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CC SR 20190806 01 - Employee Housing Code Amendment PUBLIC HEARING Date: August 6, 2019 Subject: Consideration and possible action to initiate Interpretation proceedings in lieu of adopting an ordinance to allow employee housing consisting of six or fewer persons as a permitted use in the single-family residential zoning district Recommendation: 1) Accept the Planning Commission’s recommendation to the City Council not to adopt an ordinance that would allow employee housing as a permitted use in single-family residential zoning districts; and, 2) Initiate interpretation proceedings to allow employee housing consisting of six or fewer persons as a permitted use in the single-family residential zoning district in lieu of a code amendment 3) Report of Notice Given: City Clerk 4) Declare Public Hearing Open: Mayor Duhovic 5) Request for Staff Report: Mayor Duhovic 6) Staff Report & Recommendation: So Kim, Deputy Director/Planning Manager 7) Council Questions of Staff (factual and without bias): 8) Testimony from members of the public: The normal time limit for each speaker is three (3) minutes. The Presiding Officer may grant additional time to a representative speaking for an entire group. The Mayor also may adjust the time limit for individual speakers depending upon the number of spea kers who intend to speak. 7. Declare Hearing Closed/or Continue the Public Hearing to a later date: Mayor Duhovic 8. Council Deliberation: The Council may ask staff to address questions raised by the testimony, or to clarify matters. Staff and/or Council may also answer questions posed by speakers during their testimony. The Council will then debate and/or make motions on the matter. 9. Council Action: The Council may: vote on the item; offer amendments or substitute motions to decide the matter; reopen the hearing for additional testimony; continue the matter to a later date for a decision. Cover Page RANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 08/06/2019 AGENDA REPORT AGENDA HEADING: Public Hearing AGENDA DESCRIPTION: Consideration and possible action to initiate Interpretation proceedings in lieu of adopting an ordinance to allow employee housing consisting of six or fewer persons as a permitted use in the single-family residential zoning district RECOMMENDED COUNCIL ACTION: (1) Accept the Planning Commission’s recommendation to the City Council not to adopt an ordinance that would allow employee housing as a permitted use in single-family residential zoning districts; and, (2) Initiate interpretation proceedings to allow employee housing consisting of six or fewer persons as a permitted use in the single-family residential zoning district in lieu of a code amendment. FISCAL IMPACT: None Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: So Kim, Deputy Director/Planning Manager REVIEWED BY: Ara Mihranian, Director of Community Development APPROVED BY: Doug Willmore, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Planning Commission Resolution No. 2019-18 (page A-1) B. Planning Commission staff report dated July 9, 2019 (page B-1) C. June 18, 2019 City Council code amendment initiation staff report (page C-1) BACKGROUND AND DISCUSSION: The State of California requires every city and county to prepare and adopt a Housing Element as part of their respective General Plans. Accordingly, the City adopted its 2013-2021 Housing Element in February 2014, and it was certified by the California Department of Housing and Community Development (HCD) in April 2014. According to state law, the Housing Element is required to develop programs to accommodate the City's share of the regional housing need. The City implements these programs through various subprograms identified in the Housing Element. Specifically, the City’s Housing Element Program No. 9 requires a code amendment to remove governmental constraints related to the State Employee Housing Act. This program requires the City to amend its zoning ordinance to permit employee housing for six or 1 fewer employees as a single-family use, pursuant to California Health and Safety Code §17021.5 (Employee Housing Act). According to the Government Code (Health and Safety Code §17008(a)), employee housing is defined as: Privately-owned housing that is provided by an employer in connection with any work, whether or not rent is involved. Pursuant to Health and Safety Code §17021.5, employee housing shall not be included within the zoning definition of a boarding house, rooming house, hotel, dormitory, or other similar term that implies that the employee housing is a business run for profit or differs in any other way from a family dwelling. Additionally, the City cannot impose a conditional use permit, zoning variance, or other zoning clearance upon employee housing that serves six or fewer employees that would not be required of a family dwelling of the same type in the same single-family residential (SFR) zoning district. Currently, under the existing SFR zoning district (Zoning Code §17.02), any use which is specifically required to be permitted in a SFR district by state or federal law is listed as a permitted by-right use without requiring any discretionary review. As a result, employee housing is already implicitly allowed by right. Processing a code amendment would simply explicitly list employee housing as a permitted use. No changes to the application of the law would result from processing such a code amendment. In light of this, the City Council, at its June 18, 2019 meeting, initiated code amendment proceedings based on Staff’s recommendation that such an amendment would align with state law, as well as the City’s Housing Element Program No. 9. At the July 9 Planning Commission meeting, Staff presented the proposed code amendment that would explicitly allow employee housing in the SFR zoning district (Attachment B). After considering the information presented, including potential consequences for not aligning the Zoning Code (Title 17 of RPVMC) with state law, the Planning Commission moved to recommend that the City Council not adopt an ordinance to include express language in the Zoning Code allowing employee housing in the SFR zoning district (Attachment A). In summary, the Commission’s motion, memorialized in P.C. Resolution No. 2019-18 adopted on July 23, 2019 by a vote of 6-0 (Chairman Bradley was absent), is based on the following: 1. Employee housing is already allowed as “[any] other use which specifically is required to be permitted in a SFR district by state or federal law” is listed under uses and development permitted in the SFR zoning district. The proposed code amendment is therefore not necessary. 2. The Employee Housing Act does not require that employee housing be explicitly listed as a permitted use in the Zoning Code (Title 17). 3. The proposed code amendment may result in unintended consequences as there may be additional future changes by the state (e.g., changing the number of 2 permitted employees) that may result in inconsistency with the proposed code language. 4. The City should not seek to be proactive in these types of issues at this time in light of the rapid changes and developing law in this area. In response to the commission’s adopted motion, Staff contacted both the HCD and the City’s housing consultant, Ralph Castaneda, to determine if there would, in fact, be any consequences from the state for not amending the Zoning Code to allow employee housing as a permitted use in the residential zoning districts, because it is listed as Housing Element Program No. 9. To date, Staff has not heard back from HCD. However, Mr. Castaneda explained that he did not believe there would be a penalty if HCD found that the Zoning Code did not include specific language regarding employee housing and said that HCD would likely notify the City that a code amendment is required, at which time the City could proceed with processing such an amendment. Mr. Castaneda mentioned that the City could make an argument that the Zoning Code currently has specific language that states “any other use permitted by state or federal law” in the SFR zoning district, which is interpreted to allow employee housing, thereby meeting the Housing Element program. He mentioned that in the Progress Report that needs to be prepared at the end of the 2021 planning period for the Housing Element, the City can state that the program requiring a code amendment to permit employee housing was implemented by way of interpretation, and therefore, a code amendment was not required. Should the City decide to take this route, Mr. Castaneda recommended that the council have the Community Development Director (Director) issue a written interpretation to clarify that employee housing is a permitted use in the SFR zoning district. The interpretation would state that City’s SFR zoning districts allow certain uses by right (“permitted”) and that because the SFR zoning district classifies “any other use which specifically is required to be permitted in a SFR district by state or federal law” as a permitted use, employee housing is implicitly allowed as a permitted use per state law. In light of the Planning Commission’s and Mr. Castaneda’s recommendations, Staff recommends that the City Council initiate interpretation proceedings to allow employee housing in the City’s SFR zoning districts in lieu of adopting an ordinance. Rancho Palos Verdes Municipal Code (RPVMC) §17.90.010 provides a procedure for interpretations, which may be initiated by the City Council. Should the City Council initiate an interpretation procedure, the Director will prepare a written interpretation and transmit it to the Planning Commission and the City Council, and give public notice that such interpretation has been prepared. Such public notice will be published and given to the property owner, any interested parties, and any affected homeowner associations, as required for a code amendment, pursuant to Chapter 17.68 of the RPVMC. If no written request to have a public hearing to discuss the interpretation is made to the Director within the 15 days of the date of the public notice, the Director’s interpretation becomes effective and final. 3 CONCLUSION: For the reasons stated above, Staff recommends that the City Council accept the Planning Commission’s recommendation to not adopt an ordinance and initiate interpretation proceedings to allow employee housing as a permitted use in the SFR Zoning District in lieu of a code amendment. ALTERNATIVES: In addition to the Staff recommendations, the following alternatives are available for the City Council’s consideration: 1. Take no action 2. Give further direction to Staff 3. Direct Staff to prepare an ordinance to expressly allow employee housing as a permitted use in the SFR Zoning District and continue the public hearing to August 20, 2019 4 A-1P.C. RESOLUTION NO. 2019-18 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF RANCHO PALOS VERDES RECOMMENDING THAT THE CITY COUNCIL NOT ADOPT AN ORDINANCE AMENDING MUNICIPAL CODE SECTION 17.02.020 (USES AND DEVELOPMENT PERMITTED) TO DESIGNATE EMPLOYEE HOUSING CONSISTING OF 6 OR FEWER PERSONS AS A PERMITTED USE IN SINGLE-FAMILY RESIDENTIAL ZONING DISTRICT (CASE NO. PLCA2019-0005). WHEREAS, on June 18, 2019, the City Council authorized the initiation of a code amendment to allow employee housing as a permitted use in the Single-Family Residential Zoning District (Chapter 17.02.020 -Uses and development permitted) to align the Municipal Code with Housing Element Program No. 9; and, WHEREAS, on June 20, 2019, a notice was published in the Peninsula News, providing notice of a public hearing before the Planning Commission on July 9, 2019 pursuant to the requirements of the Rancho Palos Verdes Development Code; and, WHEREAS, on July 9, 2019, the Planning Commission held a duly-noticed public hearing and considered the amendment proposed by Staff. NOW, THEREFORE, THE PLANNING COMMISSION OF THE CITY OF RANCHO PALOS VERDES DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: Section 1: The facts set forth in the recitals of this Resolution are true and correct and incorporated herein by reference as though set forth in full. Section 2: The Planning Commission has reviewed and considered the proposed amendment to Chapter 17.02.020 (Uses and development permitted) to allow employee housing consisting of 6 or fewer persons as a permitted use in the Single-Family Residential Zoning District. Section 3: The Planning Commission recommends to the City Council that Section 17.02.020 (Uses and development permitted) of the Municipal Code not be amended to specifically designate 6 person employee housing as a permitted use in residential zoning areas for the following reasons: A. Employee housing is already allowed as "[any] other use which specifically is required to be permitted in a single family residential district by state or federal law" is listed under uses and development permitted in the Single-Family Residential zoning district. The proposed code amendment is therefore not necessary. P.C. Resolution No. 2019-18 Page 1 of 2 A-2B. The Employee Housing Act does not require that Employee Housing be explicitly listed as a permitted use in the Zoning Code (Title 17). C. The proposed code amendment may result in unintended consequences as there may be additional future changes by the State (e.g., changing the number of permitted employees) that may result in inconsistency with the proposed code language. D. The City should not seek to be proactive in these types of issues at this time in light of the rapid changes and developing law in this area. Section 4: For the foregoing reasons and based on the information and findings included in the Staff Report, Minutes and other records of proceedings, the Planning Commission of the City of Rancho Palos Verdes hereby recommends to the City Council against an ordinance to specifically designate employee housing consisting of 6 or fewer persons as a permitted use in the single-family zoning district (Case No. PLCA2019-0005). PASSED, APPROVED AND ADOPTED this 23rd day of July 2019, by the following vote: AYES: COMMISSIONERS NELSON, JAMES, SANTAROSA, SAADATNEJADI, PERESTAM, AND VICE-CHAIRMAN LEON NOES: NONE ABSTENTIONS: NONE RECUSALS: NONE ABSENT: CHAIRMAN BRADLEY Ara Mihranian, AICP Director of Community Development Secretary to the Planning Commission P.C. Resolution No. 2019-18 Page 2 of 2 MEMORANDUM TO: CHAIRMAN AND MEMBERS OF THE PLANNING COMMISSION FROM: ARA MIHRANIAN, DIRECTOR OF COMMUNITY DEVELOPMENT DATE: JULY 9, 2019 SUBJECT: ZONING CODE AMENDMENT TO ALLOW EMPLOYEE HOUSING AS A PERMITTED USE IN THE SINGLE-FAMILY RESIDENTIAL ZONING DISTRICT (CASE NO. PLCA2019-0005) Project Manager: So Kim, Deputy Director/Planning Manager RECOMMENDATION Adopt P.C. Resolution No. 2019-__, recommending to the City Council that an ordinance be adopted amending Municipal Code Section 17.02.020 (Uses and development permitted) to allow employee housing consisting of 6 or fewer persons as a permitted use in the Single-Family Residential Zoning District. BACKGROUND AND DISCUSSION The State of California requires every city and county to prepare and adopt a Housing Element as part of their respective General Plans. Accordingly, the City adopted its 2013- 2021 Housing Element in February 2014, and it was certified by the California Department of Housing and Community Development in April 2014. According to state law, the Housing Element is required to develop programs to accommodate the City's share of the regional housing need. The City implements these programs through various subprograms identified in the Housing Element. Specifically, Program No. 9 requires a code amendment to remove governmental constraints related to the State Employee Housing Act (see attached). This program requires the City to amend its zoning ordinance to permit employee housing for 6 or fewer employees as a single-family use, pursuant to California Health and Safety Code §17021.5 (Employee Housing Act). Employee housing is defined as privately-owned housing that is provided by an employer in connection with any work, whether or not rent is involved (Health and Safety Code §17008(a)). Pursuant to Health and Safety Code §17021.5, employee housing shall not be included within the zoning definition of a boarding house, rooming house, hotel, dormitory, or other similar term that implies that the employee housing is a business run for profit or differs in any other way from a family dwelling. Additionally, the B-1 City cannot impose a conditional use permit, zoning variance, or other zoning clearance upon employee housing that serves 6 or fewer employees that would not be required of a family dwelling of the same type in the same single-family zoning district. Currently, under the existing Single-Family Residential zoning district (Development Code §17.02), any use which is specifically required to be permitted in a single-family residential district by state or federal law is permitted. As a result, employee housing is already implicitly allowed. The proposed code amendment would simply explicitly list employee housing as a permitted use. No changes to the application of the law would result from the proposed code amendment. Pursuant to Municipal Code §17.68.030.8, "an amendment to any part of [the City's Development Code]...may be initiated by the Director and/or Planning Commission, upon petition to the City Council. The City Council shall review the petition to determine if the requested amendment and/or change is necessary or desirable." As employee housing is already inherently allowed and the code amendment is a required Housing Element program, on June 18, 2019, the City Council initiated said code amendment, thereby sending the proposed code amendment to the Planning Commission for its review and recommendation. For this reason, Staff is recommending that the Planning Commission recommend that the City Council adopt an ordinance amending Municipal Code §17.02.020 (Uses and development permitted) to allow employee housing as a permitted use in the Single-Family Residential Zoning District as shown below (the bold/underlined text represents new language; the text in strikethrough is to be deleted). 17.02.020 - Uses and development permitted. Only the following uses and developments may be conducted or constructed: A. Single-family residential buildings, mobile homes on city approved foundations, as provided in California Government Code Sections 65852.3 and 65852.4 and associated accessory structures for the residential use and occupancy of not more than one family and not more than one dwelling unit per lot, with the exception of second units approved pursuant to Chapter 17.10 (Second Unit Development Standards); B. Home occupations pursuant to Chapter 17.08 (Home Occupations); C. Private outdoor recreational uses, such as tennis courts, swimming pools and basketball courts, which are incidental to the residential use of the property; D. Residential planned development (RPD), pursuant to Chapter 17.42 (Residential Planned Development); B-2 E. The keeping of animals that are household pets, as defined in Section 17.96.945 (Household Pets) and small domestic animals for noncommercial purposes. Animals that are not household pets may be permitted pursuant to approval of an exotic animal permit; F. The keeping of large domestic animals, pursuant to Chapter 17.46 (Equestrian Overlay (Q) District); G. The keeping of a maximum of five bee hives for noncommercial purposes, except for the RS-A-5 residential zoning district, where a maximum of ten bee hives may be kept upon approval by the director of a site plan review application, which shall be appealable to the planning commission pursuant to Chapter 17.80 (Hearing Notice and Appeal Procedures); H. The growing of crops and/or fruits on one acre or less for noncommercial purposes; I. Small family day care; J. Temporary special uses and developments, if a special use permit is first obtained, pursuant to Chapter 17.62 (Special Use Permits); K. Commercial filming or photography, if a city film permit is first obtained, pursuant to Chapter 9.16 (Still Photography, Motion Picture and Television Productions) of this code; L. Garage sales, provided that no more than four sales, each occurring on one calendar day, are held on the same property within a calendar year and that the merchandise for sale, with the exception of neighbors combining items for sale at one property, is the personal property of the resident of the property where the sale is being conducted and is not acquired or consigned for the purpose of resale; M. Employee housing for 6 or fewer employees. M. N. Any other use which specifically is required to be permitted in a single family residential district by state or federal law; and N. O. Other uses as provided in any applicable overlay or special district. B-3 ALTERNATIVES In addition to Staff’s recommendation, the Planning Commission may recommend to the City Council the following: 1. Recommend that the City Council take no action on the proposed code amendment. ATTACHMENTS • P.C. Resolution No. 2019-__ o Exhibit “A” - Draft Ordinance • Housing Element Program No. 9 B-4 P.C. RESOLUTION NO. 2019-__ A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF RANCHO PALOS VERDES RECOMMENDING TO THE CITY COUNCIL THAT AN ORDINANCE BE ADOPTED AMENDING MUNICIPAL CODE SECTION 17.02.020 (USES AND DEVELOPMENT PERMITTED) TO ALLOW EMPLOYEE HOUSING CONSISTING OF 6 OR FEWER PERSONS AS A PERMITTED USE IN SINGLE-FAMILY RESIDENTIAL ZONING DISTRICT (CASE NO. PLCA2019-0005). WHEREAS, California Health and Safety Code §17021.5 (Employee Housing Act) requires cities to amend its zoning ordinance to permit employee housing for 6 or fewer employees as a single-family use; and, WHEREAS, the City’s Housing Element Program No. 9 requires a code amendment to remove governmental constraints related to the State Employee Housing Act (see attached). This program requires the City to amend its zoning ordinance to permit employee housing for 6 or fewer employees as a single-family use, pursuant to California Health and Safety Code §17021.5 (Employee Housing Act); and, WHEREAS, on June 18, 2019, the City Council authorized the initiation of a code amendment to allow employee housing as a permitted use in the Single-Family Residential Zoning District (Chapter 17.02.020 – Uses and development permitted) to align the Municipal Code with Housing Element Program No. 9; and, WHEREAS, on June 20, 2019, a notice was published in the Peninsula News, providing notice of a public hearing before the Planning Commission on July 9, 2019 pursuant to the requirements of the Rancho Palos Verdes Development Code; and, WHEREAS, on July 9, 2019, the Planning Commission held a duly-noticed public hearing, at which time all interested parties were given an opportunity to be heard and present evidence. NOW, THEREFORE, THE PLANNING COMMISSION OF THE CITY OF RANCHO PALOS VERDES DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: Section 1: The facts set forth in the recitals of this Resolution are true and correct and incorporated herein by reference as though set forth in full. Section 2: The Planning Commission has reviewed and considered the amendment to Chapter 17.02.020 (Uses and development permitted) to allow employee housing consisting of 6 or fewer persons as a permitted use in the Single-Family Residential Zoning District. B-5 Section 3: The amendments to Title 17 are consistent with the Rancho Palos Verdes General Plan and Coastal Specific Plan in that they uphold, and not hinder, the goals and policies of those plans. Section 4: The amendment to Section 17.02.020 (Uses and development permitted) of the Municipal Code is consistent with California Government Code Section 65853, zoning amendment procedures. Section 5: The Planning Commission recommends to the City Council that Section 17.02.020 (Uses and development permitted) of the Municipal Code be revised to read as follows (the bold/underlined text represents new language; the text in strikethrough is to be deleted): 17.02.020 - Uses and development permitted. Only the following uses and developments may be conducted or constructed: A. Single-family residential buildings, mobile homes on city approved foundations, as provided in California Government Code Sections 65852.3 and 65852.4 and associated accessory structures for the residential use and occupancy of not more than one family and not more than one dwelling unit per lot, with the exception of second units approved pursuant to Chapter 17.10 (Second Unit Development Standards); B. Home occupations pursuant to Chapter 17.08 (Home Occupations); C. Private outdoor recreational uses, such as tennis courts, swimming pools and basketball courts, which are incidental to the residential use of the property; D. Residential planned development (RPD), pursuant to Chapter 17.42 (Residential Planned Development); E. The keeping of animals that are household pets, as defined in Section 17.96.945 (Household Pets) and small domestic animals for noncommercial purposes. Animals that are not household pets may be permitted pursuant to approval of an exotic animal permit; F. The keeping of large domestic animals, pursuant to Chapter 17.46 (Equestrian Overlay (Q) District); G. The keeping of a maximum of five bee hives for noncommercial purposes, except for the RS-A-5 residential zoning district, where a maximum of ten bee hives may be kept upon approval by the director of a site plan review application, which shall be appealable to the planning B-6 commission pursuant to Chapter 17.80 (Hearing Notice and Appeal Procedures); H. The growing of crops and/or fruits on one acre or less for noncommercial purposes; I. Small family day care; J. Temporary special uses and developments, if a special use permit is first obtained, pursuant to Chapter 17.62 (Special Use Permits); K. Commercial filming or photography, if a city film permit is first obtained, pursuant to Chapter 9.16 (Still Photography, Motion Picture and Television Productions) of this code; L. Garage sales, provided that no more than four sales, each occurring on one calendar day, are held on the same property within a calendar year and that the merchandise for sale, with the exception of neighbors combining items for sale at one property, is the personal property of the resident of the property where the sale is being conducted and is not acquired or consigned for the purpose of resale; M. Employee housing for 6 or fewer employees. M. N. Any other use which specifically is required to be permitted in a single family residential district by state or federal law; and N. O. Other uses as provided in any applicable overlay or special district. Section 6: Pursuant to the provisions of the California Environmental Quality Act, Public Resources Code Sections 21000 et. seq. ("CEQA"), the State's CEQA Guidelines, California Code of Regulations, Title 14, Section 15000 et. seq., the City's Local CEQA Guidelines, and Government Code Section 65962.5(f) (Hazardous Waste and Substances Statement), the code amendment qualifies as a ministerial project and therefore exempt from the application of CEQA (Section 21080). Section 7: For the foregoing reasons and based on the information and findings included in the Staff Report, Minutes and other records of proceedings, the Planning Commission of the City of Rancho Palos Verdes hereby recommends to the City Council that an Ordinance be adopted, entitled, AN ORDINANCE AMENDING SECTION 17.02.020 (USES AND DEVELOPMENT PERMITTED) OF THE RANCHO PALOS VERDES MUNICIPAL CODE TO ALLOW EMPLOYEE HOUSING CONSISTING OF 6 OR FEWER PERSONS AS A PERMITTED USE IN THE SINGLE- FAMILY ZONING DISTRICT (Case No. PLCA2019-0005). B-7 PASSED, APPROVED AND ADOPTED this 9th day of July 2019, by the following vote: AYES: NOES: ABSTENTIONS: RECUSALS: ABSENT: David Bradley Chairman Ara Mihranian, AICP Director of Community Development Secretary to the Planning Commission B-8 ORDINANCE NO. __ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES AMENDING SECTION 17.02.020 (USES AND DEVELOPMENT PERMITTED) TO ALLOW EMPLOYEE HOUSING CONSISTING OF 6 OR FEWER PERSONS AS A PERMITTED USE IN SINGLE-FAMILY RESIDENTIAL ZONING DISTRICT (CASE NO. PLCA2019-0005). WHEREAS, California Health and Safety Code §17021.5 (Employee Housing Act) requires cities to amend its zoning ordinance to permit employee housing for 6 or fewer employees as a single-family use; and, WHEREAS, the City’s Housing Element Program No. 9 requires a code amendment to remove governmental constraints related to the State Employee Housing Act (see attached). This program requires the City to amend its zoning ordinance to permit employee housing for 6 or fewer employees as a single-family use, pursuant to California Health and Safety Code §17021.5 (Employee Housing Act); and, WHEREAS, on June 18, 2019, the City Council authorized the initiation of a code amendment to allow employee housing consisting of 6 or fewer persons as a permitted use in the Single-Family Residential Zoning District (Chapter 17.02.020 – Uses and development permitted) to align the Municipal Code with California Health and Safety Code §17021.5 (Employee Housing Act); and, WHEREAS, on June 20, 2019, a notice was published in the Peninsula News, providing notice of a public hearing before the Planning Commission on July 9, 2019 pursuant to the requirements of the Rancho Palos Verdes Development Code; and, WHEREAS, on July 9, 2019, the Planning Commission conducted a duly noticed public hearing on this Ordinance and adopted P.C. Resolution No. 2019-__, recommending that the City Council adopt the same; and, WHEREAS, on July 18, 2019, a Public Notice was published in the Peninsula News, providing notice of a public hearing before the City Council on August 6, 2019; and WHEREAS, on August 6, 2019, the City Council conducted a duly noticed public hearing on this Ordinance, and all testimony received was made a part of the public record; and, WHEREAS, the City Council has duly considered all information presented to it, including the Planning Commission findings, P.C. Resolution No. 2019-__, written staff reports, and any testimony provided at the public hearing. B-9 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, DOES ORDAIN AS FOLLOWS: Section 1: The above recitals are true and correct and incorporated herein by this reference. It is the intent and purpose of this Ordinance that employee housing consisting of 6 or fewer persons is a permitted use in Single-Family Residential Zoning Districts throughout the City of Rancho Palos Verdes. Section 2: Section 17.02.020 (Uses and development permitted) of the Rancho Palos Verdes Municipal Code is hereby amended to read as follows (the bold/underlined text represents new language; the text in strikethrough is to be deleted): 17.02.020 - Uses and development permitted. Only the following uses and developments may be conducted or constructed: A. Single-family residential buildings, mobile homes on city approved foundations, as provided in California Government Code Sections 65852.3 and 65852.4 and associated accessory structures for the residential use and occupancy of not more than one family and not more than one dwelling unit per lot, with the exception of second units approved pursuant to Chapter 17.10 (Second Unit Development Standards); B. Home occupations pursuant to Chapter 17.08 (Home Occupations); C. Private outdoor recreational uses, such as tennis courts, swimming pools and basketball courts, which are incidental to the residential use of the property; D. Residential planned development (RPD), pursuant to Chapter 17.42 (Residential Planned Development); E. The keeping of animals that are household pets, as defined in Section 17.96.945 (Household Pets) and small domestic animals for noncommercial purposes. Animals that are not household pets may be permitted pursuant to approval of an exotic animal permit; F. The keeping of large domestic animals, pursuant to Chapter 17.46 (Equestrian Overlay (Q) District); G. The keeping of a maximum of five bee hives for noncommercial purposes, except for the RS-A-5 residential zoning district, where a maximum of ten bee hives may be kept upon approval by the director of a site plan review application, which shall be appealable to the planning B-10 commission pursuant to Chapter 17.80 (Hearing Notice and Appeal Procedures); H. The growing of crops and/or fruits on one acre or less for noncommercial purposes; I. Small family day care; J. Temporary special uses and developments, if a special use permit is first obtained, pursuant to Chapter 17.62 (Special Use Permits); K. Commercial filming or photography, if a city film permit is first obtained, pursuant to Chapter 9.16 (Still Photography, Motion Picture and Television Productions) of this code; L. Garage sales, provided that no more than four sales, each occurring on one calendar day, are held on the same property within a calendar year and that the merchandise for sale, with the exception of neighbors combining items for sale at one property, is the personal property of the resident of the property where the sale is being conducted and is not acquired or consigned for the purpose of resale; M. Employee housing for 6 or fewer employees. M. N. Any other use which specifically is required to be permitted in a single family residential district by state or federal law; and N. O. Other uses as provided in any applicable overlay or special district. Section 3: CEQA Exemption. 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, because it allows employee housing consisting of 6 or fewer persons as a permitted use in Single-Family Zoning Districts, which is already implicitly allowed by the City. Section 4: Severability. 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. B-11 Section 5: Certification and Posting. The City Clerk shall cause this Ordinance to be posted in three (3) public places in the City within fifteen (15) days after its passage, in accordance with the provisions of Section 36933 of the Government Code. The City Clerk shall further certify to the adoption and posting of this Ordinance, and shall cause this Ordinance and its certification, together with proof of posting, to be entered in the Book of Ordinances of the Council of this City. Section 6: Effective Date. This Ordinance shall go into effect on the 31st day after its passage. PASSED, APPROVED AND ADOPTED this 6th day of August, 2019. Jerry V. Duhovic, Mayor Attest: Emily Colborn, City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES )ss CITY OF RANCHO PALOS VERDES ) I, EMILY COLBORN, City Clerk of the City of Rancho Palos Verdes, do hereby certify that the whole number of members of the City Council of said City is five; that the foregoing Ordinance No. _ passed first reading on August 6, 2019, was duly and regularly adopted by the City Council of said City at a regular meeting thereof held on - ______________, and that the same was passed and adopted by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: ______________________ Emily Colborn, City Clerk B-12 More specifically, Government Code Section 65583(c)(3) states that a housing program must: Address and, where appropriate and legally possible, remove governmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, or provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. 1.Housing Needs, Goals, Policies and Objectives The governmental constraints analysis found a need to address farm employee housing. Goals Attain barrier and constraint free City codes, ordinances, and policies. Provide codes, ordinances, and policies that lead to the improvement of the housing status of residents. Policies Remove existing governmental constraints to the maintenance, preservation, improvement and development of housing. Affirmatively further housing goals through City codes, ordinances and policies that enhance the housing quality of life experienced by residents. Continue to implement land use regulations that facilitate meeting affordable housing needs. Continue the processing of new housing developments designed to address the needs of all income groups. Objectives The housing program efforts do not involve the production or rehabilitation of housing. Therefore, quantified objectives cannot be set for this Program Category. 2.Housing Programs Program #9 - Zoning Ordinance Amendments to Remove Governmental Constraints – Employee Housing Act According to the 2010 Census, none of the employed population in Rancho Palos Verdes works in the industries of farming, fishing or forestry, and there is no agriculturally zoned land in the PROGRAM CATEGORY #3: ADDRESS AND, WHERE APPROPRIATE AND LEGALLY POSSIBLE, REMOVE GOVERNMENTAL CONSTRAINTS TO THE MAINTENANCE, IMPROVEMENT AND DEVELOPMENT OF HOUSING B-13 City. Therefore, given the apparent absence of farmworkers in the community, the City has not identified a need for specialized farmworker housing beyond overall programs for housing affordability. California Health and Safety Code Section 17021.5 (Employee Housing Act) requires jurisdictions to permit employee housing for six or fewer employees as a single-family use. Employee housing shall not be included within the zoning definition of a boarding house, rooming house, hotel, dormitory, or other similar term that implies t hat the employee housing is a business run for profit or differs in any other way from a family dwelling. Jurisdictions cannot impose a conditional use permit, zoning variance, or other zoning clearance of employee housing that serves six or fewer employees that are not required of a family dwelling of the same type in the same zone. The City will amend the Zoning Ordinance to provide consistency with the Employee Housing Act. Employee housing is privately owned housing that is provided by an employer in connection with any work, whether or not rent is involved. [See Health and Safety Code § 17008(a)] The zoning provisions will be enacted by June-July 2014. Government Code Section 65583(c)(4) states that a housing program shall describe actions to: Conserve and improve the condition of the existing affordable housing stock, which may include addressing ways to mitigate the loss of dwelling units demolished by public and private actions. 1.Housing Needs, Goals, Policies and Objectives Housing in need of rehabilitation is estimated to range from 300 to 500 housing units. Goals Achieve a housing stock free of substandard structures. Conserve and improve the existing stock of affordable housing. Policies Continue to implement the Housing Code Enforcement Program. Implement a Home Improvement Program when funds become available. Objectives Housing code enforcement at an average level of 10 new cases per month for all income levels during the 2013-2021 planning period. Rehabilitation of five owner-occupied housing units. PROGRAM CATEGORY #4: CONSERVE AND IMPROVE THE CONDITION OF THE EXISTING STOCK OF AFFORDABLE HOUSING B-14 RANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 06/18/2019 AGENDA REPORT AGENDA HEADING: Regular Business AGENDA DESCRIPTION: Consideration and possible action to initiate a code amendment for employee housing pursuant to California Health and Safety Code §17021.5 (Employee Housing Act) as identified in the City’s 2013-2021 Housing Element (Case No. PLCA2019-0005) RECOMMENDED COUNCIL ACTION: (1) Initiate a code amendment to Section 17.02.020 of the City’s Municipal Code to implement Program No. 9, as identified in the City's 2013-2021 Housing Element, to explicitly state that employee housing is allowed in the City’s Single -Family Residential zoning districts as a permitted use pursuant to California Health and Safety Code §17021.5 (Employee Housing Act) FISCAL IMPACT: None Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: So Kim, Deputy Director/Planning Manager REVIEWED BY: Ara Mihranian, Director of Community Development APPROVED BY: Doug Willmore, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Excerpt from the 2013-2021 Housing Element for Program No. 9 (page A-1) BACKGROUND AND DISCUSSION: The State of California requires every city and county to prepare and adopt a Housing Element as part of their respective General Plans. The State also requires that each local government periodically review and revise its General Plan Housing Element. This is the only General Plan element that a local jurisdiction must periodically update. In compliance with state law, the City adopted its 2013-2021 Housing Element in February 2014, and it was certified by the California Department of Housing and Community Development in April 2014. According to state law, the Housing Element is required to develop program s to accommodate the City's share of the regional housing need. Such programs must: C-1  Identify actions to make sites available to accommodate the City’s share of the regional housing need [Government Code §65583(c)(1)];  Assist in the development of adequate housing to meet the needs of extremely low-, very low-, low- and moderate-income households [Government Code §65583(c)(2)];  Address and, where appropriate and legally possible, remove governmental constraints to the maintenance, improvement and development of housing [Government Code §65583(c)(3)];  Conserve and improve the condition of the existing stock of affordable housing [Government Code §65583(c)(4)];  Promote housing opportunities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, familial status, or disability [Government Code §65583(c)(5)]; and  Promote energy conservation [Government Code §65583(a)(8)]. The City implements these programs through various subprograms identified in the Housing Element. Specifically, Program No. 9 requires a code amendment to remove governmental constraints related to the State Employee Housing Act (see Attachment A). This program requires the City to amend its zoning ordinance to permit employee housing for six or fewer employees as a single-family use, pursuant to California Health and Safety Code §17021.5 (Employee Housing Act). Employee housing is defined as privately-owned housing that is provided by an employer in connection with any work, whether or not rent is involved (Health and Safety Code §17008(a)). The City's 2013-2021 Housing Element identifies certain actions the City will take during the "planning period." Pursuant to Health and Safety Code §17021.5, employee housing shall not be included within the zoning definition of a boarding house, rooming house, hotel, dormitory, or other similar term that implies that the employee housing is a business run for profit or differs in any other way from a family dwelling. Additionally, the City cannot impose a conditional use permit, zoning variance, or other zoning clearance upon employee housing that serves six or fewer employees that would not be required of a family dwelling of the same type in the same single-family zoning district. Currently, under the existing Single-Family Residential zoning district (Development Code §17.02), any use which is specifically required to be permitted in a single -family residential district by state or federal law is permitted. As a result, employee housing is already implicitly allowed. The proposed code amendment would explicitly list employee housing as a permitted use. Pursuant to Municipal Code §17.68.030.8, "an amendment to any part of [the City's Development Code]...may be initiated by the Direct or and/or Planning Commission, upon petition to the City Council. The City Council shall review the petition to determine if the requested amendment and/or change is necessary or desirable." As employee housing is already inherently allowed and the code amendment is a required Housing Element program, Staff is requesting that the City Council reconsider and initiate this code amendment. C-2 Upon directing Staff to pursue said code amendment, Staff will present a draft ordinance to the Planning Commission for review and consideration at a duly-noticed public hearing. The Planning Commission will forward a formal recommendation to the City Council for consideration at a noticed public hearing. Thus, the City Council will have the opportunity to review the specific language of the ordinance at a future hearing. CONCLUSION: Based upon the foregoing discussion, Staff recommends that the City Council initiate a code amendment relative to employee housing pursuant to California Health and Safety Code §17021.5 (Employee Housing Act) as required by the City’s 2013-2021 General Plan Housing Element. ALTERNATIVES: In addition to Staff’s recommendation, the following alternatives are available for the City Council’s consideration: 1. Receive and file this report, and direct Staff to take no action at this time; however, this would not be consistent with the City's certified Housing Element or State law. 2. Provide other direction to Staff or take other action, as deemed appropriate. C-3 More specifically, Government Code Section 65583(c)(3) states that a housing program must: Address and, where appropriate and legally possible, remove governmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, or provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. 1. Housing Needs, Goals, Policies and Objectives The governmental constraints analysis found a need to address farm employee housing. Goals  Attain barrier and constraint free City codes, ordinances, and policies.  Provide codes, ordinances, and policies that lead to the improvement of the housing status of residents. Policies  Remove existing governmental constraints to the maintenance, preservation, improvement and development of housing.  Affirmatively further housing goals through City codes, ordinances and policies that enhance the housing quality of life experienced by residents.  Continue to implement land use regulations that facilitate meeting affordable housing needs.  Continue the processing of new housing developments designed to address the needs of all income groups. Objectives The housing program efforts do not involve the production or rehabilitation of housing. Therefore, quantified objectives cannot be set for this Program Category. 2. Housing Programs Program #9 - Zoning Ordinance Amendments to Remove Governmental Constraints – Employee Housing Act According to the 2010 Census, none of the employed population in Rancho Palos Verdes works in the industries of farming, fishing or forestry, and there is no agriculturally zoned land in the PROGRAM CATEGORY #3: ADDRESS AND, WHERE APPROPRIATE AND LEGALLY POSSIBLE, REMOVE GOVERNMENTAL CONSTRAINTS TO THE MAINTENANCE, IMPROVEMENT AND DEVELOPMENT OF HOUSING C-4 City. Therefore, given the apparent absence of farmworkers in the community, the City has not identified a need for specialized farmworker housing beyond overall programs for housing affordability. California Health and Safety Code Section 17021.5 (Employee Housing Act) requires jurisdictions to permit employee housing for six or fewer employees as a single-family use. Employee housing shall not be included within the zoning definition of a boarding house, rooming house, hotel, dormitory, or other similar term that implies t hat the employee housing is a business run for profit or differs in any other way from a family dwelling. Jurisdictions cannot impose a conditional use permit, zoning variance, or other zoning clearance of employee housing that serves six or fewer employees that are not required of a family dwelling of the same type in the same zone. The City will amend the Zoning Ordinance to provide consistency with the Employee Housing Act. Employee housing is privately owned housing that is provided by an employer in connection with any work, whether or not rent is involved. [See Health and Safety Code § 17008(a)] The zoning provisions will be enacted by June-July 2014. Government Code Section 65583(c)(4) states that a housing program shall describe actions to: Conserve and improve the condition of the existing affordable housing stock, which may include addressing ways to mitigate the loss of dwelling units demolished by public and private actions. 1. Housing Needs, Goals, Policies and Objectives Housing in need of rehabilitation is estimated to range from 300 to 500 housing units. Goals  Achieve a housing stock free of substandard structures.  Conserve and improve the existing stock of affordable housing. Policies  Continue to implement the Housing Code Enforcement Program.  Implement a Home Improvement Program when funds become available. Objectives  Housing code enforcement at an average level of 10 new cases per month for all income levels during the 2013-2021 planning period.  Rehabilitation of five owner-occupied housing units. PROGRAM CATEGORY #4: CONSERVE AND IMPROVE THE CONDITION OF THE EXISTING STOCK OF AFFORDABLE HOUSING C-5