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HomeMy WebLinkAboutStaff Report 2303-1210CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, May 15, 2023 Council Chambers & Hybrid 5:30 PM     Agenda Item     14.PUBLIC HEARING/LEGISLATIVE: Adopt an Ordinance That Changes Palo Alto Municipal Code Chapters 18.04, 18.09, 18.10, 18.12, and 18.40 related to Accessory Dwelling Units and Accessory Structures. Environmental Assessment: Exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.17 and CEQA Guidelines sections 15061(b)(3), 15301, 15302 and 15305. 1 9 5 5 City Council Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: Planning and Development Services Meeting Date: May 15, 2023 Report #:2303-1210 TITLE PUBLIC HEARING/LEGISLATIVE: Adopt an Ordinance That Changes Palo Alto Municipal Code Chapters 18.04, 18.09, 18.10, 18.12, and 18.40 related to Accessory Dwelling Units and Accessory Structures. Environmental Assessment: Exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.17 and CEQA Guidelines sections 15061(b)(3), 15301, 15302 and 15305. Recommendation Staff recommends the City Council: 1. Adopt the attached Ordinance (Attachment A) amending Palo Alto Municipal Code Title 18 (Zoning) to amend regulations for Accessory Dwelling Units (ADUs), Junior Accessory Dwelling Units (JADUs), and Accessory Structures, including provision to respond to direction from the Department of Housing and Community Development (HCD). Background The Planning and Transportation Commission (PTC) recommends approval of the attached draft Ordinance (Attachment A). This ordinance updates various sections of Chapter 18 of the Palo Alto Municipal Code related to Accessory Dwelling Unit and Accessory Structure standards. The attached draft Ordinance (Attachment A) incorporates: •PTC-supported and recommended policies •Necessary revisions to address the State Housing and Community Development (HCD) department’s December 12, 2022 letter. The staff reports, meeting minutes, and videos for those hearings can be found online(1)(2). 1 https://www.cityofpaloalto.org/Departments/Planning-Development-Services/Planning-and-Transportation- Commission-PTC/Previous-PTC-Agendas-Minutes 2021/2 Staff reports, meeting minutes, and videos. Select the Agenda Item on the following dates: February 10, February 24, and May 26, for 2021. July 13, August 10, and September 28, 2022 for 2022. 2 https://www.cityofpaloalto.org/Departments/Planning-Development-Services/Planning-and-Transportation- Commission-PTC/Current-PTC-Agendas-Minutes 2023 Staff reports, meeting minutes, and videos. Select the Agenda Item on the following dates: February 22, March 8, 2023. 1 9 5 5 Discussion The staff report touches on the following subjects related to changes to Chapter 18: A. Staff Response to Housing and Community Development (HCD) Letter i. Application of Daylight Planes for Table 2 Units ii. Calculating Floor Area for ADUs/JADUs iii. Noise Producing Equipment Location Standards iv. Entryways for ADUs/JADUs v. Parking Attached to ADUs Contributing to the Unit’s Maximum Size B. Proposed Areas for Regulatory Change i. Basements ii. Noise Producing Equipment Location Standards iii. Parking Provided for an Attached ADU iv. Privacy v. Retracting Prior Deed Restrictions vi. Allowing Reconstruction/Expansion of Non-Conforming Structures vii. Removing the “Existing” Garage/Carport Requirement for Conversions viii.Conversion/Relocation of Uncovered Parking Stalls ix. Alignment of ADU and Tree Ordinances C. Corner Lot Incentives to Maintain Street-side Setback on Corner Lots D. Incentives for Affordable ADUs E. Code Modifications to Definitions, Sanitation Facilities, and Accessory Structures i. Clarifying How FAR/Lot Coverage is Calculated with Attached Units ii. Translating Second Units through Demolition/Reconstruction iii. Clarification on JADU Construction and Sanitation Facilities iv. Calculating Gross Floor Area v. Clarification on Accessory Buildings with Covered Porches or Patios (>120 sf) vi. Allowed Accessory Structure Fixtures (PAMC 18.10, 18.12, 18.040) A. Staff Response to HCD Letter On December 23, 2021, the City received a letter from HCD regarding the ordinance the City adopted in November 2020 (Attachment B). HCD raised 12 issues with the City’s ordinance which they thought conflicted with state law or required further clarification in the ordinance. On February 3, 2022, City staff met with HCD staff to discuss HCD’s comments and concerns as well as to explain the structure and intent of the language incorporated into the City’s ordinance. Following that discussion, City staff provided detailed responses to the HCD letter, indicating areas where the City would incorporate changes and where staff required clarification (Attachment C). On December 21, 2022, the City received a follow up letter from HCD responding to the City’s comments (Attachment D). Five items were included in the revised HCD letter. On January 13, 2023, City staff met with HCD staff to discuss HCD’s comments and concerns again. City staff 1 9 5 5 provided detailed responses to the HCD letter on the same day, indicating areas where the City would incorporate changes to its ordinance (Attachment E). The five items from HCD’s 2022 letter are summarized below: i. Application of Daylight Planes for Table 2 Units Section 18.09.040 of the City’s zoning ordinance identifies that daylight planes can be applied to ADUs for which the City has some regulatory authority (sometimes referred to as “Table 2 units”). This was based on staff’s interpretation of the framework and language that was adopted by State law in 2020. Staff’s interpretation of state law was that requiring a Daylight Plane did not prohibit units from achieving the 16-foot height guaranteed by State law. The Daylight Plane did alter the massing of the unit, to ensure ADUs would more appropriately fit into the context of Palo Alto neighborhoods and reduce impacts on adjacent properties. In their response, HCD staff appeared to state that the nuance staff was trying to assert between total height allowed for an ADU and allowing for a 16-foot-tall structure at a four-foot setback was inaccurate. HCD staff asserted that the City could not apply daylight planes to detached ADUs that prohibit them from achieving these minimum height standards. HCD further clarified that Senate Bill 897 modified the language of the previous statute to allow for taller attached and detached ADUs that met certain provisions. In response to this direction, staff has removed the ADU-specific daylight plane requirement from PAMC 18.09.040 for detached ADUs and JADUs. Based on the language adopted under SB 897, the State allows for attached ADUs to be built in conformance with the height requirements of the main house in the local zoning ordinance. This would mean that for attached ADUs, daylight planes still apply, and Table 2 is this referenced code section has been updated to reflect this change. ii. Calculating Floor Area for ADUs/JADUs The City’s 2020 ordinance provided a “bonus” floor area and lot coverage exemption for ADUs and JADUs to incentivize the development of these units and provided staff a clear term to convey development rights to homeowners under PAMC 18.09.040, Table 2. The City also updated its ordinance in 2020 to allow for JADUs to be expansions of existing or proposed single-family homes, rather than limiting them to only occur as conversions of an existing home, as required by the State. The purpose was to eliminate a multi-stepped process requiring a portion of a house to first be built and then receive a new permit to convert it to a JADU. Additionally, the underlying house would be limited by its existing floor area and lot coverage restrictions which would continue to disincentivize the creation of JADUs as a homeowner would need to choose to sacrifice the allowable square footage of their home to build a JADU. In the HCD staff’s letter, they contest that JADUs do not count towards a property’s floor area or lot coverage limit as they can only exist within the buildable area of an existing or proposed single-family home. Without expanding the allowances for the primary dwelling to have more floor area, the City cannot allow JADUs to be additions, nor allow a certain amount to be 1 9 5 5 considered exempt from floor area and lot coverage. When staff met with HCD staff and highlighted the way the City uses terms such as “floor area” and “lot coverage” to convey development rights to homeowners, HCD staff agreed that the issue between their understanding of Palo Alto’s local terms and the State’s approach to implementing ADU/JADU law may be an issue of semantics, with respect to this specific issue, because they were supportive of what the City was doing to encourage JADU development. Regardless, HCD reiterated its position on that state law only allows for JADUs to occur within existing or proposed single-family homes and that Palo Alto would need to provide more floor area or lot coverage for the primary home to allow the JADU to benefit from the City’s “bonus” provisions. The City’s existing laws are far more generous the state legislation in this regard and staff does not believe that additional clarification is needed in the City’s ordinance. Staff will continue to meet with HCD staff as needed to explain how this provision furthers the state’s interest in housing production and complies with state law. to ensure that the policies it has been enacting since 2020 are consistent with the State law. iii. Noise Producing Equipment Location Standards In concert with State law, the City updated its 2020 ordinance to allow for reduced setbacks for ADUs. As an incentive to encourage more units to be built, and in line with what is noted in the response above, the City also allowed JADUs and noise-producing producing equipment to have a four-foot setback from the rear and side property lines. HCD repeated its concern that the City was inappropriately applying setback standards to JADUs that should not exist given that JADUs are only supposed to exist within the existing or proposed walls of a single-family home. From HCD’s perspective, for a JADU to have a four-foot setback the City would need to update its zoning code to allow the primary dwelling unit to have a four-foot setback. While it may be technically more accurate to call this four-foot setback a “setback for the new construction portion of a single-family home that is dedicated to a JADU,” staff believe it is easier for applicants and staff to refer to this as a “setback for a new construction JADU.” For noise-producing equipment, the City has already updated its code to allow for reduced allowances when that equipment serves an ADU or JADU. As a result, staff does not believe additional modifications to the City’s ordinance are necessary to address this comment. iv. Entryways for ADUs/JADUs Since the City updated its ordinance in 2017 to allow for attached ADU/JADUs, the Palo Alto Municipal Code requires attached units to have a doorway that faces toward a different property line than the doorway for the primary dwelling unit. The only exceptions allowed were when an attached unit was on a corner lot, or the unit was in the rear half of the lot. In 2020, staff updated this provision to also require that any exterior staircase to second-floor units face towards and interior side or rear yard. The purpose of this design requirement was to ensure that the primary façade did not appear cluttered or visually confusing with entries to the building(s). 1 9 5 5 HCD contends that this policy could have the potential to unduly restrict ADU/JADU development by adding additional cost and site development constraints to homeowners. Since 2017, after reviewing at least 500 applications for ADU/JADUs, staff has yet to encounter a scenario where this has prevented a unit from being developed on a property. Regardless, HCD states that the City must either eliminate this provision or add language which states that this provision applies “when feasible”. Staff is concerned that adding “when feasible” to this provision has no clear definition in the City’s municipal code nor state law and will likely create an un-enforceable standard when applicants don’t want to comply with it. As a result, staff recommends removing the provision altogether if HCD believes that the City’s ordinance will not comply with state law because of this rule. v. Parking Attached to ADUs Contributing to the Unit’s Maximum Size In HCD’s recent letter, the HCD staff reiterated their previous position that garages attached to ADUs should not contribute to the maximum size or floor area of the ADU. This was agreed to by the PTC and has been incorporated into the attached ordinance. Staff met with the PTC in July, August, and September of 2022 to discuss code changes to Chapter 18 as well as February and March of 2023 to discuss the items raised in the HCD letters. After receiving additional direction from PTC, staff recommends proceeding with the updated draft ordinance in Attachment A. B. Proposed Areas for Regulatory Change The following changes are only in relation to ADU/JADUs that exceed the minimum standards that the City must approve under state law (“Table 2 units”): i. Basements On July 13 and August 10, 2022, the PTC indicated support for allowing basements underneath ADU/JADUs. In that discussion, the PTC highlighted the following to incorporate into a draft ordinance: •The basement cannot encroach into the four-foot ADU/JADU setback, unless a basement already exists in that area. In this case, the non-conforming area may remain but cannot be expanded, consistent with other non-conforming provision of City and State law. •New ADU/JADU lightwells cannot be located closer than four feet to a property line. All lightwells would need to be screened from view from public rights of way using landscaping, consistent with the City’s current requirements for lightwells associate with the main house. •A new basement must not negatively impact tree roots on adjacent lots such that it would cause the tree to be removed or fail. Protected trees would continue to be subject to the City’s tree regulations. Urban Forestry staff identified that roughly 25% of a tree’s protection zone could be affected without causing it to fail, on a case-by-case basis. 1 9 5 5 •All useable3 basement space for ADU/JADUs shall count towards the unit’s gross floor area. The PTC did not support requiring basements to be fully subterranean and were willing to allow any variation of the diagram below provided that all useable basement area contribute to the unit’s allowable square footage. Source: ATTACHMENT C On February 22 and March 8, 2023, staff noted additional basement provisions for the PTC to consider. Basements in Palo Alto typically do not count towards the floor area, lot coverage, or maximum house size limitations for single-family homes. Basements are only allowed to be built underneath the footprint of the first floor. As a result, the size for a basement is inherently tied to the primary home’s development potential. This can range from 2,550 sf (for a typical 6,000 sf lot) or less and up to the City’s maximum house size (6,000 sf in the R1 zones). As it is currently written, the City’s code does not distinguish between the footprint of a primary home or the footprint of a primary home and an attached second unit for the purposes of determining the maximum basement size. With new City and state laws, attached ADUs and JADUs can increase the size of a primary home’s footprint by 500 sf or 800 sf, respectively. This creates an unintended consequence where a homeowner could build the maximum size house possible on their lot, build an attached ADU and/or JADU, and propose a basement for the primary home which extends underneath the attached second unit (right image below). Where a primary unit and basement would normally be limited to a maximum house size of 6,000 sf each, there could be scenarios where a primary unit is 6,000 sf and a basement that serves it is up to 6,800 sf. Staff’s understanding of the intent behind the existing rule is to not allow basements to expand beyond the footprint of the primary dwelling unit, though it does not make this distinction clear. Additionally, the purpose of the bonus square footage for ADUs and JADUs is to encourage the development of additional housing units, not to build an attached second unit and propose/expand a basement that serves the primary home underneath it. During the February 22 PTC hearing, the Commissioners seemed open to including language to address this issue into 3 Habitable basement is when there is at least seven feet distance between basement floor and basement ceiling 1 9 5 5 the draft ordinance and recommend on March 8 to include the suggested language to Chapter 18.10.090(a) and 18.12.090(a) as shown under Sections 10 and 11 in the draft ordinance. ii. Noise Producing Equipment Location Standards The draft ordinance reduces the current standard for placement of all noise-producing equipment associated with an ADU/JADU along the interior side and rear property lines. This would allow additional development flexibility for homeowners. The current standard requires noise-producing equipment to follow a 4-foot setback to the property line for second units. The proposed ordinance would allow this equipment to be located between the property line and 4 feet under circumstances, including compliance with the City’s noise ordinance. Most municipalities and other agencies specify noise limits in units of dBA, which is intended to mimic the reduced receptivity of the human ear to Sound Pressure (“LP”) at particularly low or high frequencies. Sound attenuates over distance. Sound waves are an ever-expanding circle, moving away from the sound source. The wave starts with an initial amount of energy. That amount of energy is gradually spread out over a wider and wider area as the wave expands.4 The attenuation of a sound wave's intensity follows an inverse square law. In other words, the observed intensity of a sound wave decreases depending on the square of the observer's distance from the source. The intensity of a sound wave will decrease faster and faster the further it gets from the source. According to the inverse square law, it can be shown that for each doubling of distance from a point source, the sound pressure level decreases by approximately six dBA.5 Given that most noise-producing equipment that has been provided for ADU/JADU applications tends to be at or lower than 66 dBA, each successive doubling of distance would bring a unit further into compliance with the City’s Noise Ordinance. 4 Sound Attenuation – Inverse Square Law: https://bit.ly/3Uc6V9t 5 Attenuation of Sound: https://bit.ly/3dgL54g 1 9 5 5 The PTC also asked staff to confirm that reduced setbacks for noise-producing equipment would not conflict with ingress/egress requirements for the Fire Department. The Fire Department noted that noise-producing equipment can impact ingress/egress requirements but also noted that an ADU/JADU can be designed in a way that resolves this issue. In essence, the design of the building is flexible such that locating noise-producing equipment within a zero-to-four-foot setback would not create a scenario that is impossible to design around and still provide adequate life safety access to the unit. With this additional information, the PTC supported staff’s proposed language changes to the placement of noise-producing equipment for ADU/JADUs. iii. Parking Provided for an Attached ADU PTC considered whether or not an ADU can have an attached garage. Though there is potential for illegal conversion of a garage to living space without proper permitting, the PTC did not see these concerns as any more severe than for other attached garage structures. The PTC directed staff to modify PAMC 18.09.040(iv) (now 18.09.040(k)(v)) to remove the inclusion of an attached garage counting towards a second unit’s maximum size. This decision occurred prior to HCD’s December 2022 letter indicating the City needed to modify this policy. iv. Privacy The PTC indicated that the City needs to maintain stringent privacy measures for ADU/JADUs as they can be placed closer to property lines than a typical house. The PTC wanted to focus the City’s current policies to limit impacts from windows on the first and second floor of a second unit. During the July 13, 2022 PTC meeting, two commissioners asked how to best implement the City’s privacy measures for Table 2 units. They asked whether the City should adopt more stringent privacy requirements for windows facing adjacent properties, based on a height standard rather than simply requiring privacy when there is a second floor or equivalent space, as the code currently requires. At the time, the PTC did not adopt a motion to change the existing policy, other than to clarify that these policies only applied when a second-floor level was proposed for an ADU. Since then, staff have been receiving more complaints from neighbors regarding privacy impacts from larger ADUs built close to their property lines, as State law now allows. Staff noted on February 22, 2023 a desire to revisit this discussion with the PTC. The below images are provided to illustrate the issue of views from two different floor levels: 1 9 5 5 View with standard finished floor 1.5 ft above grade View if a finished floor were 2.5 ft above grade There are no privacy measures in place for one-story, single-family homes with taller first-floor levels, and only building permits are required for one-story homes. However, new primary homes in the R1 zones are generally located at least 6 to 8 feet from an interior side property line, and at least 20 feet from a rear property line. Privacy measures cannot be imposed on ADU or JADU buildings that are set back four feet from an interior property line, for units that qualify under PAMC 18.09.030 (aka Table 1). This is true also for units that do not have a second-floor level, even when the ADU height is 16 feet or more. The City can introduce privacy measures for ADUs and JADUs with higher first-floor levels placed at four feet from an interior property line into Chapter 18.09; however, staff can only apply such privacy measures to units that fall under PAMC 18.09.040 (aka Table 2 units). During the February 22nd PTC hearing, the Commissioners supported staff’s proposal to present additional privacy regulations for ADUs under PAMC 18.09.040(k)(2). As a result, staff updated section 18.09.040(k)(2) in the attached draft ordinance, to incorporate the following provisions: •Clarification that privacy measures will only be applied when there are second floors, lofts, or equivalent spaces. •Egress windows shall not be located on walls which face adjacent property lines, when feasible. When infeasible, these windows shall utilize opaque glazing on the whole window. •If the first finished floor of an ADU or JADU is two feet or more above grade, then first floor windows shall include the following: a. Non-egress, operable windows facing an adjacent interior property line shall have a windowsill(s) that start five feet above the first finished floor for the unit; b. Non-egress, non-operable windows facing an adjacent interior property line shall have the lower half of window(s) (minimum of five feet above the first finished floor) utilize opaque glazing. 1 9 5 5 •Where feasible, requiring the use of skylights in bathrooms and other spaces where windows could be considered optional. •No exterior lighting mounted above seven feet and lighting must be directed downwards to prevent light spillover onto adjacent properties. These added measures would provide guidance for applicants and additional protections for neighbors from the potential privacy impacts from new second units. v. Retracting Prior Deed Restrictions The PTC directed staff to review the appropriate process to allow homeowners to remove the prior owner-occupancy deed restrictions placed on units built prior to 2020. Removing these restrictions would allow residents who built ADUs before 2022 to rent a primary dwelling unit and ADU separately. In order to remove deed restrictions that the City has already approved for ADUs, staff will create a new document that can be recorded with the Santa Clara County Recorder’s Office to supersede the prior deed restriction noting that the restrictions no longer apply. vi. Allowing Reconstruction/Expansion of Non-Conforming Structures The PTC indicated support for allowing owners to expand legal, non-conforming walls in order to allow a converted structure to provide a better living unit and better meet insulation and energy requirements for modern habitable buildings. Several commissioners also expressed concerns with how close some non-conforming buildings can be to adjacent property lines and fences and how conflicts can come up when work needs to occur in those spaces. In the draft ordinance, staff sought to address this concern by limiting when and where a non-conforming wall can be expanded. Specifically, the proposed language in section 18.09.060(c)(ii) states that walls that do not currently have a one-foot separation from the property line would not be able to benefit from this provision. For walls that currently have this separation, they could be expanded up to a maximum of six inches in width depending on whether or not they would encroach closer than one foot to a property line. Staff believes this captures the support, and concerns, raised by the PTC. The PTC also supported allowing legal, non-conforming structures to increase in height. Section 18.09.060(c)(i) indicates that an applicant may modify the height of a legal, non-conforming structure by up to 12 inches or to a maximum of 12 feet, whichever is less. Staff anticipates that most owners that would seek to utilize this process will most likely be able to use the full one-foot extension. 1 9 5 5 However, it would be important to limit how tall these structures can be given their closer proximity to adjacent neighbors. For example, if an existing structure was 11 feet and two inches tall, then the height could be increased by only 10 inches, rather than one foot. This section also would require retention of the existing roof line and style. For example, a structure with a shed roof cannot be converted to a gabled roof. Staff believes that this will help to mitigate potential massing and aesthetic impacts upon adjacent neighbors. Neighbors will already be familiar with the existing structure’s outline, albeit slightly taller and closer to their property (see example roofline images below). Source: Google Images vii. Removing the “Existing” Garage/Carport Requirement for Conversions Staff included in the draft ordinance section 18.09.060(d), which follows the PTC’s direction to eliminate the need to have an existing garage/carport when applying to convert a garage to an ADU/JADU when a new home is also proposed on site. This would eliminate the current two-step process that prevents homeowners from proposing a new home and ADU with no covered parking on site. viii.Conversion/Relocation of Uncovered Parking Stalls The City’s current Zoning Code requires that single-family homes include two parking spaces on site, both of which need to be located beyond the front yard setback, and one of which must be a covered parking space. Over time, staff has recognized a disconnect between requirements for single-car garages with 1 9 5 5 adjacent uncovered parking spaces converted to an ADU, and two-car garages converted to an ADU. Namely, PAMC Chapter 18.09 and state law do not require the replacement of covered parking spaces lost through the conversion of a garage to an ADU, but also do not provide direction on what should occur for uncovered parking spaces. Staff’s current application of the law reflects an interpretation that there is no such relaxed replacement allowance for uncovered parking spaces and such spaces must comply with the typical siting requirements – i.e., that these spaces must be placed on site and beyond the front yard setback. Below is an example to demonstrate this issue: An owner who wants to eliminate the uncovered parking stall in the left-most example above would first need to expand a garage within the blue area to accommodate two, 10-foot wide by 20-foot-deep parking stalls. Once a final occupancy permit is issued for that building permit, the owner could then file another permit to convert the new garage into an ADU. This creates a two- step process that adds time, money, and constraints to developing an ADU whereas, under a different existing configuration, an owner could already take advantage of the relaxed conversion allowances. The City currently allows JADUs under PAMC 18.09.040(k) to replace parking lost through garage conversions in the driveway as uncovered spaces. On February 22, 2023, Commissioners expressed support for eliminating this two- step process. The attached draft ordinance captures this new policy under PAMC 18.09.040(l)(2). ix. Alignment of ADU and Tree Ordinances Following the PTC review of the ADU ordinance, staff engaged with several applicants seeking to build ADUs but struggling with the Tree Disclosure Statement required in the new Tree Ordinance. The new Tree Ordinance, adopted in June 2022, requires all applicants to complete a Tree Disclosure Statement prepared by a licensed arborist. In reviewing this requirement as it applies to ADUs, staff determined that the licensed arborist requirement could represent an undue burden on ADU construction. Accordingly, for projects that solely involve an ADU, the attached ordinance proposes to permit a property owner, rather than an arborist, complete the Tree Disclosure Statement. 1 9 5 5 C. Corner Lot Incentives Corner lots can be difficult to develop due to their more limiting setback requirements. Draft ordinance section 18.09.040(j) captures the PTC’s direction to allow reduced setbacks for the primary house when ADU/JADUs are built in tandem. The draft ordinance allows for a primary home to be placed at a 10-foot street-side setback and a 16-foot front yard setback, provided the ADU/JADU follows these same setbacks. The PTC felt that this will serve as a strong incentive for homeowners on a corner lot to build an ADU at a greater setback than allowed by state law which will help to maintain the City’s desired aesthetic character for single-family neighborhoods. Staff noted to the PTC that this policy may create the opportunity for a homeowner to abuse the City’s provisions through a two-step process given the authority state law provides to homeowners when building ADU/JADUs. That is, an owner could build a house and ADU at a 10- foot setback, then after the final occupancy permit is issued, propose an ADU that conforms with state law requirements. While that would be a significant financial burden to overcome for a homeowner and is not likely, it is not an impossible situation to occur later at the site or if the property were sold to another individual whose interests did not align with the City’s policy. Staff suggested to the PTC that a deed restriction could be enacted on the property which serves as an agreement between the City and homeowner which prevents this from occurring; however, it could be fraught with legal and practical implementation challenges should a current or future homeowner contest it conflicts with state law. As a result, the PTC suggested that no restriction be recorded against the property and floated the question to City Council to decide whether this concern would be worthwhile to protect against. D. Incentives for Affordable ADUs i. Exempting Affordable Units from Impact Fees and Plan Review Fees On September 28, 2022, the PTC recommended that the Council adopt a pilot program for deed restricted, affordable ADUs. Under this pilot program, property owners who agreed to deed restrict an ADU to rents affordable to households earning no more than 80% of area median income would have development impact fees waived, up to $50,000 per unit. The pilot program would be limited to a total of $400,000 of waived fees per year. Staff indicated that, prior to bringing the recommendation to Council, staff would discuss administrative details like income certification, tenant selection, and monitoring with Alta Housing, the City’s affordable housing administrator. Early feedback from Alta Housing included several reservations about an affordable ADU program as recommended by the PTC. Alta’s concerns were as follows: •The eight-year period is shorter than the typical length that affordable housing tenants remain in one location. This raises additional concerns about transition when the affordability restriction is over. •In larger projects, tenants who exceed income thresholds can often convert to a market rate unit and remain in the same development. That won't be possible for ADUs. 1 9 5 5 •The program may result in fair housing/discrimination issues if homeowners are responsible for choosing tenants. Personality or preferred tenant clashes could create additional administrative burden. •Homeowners are typically not in the business of being landlords. Significant outreach is needed to educate homeowners on what they would be signing up for (vis-à-vis renter rights, fair housing laws, relocation compensation if work needs to occur on-site and tenants must move out, etc.). In short, it appears that the program would result in an additional administrative burden compared to affordable units typically administered by Alta Housing. Currently, when Alta Housing works with a private property owner, they typically administer multiple units at a single site and these units are deed restricted for terms ranging from 55 to 99 years. This limits the amount of onboarding and education required per unit. By contrast, an affordable ADU program would involve a different property owner for each unit, and these units would only participate for a period of 8 years. In addition, there are currently several affordable housing projects in Palo Alto, which have already sought or may seek support from the City’s affordable housing funds. Projects at various stages of the process include 231 Grant, 525 E Charleston, Palo Alto Homekey, Buena Vista Mobile Home Park, and 3001 El Camino Real. In addition, some existing affordable housing projects have recently reached out to the City to inquire about support for unexpected expenses. As a result, staff believe there are ample other opportunities for the City to support affordable housing, which may provide greater overall benefit than an affordable ADU program. With this additional information, the PTC recommended at the February 22, 2023 hearing to not proceed with this program. E. Code Modifications to Definitions, Sanitation Facilities, and Accessory Structures The PTC voted unanimously to approve staff’s recommended changes to the following sections of the City’s municipal code. i. Clarifying How FAR/Lot Coverage is Calculated with Attached Units The City provided a uniform bonus for ADU/JADU development in accordance with state law requirements. As a result, there have been challenges presented regarding how to calculate floor area for the main home versus the floor area ratios (FAR) with respect to attached units. Overall, the City’s definitions guide how staff calculates these allowed ratios on residential and commercial lots. However, when it comes to an attached ADU/JADU in an RE, R-1, R-2, and RMD district, the code states that: “Gross floor area means the total covered area of all floors of a main structure and accessory structures greater than one hundred and twenty square feet in area, including covered parking and stairways, measured to the outside of stud walls” (PAMC 18.04.030(a)(65)(C)). When there is an attached unit, there is a shared wall between the two structures and it is unclear to applicants and staff how this area should be counted between the units as it is not technically an “exterior wall” (see image below). If the shared wall spans a large portion of the two units, it can add up to a significant amount of square feet. 1 9 5 5 Staff suggests adding language in sections 18.09.030(c) as well as 18.09.040(e) that states that FAR, Lot Coverage, and Maximum House size should be related to the exterior stud of the primary unit’s shared wall. Staff believes this mirrors the existing policy in PAMC 18.04.030(a)(65)(C) and in the event a second unit is built, this would provide clear direction on how to calculate these spaces. The PTC supported staff’s approach and voted to incorporate this policy in the draft ordinance as they felt it would be more accommodating for ADU/JADU development. Source: Kohler Architects ii. Relocating Second Units through Demolition/Reconstruction PAMC section 18.09.030(k) identifies that replacement parking is no longer required when a garage or carport are demolished “in conjunction with the construction of an ADU.” Staff understands this to mean that an applicant may choose to demolish a structure and replace it “in-kind”, as noted in PAMC section 18.09.030(h), or they may relocate it elsewhere on the property and still not replace parking on site. Demolishing and replacing an accessory structure in kind to create an ADU was protected in the City’s ordinance prior to 2020 when the updated state law incorporated a similar framework. However, state law and the City’s ordinance were not entirely specific on what may happen should an applicant seek to relocate a structure elsewhere on site and what policies (either Table 1 or 2) would apply. 1 9 5 5 Generally, staff and applicants have agreed that one would not be able to relocate a legal, non- conforming structure from one side of a property to another and establish a new non-conforming situation on site. Staff propose to clearly codify this practice and understanding with the suggested language in 18.09.040(j)(v). This language directly captures an instance like the example below and succinctly identifies that an applicant must follow the regulations in Table 2. Staff believes this will clarify that any type of construction that occurs in this manner must follow the City’s local regulations outlined in Table 2 rather than the state policies outlined in Table 1. The PTC supported staff’s interpretation and application of this rule in the draft ordinance. Source: FG Architects iii. Clarification on Type of JADU Construction and Sanitation Facilities Staff has received multiple questions from applicants and the public since the adoption of the City’s ordinance last year as to whether JADUs can be developed through new construction or only through the conversion of existing spaces. PAMC 18.09.050(a) currently states: “A junior accessory dwelling unit shall be created within the walls of an existing or proposed primary dwelling.” Through the implementation of the City’s ordinance, the intention was to encourage the creation of more JADUs by allowing JADUs to also benefit from the bonus FAR/Lot Coverage/House Size provisions as well as allowing attached garages to be converted to JADUs and benefit from the replacement parking policies identified in 18.09.040(k). With this understanding, staff indicated to applicants and the public that new construction involving the creation of a JADU would be in keeping with the intent behind the policies adopted by City Council, rather than limiting a JADU to existing within the walls of an existing or new structure. Staff suggests modifying section 18.09.050(a) to align with staff’s implementation of the City’s ordinance and provide clarity to the public. Additionally, staff has included a new policy that seeks to clarify an already established practice for JADUs that was not apparent in the previously adopted ordinance. Section 18.09.050(b)(iii) seeks to clarify that sanitation facilities are required for JADUs but that they may be shared with 1 9 5 5 the primary unit. This policy has been in place since the establishment of JADUs in the 2017 state and City codes. The practice, however, was not codified. Adding this clarification will provide an easier reference point for staff, the public, and applicants as it relates to the City’s requirements for sanitation facilities for JADUs. iv. Calculating Gross Floor Area Applicants have provided many ways of calculating floor area by representing it in whole numbers, to the tenths, hundredth, and thousandth decimal places. General mathematical principals indicate that expressing a number to a thousandth decimal or greater is technically more accurate; however, going beyond the thousands place is not necessarily appropriate when converting between inches and decimals, which often end in hundreds and thousandths decimal numbers (e.g. 4½ inches is expressed as 0.375, 11 inches is expressed as 0.92). Over time, staff has not established a consistent policy for how floor area should be captured to maintain consistency and accuracy of construction. This is especially important when certain “triggers” occur. Two such triggers are when a building exceeds its allowable floor area/lot coverage allowances, or when a second unit is subject to payment of development impact fees. Some applicants have proposed 749.99 square foot structures and successfully argued they are not be required to pay development impact fees. In speaking with the Chief Building Official, a contractor would not realistically build a 749.99 square feet structure; it would be built to 750 square feet or slightly larger, given the nature of the construction methods and materials available today. Staff believes the suggested language in 18.04.030(65)(E) of the draft ordinance would address these issues. It would set a clearer standard for how floor area needs to be expressed in block area diagrams on a plan set. It would also establish a clear and consistent policy for staff and applicants to implement when determining whether a project exceeds a trigger point, as described above. Any ADU equal to or greater than 749.995 square feet would be associated with payment of development impact fees. v. Clarification on Accessory Buildings with Covered Porches or Patios (>120 sf) In the last few years, there have been a greater number of proposals for 120 square foot accessory buildings with covered porches or patios. PAMC 18.04.030(C) identifies that accessory buildings which exceed 120 square feet in area are included in the overall gross floor area calculations for a site. The use of the term “square feet” is non-specific to the terms “floor area” and “lot coverage” staff commonly use to determine size allowances. The code requires that any addition to this structure beyond 120 square feet immediately triggers an accessory building to count as floor area. This is regardless of whether that specific addition would traditionally count as lot coverage based on its design. Based on this, an accessory building with a substantially open covered porch or patio would automatically count towards floor area for the site, even though these would be excluded from 1 9 5 5 floor area for the primary house if it is substantially open (see Attachment C for substantially open criteria). Source: Kohler Architects Due to this conflict, 120 square foot accessory buildings with covered porches or patios that are substantially open are currently only counted as lot coverage rather than floor area. This interpretation provides a consistent approach for including these spaces as floor area when they are not substantially open. Staff propose codifying this as an exclusion under the Low-Density Residential Exclusions portion of the Definitions (proposed as 18.04.030(a)(65)(D)(ix)). vi. Allowed Accessory Structure Fixtures (PAMC 18.10, 18.12, 18.040) As ADU/JADUs have become more commonplace applications due to relaxed regulations at the state and local level, staff has also recognized an increase in permits for accessory structures. Some of these structures have started including additional fixtures such as showers (indoor and outdoor), utility lines, washers/dryers, and other facilities that seek to provide the framework for a second unit to be created on site but without committing to creating one. PAMC 18.12 and 18.40 currently limit accessory structures to only two plumbing fixtures. Some districts, like the RE, R-2, and RMD districts, allow more fixtures for buildings that are less than 1 9 5 5 200 square feet or outside of setbacks for the property. As staff has typically relied on the building code’s definition of a plumbing fixture, it does not always capture fixtures such as a gas line or other appurtenance. Staff is frequently limited to negotiating with applicants to remove fixtures using vague comparisons of proposals to “something equivalent to an ADU/JADU” as the code does not give more clear direction. Staff is concerned this will encourage individuals to use an accessory building as a housing unit even when a structure is not designed for human habitation. Due to this, staff propose to better distinguish what are acceptable plumbing fixtures in accessory buildings. The purpose of this language is to target features that may lead to unsafe conditions for human habitation. Staff suggests limiting accessory buildings from having certain plumbing fixtures like a shower and/or bathtub. These will be more challenging and costly to place in a building than a sink and toilet. While approving this code change will make a significant number of previously permitted structures non-conforming, staff believes this will help to reduce the number of illegally constructed units going forward. ALTERNATIVE ACTIONS In addition to the recommended action, the City Council may: 1. Provide direction to make further modifications to the ordinance, or 2. Continue the hearing to a date (un)certain to enable staff to perform additional study. ENVIRONMENTAL REVIEW The adoption of the Ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.17 and CEQA Guidelines sections 15061(b)(3), 15301, 15302, and 15305, because of requirements related to accessory dwelling units as established in Government Code Section 65852.2, and these changes are also likely to result in few additional dwelling units dispersed throughout the City. As such, it can be seen with certainty that the proposed action will not have the potential for causing a significant effect on the environment. ATTACHMENTS Attachment A: Draft ADU Ordinance Attachment B - Task Force Letter Attachment C - Substantially Open Porches Attachment D - HCD Letter on ADU Ordinance (2021) Attachment E - Staff Response to HCD (2022) Attachment F - HCD Letter on ADU Ordinance (2022) Attachment G - Staff Response to HCD (2023) Attachment H - Government Code Section 65852.2 APPROVED BY: Jonathan Lait, Planning and Development Services Director *NOT YET APPROVED* 1 20232215_ay16 Ordinance No. _____ Ordinance of the Council of the City of Palo Alto Amending Title 18 (Zoning) of the Palo Alto Municipal Code to Amend Requirements Relating to Accessory Dwelling Units and Junior Accessory Dwelling Units The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Chapter 18.09 (Accessory Dwelling Units and Junior Accessory Dwelling Units) of Title 18 (Zoning) of the Palo Alto Municipal Code (“PAMC”) is amended to read as follows (additions underlined and deletions struck-through): 18.09.010 Purpose The intent of this Chapter is to provide regulations to accommodate accessory and junior accessory dwelling units (ADU/JADU), in order to provide for variety to the city's housing stock and additional affordable housing opportunities. These units shall be separate, self-contained living units, with separate entrances from the main residence, whether attached or detached. The standards below are provided to minimize the impacts of units on nearby residents and throughout the city, and to assure that the size and location of such dwellings is compatible with the existing or proposed residence(s) on the site and with other structures in the area. 18.09.020 Applicable Zoning Districts The establishment of an accessory dwelling unit is permitted in zoning districts when single-family or multi-family residential is a permitted land use. The development of a single-family home, ADU, and/or a JADU on a lot that allows for single-family development shall not be considered a multifamily development pursuant to PAMC Section 18.04.030, nor shall they require Architectural Review pursuant to other sections of Chapter 18. 18.09.030 Units Exempt from Generally Applicable Local Regulations (a) Government Code section 65852.2, subdivision (e) provides that certain units shall be approved notwithstanding state or local regulations that may otherwise apply. The following types of units shall be governed by the standards in this section. In the event of a conflict between this section and Government Code section 65852.2, subdivision (e), the Government Code shall prevail. i. An ADU and JADU within the existing space of a single-family dwelling or an ADU within the existing space of an accessory structure (i.e. conversion without substantial addition). *NOT YET APPROVED* 2 20232215_ay16 ii. An ADU and JADU within the proposed space of a single-family dwelling. iii. A detached, new construction ADU on a lot with a proposed or existing single-family dwelling, provided the ADU does not exceed 800 square feet, sixteen feet in height, or four-foot side and rear (i.e. interior) setbacks. iv. ADUs created by conversion of portions of existing multi-family dwellings not used as livable space. v. Up to two detached ADUs on a lot with an existing multi-family dwelling. (b) The Development Standards for units governed by this section are summarized in Table 1. Regulations set forth in section 18.09.040 do not apply to units created under 18.09.030. The minimum and maximum sizes indicated in Table 1 do not prohibit units that are greater than 800 square feet. These sizes simply serve to distinguish when a unit transitions from regulations set forth in Table 1 and section 18.09.030 to regulations set forth in Table 2 and section 18.09.040. Table 1: Development Standards for Units Described in Government Code Section 65852.2(e) Single-Family Multi-Family Conversion of Space Within the Existing Space of a Single-Family Home or Accessory Structure Construction of Attached ADU Within the Proposed Space of a Single- Family Home New Construction of Detached ADU Conversion of Non-Habitable Space Within Existing Multi- family Dwelling Structure Conversion or Construction of Detached(4) ADU Number of Units Allowed 1 ADU and 1 JADU 25% of the existing units (at least one) 2 Minimum size(1)150 sf Maximum size(1)N/A2 800 sf N/A Setbacks N/A, if condition is sufficient for fire and safety 4 feet from side and rear lot lines; underlying zoning for front setback N/A 4 feet from side and rear lot lines; underlying zoning for front setback Daylight N/A Underlying zone standard for Single Family Home (ADU must be within N/A *NOT YET APPROVED* 3 20232215_ay16 Plane Maximum Height(3)N/A allowable space of Single-Family Home)16(5)N/A 16(5)(6) Parking None State Law Reference 65852.2(e)(1)(A)65852.2(e)(1)(A)65852.2(e)(1)(B)65852.2(e)(1)(C)65852.2(e)(1)(D) (1)Lofts where the height from the floor level to the underside of the rafter or finished roof surface is 5' or greater shall count towards the unit’s floor area. (2)New construction must be consistent with allowable space (e.g. FAR, Lot Coverage) of a single family residence, except that up to 150 sf may be added for the purpose of ingress and egress only, without regard to underlying zone standards. (3)Units built in a flood zone are not entitled to any height extensions granted to the primary dwelling. (4)Units must be detached from existing primary dwellings but may be attached to each other. (5)A height of 18 feet for a detached ADU on a lot with an existing or proposed single family or multifamily dwelling unit that is within one-half of one mile walking distance of a major transit stop or a high-quality transit corridor, as those terms are defined in Section 21155 of the Public Resources Code. An additional two feet in height shall be provided to accommodate a roof pitch on an ADU that is aligned with the roof pitch of the primary dwelling unit. (6)A height of 18 feet for a detached ADU on a lot with an existing or proposed multifamily, multistory dwelling. (c) Development standards stated elsewhere in this Section or Title 18, including standards related to FAR, lot coverage, and privacy, are not applicable to ADUs or JADUs that qualify for approval under this section. When there is an ADU or JADU attached to an existing or proposed primary dwelling, the shared wall between these units shall contribute to the maximum allowable Floor Area, Lot Coverage, and Maximum House Size of the primary unit. For a single-family home, this measurement shall be taken to the outside stud wall in accordance with Section 18.04.030(a)(65)(D). For a multi-family dwelling, this measurement shall be taken to the outside surface of exterior walls in accordance with Section 18.04.030(a)(65)(B) and (C). (d) The establishment of accessory dwelling units and junior accessory dwelling units pursuant to this section shall not be conditioned on the correction of non- conforming zoning conditions; provided, however, that nothing in this section shall limit the authority of the Chief Building Official to require correction of building standards relating to health and safety. (e) The installation of fire sprinklers shall not be required in an accessory dwelling unit if sprinklers are not required for the primary residence. Nothing in this section shall preclude the Fire Marshal from accepting fire sprinklers as an alternative means of compliance with generally applicable fire protection requirements. Commented [YA1]: Previously recommended by PTC in July 2022 *NOT YET APPROVED* 4 20232215_ay16 (f) Rental of any unit created pursuant to this section shall be for a term of 30 days or more. (g) Attached units shall have independent exterior access from a proposed or existing single-family dwelling. Except for JADUs, attached units shall not have an interior access point to the primary dwelling (e.g. hotel door or other similar feature/appurtenance). (h) Conversion of an existing accessory structure pursuant to Government Code section 65852.2(e)(1)(A) may include reconstruction in-place of a non-conforming structure, so long as the renovation of reconstruction does not increase the degree of non- compliance, such as increased height, envelope, or further intrusion into required setbacks. Any portion of an ADU that exceeds the envelope of the existing accessory structure shall be subject to Section 18.09.040. (i) Street addresses shall be assigned to all units prior to building permit final to assist in emergency response. (j) The unit shall not be sold separately from the primary residence. (k) Replacement parking is not required when a garage, carport, or covered parking structure is converted to, or demolished in conjunction with the construction of, an ADU. (l) JADUs shall comply with the requirements of Section 18.09.050. 18.09.040 Units Subject to Local Standards (a) This section shall govern applications for ADUs and JADUs that do not qualify for approval under section 18.09.030 and for which the City may impose local standards pursuant to Government Code section 65852.2, subdivisions (a) through (d). Nothing in this section shall be interpreted to prohibit an ADU of up to 800 square feet, at the heights stated in Table 2, with a four foot side and rear setbacks. (b) The Development Standards for units governed by this section are provided in Table 2. These regulations do not limit the height of existing structures converted into ADU/JADUs unless the envelope of the building is proposed to be modified beyond any existing legal, non-conforming condition. Table 2: All other Units Attached Detached JADU Number of Units Allowed1 1 1 Minimum size 150 sf Commented [YA2]: Previously recommended by PTC in July 2022 *NOT YET APPROVED* 5 20232215_ay16 Maximum size 900 sf (1,000 sf for two or more bedrooms); no more than 50% of the size of the single- family home 900 sf (1,000 sf for two or more bedrooms) 500 sf Setbacks 4 feet from side and rear lot lines; underlying zone standard for front setback Daylight Plane Underlying zone standard per footnote (7) N/A Underlying zone standard Initial Height 8 feet at lot line Angle 45 degrees Maximum Height3 Res. Estate (RE)30 feet Open Space (OS)25 feet All other eligible zones 16 feet(5)(6)(7) Underlying zone standard Parking None Square Footage Exemption when in conjunction with a single family home(4) Up to 800 sf(4)Up to 500 sf(4) (1) An attached or detached ADU may be built in conjunction with a JADU on a lot with an existing or proposed single family home. One attached or detached ADU may be built in conjunction with an existing or proposed multifamily building. (2) Lofts where the height from the floor level to the underside of the rafter or finished roof surface is 5' or greater shall count towards the unit’s floor area. (3) Units built in a flood zone are not entitled to any height extensions granted to the primary dwelling. (4) Lots with both an ADU and a JADU may exempt a maximum combined total of 800 square feet of the ADU and JADU from FAR, Lot Coverage, and Maximum House Size calculations. Any square footage that exceeds this exemption shall contribute to the FAR, Lot Coverage, and (if attached) Maximum House Size calculations for the subject property. This exemption is not afforded to lots with existing or proposed multifamily dwellings. (5) A height of 18 feet for a detached ADU on a lot with an existing or proposed single family or multifamily dwelling unit that is within one-half of one mile walking distance of a major transit stop or a high-quality transit corridor, as those terms are defined in Section 21155 of the Public Resources Code. An additional two feet in height shall be provided to accommodate a roof pitch on an ADU that is aligned with the roof pitch of the primary dwelling unit. (6) A height of 18 feet for a detached ADU on a lot with an existing or proposed multifamily, multistory dwelling. (7) A height of 25 feet or the height limitation in the underlying zone district that applies to the primary dwelling, whichever is lower, for an ADU that is attached to a primary dwelling. These ADUs shall not exceed two stories in height. Commented [YA3]: Response to change in state law and HCD direction re daylight plane Commented [YA4]: Response to HCD direction re daylight plane Commented [YA5]: Response to HCD direction re JADUs Commented [YA6]: Previously recommended by PTC in July 2022 *NOT YET APPROVED* 6 20232215_ay16 (c) A single-family dwelling shall exist on the lot or shall be constructed on the lot in conjunction with the construction of an ADU/JADU. (d)ADU and/or JADU square footage shall not be included in FAR, Lot Coverage, and Maximum House Size calculations for a lot with an existing or proposed single family home, up to the amounts stated in Table 2. ADU and/or JADU square footage in excess of the exemptions provided in Table 2 shall be included in FAR, Lot Coverage, and Maximum House Size calculations for the lot. (d)(e)When there is an ADU or JADU attached to an existing or proposed primary dwelling, the shared wall between these units shall contribute to the maximum allowable Floor Area, Lot Coverage, and Maximum House Size of the primary unit. For a single-family home, this measurement shall be taken to the outside stud wall in accordance with Section 18.04.030(a)(65)(D). For a multi-family dwelling, this measurement shall be taken to the outside surface of exterior walls in accordance with Section 18.04.030(a)(65)(B) and (C). (e)(f)Attached units shall have independent exterior access from a proposed or existing single-family dwelling. Except for JADUs, attached units shall not have an interior access point to the primary dwelling (e.g. hotel door or other similar feature/appurtenance). (f)(g)No protected tree shall be removed for the purpose of establishing an accessory dwelling unit unless the tree is dead, dangerous or constitutes a nuisance under Section 8.04.050. Any protected tree removed pursuant to this subsection shall be replaced in accordance with the standards in the Tree Technical Manual. (g)(h)For properties listed in the Palo Alto Historic Inventory, the California Register of Historical Resources, the National Register of Historic Places, or considered a historic resource after completion of a historic resource evaluation, compliance with the appropriate Secretary of Interior’s Standards for the Treatment of Historic Properties shall be required. (h)(i)Noise-producing equipment such as air conditioners, water heaters, and similar service equipment that exclusively serves an ADU/JADU may be located anywhere on the site, provided they maintain the underlying front yard setback requirements of the property and, if the property is a corner lot, a 10-foot street-side setback. shall be located outside of the setbacks for the ADU/JADU. All such equipment shall be insulated and housed, except that the Director may permit installation without housing and insulation, provided that a combination of technical noise specifications, location of equipment, and/or other screening or buffering will assure compliance with the city’s Noise Ordinance at the nearest property line. All service Commented [YA7]: Previously recommended by PTC in July 2022 Commented [YA8]: Previously recommended by PTC in September 2022 *NOT YET APPROVED* 7 20232215_ay16 equipment must meet the city’s Noise Ordinance in Chapter 9.10 of the Municipal Code. (i)(j)Setbacks (1) Detached units shall maintain a minimum three-foot distance from the primary unit, measured from the exterior walls of structures. (2) No A basement or other subterranean portion that serves of an ADU/JADU shall may encroach into a setback required for the primary dwelling provided the following conditions are met:. (A) Newly constructed basement walls are no closer than four feet to an adjacent interior side or rear property line. (B) A new lightwell associated with a basement shall not be placed closer than four feet to an adjacent interior property line. When visible from the right of way, these facilities shall be screened from view with vegetation. (C) The new basement shall not negatively impact tree roots on the subject property or on adjacent lots such that it would require a protected tree to be removed or cause the protected tree to die. (D) Habitable ADU/JADU basements shall contribute toward the unit’s total allowable floor area. Any floor area in excess of the exemptions provided in this Section shall contribute to the total allowable limits for the site. (3)Projections, including but not limited to windows, doors, mechanical equipment, venting or exhaust systems, are not permitted to encroach into the required setbacks, with the exception of a roof eave of up to 2 feet. (3)(4)For corner lots developed as a single-family home only, when an existing or proposed primary dwelling unit is expanded or constructed simultaneously with the construction of a new ADU/JADU, all structures may be built to a 10- foot street-side setback and a 16-foot front yard setback, regardless of the presence of a special setback, unless a fire or life-safety regulation requires a greater setback. (4)(5)When an existing, legal, nonconforming structure is converted or reconstructed to create an ADU/JADU, any portion of the ADU/JADU that is in the same location and falls within the building envelope of the original structure shall not be subject to the development standards stated in this Section. Any portion of the ADU/JADU that is in a different location or Commented [YA9]: Previously recommended by PTC in July/August 2022 Commented [YA10]: Previously recommended by PTC in July/August 2022 Commented [YA11]: Previously recommended by PTC in July 2022 *NOT YET APPROVED* 8 20232215_ay16 exceeds the envelope of the original structure shall comply with the development standards stated in this Section. (5)(6)Notwithstanding the development standards stated in Table 2 and paragraph (5) above, when an existing, legal, non-conforming structure is converted in-place to an ADU/JADU, the envelope of the structure may be modified to encroach further into a setback or daylight plane as follows: (A) The height of the existing structure may be increased by no more than one linear foot in height commensurate to the existing roofline of the structure provided the height of the addition does not exceed 12 feet from grade. The roofline shall not be changed to a style other than what currently exists on the structure. (B) Each non-conforming wall may be expanded by no more than six inches in thickness based on its existing location and configuration, as measured to exterior surface of the material, to provide for greater insulation and energy requirements provided that a minimum of one foot is maintained between the addition and an adjacent interior property line. An existing wall of a structure that does not currently have a separation of one foot from a parallel property line shall not be expanded outward. (C) All other additions not specified here shall follow the standard setbacks for the ADU/JADU identified in Table 2. (j)(k)Design (1) Except on corner lots, it shall be encouraged but not required that the unit shall not have an entranceway facing the same lot line (property line) as the entranceway to the main dwelling unit unless the entranceway to the accessory unit is located in the rear half of the lot. Exterior staircases to second floor units shall be located toward the interior side or rear yard of the property. (2) Privacy (A) Second story doors and decks shall not face a neighboring dwelling unit property line. Second story decks and balconies shall utilize screening barriers to prevent views into towards an adjacent interior property lineies. These barriers shall provide be a minimum five-foot, six-inch height, screen wall from the floor level of the deck or balcony and shall not include perforations of any kind that would allow visibility between properties. (B) Second story w Windows on a second floor, loft, or equivalent elevated space, excluding those required for egress, shall have a five- Commented [YA12]: Previously recommended by PTC in July/August 2022 Commented [YA13]: Response to HCD direction Commented [SG14]: PTC Recommended language from February 20233 Commented [YA15]: Previously recommended by PTC in 2022/23 *NOT YET APPROVED* 9 20232215_ay16 foot sill height as measured from the second-finished floor level, or utilize obscured opaque glazing on the entirety of the window when facing any window that faces an adjacent interior property lineies. Second story e Egress windows shall utilize obscured opaque glazing on the entirety of the windows which face that face adjacent interior properties. (C) Second story w Windows on a second finished floor, loft, or equivalent elevated space, shall be offset from neighbor’s windows to maximize privacy. (D) Where feasible, egress windows on the first and second finished floor of an ADU or JADU shall not face towards an adjacent interior property line. If this is not feasible, then these windows shall utilize opaque glazing on the whole window. (E) If the first finished floor of an ADU or JADU is two feet or more above grade, then first floor windows shall include the following: i. Non-egress, operable windows facing an adjacent interior property line shall have a windowsill(s) that start five feet above the first finished floor for the unit; ii. Non-egress, non-operable windows facing an adjacent interior property line shall have the lower half of window(s) (minimum of five feet above the first finished floor) utilize opaque glazing. (F) Where feasible, the use of skylights (whether operable or not) shall be used in lieu of operable windows that face adjacent interior properties (G) No exterior lighting shall be mounted above seven feet. All lighting mounted on walls shall be directed downwards and shall not direct light towards adjacent interior property lines. Any ground lighting shall not direct light upwards to the building or sky. (k)(l)Parking (1) Replacement parking is not required when a garage, carport, or covered parking structure is converted to, or demolished in conjunction with the construction of, an ADU. (2) Replacement parking is required when an existing attached garage, carport, or covered parking structure is converted to a JADU or when a required, existing, uncovered parking space is expanded into by an ADU. These replacement spaces may be provided as uncovered spaces in any configuration on the lot including within the front or street side yard setback for the property. Commented [SG16]: Recommended by PTC in March 2023 Commented [SG17]: Suggested PTC language from 2022/23 *NOT YET APPROVED* 10 20232215_ay16 (A) The Director shall have the authority to modify required replacement parking spaces by up to one foot in width and length upon finding that the reduction is necessary to accommodate parking in a location otherwise allowed under this code and is not detrimental to public health, safety or the general welfare. (B) Existing front and street side yard driveways may be enlarged to the minimum extent necessary to comply with the replacement parking requirement above. Existing curb cuts shall not be altered except when necessary to promote public health, safety or the general welfare. (3)When parking is provided, the unit shall have street access from a driveway in common with the main residence in order to prevent new curb cuts, excessive paving, and elimination of street trees, unless separate driveway access will result in fewer environmental impacts such as paving, grading or tree removal. (3)(4)When a single-family dwelling unit is permitted simultaneously with the construction of new ADU/JADUs, the primary unit’s covered parking requirements identified in Chapter 18.10 and 18.12 do not need to be provided. Two uncovered parking spaces shall be provided in any configuration on the lot including within the front or street-side setback for the property. (4)(5)If covered parking for a unit is provided in any district, the maximum size of the covered parking area for the accessory dwelling unit is 220 square feet. This space shall count towards the total floor area for the site but does not contribute to the maximum size of the unit unless attached to the unit. Any attached garage shall not have an interior access point to the ADU/JADU (e.g. hotel door or other similar feature/appurtenance). (l)(m)Miscellaneous requirements (1) Street addresses shall be assigned to all units prior to building permit final to assist in emergency response. (2) The unit shall not be sold separately from the primary residence. (3) Rental of any unit created pursuant to this section shall be for a term of 30 days or more. (4) The installation of fire sprinklers shall not be required in an accessory dwelling unit if sprinklers are not required for the primary residence. Nothing Commented [YA18]: Previously recommended by PTC in July 2022 Commented [YA19]: Previously recommended by PTC Also responsive to HCD direction July/August 2022 *NOT YET APPROVED* 11 20232215_ay16 in this section shall preclude the Fire Marshal from accepting fire sprinklers as an alternative means of compliance with generally applicable fire protection requirements. 18.09.050 Additional Requirements for JADUs (a) A junior accessory dwelling unit may only be created on a lot in a single-family residential zone with an existing or proposed single family residence. A junior accessory dwelling unit shall be attached to or created within the walls of an existing or proposed primary dwelling. (b) The junior accessory dwelling unit shall include an efficiency kitchen, requiring the following components: A cooking facility with appliances, and; food preparation counter and storage cabinets that are of reasonable size in relation to the size of the junior accessory dwelling unit. i. A cooking facility with appliances shall mean, at minimum a one burner installed range, an oven or convection microwave, a 10 cubic foot refrigerator and freezer combination unit, and a sink that facilitates hot and cold water. ii.A food preparation counter and storage cabinets shall be of reasonable size in relation to a JADU if they provide counter space equal to a minimum 24-inch depth and 36-inch length. ii.iii.JADUs may share sanitation facilities (bathrooms, laundry facilities, etc.) with the primary unit. In this instance, the floor area and lot coverage associated with shared space shall count towards the primary unit’s maximum allowances only. The combined sanitation facilities between the units shall include shower, toilet, and sink fixtures at a minimum and shall conform to the minimum requirements specified in the Building Code (c) For the purposes of any fire or life protection ordinance or regulation or for the purposes of providing service for water, sewer, or power, a junior accessory dwelling unit shall not be considered a separate or new unit. (d) The owner of a parcel proposed for a junior accessory dwelling unit shall occupy as a primary residence either the primary dwelling or the junior accessory dwelling. Owner-occupancy is not required if the owner is a governmental agency, land trust, or housing organization. (e) Prior to the issuance of a building permit for a junior accessory dwelling unit, the owner shall record a deed restriction in a form approved by the city that includes a prohibition on the sale of the junior accessory dwelling unit separate from the sale of the single-family residence, requires owner-occupancy consistent with subsection (d) Commented [YA20]: Previously recommended by PTC Also responsive to HCD direction Commented [YA21]: Previously recommended by PTC *NOT YET APPROVED* 12 20232215_ay16 above, does not permit short-term rentals, and restricts the size and attributes of the junior dwelling unit to those that conform with this section. 18.09.060 Affordable ADU/JADU Pilot Program (a) This section shall govern applications for ADUs and JADUs that will be deed restricted for a minimum of 8 years to provide affordable rental units for households earning up to 80% of area median income. These units shall be exempt from all development impact fees, regardless of size, up to a maximum of $50,000 unit and a Citywide total of $400,000 per calendar year. To participate in this program, units shall follow the development standards in section 18.09.040 unless otherwise stated here. (b) The City’s affordable housing administrator shall income qualify potential tenants prior to issuing a permit for an affordable ADU/JADU. The property owner shall be responsible for paying the City’s housing administrator to cover the cost associated with documenting a potential tenants income level as well as annually recertifying the tenant’s income. SECTION 2. Subsection (g) of Section 16.58.030 of Chapter 16.58 (Development Impact Fees) of Title 16 (Building) of the Palo Alto Municipal Code (“PAMC”) is amended to read: (f) Accessory dwelling units (ADU) less than 750 square feet in size. Any impact fees to be charged for an accessory dwelling unit of 750 square feet or more shall be proportional to the square footage of the primary dwelling unit. Any unit that is deed restricted to be rented at a rate of up to 80% of AMI, in accordance with the City’s established Affordable ADU/JADU program, shall be exempt from all impact fees, regardless of size, up to a maximum of $50,000 per unit and a Citywide total of $400,000 per calendar year; SECTION 3. Subsections (a)(4) and (a)(65) of Section 18.04.030 (Definitions) of Chapter 18.04 (Definitions) of Title 18 (Zoning) of the Palo Alto Municipal Code (“PAMC”) is amended to read: [. . .] (4) “Accessory dwelling unit” means an attached or a detached residential dwelling unit which provides complete independent living facilities for one or more persons. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family dwelling is situated. An ADU bathroom shall include a shower, toilet, and sink fixture at a minimum and shall conform to the minimum requirements specified in the Building Code. An accessory dwelling unit also includes the following: [. . .] Commented [YA22]: Previously recommended by PTC Commented [SG23R23]: Removed due to February 2023 PTC motion Commented [YA24]: Previously recommended by PTC Commented [SG25R25]: Removed due to February 2023 PTC motion Commented [YA26]: Previously recommended by PTC in July 2022 *NOT YET APPROVED* 13 20232215_ay16 (65) “Gross Floor Area” is defined as follows: [. . .] (D) Low Density Residential Exclusions: In the RE and R-1 single-family residence districts and in the R-2 and RMD two-family residence districts, “gross floor area” shall not include the following: [. . .] (ix) Accessory structures equal to or less than one hundred and twenty square feet in area shall not contribute to floor area provided that any attached porches, patios, or similar features are substantially open; (E) In all districts, gross floor area shall be calculated to the nearest 1000th decimal point and represented and rounded on plans to the nearest 100th decimal point (e.g. 123.456 sf shall be rounded to 123.46 sf). Standard rounding shall apply such that a number of four or less shall be rounded down and a number of five or more shall be rounded up. SECTION 4. Subsections (b)(5) of Section 18.10.080 (Accessory Uses and Facilities) of Chapter 18.10 (Low-Density Residential) of Title 18 (Zoning) of the Palo Alto Municipal Code (“PAMC”) is amended to read: [. . .] (5) When located within a required interior yard as permitted by this section, no such No accessory building shall have more than two plumbing fixtures. Accessory buildings shall not be allowed to be turned into habitable space nor shall these structures be allowed to have showers (indoor or outdoor), gas lines, washer/dryers, and/or cooking facilities to be provided inside or attached to the structure, unless the structure is proposed as an ADU/JADU that satisfies all requirements of the Palo Alto Municipal Code. [. . .] SECTION 5. Subsections (b)(5) of Section 18.12.080 (Accessory Uses and Facilities) of Chapter 18.12 (Single-Family Residential District) of Title 18 (Zoning) of the Palo Alto Municipal Code (“PAMC”) is amended to read: [. . .] (5) No such accessory building greater than 200 square feet in size shall have more than two plumbing fixtures. Accessory buildings shall not be allowed to be turned into Commented [YA27]: Previously recommended by PTC in July 2022 Commented [YA28]: Previously recommended by PTC in July 2022 Commented [YA29]: Previously recommended by PTC in July 2022 *NOT YET APPROVED* 14 20232215_ay16 habitable space nor shall these structures be allowed to have showers (indoor or outdoor), gas lines, washer/dryers, and/or cooking facilities to be provided inside or attached to the structure, unless the structure is proposed as an ADU/JADU that satisfies all requirements of the Palo Alto Municipal Code. [. . .] SECTION 6. Subsection (b)(5) of 18.40.050 (Location and Use of Accessory Buildings) of Chapter 18.40 (General Standards and Exceptions) of Title 18 (Zoning) of the Palo Alto Municipal Code (“PAMC”) is amended to read: [. . .] (5) No such accessory building shall have more than two plumbing fixtures. Accessory buildings shall not be allowed to be turned into habitable space nor shall these structures be allowed to have showers (indoor or outdoor), gas lines, washer/dryers, and/or cooking facilities to be provided inside or attached to the structure, unless the structure is proposed as an ADU/JADU that satisfies all requirements of the Palo Alto Municipal Code. [. . .] SECTION 7. Subsection (a) of Section 18.10.090 (Basements) of Chapter 18.10 (Low Density Residential) of Title 18 (Zoning) of the Palo Alto Municipal Code (“PAMC”) is amended to read: [. . .] (a) Permitted Basement Area Basements may not extend beyond the building footprint and basements are not allowed below any portion of a structure that extends into required setbacks, except to the extent that the main residence is permitted to extend into the rear yard setback by other provisions of this code. Basements which serve the primary unit may not extend under an attached ADU or JADU to the extent those secondary units utilize the bonus floor area, lot coverage, and/or maximum house size exemptions identified in Section 18.09. [. . .] SECTION 8. Subsection (a) of Section 18.12.090 (Basements) of Chapter 18.13 (Single-Family Residential District) of Title 18 (Zoning) of the Palo Alto Municipal Code (“PAMC”) is amended to read: [. . .] (a) Permitted Basement Area Commented [YA30]: Previously recommended by PTC in July 2022 *NOT YET APPROVED* 15 20232215_ay16 Basements may not extend beyond the building footprint and basements are not allowed below any portion of a structure that extends into required setbacks, except to the extent that the main residence is permitted to extend into the rear yard setback by other provisions of this code. Basements which serve the primary unit may not extend under an attached ADU or JADU to the extent those secondary units utilize the bonus floor area, lot coverage, and/or maximum house size exemptions identified in Section 18.09. [. . .] SECTION 9. Any provision of the Palo Alto Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to affect the provisions of this Ordinance. SECTION 10. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 11. The Council finds that the adoption of this Ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.17 and CEQA Guidelines sections 15061(b)(3), 15301, 15302 and 15305 because it constitutes minor adjustments to the City’s zoning ordinance to implement State law requirements related to accessory dwelling units as established in Government Code Section 65852.2, and these changes are also likely to result in few additional dwelling units dispersed throughout the City. As such, it can be seen with certainty that the proposed action will not have the potential for causing a significant effect on the environment. SECTION 12. This ordinance shall be effective on the thirty-first date after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: Commented [SG31]: Previously recommended by PTC in March 2023 *NOT YET APPROVED* 16 20232215_ay16 ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Assistant City Attorney City Manager ____________________________ Director of Planning and Development Services City Of Palo Alto ADU Ordinance, First Reading, Meeting Date 10/5/2020 Agenda Item #8 To the Members of The Palo Alto City Council: We want to begin by expressing commendation for what has been done to date by Council and PTC but particularly by Staff. This is a complex political and technical topic and we consider the ordinance to be mostly in alignment with the State Statutes. We applaud the effort where choices have been made to exceed limitations in a reasonable way, and understand clearly the boundaries established by State legislation. What we need to remember is that the State is promoting this legislation to incentivize and streamline the creation of ADUs. We should also remember to view all of this through the local lens of prioritizing residential development as a clearly stated Palo Alto goal. As professionals, we seek a clear and precise set of rules we can rely on in the design process to achieve a predictable result for our clients. A number of individuals spoke in warning when we came before Council in January, and we have been proven correct in stating Palo Alto's urgency ordinance was seriously flawed. Many elements did not properly conform to State legislation. Since then, Staff has adjusted their interpretations, in some cases after being challenged by the professional community, and partly when influenced by input from HCD. The updated document before you makes good progress toward alignment, but we still fall short in some important areas. The Palo Alto ADU Task Force (PAADUTF), now approximately 20 individuals and growing, was created out of a grassroots desire for peer communication between professionals who are active in ADU development. Sharing information regarding regulatory interpretations, design methodology, and construction strategy, this group came together to evaluate the August 17 staff report and associated ordinance language. Unfortunately, we were not aware of the May 27 PTC hearing and recognize this was a missed opportunity to interact with staff. Over the course of five meetings conducted during August and September, the group developed a narrative along with an annotated review of the proposed ordinance. As indicated, two additional meetings were conducted with staff included to review and discuss the information. Several significant points from that discussion have been captured in your staff report. There are others that were not, that we nonetheless feel are critical to implement as part of this update. Through direct and frequent interaction with HCD and supported by other experts active in ADU regulatory action, The PAADUTF has identified several specific areas where the proposed local ordinance departs from the State intent. We recognize Staff feels they have rigorously evaluated the language presented to you tonight, but we do not believe they are entirely correct. The HCD ADU Handbook, released just last week, seems to confirm a few areas where the proposed language is in conflict with HCD’s guidance. As you have heard, if inconsistency is not corrected, there is a significant possibility the ordinance will be challenged and potentially deemed invalid. The most significant issue is the approach taken in the ordinance regarding the Statewide Exemption ADU and how that language relates to all other units, particularly those exceeding 800 square feet. Gov. Code, § 65852.2, subd. (c)(2)(C)​ ​“Any other minimum or maximum size for an accessory dwelling unit, size based upon a percentage of the proposed or existing primary dwelling, or limits on lot coverage, floor area ratio, open space, and minimum lot size, for either attached or detached dwellings that does not permit at least an 800 square foot accessory dwelling unit that is at least 16 feet in height with four-foot side and rear yard setbacks to be constructed in compliance with all other local development standards.” Staff's interpretation of this section includes a vision that the Exemption Unit is an isolated obligation. In fact, the Statute language says clearly ​“​at least​”​, so we have been told any attempt at creating limitations for units which are larger (daylight plane restrictions, placement on the lot, a limitation for subterranean construction, or basement construction) is simply inconsistent with the State Statute. Another significant departure is the approach taken in regard to 2-story construction. Staff is seeking to create limits on the basis of privacy, but the restrictions they have offered are inconsistent with the statutes. It is important to remember that the State put these new rules in place to shake up the norms, and we need to understand and align with that intent. As an example, HCD has described a scenario where if a lot is so small that 800 sf cannot be accommodated on one level, then 2-stories can be the only option. Because of this, HCD has confirmed there can be no restriction against 2-story units, under any condition. Whether in conformance with an Exemption ADU or larger, 2-story construction must be embraced. We would offer that Santa Cruz has done an excellent job in this area and has elected to allow 22’ of height with additional restrictions for distance from the property line once beyond 16’ of height. (https://www.cityofsantacruz.com/government/city-departments/planning-and-community-development/ac cessory-dwelling-units-adus) Again, there are a number of specific areas of improvement in the proposed ordinance, and we applaud that. What we ask of you tonight is the consideration of 15 areas of concern we identify below, some of which have already been described by Staff. We believe all of these are important and nuanced topics that are truly necessary to implement. Some are changes only included to simplify the development of ADUs, but others are very technical responses to costly or avoidably complex limitations. We ask that you remember our pace is 1,000 units short of our RHNA requirement and that we need to do better and move faster. This set of considerations provides an easy way to encourage the development of additional units with minimal collateral impact when compared to larger, more dense projects with their significant timelines and approval hurdles. 15 Suggestions for Consideration: 1.Alignment with Gov. Code, § 65852.2, subd. (c)(2)(C) a.Remove language that improperly restricts daylight plane, placement on the lot, limitation for subterranean construction, or basement construction. 2.Two-Story a.Provide definition for subterranean 1​st​ level construction. (1​st​ level partially recessed in the ground) i.Clarify how deep this can be without being interpreted as a ‘basement’ 1.Suggest 36” max below existing natural grade as the threshold b.Confirm Staff’s recommendations for privacy management i.Windows obscured when sills are below 5’ above adjacent finish floor on walls parallel to property lines when the structure is within 8’ of a property line ii.Set sills at 5’ above adjacent finish floor on walls parallel to property lines when the structure is within 8’ of a property line iii.Sleeping rooms endeavor to have egress windows located on walls non-adjacent to property lines iv.Use of (operable) skylights in bathrooms and other spaces where windows could be considered optional v.No exterior lighting mounted above 7’ on walls adjacent to property lines to keep it at or below maximum fence height c.Consider adopting language similar to that used in Santa Cruz: Page 2 i.ADUs higher than one story may be up to 22’ tall at the peak, measured from average grade, and any portion of the structure that exceeds 16’ in height must be set back a minimum of 5’ from the side yard property line and 10’ from the rear yard property line. ii.Exception: An ADU that faces an alley or street can be up to 22’ tall and any portion of the structure that exceeds 16’ in height must be set back 5’ from the side and rear property lines. iii.Detached New Construction ADUs higher than one story shall limit the major access stairs, decks, entry doors, and windows to the interior of the lot or an alley if applicable. Windows that impact the privacy of the neighboring side or rear yards should be minimized or otherwise restricted as in (b.) above 3.Fees a.Significant cost is incurred relative to fees for Plan Check, Building Permit, Planning Impacts, Specialty Consultants, School Fees, etc. They are not always levied in a relative fashion. i.Why not just charge a flat fee based on ADU floor area? ii.Included in that methodology, remove some of the fees to further incentivize ADU construction. b.It is important to note that the proportionate language in regard to Planning Impact Fees for units >750 sf contained in Gov. Code, § 65852.2, subd. (f)(3)(A) creates a significant disincentive for individuals with existing small homes. Please note the following examples: i.Project #1, Demolish an existing detached garage and replace it with a new conforming detached ADU. 1.Main house at 3,427 sf​ and new ​ADU at 800 sf​ = 23.3% = ​$4,511.47 ii.Project #2, Convert an existing detached garage and construct an addition to create a new detached ADU. 1.Main house at 1,209.6 sf​ and new ​ADU at 882 sf​ = 73.0% = ​$14,101.46 c.Both are roughly the same scope but because of the more modest house on Project #2, ​the weighted ratio pushes the fee to be $10k more​. d.Add to this about $9,000 for: School Impact Fees ($3,000), Plan Check Fees ($2,800) and Building Permit Fees ($3,300) - That puts the fees for Project #2 at around $23k, or almost 11% of the total anticipated project construction cost! 4.Subterranean/Basement Construction a.Without some flexibility in this, floor to ceiling heights are substandard (+/- 7’-0”). Codifying this in a thoughtful way can provide tangible improvements in privacy management and enhancement to overall massing. b.Partially subterranean 1​st​ floor lowers 2​nd​ floor and allows 8’ ceilings with a reasonable roof slope Page 3 c.Adding a basement could reduce an entire floor of height/massing 1.Reduce impact to neighbors 2.Required exclusionary excavation techniques remove any concerns related to dewatering ii.Tree root impacts could be conditioned since the 800 sf exemption ADU is not obligated in regard to underground space iii.Add clarifying language requiring the interior basement FA to count toward the 800 sf exemption triggering the additional area beyond 800 sf to be deducted from overall site FA iv.No further encroachment other than that required for emergency egress. v.Consider, as an additional incentive, allowing a 1200 sf max ADU if 50% of FA is below grade? 5.Minimal increase to non-conforming structures a.Create an allowance to avoid complete demolition or unnecessary complexity due to energy or structural upgrades i.Clarify that it can only be accessed for compliance with energy or structural obligations 1.Grant an additional 12” of height – increase framing depth above top plate rather than hanging, which is structurally complex and reduces ceiling heights. 2.Note that the structure height will still be restricted by the 16’ height limit. 3.Grant an additional 6” in plan on any side for structural seismic sheathing, exterior insulation, or replacement siding, so long as no portion of the structure encroaches beyond the property line. ii.Add a clarification regarding structures with existing parapets. A non-conforming portion of the structure may be modified up to the height of the existing parapet. This can be done without creating an increased impact to neighbors. Previous interpretation of ‘shrink-wrap’ rules should not apply to recessed roof areas below the top of the parapet. This flexibility will allow the interior to be a reasonable residential height. 6.Utility Connections a.Separate meters placed only at the owner’s discretion b.The requirement to provide a separate sewer line for detached ADUs has been directed by the Chief Building Official. i. There is an exception in the Plumbing Code recognized in many jurisdictions to avoid the significant cost this causes (often greater than $9,000) CPC 311.1 ​Exception: Where one building stands in the rear of another building on an interior lot, and no private sewer is available or can be constructed to the rear building through an adjoining court, yard, or driveway, the building drain from the front building shall be permitted to be extended to the rear building. 1.Recognize that the high cost can be viewed as the basis for applying the exception 2.Question - If no separate line is required for an attached ADU, why obligate the cost and complexity for a detached ADU. The outcome is the same so why regulate differently? 3.An alternative to this might be a study performed by experts under CPC 301.3 “Alternate Materials and Methods of Construction Equivalency” with the establishment Page 4 of standards for equipment (backflow prevention) and cleaning/inspection schedules. Once established in the City, this could be relied on as an alternate approach. c.Routing of utilities at the discretion of property owner (rear alley or another alternate to avoid disruption to landscape or trees) i.This graphic compares three lots with an alley behind. Parcel 3 has an attached ADU and the sewer may connect to the main house line. There is no impact to the site. Parcels1 and 2 have detached ADUs and are currently required to run their sewer line shown as ‘A’, around the main house, and out to the street at the front yard. This is highly problematic, especially if there are protected trees on site. A reasonable option would be to allow the sewer line placement shown by the ‘B’ or ‘C’ routing. 7.Garage replacement associated with Detached ADU a.When replacement covered parking is provided, and attached to an ADU, that area should not count against the 800 sf ‘bonus’ i.Staff has not indicated agreement with this. ii.It represents a significant disincentive toward the creation of covered parking spaces. iii.The space designated as a garage should count against the overall FA and not be allowed if the FAL or Lot Coverage will be exceeded as a result. 8.Retroactive Actions for all ADUs in process after 1/1/2020 (for projects without Building Final) a.Retract ​all​ enacted Deed Restrictions which are not in compliance with the updated regulations i.Require new Deed Restrictions in conformance with the updated requirements b.Refund any overpayment of fees for all projects in process (between approvals and Building Final) since January 1, 2020 for: i.Proportionate Impact Fees, if they remain in place ii.Other fees as adjusted by the revised ordinance iii.Council could elect to refund the full amount or an adjusted amount according to 16.06.110/R108.5 at 80%? 9.Green Building a.The current detached ADU regulations require Tier 2 with exceptions i.Tier 2 obligates requirements for third party preparation of documents and site evaluation which comes at significant cost b.If a homeowner proposes an addition/alteration to their home under 1,000sf, a third party is not required and the project is only required to meet CALGreen Mandatory measures c.To streamline the ADU permitting and construction process, detached ADUs under 1,000 sf should only be required to comply with CALGreen Mandatory for consistency 10.Noise producing equipment a.Allow placement at any location on the property as long as documentation is provided which confirms noise level will be below the 66 decibel limit at the property line. What should be codified for these issues are rules that direct the desired result. Don’t overcomplicate what can be achieved simply. i.Equipment should be <66 dB without accessories such as blankets (can fail/degrade over time) Page 5 ii.Asking for site-specific studies creates an additional unreasonable cost burden and must be avoided 11.Doorway between ADU and Primary Unit a.This really should be allowed as long as it is a hotel style communicating door. Note that it is allowed for a JADU so why not for an ADU? i.Provides indoor access to care for or interact with the occupant but can be closed if privacy or separation is needed b.Don’t create rules people will routinely circumvent - just remove the unnecessary regulation - Some may take advantage but there is little stopping them anyway 12.60-day Processing a.Sets unrealistic expectations without clear narrative b.Explain how this will be interpreted/implemented c.Note that HCD has indicated the State says once an application is submitted, the City must approve within 60 days or it is automatically approved. i.It is assumed that the clock is stopped when waiting for applicant response to comments, but there is nowhere this is codified and creates frustration for homeowners 13.Sprinkler requirements a.Clarify rules relative to the California State Fire Marshal Information Bulletin 17-001 (1/24/17) i.Current PA implementation is not in alignment with Senate Bill 1069 ii.Safety concerns and physical constraints must be balanced against compliance with the State language 14.Flood Zone a.Better articulate requirements and permitted exceptions i.Consider an example of the Exemption 800 sf ADU in the flood zone on a small lot – if reconstructing a non-conforming structure, it must be allowed to go higher than the 16 foot limitation by the delta between existing grade and the project site base flood elevation to raise the first floor level. 15.Remove requirement to convert “existing” garage/carport a.Only applies to projects where a new home is constructed with the intent of the garage or carport being converted to an ADU as a second ‘step’ after final inspection. b.Allow for a one-phase process i.Offer incentive for streamlining 1.Cannot be setbacks, height, etc. as these are enshrined in Gov. Code, § 65852.2, subd. (c)(2)(C) 2.Could offer an additional fee reduction for saved staff time or something similar While we recognize the Ordinance before you has been in process for the better part of a year, your action tonight will set the tone for what is possible until the next iteration of this language evolves. We are hopeful the commitment you have voiced toward incentivizing residential development, aligned with a stated goal of streamlining the approval of ADUs, will lead you to adopt some version of the 15 points we have presented. As professionals serving as guides to those who wish to construct an ADU, and being tasked with implementing the regulations, we want you to understand how important we believe these items are. If anything, we hope you might consider this as a starting point. We welcome your willingness to perhaps go further and, as many other cities have done, consider the adoption of additional language which will make ADUs more livable, desirable, and affordable. Respectfully submitted, Page 6 Jessica Resmini, Architect Randy Popp, Architect 8 Roofed porches on the 1st fl oor Roofed porches on the 1st fl oor do NOT count toward the gross fl oor area if at least 50% of the perimeter is at least 50% open. Fig 5 Roofed 1st fl oor porch G A E C D F B �� �� ��� �� �� ��� �� � Step 1: Determine the perimeter of the porch and divide it into segments that will allow a comparison of closed and open segments. The perimeter of the porch in Fig 5 is shown below. It is the sum of segments A throug A throug A G. It is 70 linear feet. How to determine if a porch is at least 50% open (using Fig 5 as an example) 9 In Fig 5 sides A, B, & C abut the house walls. These are considered to be closed segments. �� �� � ��� � � Step 2: Determine which perimeter segments abut the house walls. These are closed segments, or sides. Step 3: Determine the status (open/closed) of the remaining segments based on the design. If at least 50% of the facade area is open, then the segment or side is considered open. �� � � � � � � � � � � �� � ��� � ��� � �� � ���������� ���������������������������������� �������� ��������� ������������� ������������� ���������������� For purposes of assessing the openess of the facade: • The height of the segment facades is measured from the top of the porch fl oor to the the point where the segment facade intersects with the top of the roof material. • The widths of the segment facades are measured from the same plane. Allowances may be made for structural supports that are not excessive. 10 Step 4: Finalize the determination of which segments are closed and which are open, total the linear feet in each category, and compare the totals. �� �� �� � �� �� ��� �� � � � � � � � � ��������������� �������������For the porch in Fig 5, the summary is as follows: Conclusion: The perimeter of the porch in Fig 5 is 50% open and so the porch would NOT count toward gross fl oor area �������Feet �������Feet ������ ������� ������� ���� ������ ���������� �� � � � � � � � � � � ��� � ��� � �� � ������ ���������������������������������� �������� ��������� ������������� ������������� ���������������� �������� �� � ����������� ��������� ������� � Note: If a porch fl oor is more than 30” above grade, the porch sides may need to be 36” high for safety reasons. This may cause the porch facade to be considered closed. Possible solutions to make sure the porch sides are considered open are illustrated to the right: • Railings (ballisters) instead of solid half walls. • A single safety rail above lower, solid half walls. STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 2020 W. El Camino Avenue, Suite 500 Sacramento, CA 95833 (916) 263-2911 / FAX (916) 263-7453 www.hcd.ca.gov December 23, 2021 Jonathan Lait, Planning Director Planning Department City of Palo Alto 250 Hamilton Avenue – Fifth Floor Palo Alto, CA 94301 Dear Jonathan Lait: RE: Review of Palo Alto’s Accessory Dwelling Unit (ADU) Ordinance under ADU Law (Gov. Code § 65852.2) Thank you for submitting the City of Palo Alto (City) accessory dwelling unit (ADU) ordinance (Ordinance No.5507) adopted September 26, 2020, to the California Department of Housing and Community Development (HCD). The ordinance was received on October 20, 2020. HCD has reviewed the ordinance and is submitting these written findings pursuant to Government Code section 65852.2, subdivision (h). HCD has determined that the ordinance does not comply with section 65852.2 in the manner noted below. Under the statute, the City has up to 30 days to respond to these findings. Accordingly, the City must provide a written response to these findings no later than January 23, 2022. HCD will review and consider any written response received from the City before that date in advance of taking further action authorized by Government Code section 65852.2. The adopted ADU ordinance meets many statutory requirements. However, the ordinance must be revised to comply with State ADU Law (Gov. Code, § 65852.2), as follows: • Section 18.09.030(a)(3) Units Exempt from Generally Applicable Local Regulations: The text of this Section and the applicable portion of Table 1 indicate the maximum size of a newly constructed detached ADU is 800 square feet. Although a local agency may establish minimum and maximum size requirements for ADUs pursuant to subdivision (c)(1) of Government Code section 65852.2 within limits, a local agency shall not establish a maximum square footage requirement for either attached or detached ADUs that is less than 850 square feet and 1,000 square feet for an ADU that provides more than one bedroom. (Gov. Code, § 65852.2, subd. (c)(2)(B).) Therefore, all relevant Jonathan Lait, Planning Director Page 2 sections of the ordinance must be amended to comply with this mandate in State ADU Law. • Section 18.09.030 Units Exempt from Generally Applicable Local Regulations: There appears to be a conflict between the text of this section and Table 1. The number of allowable units are correctly noted in Table 1 as “1 ADU and 1 JADU.” The text of section 18.09.030(a) appears to limit allowable units to “an ADU or JADU.” Government Code section 65852.2, subdivision (e)(1)(A), requires an ordinance to allow “one ADU and one JADU per lot… .” The City must amend the ordinance to correct this inconsistency, clarifying that “one ADU and one JADU” are permitted if all the conditions of section 65852.2, subdivision (e)(1)(A) apply. • Section 18.09.030(b) Application of Development Standards: Local agencies may establish standards for ADUs pursuant to Government Code section 65852.2, subdivision (a); however, these standards do not apply to ADUs constructed pursuant to subdivision (e). Table 1 impermissibly applies “underlying zoning” “for front setback[s]” to subdivision (e) ADUs. (Mun. Code, §18.09.030(b).) Subdivision (e)(1) describes permitted setbacks in full. Unless underlying zoning for all residential areas conforms to subdivision (e) limits, this table must be amended to comply with statute. (Gov. Code, § 65852.2, subd. (e)(1)(A).) • Section 18.09.030(b)(1) ADU Height in Flood Zones: The City has impermissibly restricted the height of ADUs. It appears that the City establishes minimum elevations for the first floor of structures in the flood zone, which is essentially the entire city to varying degrees. To account for this, the zoning code allows most residential structures to exceed otherwise maximum allowable heights for development. The City does not extend this accommodation to ADUs. Currently, Table 1 states that the maximum height for new, detached ADUs is 16 feet, but includes a caveat that “units built in a flood zone are not entitled to any height extension.” (Mun. Code, § 18.09.030(b).) In many instances, this would operate as an impermissible restriction on ADUs. Under State ADU Law, the City must accommodate an ADU of at least 800 square feet and 16 feet in height. Thus, the caveat in Table 1 is potentially confusing and could restrict the height to less than 16 feet. If it would in fact operate to effectively limit the height of ADUs to less than 16 feet, it would operate as an impermissible restriction on ADUs. As such, Table 1 should be revised to clarify that this limitation does not apply where necessary to permit an 800-square foot ADU that it at least 16 feet tall. (Gov. Code, § 65852.2, subds. (c)(2)(C) and (e)(1)(B)(ii).) • Section 18.09.040(b) Daylight Plane and ADU Height Standards: Table 2 states that “daylight plane” acts as a limit on the height of ADUs. In many instances, Jonathan Lait, Planning Director Page 3 this may not be a problem; however, daylight plane concerns cannot be used to unduly limit the height of an ADU. ADUs are permitted up to 16 feet high. (Gov. Code, § 65852.2, subds. (c)(2)(C), (e)(1)(B)(ii).) Therefore, in considering restrictions that the City is imposing on ADUs for daylight planes, the ordinance should note the 16-foot height allowable for ADUs. This Table must be amended to clarify this point. • Section 18.09.040(b) Units Subject to Local Standards: Table 2 sets out the development standards for ADUs that do not qualify under section 18.09.030. Although the City has more freedom to establish development standards for these ADUs, that is not without limitation. This section, and Table 2, must be amended to clarify that—notwithstanding the development standards—an ADU of at least 800 square feet, 16 feet in height, and with four-foot rear and side- yard setbacks is permitted as required by State ADU Law. (Gov. Code, § 65852.2, subd. (c)(2)(C).) • Section 18.09.040(b) Floor Area and JADUs: Development standards can account for ADUs in their measurement of the floor area restrictions or ratio (FAR). But these standards may not account for or consider JADUs. A JADU may not be included in this calculation, because a JADU is a unit that is contained entirely within a single-family residence. (Gov. Code § 65852.22, subd. (h)(1).) Footnote 4 of Table 2 impermissibly includes JADUs as part of the FAR calculations. This footnote must be amended to clarify this point. • Section 18.09.040(h) Noise-Producing Equipment: Local agencies may impose development standards on ADUs; however, these standards shall not exceed state standards. Section 18.09.040(h) states that noise-producing equipment “shall be located outside of the setbacks.” This section must be revised to only refer to ADUs since setbacks are not required for JADUs. In addition, this setback for noise-producing equipment for ADUs must be revised to make clear that this setback requirement will not impede the minimum state standards of four-foot setbacks. (Gov. Code, § 65852.2, subd. (c)(2)(C).) • Section 18.09.040(i)(2) Setbacks: Currently, this section states, “No basement or other subterranean portion of an ADU/JADU shall encroach into a setback required for the primary dwelling.” Under state law, new attached and detached ADUs have maximum four-foot rear and side-yard setbacks. (Gov. Code, § 65852.2, subds. (a)(1)(D)(vii), (c)(2)(C), (e)(1)(B), and (e)(1)(D).) Local agencies may impose setback requirements if the minimum rear and side-yard setbacks established by state law are not exceeded. This restriction is concerning on a number of grounds. First, setbacks may not be required for JADUs as they are constructed within the walls of the primary dwelling. Second, this requirement imposes excessive restrictions on ADUs converted from an existing area of the primary dwelling or accessory structure with a basement or subterranean space. Again, these Jonathan Lait, Planning Director Page 4 structures are not subject to setback requirements. Finally, this section would violate State ADU Law if the side or rear setback requirement for an ADU or JADU located in a basement or other subterranean structure exceeded four feet. Requiring ADUs and JADUs to meet the side and rear setbacks for the primary dwellings could exceed the maximum four-foot setbacks set out in State ADU Law. The ordinance must be revised to eliminate these concerns. • Section 18.09.040(j) Design: This section states, “Except on corner lots, the unit shall not have an entranceway facing the same lot line (property line) as the entranceway to the main dwelling unit unless the entranceway to the accessory unit is located in the rear half of the lot. Exterior staircases to second floor units shall be located towards the interior side or rear yard of the property.” These standards appear to apply only to the creation of ADUs and may unduly restrict the placement of an ADU on some lots. Local development standards provided by ordinance pursuant to subdivisions (a) through (d) of Government Code section 65852.2 do not apply to ADUs created under subdivision (e). Please consider eliminating this restriction or modifying it such that it applies “when feasible.” • Section 18.09.040(j)(2)(A) Privacy: The section states, “Second story doors and decks shall not face a neighboring dwelling unit.” This limitation, however, may place an impermissible constraint on an ADU. For example, excessive constraints would be placed on the creation of a second story ADU if residential units were located on all adjacent parcels. In addition, when operating in conjunction with Section 18.09.040(j), noted above, this restriction may prohibit ADUs created under subdivision (e) of Government Code section 65852.2. Accordingly, this provision must be revised to allow for more flexibility. The City could revise the first sentence of this section to state, “Second story doors and decks shall not face a neighboring dwelling unit, where feasible.” • Section 18.09.040(k)(4) Parking: The ordinance indicates if covered parking for a unit is provided in any district, the maximum size of the covered parking area for the accessory dwelling unit is 220 square feet. Further, under this section, the space for the covered parking count towards the total floor area for the site and the ADU if attached to the unit. Covered parking should not count towards the total floor area of the site as if it would unduly limit the allowable size of an ADU established by state law, nor should it directly count toward the area available for the ADU. Although standards within an underlying zone may apply when noted in the adopted ADU ordinance, they may not be more restrictive than those contained in state statute. (See, e.g., Gov. Code, § 65852.2, subs. (a)(1)(B), (a)(1)(D)(vii), (a)(1)(D)(x), (c), and (e).) The portion of this section stating “unit unless attached to the unit” should be deleted, or the section should otherwise be modified to comply with state law. Jonathan Lait, Planning Director Page 5 In these respects, revisions are necessary to comply with statute. HCD will consider any written response to these findings, such as a revised ordinance or a detailed plan to bring the ordinance into compliance with law by a date certain, before taking further action authorized pursuant to Government Code section 65852.2. Please note that HCD may notify the Attorney General’s Office in the event that the City fails to take appropriate and timely action under section 65852.2, subdivision (h). HCD appreciates the City’s efforts in the preparation and adoption of the ordinance and welcomes the opportunity to assist the City in fully complying with State ADU Law. Please contact Lauren Lajoie of our staff, at (916) 776-7495 or at Lauren.Lajoie@hcd.ca.gov if you have any questions or would like HCD’s technical assistance in these matters. Sincerely, David Zisser Assistant Deputy Director Local Government Relations and Accountability PLANNING & DEVELOPMENT SERVICES 250 Hamilton Avenue, 5th Floor Palo Alto, CA 94301 (650) 329-2441 February 3, 2022 Lauren Lajoie Housing & Community Development Division of Housing Policy Development 2020 W. El Camino Avenue, Suite 500 Sacramento, CA 95833 Lauren.Lajoie@hcd.ca.gov Dear Ms. Lajoie, This letter represents the City of Palo Alto’s response to your letter dated December 23, 2021 received by email, and received by hard copy on January 27, 2022. The content of the Housing and Community Development’s letter is italicized. The City of Palo Alto’s responses are bolded. 1. ADU Size - Section 18.09.030(a)(3) Units Exempt from Generally Applicable Local Regulations: The text of this Section and the applicable portion of Table 1 indicate the maximum size of a newly constructed detached ADU is 800 square feet. Although a local agency may establish minimum and maximum size requirements for ADUs pursuant to subdivision (c)(1) of Government Code section 65852.2 within limits, a local agency shall not establish a maximum square footage requirement for either attached or detached ADUs that is less than 850 square feet and 1,000 square feet for an ADU that provides more than one bedroom. (Gov. Code, § 65852.2, subd. (c)(2)(B).) Therefore, all relevant sections of the ordinance must be amended to comply with this mandate in State ADU Law. PAMC Section 18.09.030 is intended to describe the requirements for ADUs built under Gov. Code 65852.2, subdivision (e). This is not intended to create any limitation on ADUs built under subdivisions (a)-(d), which are governed by PAMC Section 18.09.040. The City will add clarifying language to this effect at the top of PAMC Section 18.09.030. 2. ADU & JADU - Section 18.09.030 Units Exempt from Generally Applicable Local Regulations: There appears to be a conflict between the text of this section and Table 1. The number of allowable units are correctly noted in Table 1 as “1 ADU and 1 JADU.” The text of section 18.09.030(a) appears to limit allowable units to “an ADU or JADU.” Government Code section 65852.2, subdivision (e)(1)(A), requires an ordinance to allow “one ADU and one JADU per lot… .” The City must amend the ordinance to correct this inconsistency, clarifying that “one ADU and one JADU” are permitted if all the conditions of section 65852.2, subdivision (e)(1)(A) apply. The City will update its ordinance to reflect the changes made by AB 3182 with respect to 1 ADU and 1 JADU. 3. Front Setback - Section 18.09.030(b) Application of Development Standards: Local agencies may establish standards for ADUs pursuant to Government Code section 65852.2, subdivision (a); however, these standards do not apply to ADUs constructed pursuant to subdivision (e). Table 1 impermissibly applies “underlying zoning” “for front setback[s]” to subdivision (e) ADUs. (Mun. Code, §18.09.030(b).) Subdivision (e)(1) describes permitted setbacks in full. Unless underlying zoning for DocuSign Envelope ID: 26247F48-AB81-46DC-AE75-91A87A8EE538 CITY OF PALO ALTO | 250 HAMILTON AVENUE, PALO ALTO, CA. 94301 | 650-329-2441 all residential areas conforms to subdivision (e) limits, this table must be amended to comply with statute. (Gov. Code, § 65852.2, subd. (e)(1)(A).) During our conversation on February 2, 2022, you explained that local rules may apply for front setbacks, including ADUs built under subdivision (e), and that it is not HCD’s position that subdivision (e) ADUs must be allowed at the front lot line. You explained that the issue with the current City ordinance is that it does not make clear that “underlying zoning” is only for front setbacks. The City will clarify this point in its ordinance. 4. Height - Section 18.09.030(b)(1) ADU Height in Flood Zones: The City has impermissibly restricted the height of ADUs. It appears that the City establishes minimum elevations for the first floor of structures in the flood zone, which is essentially the entire city to varying degrees. To account for this, the zoning code allows most residential structures to exceed otherwise maximum allowable heights for development. The City does not extend this accommodation to ADUs. Currently, Table 1 states that the maximum height for new, detached ADUs is 16 feet, but includes a caveat that “units built in a flood zone are not entitled to any height extension.” (Mun. Code, § 18.09.030(b).) In many instances, this would operate as an impermissible restriction on ADUs. Under State ADU Law, the City must accommodate an ADU of at least 800 square feet and 16 feet in height. Thus, the caveat in Table 1 is potentially confusing and could restrict the height to less than 16 feet. If it would in fact operate to effectively limit the height of ADUs to less than 16 feet, it would operate as an impermissible restriction on ADUs. As such, Table 1 should be revised to clarify that this limitation does not apply where necessary to permit an 800-square foot ADU that it at least 16 feet tall. (Gov. Code, § 65852.2, subds. (c)(2)(C) and (e)(1)(B)(ii).) For purposes of health and safety, the City of Palo Alto requires structures built in a flood zone to have a minimum finished floor height based on FEMA regulations. For a primary residence, the City provides an extra height allowance of 50% the minimum finished floor height. The City does not provide this allowance for any accessory structures, including ADUs. Nevertheless, ADUs in the flood zone can still be built to a height of 16 feet. It is unclear to the City how the failure to provide additional height above 16 feet represents an impermissible restriction on ADUs. During our conversation, you related that HCD prefers to have as few restrictions as possible on ADU production. The only restriction here is on finished floor height in the flood zone, which cannot be waived or relaxed without impacts on health and safety. Even in areas requiring the most extreme height above the base flood elevation, an ADU remains feasible within the 16 foot height limit. 5. Daylight Plane - Section 18.09.040(b) Daylight Plane and ADU Height Standards: Table 2 states that “daylight plane” acts as a limit on the height of ADUs. In many instances, this may not be a problem; however, daylight plane concerns cannot be used to unduly limit the height of an ADU. ADUs are permitted up to 16 feet high. (Gov. Code, § 65852.2, subds. (c)(2)(C), (e)(1)(B)(ii).) Therefore, in considering restrictions that the City is imposing on ADUs for daylight planes, the ordinance should note the 16-foot height allowable for ADUs. This Table must be amended to clarify this point. Please note that the City’s daylight plane regulations do not apply to subdivision (e) ADUs, which are governed by PAMC Section 18.09.030. The City will add a clarifying sentence at the top of Section 18.09.040 explaining that none of the regulations in PAMC 18.09.040 apply to subdivision (e) ADUs. In addition, the City will add a clarifying statement that the regulations in PAMC 18.09.040 are not intended to limit the conversion of existing structures to ADUs or JADUs. For all other ADUs, however, the City has requested clarity on HCD’s position on daylight plane on numerous occasions, most recently by email dated August 8, 2021. Please see this email, which is DocuSign Envelope ID: 26247F48-AB81-46DC-AE75-91A87A8EE538 CITY OF PALO ALTO | 250 HAMILTON AVENUE, PALO ALTO, CA. 94301 | 650-329-2441 attached, for an explanation of the City’s position. The City looks forward to continued discussion of this topic. 6. Clarify - Section 18.09.040(b) Units Subject to Local Standards: Table 2 sets out the development standards for ADUs that do not qualify under section 18.09.030. Although the City has more freedom to establish development standards for these ADUs, that is not without limitation. This section, and Table 2, must be amended to clarify that—notwithstanding the development standards—an ADU of at least 800 square feet, 16 feet in height, and with four-foot rear and side- yard setbacks is permitted as required by State ADU Law. (Gov. Code, § 65852.2, subd. (c)(2)(C).) The City will add a clarifying statement to this effect. 7. Floor Area & JADUs - Section 18.09.040(b) Floor Area and JADUs: Development standards can account for ADUs in their measurement of the floor area restrictions or ratio (FAR). But these standards may not account for or consider JADUs. A JADU may not be included in this calculation, because a JADU is a unit that is contained entirely within a single-family residence. (Gov. Code § 65852.22, subd. (h)(1).) Footnote 4 of Table 2 impermissibly includes JADUs as part of the FAR calculations. This footnote must be amended to clarify this point. Footnote 4 of Table 2 provides additional FAR on a site for ADUs and JADUs. This is an incentive to promote production of such units without limiting the development potential of a primary unit. Because a JADU is contained entirely within the space of a single-family residence, it would normally be included in the floor area of the primary unit. Footnote 4 provides an opportunity for a property owner to exempt all JADU square footage from the calculation of floor area for the primary unit. The removal of JADUs from footnote 4 would only serve to restrict the development of JADUs. The City will attempt to clarify the language of this footnote. 8. Noise-Producing Equipment - Section 18.09.040(h) Noise-Producing Equipment: Local agencies may impose development standards on ADUs; however, these standards shall not exceed state standards. Section 18.09.040(h) states that noise-producing equipment “shall be located outside of the setbacks.” This section must be revised to only refer to ADUs since setbacks are not required for JADUs. In addition, this setback for noise-producing equipment for ADUs must be revised to make clear that this setback requirement will not impede the minimum state standards of four-foot setbacks. (Gov. Code, § 65852.2, subd. (c)(2)(C)). As noted above, the City will add a clarifying statement that the regulations in PAMC 18.09.040 are not intended to limit the conversion of existing structures to ADUs or JADUs. For new construction, however, the City permits JADUs to build at a lesser setback than a single-family home normally would. Therefore, the removal of JADUs from this section will only serve to restrict the development of JADUs. Additionally, the City’s ordinance states that noise producing equipment needs to be placed outside the setback for an ADU or JADU. This means that the noise producing equipment itself cannot be placed closer than four-feet to a property line for either type of structure; not that the ADU or JADU cannot be placed at those locations. This is consistent with the state setback requirements for an ADU. 9. Basements - Section 18.09.040(i)(2) Setbacks: Currently, this section states, “No basement or other subterranean portion of an ADU/JADU shall encroach into a setback required for the primary dwelling.” Under state law, new attached and detached ADUs have maximum four-foot rear and side- yard setbacks. (Gov. Code, § 65852.2, subds. (a)(1)(D)(vii), (c)(2)(C), (e)(1)(B), and (e)(1)(D).) Local DocuSign Envelope ID: 26247F48-AB81-46DC-AE75-91A87A8EE538 CITY OF PALO ALTO | 250 HAMILTON AVENUE, PALO ALTO, CA. 94301 | 650-329-2441 agencies may impose setback requirements if the minimum rear and side-yard setbacks established by state law are not exceeded. This restriction is concerning on a number of grounds. First, setbacks may not be required for JADUs as they are constructed within the walls of the primary dwelling. Second, this requirement imposes excessive restrictions on ADUs converted from an existing area of the primary dwelling or accessory structure with a basement or subterranean space. Again, these structures are not subject to setback requirements. Finally, this section would violate State ADU Law if the side or rear setback requirement for an ADU or JADU located in a basement or other subterranean structure exceeded four feet. Requiring ADUs and JADUs to meet the side and rear setbacks for the primary dwellings could exceed the maximum four-foot setbacks set out in State ADU Law. The ordinance must be revised to eliminate these concerns. As noted above, the City will add a clarifying statement that the regulations in PAMC 18.09.040 are not intended to limit the conversion of existing structures to ADUs or JADUs. In addition, as with the previous section, the inclusion of JADUs here only serves to increase flexibility of JADU production. As noted above, the City will add a clarifying statement an ADU of at least 800 square feet, 16 feet in height, and with four-foot rear and side- yard setbacks is permitted as required by State ADU Law. With these clarifications the City does not believe it would violate State ADU Law to require that a newly constructed ADU limit any below-grade space to a setback greater than 4 feet. It is the City’s understanding that it could simply state that basements are not permitted for ADUs built under subdivisions (a)-(d), so long as it was still feasible to construct an ADU of at least 800 square feet. If this is the case, the City should have the lesser authority to direc t the placement of below-grade development. The City has significant concerns about basements in general, and those concerns extend to basements constructed as part of ADUs. Due to a high water table throughout most of Palo Alto, the construction of basements requires dewatering (pumping water from the construction site). While this is allowed, there are significant restrictions on timing and procedures taken during the dewatering process. Secondly, development of homes in Palo Alto often includes requirements for the planting and maintenance of trees used to enhance privacy between properties. Placing ADUs with basements as close as 4 feet from the property line may jeopardize the health of these trees on the subject property as well as trees on adjacent properties. The trees could fail, which would both diminish the tree canopy—important for our environment and adaptation to climate change—and diminish the privacy between properties. Building below ground is not required in order to achieve a unit which f ollows the requirements in Section 65852.2 and can lead to potential impacts on adjacent lots, such as to large stature trees on adjacent lots which is a common occurrence in Palo Alto. Building a basement in these scenarios may cause the tree to fail which is a life, safety, and health hazard which would unduly affect both homeowners as a result of the action by one individual. There are construction methods which can be implemented for above ground construction to help limit root damage caused by this construction to preserve trees but that is not possible for below ground construction and can lead to significant impacts as noted above. DocuSign Envelope ID: 26247F48-AB81-46DC-AE75-91A87A8EE538 CITY OF PALO ALTO | 250 HAMILTON AVENUE, PALO ALTO, CA. 94301 | 650-329-2441 10. Corner Lots - Section 18.09.040(j) Design: This section states, “Except on corner lots, the unit shall not have an entranceway facing the same lot line (property line) as the entranceway to the main dwelling unit unless the entranceway to the accessory unit is located in the rear half of the lot. Exterior staircases to second floor units shall be located towards the interior side or rear yard of the property.” These standards appear to apply only to the creation of ADUs and may unduly restrict the placement of an ADU on some lots. Local development standards provided by ordinance pursuant to subdivisions (a) through (d) of Government Code section 65852.2 do not apply to ADUs created under subdivision (e). Please consider eliminating this restriction or modifying it such that it applies “when feasible.” As noted above, the City will add a clarifying sentence at the top of Section 18.09.040 explaining that none of the regulations in PAMC 18.09.040 apply to subdivision (e) ADUs. The City will clarify this is not applicable for subsection (e) ADUs. We are not aware of any evidence that this simple design requirement creates an excessive constraint on ADU production and that has not been our experience. 11. Privacy - Section 18.09.040(j)(2)(A) Privacy: The section states, “Second story doors and decks shall not face a neighboring dwelling unit.” This limitation, however, may place an impermissible constraint on an ADU. For example, excessive constraints would be placed on the creation of a second story ADU if residential units were located on all adjacent parcels. In addition, when operating in conjunction with Section 18.09.040(j), noted above, this restriction may prohibit ADUs created under subdivision (e) of Government Code section 65852.2. Accordingly, this provision must be revised to allow for more flexibility. The City could revise the first sentence of this section to state, “Second story doors and decks shall not face a neighboring dwelling unit, where feasible.” As noted above, the City will add a clarifying sentence at the top of Section 18.09.040 explaining that none of the regulations in PAMC 18.09.040 apply to subdivision (e) ADUs. We are not aware of any evidence that this simple design requirement creates an excessive constraint on ADU production and that has not been our experience. The City will clarify this is not applicable for subsection (e) ADUs. We are not aware of any evidence that this creates an excessive constraint and that has not been our experience. 12. Parking - Section 18.09.040(k)(4) Parking: The ordinance indicates if covered parking for a unit is provided in any district, the maximum size of the covered parking area for the accessory dwelling unit is 220 square feet. Further, under this section, the space for the covered parking count towards the total floor area for the site and the ADU if attached to the unit. Covered parking should not count towards the total floor area of the site as if it would unduly limit the allowable size of an ADU established by state law, nor should it directly count toward the area available for the ADU. Although standards within an underlying zone may apply when noted in the adopted ADU ordinance, they may not be more restrictive than those contained in state statute. (See, e.g., Gov. Code, § 65852.2, subs. (a)(1)(B), (a)(1)(D)(vii), (a)(1)(D)(x), (c), and (e).) The portion of this section stating “unit unless attached to the unit” should be deleted, or the section should otherwise be modified to comply with state law. As noted above, the City will add a clarifying sentence at the top of Section 18.09.040 explaining that none of the regulations in PAMC 18.09.040 apply to subdivision (e) ADUs. Currently, all covered parking in the single-family zones counts towards floor area for the site and dwelling unit. The City does not understand how this creates a standard that is more restrictive than that contained in state statute; none of the subsections cited in your letter speak to whether a garage for an ADU must be exempted from the unit size for the ADU. Moreover, this provision does DocuSign Envelope ID: 26247F48-AB81-46DC-AE75-91A87A8EE538 CITY OF PALO ALTO | 250 HAMILTON AVENUE, PALO ALTO, CA. 94301 | 650-329-2441 not create a constraint on ADU production, as a property owner may always choose to provide a detached garage, uncovered parking, or no parking at all for the ADU. The City has concerns that allowing attached garages onto these structures will incentivize individuals to illegally expand the unit into the garage, which would both exceed the City’s ordinance, contain unpermitted construction, and potentially place the health and safety of the occupants at risk. Sincerely, Jonathan Lait Director of Planning and Development Services DocuSign Envelope ID: 26247F48-AB81-46DC-AE75-91A87A8EE538 Certificate Of Completion Envelope Id: 26247F48AB8146DCAE7591A87A8EE538 Status: Completed Subject: Please DocuSign: 2022-02-02 Draft HCD ADU Letter response.docx Source Envelope: Document Pages: 6 Signatures: 1 Envelope Originator: Certificate Pages: 2 Initials: 0 Madina Klicheva AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 Madina.Klicheva@CityofPaloAlto.org IP Address: 199.33.32.254 Record Tracking Status: Original 2/3/2022 4:39:53 PM Holder: Madina Klicheva Madina.Klicheva@CityofPaloAlto.org Location: DocuSign Security Appliance Status: Connected Pool: StateLocal Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign Signer Events Signature Timestamp Jonathan Lait Jonathan.Lait@CityofPaloAlto.org Interim Director Planning and Community Environment City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Uploaded Signature Image Using IP Address: 99.88.42.180 Sent: 2/3/2022 4:42:20 PM Viewed: 2/3/2022 4:42:59 PM Signed: 2/3/2022 4:43:06 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Garrett Sauls Garrett.Sauls@CityofPaloAlto.org Associate Planner Security Level: Email, Account Authentication (None) Sent: 2/3/2022 4:43:08 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Rachael Tanner Rachael.Tanner@CityofPaloAlto.org Assistant Director of Planning and Development Services Security Level: Email, Account Authentication (None) Sent: 2/3/2022 4:43:08 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 2/3/2022 4:42:20 PM Certified Delivered Security Checked 2/3/2022 4:42:59 PM Signing Complete Security Checked 2/3/2022 4:43:06 PM Completed Security Checked 2/3/2022 4:43:08 PM Payment Events Status Timestamps STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 2020 W. El Camino Avenue, Suite 500 Sacramento, CA 95833 (916) 263-2911 / FAX (916) 263-7453 www.hcd.ca.gov December 21, 2022 Jonathan Lait, Director Planning and Development Services City of Palo Alto 250 Hamilton Avenue, 5th Floor Palo Alto, CA 94301 Dear Jonathan Lait: RE: City of Palo Alto Accessory Dwelling Unit (ADU) Ordinance – Letter of Technical Assistance The California Department of Housing and Community Development (HCD) thanks the City of Palo Alto (City) for submitting accessory dwelling unit (ADU) Ordinance Number 5507 (Ordinance) and for its response to HCD’s December 23, 2021, written findings of non-compliance. HCD appreciates the time and effort the City took in crafting its February 3, 2022, response, and for the conversation between City staff and HCD Analyst Lauren Lajoie on February 2, 2022. Nevertheless, HCD has concerns with the City’s response as it fails to address identified inconsistencies between the City’s ADU ordinance and State ADU Law, as outlined in this letter. HCD requests that the City respond to this letter no later than January 20, 2023, with a detailed plan of action and timeline, to bring its Ordinance into compliance pursuant to Government Code section 65852.2, subdivision (h)(2)(B). Background and Summary of Issues In its December 23, 2021, findings, HCD detailed where it found the Ordinance violates Government Code section 65852.2. In its February 3, 2022, letter, the City responded point by point to the findings as they were presented in the HCD letter. While the responses indicate a willingness to come into compliance with state law, HCD remains concerned that the proposed changes to the City’s Ordinance are insufficient. This letter will address HCD’s findings for which the City’s response and/or commitment to correct was not satisfactory and where HCD still considers an inconsistency between the Ordinance and State ADU Law. 1) HCD’s Original Finding Daylight Plane - Section 18.09.040(b): Table 2 states that "daylight plane" acts as a limit on the height of ADUs. In many instances, this may not be a problem; however, daylight plane concerns cannot be used to unduly limit the height of an ADU. ADUs Jonathan Lait, Director of Planning and Development Services Page 2 are permitted up to 16 feet high. (Gov. Code, § 65852.2, subds. (c)(2)(C), (e)(1)(B)(ii).) Therefore, in considering restrictions that the City is imposing on ADUs for daylight planes, the ordinance should note the 16-foot height allowable for ADUs. This Table must be amended to clarify this point. Palo Alto’s Response “Please note that the City’s daylight plane regulations do not apply to subdivision (e) ADUs, which are governed by PAMC Section 18.09.030. The City will add a clarifying sentence at the top of Section 18.09.040 explaining that none of the regulations in PAMC 18.09.040 apply to subdivision (e) ADUs. In addition, the City will add a clarifying statement that the regulations in PAMC 18.09.040 are not intended to limit the conversion of existing structures to ADUs or JADUs. For all other ADUs; however, the City has requested clarity on HCD’s position on daylight plane on numerous occasions, most recently by email dated August 8, 2021. Please see this email, which is attached, for an explanation of the City’s position. The City looks forward to continued discussion of this topic.” HCD’s Follow-up Response On February 23, 2022, HCD received a copy of an email from Assistant City Attorney (ACA) Albert Yang dated August 30, 2021. ACA Yang sought clarification on behalf of the City on whether local government could enforce a development standard that would require that any portion of an ADU fall below 16 feet in height. The email states: ”Subdivision (c)(2)(C) provides that a local agency may not establish “[1] any other minimum or maximum size for an accessory dwelling unit, [2] size based upon a percentage of the proposed or existing primary dwelling, or [3] limits on lot coverage, [4] floor area ratio, [5] open space, and [6] minimum lot size [. . .] that does not permit at least an 800 square foot accessory dwelling unit that is at least 16 feet in height with four-foot side and rear yard setbacks to be constructed in compliance with all other local development standards.” ACA Yang argues that the law is very specific regarding the development standards addressed and it (the subdivision) specifically recognizes that the list does not encompass all development standards. ACA Yang states, “The specific development standards addressed in subdivision (c)(2)(C) do not include daylight plane standards.” ACA Yang impliedly concludes that because the development standards, which ACA Yang numbered from [1] through [6], do not list daylight plane standards, the City may impose daylight plane standards over the minimum 16-foot height requirement. However, the City incorrectly cited subdivision (c)(2)(C) above; thereby, creating a list of “development standards” from portions of (c)(2)(A) and (c)(2)(B)(i) and (ii) and conflated these with “other local development standards” found in subdivision (c)(2)(C). Accurately cited, subdivision (c)(2)(C) states: (C) Any other minimum or maximum size for an accessory dwelling unit, size based upon a percentage of the proposed or existing primary dwelling, or limits on lot Jonathan Lait, Director of Planning and Development Services Page 3 coverage, floor area ratio, open space, and minimum lot size, for either attached or detached dwellings that does not permit at least an 800 square foot accessory dwelling unit that is at least 16 feet in height with four-foot side and rear yard setbacks to be constructed in compliance with all other local development standards. State ADU Law authorizes a local agency to establish the minimum and maximum size requirements for ADUs in subdivision (c)(1), but any such size requirement must allow for a minimum height of 16 feet while being constructed in compliance with all other local development standards. This height requirement is meant to be in harmony with local development standards. Because the subdivision has set the minimum height, authorized by statute, local design standards set in the ordinance cannot invalidate this provision, pursuant to Government Code section 65852.2 (a)(5). Therefore, the minimum height of all proposed ADUs is 16 feet and cannot be limited by Daylight Plane restrictions. Table 2 must be amended to clarify this point. Please note that SB 897 (2022), effective January 1, 2023, amends this subdivision, and adds provisions regarding the minimum height for detached and attached ADUs. 2) HCD’s Original Finding Floor Area & JADUs - Section 18.09.040(b): Development standards can account for ADUs in their measurement of the floor area restrictions or ratio (FAR). But these standards may not account for or consider JADUs. A JADU may not be included in this calculation, because a JADU is a unit that is contained entirely within a single- family residence. (Gov. Code § 65852.22, subd. (h)(1).) Footnote 4 of Table 2 impermissibly includes JADUs as part of the FAR calculations. This footnote must be amended to clarify this point. Palo Alto’s Response “Footnote 4 of Table 2 provides additional FAR on a site for ADUs and JADUs. This is an incentive to promote production of such units without limiting the development potential of a primary unit. Because a JADU is contained entirely within the space of a single-family residence, it would normally be included in the floor area of the primary unit. Footnote 4 provides an opportunity for a property owner to exempt all JADU square footage from the calculation of floor area for the primary unit. The removal of JADUs from footnote 4 would only serve to restrict the development of JADUs. The City will attempt to clarify the language of this footnote.” HCD’s Follow-up Response HCD supports the City’s attempt to add clarifying language. Converting an area within an existing home should not be counted. To clarify footnote 4 in Table 2, the City could include, for example, "This provision applies to JADUs in proposed single-family dwellings, or remodels that increase the square footage of a single- family dwelling.” Jonathan Lait, Director of Planning and Development Services Page 4 3) HCD’s Original Finding Noise-Producing Equipment - Section 18.09.040(h): Local agencies may impose development standards on ADUs; however, these standards shall not exceed state standards. Section 18.09.040(h) states that noise-producing equipment “shall be located outside of the setbacks.” This section must be revised to only refer to ADUs since setbacks are not required for JADUs. In addition, this setback for noise- producing equipment for ADUs must be revised to make clear that this setback requirement will not impede the minimum state standards of four-foot setbacks. (Gov. Code, § 65852.2, subd. (c)(2)(C)). Palo Alto’s Response “As noted above, the City will add a clarifying statement that the regulations in PAMC 18.09.040 are not intended to limit the conversion of existing structures to ADUs or JADUs. For new construction; however, the City permits JADUs to build at a lesser setback than a single-family home normally would. Therefore, the removal of JADUs from this section will only serve to restrict the development of JADUs. “Additionally, the City’s ordinance states that noise producing equipment needs to be placed outside the setback for an ADU or JADU. This means that the noise producing equipment itself cannot be placed closer than four feet to a property line for either type of structure; not that the ADU or JADU cannot be placed at those locations. This is consistent with the state setback requirements for an ADU.” HCD’s Follow-up Response JADUs are entirely within the walls of a proposed or existing single-family dwelling and as such not subject to any setback requirements. Therefore, the City should remove the reference to JADU from Section 18.09.040(h). The City writes, “For new construction; however, the City permits JADUs to be built at a lesser setback than a single-family home normally would.” Please clarify this statement for us. HCD applauds the City’s intention to promote JADUs by relaxing setback requirements. However, since setbacks do not apply to JADUs, the City would have to relax the setback requirements for the primary single-family dwelling to achieve the desired effect. 4) HCD’s Original Finding Corner Lots - Section 18.09.040(j) Design: This section states, “Except on corner lots, the unit shall not have an entranceway facing the same lot line (property line) as the entranceway to the main dwelling unit unless the entranceway to the accessory unit is located in the rear half of the lot. Exterior staircases to second floor units shall be located towards the interior side or rear yard of the property.” These standards appear to apply only to the creation of ADUs and may unduly restrict the placement of an ADU on some lots. Local development standards provided by ordinance pursuant to subdivisions (a) through (d) of Government Code section 65852.2 do not apply to ADUs created under subdivision (e). Please consider eliminating this restriction or modifying it such that it applies “when feasible.” Jonathan Lait, Director of Planning and Development Services Page 5 Palo Alto’s Response “As noted above, the City will add a clarifying sentence at the top of Section 18.09.040 explaining that none of the regulations in PAMC 18.09.040 apply to subdivision (e) ADUs. The City will clarify this is not applicable for subsection (e) ADUs. We are not aware of any evidence that this simple design requirement creates an excessive constraint on ADU production and that has not been our experience.” HCD’s Follow-Up Response Requirements such as stipulating the facing of entranceways or the location of stairways may unduly restrict the creation of ADUs on some lots. Statute for both ADUs (Gov. Code, § 65852.2, subd. (e)(1)(A)(ii)) and JADUs (Gov. Code, § 65852.22, subd. (a)(5)) require independent entry into the unit, and a constraint on the location of an entry door may prohibit the creation of an additional housing unit. In addition, this requirement could add significant expense if entry doors must be installed in an exterior wall instead of utilizing an existing doorway facing the same direction as the entryway to the primary dwelling. The City must either eliminate this restriction or modify it such that it applies “when feasible.” 5) HCD’s Original Finding Parking - Section 18.09.040(k)(iv) Parking: The ordinance indicates if covered parking for a unit is provided in any district, the maximum size of the covered parking area for the accessory dwelling unit is 220 square feet. Further, under this section, the space for the covered parking count towards the total floor area for the site and the ADU if attached to the unit. Covered parking should not count towards the total floor area of the site as if it would unduly limit the allowable size of an ADU established by state law, nor should it directly count toward the area available for the ADU. Although standards within an underlying zone may apply when noted in the adopted ADU ordinance, they may not be more restrictive than those contained in state statute. (See, e.g., Gov. Code, § 65852.2, subs. (a)(1)(B), (a)(1)(D)(vii), (a)(1)(D)(x), (c), and (e).) The portion of this section stating “unit unless attached to the unit” should be deleted, or the section should otherwise be modified to comply with state law. Palo Alto’s Response “As noted above, the City will add a clarifying sentence at the top of Section 18.09.040 explaining that none of the regulations in PAMC 18.09.040 apply to subdivision (e) ADUs. “Currently, all covered parking in the single-family zones counts towards floor area for the site and dwelling unit. The City does not understand how this creates a standard that is more restrictive than that contained in state statute; none of the subsections cited in your letter speak to whether a garage for an ADU must be Jonathan Lait, Director of Planning and Development Services Page 6 exempted from the unit size for the ADU. Moreover, this provision does not create a constraint on ADU production, as a property owner may always choose to provide a detached garage, uncovered parking, or no parking at all for the ADU. “The City has concerns that allowing attached garages onto these structures will incentivize individuals to illegally expand the unit into the garage, which would both exceed the City's ordinance, contain unpermitted construction, and potentially place the health and safety of the occupants at risk.” HCD’s Follow-up Response Covered parking does not count towards the total floor area of the ADU. An ADU is defined in Government Code section 65852.2, subdivision (j)(1), as “complete independent living facilities,” and subdivision (j)(4) further specifies that the living area for the ADU “does not include a garage...” Thus, a covered parking space or garage, whether or not attached to a unit, would be considered “non-livable” space. Therefore, as stated in our original finding, covered parking should not count towards the total floor area of the site as it would unduly limit the allowable size of an ADU established by state law. Similarly, it should not directly count toward the area available for the ADU, as this could also restrict the size of the ADU. The addition of garage space to the ADUs livable space would violate ADU size requirements found in Government Code section 65852.2, subdivisions (a)(1)(D)(iv) and (v), and (c). While the City raises concerns of potential illegal expansion, the City may not adopt an ordinance that would violate State ADU Law. The City may rely on its enforcement of codes and standards to mitigate its concerns. The City should remove the portion of this section stating “unless attached to the unit” or otherwise modify the section to comply with State ADU Law. Conclusion Given the deficiencies described above and in HCD’s December 23, 2021, letter, the City’s Ordinance is inconsistent with State ADU Law. HCD requests that the City respond to this letter no later than January 20, 2023, with a detailed plan of action and timeline, to bring its Ordinance into compliance pursuant to Government Code section 65852.2, subdivision (h)(2)(B). Specifically, to bring its ADU ordinance into compliance, the City must either amend the Ordinance according to HCD’s findings to comply with State ADU Law (Gov. Code, § 65852.2, subd. (h)(2)(B)(i)) or readopt the Ordinance without changes. Should the City choose to readopt the Ordinance without the changes specified by HCD, the City must include findings in its resolution that explain the reasons the City finds that the Ordinance complies with State ADU Law despite the findings made by HCD. (Gov. Code, § 65852.2, subd. (h)(2)(B)(ii), (h)(3)(A).) Jonathan Lait, Director of Planning and Development Services Page 7 HCD will review and consider any plan of action and timeline received from the City before January 20, 2023, in advance of taking further action authorized by Government Code section 65852.2. HCD appreciates the City’s efforts provided in the preparation and adoption of the Ordinance and welcomes the opportunity to assist the City in fully complying with State ADU Law. Please feel free to contact Mike Van Gorder, of our staff, at (916) 776-7541 or at mike.vangorder@hcd.ca.gov. Sincerely, Shannan West Housing Accountability Unit Chief January 13, 2023 Mike Van Gorder Housing & Community Development Division of Housing Policy Development 2020 W. El Camino Avenue, Suite 500 Sacramento, CA 95833 Mike.VanGorder@hcd.ca.gov Dear Mr. Van Gorder, Thank you for the telephone call today regarding HCD’s letter dated December 21, 2022, which is attached to and referenced in this response. Staff appreciates HCD’s thorough review of the City’s ADU ordinance and consideration of the City’s prior comments in response to HCD compliance concerns. There are five outstanding issues referenced in the letter related to various development standards. City staff responses to each topic area is provided below; in short, staff will recommend that the City’s ordinance be updated in accordance with HCD’s comments. 1. Daylight Plane. Staff understands HCD’s response to mean that all portions of an ADU must be permitted at the heights now provided Government Code section 65852.2(c)(2)(D). City staff will recommend to its legislative body updating the ordinance to reflect that daylight plane does not limit ADU heights below the heights provided in the Government Code. 2. Floor Area and JADUs. The City’s intention with respect to JADUs has always been that they will not impact the development potential for single-family dwelling, whether through floor area, lot coverage, or any other development standard. The City believes this is consistent with HCD’s direction and will ensure that its ordinance reflects this intention in a manner that makes sense in the context and structure of the City’s other zoning regulations. 3. Noise Producing Equipment/JADU setbacks. The City does not believe there is a substantive disagreement in this area. Typically, in Palo Alto, new construction related to a single-family residence requires a six-foot side yard and 20-foot rear yard setback. However, as an incentive for JADU production, the City’s zoning regulations provide a more lenient four-foot setback for new construction that is proposed to contain a JADU. While, it may be technically more accurate to call this this four-foot setback a “setback for the new construction portion of a single-family home that is dedicated to a JADU,” we DocuSign Envelope ID: 4E99A082-32FD-4318-B448-A9330E581F35 believe it is easier for applicants and staff to refer to this as a “setback for a new construction JADU.” Nevertheless, staff will explore whether there are clearer ways to express this in the upcoming ADU code amendment. With respect to the topic of noise producing equipment, the City’s municipal regulations prohibit such freestanding or attached appurtenances from being located closer to the property line than is already allowed by state law for the ADU/JADU structure. The City is currently working on amendments to the regulations pertaining to certain noise producing equipment to allow greater flexibility for the primary unit in an effort to advance the City’s carbon reduction goals. 4. Corner Lots. The City continues to be unaware of any evidence that a simple objective design requirement related to entryways creates an excessive constraint on ADU production – that has certainly not been our experience processing over 527 ADU permits since 2018. Nevertheless, City staff will recommend an additional clarifying statement to the effect of “when feasible,” or removal of this provision altogether. 5. Parking. The City was not able to find a relationship in state law between the term “living area” and minimum or maximum sizes for an ADU. Indeed, the term “living area” is only used in Gov. Code 65852.2(a)(1)(D)(vii) with respect to conversion of existing structures. Nonetheless, the City understands HCD’s position that garage area should not count toward the “size” of an ADU. City staff will recommend removal of the phrase “unless attached to the unit”, as suggested by HCD. City staff intends to propose amendments to the City’s ADU ordinance consistent with HCD direction at the earliest practical opportunity. At this time, staff anticipates a hearing before the Planning and Transportation Commission (PTC) by the end of March to discuss and address the requested changes from HCD. Following the PTC’s recommendation, staff will then place the ordinance on the City Council’s agenda for adoption; anticipated for May, if not sooner. If the City deviates from this schedule, staff will contact HCD and provide relevant updates. Thank you again for reviewing our response letters, if you have any questions, please contact me at (650) 329-2676 or by email at jonathan.lait@cityofpaloalto.org. Sincerely, Jonathan Lait Director of Planning and Development Services Attachment: HCD Letter, dated December 21, 2022 DocuSign Envelope ID: 4E99A082-32FD-4318-B448-A9330E581F35 STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 2020 W. El Camino Avenue, Suite 500 Sacramento, CA 95833 (916) 263-2911 / FAX (916) 263-7453 www.hcd.ca.gov December 21, 2022 Jonathan Lait, Director Planning and Development Services City of Palo Alto 250 Hamilton Avenue, 5th Floor Palo Alto, CA 94301 Dear Jonathan Lait: RE: City of Palo Alto Accessory Dwelling Unit (ADU) Ordinance – Letter of Technical Assistance The California Department of Housing and Community Development (HCD) thanks the City of Palo Alto (City) for submitting accessory dwelling unit (ADU) Ordinance Number 5507 (Ordinance) and for its response to HCD’s December 23, 2021, written findings of non-compliance. HCD appreciates the time and effort the City took in crafting its February 3, 2022, response, and for the conversation between City staff and HCD Analyst Lauren Lajoie on February 2, 2022. Nevertheless, HCD has concerns with the City’s response as it fails to address identified inconsistencies between the City’s ADU ordinance and State ADU Law, as outlined in this letter. HCD requests that the City respond to this letter no later than January 20, 2023, with a detailed plan of action and timeline, to bring its Ordinance into compliance pursuant to Government Code section 65852.2, subdivision (h)(2)(B). Background and Summary of Issues In its December 23, 2021, findings, HCD detailed where it found the Ordinance violates Government Code section 65852.2. In its February 3, 2022, letter, the City responded point by point to the findings as they were presented in the HCD letter. While the responses indicate a willingness to come into compliance with state law, HCD remains concerned that the proposed changes to the City’s Ordinance are insufficient. This letter will address HCD’s findings for which the City’s response and/or commitment to correct was not satisfactory and where HCD still considers an inconsistency between the Ordinance and State ADU Law. 1) HCD’s Original Finding Daylight Plane - Section 18.09.040(b): Table 2 states that "daylight plane" acts as a limit on the height of ADUs. In many instances, this may not be a problem; however, daylight plane concerns cannot be used to unduly limit the height of an ADU. ADUs DocuSign Envelope ID: 4E99A082-32FD-4318-B448-A9330E581F35 Jonathan Lait, Director of Planning and Development Services Page 2 are permitted up to 16 feet high. (Gov. Code, § 65852.2, subds. (c)(2)(C), (e)(1)(B)(ii).) Therefore, in considering restrictions that the City is imposing on ADUs for daylight planes, the ordinance should note the 16-foot height allowable for ADUs. This Table must be amended to clarify this point. Palo Alto’s Response “Please note that the City’s daylight plane regulations do not apply to subdivision (e) ADUs, which are governed by PAMC Section 18.09.030. The City will add a clarifying sentence at the top of Section 18.09.040 explaining that none of the regulations in PAMC 18.09.040 apply to subdivision (e) ADUs. In addition, the City will add a clarifying statement that the regulations in PAMC 18.09.040 are not intended to limit the conversion of existing structures to ADUs or JADUs. For all other ADUs; however, the City has requested clarity on HCD’s position on daylight plane on numerous occasions, most recently by email dated August 8, 2021. Please see this email, which is attached, for an explanation of the City’s position. The City looks forward to continued discussion of this topic.” HCD’s Follow-up Response On February 23, 2022, HCD received a copy of an email from Assistant City Attorney (ACA) Albert Yang dated August 30, 2021. ACA Yang sought clarification on behalf of the City on whether local government could enforce a development standard that would require that any portion of an ADU fall below 16 feet in height. The email states: ”Subdivision (c)(2)(C) provides that a local agency may not establish “[1] any other minimum or maximum size for an accessory dwelling unit, [2] size based upon a percentage of the proposed or existing primary dwelling, or [3] limits on lot coverage, [4] floor area ratio, [5] open space, and [6] minimum lot size [. . .] that does not permit at least an 800 square foot accessory dwelling unit that is at least 16 feet in height with four-foot side and rear yard setbacks to be constructed in compliance with all other local development standards.” ACA Yang argues that the law is very specific regarding the development standards addressed and it (the subdivision) specifically recognizes that the list does not encompass all development standards. ACA Yang states, “The specific development standards addressed in subdivision (c)(2)(C) do not include daylight plane standards.” ACA Yang impliedly concludes that because the development standards, which ACA Yang numbered from [1] through [6], do not list daylight plane standards, the City may impose daylight plane standards over the minimum 16-foot height requirement. However, the City incorrectly cited subdivision (c)(2)(C) above; thereby, creating a list of “development standards” from portions of (c)(2)(A) and (c)(2)(B)(i) and (ii) and conflated these with “other local development standards” found in subdivision (c)(2)(C). Accurately cited, subdivision (c)(2)(C) states: (C) Any other minimum or maximum size for an accessory dwelling unit, size based upon a percentage of the proposed or existing primary dwelling, or limits on lot DocuSign Envelope ID: 4E99A082-32FD-4318-B448-A9330E581F35 Jonathan Lait, Director of Planning and Development Services Page 3 coverage, floor area ratio, open space, and minimum lot size, for either attached or detached dwellings that does not permit at least an 800 square foot accessory dwelling unit that is at least 16 feet in height with four-foot side and rear yard setbacks to be constructed in compliance with all other local development standards. State ADU Law authorizes a local agency to establish the minimum and maximum size requirements for ADUs in subdivision (c)(1), but any such size requirement must allow for a minimum height of 16 feet while being constructed in compliance with all other local development standards. This height requirement is meant to be in harmony with local development standards. Because the subdivision has set the minimum height, authorized by statute, local design standards set in the ordinance cannot invalidate this provision, pursuant to Government Code section 65852.2 (a)(5). Therefore, the minimum height of all proposed ADUs is 16 feet and cannot be limited by Daylight Plane restrictions. Table 2 must be amended to clarify this point. Please note that SB 897 (2022), effective January 1, 2023, amends this subdivision, and adds provisions regarding the minimum height for detached and attached ADUs. 2) HCD’s Original Finding Floor Area & JADUs - Section 18.09.040(b): Development standards can account for ADUs in their measurement of the floor area restrictions or ratio (FAR). But these standards may not account for or consider JADUs. A JADU may not be included in this calculation, because a JADU is a unit that is contained entirely within a single- family residence. (Gov. Code § 65852.22, subd. (h)(1).) Footnote 4 of Table 2 impermissibly includes JADUs as part of the FAR calculations. This footnote must be amended to clarify this point. Palo Alto’s Response “Footnote 4 of Table 2 provides additional FAR on a site for ADUs and JADUs. This is an incentive to promote production of such units without limiting the development potential of a primary unit. Because a JADU is contained entirely within the space of a single-family residence, it would normally be included in the floor area of the primary unit. Footnote 4 provides an opportunity for a property owner to exempt all JADU square footage from the calculation of floor area for the primary unit. The removal of JADUs from footnote 4 would only serve to restrict the development of JADUs. The City will attempt to clarify the language of this footnote.” HCD’s Follow-up Response HCD supports the City’s attempt to add clarifying language. Converting an area within an existing home should not be counted. To clarify footnote 4 in Table 2, the City could include, for example, "This provision applies to JADUs in proposed single-family dwellings, or remodels that increase the square footage of a single- family dwelling.” DocuSign Envelope ID: 4E99A082-32FD-4318-B448-A9330E581F35 Jonathan Lait, Director of Planning and Development Services Page 4 3) HCD’s Original Finding Noise-Producing Equipment - Section 18.09.040(h): Local agencies may impose development standards on ADUs; however, these standards shall not exceed state standards. Section 18.09.040(h) states that noise-producing equipment “shall be located outside of the setbacks.” This section must be revised to only refer to ADUs since setbacks are not required for JADUs. In addition, this setback for noise- producing equipment for ADUs must be revised to make clear that this setback requirement will not impede the minimum state standards of four-foot setbacks. (Gov. Code, § 65852.2, subd. (c)(2)(C)). Palo Alto’s Response “As noted above, the City will add a clarifying statement that the regulations in PAMC 18.09.040 are not intended to limit the conversion of existing structures to ADUs or JADUs. For new construction; however, the City permits JADUs to build at a lesser setback than a single-family home normally would. Therefore, the removal of JADUs from this section will only serve to restrict the development of JADUs. “Additionally, the City’s ordinance states that noise producing equipment needs to be placed outside the setback for an ADU or JADU. This means that the noise producing equipment itself cannot be placed closer than four feet to a property line for either type of structure; not that the ADU or JADU cannot be placed at those locations. This is consistent with the state setback requirements for an ADU.” HCD’s Follow-up Response JADUs are entirely within the walls of a proposed or existing single-family dwelling and as such not subject to any setback requirements. Therefore, the City should remove the reference to JADU from Section 18.09.040(h). The City writes, “For new construction; however, the City permits JADUs to be built at a lesser setback than a single-family home normally would.” Please clarify this statement for us. HCD applauds the City’s intention to promote JADUs by relaxing setback requirements. However, since setbacks do not apply to JADUs, the City would have to relax the setback requirements for the primary single-family dwelling to achieve the desired effect. 4) HCD’s Original Finding Corner Lots - Section 18.09.040(j) Design: This section states, “Except on corner lots, the unit shall not have an entranceway facing the same lot line (property line) as the entranceway to the main dwelling unit unless the entranceway to the accessory unit is located in the rear half of the lot. Exterior staircases to second floor units shall be located towards the interior side or rear yard of the property.” These standards appear to apply only to the creation of ADUs and may unduly restrict the placement of an ADU on some lots. Local development standards provided by ordinance pursuant to subdivisions (a) through (d) of Government Code section 65852.2 do not apply to ADUs created under subdivision (e). Please consider eliminating this restriction or modifying it such that it applies “when feasible.” DocuSign Envelope ID: 4E99A082-32FD-4318-B448-A9330E581F35 Jonathan Lait, Director of Planning and Development Services Page 5 Palo Alto’s Response “As noted above, the City will add a clarifying sentence at the top of Section 18.09.040 explaining that none of the regulations in PAMC 18.09.040 apply to subdivision (e) ADUs. The City will clarify this is not applicable for subsection (e) ADUs. We are not aware of any evidence that this simple design requirement creates an excessive constraint on ADU production and that has not been our experience.” HCD’s Follow-Up Response Requirements such as stipulating the facing of entranceways or the location of stairways may unduly restrict the creation of ADUs on some lots. Statute for both ADUs (Gov. Code, § 65852.2, subd. (e)(1)(A)(ii)) and JADUs (Gov. Code, § 65852.22, subd. (a)(5)) require independent entry into the unit, and a constraint on the location of an entry door may prohibit the creation of an additional housing unit. In addition, this requirement could add significant expense if entry doors must be installed in an exterior wall instead of utilizing an existing doorway facing the same direction as the entryway to the primary dwelling. The City must either eliminate this restriction or modify it such that it applies “when feasible.” 5) HCD’s Original Finding Parking - Section 18.09.040(k)(iv) Parking: The ordinance indicates if covered parking for a unit is provided in any district, the maximum size of the covered parking area for the accessory dwelling unit is 220 square feet. Further, under this section, the space for the covered parking count towards the total floor area for the site and the ADU if attached to the unit. Covered parking should not count towards the total floor area of the site as if it would unduly limit the allowable size of an ADU established by state law, nor should it directly count toward the area available for the ADU. Although standards within an underlying zone may apply when noted in the adopted ADU ordinance, they may not be more restrictive than those contained in state statute. (See, e.g., Gov. Code, § 65852.2, subs. (a)(1)(B), (a)(1)(D)(vii), (a)(1)(D)(x), (c), and (e).) The portion of this section stating “unit unless attached to the unit” should be deleted, or the section should otherwise be modified to comply with state law. Palo Alto’s Response “As noted above, the City will add a clarifying sentence at the top of Section 18.09.040 explaining that none of the regulations in PAMC 18.09.040 apply to subdivision (e) ADUs. “Currently, all covered parking in the single-family zones counts towards floor area for the site and dwelling unit. The City does not understand how this creates a standard that is more restrictive than that contained in state statute; none of the subsections cited in your letter speak to whether a garage for an ADU must be DocuSign Envelope ID: 4E99A082-32FD-4318-B448-A9330E581F35 Jonathan Lait, Director of Planning and Development Services Page 6 exempted from the unit size for the ADU. Moreover, this provision does not create a constraint on ADU production, as a property owner may always choose to provide a detached garage, uncovered parking, or no parking at all for the ADU. “The City has concerns that allowing attached garages onto these structures will incentivize individuals to illegally expand the unit into the garage, which would both exceed the City's ordinance, contain unpermitted construction, and potentially place the health and safety of the occupants at risk.” HCD’s Follow-up Response Covered parking does not count towards the total floor area of the ADU. An ADU is defined in Government Code section 65852.2, subdivision (j)(1), as “complete independent living facilities,” and subdivision (j)(4) further specifies that the living area for the ADU “does not include a garage...” Thus, a covered parking space or garage, whether or not attached to a unit, would be considered “non-livable” space. Therefore, as stated in our original finding, covered parking should not count towards the total floor area of the site as it would unduly limit the allowable size of an ADU established by state law. Similarly, it should not directly count toward the area available for the ADU, as this could also restrict the size of the ADU. The addition of garage space to the ADUs livable space would violate ADU size requirements found in Government Code section 65852.2, subdivisions (a)(1)(D)(iv) and (v), and (c). While the City raises concerns of potential illegal expansion, the City may not adopt an ordinance that would violate State ADU Law. The City may rely on its enforcement of codes and standards to mitigate its concerns. The City should remove the portion of this section stating “unless attached to the unit” or otherwise modify the section to comply with State ADU Law. Conclusion Given the deficiencies described above and in HCD’s December 23, 2021, letter, the City’s Ordinance is inconsistent with State ADU Law. HCD requests that the City respond to this letter no later than January 20, 2023, with a detailed plan of action and timeline, to bring its Ordinance into compliance pursuant to Government Code section 65852.2, subdivision (h)(2)(B). Specifically, to bring its ADU ordinance into compliance, the City must either amend the Ordinance according to HCD’s findings to comply with State ADU Law (Gov. Code, § 65852.2, subd. (h)(2)(B)(i)) or readopt the Ordinance without changes. Should the City choose to readopt the Ordinance without the changes specified by HCD, the City must include findings in its resolution that explain the reasons the City finds that the Ordinance complies with State ADU Law despite the findings made by HCD. (Gov. Code, § 65852.2, subd. (h)(2)(B)(ii), (h)(3)(A).) DocuSign Envelope ID: 4E99A082-32FD-4318-B448-A9330E581F35 Jonathan Lait, Director of Planning and Development Services Page 7 HCD will review and consider any plan of action and timeline received from the City before January 20, 2023, in advance of taking further action authorized by Government Code section 65852.2. HCD appreciates the City’s efforts provided in the preparation and adoption of the Ordinance and welcomes the opportunity to assist the City in fully complying with State ADU Law. Please feel free to contact Mike Van Gorder, of our staff, at (916) 776-7541 or at mike.vangorder@hcd.ca.gov. Sincerely, Shannan West Housing Accountability Unit Chief DocuSign Envelope ID: 4E99A082-32FD-4318-B448-A9330E581F35 State of California GOVERNMENT CODE Section 65852.2 65852.2. (a) (1) A local agency may, by ordinance, provide for the creation of accessory dwelling units in areas zoned to allow single-family or multifamily dwelling residential use. The ordinance shall do all of the following: (A) Designate areas within the jurisdiction of the local agency where accessory dwelling units may be permitted. The designation of areas may be based on the adequacy of water and sewer services and the impact of accessory dwelling units on traffic flow and public safety. A local agency that does not provide water or sewer services shall consult with the local water or sewer service provider regarding the adequacy of water and sewer services before designating an area where accessory dwelling units may be permitted. (B) (i) Impose objective standards on accessory dwelling units that include, but are not limited to, parking, height, setback, landscape, architectural review, maximum size of a unit, and standards that prevent adverse impacts on any real property that is listed in the California Register of Historical Resources. These standards shall not include requirements on minimum lot size. (ii) Notwithstanding clause (i), a local agency may reduce or eliminate parking requirements for any accessory dwelling unit located within its jurisdiction. (C) Provide that accessory dwelling units do not exceed the allowable density for the lot upon which the accessory dwelling unit is located, and that accessory dwelling units are a residential use that is consistent with the existing general plan and zoning designation for the lot. (D) Require the accessory dwelling units to comply with all of the following: (i) Except as provided in Section 65852.26, the accessory dwelling unit may be rented separate from the primary residence, but may not be sold or otherwise conveyed separate from the primary residence. (ii) The lot is zoned to allow single-family or multifamily dwelling residential use and includes a proposed or existing dwelling. (iii) The accessory dwelling unit is either attached to, or located within, the proposed or existing primary dwelling, including attached garages, storage areas or similar uses, or an accessory structure or detached from the proposed or existing primary dwelling and located on the same lot as the proposed or existing primary dwelling, including detached garages. (iv) If there is an existing primary dwelling, the total floor area of an attached accessory dwelling unit shall not exceed 50 percent of the existing primary dwelling. (v) The total floor area for a detached accessory dwelling unit shall not exceed 1,200 square feet. STATE OF CALIFORNIA AUTHENTICATED ELECTRONIC LEGAL MATERIAL (vi) No passageway shall be required in conjunction with the construction of an accessory dwelling unit. (vii) No setback shall be required for an existing living area or accessory structure or a structure constructed in the same location and to the same dimensions as an existing structure that is converted to an accessory dwelling unit or to a portion of an accessory dwelling unit, and a setback of no more than four feet from the side and rear lot lines shall be required for an accessory dwelling unit that is not converted from an existing structure or a new structure constructed in the same location and to the same dimensions as an existing structure. (viii) Local building code requirements that apply to detached dwellings, except that the construction of an accessory dwelling unit shall not constitute a Group R occupancy change under the local building code, as described in Section 310 of the California Building Code (Title 24 of the California Code of Regulations), unless the building official or enforcement agency of the local agency makes a written finding based on substantial evidence in the record that the construction of the accessory dwelling unit could have a specific, adverse impact on public health and safety. Nothing in this clause shall be interpreted to prevent a local agency from changing the occupancy code of a space that was unhabitable space or was only permitted for nonresidential use and was subsequently converted for residential use pursuant to this section. (ix) Approval by the local health officer where a private sewage disposal system is being used, if required. (x) (I) Parking requirements for accessory dwelling units shall not exceed one parking space per accessory dwelling unit or per bedroom, whichever is less. These spaces may be provided as tandem parking on a driveway. (II) Offstreet parking shall be permitted in setback areas in locations determined by the local agency or through tandem parking, unless specific findings are made that parking in setback areas or tandem parking is not feasible based upon specific site or regional topographical or fire and life safety conditions. (III) This clause shall not apply to an accessory dwelling unit that is described in subdivision (d). (xi) When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an accessory dwelling unit or converted to an accessory dwelling unit, the local agency shall not require that those offstreet parking spaces be replaced. (xii) Accessory dwelling units shall not be required to provide fire sprinklers if they are not required for the primary residence. The construction of an accessory dwelling unit shall not trigger a requirement for fire sprinklers to be installed in the existing primary dwelling. (2) The ordinance shall not be considered in the application of any local ordinance, policy, or program to limit residential growth. (3) (A) A permit application for an accessory dwelling unit or a junior accessory dwelling unit shall be considered and approved ministerially without discretionary review or a hearing, notwithstanding Section 65901 or 65906 or any local ordinance regulating the issuance of variances or special use permits. The permitting agency shall either approve or deny the application to create or serve an accessory dwelling unit or a junior accessory dwelling unit within 60 days from the date the permitting agency receives a completed application if there is an existing single-family or multifamily dwelling on the lot. If the permit application to create or serve an accessory dwelling unit or a junior accessory dwelling unit is submitted with a permit application to create a new single-family or multifamily dwelling on the lot, the permitting agency may delay approving or denying the permit application for the accessory dwelling unit or the junior accessory dwelling unit until the permitting agency approves or denies the permit application to create the new single-family or multifamily dwelling, but the application to create or serve the accessory dwelling unit or junior accessory dwelling unit shall be considered without discretionary review or hearing. If the applicant requests a delay, the 60-day time period shall be tolled for the period of the delay. If the local agency has not approved or denied the completed application within 60 days, the application shall be deemed approved. A local agency may charge a fee to reimburse it for costs incurred to implement this paragraph, including the costs of adopting or amending any ordinance that provides for the creation of an accessory dwelling unit. (B) If a permitting agency denies an application for an accessory dwelling unit or junior accessory dwelling unit pursuant to subparagraph (A), the permitting agency shall, within the time period described in subparagraph (A), return in writing a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the application can be remedied by the applicant. (4) The ordinance shall require that a demolition permit for a detached garage that is to be replaced with an accessory dwelling unit be reviewed with the application for the accessory dwelling unit and issued at the same time. (5) The ordinance shall not require, and the applicant shall not be otherwise required, to provide written notice or post a placard for the demolition of a detached garage that is to be replaced with an accessory dwelling unit, unless the property is located within an architecturally and historically significant historic district. (6) An existing ordinance governing the creation of an accessory dwelling unit by a local agency or an accessory dwelling ordinance adopted by a local agency shall provide an approval process that includes only ministerial provisions for the approval of accessory dwelling units and shall not include any discretionary processes, provisions, or requirements for those units, except as otherwise provided in this subdivision. If a local agency has an existing accessory dwelling unit ordinance that fails to meet the requirements of this subdivision, that ordinance shall be null and void and that agency shall thereafter apply the standards established in this subdivision for the approval of accessory dwelling units, unless and until the agency adopts an ordinance that complies with this section. (7) No other local ordinance, policy, or regulation shall be the basis for the delay or denial of a building permit or a use permit under this subdivision. (8) (A) This subdivision establishes the maximum standards that local agencies shall use to evaluate a proposed accessory dwelling unit on a lot that includes a proposed or existing single-family dwelling. No additional standards, other than those provided in this subdivision, shall be used or imposed, except that, subject to subparagraphs (B) and (C), a local agency may require an applicant for a permit issued pursuant to this subdivision to be an owner-occupant. (B) (i) Notwithstanding subparagraph (A), a local agency shall not impose an owner-occupant requirement on an accessory dwelling unit before January 1, 2025. (ii) Notwithstanding subparagraph (A), a local agency shall not impose an owner-occupant requirement on an accessory dwelling unit that was permitted between January 1, 2020, and January 1, 2025. (C) Notwithstanding subparagraphs (A) and (B), a local agency may require that an accessory dwelling unit be used for rentals of terms longer than 30 days. (9) A local agency may amend its zoning ordinance or general plan to incorporate the policies, procedures, or other provisions applicable to the creation of an accessory dwelling unit if these provisions are consistent with the limitations of this subdivision. (10) An accessory dwelling unit that conforms to this subdivision shall be deemed to be an accessory use or an accessory building and shall not be considered to exceed the allowable density for the lot upon which it is located, and shall be deemed to be a residential use that is consistent with the existing general plan and zoning designations for the lot. The accessory dwelling unit shall not be considered in the application of any local ordinance, policy, or program to limit residential growth. (b) (1) When a local agency that has not adopted an ordinance governing accessory dwelling units in accordance with subdivision (a) receives an application for a permit to create or serve an accessory dwelling unit pursuant to this subdivision, the local agency shall approve or disapprove the application ministerially without discretionary review pursuant to subdivision (a). The permitting agency shall either approve or deny the application to create or serve an accessory dwelling unit or a junior accessory dwelling unit within 60 days from the date the permitting agency receives a completed application if there is an existing single-family or multifamily dwelling on the lot. If the permit application to create or serve an accessory dwelling unit or a junior accessory dwelling unit is submitted with a permit application to create or serve a new single-family or multifamily dwelling on the lot, the permitting agency may delay approving or denying the permit application for the accessory dwelling unit or the junior accessory dwelling unit until the permitting agency approves or denies the permit application to create or serve the new single-family or multifamily dwelling, but the application to create or serve the accessory dwelling unit or junior accessory dwelling unit shall still be considered ministerially without discretionary review or a hearing. If the applicant requests a delay, the 60-day time period shall be tolled for the period of the delay. If the local agency has not approved or denied the completed application within 60 days, the application shall be deemed approved. (2) If a permitting agency denies an application for an accessory dwelling unit or junior accessory dwelling unit pursuant to paragraph (1), the permitting agency shall, within the time period described in paragraph (1), return in writing a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the application can be remedied by the applicant. (c) (1) Subject to paragraph (2), a local agency may establish minimum and maximum unit size requirements for both attached and detached accessory dwelling units. (2) Notwithstanding paragraph (1), a local agency shall not establish by ordinance any of the following: (A) A minimum square footage requirement for either an attached or detached accessory dwelling unit that prohibits an efficiency unit. (B) A maximum square footage requirement for either an attached or detached accessory dwelling unit that is less than either of the following: (i) 850 square feet. (ii) 1,000 square feet for an accessory dwelling unit that provides more than one bedroom. (C) Any requirement for a zoning clearance or separate zoning review or any other minimum or maximum size for an accessory dwelling unit, size based upon a percentage of the proposed or existing primary dwelling, or limits on lot coverage, floor area ratio, open space, front setbacks, and minimum lot size, for either attached or detached dwellings that does not permit at least an 800 square foot accessory dwelling unit with four-foot side and rear yard setbacks to be constructed in compliance with all other local development standards. (D) Any height limitation that does not allow at least the following, as applicable: (i) A height of 16 feet for a detached accessory dwelling unit on a lot with an existing or proposed single family or multifamily dwelling unit. (ii) A height of 18 feet for a detached accessory dwelling unit on a lot with an existing or proposed single family or multifamily dwelling unit that is within one-half of one mile walking distance of a major transit stop or a high-quality transit corridor, as those terms are defined in Section 21155 of the Public Resources Code. A local agency shall also allow an additional two feet in height to accommodate a roof pitch on the accessory dwelling unit that is aligned with the roof pitch of the primary dwelling unit. (iii) A height of 18 feet for a detached accessory dwelling unit on a lot with an existing or proposed multifamily, multistory dwelling. (iv) A height of 25 feet or the height limitation in the local zoning ordinance that applies to the primary dwelling, whichever is lower, for an accessory dwelling unit that is attached to a primary dwelling. This clause shall not require a local agency to allow an accessory dwelling unit to exceed two stories. (d) Notwithstanding any other law, and whether or not the local agency has adopted an ordinance governing accessory dwelling units in accordance with subdivision (a), all of the following shall apply: (1) The local agency shall not impose any parking standards for an accessory dwelling unit in any of the following instances: (A) Where the accessory dwelling unit is located within one-half mile walking distance of public transit. (B) Where the accessory dwelling unit is located within an architecturally and historically significant historic district. (C) Where the accessory dwelling unit is part of the proposed or existing primary residence or an accessory structure. (D) When onstreet parking permits are required but not offered to the occupant of the accessory dwelling unit. (E) When there is a car share vehicle located within one block of the accessory dwelling unit. (F) When a permit application for an accessory dwelling unit is submitted with a permit application to create a new single-family dwelling or a new multifamily dwelling on the same lot, provided that the accessory dwelling unit or the parcel satisfies any other criteria listed in this paragraph. (2) The local agency shall not deny an application for a permit to create an accessory dwelling unit due to the correction of nonconforming zoning conditions, building code violations, or unpermitted structures that do not present a threat to public health and safety and are not affected by the construction of the accessory dwelling unit. (e) (1) Notwithstanding subdivisions (a) to (d), inclusive, a local agency shall ministerially approve an application for a building permit within a residential or mixed-use zone to create any of the following: (A) One accessory dwelling unit and one junior accessory dwelling unit per lot with a proposed or existing single-family dwelling if all of the following apply: (i) The accessory dwelling unit or junior accessory dwelling unit is within the proposed space of a single-family dwelling or existing space of a single-family dwelling or accessory structure and may include an expansion of not more than 150 square feet beyond the same physical dimensions as the existing accessory structure. An expansion beyond the physical dimensions of the existing accessory structure shall be limited to accommodating ingress and egress. (ii) The space has exterior access from the proposed or existing single-family dwelling. (iii) The side and rear setbacks are sufficient for fire and safety. (iv) The junior accessory dwelling unit complies with the requirements of Section 65852.22. (B) One detached, new construction, accessory dwelling unit that does not exceed four-foot side and rear yard setbacks for a lot with a proposed or existing single-family dwelling. The accessory dwelling unit may be combined with a junior accessory dwelling unit described in subparagraph (A). A local agency may impose the following conditions on the accessory dwelling unit: (i) A total floor area limitation of not more than 800 square feet. (ii) A height limitation as provided in clause (i), (ii), or (iii) as applicable, of subparagraph (D) of paragraph (2) of subdivision (c). (C) (i) Multiple accessory dwelling units within the portions of existing multifamily dwelling structures that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages, if each unit complies with state building standards for dwellings. (ii) A local agency shall allow at least one accessory dwelling unit within an existing multifamily dwelling and shall allow up to 25 percent of the existing multifamily dwelling units. (D) (i) Not more than two accessory dwelling units that are located on a lot that has an existing or proposed multifamily dwelling, but are detached from that multifamily dwelling and are subject to a height limitation in clause (i), (ii), or (iii), as applicable, of subparagraph (D) of paragraph (2) of subdivision (c) and rear yard and side setbacks of no more than four feet. (ii) If the existing multifamily dwelling has a rear or side setback of less than four feet, the local agency shall not require any modification of the existing multifamily dwelling as a condition of approving the application to construct an accessory dwelling unit that satisfies the requirements of this subparagraph. (2) A local agency shall not require, as a condition for ministerial approval of a permit application for the creation of an accessory dwelling unit or a junior accessory dwelling unit, the correction of nonconforming zoning conditions. (3) The installation of fire sprinklers shall not be required in an accessory dwelling unit if sprinklers are not required for the primary residence. The construction of an accessory dwelling unit shall not trigger a requirement for fire sprinklers to be installed in the existing multifamily dwelling. (4) A local agency may require owner-occupancy for either the primary dwelling or the accessory dwelling unit on a single-family lot, subject to the requirements of paragraph (8) of subdivision (a). (5) A local agency shall require that a rental of the accessory dwelling unit created pursuant to this subdivision be for a term longer than 30 days. (6) A local agency may require, as part of the application for a permit to create an accessory dwelling unit connected to an onsite wastewater treatment system, a percolation test completed within the last five years, or, if the percolation test has been recertified, within the last 10 years. (7) Notwithstanding subdivision (c) and paragraph (1) a local agency that has adopted an ordinance by July 1, 2018, providing for the approval of accessory dwelling units in multifamily dwelling structures shall ministerially consider a permit application to construct an accessory dwelling unit that is described in paragraph (1), and may impose objective standards including, but not limited to, design, development, and historic standards on said accessory dwelling units. These standards shall not include requirements on minimum lot size. (f) (1) Fees charged for the construction of accessory dwelling units shall be determined in accordance with Chapter 5 (commencing with Section 66000) and Chapter 7 (commencing with Section 66012). (2) An accessory dwelling unit shall not be considered by a local agency, special district, or water corporation to be a new residential use for purposes of calculating connection fees or capacity charges for utilities, including water and sewer service, unless the accessory dwelling unit was constructed with a new single-family dwelling. (3) (A) A local agency, special district, or water corporation shall not impose any impact fee upon the development of an accessory dwelling unit less than 750 square feet. Any impact fees charged for an accessory dwelling unit of 750 square feet or more shall be charged proportionately in relation to the square footage of the primary dwelling unit. (B) For purposes of this paragraph, “impact fee” has the same meaning as the term “fee” is defined in subdivision (b) of Section 66000, except that it also includes fees specified in Section 66477. “Impact fee” does not include any connection fee or capacity charge charged by a local agency, special district, or water corporation. (4) For an accessory dwelling unit described in subparagraph (A) of paragraph (1) of subdivision (e), a local agency, special district, or water corporation shall not require the applicant to install a new or separate utility connection directly between the accessory dwelling unit and the utility or impose a related connection fee or capacity charge, unless the accessory dwelling unit was constructed with a new single-family dwelling. (5) For an accessory dwelling unit that is not described in subparagraph (A) of paragraph (1) of subdivision (e), a local agency, special district, or water corporation may require a new or separate utility connection directly between the accessory dwelling unit and the utility. Consistent with Section 66013, the connection may be subject to a connection fee or capacity charge that shall be proportionate to the burden of the proposed accessory dwelling unit, based upon either its square feet or the number of its drainage fixture unit (DFU) values, as defined in the Uniform Plumbing Code adopted and published by the International Association of Plumbing and Mechanical Officials, upon the water or sewer system. This fee or charge shall not exceed the reasonable cost of providing this service. (g) This section shall supersede a conflicting local ordinance. This section does not limit the authority of local agencies to adopt less restrictive requirements for the creation of an accessory dwelling unit. (h) (1) A local agency shall submit a copy of the ordinance adopted pursuant to subdivision (a) to the Department of Housing and Community Development within 60 days after adoption. After adoption of an ordinance, the department may submit written findings to the local agency as to whether the ordinance complies with this section. (2) (A) If the department finds that the local agency’s ordinance does not comply with this section, the department shall notify the local agency and shall provide the local agency with a reasonable time, no longer than 30 days, to respond to the findings before taking any other action authorized by this section. (B) The local agency shall consider the findings made by the department pursuant to subparagraph (A) and shall do one of the following: (i) Amend the ordinance to comply with this section. (ii) Adopt the ordinance without changes. The local agency shall include findings in its resolution adopting the ordinance that explain the reasons the local agency believes that the ordinance complies with this section despite the findings of the department. (3) (A) If the local agency does not amend its ordinance in response to the department’s findings or does not adopt a resolution with findings explaining the reason the ordinance complies with this section and addressing the department’s findings, the department shall notify the local agency and may notify the Attorney General that the local agency is in violation of state law. (B) Before notifying the Attorney General that the local agency is in violation of state law, the department may consider whether a local agency adopted an ordinance in compliance with this section between January 1, 2017, and January 1, 2020. (i) The department may review, adopt, amend, or repeal guidelines to implement uniform standards or criteria that supplement or clarify the terms, references, and standards set forth in this section. The guidelines adopted pursuant to this subdivision are not subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2. (j) As used in this section, the following terms mean: (1) “Accessory dwelling unit” means an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multifamily dwelling is or will be situated. An accessory dwelling unit also includes the following: (A) An efficiency unit. (B) A manufactured home, as defined in Section 18007 of the Health and Safety Code. (2) “Accessory structure” means a structure that is accessory and incidental to a dwelling located on the same lot. (3) “Efficiency unit” has the same meaning as defined in Section 17958.1 of the Health and Safety Code. (4) “Living area” means the interior habitable area of a dwelling unit, including basements and attics, but does not include a garage or any accessory structure. (5) “Local agency” means a city, county, or city and county, whether general law or chartered. (6) “Nonconforming zoning condition” means a physical improvement on a property that does not conform with current zoning standards. (7) “Objective standards” means standards that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal. (8) “Passageway” means a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the accessory dwelling unit. (9) “Permitting agency” means any entity that is involved in the review of a permit for an accessory dwelling unit or junior accessory dwelling unit and for which there is no substitute, including, but not limited to, applicable planning departments, building departments, utilities, and special districts. (10) “Proposed dwelling” means a dwelling that is the subject of a permit application and that meets the requirements for permitting. (11) “Public transit” means a location, including, but not limited to, a bus stop or train station, where the public may access buses, trains, subways, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public. (12) “Tandem parking” means that two or more automobiles are parked on a driveway or in any other location on a lot, lined up behind one another. (k) A local agency shall not issue a certificate of occupancy for an accessory dwelling unit before the local agency issues a certificate of occupancy for the primary dwelling. (l) Nothing in this section shall be construed to supersede or in any way alter or lessen the effect or application of the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code), except that the local government shall not be required to hold public hearings for coastal development permit applications for accessory dwelling units. (m) A local agency may count an accessory dwelling unit for purposes of identifying adequate sites for housing, as specified in subdivision (a) of Section 65583.1, subject to authorization by the department and compliance with this division. (n) In enforcing building standards pursuant to Article 1 (commencing with Section 17960) of Chapter 5 of Part 1.5 of Division 13 of the Health and Safety Code for an accessory dwelling unit described in paragraph (1) or (2), a local agency, upon request of an owner of an accessory dwelling unit for a delay in enforcement, shall delay enforcement of a building standard, subject to compliance with Section 17980.12 of the Health and Safety Code: (1) The accessory dwelling unit was built before January 1, 2020. (2) The accessory dwelling unit was built on or after January 1, 2020, in a local jurisdiction that, at the time the accessory dwelling unit was built, had a noncompliant accessory dwelling unit ordinance, but the ordinance is compliant at the time the request is made. (Amended (as amended by Stats. 2021, Ch. 343, Sec. 1) by Stats. 2022, Ch. 664, Sec. 2.5. (SB 897) Effective January 1, 2023.)