HomeMy WebLinkAboutCD Junior Second Units PTP Agenda Item No: 4.b Meeting Date: January 4, 2016 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Community Development Prepared by: Paul A. Jensen, Director City Manager Approval: ______________ TOPIC: SUBJECT: San Rafael Municipal Code Amendments- Title 14 (Zoning) Zoning Ordinance second units; and b) amend the definition for second dwelling unit and the fire inspection provisions for large family day care homes for children; City of San Rafael, project proponent; File No(s).: ZO15-001 EXECUTIVE SUMMARY: The San Rafael General Plan 2020 Housing Element was updated in January 2015 (Housing Element 2015- 2023). Housing Element Program H-11b (Junior Second Units) calls for the City to develop zoning regulations -family residential lot, a junior second unit is an independent living space in a single-family dwelling that is created by re-purposing an existing bedroom(s). A junior second unit includes a food preparation area and can have an independent bathroom or a bathroom that is shared with the main dwelling unit. Draft code amendments have been prepared for junior second units, which are summarized in this report and presented in their entirety in the attached ordinance (Attachment 1). The proposed junior second unit provisions and standards would implement Housing Element Program H--in-tive type of affordable housing. Consistent with the Planning Commission recommendations, a two-year monitoring of junior second unit activity is also proposed (Attachment 2, resolution). Two, unrelated code amendments are proposed to accompany the zoning code amendments for junior second units. These accompanying amendments are described in the Background section of this report. As amendments to Title 14 (Zoning) of the San Rafael Municipal Code require Planning Commission and City Council review and action, City- RECOMMENDATION: 1. Open public hearing and accept public comment; 2. Pass ordinance to print; and 3. Adopt resolution ____________________________________________________________________________________ FOR CITY CLERK ONLY File No.: 10-1 x 10-3 Council Meeting: 01/04/2016 Disposition: Ordinance 1937 x Resolution 14054 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 BACKGROUND: History unit is an independent, separate dwelling unit that is developed on a residential lot containing a single-family dwelling. Depending upon the size of the lot and the main dwelling unit, a second dwelling unit can be as large as 1,000 square feet and can be developed from conversion of existing living space, as an addition to the home, or as a separate accessory structure on the lot. Since 1983, the City has required special standards for second dwelling units including, among others: 1) additional off-street parking for the unit; 2) a minimum residential lot size of 5,000 square feet; and c) a provision that the owner occupy either the main residence or the second dwelling unit. Since 1983, approximately 200 second dwelling units have been approved, legalized and/or created on single- family residential lots in San Rafael (roughly 2% of the single-family residence housing stock with second units). mandated by the State of California. While this housing concept has been proven to be successful in yielding affordable housing, they can be costly to create. The Second Dwelling Units Progress Report 2009 (Progress Report) prepared by the Community Development Department reported that the average cost of creating a second dwelling unit (design, permitting, utility connections and construction) can range from $30,000 to $125,000 per unit (2009 dollars), depending upon the size and design. As an independent, separate dwelling unit, building and fire codes address these units no differently than any other housing units, meaning costly measures such as fire sprinklers, noise attenuation and separate water and sewer connections are required. Consequently, these measures often quell or discourage owners from pursuing second dwelling units on their property. Nonetheless, while the cost for creating a second dwelling unit can be discouraging, the Progress Report found that, overall, the second dwelling units that are marketed for rent, are generally rented at rates that are affordable (affordable to very low- to moderate-income households). Concept In January 2015, the City Council adopted Resolution 13863 amending the San Rafael 2020 General Plan and adopting an update of the Housing Element (Housing Element 2015-2023). The Housing Element contains many policies and programs supporting a variety of housing types and affordability levels for the broad demographics in San Rafael. Among the Housing Element policies is HE-11 (House Sharing), which supports organizations that facilitate house sharing, particularly for the senior population. Further, Policy H-13 (Senior Housing) encourages opportunities for -in- outreach efforts of LilyPad Homes, a locally-based non-profit organization. LilyPad Homes promoted the concept of re-purposing existing space within a single-family home as an independent living unit. Unlike a conventional second dwelling unit, junior second units are unique in that they: a) are created through the conversion of an existing bedroom(s) within a single-family home (it does not involve the addition of new building area); b) are smaller in size than a second dwelling unit (under 500 square feet in size); c) contain a small food preparation area (not a full kitchen); and d) contain either an independent or shared bathroom facility. Junior second units are connected to the main residence by a door that can be locked/secured, which is much like a double-lock door between two connecting hotel rooms. The primary goal of a junior second unit is that it allows the property owner to rent out the small space or make it available to a caregiver, which is why they are an attractive means of assisting the owner to remain in their home as they age. developed to assist the Marin communities in adopting zoning provisions for these units. This concept was Housing Element update process, which resulted in incorporating Program H-11b (Junior Second Units), which reads as follows: -11b. Junior Second Units. Coordinate with other Marin jurisdictions in evaluating appropriate zoning units would be created through the re-purposing of existing space within an existing single-family dwelling to create a semi-private living situation for a renter or caregiver in conjunction with the owner-occupied SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 unit. Junior second units would be required to have exterior access and meet the US Census definition of 1 a dwel Project Objective: Adopt standards to facilitate junior second units. Seek to issue permits for at least 20 units during the planning period. Responsibility: Community Development Department Time Frame: Adopt standards by 2015 Resources: Project Description Proposed Zoning Ordinance Amendments As directed by Housing Element Program H-11b, staff has developed new zoning provisions to address and permit junior second units. The provisions would amend text in several chapters of the San Rafael Municipal Code, Title 14 (Zoning). The proposed text amendments are presented in the attached ordinance (Attachment 1). A summary of the proposed code amendments is provided as follows: 1. crafted to define a junior second unit as an independent living space that is created by re-purposing or converting of an existing bedroom(s) in a single-family residence (no new or additional building area). The definition also presents other characteristics that distinguish junior second units from a conventional second dwelling unit such as size and shared facilities with the main residence (e.g., an internal connection between units and the potential for sharing a bathroom). 2. Chapter 14.04 (Residential Districts), Table 14.04.020 (Land Use Regulations \[R, DR, MR, HR and PD MR, HR and PD Districts. For this land use type, the table also references the additional use regulations/standards in Chapter 14.16 (discussed under #3 below). 3. Chapter 14.16 (Site and Use Regulations), new Section 14.16.286 (Junior Second Units) is proposed to establish specific permit and performance standards provisions for junior second units. This section immediately follows the separate Section 14.15.285 (Second Dwelling Units), which addresses the special provisions for second dwelling units. This new section proposes the following standards for junior second units: a. A junior second complies with the standards set forth in this section, action on the permit is taken without further discretion or public notice. The cost for this permit would be the same as that for a second dwelling unit ($300.00). b. A maximum of one junior second unit would be permitted per residential lot containing a single-family dwelling. c. provision, meaning that the property owner must occupy either the main residence or the junior second unit. As practiced with second dwelling units, it is recommended that this provision be memorialized through the recordation of a deed restriction. d. A junior second unit would be permitted by re-purposing an existing bedroom(s) and an area not exceeding 500 square feet. The unit can contain an independent bathroom or can share a bathroom with the main residence. 1 that is occupied as separate living quarters. Separate living quarters are those in which the occupants live and eat separately from any other persons in the building, and which have direct access from the outside of the building or through a common hall. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4 e. The provisions recommend that the single-family residential lot be a minimum of 5,000 square feet in size (same as required for a second dwelling unit). f. No additional off-street parking would be required for the junior second unit. However, the standards propose that the main single-family dwelling unit must meet the current off-street parking standard in effect at the time the junior second unit is approved. g. Regarding unit access, a separate exterior entry would be required as well as an interior connection with the main dwelling unit. h. The junior second unit would not be subject to the same building and fire code provisions for a separate second dwelling unit. However, the basic fire protection measures such as a smoke alarm and carbon monoxide detector would be required. i. No separate water or sewer connections would be required. j. A food preparation area would be limited to a small wet bar-sized sink, small counter area with cabinets and limited electrical service (max. 120v) for a refrigerator and small cooking appliance. The draft provisions were developed in coordination and assistance with the City Building Division, Fire Department, San Rafael Sanitation District and Marin Municipal Water District. On November 12, 2015, City staff and a representative of LilyPad Homes presented the junior second unit concept to the Las Gallinas Valley Sanitary District Board of Directors. While no formal action was taken by this Board, the concept was generally well received. To date, in Marin County, the Town of Tiburon and the City of Novato have adopted ordinances establishing regulations for junior second units. The proposed code amendments are similar to the regulations adopted in Tiburon and Novato. However, the Town of Tiburon prohibits the use of a junior second unit for a seasonal or short-term rental (e.g., Airbnb, VRBO, etc.). The Town of Tiburon has had a seasonal/short-term residential rental ordinance in-place for many years, as it has been a target area in the market for short-term or vacation rentals. Accompanying Minor Zoning Code Amendments In preparing the draft ordinance for junior second units, staff discovered an error in the definitio standards specified in SRMC Section 14.17.120. This code section is obsolete. Several years ago, the second dwelling unit provisions were relocated from SRMC Chapter 14.17 (Performance Standards) to Chapter 14.16 (Site and Use Regulations). The correct referenced code section is 14.16.285. Although unrelated to junior second units, this project proposes an opportunity to group it with an accompanying amendment to Title 14, which is specific to large family day care homes for children. On September 15, 2014, the City Council adopted Ordinance 1924 amending the permit and performance standards requirements for large family day care homes for children. Ordinance 1924 includes a requirement for fire inspection clearance by the City Fire Department. San Rafael Municipal Code Section 14.17.040D.5 prescribes that the required City fire inspection be conducted prior to the approval of an Administrative Use Permit for a large family day care home. Through implementing this ordinance, it was determined that it is more prudent to require the fire inspection to be conducted during and as part of the Administrative Use Permit process. ANALYSIS: Consistency with San Rafael General Plan 2020 As noted above, the San Rafael General Plan 2020 contains policies and programs that strongly encourage housing alternatives such as second dwelling units, house sharing and the concept of junior second units. The proposed municipal code amendments would continue to encourage and reinforce the value and importance of SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5 promoting a diverse housing stock in San Rafael. The proposed code amendments establishing junior second unit permit and performance standards provisions would be consistent with the following key General Plan 2020 policies: Housing Element Policy H-1 (Housing Distribution). Promote the distribution of new and affordable housing of quality construction throughout the City to meet local housing needs. Addressing local housing need is mandated by State law. State law requires that the local Housing Element address compliance with the Regional Housing Need Allocation (RHNA). The RHNA is the Bay Area, the RHNA is provided to the Association of Bay Area Governments (ABAG), and it is the second dwelling units can be countered toward meeting the Response: Consistent. Establishing provisions for junior second units would provide an opportunity to create new and affordable housing throughout the City. Regarding local housing need, HCD has been consulted regarding junior second unit RHNA. HCD has reported that a junior second unit can be counted toward compliance with RHNA when the unit: a) has an independent food preparation area; b) has an independent bathroom; and c) is designed to have an exterior access. So, if a junior second unit is designed to share a bathroom with the main single-family residence, it cannot be counted toward meeting RHNA. Housing Element Policy H-11 (House Sharing). Support organizations that support house sharing linking seniors and small households with potential borders to more efficiently use existing housing stock. Response: Consistent. The proposed municipal code amendments would support the mission and effo-in- Further, the establishment of junior second unit regulations would promote house sharing. The Housing Needs Assessment prepared for the Housing Element 2015-2023 reported that San Rafael has a high percentage of senior citizens and small households continuing to reside in their single-family residences. Establishing measures to permit junior second units would facilitate continued residency by seniors for personal and financial support. Housing Element Policy H-13 (Senior Housing). Encourage housing that meets the needs of San within the community. Support development that provides housing options so that seniors can find suitable housing to rent or purchase. Response: Consistent. Like second dwelling units, it is expected that junior second units would be rented at affordable housing rates. Further, allowing junior second units provides some incentive for senior citizens and older residents to maintain occupancy in their home. Neighborhood Element Policy NH-3 (Housing Mix). Encourage a housing mix with a broad range of affordability, character and size. In areas with a predominance of rental housing, encourage ownership units to increase the variety of housing types. Response: Consistent. The proposed code amendments would establish a new housing type, which -in-place the proposed code amendments would promote the creation of small, affordable housing units. Safety Element Program S-26c (Fire Prevention and Safe Design). Through the development review process, require review by the Fire Department and Police Department for fire prevention and safe design. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 6 Response: Consistent. In developing the proposed code amendments, the Fire Department was consulted. As a result, the proposed code provisions include some basic fire prevention measures for a junior second unit such as smoke and carbon monoxide detectors. Infrastructure Element Policy I-3 (Availability of Utilities). Promote the availability of reliable and reasonably-priced utilities necessary for businesses and residences to prosper. Response: Consistent. As part of the code amendment preparation process, staff consulted with the representatives of Marin Municipal Water District (MMWD) and the San Rafael Sanitation District (SRSD). Both utility services reported that a junior second unit, as it has been proposed for definition, would not require a separate or new utility connection. Consistency with Title 14 - Zoning The proposed municipal code amendments would be consistent and not in conflict with the purposes and provisions of SRMC Title 14 (Zoning) in that: 1. The proposed municipal code amendments would implement General Plan 2020 Program H-11b, which recommends adoption of zoning provisions and regulations for junior second units. 2. The proposed municipal code amendments include safeguards to ensure that junior second units would not be detrimental to the health, safety and welfare of the community. Specifically, the code amendments are crafted to require: a) that the creation of a junior second unit include the re-purposing of an existing bedroom(s); b) unit compliance with fire prevention measures; and c) exterior access to the unit. 3. The proposed municipal code amendments would not compromise or undermine other adopted municipal code provisions that are critical to maintaining the quality of life in San Rafael. First, the code amendments are crafted to mirror some of current provisions required for second dwelling units such as single-family residential neighborhoods. Second, while no additional off-street parking is recommended for a junior second unit as it involves the re-purposing of an existing bedroom(s) and no new or additional building area, the code amendments propose that the main residence must meet the Ci-street parking requirements in effect at the time the junior second unit is requested. Planning Commission Review and Recommendation On October 27, 2015, the Planning Commission conducted a public hearing on the proposed Zoning Ordinance amendments. Following public comments, questions and lengthy discussion, the Commission adopted Resolution 15-18 (5-1-1 vote, Commissioner Paul dissenting and Commissioner Wise absent) recommending to the City Council adoption of the zoning ordinance amendments. The October 27, 2015 Planning Commission http://cityofsanrafael.granicus.com/MediaPlayer.php?view_id=2&clip_id=787 The Planning Commission deliberation focused on several key issues. A summary of these issues is provided as follows: 1. Minimum Lot Size and Off-Street Parking Standards. As summarized above, the performance standards presented in the ordinance propose, among others, a minimum lot size of 5,000 square feet and a requirement that the main single-family dwelling unit must meet the current off-street parking standard in effect at the time the junior second unit is approved. These standards were proposed by staff as a safeguard because San Rafael is developed with older neighborhoods where it is not uncommon to find small lots with substandard off-street parking and narrow streets with limited on-street parking. These neighborhoods include portions of Sun Valley, San Rafael Hill/Lincoln, West End, Picnic Valley, Gerstle Park, Montecito and Bret Harte. The Commission debated whether these standards might be too restrictive in promoting junior second unit start-ups in these areas. Ultimately, the Commission opted to support these standards (as the conservative approach) but recommended that junior second unit SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 7 inquiries and start-ups be monitored for the first year following adoption of the ordinance. The purpose of monitoring inquiries is to determine if the lot size and parking standards discourage or create a detriment to developing a junior second unit in a situation where otherwise it might be practical or desirable to permit the unit. A discussion of this recommended monitoring is provided below. 2. Short-term Rentals. The Commission discussed the current short-term rental phenomenon (e.g., Airbnb). Commissioners expressed particular concern that junior second units by design could be attractive in facilitating or encouraging short-term rentals. At present, San Rafael does not regulate short- term rentals in private homes; however, the City does regulate a bed & breakfast use in a home, boarding and rooming houses, as well as second dwelling units. As San Rafael does not currently regulate seasonal/short-term residential rentals, this issue is not addressed in the proposed code amendments. Staff explained to the Commission that: a) short-term rental activity is currently being monitored by the City staff; and b) to date, there has been no policy direction provided by the City Council to pursue adoption of a short-term residential rental ordinance. Further, staff explained and the Commission concurred that a short-term residential rental policy would have to be crafted to apply to all types of housing; a policy should not be earmarked for application to junior second units alone. However, given the design characteristics of a junior second unit, the Commission recommended that the use of permitted junior second units be monitored over a period of time (two years) to determine if they attract a short-term rental market. Rebecca Woodbury, Senior Analyst) has been monitoring short-term rental activity for the past year. From this monitoring, staff can report the following: City staff does not actively document inquiries and complaints. However, over the past year, the staff has received a number of inquiries about short-term rentals (inquiries about regulations, registration, tracking, prohibition, specific properties). During this period, staff has received less than a half-dozen complaints about specific short-term rental properties. There are several online platforms that serve the short-term rental market, such as Airbnb, VRBO, and HomeAway. San Rafael has approximately 120 rental listings on Airbnb alone, with approximately 57% of them renting entire homes and 43% renting private rooms within a home. About 38% of these rental listings (46) have more than 10 customer reviews. However, approximately 26% (32) have zero customer reviews, which is an indicator that the unit has never been rented. Many cities, usually with strong tourist economies, have regulated the short-term rentals, such as St. Helena, Santa Monica, and most famously San Francisco. Locally, Sausalito, Tiburon and Mill Valley have short-term rental regulations. Local jurisdiction regulations range from the prohibition of short- term rentals (Sausalito, Tiburon), to allowing them under certain circumstances (San Francisco), or requiring registration and a business license (Mill Valley). Recommendation to Monitor Junior Second Unit Activity Consistent with the recommendation of the Planning Commission, a resolution has been drafted (Attachment 2) to address a two-year monitoring of junior second unit activity. This resolution proposes the following: 1. For the first year following the adoption of the ordinance, the Community Development Department staff will track and record junior second unit inquiries and start-ups (approvals). Staff will record inquiries where the junior second unit cannot be approved/authorized because the subject property is less than 5,000 square feet in size and/or when the parking for the main dwelling unit cannot be brought to code. At the end of the first calendar year, the Community Development Department staff will prepare a memorandum to the City Council and Planning Commission summarizing the monitoring results. 2. For the second year following the adoption of the ordinance, the Community Development Department staff will continue to track and record junior second unit inquiries and start-ups (approvals). To the extent feasible and practical, permitted junior second units will be monitored to determine if they attract or are being rented for short-term use. At the end of the second calendar year, the Community Development SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 8 Department staff will prepare a memorandum to the City Council and Planning Commission summarizing the monitoring results. 3. The resolution proposes to review the junior second unit ordinance provisions after the two-year monitoring period (or at any time during the two-year period). At the time of this review, it will be determined if amendments to the ordinance are recommended based on the monitoring results. Should the City Council adopt the ordinance establishing junior second unit permit requirements and standards, it is recommended that this resolution be adopted as a second action. Environmental Review: The municipal code amendments do not propose any changes to the City policies or regulations that would result in a direct or indirect physical, environmental impact. Therefore, the municipal code amendments are covered CEQA) applies only to projects that have the potential for causing a significant effect on the environment pursuant to CEQA Guidelines Section 15061(b)(3), and are therefore, not subject to environmental review. COMMUNITY OUTREACH: Notice of this meeting was mailed to all interested and affected parties 15 days prior to the meeting date. The proposed code amendments were presented to the Federation of San Rafael Neighborhoods/North San Rafael Coalition at a monthly City-hosted meeting held in September 2015. To date, the City has received correspondence from several organizations and advocacy groups. This correspondence is attached. FISCAL IMPACT: The recommended action has some limited fiscal impact on the City. As the recommended action would implement a specific implementation program in the San Rafael General Plan 2020, the City staff time that was devoted to developing and processing this ordinance has been appropriated in the General Fund FY 15/16 budget adopted for the Community Development Department as well as the General Plan Special Revenue Fund (Fund #218). At this time, the revenue that would be generated by the future approval and development of junior second units cannot be projected, as the number of unit start-ups is unknown. OPTIONS: The City Council has the following options to consider on this matter: 1. Pass ordinance to print and adopt resolution (staff recommendation); 2. Reject the proposed zoning ordinance amendments; 3. Pass the ordinance to print with modifications; or 4. Direct staff to return with more information. RECOMMENDED ACTION: 1. Pass ordinance to print 2. Adopt resolution ATTACHMENTS: 1. Ordinance 2. Resolution (monitoring junior second unit activity) 3. Junior second unit information from LilyPad Homes 4. Public Meeting Notice 5. Correspondence received to date CDD JrSecUnit rpt 1 4 16