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CC SR 20161220 04 - Urgency Ordinance Accessory Dwelling UnitsRANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 12/20/2016 AGENDA REPORT AGENDA HEADING: Regular Business AGENDA DESCRIPTION: Consideration and possible action to adopt an urgency ordinance revising Chapters 17.10 and 17.96 of Title 17 of the Municipal Code, and to initiate a code amendment to consider amending Chapters 17.10 and 17.96 of Title 17 of the Municipal Code, updating the City's Second Unit Development standards (Case No. ZON2016-00579). RECOMMENDED COUNCIL ACTION: 1) Initiate Code Amendment proceedings to consider amending Chapters 17.10 and 17.96 of Title 17, updating the City's Second Unit Development Standards; and 2) Adopt Urgency Ordinance No. _U; thereby amending Chapters 17.10 and 17.96 of Title 17 to comply with State law regarding Accessory Dwelling Units (formerly known as "Second Units"). FISCAL IMPACT: None. Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Ara Mihranian, AICP, Director of Community Development. REVIEWED BY: Gabriella Yap, Deputy City Manager O-," APPROVED BY: Doug Willmore, City ManagerVI ATTACHED SUPPORTING DOCUMENTS: A. Urgency Ordinance No. U (Page A-1) B. Assembly Bill 2299 and Senate Bill 1069 (Page B-1) BACKGROUND AND DISCUSSION: On September 28, 2016, the Governor signed Assembly Bill 2299 and Senate Bill 1069, thereby renaming second units as "Accessory Dwelling Units" and requiring cities to update their development codes relating to Accessory Dwelling Units no later than January 1, 2017. These bills amend Government Code Section 65852.2 to establish detailed standards regulating Accessory Dwelling Units, and to provide that a city ordinance that does not comply with these standards would be invalidated. The intent of these new bills is to "support infill and affordable housing development." The bills would "ease and streamline" current statewide regulations, encourage the 1 building of accessory dwelling units, and create more housing options. The bills would also "improve and incentivize the creation of accessory dwelling units as ways to create more rental property and incomes for families to stay in their current homes." Overall, the bills are intended to "ease barriers" to the construction and permitting of accessory dwelling units by local governments. Municipal Code Chapter 17.10 currently establishes the City's Second Unit Development Standards. In order to comply with the new law, the following existing standards will need to be revised: Allow one Accessory Dwelling Unit within the existing space of each single-family residence in single-family residential districts, subject to some exceptions; Allow new parking options for Accessory Dwelling Units; and, Change some floor area, setback, and pathway requirements. Due to the confusion and concerns of many California cities about the new standards, the California Department of Housing and Community Development will be issuing technical guidance to cities in mid-December with their interpretation of the new requirements. If this guidance is released prior to the December 20, 2016, meeting, Staff will include this as Late Correspondence. If the City does not amend its Municipal Code and a court finds that the City's Second Unit Development Standards do not comply with the new State law, the City's standards will be invalidated and Staff will be ordered to apply the standards set forth in the new State law. Therefore, Staff recommends the City adopt an urgency ordinance that immediately does the following to comply with the new State law (underline emphasis added): • Provides a definition for an Accessory Dwelling Unit. • Clarifies that the total floor space for an attached Accessory Dwelling Unit shall not exceed the lesser of either fifty percent of the primary residence's main building floor area or 1,200 square feet. • Clarifies that Accessory Dwelling Units shall not be considered new residential uses for the purposes of calculating local agency connection fees or capacity charges for utilities. Fees charged for the construction of Accessory Dwelling Units shall be determined in accordance with Government Code Chapters 5 and 7. • Provides that a minimum of one unenclosed parking space shall be provided for the Accessory Dwelling Unit and shall meet the minimum dimensions stated in Section 17.02.030(E)(5). Such parking area may be tandem to the parking areas for the primary residence. Unenclosed off street parking shall be permitted in setback areas in locations determined by the City or through tandem parking, unless the Director determines that parking in setback areas or tandem parking is not compatible with the character of the neighborhood based upon specific site or topographical constraints, fire and life safety conditions, or that it is not permitted anywhere else in the jurisdiction. 2 Provides that no parking standards are imposed on an Accessory Dwelling Unit if any of the following apply: (1) the Accessory Dwelling Unit is located within one- half mile of public transit; (2) the Accessory Dwelling Unit is located within an architecturally and historically significant historic district; (3) the Accessory Dwelling Unit is part of the existing primary residence or an existing accessory structure; (4) when on -street parking permits are required but not offered to the occupant of the Accessory Dwelling Unit; or, (5) when there is a car -share vehicle located within one block of the Accessory Dwelling Unit. Provides that no passageway is required in conjunction with the construction of an Accessory Dwelling Unit. For purposes of this chapter, a "passageway" means a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the Accessory Dwelling Unit. This definition shall be interpreted as consistent with the definition of "passageway" found in Government Code section 65752.2. Provides that no setback shall be required for an existing garage that is converted to an Accessory Dwelling Unit within the same footprint as the existing garage. When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an Accessory Dwelling Unit, and the City requires that those off street parking spaces be replaced, the replacement spaces may be located in any configuration on the same lot as the Accessory Dwelling Unit, including, but not limited to, as covered spaces, uncovered spaces, or tandem spaces, or by the use of mechanical automobile parking lifts. Provides that when an Accessory Dwelling Unit is constructed above an existing garage, a setback of no more than five feet from the side and rear lot lines shall be required. As discussed in 17.10.020(E), an Accessory Dwelling Unit shall not exceed sixteen feet in height unless a Height Variation Permit is granted pursuant to Municipal Code Section 17.02.040 (View Preservation and Restoration). Provides that the City shall ministerially approve a minor Site Plan Review application for a building permit to create one Accessory Dwelling unit per single- family lot within a single-family residential zone, if the unit is contained within the existing space of a single-family residence or accessory structure; has independent exterior access from the existing residence; and the side and rear setbacks are sufficient for fire safety. Accessory Dwelling Units shall not be required to provide fire sprinklers if they are not required for the primary residence. Furthermore: (A) the Accessory Dwelling Units governed by this section shall not be required to install a new or separate utility connection directly between the Accessory Dwelling Unit and the utility, or to pay a related connection fee or capacity charge; and, (B) parking limitations described in Municipal Code Section 17.10.020(1) do not apply to the Accessory Dwelling Units described in this section. CONCLUSION: Staff recommends that the City Council adopt Urgency Ordinance No. U, making the code amendments regarding Accessory Dwelling Units effective immediately (i.e., 3 before the January 1, 2017 deadline); and initiate Code Amendment proceedings to allow the Planning Commission to propose modified language for the City's Second Unit Development standards for consideration by the City Council at a future, duly -noticed public hearing. ALTERNATIVES: In addition to the Staff recommendations, the following alternatives are available for the City Council's consideration: 1. Adopt a revised Urgency Ordinance. 2. Direct Staff to take no action at this time, thereby risking that the courts may invalidate the City's current Second Dwelling Unit Standards. 11 ORDINANCE NO. U AN URGENCY ORDINANCE OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, AMENDING CHAPTER 17.10 (SECOND UNIT DEVELOPMENT STANDARDS) AND 17.96 (DEFINITIONS) OF TITLE 17 OF THE CITY'S MUNICIPAL CODE UPDATING THE CITY'S SECOND UNIT DEVELOPMENT STANDARDS TO COMPLY WITH NEW STATE LAWS REGARDING ACCESSORY DWELLING UNITS. WHEREAS, the City of Rancho Palos Verdes Municipal Code Chapter 17.10 regulates second unit development; and, WHEREAS, the City of Rancho Palos Verdes Municipal Code Section 17.96.2160 defines second units; and, WHEREAS, on September 28, 2016, the Governor of the State of California approved Assembly Bill 2299 and Senate Bill 1069 (the "Bills"), remaining second units as "Accessory Dwelling Units" and requiring cities to update their development codes relating to Accessory Dwelling Units no later than January 1, 2017; and, WHEREAS, the Bills establish detailed standards that must be enacted to regulate Accessory Dwelling Units, among them, floor area size, pathway, and setback requirements; and, WHEREAS, the Bills also place limitations on the additional parking requirements the City may require for the development of Accessory Dwelling Units, as well as requiring that Accessory Dwelling Units be subject to non -discretionary approval processes; and, WHEREAS, after reviewing its Second Unit Development Standards, the City Council now wishes to amend Title 17, Development Code, to ensure that the City's regulation of Accessory Dwelling Units is consistent with State law; and, WHEREAS, the City Council now wishes to amend Chapters 17.10 and 17.96 to comply with the Bills; and, WHEREAS, the City Council of the City of Rancho Palos Verdes has the power, under Government Code sections, 36934 and 36937, to adopt an ordinance that takes effect immediately if it is an ordinance "[f]or the immediate preservation of the public peace, health or safety, containing a declaration of the facts constituting the urgency, and is passed by a four-fifths vote of the City Council"; and, WHEREAS, the City Council finds that the regulation of Accessory Dwelling Units is necessary to preserve neighborhood character and to regulate the flow of traffic in its residential districts; and, A-1 WHEREAS, in order to maintain a valid regulation of Accessory Dwelling Units when the Bills take effect, it is necessary for the City Council of the City of Rancho Palos Verdes to adopt this Ordinance as such an urgency ordinance, pursuant to its powers under Government Code sections 36934 and 36937, to amend its Code so that the amended Code takes effect by January 1, 2017. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, DOES ORDAIN AS FOLLOWS: SECTION 1. The City Council of the City of Rancho Palos Verdes hereby makes the following findings: A. The above recitals are true and correct and incorporated fully herein. B. The City Council finds that the amendments to Chapters 17.10 and 17.96 of the Rancho Palos Verdes Municipal Code are consistent with the City's General Plan and Coastal Specific Plan in that they uphold, and do not hinder, the goals and policies of those plans. C. The City Council finds that the amendments to Chapters 17.10 and 17.96 updating Accessory Dwelling Unit Standards are necessary to preserve the public health, safety, and general welfare in the City's single-family residential zoning districts. SECTION 2. Section 17.96.2160 of the Rancho Palos Verdes Municipal Code is hereby deleted. SECTION 3. Section 17.96.025 is hereby added to the Rancho Palos Verdes Municipal Code to read, in its entirety, as follows: "`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. This definition shall be interpreted as consistent with the definition of accessory dwelling unit found in Government Code section 65852.2." SECTION 4. The Rancho Palos Verdes Code is amended by deleting and replacing the term "second unit" with, "accessory dwelling unit" in the following sections: 17.96.2150, 17.10.040, 17.96.880, 17.10.020, 17.10.030, 17.10.010, 17.02.020, 8.24.060, 17.04.040, and 17.02.030. SECTION 5. Section 17.10.020(C) of the Rancho Palos Verdes Municipal Code is amended to read, in its entirety, as follows: "C. Except as otherwise required by this chapter, all accessory dwelling units shall comply with all applicable building, housing, zoning, and site development standards, codes and regulations of the base zoning district Ordinance No. U Page 2 of 7 A-2 in which it will be located. This shall include, but not be limited to, standards regarding height, setbacks, and lot coverage, and in the case of accessory dwelling units which require approval of a Height Variation permit, the neighborhood character standards of Chapter 17.02 (Single -Family Residential Districts). " SECTION 6. Section 17.10.020(D) of the Rancho Palos Verdes Municipal Code is amended to read, in its entirety, as follows: "D. The total area of floor space for a detached accessory dwelling unit shall not exceed 1,200 square feet. The total area of floor space for an attached accessory dwelling unit not to exceed the lesser of fifty percent of the primary residence's main building floor area or 1,200 square feet." SECTION 7. Section 17.10.020(H) of the Rancho Palos Verdes Municipal Code is amended to read, in its entirety, as follows: "H. The accessory dwelling unit shall be located on a lot or parcel which is served by a public sanitary sewer system. accessory dwelling units shall not be considered new residential uses for the purposes of calculating local agency connection fees or capacity charges for utilities. Fees charged for the construction of accessory dwelling units shall be determined in accordance with Government Code chapters 5 and 7." SECTION 8. Section 17.10.020(1) of the Rancho Palos Verdes Municipal Code is amended to read, in its entirety, as follows: "I. A minimum of one unenclosed parking space shall be provided for the accessory dwelling unit and shall meet the minimum dimensions stated in Section 17.02.030 (E)(5). Such parking area may be tandem to the parking areas for the primary residence. Unenclosed off street parking shall be permitted in setback areas in locations determined by the City or through tandem parking, unless the Director determines that parking in setback areas or tandem parking is not compatible with the character of the neighborhood based upon specific site or topographical constraints, fire and life safety conditions, or that it is not permitted anywhere else in the jurisdiction. No parking standards are imposed on an accessory dwelling unit if any of the following apply: The accessory dwelling unit is located within one-half mile of public transit; 2. The accessory dwelling unit is located within an architecturally and historically significant historic district; 3. The accessory dwelling unit is part of the existing primary residence or an existing accessory structure; Ordinance No. U Page 3 of 7 A-3 4. When on -street parking permits are required but not offered to the occupant of the accessory dwelling unit; or, 5. When there is a car share vehicle located within one block of the accessory dwelling unit." SECTION 9. Section 17.10.020(L) of the Rancho Palos Verdes Municipal Code is amended to read, in its entirety, as follows: "L. Either the primary unit or accessory dwelling unit shall be owner occupied or be used for rentals of terms longer than 30 days, in order for the second unit to qualify for and maintain the right to have an occupancy certification." SECTION 10. A new subsection, 17.10.020(M), is added to the City of Rancho Palos Verdes Municipal Code to read, in its entirety, as follows: "M. No passageway is required in conjunction with the construction of an accessory dwelling unit. For purposes of this chapter, a passageway means a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the accessory dwelling unit. This definition shall be interpreted as consistent with the definition of passageway found in Government Code section 65752.2." SECTION 11. A new subsection, 17.10.020(N), is added to the City of Rancho Palos Verdes Municipal Code to read, in its entirety, as follows: "N. Notwithstanding any other provision in the Code, no setback shall be required for an existing garage that is converted to an accessory dwelling unit within the same footprint as the existing garage. When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an accessory dwelling unit, and the city requires that those off street parking spaces be replaced, the replacement spaces may be located in any configuration on the same lot as the accessory dwelling unit, including, but not limited to, as covered spaces, uncovered spaces, or tandem spaces, or by the use of mechanical automobile parking lifts. SECTION 12. A new subsection, 17.10.020(0), is added to the City of Rancho Palos Verdes Municipal Code to read, in its entirety, as follows: "0. When an accessory dwelling unit is constructed above an existing garage, a setback of no more than five feet from the side and rear lot lines shall be required. As discussed in 17.10.020(E), an accessory dwelling unit shall not exceed sixteen feet in height unless a Height Variation permit is granted pursuant to Section 17.02.040 (View Preservation and Restoration)." SECTION 13. A new Section, 17.10.025, is added to Rancho Palos Verdes Municipal Code to read, in its entirety, as follows: Ordinance No. U Page 4 of 7 A-4 17.10.025 — Accessory Dwelling Unit Within Existing Space of a Single Family Residence or Accessory Structure Notwithstanding any other provisions of this Chapter, the City shall ministerially approve a minor Site Plan Review application for a building permit to create one accessory dwelling unit per single-family lot within a single-family residential zone, if the unit is contained within the existing space of a single-family residence or accessory structure, has independent exterior access from the existing residence, and the side and rear setbacks are sufficient for fire safety. Accessory Dwelling Units shall not be required to provide fire sprinklers if they are not required for the primary residence. A. The accessory dwelling units governed by this section shall not be required to install a new or separate utility connection directly between the accessory dwelling unit and the utility, or to pay a related connection fee or capacity charge. B. Parking limitations described in 17.10.020(1) do not apply to the accessory dwelling units described in this section." SECTION 14. A new Section, 17.10.050, is added to the City of Rancho Palos Verdes Municipal Code to read, in its entirety, as follows: 17.10.050 —Approval Process Except as required by 17.10.020 (E), an application to develop or maintain an accessory dwelling unit pursuant to this chapter shall be considered ministerially without discretionary review or a hearing, notwithstanding Government Code section 65901 or 65906 or any local ordinance regulating the issuance of variances or special use permits, within 120 days after receiving the application." SECTION 15. This ordinance is exempt from the California Environmental Quality Act ("CEQA") pursuant to Section 15061(b)(3) because it consists only of minor revisions and clarifications to an existing zoning code and will not have the effect of deleting or substantially changing any regulatory standards or findings. The proposed Ordinance is an action that does not have the potential to cause significant effects on the environment, but rather will clarify prohibited uses of residential property in the City. SECTION 16. 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 any 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 and phrase thereof not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. Ordinance No. U Page 5 of 7 A-5 SECTION 17. The City Clerk shall certify to the passage and adoption of this ordinance, and shall make a minute of the passage and adoption thereof in the records of and the proceedings of the City Council at which the same is passed and adopted. This Ordinance shall take effect immediately, pursuant to the authority conferred upon the City Council by Government Code section 36937. The City Clerk shall cause a summary of this ordinance to be published in accordance with Government Code section 36933 in a newspaper of general circulation which is hereby designated for that purpose. SECTION 18. This Urgency Ordinance shall go into effect and be in full force and effect immediately upon its adoption by a four-fifths (4/5) vote of the City Council. PASSED, APPROVED and ADOPTED this 201h day of December 2016. ATTEST: Teresa Takaoka, Acting City Clerk State of California ) County of Los Angeles ) SS City of Rancho Palos Verdes ) Brian Campbell, Mayor Ordinance No. U Page 6 of 7 A-6 I, Teresa Takaoka, Acting City Clerk of the City of Rancho Palos Verdes, California, do hereby certify that the foregoing Ordinance No. U was duly introduced at a regular meeting of the City Council held on the 20th day of December 2016, and was duly approved and adopted at a regular meeting of said Council held on the 20th day of December 2016, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: City Clerk Ordinance No. U Page 7 of 7 A-7 Assembly Bill No. 2299 CHAPTER 735 An act to amend Section 65852.2 of the Government Code, relating to land use. [Approved by Governor September 27, 2016. Filed with Secretary of State September 27, 2016.] LEGISLATIVE COUNSEL'S DIGEST AB 2299, Bloom. Land use: housing: 2nd units. The Planning and Zoning Law authorizes the legislative body of a city or county to regulate, among other things, the intensity of land use, and also authorizes a local agency to provide by ordinance for the creation of 2nd units in single-family and multifamily residential zones, as specified. Existing law authorizes the ordinance to designate areas within the jurisdiction of the local agency where 2nd units may be permitted, to impose specified standards on 2nd units, and to provide that 2nd units do not exceed allowable density and are a residential use, as specified. This bill would replace the term "second unit" with "accessory dwelling unit." The bill would, instead, require the ordinance to include the elements described above and would also require the ordinance to require accessory dwelling units to comply with specified conditions. This bill would require ministerial, nondiscretionary approval of an accessory dwelling unit under an existing ordinance. The bill would also specify that a local agency may reduce or eliminate parking requirements for any accessory dwelling unit located within its jurisdiction. Existing law requires that parking requirements for 2nd units not exceed one parking space per unit or per bedroom. Under existing law, additional parking may be required provided that a finding is made that the additional parking requirements are directly related to the use of the 2nd unit and are consistent with existing neighborhood standards applicable to residential dwellings. This bill would delete the above-described authorization for additional parking requirements. By increasing the duties of local officials with respect to land use regulations, this bill would impose a state -mandated local program. This bill would incorporate additional changes in Section 65852.2 of the Government Code proposed by SB 1069 that would become operative only if SB 1069 and this bill are both chaptered and become effective on or before January 1, 2017, and this bill is chaptered last. 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. 94 Ch. 735 —2 This bill would provide that no reimbursement is required by this act for a specified reason. The people of the State of California do enact as follows: SECTION 1. Section 65852.2 of the Government Code is amended to read: 65852.2. (a) (1) A local agency may, by ordinance, provide for the creation of accessory dwelling units in single-family and multifamily residential zones. 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 criteria, that may include, but are not limited to, the adequacy of water and sewer services and the impact of accessory dwelling units on traffic flow and public safety. (B) Impose standards on accessory dwelling units that include, but are not limited to, parking, height, setback, lot coverage, 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 Historic Places. (C) Notwithstanding subparagraph (B), a local agency may reduce or eliminate parking requirements for any accessory dwelling unit located within its jurisdiction. (D) 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. (E) Require the accessory dwelling units to comply with all of the following: (i) The unit is not intended for sale separate from the primary residence and may be rented. (ii) The lot is zoned for single-family or multifamily use. (iii) The accessory dwelling unit is either attached to the existing dwelling or located within the living area of the existing dwelling or detached from the existing dwelling and located on the same lot as the existing dwelling. (iv) The increased floor area of an attached accessory dwelling unit shall not exceed 50 percent of the existing living area. (v) The total area of floorspace for a detached accessory dwelling unit shall not exceed 1,200 square feet. (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 garage that is converted to a accessory dwelling unit, and a setback of no more than five feet from the side and rear lot lines shall be required for an accessory dwelling unit that is constructed above a garage. 94 Ch. 735 (viii) Local building code requirements that apply to detached dwellings, as appropriate. (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 unit or per bedroom. These spaces may be provided as tandem parking on an existing 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, or that it is not permitted anywhere else in the jurisdiction. (xi) When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an accessory dwelling unit, and the local agency requires that those offstreet parking spaces be replaced, the replacement spaces may be located in any configuration on the same lot as the accessory dwelling unit, including, but not limited to, as covered spaces, uncovered spaces, or tandem spaces, or by the use of mechanical automobile parking lifts. (2) The ordinance shall not be considered in the application of any local ordinance, policy, or program to limit residential growth. (3) When a local agency receives its first application on or after July 1, 2003, for a permit pursuant to this subdivision, the application shall be considered 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, within 120 days after receiving the application. A local agency may charge a fee to reimburse it for costs that it incurs as a result of amendments to this paragraph enacted during the 2001-02 Regular Session of the Legislature, including the costs of adopting or amending any ordinance that provides for the creation of accessory dwelling units. (4) Any existing ordinance governing the creation of accessory dwelling units by a local agency or any such ordinance adopted by a local agency subsequent to the effective date of the act adding this paragraph 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. In the event that 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 upon the effective date of the act adding this paragraph 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. (5) No other local ordinance, policy, or regulation shall be the basis for the denial of a building permit or a use permit under this subdivision. 94 Ch. 735 —4 (6) This subdivision establishes the maximum standards that local agencies shall use to evaluate proposed accessory dwelling units on lots zoned for residential use that contain an existing single-family dwelling. No additional standards, other than those provided in this subdivision, shall be utilized or imposed, except that a local agency may require an applicant for a permit issued pursuant to this subdivision to be an owner -occupant. (7) A local agency may amend its zoning ordinance or general plan to incorporate the policies, procedures, or other provisions applicable to the creation of accessory dwelling units if these provisions are consistent with the limitations of this subdivision. (8) 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 units shall not be considered in the application of any local ordinance, policy, or program to limit residential growth. (b) When a local agency that has not adopted an ordinance governing accessory dwelling units in accordance with subdivision (a) receives its first application on or after July 1, 1983, for a permit pursuant to this subdivision, the local agency shall accept the application and approve or disapprove the application ministerially without discretionary review pursuant to subdivision (a) within 120 days after receiving the application. (c) A local agency may establish minimum and maximum unit size requirements for both attached and detached accessory dwelling units. No minimum or maximum size for a accessory dwelling unit, or size based upon a percentage of the existing dwelling, shall be established by ordinance for either attached or detached dwellings that does not permit at least an efficiency unit to be constructed in compliance with local development standards. (d) Fees charged for the construction of accessory dwelling units shall be determined in accordance with Chapter 5 (commencing with Section 66000). (e) This section does not limit the authority of local agencies to adopt less restrictive requirements for the creation of accessory dwelling units, provided those requirements comply with subdivision (a). (f) Local agencies shall submit a copy of the ordinances adopted pursuant to subdivision (a) to the Department of Housing and Community Development within 60 days after adoption. (g) As used in this section, the following terms mean: (1) "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. (2) "Local agency" means a city, county, or city and county, whether general law or chartered. (3) For purposes of this section, "neighborhood" has the same meaning as set forth in Section 65589.5. 94 5— Ch. 735 (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 accessory dwelling unit also includes the following: (A) An efficiency unit, as defined in Section 17958.1 of Health and Safety Code. (B) A manufactured home, as defined in Section 18007 of the Health and Safety Code. (C) "Passageway" means a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the accessory dwelling unit. (h) 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 (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. SEC. 1.5. Section 65852.2 of the Government Code is amended to read: 65852.2. (a) (1) A local agency may, by ordinance, provide for the creation of accessory dwelling units in single-family and multifamily residential zones. 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 criteria, that may include, but are not limited to, the adequacy of water and sewer services and the impact of accessory dwelling units on traffic flow and public safety. (B) (i) Impose standards on accessory dwelling units that include, but are not limited to, parking, height, setback, lot coverage, 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 Historic Places. (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) The unit is not intended for sale separate from the primary residence and may be rented. (ii) The lot is zoned for single-family or multifamily use and contains an existing, single-family dwelling. (iii) The accessory dwelling unit is either attached to the existing dwelling or located within the living area of the existing dwelling or detached from the existing dwelling and located on the same lot as the existing dwelling. 94 Ch. 735 —6 (iv) The increased floor area of an attached accessory dwelling unit shall not exceed 50 percent of the existing living area, with a maximum increase in floor area of 1,200 square feet. (v) The total area of floorspace for a detached accessory dwelling unit shall not exceed 1,200 square feet. (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 garage that is converted to a accessory dwelling unit, and a setback of no more than five feet from the side and rear lot lines shall be required for an accessory dwelling unit that is constructed above a garage. (viii) Local building code requirements that apply to detached dwellings, as appropriate. (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 unit or per bedroom. These spaces may be provided as tandem parking on an existing 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, or that it is not permitted anywhere else in the jurisdiction. (III) This clause shall not apply to a 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, and the local agency requires that those offstreet parking spaces be replaced, the replacement spaces may be located in any configuration on the same lot as the accessory dwelling unit, including, but not limited to, as covered spaces, uncovered spaces, or tandem spaces, or by the use of mechanical automobile parking lifts. This clause shall not apply to a unit that is described in subdivision (d). (2) The ordinance shall not be considered in the application of any local ordinance, policy, or program to limit residential growth. (3) When a local agency receives its first application on or after July 1, 2003, for a permit pursuant to this subdivision, the application shall be considered 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, within 120 days after receiving the application. A local agency may charge a fee to reimburse it for costs that it incurs as a result of amendments to this paragraph enacted during the 2001-02 Regular Session of the Legislature, including the costs of adopting or amending any ordinance that provides for the creation of an accessory dwelling unit. (4) An existing ordinance governing the creation of an accessory dwelling unit by a local agency or an accessory dwelling ordinance adopted by a 94 7— Ch. 735 local agency subsequent to the effective date of the act adding this paragraph 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. In the event that 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 upon the effective date of the act adding this paragraph 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. (5) No other local ordinance, policy, or regulation shall be the basis for the denial of a building permit or a use permit under this subdivision. (6) This subdivision establishes the maximum standards that local agencies shall use to evaluate a proposed accessory dwelling unit on a lot zoned for residential use that contains an existing single-family dwelling. No additional standards, other than those provided in this subdivision, shall be utilized or imposed, except that a local agency may require an applicant for a permit issued pursuant to this subdivision to be an owner -occupant or that the property be used for rentals of terms longer than 30 days. (7) 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. (8) 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) When a local agency that has not adopted an ordinance governing accessory dwelling units in accordance with subdivision (a) receives its first application on or after July 1, 1983, for a permit to create an accessory dwelling unit pursuant to this subdivision, the local agency shall accept the application and approve or disapprove the application ministerially without discretionary review pursuant to subdivision (a) within 120 days after receiving the application. (c) A local agency may establish minimum and maximum unit size requirements for both attached and detached accessory dwelling units. No minimum or maximum size for an accessory dwelling unit, or size based upon a percentage of the existing dwelling, shall be established by ordinance for either attached or detached dwellings that does not permit at least an efficiency unit to be constructed in compliance with local development standards. Accessory dwelling units shall not be required to provide fire sprinklers if they are not required for the primary residence. 94 Ch. 735 —8 (d) Notwithstanding any other law, a local agency, whether or not it has adopted an ordinance governing accessory dwelling units in accordance with subdivision (a), shall not impose parking standards for an accessory dwelling unit in any of the following instances: (1) The accessory dwelling unit is located within one-half mile of public transit. (2) The accessory dwelling unit is located within an architecturally and historically significant historic district. (3) The accessory dwelling unit is part of the existing primary residence or an existing accessory structure. (4) When on -street parking permits are required but not offered to the occupant of the accessory dwelling unit. (5) When there is a car share vehicle located within one block of the accessory dwelling unit. (e) Notwithstanding subdivisions (a) to (d), inclusive, a local agency shall ministerially approve an application for a building permit to create within a single-family residential zone one accessory dwelling unit per single-family lot if the unit is contained within the existing space of a single-family residence or accessory structure, has independent exterior access from the existing residence, and the side and rear setbacks are sufficient for fire safety. Accessory dwelling units shall not be required to provide fire sprinklers if they are not required for the primary residence. (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) Accessory dwelling units shall not be considered new residential uses for the purposes of calculating local agency connection fees or capacity charges for utilities, including water and sewer service. (A) For an accessory dwelling unit described in subdivision (e), a local agency 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. (B) For an accessory dwelling unit that is not described in subdivision (e), a local agency 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 size or the number of its plumbing fixtures, upon the water or sewer system. This fee or charge shall not exceed the reasonable cost of providing this service. (g) This section does not limit the authority of local agencies to adopt less restrictive requirements for the creation of an accessory dwelling unit. (h) Local agencies 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. (i) As used in this section, the following terms mean: 94 9— Ch. 735 (1) "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. (2) "Local agency" means a city, county, or city and county, whether general law or chartered. (3) For purposes of this section, "neighborhood" has the same meaning as set forth in Section 65589.5. (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 accessory dwelling unit also includes the following: (A) An efficiency unit, as defined in Section 17958.1 of Health and Safety Code. (B) A manufactured home, as defined in Section 18007 of the Health and Safety Code. (5) "Passageway" means a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the accessory dwelling unit. 0) 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 (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. SEC. 2. Section 1.5 of this bill incorporates amendments to Section 65852.2 of the Government Code proposed by both this bill and Senate Bill 1069. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2017, (2) each bill amends Section 65852.2 of the Government Code, and (3) this bill is enacted after Senate Bill 1069, in which case Section 1 of this bill shall not become operative. SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code. L91 94 O M Senate Bill No. 1069 CHAPTER 720 An act to amend Sections 65582.1, 65583.1, 65589.4, 65852.150, 65852.2, and 66412.2 of the Government Code, relating to land use. [Approved by Governor September 27, 2016. Filed with Secretary of State September 27, 2016.] LEGISLATIVE COUNSEL'S DIGEST SB 1069, Wieckowski. Land use: zoning. The Planning and Zoning Law authorizes the legislative body of a city or county to regulate, among other things, the intensity of land use, and also authorizes a local agency to provide by ordinance for the creation of 2nd units in single-family and multifamily residential zones, as specified. That law makes findings and declarations with respect to the value of 2nd units to California's housing supply. This bill would replace the term "second unit" with "accessory dwelling unit" throughout the law. The bill would additionally find and declare that, among other things, allowing accessory dwelling units in single-family or multifamily residential zones provides additional rental housing stock, and these units are an essential component of housing supply in California. The Planning and Zoning Law authorizes the ordinance for the creation of 2nd units in single-family and multifamily residential zones to include specified provisions regarding areas where accessory dwelling units may be located, standards, including the imposition of parking standards, and lot density. Existing law, when a local agency has not adopted an ordinance governing 2nd units as so described, requires the local agency to approve or disapprove the application ministerially, as provided. This bill would instead require the ordinance for the creation of accessory dwelling units to include the provisions described above. The bill would prohibit the imposition of parking standards under specified circumstances. The bill would revise requirements for the approval or disapproval of an accessory dwelling unit application when a local agency has not adopted an ordinance. The bill would also require the ministerial approval of an application for a building permit to create one accessory dwelling unit within the existing space of a single-family residence or accessory structure, as specified. The bill would prohibit a local agency from requiring an applicant for this permit to install a new or separate utility connection directly between the unit and the utility or imposing a related connection fee or capacity charge. The bill would authorize a local agency to impose this requirement for other accessory dwelling units. This bill would incorporate additional changes in Section 65852.2 of the Government Code proposed by AB 2299 that would become operative only 90 Ch. 720 —2 if AB 2299 and this bill are both chaptered and become effective on or before January 1, 2017, and this bill is chaptered last. By increasing the duties of local officials, this bill would impose a state -mandated local program. 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. The people of the State of California do enact as follows: SECTION 1. Section 65582.1 of the Government Code is amended to read: 65582.1. The Legislature finds and declares that it has provided reforms and incentives to facilitate and expedite the construction of affordable housing. Those reforms and incentives can be found in the following provisions: (a) Housing element law (Article 10.6 (commencing with Section 65580) of Chapter 3). (b) Extension of statute of limitations in actions challenging the housing element and brought in support of affordable housing (subdivision (d) of Section 65009). (c) Restrictions on disapproval of housing developments (Section 65589.5). (d) Priority for affordable housing in the allocation of water and sewer hookups (Section 65589.7). (e) Least cost zoning law (Section 65913.1). (f) Density bonus law (Section 65915). (g) Accessory dwelling units (Sections 65852.150 and 65852.2). (h) By -right housing, in which certain multifamily housing are designated a permitted use (Section 65589.4). (i) No -net -loss -in zoning density law limiting downzonings and density reductions (Section 65863). 0) Requiring persons who sue to halt affordable housing to pay attorney fees (Section 65914) or post a bond (Section 529.2 of the Code of Civil Procedure). (k) Reduced time for action on affordable housing applications under the approval of development permits process (Article 5 (commencing with Section 65950) of Chapter 4.5). (l) Limiting moratoriums on multifamily housing (Section 65858). (m) Prohibiting discrimination against affordable housing (Section 65008). (n) California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3). 90 B-11 Ch. 720 (o) Community redevelopment law (Part 1 (commencing with Section 33000) of Division 24 of the Health and Safety Code, and in particular Sections 33334.2 and 33413). SEC. 2. Section 65583.1 of the Government Code is amended to read: 65583.1. (a) The Department of Housing and Community Development, in evaluating a proposed or adopted housing element for substantial compliance with this article, may allow a city or county to identify adequate sites, as required pursuant to Section 65583, by a variety of methods, including, but not limited to, redesignation of property to a more intense land use category and increasing the density allowed within one or more categories. The department may also allow a city or county to identify sites for accessory dwelling units based on the number of accessory dwelling units developed in the prior housing element planning period whether or not the units are permitted by right, the need for these units in the community, the resources or incentives available for their development, and any other relevant factors, as determined by the department. Nothing in this section reduces the responsibility of a city or county to identify, by income category, the total number of sites for residential development as required by this article. (b) Sites that contain permanent housing units located on a military base undergoing closure or conversion as a result of action pursuant to the Defense Authorization Amendments and Base Closure and Realignment Act (Public Law 100-526), the Defense Base Closure and Realignment Act of 1990 (Public Law 101-510), or any subsequent act requiring the closure or conversion of a military base may be identified as an adequate site if the housing element demonstrates that the housing units will be available for occupancy by households within the planning period of the element. No sites containing housing units scheduled or planned for demolition or conversion to nonresidential uses shall qualify as an adequate site. Any city, city and county, or county using this subdivision shall address the progress in meeting this section in the reports provided pursuant to paragraph (1) of subdivision (b) of Section 65400. (c) (1) The Department of Housing and Community Development may allow a city or county to substitute the provision of units for up to 25 percent of the community's obligation to identify adequate sites for any income category in its housing element pursuant to paragraph (1) of subdivision (c) of Section 65583 where the community includes in its housing element a program committing the local government to provide units in that income category within the city or county that will be made available through the provision of committed assistance during the planning period covered by the element to low- and very low income households at affordable housing costs or affordable rents, as defined in Sections 50052.5 and 50053 of the Health and Safety Code, and which meet the requirements of paragraph (2). Except as otherwise provided in this subdivision, the community may substitute one dwelling unit for one dwelling unit site in the applicable income category. The program shall do all of the following: 90 B-12 Ch. 720 —4 (A) Identify the specific, existing sources of committed assistance and dedicate a specific portion of the funds from those sources to the provision of housing pursuant to this subdivision. (B) Indicate the number of units that will be provided to both low- and very low income households and demonstrate that the amount of dedicated funds is sufficient to develop the units at affordable housing costs or affordable rents. (C) Demonstrate that the units meet the requirements of paragraph (2). (2) Only units that comply with subparagraph (A), (B), or (C) qualify for inclusion in the housing element program described in paragraph (1), as follows: (A) Units that are to be substantially rehabilitated with committed assistance from the city or county and constitute a net increase in the community's stock of housing affordable to low- and very low income households. For purposes of this subparagraph, a unit is not eligible to be "substantially rehabilitated" unless all of the following requirements are met: (i) At the time the unit is identified for substantial rehabilitation, (1) the local government has determined that the unit is at imminent risk of loss to the housing stock, (11) the local government has committed to provide relocation assistance pursuant to Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 to any occupants temporarily or permanently displaced by the rehabilitation or code enforcement activity, or the relocation is otherwise provided prior to displacement either as a condition of receivership, or provided by the property owner or the local government pursuant to Article 2.5 (commencing with Section 17975) of Chapter 5 of Part 1.5 of Division 13 of the Health and Safety Code, or as otherwise provided by local ordinance; provided the assistance includes not less than the equivalent of four months' rent and moving expenses and comparable replacement housing consistent with the moving expenses and comparable replacement housing required pursuant to Section 7260, (III) the local government requires that any displaced occupants will have the right to reoccupy the rehabilitated units, and (IV) the unit has been found by the local government or a court to be unfit for human habitation due to the existence of at least four violations of the conditions listed in subdivisions (a) to (g), inclusive, of Section 17995.3 of the Health and Safety Code. (ii) The rehabilitated unit will have long-term affordability covenants and restrictions that require the unit to be available to, and occupied by, persons or families of low- or very low income at affordable housing costs for at least 20 years or the time period required by any applicable federal or state law or regulation. (iii) Prior to initial occupancy after rehabilitation, the local code enforcement agency shall issue a certificate of occupancy indicating compliance with all applicable state and local building code and health and safety code requirements. (B) Units that are located either on foreclosed property or in a multifamily rental or ownership housing complex of three or more units, are converted 90 B-13 5— Ch. 720 with committed assistance from the city or county from nonaffordable to affordable by acquisition of the unit or the purchase of affordability covenants and restrictions for the unit, are not acquired by eminent domain, and constitute a net increase in the community's stock of housing affordable to low- and very low income households. For purposes of this subparagraph, a unit is not converted by acquisition or the purchase of affordability covenants unless all of the following occur: (i) The unit is made available for rent at a cost affordable to low- or very low income households. (ii) At the time the unit is identified for acquisition, the unit is not available at an affordable housing cost to either of the following: (I) Low-income households, if the unit will be made affordable to low-income households. (II) Very low income households, if the unit will be made affordable to very low income households. (iii) At the time the unit is identified for acquisition the unit is not occupied by low- or very low income households or if the acquired unit is occupied, the local government has committed to provide relocation assistance prior to displacement, if any, pursuant to Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 to any occupants displaced by the conversion, or the relocation is otherwise provided prior to displacement; provided the assistance includes not less than the equivalent of four months' rent and moving expenses and comparable replacement housing consistent with the moving expenses and comparable replacement housing required pursuant to Section 7260. (iv) The unit is in decent, safe, and sanitary condition at the time of occupancy. (v) The unit has long-term affordability covenants and restrictions that require the unit to be affordable to persons of low- or very low income for not less than 55 years. (vi) For units located in multifamily ownership housing complexes with three or more units, or on or after January 1, 2015, on foreclosed properties, at least an equal number of new -construction multifamily rental units affordable to lower income households have been constructed in the city or county within the same planning period as the number of ownership units to be converted. (C) Units that will be preserved at affordable housing costs to persons or families of low- or very low incomes with committed assistance from the city or county by acquisition of the unit or the purchase of affordability covenants for the unit. For purposes of this subparagraph, a unit shall not be deemed preserved unless all of the following occur: (i) The unit has long-term affordability covenants and restrictions that require the unit to be affordable to, and reserved for occupancy by, persons of the same or lower income group as the current occupants for a period of at least 40 years. (ii) The unit is within an "assisted housing development," as defined in paragraph (3) of subdivision (a) of Section 65863.10. 90 Ch. 720 —6 (iii) The city or county finds, after a public hearing, that the unit is eligible, and is reasonably expected, to change from housing affordable to low- and very low income households to any other use during the next five years due to termination of subsidy contracts, mortgage prepayment, or expiration of restrictions on use. (iv) The unit is in decent, safe, and sanitary condition at the time of occupancy. (v) At the time the unit is identified for preservation it is available at affordable cost to persons or families of low- or very low income. (3) This subdivision does not apply to any city or county that, during the current or immediately prior planning period, as defined by Section 65588, has not met any of its share of the regional need for affordable housing, as defined in Section 65584, for low- and very low income households. A city or county shall document for any housing unit that a building permit has been issued and all development and permit fees have been paid or the unit is eligible to be lawfully occupied. (4) For purposes of this subdivision, "committed assistance" means that the city or county enters into a legally enforceable agreement during the period from the beginning of the projection period until the end of the second year of the planning period that obligates sufficient available funds to provide the assistance necessary to make the identified units affordable and that requires that the units be made available for occupancy within two years of the execution of the agreement. "Committed assistance" does not include tenant -based rental assistance. (5) For purposes of this subdivision, "net increase" includes only housing units provided committed assistance pursuant to subparagraph (A) or (B) of paragraph (2) in the current planning period, as defined in Section 65588, that were not provided committed assistance in the immediately prior planning period. (6) For purposes of this subdivision, "the time the unit is identified" means the earliest time when any city or county agent, acting on behalf of a public entity, has proposed in writing or has proposed orally or in writing to the property owner, that the unit be considered for substantial rehabilitation, acquisition, or preservation. (7) In the third year of the planning period, as defined by Section 65588, in the report required pursuant to Section 65400, each city or county that has included in its housing element a program to provide units pursuant to subparagraph (A), (B), or (C) of paragraph (2) shall report in writing to the legislative body, and to the department within 30 days of making its report to the legislative body, on its progress in providing units pursuant to this subdivision. The report shall identify the specific units for which committed assistance has been provided or which have been made available to low - and very low income households, and it shall adequately document how each unit complies with this subdivision. If, by July 1 of the third year of the planning period, the city or county has not entered into an enforceable agreement of committed assistance for all units specified in the programs adopted pursuant to subparagraph (A), (B), or (C) of paragraph (2), the city 90 B-15 7— Ch. 720 or county shall, not later than July 1 of the fourth year of the planning period, adopt an amended housing element in accordance with Section 65585, identifying additional adequate sites pursuant to paragraph (1) of subdivision (c) of Section 65583 sufficient to accommodate the number of units for which committed assistance was not provided. If a city or county does not amend its housing element to identify adequate sites to address any shortfall, or fails to complete the rehabilitation, acquisition, purchase of affordability covenants, or the preservation of any housing unit within two years after committed assistance was provided to that unit, it shall be prohibited from identifying units pursuant to subparagraph (A), (B), or (C) of paragraph (2) in the housing element that it adopts for the next planning period, as defined in Section 65588, above the number of units actually provided or preserved due to committed assistance. (d) A city or county may reduce its share of the regional housing need by the number of units built between the start of the projection period and the deadline for adoption of the housing element. If the city or county reduces its share pursuant to this subdivision, the city or county shall include in the housing element a description of the methodology for assigning those housing units to an income category based on actual or projected sales price, rent levels, or other mechanisms establishing affordability. SEC. 3. Section 65589.4 of the Government Code is amended to read: 65589.4. (a) An attached housing development shall be a permitted use not subject to a conditional use permit on any parcel zoned for an attached housing development if local law so provides or if it satisfies the requirements of subdivision (b) and either of the following: (1) The attached housing development satisfies the criteria of Section 21159.22, 21159.23, or 21159.24 of the Public Resources Code. (2) The attached housing development meets all of the following criteria: (A) The attached housing development is subject to a discretionary decision other than a conditional use permit and a negative declaration or mitigated negative declaration has been adopted for the attached housing development under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). If no public hearing is held with respect to the discretionary decision, then the negative declaration or mitigated negative declaration for the attached housing development may be adopted only after a public hearing to receive comments on the negative declaration or mitigated negative declaration. (B) The attached housing development is consistent with both the jurisdiction's zoning ordinance and general plan as it existed on the date the application was deemed complete, except that an attached housing development shall not be deemed to be inconsistent with the zoning designation for the site if that zoning designation is inconsistent with the general plan only because the attached housing development site has not been rezoned to conform with the most recent adopted general plan. (C) The attached housing development is located in an area that is covered by one of the following documents that has been adopted by the jurisdiction 90 IS Ch. 720 —8 within five years of the date the application for the attached housing development was deemed complete: (i) A general plan. (ii) A revision or update to the general plan that includes at least the land use and circulation elements. (iii) An applicable community plan. (iv) An applicable specific plan. (D) The attached housing development consists of not more than 100 residential units with a minimum density of not less than 12 units per acre or a minimum density of not less than eight units per acre if the attached housing development consists of four or fewer units. (E) The attached housing development is located in an urbanized area as defined in Section 21071 of the Public Resources Code or within a census -defined place with a population density of at least 5,000 persons per square mile or, if the attached housing development consists of 50 or fewer units, within an incorporated city with a population density of at least 2,500 persons per square mile and a total population of at least 25,000 persons. (F) The attached housing development is located on an infill site as defined in Section 21061.0.5 of the Public Resources Code. (b) At least 10 percent of the units of the attached housing development shall be available at affordable housing cost to very low income households, as defined in Section 50105 of the Health and Safety Code, or at least 20 percent of the units of the attached housing development shall be available at affordable housing cost to lower income households, as defined in Section 50079.5 of the Health and Safety Code, or at least 50 percent of the units of the attached housing development available at affordable housing cost to moderate -income households, consistent with Section 50052.5 of the Health and Safety Code. The developer of the attached housing development shall provide sufficient legal commitments to the local agency to ensure the continued availability and use of the housing units for very low, low-, or moderate -income households for a period of at least 30 years. (c) Nothing in this section shall prohibit a local agency from applying design and site review standards in existence on the date the application was deemed complete. (d) The provisions of this section are independent of any obligation of a jurisdiction pursuant to subdivision (c) of Section 65583 to identify multifamily sites developable by right. (e) This section does not apply to the issuance of coastal development permits pursuant to the California Coastal Act (Division 20 (commencing with Section 30000) of the Public Resources Code). (f) This section does not relieve a public agency from complying with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) or relieve an applicant or public agency from complying with the Subdivision Map Act (Division 2 (commencing with Section 66473)). 90 B-17 9— Ch. 720 (g) This section is applicable to all cities and counties, including charter cities, because the Legislature finds that the lack of affordable housing is of vital statewide importance, and thus a matter of statewide concern. (h) For purposes of this section, "attached housing development" means a newly constructed or substantially rehabilitated structure containing two or more dwelling units and consisting only of residential units, but does not include an accessory dwelling unit, as defined by paragraph (4) of subdivision 0) of Section 65852.2, or the conversion of an existing structure to condominiums. SEC. 4. Section 65852.150 of the Government Code is amended to read: 65852.150. (a) The Legislature finds and declares all of the following: (1) Accessory dwelling units are a valuable form of housing in California. (2) Accessory dwelling units provide housing for family members, students, the elderly, in-home health care providers, the disabled, and others, at below market prices within existing neighborhoods. (3) Homeowners who create accessory dwelling units benefit from added income, and an increased sense of security. (4) Allowing accessory dwelling units in single-family or multifamily residential zones provides additional rental housing stock in California. (5) California faces a severe housing crisis. (6) The state is falling far short of meeting current and future housing demand with serious consequences for the state's economy, our ability to build green infill consistent with state greenhouse gas reduction goals, and the well-being of our citizens, particularly lower and middle-income earners. (7) Accessory dwelling units offer lower cost housing to meet the needs of existing and future residents within existing neighborhoods, while respecting architectural character. (8) Accessory dwelling units are, therefore, an essential component of California's housing supply. (b) It is the intent of the Legislature that an accessory dwelling unit ordinance adopted by a local agency has the effect of providing for the creation of accessory dwelling units and that provisions in this ordinance relating to matters including unit size, parking, fees, and other requirements, are not so arbitrary, excessive, or burdensome so as to unreasonably restrict the ability of homeowners to create accessory dwelling units in zones in which they are authorized by local ordinance. SEC. 5. Section 65852.2 of the Government Code is amended to read: 65852.2. (a) (1) A local agency may, by ordinance, provide for the creation of accessory dwelling units in single-family and multifamily residential zones. 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 criteria, that may include, but are not limited to, the adequacy of water and sewer services and the impact of accessory dwelling units on traffic flow and public safety. (B) Impose standards on accessory dwelling units that include, but are not limited to, parking, height, setback, lot coverage, architectural review, 90 IS i Ch. 720 _10— maximum 10— maximum size of a unit, and standards that prevent adverse impacts on any real property that is listed in the California Register of Historic Places. (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. (2) The ordinance shall not be considered in the application of any local ordinance, policy, or program to limit residential growth. (3) When a local agency receives its first application on or after July 1, 2003, for a permit pursuant to this subdivision, the application shall be considered 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, within 120 days of submittal of a complete building permit application. A local agency may charge a fee to reimburse it for costs that it incurs as a result of amendments to this paragraph enacted during the 2001-02 Regular Session of the Legislature, including the costs of adopting or amending any ordinance that provides for the creation of accessory dwelling units. (b) (1) When a local agency that has not adopted an ordinance governing accessory dwelling units in accordance with subdivision (a) receives its first application on or after July 1, 1983, for a permit pursuant to this subdivision, the local agency shall accept the application and approve or disapprove the application ministerially without discretionary review pursuant to this subdivision unless it adopts an ordinance in accordance with subdivision (a) within 120 days after receiving the application. Notwithstanding Section 65901 or 65906, every local agency shall ministerially approve the creation of an accessory dwelling unit if the accessory dwelling unit complies with all of the following: (A) The unit is not intended for sale separate from the primary residence and may be rented. (B) The lot is zoned for single-family or multifamily use. (C) The lot contains an existing single-family dwelling. (D) The accessory dwelling unit is either attached to the existing dwelling and located within the living area of the existing dwelling or detached from the existing dwelling and located on the same lot as the existing dwelling. (E) The increased floor area of an attached accessory dwelling unit shall not exceed 50 percent of the existing living area, with a maximum increase in floor area of 1,200 square feet. (F) The total area of floorspace for a detached accessory dwelling unit shall not exceed 1,200 square feet. (G) Requirements relating to height, setback, lot coverage, architectural review, site plan review, fees, charges, and other zoning requirements generally applicable to residential construction in the zone in which the property is located. (H) Local building code requirements that apply to detached dwellings, as appropriate. 90 IS -11— Ch. 720 (I) Approval by the local health officer where a private sewage disposal system is being used, if required. (2) No other local ordinance, policy, or regulation shall be the basis for the denial of a building permit or a use permit under this subdivision. (3) This subdivision establishes the maximum standards that local agencies shall use to evaluate proposed accessory dwelling units on lots zoned for residential use that contain an existing single-family dwelling. No additional standards, other than those provided in this subdivision or subdivision (a), shall be utilized or imposed, except that a local agency may require an applicant for a permit issued pursuant to this subdivision to be an owner -occupant or that the property be used for rentals of terms longer than 30 days. (4) A local agency may amend its zoning ordinance or general plan to incorporate the policies, procedures, or other provisions applicable to the creation of accessory dwelling units if these provisions are consistent with the limitations of this subdivision. (5) An accessory dwelling unit that conforms to this subdivision 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 units shall not be considered in the application of any local ordinance, policy, or program to limit residential growth. (c) A local agency may establish minimum and maximum unit size requirements for both attached and detached accessory dwelling units. No minimum or maximum size for an accessory dwelling unit, or size based upon a percentage of the existing dwelling, shall be established by ordinance for either attached or detached dwellings that does not otherwise permit at least an efficiency unit to be constructed in compliance with local development standards. Accessory dwelling units shall not be required to provide fire sprinklers if they are not required for the primary residence. (d) Parking requirements for accessory dwelling units shall not exceed one parking space per unit or per bedroom. These spaces may be provided as tandem parking on an existing driveway. Off-street 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 fire and life safety conditions. This subdivision shall not apply to a unit that is described in subdivision (e). (e) Notwithstanding any other law, a local agency, whether or not it has adopted an ordinance governing accessory dwelling units in accordance with subdivision (a), shall not impose parking standards for an accessory dwelling unit in any of the following instances: (1) The accessory dwelling unit is located within one-half mile of public transit. (2) The accessory dwelling unit is located within an architecturally and historically significant historic district. 90 Ch. 720 —12— (3) 12— (3) The accessory dwelling unit is part of the existing primary residence or an existing accessory structure. (4) When on -street parking permits are required but not offered to the occupant of the accessory dwelling unit. (5) When there is a car share vehicle located within one block of the accessory dwelling unit. (f) Notwithstanding subdivisions (a) to (e), inclusive, a local agency shall ministerially approve an application for a building permit to create within a single-family residential zone one accessory dwelling unit per single-family lot if the unit is contained within the existing space of a single-family residence or accessory structure, has independent exterior access from the existing residence, and the side and rear setbacks are sufficient for fire safety. Accessory dwelling units shall not be required to provide fire sprinklers if they are not required for the primary residence. (g) (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) Accessory dwelling units shall not be considered new residential uses for the purposes of calculating local agency connection fees or capacity charges for utilities, including water and sewer service. (A) For an accessory dwelling unit described in subdivision (f), a local agency 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. (B) For an accessory dwelling unit that is not described in subdivision (f), a local agency 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 size or the number of its plumbing fixtures, upon the water or sewer system. This fee or charge shall not exceed the reasonable cost of providing this service. (h) This section does not limit the authority of local agencies to adopt less restrictive requirements for the creation of accessory dwelling units. (i) Local agencies shall submit a copy of the ordinances adopted pursuant to subdivision (a) to the Department of Housing and Community Development within 60 days after adoption. 0) As used in this section, the following terms mean: (1) "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. (2) "Local agency" means a city, county, or city and county, whether general law or chartered. (3) For purposes of this section, "neighborhood" has the same meaning as set forth in Section 65589.5. (4) "Accessory dwelling unit" means an attached or a detached residential dwelling unit which provides complete independent living facilities for one 90 B-21 -13— Ch. 720 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 accessory dwelling unit also includes the following: (A) An efficiency unit, as defined in Section 17958.1 of Health and Safety Code. (B) A manufactured home, as defined in Section 18007 of the Health and Safety Code. (k) 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 (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. SEC. 5.5. Section 65852.2 of the Government Code is amended to read: 65852.2. (a) (1) A local agency may, by ordinance, provide for the creation of accessory dwelling units in single-family and multifamily residential zones. 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 criteria, that may include, but are not limited to, the adequacy of water and sewer services and the impact of accessory dwelling units on traffic flow and public safety. (B) (i) Impose standards on accessory dwelling units that include, but are not limited to, parking, height, setback, lot coverage, 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 Historic Places. (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) The unit is not intended for sale separate from the primary residence and may be rented. (ii) The lot is zoned for single-family or multifamily use and contains an existing, single-family dwelling. (iii) The accessory dwelling unit is either attached to the existing dwelling or located within the living area of the existing dwelling or detached from the existing dwelling and located on the same lot as the existing dwelling. (iv) The increased floor area of an attached accessory dwelling unit shall not exceed 50 percent of the existing living area, with a maximum increase in floor area of 1,200 square feet. (v) The total area of floorspace for a detached accessory dwelling unit shall not exceed 1,200 square feet. 90 B-22 Ch. 720 —14— (vi) 14— (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 garage that is converted to a accessory dwelling unit, and a setback of no more than five feet from the side and rear lot lines shall be required for an accessory dwelling unit that is constructed above a garage. (viii) Local building code requirements that apply to detached dwellings, as appropriate. (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 unit or per bedroom. These spaces may be provided as tandem parking on an existing 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, or that it is not permitted anywhere else in the jurisdiction. (III) This clause shall not apply to a 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, and the local agency requires that those offstreet parking spaces be replaced, the replacement spaces may be located in any configuration on the same lot as the accessory dwelling unit, including, but not limited to, as covered spaces, uncovered spaces, or tandem spaces, or by the use of mechanical automobile parking lifts. This clause shall not apply to a unit that is described in subdivision (d). (2) The ordinance shall not be considered in the application of any local ordinance, policy, or program to limit residential growth. (3) When a local agency receives its first application on or after July 1, 2003, for a permit pursuant to this subdivision, the application shall be considered 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, within 120 days after receiving the application. A local agency may charge a fee to reimburse it for costs that it incurs as a result of amendments to this paragraph enacted during the 2001-02 Regular Session of the Legislature, including the costs of adopting or amending any ordinance that provides for the creation of an accessory dwelling unit. (4) 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 subsequent to the effective date of the act adding this paragraph 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. In the event that a local agency 90 B-23 -15— Ch. 720 has an existing accessory dwelling unit ordinance that fails to meet the requirements of this subdivision, that ordinance shall be null and void upon the effective date of the act adding this paragraph 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. (5) No other local ordinance, policy, or regulation shall be the basis for the denial of a building permit or a use permit under this subdivision. (6) This subdivision establishes the maximum standards that local agencies shall use to evaluate a proposed accessory dwelling unit on a lot zoned for residential use that contains an existing single-family dwelling. No additional standards, other than those provided in this subdivision, shall be utilized or imposed, except that a local agency may require an applicant for a permit issued pursuant to this subdivision to be an owner -occupant or that the property be used for rentals of terms longer than 30 days. (7) 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. (8) 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) When a local agency that has not adopted an ordinance governing accessory dwelling units in accordance with subdivision (a) receives its first application on or after July 1, 1983, for a permit to create an accessory dwelling unit pursuant to this subdivision, the local agency shall accept the application and approve or disapprove the application ministerially without discretionary review pursuant to subdivision (a) within 120 days after receiving the application. (c) A local agency may establish minimum and maximum unit size requirements for both attached and detached accessory dwelling units. No minimum or maximum size for an accessory dwelling unit, or size based upon a percentage of the existing dwelling, shall be established by ordinance for either attached or detached dwellings that does not permit at least an efficiency unit to be constructed in compliance with local development standards. Accessory dwelling units shall not be required to provide fire sprinklers if they are not required for the primary residence. (d) Notwithstanding any other law, a local agency, whether or not it has adopted an ordinance governing accessory dwelling units in accordance with subdivision (a), shall not impose parking standards for an accessory dwelling unit in any of the following instances: (1) The accessory dwelling unit is located within one-half mile of public transit. 90 Ch. 720 —16— (2) 16— (2) The accessory dwelling unit is located within an architecturally and historically significant historic district. (3) The accessory dwelling unit is part of the existing primary residence or an existing accessory structure. (4) When on -street parking permits are required but not offered to the occupant of the accessory dwelling unit. (5) When there is a car share vehicle located within one block of the accessory dwelling unit. (e) Notwithstanding subdivisions (a) to (d), inclusive, a local agency shall ministerially approve an application for a building permit to create within a single-family residential zone one accessory dwelling unit per single-family lot if the unit is contained within the existing space of a single-family residence or accessory structure, has independent exterior access from the existing residence, and the side and rear setbacks are sufficient for fire safety. Accessory dwelling units shall not be required to provide fire sprinklers if they are not required for the primary residence. (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) Accessory dwelling units shall not be considered new residential uses for the purposes of calculating local agency connection fees or capacity charges for utilities, including water and sewer service. (A) For an accessory dwelling unit described in subdivision (e), a local agency 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. (B) For an accessory dwelling unit that is not described in subdivision (e), a local agency 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 size or the number of its plumbing fixtures, upon the water or sewer system. This fee or charge shall not exceed the reasonable cost of providing this service. (g) This section does not limit the authority of local agencies to adopt less restrictive requirements for the creation of an accessory dwelling unit. (h) Local agencies 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. (i) As used in this section, the following terms mean: (1) "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. (2) "Local agency" means a city, county, or city and county, whether general law or chartered. (3) For purposes of this section, "neighborhood" has the same meaning as set forth in Section 65589.5. 90 B-25 -17— Ch. 720 (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 accessory dwelling unit also includes the following: (A) An efficiency unit, as defined in Section 17958.1 of Health and Safety Code. (B) A manufactured home, as defined in Section 18007 of the Health and Safety Code. (5) "Passageway" means a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the accessory dwelling unit. 0) 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 (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. SEC. 6. Section 66412.2 of the Government Code is amended to read: 66412.2. This division shall not apply to the construction, financing, or leasing of dwelling units pursuant to Section 65852.1 or accessory dwelling units pursuant to Section 65852.2, but this division shall be applicable to the sale or transfer, but not leasing, of those units. SEC. 7. Section 5.5 of this bill incorporates amendments to Section 65852.2 of the Government Code proposed by both this bill and Assembly Bill 2299. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2017, (2) each bill amends Section 65852.2 of the Government Code, and (3) this bill is enacted after Assembly Bill 2299, in which case Section 5 of this bill shall not become operative. SEC. 8. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code. L91 90