 (ZONING REGULATIONS) OF THE MUNCIPAL CODE. RECOMMENDATION As recommended by the Planning Commission, introduce a Draft Ordinance entitl ed, “An Ordinance of the City Council of the City of San Luis Obispo, California, Amending Title 16 (Subdivision Regulations), Title 17 (Zoning Regulations), and Title 5 (Licenses, Permits, and Regulations) of the Municipal Code regarding Accessory Dwellin g Units, Junior Accessory Dwelling Units, Urban Lot Splits, Mobile Homes, and other Clarifications and Changes to Regulations Associated with Housing, with an Exemption from Environmental Review (CEQA).” REPORT-IN-BRIEF In 2025, several bills implementing changes to state law regarding accessory dwelling units (ADUs), junior accessory dwelling units (JADUs), and urban lot splits went into effect, with the continued intention of streamlining and incentivizing housing production statewide. Some of these changes, in turn, require modifications to the City’s Municipal Code to maintain compliance with state law. The City of San Luis Obispo is designated as a Prohousing city by the California Department of Housing and Community Development (HCD). This designation is assigned to cities that implement local policies beyond what is provided by the state that seek to remove barriers to new housing development. This designation allows the City to receive priority processing and additional points when applying for state funding programs. Therefore, staff continue to reevaluate the City’s Municipal Code and its review processes for improvements to continue facilitating housing development beyond the changes required by new legislation. This process is further aided by public feedback received throughout the past year, which contributed to some of the proposed amendments. Page 177 of 412 Item 7a Lastly, City staff have continued to evaluate the efficacy of existing standards and procedures instituted through the Municipal Cod e. Based on staff and community feedback, this update contains several miscellaneous amendments to the Municipal Code to clarify City standards and procedures. The changes to the code include the following:  Clean-up of ADU code items relating to heights, setbacks, procedural requirements, lot coverage, and definitions for state law compliance.  Update to Mobile Home Park Rent Stabilization Ordinance to remove long-term lease exemption for state law compliance.  Clarifying fractional density requirements for density bonus project calculations.  Update of minor urban lot split regulations to comply with state law regarding properties in historic districts and/or containing historic structures.  Minor revisions to language in the Homestay regulations, clarifying t hat failure to submit required information annually constitutes grounds for revocation of permit.  Revisions to Accessory Structure regulations to clarify definitions and achieve compliance with ADU requirements.  Addition of language to the Driveway Standards for driveway approach sight triangles for consistency with the Engineering Standards. POLICY CONTEXT The California State Legislature has passed several bills requiring updates to the City’s Municipal Code to maintain consistency with state housing law. The proposed amendments are necessary to comply with state law, as well as provide for more efficient processing or clarification, and are supported by City policy as described below. On November 17, 2020, the City Council adopted the 6th Cycle Housing Element (HE), which includes housing policies and programs for 2020 -2028. Accessory Dwelling Units (ADU) are an important part of the City’s housing production, addressing state mandated Regional Housing Needs Allocation (RHNA) and helping the City meet housing policy goals. The current 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, 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. Page 178 of 412 Item 7a Community Development Department (CDD) staff also periodically review the City’s Zoning Regulations to identify possible barriers to housing development. Several of the proposed amendments aim to resolve identified barriers to development, as well as provide for additional clarifications on regulations. This is especially important as housing production is an integral part of the Housing and Neighborhood Liva bility Major City Goals to “promote the expansion and diversification of housing opportunities for all” and “Facilitate sustainable growth that aligns with climate, economic, and housing goals.” DISCUSSION New State Legislation Provided below is a brief review of the various laws that went into effect in 2025 or at the beginning of 2026 that this update integrates into the City’s Municipal Code. The provisions introduced or altered by this legislation require amendments to Chapters 16.15 and 5.44 of the Municipal Code. These specific amendments are discussed later in the report and can be viewed in Attachment A, respectively. Senate Bill 1211 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 al so 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 habi tation, 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 multifamily dwelling, provided that the number of ADUs does not exceed the number of existing units on the lot. Assembly Bill 1061 Assembly Bill 1061 introduced several changes to California Government Code Section 66852.21 that contain provisions pertaining to minor urban lot splits (a.k.a., SB -9 Lot Splits). These changes allow for housing development pursuant to Section 66852.21 and minor urban lot splits on properties within a historic district, which was previously prohibited. State law still prohibits this type of development and subdivision on properties that are listed as historic by the state and/or the City. Assembly Bill 2782 Prior to January 1, 2025, state law (Civil Code Section 798.17) required that long-term leases (those longer than twelve months) be excluded from local mobile home park rent stabilization ordinances. Assembly Bill 2782, which was enacted in 2020, eliminated this requirement effective January 1, 2025, meaning that these local ordinances may now Page 179 of 412 Item 7a include long-term leases in their rent stabilization protections. This allows most long-term residents of mobile home parks to be protected from unauthorized rent increases in violation of the City’s rent stabilization ordinance. Summary of Proposed Changes The table below contains a brief summary of the proposed changes to the Municipal Code. Each change is broken down in detail following the table. Table 1: Municipal Code Changes Municipal Code Section Change Description State Law Requirement? Zoning Regulations (Title 17) Miscellaneous ADU changes to clarify setbacks and height, additional height allowances, procedural requirements, exceptions to discretionary review, clarifying ADU definitions, and lot coverage requirements. Yes (SB 1211) Mobile Home Regulations (Ch 5.44) Remove long-term lease exemption from mobile home rent stabilization ordinance. Remove duplicitous exemption section 5.44.040, which should have been deleted per a 1992 amendment. Yes (AB 2782) Zoning Regulations (Title 17) Revise fractional density calculation to prioritize the production of the maximum number of affordable housing units for density bonus projects. No Subdivision Regulations (Title 16) Update Minor Urban Lot Split regulations to allow lot splits on properties located within a historic district that are not designated historic resources by the state or City. Yes (AB 1061) Zoning Regulations (Title 17) Cleanup to Accessory Structures chapter to accommodate development of ADUs. Yes (SB 1211) Zoning Regulations (Title 17) Update intersection visibility requirements to include driveway approaches per new Engineering Standards. No Zoning Regulations (Title 17) Correct Table 2-1 to show that General Retail is allowed by right in the C-N zone, per a previous approved amendment to zoning code. No Zoning Regulations (Title 17) Clarify that decks with a height of 30 inches or less above grade are not subject to setback requirements. No Zoning Regulations (Title 17) Minor revisions to language in the Homestay regulations, clarifying that failure to submit required information annually constitutes grounds for revocation of permit. No Page 180 of 412 Item 7a Miscellaneous ADU-Related Changes Staff has proposed several miscellaneous amendments related to ADUs. These changes were identified as possible barriers to housing development, possible inconsistencies with state law, or items that would benefit from further clarification. These proposed amendments are as follows:  Setbacks & Height: Both state law and the Zoning Regulations currently require that new ADUs that include the creation of new square footage (i.e., new floor space) with a side and rear setback of 4 feet are limited to a maximum height of 16 feet. The Zoning Regulations provide an additional pathway that allows higher heights by allowing ADUs to be built to a maximum height of 25 feet (in excess of state limits) so long as they comply with the setback standards required in the underlying zone, beginning at a minimum of 5 feet for all residential zones. However, state law also permits a height maximum of 18 feet with a side and rear setback of 4 feet for a detached ADU on a property with a multistory multifamily dwelling, as well as a height maximum of 25 feet with a side and rear setback of 5 feet for attached ADUs. Therefore, the current Zoning Regulations described above are inconsistent with these additional height and setback allowances provided by state law. Section 17.86.020 is proposed to be amended to more clearly call out the height and setback allowances permitted unde r state law. (Attachment A – 17.86.020(B)(3)(c).)  Additional Height Allowance: As stated above, the Zoning Regulations currently allow ADUs a maximum height limit of 25 feet in any zone, if the ADU is compliant with the underlying zone’s setback requireme nts. The City has received feedback from the public to consider deferring ADU height limits to the underlying zone, as is done for all other standards not accounted for in Section 17.86.020. Staff considered this input and have updated this provision of Section 17.86.020 to defer to the underlying zone standards for ADU height limits. Deferring to the underlying zone standards is more permissive than state law and could potentially increase ADU development in certain zoning districts, such as the R-2 and R-3 zones, by allowing ADU designs to be more consistent with the typical development pattern in said zones, which allow heights of up to 35 feet. This change would not impact ADUs in the R-1 zone, as the current ADU maximum height limit of 25 feet matches the height limit for structures in the R-1 zone. ADUs that are built with a height in excess of state law allowances described above will be required to comply with the setback standards of the underlying zone. (Attachment A – 17.86.020(B)(3)(d).)  Procedural Requirements: In a previous update to the Zoning Regulations pertaining to ADUs (adopted on April 1, 2025), staff introduced a provision under Page 181 of 412 Item 7a the “Procedural Requirements” subsection of Section 17.86.020 that attempted to address issues related to attached ADUs and a “two-step” process that was occurring with the development of ADUs pursuant to California Government Code Section 66323. The “two-step” process was utilized by developers to build an accessory structure (step 1) and then take advantage of the state law requirement allowing construction of an ADU by converting the accessory structure (step 2). This was necessary for the development of attached ADUs, particularly on properties that had an existing ADU, prior to 2025 when ADU development was restricted to 1 per lot. Upon feedback from developers and the community of the difficulty in utilizing the “two-step” process, staff updated the “Procedural Requirements” to allow for a one- step process for attached ADUs, eliminating the need to complete the construction of the accessory structure before conversion to an ADU. Since its implementation, this portion of the Procedural Requirements subsection of the Zoning Regulations has not been widely utilized and it may potentially conflict with state law which expressly allows for the construction of attached ADUs in addition to detached ADUs on a parcel with a single-family residence. Staff’s change to remove the 1 ADU per lot restriction in 2025 addressed this problem. Therefore, this update proposes an amendment to Section 17.86.020 to remove this provision entirely. (Attachment A – 17.86.020(B)(4)(c).)  Exceptions from Discretionary Review: The Zoning Regulations provide instances in which additional discretionary review is required for ADU development. These include properties that are subject to the Hillside Development Standards (Section 17.70.090(E)) and additions to nonconforming structures (Section 17.92.020(F)). However, state law prohibits the use of a discretionary process to review ADUs that are compliant with all applicable ADU state standards. This update includes changes to Sections 17.70.090 and 17.92.020 that would provide clear exceptions to the discretionary review process requirement under the Hillside Development Standards and additions to nonconforming structures for ADUs that are compliant with applicable ADU standards. (Attachment A – 17.70.090(E) & 17.92.020(G))  Expanding the ADU Definition: The Zoning Regulations provide a general definition for ADUs. The City has received feedback from the public that additional clarification is needed for an attached versus detached ADU. This update adds additional language to the ADU definition provided under Section 17.156.004 that further describes what constitutes an attached versus a detached ADU. (Attachment A – 17.156.004)  Lot Coverage: The Zoning Regulations provide ADUs an exception to lot coverage requirements as required by state law. The first 800 square feet of lot coverage on a property for an ADU is exempt and anything in excess of that first 800 square feet is included in a property’s lot coverage calculation. This update Page 182 of 412 Item 7a would modify the current language under Section 17.70.120 to more clearly articulate this lot coverage exception for ADUs. (Attachment A – 17.70.120(B)) Mobile Home Update With Civil Code Section 798.17 repealed by AB 2782, the City is no longer required to exclude long-term space leases from its mobile home park rent stabilization ordinance (MHPRSO) found in Chapter 5.44 of the Municipal Code. Since the MHPRSO expressly includes the long-term lease exemption in Section 5.44.030, rather than simply referring to state law exemptions,1 removal of this exemption requires an amendment to the ordinance (by deleting SLOMC § 5.44.030(E)). The long-term lease exemption has been a significant loophole utilized by mobile home park owners across the state, and Council directed staff at the 2025 Study Session on Renter Protections to bring this amendment forward so that long-term mobile home residents are protected by the rent stabilization ordinance. Staff also recommends deletion of Section 5.44.040 as a clean-up of the MHPRSO to reflect a 1992 amendment modifying the Ordinance’s exemptions. In 1988, the City adopted a voter-approved version of the MHPRSO, in which Section 5.44.030(F) was an exemption for “spaces in a mobile home park in which at least 66.67% of said spaces are governed by a lease with an initial term of more than one year.” (see Ord. 1117 (1988 Series).) In 1989, the City adopted Ordinance 1146, establishing Section 5.44.040, the procedures for “claiming an exemption under Section 5.44.030(F),” which, at the time, was the 2/3 long-term lease exemption established by Ordinance 1117. Section 5.44.040 has not been modified since 1989. In 1992, the City adopted Ordinance 1228, which deleted Subsections F and G and created a new subsection F (which is the same as its current iteration, related to factory-built housing.), however, Section 5.44.040 was not concurrently deleted and still sets forth procedures for a Subsection F exemption that no longer exists. Deletion of Section 5.44.040 and the reference to the 66.67% exemption in Section 5.44.060(A) will clarify the intent of the 1992 amendment. (Attachment D – 5.44.030 & 5.44.040) Fractional Density Currently, the City’s Affordable Housing Incentives in Section 17.140.040 do not specify whether to use fractional density units (fractional density units are established in the City’s municipal code and measure density based on the number of bedrooms in each unit) or dwelling units per acre (general number of units provided, regardless of the number of 1 Some jurisdictions have taken the position that AB 2782 automatically repealed the long -term lease exemption within their rent stabilization ordinances. For jurisdictions like the City of Petaluma, this makes sense because their ordinance simply included the exemptions in Civil Code Section 798.17 by reference instead of codifying a separate exemption for long-term leases. Rather than referring to state law, San Luis Obispo’s municipal code sets forth a standalone long-term lease exemption that requires removal by amendment to the MHPRSO. Page 183 of 412 Item 7a bedrooms in each unit) when calculating the amount of density bonus units awarded and/or the amount of affordable units to be provided by the developer. Under Section 17.70.040, the City calculates the maximum allowed density for a property based on fractional density units, not dwelling units per acre. Density for a studio/one - bedroom dwelling is 0.50 density units if less than 600 square feet in size or 0.66 density units if over 600 square feet but no more than 1,000 square feet in size, a two -bedroom dwelling is 1.00 unit, a three-bedroom dwelling is 1.50 units, and a four or more-bedroom dwelling is 2.00 units. For example, the following density bonus project uses fractional density units:  The developer for a residential project that would provide five density units worth of dwellings applies for a 50 percent density bonus. This bonus would allow for a total of 8 density units (after rounding), where two density units of affordable units must be provided (after rounding). Under fractional density, the market -rate units could be provided as eight two-bedroom units, with two of them provided as affordable units. However, there are two issues that occur under the current provisions provided in Section 17.140.040. Because this section does not clarify when and how fractional density can be used, an applicant may maximize the number of market rate units built under fractional density (e.g., six two-bedroom units) while minimizing the number of affordable units (e.g., two studio units, where under fractional density, two two-bedroom units would be required). Another issue is the way fractional density units can be applied to decrease the total number of affordable units provided. Referring to the density bonus project example above, the applicant is required to provide two density units of affordable housing to qualify for a 50 percent density bonus. They provide six market -rate two-bedroom units, but instead of two affordable two-bedroom units, they provide one four-bedroom dwelling unit. Although under Section 17.70.140 a four-bedroom unit is worth two density units, Density Bonus Law, Government Code Section 65915(r), states that the intent of this law is to be interpreted as favoring the production of the maximum number of total housing units, including the affordable units. Therefore, to comply with Density Bonus Law, the applicant should be required to provide two, two-bedroom dwellings. This update would add language to Section 17.140.040 requiring fractional density units to be applied consistently for both the market rate and affordable units within a density bonus project, and that fractional density shall only be utilized in favor of producing the maximum number of affordable housing units provided. (Attachment A - 17.140.040) Minor Urban Lot Splits and Housing Development In Historic Districts Currently, the Subdivision Regulations prohibit minor urban lot splits, and in turn, housing development pursuant to the same state laws that govern urban lot splits, in historic districts and on properties listed as a historic resource by the state and/or City. This restriction was consistent with state law at the time it was instituted. Page 184 of 412 Item 7a With the passage of Assembly Bill 1061, this restriction was modified, specifically allowing minor urban lot splits and associated housing development on properties located within a historic district. The restriction still remains for properties that are designated as historic resources by the state and/or City. This update would adjust this provision in Section 16.15.020 to maintain compliance with state law. (Attachment A – 16.15.020(C)) Homestay Regulations Section 17.86.160 provides requirements that operating Homestays must comply with to apply for a Homestay permit. The requirements include the following:  Operators of homestays in all zones are required to obtain a homestay permit and a business license.  The operator of the homestay shall pay transient occupancy tax and tourism business improvement district tax as required by the municipal code.  The operator of the homestay shall annually provide verification of primary residence through the homeowner’s property tax exemption or other appropriate documentation.  The operator of the homestay shall provide the name and contact information of a responsible party in the application if the owner-occupier anticipates he or she may not be on the premises at all times during the homestay rental. This update would add language to Section 17.86.160 clarifying that these requirements must be complied with on a continuous basis and that Home stays that do not comply with applicable requirements shall automatically expire, rather than the previous regulations which necessitated a revocation hearing. This change will allow staff to proactively monitor active homestays and ensure they are complying with requirements on a regular basis, leading to more effective compliance for homestays in the City. (Attachment A – 17.86.160(E)) Accessory Structures In review of Chapter 17.70 of the Municipal Code, staff identified outdated and restrictive provisions in Section 17.70.010 pertaining to accessory structures. This update includes changes to Section 17.70.010 to address these items and are as follows (Attachment A – 17.70.010):  Modifying the term “secondary dwelling unit” used in this section to “accessory dwelling unit.” The term “secondary dwelling unit” was used to refer to accessory habitable space, which is now known as an ADU.  This section currently limits the number of accessory structures to three per lot, only one of which may include a habitable accessory structure like an ADU. This is inconsistent with both Section 17.86.020 of the City’s Municipal Code and state Page 185 of 412 Item 7a law. This language would be removed and replaced with a provision specifically stating that the limit on accessory structures would not apply to ADUs and JADUs.  This section contains a provision requiring a property owner to record a covenant agreement disclosing the accessory structure’s approved floor plan and status and allowing for annual inspections by the City. The City has received feedback that this requirement is particularly restrictive for what are otherwise minor projects. The purpose of this requirement was to prevent the illegal conversion of accessory structures into habitable spaces. However, since this provision was added to the Zoning Regulations, ADUs and JADUs have become highly regulated and pathways for “illegal” ADUs to become permitted units have been instituted by state law. This update would remove this provision entirely. Driveway Visibility Clarification Section 17.70.210 provides provisions for intersection visibility requirements at roadway intersections not controlled by a stop sign or traffic signal that prohibit plants, structures, or other solid objects over three feet tall to be located within “sight triangles” further described in this section. These provisions are based on Engineering Standard 7950, which was updated in 2025, expanding this same requirement to driveway approaches. This update would add a provision and figure specifically for driveway approach visibility requirements to Section 17.70.210. This update will achieve consistency with current Engineering Standard 7950. (Attachment A – 17.70.210) Use Permit Clarification for General Retail Section 17.26.030(A) provides maximum gross floor area limits for retail uses in the C -N (Neighborhood Commercial) zone. It also provides that exceptions to these limits may be granted through the approval of a Minor Use Permit. However, Table 2-1 of Chapter 17.10 (Use Regulations) indicates a Minor Use Permit is required for approval of a general retail use in the C-N zone. General retail is allowed by right in the C-N zone, and staff have determined that the “MUP” note in Table 2-1 was mistakenly provided. Previous versions of this table included individual line items describing what was allowed by right or what required discretiona ry review based on the gross floor area limits. In 2018, Table 9 (now referred to as Table 2 - 1) was updated, which included the reduction of these items to one line referring to “General Retail” as a whole, with a note to Section 17.26.030(A) to defer to the exceptions allowed. However, this use was marked as requiring a Minor Use Permit in the C-N zone where it should have been marked as allowed by right. This update would remove the “MUP” designation from Table 2-1 for general retail uses in the C-N zone. (Attachment A – 17.10.020) Page 186 of 412 Item 7a Setback Clarification for Decks Section 17.70.170 contains provisions that permit decks with a height that exceeds 30 inches above grade to encroach into side and rear yard setbacks no more than four feet or one-half the required setback, whichever is less. At the same time, it also provides that certain structures, including decks with a height of 30 inches or less, may also be located within required setbacks. However, the Municipal Code does not clearly state this, and staff have received feedback from the public requesting this point be clarified. This update would include changes to Section 17.70.170 that clearly specify that decks with a height of 30 inches or less above grade are not subject to setback requirements. (Attachment A – 17.70.010(C)) Feedback Received Regarding Additional Zoning Code Updates During the year, staff has received questions and suggestions from the community and individual Councilmembers regarding additional desired changes to the Zoning Regulations, generally related to commercial uses. These Included allowing office use in manufacturing zones, whether there are any necessary child care business related changes to facilitate more childcare uses and allowing massage or physical therapy uses in the office zones. Staff analyzed these changes to potentially include in this zoning code update, however, they were not included at this time. Family day cares are already an allowed use in all zones except the Conservation/Open Space and Public Facilities zones, and it has not been staff ’s experience that there are zoning barriers prohibiting the establishment of daycare uses in the City. Physical therapy uses are allowed in the Office zone as they are typically operated by licensed medical professionals, meeting the classification of a Medical/Dental Office under the existing regulations. However, massage services fall under the Personal Services classification, which are not allowed in the Office zone. Allowing this classification would best be considered as part of a larger General Plan update that considers the potential ramifications, as personal services cover a wide range of uses such as barber shops, beauty salons, tailors, day spas, dry cleaners, tattoo shops, etc. Similarly, allowing certain office uses in the manufacturing zone would also be best to consider as part of a larger General Plan update to ensure that there is sufficient space for manufacturing uses in the City as outlined in the General Plan, and that there are not unintended consequences of making this change. These topics warrant more in-depth study and analysis than was possible for this item. Previous Council or Advisory Body Action On April 8, 2026, the Planning Commission, on a 6-0 vote (Tolle absent) adopted a Resolution (Attachment B) which recommended that City Council introduce and adopt an Ordinance amending Title 16 (Subdivision Regulations), Title 17 (Zoning Regulations), and Title 5 (Permits, Licenses, and Regulations) of the Municipal Code regarding accessory dwelling units, junior accessory dwelling units, urban lot splits, mobile homes, and other clarifications and changes to regulations associated with housing, with an Page 187 of 412 Item 7a exemption from environmental review (CEQA), as represented in the staff report and attachments. Public Engagement Public notice was provided for the April 8th Planning Commission meeting and no public comment was received on the item. Public notice of this hearing has been published in a widely circulated local newspaper, and hearing agendas for this meeting were 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, Building, and Engineering Division staff from the Community Development Department, as well as the City Attorney’s Office, have reviewed the proposed changes to Titles 16, 17, and 5 and provided feedback that has been incorpo rated into the proposed amendments. ENVIRONMENTAL REVIEW The proposed code amendments to Title 16, Title 17, and Title 5 of the Municipal Code have been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. 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. Individual discretionary developments will still be required to conduct environmental analyses as appropriate. The proposed code amendments pertaining to ADUs and JADUs are also exempt under Public Resourced Code Section 21080.17 that applies to local ordinances implementing state regulations related to accessory dwelling units. FISCAL IMPACT Budgeted: Yes Budget Year: 2026-27 Funding Identified: N/A Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $0 $0 $0 $0 State Total $0 $0 $0 $0 Page 188 of 412 Item 7a The Municipal Code changes implemented by this ordinance would not have a direct fiscal impact on the City. ALTERNATIVES 1. Continue consideration of the proposed amendments. An action continuing the project should include direction for staff on pertinent issues that should be further studied or analyzed for future Council consideration. 2. Do not approve the proposed 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 not address the potential barriers to housing production that have been identified within the City’s Municipal Code. 3. Modify the proposed amendments. Any modifications to the proposed amendments would need to be sent back to the Planning Commission for approval, then re-introduced at City Council, followed by a second reading before implementation. This would create significant delays in implementing the proposed updates to Titles 5, 16, and 17, several of which are necessary to maintain compliance with state law requirements. ATTACHMENTS A - Draft Ordinance adopting amendments to Titles 16, 17, and 5 B - Signed Planning Commission Resolution recommending that City Council adopt amendments to Titles 5, 16, and 17 Page 189 of 412 Page 190 of 412 O ______ ORDINANCE NO. _____ (2026 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING TITLE 16 (SUBDIVSION REGULATIONS), TITLE 17 (ZONING REGULATIONS), AND TITLE 5 (LICENSES, PERMITS, AND REGULATIONS) OF THE MUNICIPAL CODE REGARDING ACCESSORY DWELLING UNITS, JUNIOR ACCESSORY DWELLING UNITS, URBAN LOT SPLITS, MOBILE HOMES, AND OTHER CLARIFICATIONS AND CHANGES TO REGULATIONS ASSOCIATED WITH HOUSING, WITH AN EXEMPTION FROM ENVIRONMENTAL REVIEW (CEQA) (CODE-0149-2026) WHEREAS, on August 31, 2020, Governor Newsom approved AB 2782 implementing numerous changes to the Mobilehome Residency Law, primarily repealing an exemption from rent control measures for long-term mobile home leases; and WHEREAS, on October 10, 2025, Governor Newsom approved AB 1061 to allow minor urban lot splits on properties located in a historic district; and WHEREAS, the City of San Luis Obispo desires to update Title 16 (Subdivision Regulations) and Title 5 (Licenses, Permits, and Regulations) so that they may be consistent with current state law; and WHEREAS, a number of changes have been identified in order to clarify or change processes related to housing development to more efficiently implement policies and programs of the City of San Luis Obispo’s General Plan that are implemented through Title 17 (Zoning Regulations) and align with state housing law; 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 April 8, 2026, for the purpose of recommending various amendments to Title 16, Title 17, and Title 5 of the Municipal Code to ensure consistency with state law, as well as to clarify City standards and procedures; and 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 May 5, 2026, for the purpose of introducing various amendments to Title 16, Title 17, and Title 5 of the Municipal Code regarding accessory dwelling units, junior accessory dwelling units, urban lot splits, mobile homes, and other clarifications and changes to regulations associated with housing; 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: Page 191 of 412 Ordinance No. _____ (2026 Series) Page 2 O ______ 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, 17, and 5 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 Titles 16, 17, and 5 are consistent with state law. SECTION 2. Environmental Determination. The proposed code amendments to Title 16, Title 17, and Title 5 of the Municipal Code have been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. 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. Individual discretionary developments will still be required to conduct environmental analyses as appropriate. The proposed code amendments pertaining to ADUs and JADUs are also exempt under Public Resourced Code Section 21080.17 that applies to local ordinances implementing state regulations related to accessory dwelling units. SECTION 3. Title 5 LICENSES, PERMITS, AND REGULATIONS: Section 5.44.030 Exemptions is hereby amended as follows: 5.44.030 Exemptions. The provisions of this chapter shall not apply to the following tenancies in mobile home parks: A. Mobile home park spaces rented for nonresidential uses; B. Mobile home parks managed or operated by the United States Government, the state of California, or the county of San Luis Obispo; C. Tenancies which do not exceed an occupancy of twenty days and which do not contemplate an occupancy of more than twenty days; Page 192 of 412 Ordinance No. _____ (2026 Series) Page 3 O ______ D. Tenancies for which any federal or state law or regulation specifically prohibits rent regulation; E. Tenancies covered by leases or contracts which provide for a tenancy of more than a year, but only for the duration of such lease or contract. Upon the expiration of or other termination of any such lease or contract, this chapter shall immediately be applicable to the tenancy. No rent increases other than that allowed under the provisions of the lease shall be allowed during the duration of such a lease or contract. F. E. Spaces in a mobile home park which sells lots for factory-built or manufactured housing, or which provides condominium ownership of such lots, but only when the dwelling unit and the underlying interest in the space it is located upon are in the same ownership. (Ord. 1228 § 1, 1992; Ord. 1117, 1988) SECTION 4. Title 5 LICENSES, PERMITS, AND REGULATIONS: Section 5.44.040 Mobile home park owner exemptions under Section 5.44.030(F) is hereby repealed. SECTION 5. Title 16 SUBDIVISION REGULATIONS: Section 16.15.020 Qualifying requirements is hereby amended as follows: 16.15.020 Qualifying requirements. 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. 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. 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. Page 193 of 412 Ordinance No. _____ (2026 Series) Page 4 O ______ 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 California Government Code 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. 1. A minor urban lot split shall not be located on any site identified in California Government Code Section 65913.4(a)(6)(B) through 65913.4(a)(6)(K), inclusive, 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 as specifically defined in California Government Code Section 65913.4. 2. A major urban lot split shall not be located on any site identified in California Government Code Section 66499.41(a)(9)(A) through 66499.41(a)(9)(J), inclusive, 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. 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. Demolition or Alteration of Housing. A minor urban lot split shall not require the demolition or alteration of the types of housing identified in California Government Code Section 66411.7(a)(3)(D) and (F). A major urban lot split shall not require the demolition or alteration of the types of housing identified in California Government Code Section 66499.41(a)(8). Page 194 of 412 Ordinance No. _____ (2026 Series) Page 5 O ______ 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 a minor urban lot split, the lot proposed to be subdivided (“subject lot”) shall not be adjacent to any lot that was established through 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 a minor urban lot split. H. Lot Requirements and Limits. 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 195 of 412 Ordinance No. _____ (2026 Series) Page 6 O ______ 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 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. L. Housing Unit Specifications. Housing units on a major urban lot split shall be one of the housing unit types identified in California Government Code Section 66499.41(a)(4). 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 forty-five 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 California Government Code Section 65583.2(c)(3)(B), 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 196 of 412 Ordinance No. _____ (2026 Series) Page 7 O ______ 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. (Ord. 1743 § 5, 2025; Ord. 1729 § 4 (Exh. A), 2023) SECTION 6. Title 17 ZONING REGULATIONS: Section 17.10.020 Use regulations by zone is hereby amended as follows: 17.10.020 Use Regulations by zone. Retail Sales See Secs. 17.26.030(A), 17.30.030(A), 17.32.030, 17.34.030(A) and 17.36.030(A) Building Materials and Services— Indoor A A A A A Building Materials and Services— Outdoor MUP A MUP A A Extended Hour Retail MUP MUP MUP MUP MUP MUP MUP MUP General Retail A A A A MUP MUP Page 197 of 412 Ordinance No. _____ (2026 Series) Page 8 O ______ MUP Large- Scale Retail CUP CUP CUP Nurseries and Garden Centers CUP A A Theaters CUP MUP MUP MUP MUP Only nonprofit theaters are allowed in the PF zone. See also Sec. 17.86.030 SECTION 7. Title 17 ZONING REGULATIONS: Section 17.26.030 Additional regulations is hereby amended as follows: 17.26.030 Additional regulations. A. Maximum Retail Sales Building Size in the C-N Zone. A retail sales use in the C-N zone shall not exceed a gross floor area of two thousand square feet for each establishment, or a combined floor area of fifteen thousand square feet for all retail sales establishments within a shopping center, unless an approved minor use permit finds the use is consistent with applicable policies of the General Plan Land Use Element and is compatible with surrounding uses. A general retail sales use that does not exceed the floor area thresholds above is allowed and does not require a minor use permit. Exceptions to the floor area limitations above require minor use permit approval to ensure consistency with policies of the General Plan Land Use Element and compatibility with surrounding uses. B. Food and Beverage Sales in the C-N Zone. Page 198 of 412 Ordinance No. _____ (2026 Series) Page 9 O ______ 1. General Markets and Convenience Stores. General markets and convenience stores with a gross floor area under three thousand square feet are allowed by right. Such uses with a gross floor area exceeding three thousand square feet may be approved by a minor use permit. 2. Liquor Stores. Liquor stores shall be limited to three thousand square feet of gross floor area, subject to a minor use permit. C. Number of Parking Spaces Required in the C-N Zone. See Section 17.72.030(C) (Minimum Number of Spaces Required in the C-N Zone). (Ord. 1705 § 14, 2021; Ord. 1650 § 3 (Exh. B), 2018) SECTION 8. Title 17 ZONING REGULATIONS: Section 17.70.010 Accessory structures is hereby amended as follows: 17.70.010 Accessory structures. A. Purpose. 1. Regulations on accessory structures are established to provide a distinction between nonhabitable accessory structures (e.g., garage, storage shed, shop building) and accessory living spaces (e.g., accessory dwelling unit secondary dwelling units, guest quarters, office, pool house, etc.). These regulations establish standards which prevent the conversion of accessory structures into unpermitted living space to ensure that such structures are not used as separate dwelling units. 2. Unpermitted conversion of accessory structures is detrimental to the public health, safety, and welfare of the community. B. Applicability. 1. Application. This section shall apply to: a. New Structures. All new structures, as defined in the building code, located on the same site as the primary structure or use to which it is accessory, including, but not limited to, garages, carports, porte- cocheres, sheds, workshops, gazebos, greenhouses, cabanas, trellises, play structures, aviaries, covered patios, etc. Page 199 of 412 Ordinance No. _____ (2026 Series) Page 10 O ______ b. Decks and Patios. Decks and patios that are 30 inches above the ground elevation, excluding aboveground pools. 2. Exclusion. This section shall not apply to legally established dwellings, accessory dwelling units as defined in Section 17.156.004 (A Definitions), and guest quarters as defined in Section 17.158.018 (G Definitions). Accessory structures that include habitable space, as defined by the California Building Code, shall be regulated by Section 17.86.020 (Accessory Dwelling Units and Guest Quarters). C. Development Standards. 1. General Development Standards. Accessory structures shall conform to all applicable zoning regulations such as height, yards, parking, building coverage, setbacks (unless otherwise allowed, see Section 17.70.170(C)), etc. 2. Incidental Use. The use of an accessory structure is incidental, and subordinate to the use of the principal structure, or to the principal land use of the site. 3. Form. Accessory structures may consist of detached structures or additions to primary structures. 4. No Bathing Facilities. No bathing facilities (e.g., shower, bathtub) may be installed. Plans submitted for a building permit may not include spaces within a bathroom designed for the later addition of bathing facilities. 5. Limit on Total Number in Residential Zones. In residential zones, no more than three accessory structures shall be permitted per lot, only one of which may include a habitable accessory structure such as an accessory dwelling unit or guest quarters. This limit does not apply to accessory and junior accessory dwelling units. D. Process Requirements. 1. Building Permit. Development of an accessory structure shall require approval of a building permit from the city’s building division. Page 200 of 412 Ordinance No. _____ (2026 Series) Page 11 O ______ 2. Design Review. Plans submitted for a building permit shall be reviewed for consistency with the city’s community design guidelines and general development requirements of the zoning regulations. 3. Owners Agreement with the City. Prior to the issuance of construction permits, a covenant agreement shall be recorded that discloses the structure’s approved floor plan and status as an “accessory structure” which cannot contain living space, including bathing facilities or a kitchen. This agreement shall be recorded in the office of the county recorder to provide constructive notice to all future owners of the property. The covenant agreement also may contain authorization for annual inspections, and to allow the city upon reasonable time and notice to inspect the premises for compliance with the agreement and to verify continued compliance with requirements of this section and Health and Safety Codes. (Ord. 1650 § 3 (Exh. B), 2018) SECTION 9. Title 17 ZONING REGULATIONS: Section 17.70.070 Fences, walls, and hedges is hereby amended as follows: 17.70.070 Fences, walls, and hedges. A. Purpose. The purpose of these regulations is to achieve a balance between concerns for privacy and public concerns for enhancement of the community appearance, visual image of the streetscape, overall character of neighborhoods, and to ensure the provision of adequate light, air, and public safety. B. Application. These regulations apply to any type of visible or tangible obstruction that has the effect of forming a physical or visual barrier between properties or between property lines and the public right-of-way, including but not limited to: any type of artificially constructed barriers of wood, metal, or concrete posts connected by boards, rails, panels, wire or mesh, and any type of natural growth such as hedges and screen plantings. C. Standards for Fences Located within Required Setbacks. Fences, walls or hedges may be placed within required setbacks, provided they do not exceed maximum height limitations and comply with the following standards: 1. Fence Height within Front Setback. The maximum height of a fence, wall, or hedge shall not exceed six feet; except within any front setback, the Page 201 of 412 Ordinance No. _____ (2026 Series) Page 12 O ______ maximum fence, wall, or hedge height shall be as shown in Figure 3-4: Fence, Wall, and Hedge Height in Front Setbacks. See also Section 17.70.210 (Vision Clearance Triangle at Intersections). Figure 3-4. Fence, Wall, and Hedge Maximum Height in Front Setbacks 2. Corner Lots Fence Height within Street Side Setbacks. On corner lots, the maximum height of a fence, wall, or hedge shall not exceed six feet; except within any street side setback, the maximum fence, wall, or hedge height shall be as shown in Figure 3-5: Fence, Wall, and Hedge Height in Street Side Setbacks (Corner Lots). See also Section 17.70.210 (Vision Clearance Triangle at Intersections). Figure 3-5. Fence, Wall, and Hedge Maximum Height in Street Side Setbacks (Corner Lots) 3. Driveway Gates. In the R-1 zone, gates across driveways shall be set back a minimum of ten feet behind the property line. In all other zones, gates across driveways shall allow for adequate space to queue vehicles Page 202 of 412 Ordinance No. _____ (2026 Series) Page 13 O ______ entering the property consistent with Section 12.38.040 (Parking and driveway standards). 4. Interior Side and Rear Setback Height. The maximum height of a fence, wall, or hedge in any interior side or rear setback shall be six feet. 5. Arbors, Trellises, and Ornamental Features. a. General. Arbors, trellises, and other similar ornamental features are allowed within a required setback subject to the same height limits that apply to fences, walls, and hedges, except as provided in subsection (C)(5)(b) of this section. b. Street Side and Front Setback. Up to one arbor, trellis, or other similar ornamental feature per street frontage is allowed with a maximum height of nine feet, and an area of not more than forty square feet as measured by the perimeter formed by the vertical projection to the ground of the outermost elements of the feature, and no horizontal dimension shall exceed eight feet in length. Any portion of such a feature wider than eighteen inches and that exceeds the usual fence height requirements of this section shall be of an open design such that a person standing on the adjacent public right-of-way can see completely through at least fifty percent of the structure to the depth of the required street yard (see Figure 3-6: Arbors in Front and Street Side Setbacks). Such features within required setbacks shall not be connected to another structure or building. For the purposes of this section, the term “connected” shall include structures that are rigidly joined by structural components. Such features within required setbacks shall not be constructed of heavy materials such as masonry or metal. Such features within required setbacks comply with Section 17.70.210 (Vision Clearance Triangle at Intersections). Figure 3-6. Arbors in Front and Street Side Setbacks Page 203 of 412 Ordinance No. _____ (2026 Series) Page 14 O ______ 6. Pilasters. Decorative pilasters, statuary, flower pots, and similar ornamental elements attached to or incorporated into the design of conforming fences or walls may exceed the required height limit up to 18 inches, provided that the decorative element is not wider than eighteen inches and that such elements are used to define a gateway or other entryway or are otherwise at least four feet apart. D. Standards for Fences Located Outside of Required Setback Areas. Fences, walls, and arbors may be placed outside required setbacks, provided: 1. The maximum fence, wall, arbor or hedge height is eight feet. 2. Where the fence, wall, or arbor is connected to and a part of a building, it may be any height allowed in the underlying zone. E. Fence Height with Difference in Grade. Fence height is measured from the adjacent grade along the lower side of the wall, fence, or hedge, directly at the base of the wall or fence. F. Measurement of Height Where Fences or Walls Are Located on Retaining Walls. 1. Where fences or walls are located on retaining walls, the height of the retaining wall shall be considered as part of the overall height of the fence or wall. Walls or fences must have a minimum spacing of five feet between each other to be considered separate structures for purposes of measuring overall height. Page 204 of 412 Ordinance No. _____ (2026 Series) Page 15 O ______ 2. Where fences are located on a berm or mound, the height of the fence shall include the berm or mound directly beneath the fence and above natural grade in the overall height measurement. 3. Where fences are located on retaining walls within interior side or rear setbacks, fences shall not exceed six feet as measured from the uphill side if erected or replaced on top of the retaining walls, and the combined fence and retaining wall height shall not exceed nine feet from the lower side, provided no modification of grade has occurred from the original subdivision improvements and/or design approvals. A building permit is required for the combined fence and retaining wall height that exceeds six feet. If there is evidence that a modification to the grade has occurred from the original subdivision/design approvals, the height must be authorized through a fence height exception pursuant to Chapter 17.108 (Director’s Action). For retaining walls in hillside areas, see also Section 17.70.090(C)(3) (Retaining Walls). G. Intersection and Driveway Visibility. Notwithstanding other provisions of this section, fences, walls, and hedges shall comply with Section 17.70.210 (Vision Clearance Triangle at Intersections and Driveways). H. Director’s Action. The director, through a director’s action, may grant exceptions to standards of this section as set forth in Chapter 17.108 (Director’s Action) when there is no practical way to comply with the provisions and no other feasible alternatives will result in better implementation of other zoning regulations or general plan policies while allowing reasonable use of sites. Circumstances where a director’s action may be approved include, but are not limited to, issues related to topography and privacy. (Ord. 1705 §§ 17, 22, 2021; Ord. 1650 § 3 (Exh. B), 2018) SECTION 10. Title 17 ZONING REGULATIONS: Section 17.70.090 Hillside development standards is hereby amended as follows: 17.70.090 Hillside development standards. A. Purpose and Application. Page 205 of 412 Ordinance No. _____ (2026 Series) Page 16 O ______ 1. Purpose. The purpose of this section is to implement goals of the Conservation and Open Space and Land Use Elements of the General Plan: a. To protect and preserve scenic hillside areas and natural features such as the volcanic morros, ridge lines, plant communities, rock outcroppings and steep slope areas that function as landscape backdrops for the community; b. To avoid encroachment into sensitive habitats or unique resources as defined in the Conservation and Open Space Element; c. To protect the health, safety and welfare of community residents by directing development away from areas with hazards such as landslides, wildland fires, flooding and erosion; and d. To protect the city’s scenic setting. 2. Application. The provisions of this section shall apply to all lots and sites that have an average cross slope of sixteen percent or more (see Section 17.70.090(B): Average Slope Calculation). The director may require a survey and slope analysis to determine whether the provisions of this section apply to a specific property or development. Notwithstanding the requirements of this section, a lot created pursuant to the Subdivision Map Act and Title 16 (Subdivisions) of the San Luis Obispo Municipal Code prior to the effective date of this division may be developed with a single unit structure in compliance with other applicable requirements of these zoning regulations. B. Average Cross-Slope Calculation. Average cross-slope is the ratio, expressed as a percentage of the difference in elevation to the horizontal distance between two points on the perimeter of the area for which slope is being determined. The line along which the slope is measured shall run essentially perpendicular to the contours. 1. Where a site does not slope uniformly, average cross-slope is to be determined by proportional weighting of the cross-slopes of uniformly sloping subareas, as determined by the director. Page 206 of 412 Ordinance No. _____ (2026 Series) Page 17 O ______ 2. Cross-slope determinations shall be based on the existing topography of the net site area after subtracting the area for any future on-site grading necessary to accommodate proposed right-of-way improvements and other on-site improvements. 3. Cross-slope shall be calculated only for the net area as defined in Section 17.70.110 (Lot Area). C. Hillside Development Standards. 1. General Site Planning Standards. To assist in maintaining a natural appearance for hillsides and ridgelines, each structure shall be located in the most accessible, least visually prominent, most geologically stable portion or portions of the site, at the lowest feasible elevation, and shall, at a minimum, meet the following requirements: a. See Section 17.70.040(A)(2) (Maximum Development Density— Sloped Sites) for maximum density in hillside areas. b. See Section 17.70.090(B) (Building Height on Slopes with Sixteen Percent Grade or Greater) for maximum height in hillside areas. 2. Site Access and Driveways. Each driveway shall not have a grade steeper than five percent within ten feet of a garage or carport entry. Driveway finished grade shall not exceed an average of fifteen percent, or twenty percent at any point. 3. Retaining Walls. Retaining walls that are twenty feet in length shall be limited to six feet in height (above ground/visible portion). Retaining walls longer than twenty feet shall be limited to four feet in height (above ground/visible portion). A minimum five-foot horizontal separation is required between retaining walls. For exceptions, see subsection D of this section. 4. Downhill Building Walls. No single building wall on the downhill side of a house shall exceed fifteen feet in height above grade. Additional building height on a downhill side is allowed in fifteen-foot increments, where each increment is stepped-back from the lower wall a minimum of ten feet. Page 207 of 412 Ordinance No. _____ (2026 Series) Page 18 O ______ 5. Height of Lowest Floor Level, Decks, and Support Structures. See Figure 3-9: Height Limit for Lowest Floor, Decks, and Support Structures. a. Lowest Floor Level. The vertical distance between the lowest point where the foundation meets grade and the lowest floor line of the structure shall not exceed six feet. b. Decks. No portion of the walking surface of a deck with visible underpinnings shall exceed a height of six feet above grade. c. Support Structures. Support structures (e.g., columns, pilings, etc.) below the lowest floor on the downhill side of a house shall be enclosed unless visible structural members are an integral feature of the architectural design. Support structure wall surfaces shall not exceed six feet in height. Figure 3-9. Height Limit for Lowest Floor, Decks, and Support Structures 6. Exterior Wall Surfaces. a. Single-story and small-scale elements, setbacks, overhangs, roof pitches, and/or other means of horizontal and vertical articulation shall be used to create shade and shadow and break up otherwise massive forms to minimize the apparent size of exterior wall surfaces visible from public rights-of-way. Page 208 of 412 Ordinance No. _____ (2026 Series) Page 19 O ______ b. Large flat building planes are prohibited; the spatial arrangement of the building, including roof overhangs, shall be used to achieve alternating light and dark building surfaces that will blend with similar contrasts found in the surrounding natural vegetation. 7. Mechanical Equipment. Mechanical equipment may be placed on rooftops or below a deck only if the equipment is not visible from the public right-of-way or adjacent properties, except for solar collectors that are compatible with the roof line and architecturally integrated with the structure. 8. Fencing. Hillside area perimeter fencing that is visible from off-site vantages, except on side and rear yards that are directly adjacent to living areas on adjacent lots, shall be of a semitransparent, rather than solid, design. Semitransparent material includes, but is not limited to, wrought iron, split rail, and four-inch square welded wire. In side and rear yards between living areas on adjacent lots, solid, opaque fencing is allowed. However, the preference is for a more naturalistic approach to screening in the side yards, with semi-transparent fencing combined with landscaping, or landscaping alone. D. Director’s Action. The director may grant exceptions to standards of this section as set forth in Chapter 17.108 (Director’s Action), subject the following additional findings: 1. Intent. The director, through a director’s action, may act to approve an exception to the hillside requirements of this section only where the applicant can provide clear and substantiated evidence that there is no practical way to comply with the provisions and that no other feasible alternatives will result in better implementation of other zoning regulations or general plan policies while allowing reasonable use of sites subject to hillside regulations. 2. Application Type. A hillside regulation less than required by this section may be approved by city action on a plan for public facilities approved by the council or on a specific plan, development plan under planned development zoning, land division, use permit, or architectural review. Where one of these types of applications is not otherwise required for the proposed feature, an exception request shall be in the form of a director’s action. Page 209 of 412 Ordinance No. _____ (2026 Series) Page 20 O ______ 3. Findings. Each director’s action to grant an exception to a required hillside regulation shall be subject to each of the following findings, regardless of the type of project application under which the request is considered: a. The proposed alternative complies with and furthers the intent of this section; and b. The proposed alternative provides a design solution that is equivalent to or better than the standards prescribed in this section for quality, effectiveness, durability, and safety; and c. The location and design of the feature receiving the exception will minimize impacts to scenic resources and will not hinder opportunities for wildlife habitation, rest, and movement; and d. The exception will not prevent the implementation of city-adopted plans, nor increase the adverse environmental effects of implementing such plans; and e. There are circumstances applying to the site, such as size, shape, or topography, which do not apply generally to land in the vicinity with the same zoning, that would deprive the property of privileges enjoyed by other property in the vicinity with the same zoning; and f. The exception will not constitute a grant of special privilege—an entitlement inconsistent with the limitations upon other properties in the vicinity with the same zoning; and g. The exception will not be detrimental to the public welfare or injurious to other property in the area of the project; and h. Site development cannot be feasibly accomplished with a redesign of the project or redesign of the project would deny the property owner reasonable use of the property. “Reasonable use of the property” in the case of new development may include less development than indicated by zoning. In the case of additional development on an already developed site, “reasonable development” may mean no additional Page 210 of 412 Ordinance No. _____ (2026 Series) Page 21 O ______ development considering site constraints and the existing development’s scale, design, or density. E. Process Requirements. 1. Minor Development Review. Except as provided in state law, hillside Hillside development shall require approval of minor development review from the city’s planning division. 2. Design Review. Except as provided in state law, plans Plans submitted for hillside development shall be reviewed for consistency with the city’s community design guidelines, this section, and general development standards of the zoning regulations. (Ord. 1705 § 17, 2021; Ord. 1650 § 3 (Exh. B), 2018) SECTION 11. Title 17 ZONING REGULATIONS: Section 17.70.120 Lot coverage is hereby amended as follows: 17.70.120 Lot coverage. A. Purpose and Application. As defined in Chapter 17.158 (General Definitions), lot coverage is the ratio of the total area of a lot covered by the footprint of all structures to the net lot area, typically expressed as a percentage of the total lot area, including all buildings, decks, balconies, porches, accessory structures and accessory dwellings, and similar architectural features. Maximum coverage shall be as provided in the specific property development standards for the various zones in Chapters 17.12 through 17.60, inclusive. Figure 3-11. Lot Coverage Page 211 of 412 Ordinance No. _____ (2026 Series) Page 22 O ______ B. Excluded from Lot Coverage. The following structures shall be excluded from the lot coverage calculation: 1. Uncovered decks, porches, landings, balconies, and stairways that are thirty inches or less in height, as measured from the adjacent existing grade. Figure 3-12. Decks Excluded from Coverage 2. Roof eaves which project thirty inches or less from the structure are not included in the determination of coverage. 3. Swimming pools and hot tubs that are not enclosed in roofed structures or decks. 4. One small, nonhabitable accessory structure under one hundred twenty square feet and under seven feet high. Any additional structures above quantity of one shall be included in lot coverage. 5. The first Up to eight hundred square feet of an accessory dwelling unit lot coverage. Any additional square footage of an accessory dwelling unit lot coverage shall be subject to applicable requirements included in lot coverage. (Ord. 1705 §§ 17, 23, 2021; Ord. 1677 § 2, 2020; Ord. 1657 § 9, 2019; Ord. 1650 § 3 (Exh. B), 2018) SECTION 12. Title 17 ZONING REGULATIONS: Section 17.70.170 Setbacks is hereby amended as follows: 17.70.170 Setbacks. Page 212 of 412 Ordinance No. _____ (2026 Series) Page 23 O ______ A. Purpose. This section establishes standards for the measurement of setbacks and required setback areas. These provisions, in conjunction with other applicable provisions of the zoning regulations, are intended to help determine the pattern of building masses and open areas within neighborhoods. They also provide separation between combustible materials in neighboring buildings. Setback areas are further intended to help provide landscape beauty, air circulation, views, and exposure to sunlight for both natural illumination and use of solar energy. B. Measurement of Setbacks. 1. General. All setback distances shall be measured at right angles from the designated property line to the building or structure, and the setback line shall be drawn parallel to and at the specified distance from the corresponding front, side, or rear property line. Exception: Where the front property line is located beyond the curb (i.e., within a street or common driveway), the front setback is defined as the minimum distance between a structure and the edge of curb. 2. Building Height and Setbacks. The height of a building in relation to setback standards is the vertical distance from the ground to the top of the roof, measured at a point that is a specific distance (the setback distance) from the property line. Height measurements shall be based on the existing topography of the site before grading for proposed on-site improvements. Where building height is linked to a minimum setback, that setback shall apply to the building incrementally and shall not require a clear-to-sky setback for the entire building. Rather, the setback requirements allow the building to be stepped back incrementally consistent with the required setback distance based on building height. 3. Sloped Lots. For sloped lots, the measurement shall be made as a straight, horizontal line from the property line to the edge of the structure, not up or down the hill slope. 4. Flag Lots. For flag lots, the pole portion of the parcel shall not be used for defining setback lines. Page 213 of 412 Ordinance No. _____ (2026 Series) Page 24 O ______ C. Allowed Projections into Required Setback Areas. The following features are allowed projections into required setback areas: 1. Utility Structures. Adequately screened components of public utility systems may be located within front and street side setbacks when approved by director’s action. 2. Fences, Walls, and Hedges. Fences, walls, and hedges may occupy setbacks to the extent provided in Section 17.70.070 (Fences, Walls, and Hedges). Vegetation may also be controlled by the California Solar Shade Control Act. 3. Arbors and Trellises. Arbors and trellises may occupy setbacks subject to the extent provided in Section 17.70.070 (Fences, Walls, and Hedges). Arbors and trellises shall not be connected to or supported by a building, nor be designed to support loads other than vines or similar plantings. They are not considered structures for zoning purposes and shall not be used as patio covers. 4. Signs. Signs in conformance with the sign regulations codified in Chapter 15.40 (Sign Regulations) may occupy setbacks to the extent provided in that chapter. 5. Architectural Features. The following and similar architectural features may extend into a required setback: a. Cornices, canopies, eaves, buttresses, chimneys, solar collectors, shading louvers, reflectors, water heater enclosures, and bay or other projecting windows that do not include usable floor space may extend no more than thirty inches into a required setback (see Figure 3-13: Architectural Feature Projections into Required Setbacks). Figure 3-13. Architectural Feature Projections into Required Setbacks Page 214 of 412 Ordinance No. _____ (2026 Series) Page 25 O ______ b. Uncovered balconies, uncovered porches, and decks over thirty inches in height may extend into the required setback not more than four feet or one-half the required setback distance, whichever is less. Fire escapes, exit stairs, or other required exits may be required to meet greater setbacks to comply with building code requirements. c. Planters and similar features (e.g., patios and decks) less than thirty inches in height may be located within the required setbacks. 6. Mechanical Equipment. Mechanical equipment shall comply with required setbacks, with the following exceptions: a. Ground-mounted heating and air conditioning equipment, and tankless water heaters shall be set back not less than thirty inches from the side and rear property lines and shall comply with Chapter 9.12 (Noise Control). b. Mechanical equipment serving swimming pools, spas, and water features shall be set back not less than three feet from a side or rear property line. All such equipment shall be acoustically shielded to comply with Chapter 9.12 (Noise Control). 7. Trash Enclosures. Enclosures that have been approved in conjunction with Development Review or a discretionary review process may be located within a required side or rear setback, provided no part of the enclosure is less than three feet from any right-of-way or adopted setback line. Page 215 of 412 Ordinance No. _____ (2026 Series) Page 26 O ______ 8. Vehicle Parking. Vehicle parking in front yard areas (as defined in Section 17.158.016: F Definitions) of residential properties shall conform to Section 17.76.040 (Front Yard Parking). No person shall stop, park, or leave standing any vehicle, whether attended or unattended, within any front or street side setback or upon any unpaved surface as defined in this section and Section 12.38.040 (Parking and Driveway Standards). 9. Unenclosed Parking Spaces in Side and Rear Setbacks. Unenclosed parking spaces and parking aisles may be located within side and rear setbacks. For residential properties, parking spaces may not be located within the front yard area unless consistent with Section 17.76.040 (Front Yard Parking). 10. Enclosed and Unenclosed Parking Spaces in Front and Street Side Setback Prohibited. In no case shall an enclosed parking space or required parking space from which vehicles exit directly onto the street be located less than twenty feet from the street right-of-way or property line, except as provided in subsection D (Exceptions to Setback Requirements) of this section, or as provided in Section 17.76.040(D) (Single Car Garages and Single Car Parking). In no case shall a parking space encroach on a public sidewalk. 11. Landscaping in Setbacks. Required setbacks with city-required landscape plans and stormwater facilities shall be landscaped and maintained in compliance with approved plans. 12. Second Story Setback in R-1 Zone. Up to fifty percent of the upper story side wall may align with the lower floor wall, provided such alignment occurs within the rear half of the structure (see Figure 3-14: Second Story Setback Allowed Projection). Figure 3-14. Second Story Setback Allowed Projection Page 216 of 412 Ordinance No. _____ (2026 Series) Page 27 O ______ D. Exceptions to Setback Requirements. 1. Exceptions Entitled to Property Due to Physical Circumstances. a. Front and/or Street Side Setback Averaging in Developed Areas. Where these zoning regulations require front and/or street side setbacks and where buildings have been erected on at least one-half of the lots in a block as of the effective date of the regulations codified in this section, the minimum required front and/or street side setback shall be the average of the front and/or street side (as applicable) setback of the developed lots, but in no case less than ten feet nor more than would otherwise be required. Averaging does not apply to enclosed parking structures. b. Reduced Front or Street Side Setback for New Structure Providing Additional Creek Setback. Where a new structure provides a rear or side creek setback larger than required by these Zoning Regulations, the required front and/or street side setback, respectively, shall be reduced by one foot for each one foot of additional creek setback, so long as the front and street side setback is at least one-half that required by the zone in which the property is located. Refer to the front and street side setback standards for each zone in Chapters 17.12 through 17.60, inclusive. c. Setbacks Adjacent to an Alley. The standards required for interior side and rear setbacks shall apply along alleys. However, zero setback is allowed for required surface parking spaces. Page 217 of 412 Ordinance No. _____ (2026 Series) Page 28 O ______ d. Rear Setback on Through Lots. On through lots, the minimum rear setback shall be the equivalent to the minimum required front setback. 2. Discretionary Exceptions. Discretionary exceptions to setback requirements shall require a director’s action and meet the findings required for a director’s action (Chapter 17.108), as well as any findings indicated below for an individual exception. a. Reduced Front and Street Side Setbacks. Upon approval of a director’s action, or in conjunction with tandem parking approval, the director may allow front and/or street side setbacks to be reduced to zero for unenclosed parking spaces. Front and street side setbacks may be reduced to ten feet for structures, including side-loaded carports and garages. However, no driveway shall be less than 18 feet six inches deep, as measured from the sidewalk to face of a garage, or where no sidewalk exists, the outer edge of the street, to accommodate a parked car in the driveway without overhanging onto the public right- of-way. b. Variable Front Setbacks in Subdivisions. In new residential subdivisions, the review authority may approve variable front setbacks, to be noted on the approved map, provided the average of the front setbacks on a block is at least fifteen feet and no front setback is less than ten feet. Garages or carports that back directly onto the public right-of-way shall maintain a minimum setback of at least eighteen feet six inches, as measured from the sidewalk or where no sidewalk exists, as measured from the outer edge of the public right-of-way, to accommodate a parked car in the driveway without overhanging onto the public right-of-way. c. Variable Side and Rear Setbacks in New Subdivisions. In new residential subdivisions, the review authority may approve exceptions to the side and rear setback standards, with the exceptions to be noted on the map, provided a separation of at least ten feet between buildings on adjacent lots will be maintained and an acceptable level of solar exposure will be guaranteed by alternative setback requirements or private easements to ensure the development will comply with solar Page 218 of 412 Ordinance No. _____ (2026 Series) Page 29 O ______ access standards of General Plan Conservation and Open Space Element Policy 4.5.1. d. Other Setback Variations in Previously Subdivided Areas. Upon approval of a director’s action, the director may allow side and rear setbacks to be reduced to zero under either of the following circumstances: i. When there exists recorded agreement, to the satisfaction of the city attorney, running with the land to maintain at least ten feet of separation between buildings on adjacent parcels and the development will comply with solar access standards of General Plan Conservation and Open Space Element Policy 4.5.1; or ii. When the reduction is for either a minor addition to an existing legal structure that is nonconforming with regard to side and rear setback requirements or for a detached single-story accessory structure; provided, that all such minor additions and new accessory structures shall comply with applicable provisions of Title 15, Building and Construction (see also Chapter 17.92, Nonconforming Structures) and the director makes the following findings: (a) In the case of a minor addition, that the minor addition is a logical extension of the existing nonconforming structure; (b) In the case of a detached single-story accessory structure (either new or replacing a previously approved nonconforming structure), that the accessory structure is consistent with the traditional development pattern of the neighborhood and will have a greater front and/or street side setback than the main structure; (c) That adjacent affected properties will not be deprived of reasonable solar exposure, and the development will comply with solar access standards of General Plan Conservation and Open Space Element Policy 4.5.1; (d) That no useful purpose would be realized by requiring the full setback; Page 219 of 412 Ordinance No. _____ (2026 Series) Page 30 O ______ (e) That no significant fire protection, emergency access, privacy, or security impacts are likely from the addition; and (f) That it is impractical to obtain a ten-foot separation easement in compliance with subsection (D)(2)(d)(ii)(a) of this subsection. e. Side and Rear Setback Building Height Exceptions. Upon approval of a director’s action, the director may allow exceptions to the side and rear setback standards provided in Article 2 for each zone. Such exceptions may be granted in any of the following and similar circumstances, but in no case shall exceptions be granted for less than the minimum setback required: i. When the property that will be shaded by the excepted development will not be developed or will not be deprived of reasonable solar exposure, considering its topography and zoning; ii. When the exception is of a minor nature, involving an insignificant portion of total available solar exposure; iii. When the properties at issue are within an area where use of solar energy is generally infeasible because of landform shading; iv. When adequate recorded agreement running with the land exists to protect established solar collectors and probable collector locations; v. When the property to be shaded is a street; vi. Where no significant fire protection, emergency access, privacy or security impacts are likely to result from the exception. vii. The development will comply with solar access standards of General Plan Conservation and Open Space Element Policy 4.5.1. Any other exception to the height limits requires approval of a variance as provided in Chapter 17.114 (Variances). For height limits of signs, see Chapter 15.40, Sign Regulations. (Ord. 1705 §§ 17, 27, 28, 2021; Ord. 1657 § 10, 2019; Ord. 1650 § 3 (Exh. B), 2018) Page 220 of 412 Ordinance No. _____ (2026 Series) Page 31 O ______ SECTION 13. Title 17 ZONING REGULATIONS: Section 17.70.210 Vision clearance triangle at intersections is hereby amended as follows: 17.70.210 Vision clearance triangle at intersections and driveways. A. Intersection Visibility. At roadway intersections not controlled by a stop sign or traffic signal, no plant, structure, or other solid object over three feet high that would obstruct visibility may be located within the area indicated in Figure 3-15: Intersection Visibility. At controlled intersections, the director shall determine visibility requirements for proper sight distance. Figure 3-15. Intersection Visibility B. Driveway Visibility. At driveway approaches, no plant, structure, or other solid object over three feet high that would obstruct visibility may be located within the area indicated in Figure 3-16: Driveway Visibility. Figure 3-16. Driveway Visibility Page 221 of 412 Ordinance No. _____ (2026 Series) Page 32 O ______ (Ord. 1705 § 17, 2021; Ord. 1650 § 3 (Exh. B), 2018) SECTION 14. Title 17 ZONING REGULATIONS: Section 17.86.020 Accessory dwelling units, and junior accessory dwelling units, and guest quarters is hereby amended as follows: 17.86.020 Accessory dwelling units, and junior accessory dwelling units, and guest quarters. A. Purpose and Applicability. The purpose of this chapter is to prescribe development and site regulations that apply, except where specifically stated, to accessory dwelling units, junior accessory dwelling units, and guest quarters, as defined in Chapter 17.156 (Land Use Definitions). B. Accessory Dwelling Units. The provisions in this subsection shall apply to accessory dwelling units as defined in Chapter 17.156 (Land Use Definitions) and where allowed in compliance with Chapter 17.10 (Use Regulations). 1. Purpose. The purpose of this chapter is to provide for the creation of accessory dwelling units in a manner that is consistent with requirements identified in Chapter 13 of Division 1 of Title 7 of the California Government Code, as amended from time to time. Implementation of this section is meant to expand housing opportunities by increasing the number of smaller units available within existing neighborhoods. 2. General Requirements. Page 222 of 412 Ordinance No. _____ (2026 Series) Page 33 O ______ 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 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. b. Size of Accessory Dwelling Unit. 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. Page 223 of 412 Ordinance No. _____ (2026 Series) Page 34 O ______ c. Accessory Dwelling Unit Setbacks. Except as provided in state law, the following minimum setbacks from side and rear lot lines shall apply to accessory dwelling units: i. Four feet for a detached accessory dwelling unit that is no taller than sixteen feet on a lot with an existing or proposed single-family or multifamily dwelling unit. ii. Four feet for a detached accessory dwelling unit that is no taller than eighteen feet on a lot with an existing or proposed multifamily, multistory dwelling unit. iii. Four feet for an accessory dwelling unit that is attached to a primary dwelling that is no taller than twenty-five feet. iv. 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. d. Additional Height Allowance. Except as provided in state law, accessory dwelling units are subject to the maximum height limits provided by the underlying zone. Except as allowed in subsection (c) of this section, accessory dwelling units shall be consistent with the setback requirements provided by the underlying zone. e. c. Other Design Standards. Except as provided in state law or otherwise stated in this section, accessory 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. Page 224 of 412 Ordinance No. _____ (2026 Series) Page 35 O ______ 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 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). ii. 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. iii. vi. Exceptions to these design standards can be approved by the director, through director’s action, subject to required findings (Section 17.108.040). f. 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 225 of 412 Ordinance No. _____ (2026 Series) Page 36 O ______ g. 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. h. 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. i. 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). j. h. Additional Accessory Dwelling Unit Configurations. Accessory dwelling units that are consistent with Government Code Section 66323 shall receive ministerial approval. Building permit applications to create accessory dwelling units consistent with Government Code Section 66323 shall clearly be labeled as such (e.g., “ADU-66323”). 4. Procedural Requirements. An accessory dwelling unit that meets the standards contained in this section shall be subject to ministerial review (building permit) and approval without discretionary review (i.e., use permit, architectural review, etc.) or public hearing. a. Within sixty days of receiving a complete application, the city shall approve any such application which complies with all applicable requirements and development standards identified in this chapter or deny any such application that does not. If the proposed accessory dwelling unit(s) does not comply with the requirements and standards identified in this chapter, the applicant shall receive a full set of comments with a list of items that are defective or deficient and a Page 226 of 412 Ordinance No. _____ (2026 Series) Page 37 O ______ 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 regulations. The number of ADUs within the existing or proposed converted space of a multifamily dwelling shall not exceed twenty-five 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 Page 227 of 412 Ordinance No. _____ (2026 Series) Page 38 O ______ requirements identified in 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 lot zoned for single-family residences with existing or proposed single-family residence(s). A junior accessory dwelling unit may be located on the same lot as an accessory dwelling unit under one of the following circumstances: Page 228 of 412 Ordinance No. _____ (2026 Series) Page 39 O ______ 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 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. 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 Page 229 of 412 Ordinance No. _____ (2026 Series) Page 40 O ______ 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. 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. 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 Page 230 of 412 Ordinance No. _____ (2026 Series) Page 41 O ______ the county recorder to provide constructive notice to all future owners of the property. 7. No Short-Term Rental. A junior accessory dwelling unit cannot be rented for a period of less than thirty days. Homestay use of a junior accessory dwelling unit is prohibited. 8. Violations. Violation of any of the provisions set forth in this chapter shall be subject to code enforcement action as provided in Title 1. D. Guest Quarters. 1. Purpose and Intent. The purpose of this section is to establish regulations for the development of guest quarters as an approved accessory use to a primary residential unit in accordance with Section 17.70.010 (Accessory structures). 2. Applicability. This section does not apply to legally established dwellings or accessory dwelling units, or accessory structures, which are separately defined in Chapter 17.158 (General Definitions). 3. General Requirements. Guest quarters shall conform to all applicable zoning regulations such as height, yards, parking, building coverage, etc., and shall be subject to the following provisions: a. Accessory to Primary Residence. Guest quarters may only be used in conjunction with a primary residence that contains a kitchen and may consist of detached structures or additions to primary structures. Only one guest quarters may be permitted per property. b. Size. Guest quarters shall be no larger than four hundred fifty square feet. c. Density and Development Standards. Guest quarters shall be consistent with density provisions and development standards of the underlying zone. For the purposes of calculating density in multi-unit residential zones, guest quarters will be considered an additional bedroom, accessory to the primary unit. The structure may not exceed Page 231 of 412 Ordinance No. _____ (2026 Series) Page 42 O ______ four hundred fifty square feet and shall remain in an open floor plan (studio configuration). d. Zones in Which Guest Quarters May Be Allowed. Upon meeting the requirements in this section, guest quarters may be established in the following zones: R-1, R-2, R-3, R-4, and O, when the primary use on the site is a single-unit residential dwelling. e. Areas Prohibited. Guest quarters shall not be established in any condominium or planned development project unless specifically addressed in the planned development ordinance as adopted or amended, or any mobile home subdivision or trailer park. Guest quarters shall not be allowed on lots with an existing accessory dwelling unit. f. Owner Occupancy. The property must be occupied by the property owner as the owner’s primary place of residence. If a property can no longer be occupied as the owner’s primary place of residence, the guest quarters may continue to be used as habitable space (e.g., office, pool house, art studio) but can no longer be used as overnight sleeping quarters. g. No Separate Rental. Guest quarters may not be rented separately from the primary dwelling unit. h. No Kitchen Facilities. No facilities meeting the definition of a “kitchen” as defined in Chapter 17.158 (General Definitions) may be installed and plumbing shall be provided for bathroom use only. No plumbing may be provided to “wet bars,” dishwashers, or any features that could be used for a kitchen. Plans approved for construction of guest quarters shall not include countertops or plumbing designed for subsequent installation of sinks, dishwashers, garbage disposals, or any other features consistent with the definition of a “kitchen.” 4. Procedural Requirements. Prior to filing building plans with the city building division, the following shall be met: a. Design Review. All requests shall be reviewed for consistency with the city’s community design guidelines and this section. All new Page 232 of 412 Ordinance No. _____ (2026 Series) Page 43 O ______ development projects within historic districts or within properties that contain designated historic structures shall be referred to the cultural heritage committee to be reviewed for consistency with Secretary of the Interior standards for treatment of a historic property. b. Owner’s Agreement with the City. Prior to the issuance of construction permits, a covenant agreement shall be recorded that discloses the structure’s approved floor plan and status as “guest quarters,” which cannot be used as an independent dwelling unit, and may only be used in conjunction with the primary residence that contains a kitchen. This agreement shall be recorded in the office of the county recorder to provide constructive notice to all future owners of the property. The covenant agreement also may contain authorization for annual inspections, and to allow the city upon reasonable time and notice to inspect the premises for compliance with the agreement and to verify continued compliance with requirements of this section and health and safety codes. If a property can no longer be occupied as the owner’s primary place of residence, the guest quarters may continue to be used as habitable space (e.g., office, pool house, art studio) but shall no longer be used as overnight sleeping quarters. c. Conversion of Guest Quarters to an Accessory Dwelling Unit. A legally established guest quarters may either be retained in its configuration or be converted to an accessory dwelling unit in compliance with the provisions of this chapter. (Ord. 1743 § 13, 2025; Ord. 1705 § 44, 2021) SECTION 15. Title 17 ZONING REGULATIONS: Section 17.86.160 Homestay rentals is hereby amended as follows: 17.86.160 Homestay rentals. A. Purpose and Intent. The purpose of this section is to allow owner-occupied homestay rentals as defined in Chapter 17.156 (Land Use Definitions) and where permitted in Chapter 17.10 (Use Regulations) with reasonable standards to preserve neighborhood character and quality of life. Page 233 of 412 Ordinance No. _____ (2026 Series) Page 44 O ______ B. Permit Required. The conduct of a homestay rental requires the approval of a homestay permit by the director, who may establish additional conditions to further the intent of this section. If anyone informs the community development department of a reasonable objection concerning the proposed homestay within the public notification period, the director may schedule a hearing for the application pursuant to the requirements of a minor use permit. C. Application Requirements. 1. Operators of homestays in all zones are required to obtain a homestay permit and a business license. 2. The operator of the homestay shall pay transient occupancy tax and tourism business improvement district tax as required by the municipal code. 3. The operator of the homestay shall annually provide verification of primary residence through the homeowner’s property tax exemption or other appropriate documentation. 4. The operator of the homestay shall provide the name and contact information of a responsible party in the application if the owner-occupier anticipates he or she may not be on the premises at all times during the homestay rental. D. Performance Standards. 1. Homestays shall comply with the property development and performance standards set forth in Articles 2 (Zones, Allowable Uses, and Development and Design Standards) and 3 (Regulations and Standards Applicable to All Zones) of this title. 2. All building and fire code regulations shall be met. 3. The number of overnight guests shall be limited to four adults. Bedrooms shall meet the minimum size requirements as defined in the building code. 4. At all times when a homestay rental is occurring, the owner or responsible party shall be within a fifteen-minute drive of the property. The Page 234 of 412 Ordinance No. _____ (2026 Series) Page 45 O ______ owner or responsible party shall be available via telephone twenty-four hours a day, seven days a week, to respond to complaints regarding the homestay. Contact information for the owner and responsible party shall be provided to homestay guests, adjacent neighbors and stated on the application. 5. Upon sale or transfer of the home for which a homestay permit has been granted, a new homestay application shall be required within sixty days of the transfer. Failure to submit a new application as required within sixty days shall result in the termination of the existing allowed use. 6. The homestay shall be limited to only the owner-occupied dwelling unit on the property. Homestays shall not be permitted within recreational vehicles or within accessory dwelling units. 7. Any advertisements for the homestay shall include the business license number. On-site advertising of the homestay is prohibited. E. Revocation of a Permit. 1. Violation of these requirements and standards shall constitute grounds for revocation of the homestay permit. Failure to comply with ongoing operation requirements and annual verification processes shall render the homestay permit expired. 2. At any time, the permit can be referred to an administrative review hearing if determined by the director upon receipt of substantiated written complaints from any resident, code enforcement officer, or police department officer, which includes information and/or evidence supporting a conclusion that a violation of the permit, or of city ordinances or regulations applicable to the property or operation of the homestay, has occurred. At the time of the permit review, to ensure compliance with applicable laws and conditions of permit, conditions of approval may be added, deleted or modified, or the permit may be revoked. (Ord. 1705 § 50, 2021; Ord. 1650 § 3 (Exh. B), 2018) Page 235 of 412 Ordinance No. _____ (2026 Series) Page 46 O ______ SECTION 16. Title 17 ZONING REGULATIONS: Section 17.92.020 Limits on reconstruction - Exceptions is hereby amended as follows: 17.92.020 Limits on reconstruction - Exceptions. A. A nonconforming structure that is involuntarily damaged to an extent of seventy-five percent or more of its replacement cost immediately prior to such damage, as determined by the chief building official, may be restored only if made to conform. B. Notwithstanding subsection A of this section, nonconforming residences in the R-1, R-2, R-3, R-4, O, C-N, C-C, C-R, C-T, C-D, and C/OS zones that have been involuntarily damaged to an extent of seventy-five percent or more of their replacement value cost immediately prior to such damage, as determined by the chief building official, may be rebuilt at the same density and up to the same size under the following circumstances: 1. All construction must conform to current building codes, zoning regulations, and design guidelines, except that the previously existing number of dwelling units and size of buildings will be allowed. 2. A building permit for the replacement structure(s) must be obtained within three years of the date of the damage or destruction. 3. Exceptions to the above provisions may be granted by the director for historic structures designated as such in any list or plan element adopted by the city, or for buildings that are over fifty years old where the existing building and any proposed additions or modifications are consistent with the historic preservation guidelines and community design guidelines, as determined by the director. 4. Notwithstanding the above provisions, application for replacement structures of the same density and size may be denied if the director makes one of the following findings: a. The reconstruction, restoration, or rebuilding will be detrimental or injurious to the health, safety, or general welfare of persons living or working in the neighborhood. Page 236 of 412 Ordinance No. _____ (2026 Series) Page 47 O ______ b. The reconstruction, restoration, or rebuilding will be detrimental or injurious to property and improvements in the neighborhood. c. There no longer exists a zone in which the existing nonconforming use is permitted. C. Changes to interior partitions or other nonstructural improvements and repairs may be made to a nonconforming building. However, demolition, as defined in Section 17.158.012 (D Definitions), and reconstruction shall be permitted only if the structure is made to conform. D. The value of additions allowed pursuant to subsections (F)(1) and (F)(2) of this section shall be excluded from calculation of replacement cost of the nonconforming structure. E. Decisions of the chief building official regarding replacement cost may be appealed to the council. F. Additions to nonconforming structures that further the intent of this chapter may be permitted through a director’s action, subject to a finding of consistency with the intent of this chapter as follows: 1. Additions conform to current building codes, zoning regulations, and design guidelines, where the addition and associated modifications do not result in demolition of the existing structure, as defined in Section 17.158.012 (D Definitions). 2. The director may allow certain setbacks to be reduced to zero in some instances for minor additions to existing legal nonconforming structures (see Section 17.70.170(D)(2)(d)). (Ord. 1705 § 54, 2021; Ord. 1657 § 20, 2019; Ord. 1650 § 3 (Exh. B), 2018) G. Additions to nonconforming structures that conform to current building codes, zoning regulations, and design guidelines for the purpose of creating an accessory dwelling unit may be permitted ministerially. SECTION 17. Title 17 ZONING REGULATIONS: Section 17.140.040 Standard incentives for housing projects is hereby amended as follows: 17.140.040 Standard incentives for housing projects. Page 237 of 412 Ordinance No. _____ (2026 Series) Page 48 O ______ A. This section shall apply only to housing projects consisting of five or more dwelling units, including mixed-use developments. Per state law, projects that provide affordable housing are allowed up to a fifty percent density bonus based on the tables outlined below for the respective affordability levels. In addition, the director may approve a density bonus in excess of fifty percent at the request of the developer, as well as other concessions and incentives outlined in Section 17.140.070. B. Density bonus calculations that use fractional density (see Section 17.70.040) shall apply fractional density consistently for both the market rate and affordable units within a project. The application of fractional density shall only be utilized in favor of producing the maximum number of affordable housing units. B. C. All density calculations resulting in fractional units shall be rounded up to the next whole number. C. D. For the purpose of this section, “total units” or “total dwelling density units” does not include units added by a density bonus awarded pursuant to this section or any local law granting a greater density bonus. D. E. Ten Percent Low-Income Dedication. When a developer agrees to construct at least ten percent of the total units of a housing development for persons or families of lower income, the director shall grant the developer, upon the developer’s request, a density bonus; the density bonus shall be calculated as follows: Table 8-3: Density Bonus for Percentage of Low- Income Dedicated Units Percentage Low-Income Units Percentage Density Bonus 10 20 11 21.5 12 23 Page 238 of 412 Ordinance No. _____ (2026 Series) Page 49 O ______ Table 8-3: Density Bonus for Percentage of Low- Income Dedicated Units Percentage Low-Income Units Percentage Density Bonus 13 24.5 14 26 15 27.5 16 29 17 30.5 18 32 19 33.5 20 35 21 38.75 22 42.5 23 46.25 24 50 E. F. Five Percent Very Low-Income Dedication. When a developer agrees to construct at least five percent of the total units of a housing development for very low-income households, the director shall grant the developer, upon the developer’s request, a density bonus; the density bonus shall be calculated as follows: Page 239 of 412 Ordinance No. _____ (2026 Series) Page 50 O ______ Table 8-4: Density Bonus for Percentage of Very Low- Income Dedicated Units Percentage Very Low- Income Units Percentage Density Bonus 5 20 6 22.5 7 25 8 27.5 9 30 10 32.5 11 35 12 38.75 13 42.5 14 46.25 15 50 F. G. Twenty Percent Senior Citizen Housing Development Dedication. When a developer agrees to construct a senior citizen housing development, or mobile home park that limits residency based on age requirements for housing for older persons, the director shall grant the developer, upon the developer’s request, a density bonus; the density bonus shall be twenty percent of the number of senior housing units. Page 240 of 412 Ordinance No. _____ (2026 Series) Page 51 O ______ G. H. Ten Percent Common Interest Development for Moderate-Income Dedication. If a developer agrees to construct at least ten percent of the total dwelling units in a common interest development for persons or families of moderate income, provided that all units in the development are offered to the public for purchase, the director shall grant the developer, upon the developer’s request, a density bonus; the density bonus shall be calculated as follows: Table 8-5: Density Bonus for Percentage of Moderate- Income Dedicated Units Percentage Moderate- Income Units Percentage Density Bonus 10 5 11 6 12 7 13 8 14 9 15 10 16 11 17 12 18 13 19 14 20 15 Page 241 of 412 Ordinance No. _____ (2026 Series) Page 52 O ______ Table 8-5: Density Bonus for Percentage of Moderate- Income Dedicated Units Percentage Moderate- Income Units Percentage Density Bonus 21 16 22 17 23 18 24 19 25 20 26 21 27 22 28 23 29 24 30 25 31 26 32 27 33 28 34 29 Page 242 of 412 Ordinance No. _____ (2026 Series) Page 53 O ______ Table 8-5: Density Bonus for Percentage of Moderate- Income Dedicated Units Percentage Moderate- Income Units Percentage Density Bonus 35 30 36 31 37 32 38 33 39 34 40 35 41 38.75 42 42.5 43 46.25 44 50 H. I. Land Donation Dedication. If a developer for a tentative subdivision map, parcel map, or other residential development approval donates land to the city for affordable housing in accordance with this chapter and the provisions set forth in Government Code Sections 65915 through 65918, the applicant shall be entitled to a fifteen percent increase above the otherwise maximum allowable residential density for the entire development. The director shall grant the applicant, upon the applicant’s request, a density bonus; the density bonus shall be calculated as follows: Page 243 of 412 Ordinance No. _____ (2026 Series) Page 54 O ______ Table 8-6: Density Bonus for Land Donation Dedication for Affordable Housing Percentage Very Low- Income Units Percentage Density Bonus 10 15 11 16 12 17 13 18 14 19 15 20 16 21 17 22 18 23 19 24 20 25 21 26 22 27 23 28 Page 244 of 412 Ordinance No. _____ (2026 Series) Page 55 O ______ Table 8-6: Density Bonus for Land Donation Dedication for Affordable Housing Percentage Very Low- Income Units Percentage Density Bonus 24 29 25 30 26 31 27 32 28 33 29 34 30 35 I. J. Housing for Transitional Foster Youth, Disabled Veterans, and Homeless Persons. If a developer agrees to construct as least ten percent of the total dwelling units in a housing development for transitional foster youth, as defined in Education Code Section 66025.9, or for disabled veterans, as defined in Government Code Section 18451, or for homeless persons, as defined in the Federal McKinney-Vento Homeless Assistance Act, the director shall grant the developer, upon the developer’s request, a density bonus of twenty percent. The units shall be subject to a recorded affordability restriction of fifty-five years and shall be provided at the same affordability level as very low-income units. J. K. An applicant may elect to accept a lesser percentage of density bonus. K. L. Parking Requirements. 1. Upon the request of the developer, parking ratios of a development meeting the criteria of this section, inclusive of handicapped and guest parking, shall be as follows: Page 245 of 412 Ordinance No. _____ (2026 Series) Page 56 O ______ a. Studio to one bedroom: one on-site parking space per unit. b. Two to three bedrooms: two on-site parking spaces per unit. c. Four or more bedrooms: two and one-half parking spaces per unit. d. Senior housing: 0.5 spaces per bedroom. 2. Housing developments occupied exclusively by extremely low, very low, or low income households, as defined by the state, may provide one car and one bicycle space per dwelling unit. 3. If the total number of parking spaces required for a development is other than a whole number, the number shall be rounded up to the next whole number. 4. For purposes of this section, a development may provide on-site parking through tandem or uncovered parking, but not through on-street parking. 5. An applicant may request additional parking incentives or concessions beyond those provided in this section. (Ord. 1719 § 3, 2022; Ord. 1705 §§ 80—83, 2021; Ord. 1657 § 22, 2019; Ord. 1650 § 3 (Exh. B), 2018) SECTION 18. Title 17 ZONING REGULATIONS: Section 17.156.004 A definitions is hereby amended as follows: 17.156.004 A definitions. Accessory Dwelling Unit (ADU). An attached or detached dwelling unit that is no more than one thousand two hundred square feet in size, provides complete independent living facilities for one or more persons, and is located on a lot with a proposed or existing primary residence. An ADU includes permanent provisions for living, sleeping, eating, cooking and sanitation on the same lot as a single-family or multifamily structure is or will be situated. An ADU may be structured as one efficiency unit, as defined in Health and Safety Code Section 17958.1, and/or a manufactured home, as defined in Health and Safety Code Section 18007, among other formats. An ADU is considered “attached” to a primary dwelling (existing or proposed) when the ADU structurally abuts and connects to a primary dwelling unit, sharing at least one wall with the unit to which it is attached. An ADU is considered “detached” when it does not share a common wall Page 246 of 412 Ordinance No. _____ (2026 Series) Page 57 O ______ with a primary dwelling. A detached ADU can stand alone or be attached to other accessory structures or ADUs. Accessory Use. See “Use, Accessory.” Adult Entertainment Businesses. See Section 17.86.030 (Adult Business Uses). Agricultural Accessory Structure. Incidental and accessory structures and uses located on the same site with a permitted agricultural use including farm offices, barns, stables, coops, tank houses, storage tanks, wind machines, windmills, silos and other farm outbuildings, private garages and carports, storehouses, garden structures, produce stands, greenhouses, recreation rooms, private swimming pools, and tennis courts for the use of the persons residing on the site. Airport. An area approved by the Federal Aviation Administration (FAA) for the take-off and landing of aircraft, which may include appurtenant areas for airport buildings, aircraft operations, and related facilities, aprons and taxiways, control towers, hangars, safety lights, navigation, and air traffic control facilities and structures. These may also include facilities for aircraft manufacturing, maintenance, repair, and reconditioning. Where approved, an airport may also include aircraft sales and dealerships, car rental establishments, gift shops, hotels and motels, personal services, restaurants and bars, tobacco and newsstands, and other similar commercial uses serving the air-traveling public and airport employees. Animal Care, Sales and Services. Animal Boarding/Kennels. The commercial provision of shelter and care for dogs, cats, other household animals, and horses (where allowed), including activities associated with such shelter and care (e.g., feeding, exercising, grooming, and incidental medical care) of four or more dogs four months of age or older, or four or more cats, except for dogs or cats in pet shops. Animal Grooming. The commercial provision of bathing and trimming services for dogs, cats, and other household animals permitted by the municipal code. Overnight boarding is not included with this use (see “Animal Boarding/Kennels”). Animal Retail Sales. The retail sales of household animals within an entirely enclosed building. These uses include grooming, if incidental to the retail use, but Page 247 of 412 Ordinance No. _____ (2026 Series) Page 58 O ______ specifically excludes boarding of animals other than those for sale (see “Animal Boarding/Kennels”). Veterinary Services, Large Animal. Veterinary services for livestock, farm animals, and other large animals. This classification allows twenty-four-hour accommodation of animals receiving medical services. Veterinary Services, Small Animal. Veterinary services for household pets. This classification allows twenty-four-hour accommodation of animals receiving medical services, but does not include kenneling of animals not receiving medical services (see “Animal Boarding/Kennels”). Animal Husbandry and Grazing. Raising and breeding of animals or production of animal products. Typical uses include grazing, ranching, dairy farming, poultry farming, beekeeping, and enclosed fisheries, but excludes slaughterhouses and feedlot operations. Does not include animal sales, boarding, and grooming (see “Animal Care, Sales and Services”). Auto Repair. See “Vehicle Repair and Service.” Auto Sales and Rental. See “Vehicle Repair and Service.” (Ord. 1705 § 91, 2021; Ord. 1679 § 4, 2020; Ord. 1650 § 3 (Exh. B), 2018) SECTION 19. 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 5th day of May, 2026, on the following vote: AYES: NOES: ABSENT: ___________________________ Mayor Erica A. Stewart ATTEST: _______________________ Teresa Purrington Page 248 of 412 Ordinance No. _____ (2026 Series) Page 59 O ______ 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 249 of 412 Page 250 of 412 RESOLUTION NO. PC-1118-26 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), TITLE 17 (ZONING REGULATIONS), AND TITLE 5 (LICENSES, PERMITS, AND REGULATIONS) OF THE MUNICIPAL CODE REGARDING ACCESSORY DWELLING UNITS, JUNIOR ACCESSORY DWELLING UNITS, URBAN LOT SPLITS, MOBILE HOMES, AND OTHER CLARIFICATIONS AND CHANGES TO REGULATIONS ASSOCIATED WITH HOUSING, WITH AN EXEMPTION FROM ENVIRONMENTAL REVIEW (CEQA) AS REPRESENTED IN THE STAFF REPORT AND ATTACHMENTS DATED APRIL 8, 2026 (CODE- 0149-2026) WHEREAS, on August 31, 2020, Governor Newsom approved AB 2782 implementing numerous changes to the Mobilehome Residency Law, primarily repealing an exemption to rent control measures for long-term mobile home leases; and WHEREAS, on October 10, 2025, Governor Newsom approved AB 1061 to allow minor urban lot splits on properties located in a historic district; and WHEREAS, the City of San Luis Obispo desires to update Title 16 (Subdivision Regulations) and Title 5 (Licenses, Permits, and Regulations) so that they may be consistent with current state law; and WHEREAS, a number of changes have been identified in order to clarify or change processes related to housing development to more efficiently implement policies and programs of the City of San Luis Obispo’s General Plan that are implemented through Title 17 (Zoning Regulations) and align with state housing law; 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 April 8, 2026, for the purpose of recommending various amendments to Title 16, Title 17, and Title 5 of the Municipal Code to ensure consistency with state law, as well as to clarify City standards and procedures; and WHEREAS, notice of said public hearing were made at the time and in the manner required by the law; and WHEREAS, the Planning Commission has duly considered all evidence, including the testimony of 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: Page 251 of 412 Planning Commission Resolution No. PC-1118-2026 CODE-0149-2026 (Citywide) Page 2 SECTION 1. Findings. Based upon all evidence, the Planning Commission makes the following findings: 1. The proposed amendments to Titles 16, 17, and 5 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, 17, and 5 are consistent with state law. SECTION 2. Environmental Determination. The proposed code amendments to Title 16, Title 17, and Title 5 of the Municipal Code have been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. 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. Individual discretionary developments will still be required to conduct environmental analyses as appropriate. The proposed code amendments pertaining to ADUs and JADUs are also exempt under Public Resourced Code Section 21080.17 that applies to local ordinances implementing state regulations 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), Title 17 (Zoning Regulations), and Title 5 (Licenses, Permits, and Regulations) of the City’s Municipal Code regarding accessory and junior accessory dwelling units, urban lot splits, mobile homes, and other clarifications and changes to regulations associated with housing, as set forth in Attachments B, C, and D. Upon motion of Commissioner Cooley, seconded by Commissioner Flores and on the following roll call vote: AYES: Commissioner Cooley, Commissioner Munoz-Morris, Commissioner Jorgenson, Commissioner Kahn, Commissioner Flores, Chair Houghton NOES: None REFRAIN: None ABSENT: Vice Chair Tolle Page 252 of 412 Planning Commission Resolution No. PC-1118-2026 CODE-0149-2026 (Citywide) Page 3 The foregoing resolution was passed and adopted this 8th day of April, 2026. _________ Tyler Corey, Secretary Planning Commission Page 253 of 412 Page 254 of 412 Amendments to Title 5 (Licenses, Permits, and Regulations),Title 16 (Subdivision Regulations), and Title 17 (Zoning Regulations) of the City’s Municipal Code (CODE-0149-2026) May 5, 2026 Recommendation Introduce a Draft Ordinance entitled: “An Ordinance of the City Council of the City of San Luis Obispo, California, Amending Title 16 (Subdivision Regulations), Title 17 (Zoning Regulations), and Title 5 (Licenses, Permits, and Regulations) of the Municipal Code regarding Accessory Dwelling Units, Junior Accessory Dwelling Units, Urban Lot Splits, Mobile Homes, and other Clarifications and Changes to Regulations Associated with Housing, with an Exemption from Environmental Review (CEQA).” General Plan Consistency 6th Cycle Housing Element The proposed amendments to Title 5, 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… Summary Proposed amendments would: •Incorporate new legislation regarding urban lot splits •Address inconsistencies between state law and the code •Remove barriers to housing development •Incorporate miscellaneous changes that address conflicts within the Municipal Code and other changes Accessory & Junior Accessory Dwelling Units Clarify height and setback limits for ADUs •Mirror state law – no substantial change to what’s already allowed Defer to underlying zone standard for maximum ADU height •Potentially increase ADU development in multifamily zones Remove provision regarding “two-step” to “one-step process” •Introduced in 2024 code update – can be interpreted as inconsistent with state law •Has not been utilized Accessory & Junior Accessory Dwelling Units Exceptions to Discretionary Review •If consistent with applicable standards, ADUs and JADUs are exempt from discretionary review “Attached” ADU v. “Detached” ADU •Adds language to definition to differentiate between attached and detached ADUs Lot Coverage Clarification •Per state law, the first 800 square feet of ADU building footprint is exempt from lot coverage requirements Minor Urban Lot Splits Assembly Bill 1061 now permits minor urban lot splits within historic districts •Minor urban lot splits are still prohibited on sites that are listed as historic resources (by either the state or city) •Minor urban lot splits are still prohibited if the alteration or demolition of a historic resource is required to facilitate the subdivision Staff proposes an amendment to the Subdivision Regulations to maintain consistency with state law Mobile Homes Per AB 2782, the City is no longer required to exclude long-term space leases from its mobile home park rent stabilization ordinance (SLOMC 5.44) •Per Council direction, staff propose an amendment to Ch. 5.44 to remove this exemption Staff identified a provision of SLOMC 5.44 regarding an exemption process for a section of this chapter that no longer exists •Staff proposes removal of this provision Density Bonus – Fractional Density SLOMC 17.140.040 does not specify whether to use fractional density units or “dwelling units per acre” when calculating density bonus units. •Allows an applicant to maximize the number of market-rate units they can while limiting the number of affordable units they must provide Staff proposes an amendment requiring the consistent use of either fractional density units or “dwelling units per acre” as provided in Density Bonus Law (Section 65915) when calculating density bonus units Miscellaneous Changes Homestay Permits •Proposed amendment to SLOMC 17.86.160 clarifying requirements that must be complied with on a continuous basis, not just upon application for a permit Accessory Structures •Proposed amendments to SLOMC 17.70.010 to update terms used and adjust or remove language that is inconsistent with state law •Removes requirement for a covenant agreement for an accessory structure Driveway Visibility •Adds a subsection to SLOMC 17.70.210 to mirror current Engineering Standard 7950 – prohibits structures that are three feet or taller within a specific site visibility zone at driveway approaches Miscellaneous Changes Use Permit Clarification for General Retail •Proposed amendment to Table 2-1 of SLOMC 17.10 that would mark General Retail as an allowed use in the C-N zone when the floor area is 2,000 square feet or less. Setback Clarification for Decks •Proposed amendment to SLOMC 17.70.170 to clarify that decks with a height of 30 inches or more are subject to side and rear setback requirements Recommendation Introduce a Draft Ordinance entitled: “An Ordinance of the City Council of the City of San Luis Obispo, California, Amending Title 16 (Subdivision Regulations), Title 17 (Zoning Regulations), and Title 5 (Licenses, Permits, and Regulations) of the Municipal Code regarding Accessory Dwelling Units, Junior Accessory Dwelling Units, Urban Lot Splits, Mobile Homes, and other Clarifications and Changes to Regulations Associated with Housing, with an Exemption from Environmental Review (CEQA).”