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HomeMy WebLinkAbout09 Legislative Review - Oppose SB 9MEETING DATE: PREPARED BY : REQUEST : Recommendation STAFF REPORT CITY OF PALM DESERT CITY MANAGER 'S OFFICE May 27 , 2021 Christopher Gerry , Senior Management Analyst Submission of a letter of opposition for Senate Bill 9 regarding increased density in single-family zones. By minute motion , approve the submission of a letter of opposition to the appropriate legislators for Senate Bill 9 regarding increased density in single-fam ily zones . Background Existing State law generally leaves zoning decisions exclusively to local governments . Introduced by Senator Toni Atkins , Senate Bill 9 (SB 9) would require cities and counties to ministerially approve, without condition or discretion , a housing development containing two residential units on an individual parcel i n single-family zones. In addition, this bill would require local governments to ministerially approve an urban lot split ; thus , creating two independent lots that may be sold separately . While the City recognizes the ongoing housing crisis , SB 9 will have significant and long -lasting impacts on the City 's resident ial neighborhoods . If passed , the law effectively converts the City 's single-family zoning to multi-family without the City 's consent. The bill (amended April 27 , 2021) and Appropriations Committee Fiscal Summary (May 7 , 2021) can be found as Attachment A and B, respectively . The Legislative Review Committee recently reviewed and subsequently recommended opposing SB 9. T he League of Cal ifornia Cities and numerous local jurisdictions across California oppose the bill as well. A letter of opposition can be found as Attachment C. If approved , the attached letter will be submitted to the appropriate legislators contingent upon the status of the bil l. LEGAL REVIEW N/A Robert W . Hargreaves Ci Attorne DEPT. REVIEW N/A L. Todd Hileman C ity Ma nager FINANCIAL REVIEW N/A Ja net Moore Di rector of Finance ASSIS TANT C ITY MANAGER .'A.nay J"ir es tine Andy Firestine Assistant Ci t Maria er City Manager: L. Todd Hileman : L. Toc:(c:( HiLtV\it{:{V\,APPROVED·-------DENIED----i,--- RECEIVED OTHER ATTACHMENTS MEET AYES: tm.~~WJ,J.UJ,,£c.L,.i.~UJJU.;a..;~~.._ __ _ A. Senate Bill 9 NOES: ...i.::~:.iw,.u.u,"""------------ B. Appropriations Committee Fiscal Summary ABSENT: ~!a,iJ.--------------- C. Letter of Opposition ABSTAIN: ..J..:J~~~-1------------ VERIFIED BY:...L1...1.1.,,6,J.J.;::.~:......-------- Original on File with City Clerk's Office [This page has intentionally been left blank.] Attachment A Senate Bill 9 AMENDED IN SENATE APRIL 27, 2021 AMENDED IN SENATE APRIL 5, 2021 SENATE BILL No. 9 Introduced by Senators Atkins, Caballero, Rubio, and Wiener (Coauthors: Senators Gonzalez Cortese, Gonzalez, and McGuire) (Coauthor: Assembly Member Robert Rivas) (Coauthors: Assembly Members Robert Rivas and Wicks) December 7, 2020 An act to amend Section 66452.6 of, and to add Sections 65852.21 and 66411.7 to, the Government Code, relating to land use. legislative counsel’s digest SB 9, as amended, Atkins. Housing development: approvals. The Planning and Zoning Law provides for the creation of accessory dwelling units by local ordinance, or, if a local agency has not adopted an ordinance, by ministerial approval, in accordance with specified standards and conditions. This bill, among other things, would require a proposed housing development containing no more than 2 residential units within a single-family residential zone to be considered ministerially, without discretionary review or hearing, if the proposed housing development meets certain requirements, including, but not limited to, that the proposed housing development would not require demolition or alteration of housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income, that the proposed housing development does not allow for the demolition of more than 25% of the existing exterior structural walls, except as provided, and that the development is not located within a historic district, is not included on 97 the State Historic Resources Inventory, or is not within a site that is legally designated or listed as a city or county landmark or historic property or district. The bill would set forth what a local agency can and cannot require in approving the construction of 2 residential units, including, but not limited to, authorizing a city or county local agency to impose objective zoning standards, objective subdivision standards, and objective design standards, as defined, unless those standards would have the effect of physically precluding the construction of up to 2 units or physically precluding either of the 2 units from being at least 800 square feet in floor area, prohibiting the imposition of setback requirements under certain circumstances, and setting maximum setback requirements under all other circumstances. The Subdivision Map Act vests the authority to regulate and control the design and improvement of subdivisions in the legislative body of a local agency and sets forth procedures governing the local agency’s processing, approval, conditional approval or disapproval, and filing of tentative, final, and parcel maps, and the modification of those maps. Under the Subdivision Map Act, an approved or conditionally approved tentative map expires 24 months after its approval or conditional approval or after any additional period of time as prescribed by local ordinance, not to exceed an additional 12 months, except as provided. This bill, among other things, would require a city or county local agency to ministerially approve a parcel map or tentative and final map for an urban lot split that meets certain requirements, including, but not limited to, that the urban lot split would not require the demolition or alteration of housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income, that the parcel is located within a single-family residential zone, and that the parcel is not located within a historic district, is not included on the State Historic Resources Inventory, or is not within a site that is legally designated or listed as a city or county landmark or historic property or district. The bill would set forth what a local agency can and cannot require in approving an urban lot split, including, but not limited to, authorizing a city or county local agency to impose objective zoning standards, objective subdivision standards, and objective design standards, as defined, unless those standards would have the effect of physically precluding the construction of 2 units, as defined, on either of the resulting parcels or physically precluding either of the 2 units from 97 — 2 — SB 9 being at least 800 square feet in floor area, prohibiting the imposition of setback requirements under certain circumstances, and setting maximum setback requirements under all other circumstances. The bill, until January 1, 2027, would prohibit a local agency from imposing an owner occupancy requirement on applicants unless specified conditions are met. The bill would also extend the limit on the additional period that may be provided by ordinance, as described above, from 12 months to 24 months and would make other conforming or nonsubstantive changes. The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment. CEQA does not apply to the approval of ministerial projects. This bill, by establishing the ministerial review processes described above, would thereby exempt the approval of projects subject to those processes from CEQA. The California Coastal Act of 1976 provides for the planning and regulation of development, under a coastal development permit process, within the coastal zone, as defined, that shall be based on various coastal resources planning and management policies set forth in the act. This bill would exempt a local government agency from being required to hold public hearings for coastal development permit applications for housing developments and urban lot splits pursuant to the above provisions. By increasing the duties of local agencies with respect to land use regulations, the bill would impose a state-mandated local program. The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Vote: majority. Appropriation: no. Fiscal committee: yes.​ State-mandated local program: yes.​ 97 SB 9 — 3 — The people of the State of California do enact as follows: line 1 SECTION 1. Section 65852.21 is added to the Government line 2 Code, to read: line 3 65852.21. (a)  A proposed housing development containing line 4 no more than two residential units within a single-family residential line 5 zone shall be considered ministerially, without discretionary review line 6 or a hearing, if the proposed housing development meets all of the line 7 following requirements: line 8 (1)  The parcel subject to the proposed housing development is line 9 located within a city city, the boundaries of which include some line 10 portion of either an urbanized area or urban cluster, as designated line 11 by the United States Census Bureau, or, for unincorporated areas, line 12 a legal parcel wholly within the boundaries of an urbanized area line 13 or urban cluster, as designated by the United States Census Bureau. line 14 (2)  The parcel satisfies the requirements specified in line 15 subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision line 16 (a) of Section 65913.4. line 17 (3)  Notwithstanding any provision of this section or any local line 18 law, the proposed housing development would not require line 19 demolition or alteration of any of the following types of housing: line 20 (A)  Housing that is subject to a recorded covenant, ordinance, line 21 or law that restricts rents to levels affordable to persons and line 22 families of moderate, low, or very low income. line 23 (B)  Housing that is subject to any form of rent or price control line 24 through a public entity’s valid exercise of its police power. line 25 (C)  Housing that has been occupied by a tenant in the last three line 26 years. line 27 (4)  The parcel subject to the proposed housing development is line 28 not a parcel on which an owner of residential real property has line 29 exercised the owner’s rights under Chapter 12.75 (commencing line 30 with Section 7060) of Division 7 of Title 1 to withdraw line 31 accommodations from rent or lease within 15 years before the date line 32 that the development proponent submits an application. line 33 (5)  The proposed housing development does not allow the line 34 demolition of more than 25 percent of the existing exterior line 35 structural walls, unless the housing development meets at least line 36 one of the following conditions: line 37 (A)  If a local ordinance so allows. 97 — 4 — SB 9 line 1 (B)  The site has not been occupied by a tenant in the last three line 2 years. line 3 (6)  The development is not located within a historic district or line 4 property included on the State Historic Resources Inventory, as line 5 defined in Section 5020.1 of the Public Resources Code, or within line 6 a site that is designated or listed as a city or county landmark or line 7 historic property or district pursuant to a city or county ordinance. line 8 (b)  (1)  Notwithstanding any local law and except as provided line 9 in paragraph (2), a city or county local agency may impose line 10 objective zoning standards, objective subdivision standards, and line 11 objective design review standards that do not conflict with this line 12 section. line 13 (2)  (A)  The city or county local agency shall not impose line 14 objective zoning standards, objective subdivision standards, and line 15 objective design standards that would have the effect of physically line 16 precluding the construction of up to two units or that would line 17 physically preclude either of the two units from being at least 800 line 18 square feet in floor area. line 19 (B)  (i)  Notwithstanding subparagraph (A), no setback shall be line 20 required for an existing structure or a structure constructed in the line 21 same location and to the same dimensions as an existing structure. line 22 (ii)  Notwithstanding subparagraph (A), in all other circumstances line 23 not described in clause (i), a local government agency may require line 24 a setback of up to four feet from the side and rear lot lines. line 25 (c)  In addition to any conditions established in accordance with line 26 subdivision (b), a local agency may require any of the following line 27 conditions when considering an application for two residential line 28 units as provided for in this section: line 29 (1)  Off-street parking of up to one space per unit, except that a line 30 local agency shall not impose parking requirements in either of line 31 the following instances: line 32 (A)  The parcel is located within one-half mile walking distance line 33 of either a high-quality transit corridor, as defined in subdivision line 34 (b) of Section 21155 of the Public Resources Code, or a major line 35 transit stop, as defined in Section 21064.3 of the Public Resources line 36 Code. line 37 (B)  There is a car share vehicle located within one block of the line 38 parcel. line 39 (2)  For residential units connected to an onsite wastewater line 40 treatment system, a percolation test completed within the last five 97 SB 9 — 5 — line 1 5 years, or, if the percolation test has been recertified, within the line 2 last 10 years. line 3 (d)  A local agency shall require that a rental of any unit created line 4 pursuant to this section be for a term longer than 30 days. line 5 (e)  Notwithstanding Section 65852.2, 65852.2 or 65852.22, a line 6 local agency shall not be required to permit an accessory dwelling line 7 unit or a junior accessory dwelling unit on parcels that use both line 8 the authority contained within this section and the authority line 9 contained in Section 66411.7. line 10 (f)  Notwithstanding subparagraph (B) of paragraph (2) of line 11 subdivision (b), an application shall not be rejected solely because line 12 it proposes adjacent or connected structures provided that the line 13 structures meet building code safety standards and are sufficient line 14 to allow separate conveyance. line 15 (g)  Local agencies shall include units constructed pursuant to line 16 this section in the annual housing element report as required by line 17 subparagraph (I) of paragraph (2) of subdivision (a) of Section line 18 65400. line 19 (h)  For purposes of this section, all of the following apply: line 20 (1)  A housing development contains two residential units if the line 21 development proposes no more than two new units or if it proposes line 22 to add one new unit to one existing unit. line 23 (2)  The terms “objective zoning standards,” “objective line 24 subdivision standards,” and “objective design review standards” line 25 mean standards that involve no personal or subjective judgment line 26 by a public official and are uniformly verifiable by reference to line 27 an external and uniform benchmark or criterion available and line 28 knowable by both the development applicant or proponent and the line 29 public official prior to submittal. These standards may be embodied line 30 in alternative objective land use specifications adopted by a city line 31 or county, local agency, and may include, but are not limited to, line 32 housing overlay zones, specific plans, inclusionary zoning line 33 ordinances, and density bonus ordinances. line 34 (3)  “Local agency” means a city, county, or city and county, line 35 whether general law or chartered. line 36 (i)  A local agency may adopt an ordinance to implement the line 37 provisions of this section. An ordinance adopted to implement this line 38 section shall not be considered a project under Division 13 line 39 (commencing with Section 21000) of the Public Resources Code. 97 — 6 — SB 9 line 1 (j)  Nothing in this section shall be construed to supersede or in line 2 any way alter or lessen the effect or application of the California line 3 Coastal Act of 1976 (Division 20 (commencing with Section line 4 30000) of the Public Resources Code), except that the local line 5 government agency shall not be required to hold public hearings line 6 for coastal development permit applications for a housing line 7 development pursuant to this section. line 8 SEC. 2. Section 66411.7 is added to the Government Code, to line 9 read: line 10 66411.7. (a)  Notwithstanding any other provision of this line 11 division and any local law, a city or county local agency shall line 12 ministerially approve, as set forth in this section, a parcel map or line 13 tentative and final map for an urban lot split that only if the local line 14 agency determines that the parcel map for the urban lot split meets line 15 all the following requirements: line 16 (1)  The parcel map or tentative and final map subdivides an line 17 existing parcel to create no more than two new parcels of line 18 approximately equal lot area provided that one parcel shall not be line 19 smaller than 40 percent of the lot area of the original parcel line 20 proposed for subdivision. line 21 (2)  (A)  Except as provided in subparagraph (B), both newly line 22 created parcels are no smaller than 1,200 square feet. line 23 (B)  A local agency may by ordinance adopt a smaller minimum line 24 lot size subject to ministerial approval under this subdivision. line 25 (3)  The parcel being subdivided meets all the following line 26 requirements: line 27 (A)  The parcel is located within a single-family residential zone. line 28 (B)  The parcel subject to the proposed urban lot split is located line 29 within a city city, the boundaries of which include some portion line 30 of either an urbanized area or urban cluster, as designated by the line 31 United States Census Bureau, or, for unincorporated areas, a legal line 32 parcel wholly within the boundaries of an urbanized area or urban line 33 cluster, as designated by the United States Census Bureau. line 34 (C)  The parcel satisfies the requirements specified in line 35 subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision line 36 (a) of Section 65913.4. line 37 (D)  The proposed urban lot split would not require demolition line 38 or alteration of any of the following types of housing: 97 SB 9 — 7 — line 1 (i)  Housing that is subject to a recorded covenant, ordinance, line 2 or law that restricts rents to levels affordable to persons and line 3 families of moderate, low, or very low income. line 4 (ii)  Housing that is subject to any form of rent or price control line 5 through a public entity’s valid exercise of its police power. line 6 (iii)  A parcel or parcels on which an owner of residential real line 7 property has exercised the owner’s rights under Chapter 12.75 line 8 (commencing with Section 7060) of Division 7 of Title 1 to line 9 withdraw accommodations from rent or lease within 15 years line 10 before the date that the development proponent submits an line 11 application. line 12 (iv)  Housing that has been occupied by a tenant in the last three line 13 years. line 14 (E)  The parcel is not located within a historic district or property line 15 included on the State Historic Resources Inventory, as defined in line 16 Section 5020.1 of the Public Resources Code, or within a site that line 17 is designated or listed as a city or county landmark or historic line 18 property or district pursuant to a city or county ordinance. line 19 (F)  The parcel has not been established through prior exercise line 20 of an urban lot split as provided for in this section. line 21 (G)  Neither the owner of the parcel being subdivided nor any line 22 person acting in concert with the owner has previously subdivided line 23 an adjacent parcel using an urban lot split as provided for in this line 24 section. line 25 (b)  An application for a parcel map for an urban lot split shall line 26 be approved in accordance with the following requirements: line 27 (1)  A local agency shall approve or deny an application for a line 28 parcel map for an urban lot split ministerially without discretionary line 29 review. line 30 (2)  A local agency shall approve an urban lot split only if it line 31 conforms to all applicable objective requirements of the line 32 Subdivision Map Act (Division 2 (commencing with Section line 33 66410)), except as otherwise expressly provided in this section. line 34 (3)  Notwithstanding Section 66411.1, a local agency shall not line 35 impose regulations that require dedications of rights-of-way or the line 36 construction of offsite improvements for the parcels being created line 37 as a condition of issuing a parcel map or tentative and final map line 38 for an urban lot split. split pursuant to this section. line 39 (c)  (1)  Except as provided in paragraph (2), notwithstanding line 40 any local law, a city or county local agency may impose objective 97 — 8 — SB 9 line 1 zoning standards, objective subdivision standards, and objective line 2 design review standards applicable to a parcel created by an urban line 3 lot split that do not conflict with this section. line 4 (2)  A local agency shall not impose objective zoning standards, line 5 objective subdivision standards, and objective design review line 6 standards that would have the effect of physically precluding the line 7 construction of two units on either of the resulting parcels or that line 8 would result in a unit size of less than 800 square feet. line 9 (3)  (A)  Notwithstanding paragraph (2), no setback shall be line 10 required for an existing structure or a structure constructed in the line 11 same location and to the same dimensions as an existing structure. line 12 (B)  Notwithstanding paragraph (2), in all other circumstances line 13 not described in subparagraph (A), a local government agency line 14 may require a setback of up to four feet from the side and rear lot line 15 lines. line 16 (d)  In addition to any conditions established in accordance with line 17 subdivision (c), this section, a local agency may require any of the line 18 following conditions when considering an application for a parcel line 19 map for an urban lot split: line 20 (1)  Easements required for the provision of public services and line 21 facilities. line 22 (2)  A requirement that the parcels have access to, provide access line 23 to, or adjoin the public right-of-way. line 24 (3)  Off-street parking of up to one space per unit, except that a line 25 local agency shall not impose parking requirements in either of line 26 the following instances: line 27 (A)  The parcel is located within one-half mile walking distance line 28 of either a high-quality transit corridor as defined in subdivision line 29 (b) of Section 21155 of the Public Resources Code, or a major line 30 transit stop as defined in Section 21064.3 of the Public Resources line 31 Code. line 32 (B)  There is a car share vehicle located within one block of the line 33 parcel. line 34 (e)  A local agency shall require that the uses allowed on a lot line 35 created by this section be limited to residential uses. line 36 (f)  (1)  A local agency may impose an owner occupancy line 37 requirement on an applicant for an urban lot split that meets one line 38 of the following conditions: 97 SB 9 — 9 — line 1 (A)  The applicant intends to occupy one of the housing units line 2 as their principal residence for a minimum of one year from the line 3 date of the approval of the urban lot split. line 4 (B)  The applicant is a “qualified nonprofit corporation.” A line 5 “qualified nonprofit corporation” means a nonprofit corporation line 6 organized pursuant to Section 501(c)(3) of the Internal Revenue line 7 Code that has received a welfare exemption under either of the line 8 following: line 9 (i)  Section 214.15 of the Revenue and Taxation Code for line 10 properties intended to be sold to low-income families who line 11 participate in a special no-interest loan program. line 12 (ii)  Section 214.18 of the Revenue and Taxation Code for line 13 properties owned by a community land trust. line 14 (2)  A local agency shall not impose additional owner occupancy line 15 standards, other than provided for in this subdivision, on an urban line 16 lot split pursuant to this section. line 17 (3)  This subdivision shall become inoperative on January 1, line 18 2027. line 19 (g)  A local agency shall require that a rental of any unit created line 20 pursuant to this section be for a term longer than 30 days. line 21 (h)  A local agency shall not require, as a condition for ministerial line 22 approval of a permit parcel map application for the creation of an line 23 urban lot split, the correction of nonconforming zoning conditions. line 24 (i)  (1)  Notwithstanding any provision of Section 65852.2, line 25 Section 65852.21, Section 65852.22, Section 65915, or this section, line 26 a local agency shall not be required to permit more than two units line 27 on a parcel created through the exercise of the authority contained line 28 within this section. line 29 (2)  For the purposes of this section, “unit” means any dwelling line 30 unit, including, but not limited to, a unit or units created pursuant line 31 to Section 65852.21, a primary dwelling, an accessory dwelling line 32 unit as defined in Section 65852.2, or a junior accessory dwelling line 33 unit as defined in Section 65852.22. line 34 (j)  Notwithstanding paragraph (3) of subdivision (c), an line 35 application shall not be rejected solely because it proposes adjacent line 36 or connected structures provided that the structures meet building line 37 code safety standards and are sufficient to allow separate line 38 conveyance. line 39 (k)  Local agencies shall include the number of applications for line 40 parcel maps for urban lot splits pursuant to this section in the 97 — 10 — SB 9 line 1 annual housing element report as required by subparagraph (I) of line 2 paragraph (2) of subdivision (a) of Section 65400. line 3 (l)  For purposes of this section, both of the terms “objective line 4 following shall apply: line 5 (1)  “Objective zoning standards,” “objective subdivision line 6 standards,” and “objective design review standards” mean standards line 7 that involve no personal or subjective judgment by a public official line 8 and are uniformly verifiable by reference to an external and line 9 uniform benchmark or criterion available and knowable by both line 10 the development applicant or proponent and the public official line 11 prior to submittal. These standards may be embodied in alternative line 12 objective land use specifications adopted by a city or county, local line 13 agency, and may include, but are not limited to, housing overlay line 14 zones, specific plans, inclusionary zoning ordinances, and density line 15 bonus ordinances. line 16 (2)  “Local agency” means a city, county, or city and county, line 17 whether general law or chartered. line 18 (m)  A local agency may adopt an ordinance to implement the line 19 provisions of this section. An ordinance adopted to implement this line 20 section shall not be considered a project under Division 13 line 21 (commencing with Section 21000) of the Public Resources Code. line 22 (n)  Nothing in this section shall be construed to supersede or in line 23 any way alter or lessen the effect or application of the California line 24 Coastal Act of 1976 (Division 20 (commencing with Section line 25 30000) of the Public Resources Code), except that the local line 26 government agency shall not be required to hold public hearings line 27 for coastal development permit applications for urban lot splits line 28 pursuant to this section. line 29 SEC. 3. Section 66452.6 of the Government Code is amended line 30 to read: line 31 66452.6. (a)  (1)  An approved or conditionally approved line 32 tentative map shall expire 24 months after its approval or line 33 conditional approval, or after any additional period of time as may line 34 be prescribed by local ordinance, not to exceed an additional 24 line 35 months. However, if the subdivider is required to expend two line 36 hundred thirty-six thousand seven hundred ninety dollars line 37 ($236,790) or more to construct, improve, or finance the line 38 construction or improvement of public improvements outside the line 39 property boundaries of the tentative map, excluding improvements line 40 of public rights-of-way that abut the boundary of the property to 97 SB 9 — 11 — line 1 be subdivided and that are reasonably related to the development line 2 of that property, each filing of a final map authorized by Section line 3 66456.1 shall extend the expiration of the approved or conditionally line 4 approved tentative map by 48 months from the date of its line 5 expiration, as provided in this section, or the date of the previously line 6 filed final map, whichever is later. The extensions shall not extend line 7 the tentative map more than 10 years from its approval or line 8 conditional approval. However, a tentative map on property subject line 9 to a development agreement authorized by Article 2.5 line 10 (commencing with Section 65864) of Chapter 4 of Division 1 may line 11 be extended for the period of time provided for in the agreement, line 12 but not beyond the duration of the agreement. The number of line 13 phased final maps that may be filed shall be determined by the line 14 advisory agency at the time of the approval or conditional approval line 15 of the tentative map. line 16 (2)  Commencing January 1, 2012, and each calendar year line 17 thereafter, the amount of two hundred thirty-six thousand seven line 18 hundred ninety dollars ($236,790) shall be annually increased by line 19 operation of law according to the adjustment for inflation set forth line 20 in the statewide cost index for class B construction, as determined line 21 by the State Allocation Board at its January meeting. The effective line 22 date of each annual adjustment shall be March 1. The adjusted line 23 amount shall apply to tentative and vesting tentative maps whose line 24 applications were received after the effective date of the line 25 adjustment. line 26 (3)  “Public improvements,” as used in this subdivision, include line 27 traffic controls, streets, roads, highways, freeways, bridges, line 28 overcrossings, street interchanges, flood control or storm drain line 29 facilities, sewer facilities, water facilities, and lighting facilities. line 30 (b)  (1)  The period of time specified in subdivision (a), including line 31 any extension thereof granted pursuant to subdivision (e), shall line 32 not include any period of time during which a development line 33 moratorium, imposed after approval of the tentative map, is in line 34 existence. However, the length of the moratorium shall not exceed line 35 five years. line 36 (2)  The length of time specified in paragraph (1) shall be line 37 extended for up to three years, but in no event beyond January 1, line 38 1992, during the pendency of any lawsuit in which the subdivider line 39 asserts, and the local agency that approved or conditionally 97 — 12 — SB 9 line 1 approved the tentative map denies, the existence or application of line 2 a development moratorium to the tentative map. line 3 (3)  Once a development moratorium is terminated, the map line 4 shall be valid for the same period of time as was left to run on the line 5 map at the time that the moratorium was imposed. However, if the line 6 remaining time is less than 120 days, the map shall be valid for line 7 120 days following the termination of the moratorium. line 8 (c)  The period of time specified in subdivision (a), including line 9 any extension thereof granted pursuant to subdivision (e), shall line 10 not include the period of time during which a lawsuit involving line 11 the approval or conditional approval of the tentative map is or was line 12 pending in a court of competent jurisdiction, if the stay of the time line 13 period is approved by the local agency pursuant to this section. line 14 After service of the initial petition or complaint in the lawsuit upon line 15 the local agency, the subdivider may apply to the local agency for line 16 a stay pursuant to the local agency’s adopted procedures. Within line 17 40 days after receiving the application, the local agency shall either line 18 stay the time period for up to five years or deny the requested stay. line 19 The local agency may, by ordinance, establish procedures for line 20 reviewing the requests, including, but not limited to, notice and line 21 hearing requirements, appeal procedures, and other administrative line 22 requirements. line 23 (d)  The expiration of the approved or conditionally approved line 24 tentative map shall terminate all proceedings and no final map or line 25 parcel map of all or any portion of the real property included within line 26 the tentative map shall be filed with the legislative body without line 27 first processing a new tentative map. Once a timely filing is made, line 28 subsequent actions of the local agency, including, but not limited line 29 to, processing, approving, and recording, may lawfully occur after line 30 the date of expiration of the tentative map. Delivery to the county line 31 surveyor or city engineer shall be deemed a timely filing for line 32 purposes of this section. line 33 (e)  Upon application of the subdivider filed before the expiration line 34 of the approved or conditionally approved tentative map, the time line 35 at which the map expires pursuant to subdivision (a) may be line 36 extended by the legislative body or by an advisory agency line 37 authorized to approve or conditionally approve tentative maps for line 38 a period or periods not exceeding a total of six years. The period line 39 of extension specified in this subdivision shall be in addition to line 40 the period of time provided by subdivision (a). Before the 97 SB 9 — 13 — line 1 expiration of an approved or conditionally approved tentative map, line 2 upon an application by the subdivider to extend that map, the map line 3 shall automatically be extended for 60 days or until the application line 4 for the extension is approved, conditionally approved, or denied, line 5 whichever occurs first. If the advisory agency denies a subdivider’s line 6 application for an extension, the subdivider may appeal to the line 7 legislative body within 15 days after the advisory agency has line 8 denied the extension. line 9 (f)  For purposes of this section, a development moratorium line 10 includes a water or sewer moratorium, or a water and sewer line 11 moratorium, as well as other actions of public agencies that regulate line 12 land use, development, or the provision of services to the land, line 13 including the public agency with the authority to approve or line 14 conditionally approve the tentative map, which thereafter prevents, line 15 prohibits, or delays the approval of a final or parcel map. A line 16 development moratorium shall also be deemed to exist for purposes line 17 of this section for any period of time during which a condition line 18 imposed by the city or county could not be satisfied because of line 19 either of the following: line 20 (1)  The condition was one that, by its nature, necessitated action line 21 by the city or county, and the city or county either did not take the line 22 necessary action or by its own action or inaction was prevented or line 23 delayed in taking the necessary action before expiration of the line 24 tentative map. line 25 (2)  The condition necessitates acquisition of real property or line 26 any interest in real property from a public agency, other than the line 27 city or county that approved or conditionally approved the tentative line 28 map, and that other public agency fails or refuses to convey the line 29 property interest necessary to satisfy the condition. However, line 30 nothing in this subdivision shall be construed to require any public line 31 agency to convey any interest in real property owned by it. A line 32 development moratorium specified in this paragraph shall be line 33 deemed to have been imposed either on the date of approval or line 34 conditional approval of the tentative map, if evidence was included line 35 in the public record that the public agency that owns or controls line 36 the real property or any interest therein may refuse to convey that line 37 property or interest, or on the date that the public agency that owns line 38 or controls the real property or any interest therein receives an line 39 offer by the subdivider to purchase that property or interest for fair line 40 market value, whichever is later. A development moratorium 97 — 14 — SB 9 line 1 specified in this paragraph shall extend the tentative map up to the line 2 maximum period as set forth in subdivision (b), but not later than line 3 January 1, 1992, so long as the public agency that owns or controls line 4 the real property or any interest therein fails or refuses to convey line 5 the necessary property interest, regardless of the reason for the line 6 failure or refusal, except that the development moratorium shall line 7 be deemed to terminate 60 days after the public agency has line 8 officially made, and communicated to the subdivider, a written line 9 offer or commitment binding on the agency to convey the necessary line 10 property interest for a fair market value, paid in a reasonable time line 11 and manner. line 12 SEC. 4. The Legislature finds and declares that ensuring access line 13 to affordable housing is a matter of statewide concern and not a line 14 municipal affair as that term is used in Section 5 of Article XI of line 15 the California Constitution. Therefore, Sections 1 and 2 of this act line 16 adding Sections 65852.21 and 66411.7 to the Government Code line 17 and Section 3 of this act amending Section 66452.6 of the line 18 Government Code apply to all cities, including charter cities. line 19 SEC. 5. No reimbursement is required by this act pursuant to line 20 Section 6 of Article XIII B of the California Constitution because line 21 a local agency or school district has the authority to levy service line 22 charges, fees, or assessments sufficient to pay for the program or line 23 level of service mandated by this act, within the meaning of Section line 24 17556 of the Government Code. O 97 SB 9 — 15 — Attachment B Appropriation Committee Fiscal Summary SENATE COMMITTEE ON APPROPRIATIONS Senator Anthony Portantino, Chair 2021 - 2022 Regular Session SB 9 (Atkins) - Housing development: approvals Version: April 27, 2021 Policy Vote: HOUSING 7 - 2, GOV. & F. 5 - 0 Urgency: No Mandate: Yes Hearing Date: May 10, 2021 Consultant: Mark McKenzie Bill Summary: SB 9 would require cities and counties to provide for the ministerial consideration of a proposed housing development containing no more than two residential units (a duplex), and ministerial approval of a parcel map dividing a lot into two approximately equal parts for residential use (an urban lot split), as specified. Fiscal Impact:  The Department of Housing and Community Development (HCD) estimates it would incur costs of $87,000 annually for 0.5 PY of staff time to update the Streamlined Ministerial Approval Guidelines, and provide technical assistance and outreach education to local agencies and affordable housing developers. (General Fund)  Unknown local costs to establish streamlined project review processes for propos ed duplex housing developments and tentative maps for urban lot splits, and to conduct expedited design reviews of these proposals. These costs are not state - reimbursable because local agencies have general authority to charge and adjust planning and permitting fees to cover their administrative expenses associated with new planning mandates. (local funds). Background: The Planning and Zoning Law requires every county and city to adopt a general plan that sets out planned uses for all of the area covered by the plan. A general plan must include seven mandatory elements, including a housing element that establishes the locations and densities of housing, among other requirements. Cities’ and counties’ major land use decisions—including most zoning ordi nances and other aspects of development permitting—must be consistent with their general plans. Zoning ordinances establish the type of land uses that are authorized in a designated area, often identifying a primary use for parcels in an area, as well as other uses that may be allowed if they meet conditions imposed by the local agency to address aesthetics, community impacts, or other site -specific considerations. Some local ordinances provide “ministerial” processes for approving projects that are permitted “by right”—the zoning ordinance clearly states that a particular use is allowable, and local government does not have any discretion regarding approval of the permit if the application is complete. Local governments have two options for providing landowners with relief from zoning ordinances that might otherwise prohibit or restrict a particular land use: variances and conditional use permits. A variance may be granted to alleviate a unique hardship on a property owner because of the way a generally- applicable zoning ordinance affects a particular parcel, and a conditional use permit allows a land use that is not authorized by right in a zoning ordinance, but may be SB 9 (Atkins) Page 2 of 5 authorized if the property owner takes certain steps, such as to mitigate the potentia l impacts of the land use. Both of these processes require hearings by the local zoning board and public notice. Some housing projects can be permitted by city or county planning staff ministerially or without further approval from elected officials. Pr ojects reviewed ministerially require only an administrative review designed to ensure they are consistent with existing general plan and zoning rules, as well as meet standards for building quality, health, and safety. Most large housing projects are not allowed ministerial review. Instead, these projects are discretionary and vetted through both public hearings and administrative review, including design review and appeals processes. Most housing projects that require discretionary review and approval are subject to California Environmental Quality Act (CEQA) review, while projects permitted ministerially are not. Existing law requires local agencies to ministerially permit the development of accessory dwelling units (ADUs) on residential parcels, eithe r within the space of an existing single family home or in a new or converted structure in the rear of a property, or both, regardless of local zoning restrictions. ADU law places numerous specified limitations on the ability of local governments to impos e requirements on ADUs to encourage small-scale neighborhood development. The Subdivision Map Act establishes a statewide regulatory framework for controlling the subdividing of land into parcels for sale, lease, or financing. Local subdivision approvals must be consistent with city and county general plans. For smaller subdivisions that create four or fewer parcels, local officials usually use parcel maps, but they can require tentative parcel maps followed by final parcel maps. The Map Act also constrains the dedications and improvements that local cities and counties can re quire as a condition of a subdivision of four or fewer lots to only the dedication of rights-of-way, easements, and the construction of reasonable offsite and onsite improvements for the parcels being created. Proposed Law : SB 9 would require cities and counties to provide for the ministerial consideration of a proposed housing development containing no more than two residential units (a duplex) in a single-family residential zone, and ministerial approval of a parcel map dividing a parcel into two approximately equal parts for residential use (an urban lot split), under specified conditions. To be eligible, a proposed duplex or parcel proposed for subdivision must be located within an urbanized area or urban cluster, as defined by the United States Census and cannot be located on any of the following:  Prime farmland or farmland of statewide importance;  Wetlands;  Land within the very high fire hazard severity zone, unless the development complies with state mitigation requirements;  A hazardous waste site;  An earthquake fault zone;  Land within the 100-year floodplain or a floodway;  Land identified for conservation under a natural community conservation plan, or lands under conservation easement; SB 9 (Atkins) Page 3 of 5  Habitat for protected species; or  A historic district or property included on the State Historic Resources Inventory, or a site that is designated or listed as a city our county landmark or historic property or district pursuant to a city or county ordinance. Duplex provisions. SB 9 would require a housing development containing no more than two units to be considered ministerially in single family zones if the development meets certain conditions, including the requirements on eligible parcels above. A development can include adding one unit to an existing unit, or constructing two new units. SB 9 would prohibit demolition of more than 25% of the existing exterior structural walls unless the local ordinance allows it or if the site has not been occupied by a tenant in the last three years. A local agency may require a percolation test for units connected to an onsite wastewater treatment system. Urban lot splits. SB 9 would require a city or county to ministerially approve or deny a parcel map for an urban lot split that meets specified requirements, in addition to the requirements for eligible parcels that apply to both duplexes and urban lot splits. Specifically, the urban lot split must meet the following requirements:  The parcel map subdivides an existing parcel to create no more than two new parcels of approximately equal lot area, as specified .  Both newly created parcels are no smaller than 1,200 square feet, unless the local agency adopts a smaller minimum lot size subject to ministerial approval.  The parcel being subdivided is located within a single-family residential zone.  The proposed lot split does not require demolition or alteration of rent-restricted housing, housing where an owner has exercised their rights under the Ellis Act within the past 15 years, or housing that has been occupied by tenants in the past three years.  The parcel being subdivided was not previously created through an urban lot split, and none of the adjoining parcels were created by an urban lot split and owned by the same owner. A city or county can only approve an urban lot split if it conforms to all applicable objective requirements of the Subdivision Map Act. SB 9 would prohibit a local agency from imposing regulations that require dedications of rights -of-way or the construction of reasonable offsite and onsite improvements for parcels created through an urban lot split. However, a local agency may require easements and that the parcel have access to, provide access to, or adjoin the public right-of-way, as well as any other conditions allowed under the Subdivision Map Act that don’t conflict with the bill. The uses allowed on a lot created by an urban lot split must be limited to residential use. No more than two units may be developed on each of the resulting parcels from a lot split, including ADUs and JADUs. SB 9 would authorize a local agency, until January 1, 2027, to only impose an owner occupancy requirement on an applicant for an urban lot split that meets one of the following conditions:  The applicant intends to occupy one of the housing units as a principal residence for at least a year from the date of approval of the lot split. SB 9 (Atkins) Page 4 of 5  The applicant is a qualified nonprofit corporation that has received a welfare exemption under specified statutes for properties either owned by a land trust or properties intended to be sold to low-income families, as specified. Provisions applicable to duplexes and urban lot splits. SB 9 would prohibit projects or lot splits that would require demolition or alteration of an existing housing unit of any of the following types of housing:  Rent-restricted housing, including deed-restricted affordable housing and housing subject to rent or price control by a public entity’s police power;  Housing that has been the subject of an Ellis Act eviction within the past 15 years; or  Housing that has been occupied by a tenant in the last three years. SB 9 would authorize a local agency to impose objective zoning, subdivision, and design standards that do not conflict with the provisions of the bill. However, a city or county cannot require a project or lot split to comply with any standard that would physically preclude two units of at least 800 square feet from being built. SB 9 would also prohibit a local agency from requiring a setback for an existing structure or a structure constructed in the same location and to the same dimensions as an existing structure. Otherwise local agencies may not require greater than a four-foot setback. SB 9 would authorize a local agency to adopt an ordinance to implement the duplex and urban lot split requirements and provides that such an ordinance is not a project under the California Environmental Quality Act. It would also provide that nothing in the bill supersedes the Coastal Act of 1976, except that a local government is not required to hold public hearings for coastal development permit applications. A local agency also cannot deny a project or lot split because it propo sed adjacent or connected structures, so long as they comply with the building code. A local agency must also require that a rental of any unit permitted by the bill is for a term of longer than 30 days. SB 9 would require local agencies to report the number of units produced and applications for urban lot splits in their annual report to HCD on the implementation of their general plan. SB 9 would prohibit the development of ADUs on parcels that use both the urban lot split and duplex provisions of the b ill, and it would apply the limitations on parking requirements from ADU law to both duplexes and urban lot splits under the bill. SB 9 would allow local governments to extend the life of subdivision maps by one year, up to a total of four years. Related Legislation : SB 1120 (Atkins), which passed both houses last year, but was not taken up for a concurrence vote before the end of session, was substantially similar to this bill. Staff Comments: The bill’s mandated local costs would not be subject to s tate reimbursement because local agencies have the authority to charge and adjust planning and permitting fees as necessary to cover administrative costs. Existing law authorizes SB 9 (Atkins) Page 5 of 5 planning and zoning fees to “include the costs reasonably necessary to prepa re and revise the plans and policies that a local agency is required to adopt before it can make any necessary findings and determinations.” Case law and previous decisions by the Commission on State Mandates support the position that local governments’ p lanning costs are not reimbursable when the state imposes new planning mandates. -- END -- Attachment C Letter of Opposition May 27, 2021 The Honorable Toni Atkins President pro Tempore, California State Senate State Capitol Building, Room 205 Sacramento, CA 95814 Re: RE: Senate Bill 9 (Atkins) Increased Density in Single-Family Zones Opposed (As Amended April 27, 2021) Dear Senate President pro Tempore Atkins, The City of Palm Desert (City) writes to express our opposition to Senate Bill 9. This bill would require cities and counties to ministerially approve, without condition or discretion, a housing development containing two residential units on an individual parcel in single-family zones. Additionally, this measure would require local governments to ministerially approve an urban lot split; thus, creating two independent lots that may be sold separately. Housing affordability and homelessness are among the most critical issues facing California cities. Affordably priced homes are out of reach for many people and housing is not being built fast enough to meet the current or projected needs of people living in the state. Cities lay the groundwork for housing production by planning and zoning new projects in their communities based on extensive public input and engagement, state housing laws, and the needs of the building industry. While the City appreciates your desire to pursue a housing production proposal, SB 9 as currently drafted will not spur much needed housing construction in a manner that supports local flexibility, decision-making, and community input. State-driven ministerial or by-right housing approval processes fail to recognize the extensive public engagement associated with developing and adopting zoning ordinances and housing elements that are certified by the California Department of Housing and Community Development. The City is committed to being part of the solution to the housing shortfall across all income levels and will continue to work collaboratively with you and other stakeholders on legislative proposals that will actually spur much needed housing construction. For these reasons, the City opposes SB 9. Please feel free to contact me if you would like to have further discussions regarding our legislative position. Thank you. Regards, Kathleen Kelly Mayor