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CC SR 20220816 01 - SB 9 Code Amendment PUBLIC HEARING Date: August 16, 2022 Subject: Consideration and possible action to amend Chapter 16.40 (Urban Lot Splits), Chapter 17.09 (Second Units and Two-Unit Developments in Single-Family Zones) and Chapter 17.96 (Definitions) of the Rancho Palos Verdes Municipal Code regarding urban lot splits and second units and two -unit developments in single-family residential zones (Case No. PLCA2022-0001). Recommendation: Introduce for first reading Ordinance No.__, AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES AMENDING CHAPTER 16.40 (URBAN LOT SPLITS), CHAPTER 17.09 (SECOND UNITS AND TWO-UNIT DEVELOPMENTS IN SINGLE-FAMILY ZONES) AND CHAPTER 17.96 (DEFINITIONS) OF THE RANCHO PALOS VERDES MUNICIPAL CODE, THEREBY ESTABLISHING REGULATIONS AND DEFINITIONS FOR URBAN LOT SPLITS AND FOR SECOND UNITS AND TWO-UNIT DEVELOPMENTS IN SINGLE-FAMILY RESIDENTIAL ZONES. 1. Report of Notice Given: City Clerk 2. Declare Public Hearing Open: Mayor Bradley 3. Request for Staff Report: Mayor Bradley 4. Staff Report & Recommendation: Jaehee Yoon, Senior Planner 5. Council Questions of Staff (factual and without bias): 6. 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 speakers who intend to speak. 7. Declare Hearing Closed/or Continue the Public Hearing to a later date: Mayor Bradley 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. CITY COUNCIL MEETING DATE: 08/16/2022 AGENDA REPORT AGENDA HEADING: Public Hearing AGENDA TITLE: Consideration and possible action to amend Chapter 16.40 (Urban Lot Splits), Chapter 17.09 (Second Units and Two-Unit Developments in Single-Family Zones) and Chapter 17.96 (Definitions) of the Rancho Palos Verdes Municipal Code regarding urban lot splits and second units and two-unit developments in single-family residential zones (Case No. PLCA2022-0001). RECOMMENDED COUNCIL ACTION: (1) Introduce for first reading Ordinance No.__, AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES AMENDING CHAPTER 16.40 (URBAN LOT SPLITS), CHAPTER 17.09 (SECOND UNITS AND TWO-UNIT DEVELOPMENTS IN SINGLE-FAMILY ZONES) AND CHAPTER 17.96 (DEFINITIONS) OF THE RANCHO PALOS VERDES MUNICIPAL CODE, THEREBY ESTABLISHING REGULATIONS AND DEFINITIONS FOR URBAN LOT SPLITS AND FOR SECOND UNITS AND TWO-UNIT DEVELOPMENTS IN SINGLE-FAMILY RESIDENTIAL ZONES. FISCAL IMPACT: None Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Jaehee Yoon, Senior Planner REVIEWED BY: Ken Rukavina, P.E., Director of Community Development APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Draft Ordinance No. ___ (redlined version) (page A-1) B. Planning Commission Resolution No. 2022-08 (page B-1) C. Urgency Ordinance No. 656U (page C-1) D. Public Comment (page D-1) To view the April 12, 2022, May 10, 2022, June 28, 2022, and July 12, 2022, Planning Commission staff reports, click on the following links: 1 April 12: https://rpv.granicus.com/MetaViewer.php?view_id=5&clip_id=4141&meta_id=103008 May 10: https://rpv.granicus.com/MetaViewer.php?view_id=5&clip_id=4159&meta_id=103815 June 28: https://rpv.granicus.com/MetaViewer.php?view_id=5&event_id=2045&meta_id=104884 July 12: https://rpv.granicus.com/MetaViewer.php?view_id=5&clip_id=4193&meta_id=105087 BACKGROUND: On September 16, 2021, Governor Newsom signed into law Senate Bill No. 9 (SB 9) to facilitate housing development by increasing existing density limits in single -family residential zones. Specifically, SB 9 requires ministerial approval of lot splits and/or development of two dwelling units per lot in single-family residential zones when the proposed development is in compliance with established objective standards. On December 21, 2021, the City Council adopted Urgency Ordinance No. 656U (Attachment C) to codify regulations in Title 16 (Subdivisions) and Title 17 (Zoning) of the Rancho Palos Verdes Municipal Code (RPVMC) to establish subdivision regulations and development standards for potential lot splits and developments implemented under SB 9, prior to SB 9 taking effect statewide on January 1 , 2022. At the meeting, the City Council also initiated regular code amendment proceedings to amend Titles 16 (Subdivisions) and 17 (Zoning). A copy of the City Council staff report is available on the City website. As amendments were proposed to Title 17 (Zoning) of the RPVMC, the process required that the Planning Commission review the proposed draft ordinance and forward a recommendation to the City Council for its consideration. It should be noted that in accordance with Chapter 17.68 (Zone Changes and Code Amendments), the Planning Commission’s consideration and recommendations to the City Council on the proposed amendments only involved Title 17 (Zoning). However, proposed amendments to Chapter 16.40 (Urban Lot Splits) of Title 16 (Subdivisions) of the RPVMC were provided to the Planning Commission to provide a full picture of the changes required by SB 9. On April 12, 2022, the Planning Commission held a duly noticed public hearing, at which time the draft ordinance was first reviewed and discussed among the Planning Commission and Staff. The item was continued to April 26, 2022, May 10, 2022, and June 28, 2022, to allow Staff additional time to incorporate the input received. On July 12, 2022, the Planning Commission adopted P.C. Resolution No. 2022-08 (Attachment B), recommending the City Council adopt an ordinance amending Section 2 17.02.020 (Single Family Residential (RS)) Districts – Uses and Development Permitted), adding Chapter 17.09 (Second Units and Two-Unit Developments in Single-Family Zones), and amending Chapter 17.96 (Definitions), thereby establishing definitions and regulations for second units and two-unit developments in single-family residential zones. DISCUSSION: The draft ordinance (Attachment A) includes Chapter 16.40 (Urban Lot Splits), Chapter 17.09 (Second Units and Two-Unit Developments in Single-Family Zones), and Chapter 17.96 (Definitions), which establish clarified and enhanced procedures and standards for urban lot splits and the creation of second units and two-unit developments in single-family residential zones as required by SB 9. Chapter 16.40 (Urban Lot Splits) As previously mentioned, the proposed amendments to Chapter 16.40 have not been recommended by the Planning Commission as its purview is limited to Title 17. Nonetheless, the draft ordinance was amended with consideration to the amendments recommended by the Planning Commission in Title 17, and is generally consistent with the provisions adopted by Urgency Ordinance No. 656U. The following is a list of amendment topics in italics, followed by a discussion of each recommended amendment: 1. Specify applicants who are allowed to apply for an urban lot split (Section 16.40.020) The proposed amendment clarifies that urban lot splits are limited to “individual property owners” and specifically defines this term. This has also resulted in minor revisions to Section 16.40.040 (Additional requirements) where reference to “applicant” has been either deleted or revised to “owner.” 2. Supplement parcel and other requirements for an urban lot split (Section 16.40.030 and Section 16.40.040) A provision is introduced that prohibits urban lot splits in the landslide moratorium area to be consistent with Section 15.20.020 (New construction permits not issued) of the RPVMC that explicitly prohibits the creation of parcel maps. In addition, a new provision specifies that only residential uses shall be located on the parcel with at least one residential unit existing at the time the urban lot split is approved. Lastly, the creation of new driveways will be limited as it will require review and approval by the Public Works Department to prevent unnecessary and/or unsafe curb cuts. 3. Include additional limitations on parcels created through an urban lot split (Section 16.40.050) The proposed amendment specifies that parcels created through an urban lot split are limited to residential uses only and that no further subdivision will be allowed. 3 4. Eliminate subsequent coastal permit processing for applicable projects (Section 16.40.070) The proposed amendment removes imposing a condition of approval to comply with Coastal Permit requirements for projects within the City’s Coastal Zone as this is already required by the Coastal Permit and is redundant. As a result, projects requiring coastal permits will be processed simultaneously with the urban lot split application rather than in a two-step process. 5. Include deed restrictions on owner of the original parcel (Section 16.40.080) A new provision is proposed that requires the owner of the original parcel to execute a deed restriction that limits the use of the resulting parcels in accordance with the regulations in Chapter 16.40, as a condition of approval. Chapter 17.09 (Second Units and Two-Unit Developments in Single-Family Zones) and Chapter 17.96 (Definitions) The Planning Commission-recommended amendments to Title 17 (Zoning) include topics related to the landslide area, development standards, design standards, conveyance of units, building permit issuance, total number of units, Coastal Permits, affordable units, and definitions. Each subject is summarized below in italics, followed by a discussion of each recommended amendment. 1. Prohibit second unit and two-unit developments in the landslide moratorium area (Section 17.40.030) The draft ordinance proposes to include a provision that mostly prohibits second unit or two-unit developments in the City’s landslide moratorium area for consistency with Chapter 15.20 (Moratorium on Land Use Permits). Specifically, a second unit or two - unit development will only be allowed on a lot with an applicable Landslid e Moratorium Exception Category in Section 15.20.040 (Exceptions), which will require obtaining a Landslide Moratorium Exception permit prior to review and approval of the second unit or two-unit development application. 2. Revise development standards to clarify or include provisions related to the configuration, size, parking, decks, grading, extreme slope, entrances, driveways, and enforcement of regulations (Section 17.09.040) The development standard revisions are summarized in Table No. 1 below: Table No. 1 – Summary of Section 17.09.040 (Development standards) revisions Configuration Clarified allowable configurations of second unit and two-unit developments in relation to other dwelling units 4 Size Clarified that units are allowed up to 800 ft2, except lots at least 20,000 ft2 or larger are allowed to have units up to 1,000 ft2 Parking Clarified parking requirements are in addition to existing spaces on the parcel that can be enclosed or open; included requirement for replacement parking per text following this table Decks Included a provision to prohibit above-grade decks over 6 inches in height, and roof decks and balconies. Grading & Extreme slope Included grading regulations that allows up to 200 yd3 for sloping lots and construction on extreme slope, both of which will require geotechnical review and approval. A Variance remains a requirement for construction on an extreme slope Driveways Included provision to limit creation of additional driveways regardless of number of units Enforcement Clarified limitation on enforcement of development and design standards in relation to the 800 ft2 size limit It has come to the City’s attention that the code does not have a provision related to replacement parking for conversion or demolition of existing garages carports, or covered parking structures into a second unit or part of a two-unit development. As such, a new subsection 17.09.040(P)(3) is being introduced for the City Council’s consideration. It should be noted that the Planning Commission did not have the opportunity to review the newly proposed subsection below (new text in bold underline) as it was drafted subsequent to the recent Planning Commission’s review of the proposed code amendment. 17.09.040 Development standards. E. Parking. 3. If the construction of a second unit or two-unit development requires the conversion or demolition of a garage, carport, or covered parking structure required under subsection 17.02.030(E), then such covered parking spaces shall be replaced. The replacement parking may be located in any configuration on the same lot, including, but not limited to, as covered spaces, uncovered spaces, or tandem spaces, or by the use of mechanical automobile parking lifts, without adversely impacting traffic flow and public safety. The replacement parking shall comply with the minimum number of spaces and dimensions stated in subsection 17.02.030(E). 3. Revise the design standards to match those currently required in the City’s Accessory Dwelling Unit (ADU) ordinance (Section 17.09.040 and 17.09.050) Several provisions from the City’s ADU ordinance pertaining to objective architectural standards are being incorporated into Section 17.09.0 40 (Development Standards) 5 and Section 17.09.050 (Design Standards), including but not limited to, design compatibility, preferable locations, privacy mitigation measures, and a minimum separation distance for detached units. 4. Clarify limitations on conveyance of units (Section 17.09.060) The proposed amendment clarifies that second units or two-unit developments may not be converted to condominiums and cannot be sold separately from the primary dwelling unit or from one another. 5. Specify the timing of building permit issuance for second units (Section 17.09.070) A new section is proposed to be added to prevent development of a standalone second unit on a vacant lot and to comply with the intended definition of second units, which is also being revised in Chapter 17.96 (Definitions) to clarify the circumstances of when a second unit can be developed. Specifically, an existing primary dwelling unit on the same lot is required prior to building permit issuance for second units. 6. Clarify the total number of units allowed by SB 9 (Section 17.09.080) A new section is also being proposed to clarify the total number of units allowed for urban lot splits and two-unit developments. In general, lots that were not created through an urban lot split can have up to four units on the same lot (Figure 1), while the maximum number of units allowed for each lot created through an urban lot split is limited to two (Figure 2). The possible unit configurations1 for either case can be a mix of ADUs, junior ADUs (JADUs), second units, two-unit developments, or single- family residences, depending on various scenarios as illustrated in the figures below: [ Figure 1. Lots NOT created through an urban lot split ] 1 These figures are only intended to show a number of possible configurations and do not guarantee that a particular configuration will be permitted or approved in any specific case. 6 [ Figure 2. Lots created through an urban lot split ] 7. Eliminate subsequent coastal permit processing for applicable projects (Section 17.09.090) The proposed amendment will replicate Chapter 16.40 regarding coastal permit requirements by allowing simultaneous processing of coastal permits with the second unit or two-unit development application rather than in a two-step process. 8. Revise definitions of second unit and two-unit developments (Chapter 17.96) The definitions of a second unit and two-unit developments are proposed to be simplified. In addition, it will clarify that a two-unit development is the simultaneous development of two dwelling units, and that the units are those other than an ADU or JADU. 9. Remove affordability restrictions on second unit and two-unit developments (Currently, Section 17.09.070 - Affordable rent requirement) The proposed amendment removes this section for various reasons. First, the existing provision as written does not comply with the inclusionary housing ordinance under Government Code Section 65850(g) as there is no specific percentage of affordable units to be developed and provides no alternative means of compliance, such as an in-lieu fee. Further, if this section is revised to comply with the inclusionary housing ordinance, the requirement would create economically infeasible conditions for such small-scale developments that may not be financially viable for applicants and, rather, discourage development. It should be noted that Temple City has recently received a letter from the State’s Housing and Community Development Department (HCD), which addressed several 7 concerns2 on its SB 9 ordinance as it likely violates housing laws. One of the concerns raised by HCD was related to a 30-year affordable housing deed restriction that was seen as potentially rendering the development of SB 9 units economically infeasible, and, as such may constitute a governmental constraint to housing development. As a result, Temple City is being asked to demonstrate that local development costs and anticipated affordable rents will result in projects that are economically feasible as part of the ongoing Housing Element update process. On a related note, the affordability requirement will also contradict the City’s draft 6th Cycle Housing Element programs related to increasing housing development potential through incentivizing housing production and removing governmental constraints that hinder such development. Lastly, the option to collect in-lieu fees as an alternative to comply with the affordability restriction will be contrary to the City’s desire and City Council policy when it comes to providing for affordable housing units. In general, the City has preferred the developer to provide affordable housing units rather than pay the in -lieu fees as payment of in-lieu fees shifts the burden of affordable housing production to the City. For these reasons, this section has been removed from the draft ordinance. In summary, the proposed draft ordinance is intended to clarify or introduce new regulations that will further refine the provisions adopted by Urgency Ordinance 656U. ADDITIONAL INFORMATION: Additional Amendments for Council Consideration On June 28, 2022, the Planning Commission voted 3-2 to recommend the attached draft ordinance to City Council as recommended by Staff, with Chair Perestam and Commissioner Chura voting no. Three items that were split among the Commissioners related to the following: • Including a courtesy public notice upon project approval; • Requiring a Conditional Use Permit (CUP) for properties without two distinct means of access; and, • Removing the affordable rental unit requirement from the proposed amendment. A summary is provided below in italics followed by a discussion. 1. Public notification requirement The intent of a new provision that requires notifying property owners upon project approval was to inform and educate the public on second unit and two-unit developments 2 Another potential implication to the City of Rancho Palos Verdes from HCD’s letter to Temple City is that the proposed 800 ft2 unit size and 16 ft height restrictions may be deemed to reduce development capacity and land use intensity for two-unit developments. Specifically, HCD raises concerns about reductions to development capacity in the letter to Temple City; however, it is unclear exactly how HCD’s comments would apply to RPV’s proposed requirements. If HCD raises similar concerns, Staff can re-evaluate those restrictions at that time. 8 pursuant to SB 9. However, because of the potential unintended consequences associated with public notifications to neighboring properties, Staff did not recommend including it in the draft ordinance. Specifically, the table below outlines the pros and cons of including such code language where the negative aspects appeared to outweigh the intended benefits: Table No. 2 – Pros and cons of second unit and two-unit development public notifications Pros Cons • Provides information and serves as an educational opportunity to the public • Raises neighborhood awareness of approved SB 9 projects; however, there are other alternative means to increase public awareness of state housing laws • May create frustration among those notified as notices are generally issued to allow the receiver to comment, support, object, or appeal a project. However, SB 9 projects are ministerial applications that cannot be appealed or otherwise commented on. • Sets a precedent in requiring notices for all other ministerial applications that may impact neighboring properties • Requires additional time and cost to process the application As an alternative to requiring public notifications, Staff proposed creating an informational handout on second units and two-unit developments that will be posted on the City’s website and social media to inform and educate the public. In addition, Staff would work with potential applicants to encourage communication with adjacen t property owners about the scope and design of a proposed project. After the Planning Commission meeting, several residents requested such a provision be included. Should the City Council vote to reintroduce this provision , Staff proposes the following language for the City Council’s consideration (new text in bold underline): Courtesy Public Notice Upon application submittal of a second unit or two-unit development, the Director shall provide a courtesy notice to owners of all parcels adjacent to the project site, using the last known county assessor tax roll. Such notice shall not be a requirement of the applicant for the purposes of deeming an application complete for processing. 2. CUP requirements for second unit and two-unit developments on properties without two distinct means of access Currently, the City’s ADU ordinance requires a CUP for ADU developments in cases where a project site is located within a Very High Fire Hazard Severity Zone and does not have two distinct means of access to an arterial or collector street. This requirement was established to address fire safety impacts that exist for most of the City by ensuring there 9 is no proliferation of ADUs that would cause issues with egress from a neighborhood during an emergency and where there are limited evacuation routes. In reviewing such proposals, ADU projects are assessed based on CUP findings established in Section 17.60.050 of the RPVMC. However, it has been difficult to apply the same CUP findings given the unique consideration of ADUs, which should be reviewed with a focus on potential fire safety impacts. In addition, the CUP requirement and associated discretionary review for second unit or two-unit developments in the same manner as ADUs will contradict the main purpose and intent of SB 9, which emphasizes processing ministerial applications with objective standards. Moreover, several housing programs under consideration for a state-compliant 6th Cycle Housing Element update include removing barriers for housing development and allowing for higher density housing. Lastly, HCD has objected to the City’s ADU CUP requirement and this is a matter that should be vetted and addressed prior to expanding the provision to other sections of the Municipal Code. Therefore, Staff did not recommend including this provision as it will likely require code amendments to either remove or revise the CUP requirement. When there is clearer direction from HCD and the City Council regarding the ADU CUP requirement that allows continued enforcement, Staff believes a new set of objective ADU CUP findings specific to fire safety will need to be developed such as, but not limited to, the following suggestions: • Additional parking requirements beyond those required by this section • Additional side, rear, or front setback requirements beyond those required by this section • Additional fire safety features included in the project, such as sprinklers, fire retardant construction materials, and so forth, along with fire department approval of the proposed project 3. Affordable Rental Unit Requirement As previously noted, the ordinance before the City Council removes the affordable rental unit requirement. However, if provisions related to affordable rental units is desired to be retained by City Council, Staff recommends including additional language t o supplement this section. Specifically, the provision should require that one of the primary units be affordable, if rented, and also include an alternative means of compliance with the inclusionary housing ordinance through an in-lieu fee instead of providing an affordable housing unit, as suggested in the alternative language below (new text in bold underline, deletions in strikethrough): Section 17.09.070 - Affordable rent requirement A. Whenever a development in a single-family residential zoning district either adds two primary units to a lot, or adds a second primary unit to a lot, one of the two primary units (i.e., 50% of the primary units), Second units, and both units of a two-unit development, if rented, shall only be rented at an affordable rent 10 for lower-income households, as defined in Health and Safety Code Section 50053, and shall only be rented to lower-income households, as defined in Health and Safety Code Section 50079.5, for a minimum of 55 years. As a condition of approval of, and Pprior to the issuance of a certificate of occupancy for any second unit or any unit of a two-unit development, the owner of the property shall execute and record on the property a deed restriction, in a form approved by the director and the city attorney, establishing legal restrictions consistent with this section. In lieu of recording a deed restriction on the property, the owner may pay an in-lieu fee to the City in an amount determined by City Council resolution, as a condition of approval of, and prior to the issuance of a certificate of occupancy for any second unit or any unit of a two-unit development. The fee owed to the City shall be the amount of the fee at the time the application for the second unit or two-unit development is approved. In-lieu fees shall be used by the City solely to increase and improve the supply of housing affordable to households of extremely low-, very low-, low-, and moderate- income. Public Notice On August 1 and 4, 2022, a public notice was published in the Daily Breeze and the Palos Verdes Peninsula News, respectively, announcing that the City Council would consider the draft ordinance at its August 16, 2022, meeting. One public comment was received from the Rancho Palos Verdes Council of Homeowners Association that requested additional review and consideration of the following provisions to be included in the proposed amendment: a) The public notification requirement upon approval of a SB 9 unit; and, b) Provisions related to addressing the potential impacts of increased parking and traffic within the Very High Fire Severity Zones. Both subjects have been discussed above in the “Additional Amendments for Consideration” section of this report for the City Council’s consideration. Environmental Assessment The proposed regulations implementing SB 9 are not a “project” for purposes of the California Environmental Quality Act (CEQA) pursuant to Government Code Sections 65852.21(j) and 66411.7(n), and therefore, do not require any environmental review under CEQA. CONCLUSION: Staff therefore recommends the City Council adopt the draft ordinance to establish procedures and standards for urban lot splits and the creation of second units and two - unit developments in single-family residential zones as required by SB 9. 11 ALTERNATIVES: In addition to the Staff recommendation, the following alternative actions are available for the City Council’s consideration: 1. Identify issues or modified language to consider in the draft ordinance and continue the public hearing to a date certain for introduction. 2. Direct Staff to take no action at this time. 12 ORDINANCE NO. AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES AMENDING CHAPTER 16.40 (URBAN LOT SPLITS), CHAPTER 17.09 (SECOND UNITS AND TWO-UNIT DEVELOPMENTS IN SINGLE-FAMILY ZONES) AND CHAPTER 17.96 (DEFINITIONS) OF THE RANCHO PALOS VERDES MUNICIPAL CODE, THEREBY ESTABLISHING REGULATIONS AND DEFINITIONS FOR URBAN LOT SPLITS AND FOR SECOND UNITS AND TWO-UNIT DEVELOPMENTS IN SINGLE-FAMILY RESIDENTIAL ZONES. WHEREAS, on September 16, 2021, the Governor signed into law Senate Bill No. 9 (SB 9). This housing bill requires the ministerial approval of two dwelling units per parcel in single-family residential zones, where previously only one primary dwelling unit would have been permitted; and WHEREAS, on December 21, 2021, the City Council adopted Urgency Ordinance No. 656U to codify regulations in Title 16 (Subdivision) and Title 17 (Zoning) of the Rancho Palos Verdes Municipal Code (RPVMC) pertaining to SB 9 projects, prior to SB 9 taking effect statewide on January 1, 2022; and WHEREAS, the City desires to amend Chapter 16.40 (Urban Lot Splits), Chapter 17.09 (Second Units and Two-Unit Developments in Single-Family Zones) and Chapter 17.96 (Definitions) of Title 17 (Zoning) of the RPVMC to further refine and clarify the code regulating SB 9 projects; and WHEREAS, on March 24, 2022, a public notice was published in the Palos Verdes Peninsula News, announcing code amendment proceedings to be heard by the Planning Commission, pursuant to the requirements of the RPVMC; and WHEREAS, on April 12, 2022, the Planning Commission held a duly noticed public hearing, at which time the draft ordinance was reviewed and discussed among the Planning Commission and Staff. The item was continued to April 26, 2022, May 10, 2022, and subsequently to June 28, 2022, to allow Staff additional time to incorporate the input received; and WHEREAS, on June 28, 2022, 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 on the draft ordinance; and WHEREAS, on July 12, 2022, the Planning Commission adopted P.C. Resolution No. 2022-08, recommending that the City Council adopt this Ordinance; and A-1 WHEREAS, on August 1 and 4, 2022, a public notice was published in the Daily Breeze and the Palos Verdes Peninsula News, respectively, providing a notice of a public hearing before the City Council on August 16, 2022; and WHEREAS, on August 16, 2022, the City Council conducted a duly noticed public hearing on this Ordinance, and all testimony was received and 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. 2022-08, written staff reports, and any testimony provided at the public hearing; and WHEREAS, all legal prerequisites to the adoption of the Ordinance have been met. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES 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 by reference. B. It is the intent and purpose of this Ordinance to amend Title 16 and Title 17 of the Rancho Palos Verdes Municipal Code regarding urban lot splits and the creation of second units and two-unit developments. Section 2. The proposed code amendments to Title 16 and Title 17 adopted herein are consistent with the Rancho Palos Verdes General Plan and Coastal Specific Plan in that they uphold, and do not hinder, the goals and policies of those plans. Section 3. Chapter 16.40 (Urban Lot Splits) of Title 16 (Subdivisions) of the RPVMC is hereby amended as follows (new text in bold underline, deletions in strikethrough): Chapter 16.40 (Urban Lot Splits) 16.40.010 Purpose. The purpose of this chapter is to establish procedures and standards for urban lot splits in accordance with the requirements of Government Code Section 66411.7. 16.40.020 Permitted applicants; ministerial Ministerial review; standard for denial. A. Only individual property owners may apply for an urban lot split. “Individual property owner” means a natural person holding fee title individually or jointly in the person’s own name or as a beneficiary of a trust that holds fee title. “Individual property owner” does not include any corporation or A-2 corporate person of any kind (partnership, LP, LLC, C corp, S corp, etc.) except for a “community land trust,” as defined in Revenue and Taxation Code Section 402.1(a)(11)(C)(ii), or a “qualified nonprofit corporation” as described in Revenue and Taxation Code Section 214.15. AB. Notwithstanding any other provision of this code, an application for an urban lot split shall be considered ministerially, without discretionary review or a hearing, and shall be approved if it meets all of the requirements of this chapter. BC. An application for an urban lot split shall be approved or denied by the director. CD. Any interested person may appeal a decision of the director to the planning commission and a decision of the planning commission to the city council pursuant to Chapter 17.80 (Hearing Notice and Appeal Procedures). DE. Notwithstanding subsection (AB), the city may deny an application for an urban lot split if the building official, or designee, makes a written finding, based upon a preponderance of the evidence, that the proposed urban lot split would have a specific, adverse impact, as defined in subsection (d)(2) of Government Code Section 65589.5, upon public health and safety or the physical environment an d for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. 16.40.030 Parcel requirements. The parcel that is proposed for subdivision through an urban lot split: A. Shall be located in an RS zoning district; B. Shall satisfy all the requirements of subsections (a)(6)(B) through (a)(6)(K), inclusive, of Government Code Section 65913.4; C. Shall not be located within a historic district or on property included on the State Historic Resources Inventory, as defined in Public Resources Code Section 5020.1, or within a site that is designated or listed as a city or county landmark or historic property or district pursuant to a city or county ordinance; D. Shall not be located in the landslide moratorium area, as defined in Section 15.20.020; E. Shall not have been created through a previous urban lot split ; and FE. Shall not be adjacent to a parcel that was previously subdivided through an urban lot split by the owner of the parcel on which the urban lot split is proposed or any person acting in concert with the owner.; G. Shall only have residential uses located on it on the date the urban lot split is approved; and H. Shall have at least one residential dwelling unit with a valid certificate of occupancy located on it on the date that the urban lot split is approved, unless the parcel is owned by a “community land trust,” as defined in Revenue and Taxation Code Section 402.1(a)(11)(C)(ii), or a “qualified nonprofit corporation” as described in Revenue and Taxation Code Section 214.15. A-3 16.40.040 Additional requirements. A. An urban lot split shall subdivide an existing parcel to create no more than two new parcels of approximately equal lot area, provided that: 1. Neither resulting parcel shall be smaller than 40 percent of the lot area of the current parcel proposed for subdivision; 2. Neither resulting parcel shall be smaller than 1,200 square feet; and 3. No flag lots shall be created as a result of the lot split if the existing parcel is adjacent to an alley, or is a corner lot or through lot. B. An urban lot split shall not be approved unless, at the time the parcel map is recorded: 1. Each resulting parcel will have an existing residential dwelling on it; or 2. The applicant has obtained building permits to construct at least one dwelling on any resulting parcel that does not have an existing residential dwelling on it. BC. An urban lot split shall not result in the creation of a parcel with more than two existing units, as defined in Section 16.40.060 (Limitation on Number of Units). CD. An urban lot split shall not require or allow the demolition or alteration of any of the following types of housing: 1. Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. 2. Housing that is subject to any form of rent or price control through a public entity's valid exercise of its police power. 3. A parcel on which an owner of residential real property has exercised the owner's rights under Chapter 12.75 (commencing with Section 7060) of Division 7 of Title 1 of the Government Code to withdraw accommodations from rent or lease within 15 years before the date that the development proponent submits an application. 4. Housing that has been occupied by a tenant in the last three years. DE. As a condition of approval for an urban lot split, the applicant and owner (if different from the applicant) owner of the parcel being split shall sign an affidavit, in a form approved by the city attorney, stating that: 1. The proposed urban lot split will not violate the requirements of subsection (DC) of this section; 2. Neither the owner nor applicant, nor any person acting in concert with the owner or applicant, has previously subdivided an adjacent parcel using an urban lot split; and 3. The applicant owner intends to occupy one of the housing units a residential dwelling unit on one of the parcels created by the urban lot split as their primary residence for a minimum of three years from the date of the approval of the urban lot split. This means that the applicant will live in an existing unit on one of the parcels, if any, or will live in the first unit constructed on either of the parcels if there are no existing units. This subsection (ED)(3) shall not apply to an applicant that if the owner of the parcel is a “community land trust,” as defined in Revenue and Taxation Code Section 402.1(a)(11)(C)(ii), or a “qualified nonprofit corporation” as described in A-4 Revenue and Taxation Code Section 214.15.a "community land trust," as defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code, or is a "qualified nonprofit corporation" as described in Section 214.15 of the Revenue and Taxation Code. EF. As a condition of approval of an urban lot split, the owner shall dedicate all easements over the resulting parcels required for the provision of public services and facilities, as determined by the city engineer. FG. Each parcel resulting from an urban lot split shall have access to or adjoin the public right-of-way, and, if necessary, provide the other parcel with access to the right-of-way through an easement. G. Lots created through an urban lot split shall only have one driveway approach. Review and approval by the Public Works Department shall be required, as a condition of approval, prior to creation of a new curb cut for a driveway approach to ensure compliance with applicable safety standards. H. The city shall not require as a condition of approval of an urban lot split: 1. Dedications of rights-of-way or the construction of offsite improvements; or 2. The correction of non-conforming zoning conditions existing on the parcel that will be divided. I. An urban lot split: 1. Shall conform with all the requirements of the Subdivision Map Act; and 2. Shall conform with all the requirements applicable to parcel maps in this code, except for those requirements that conflict with the requirements of this chapter, in which case the provisions of this chapter shall control. 16.40.050 Limitations applicable to new parcels. A. Parcels created by an urban lot split shall only be used for residential uses, notwithstanding the fact that other uses may be permitted in the zoning district in which the parcels are located. B. Residential units constructed on parcels created by an urban lot split shall not be rented for a term of less than 31 consecutive days, also known as a short-term rental. C. A parcel created through an urban lot split may not be further subdivided by a subsequent urban lot split. 16.40.060 Limitation on number of units. Notwithstanding any other provision of this code, no more than two units are permitted on any parcel created by an urban lot split. For the purposes of this section, "unit" means any dwelling unit, including, but not limited to, a primary dwelling unit, a unit or units created under Chapter 17.09 (Second Units and Two -Unit Developments in Single-Family Zones), an accessory dwelling unit, or a junior accessory dwelling unit. 16.50.070 Coastal permit. A-5 Notwithstanding any other provision of this chapter, as a condition of approval of an application for an urban lot split, the applicant shall comply with the requirements of Chapter 17.72 (Coastal Permits) that would otherwise apply to an application for a parcel map. 16.50.080 Deed Restriction As a condition of approval of an urban lot split, the owner of the parcel to be divided shall execute a deed restriction, in a form approved by the city attorney, which shall be recorded on each of the resulting parcels, at the property owner’s expense, and shall limit the use of each parcel in accordance with the standards of this chapter. Violation of the deed restriction shall be considered a violation of this code and may be enforced in a manner that this code may be enforced. Section 4. Chapter 17.09 (Second Units and Two-Unit Developments in Single- Family Zones) and Chapter 17.96 (Definitions) of Title 17 (Zoning) of the RPVMC are hereby amended as follows, with the remaining portions of those chapters remaining unchanged (new text in bold underline, deletions in strikethrough): Chapter 17.09 (Second Units and Two-Unit Developments in Single-Family Zones) 17.09.030 Requirements. Proposed second units and two-unit developments: A. Shall be located in the RS zoning district; B. Shall be located on a parcel that meets all the requirements of subsections (a)(6)(B) through (a)(6)(K), inclusive, of Government Code Section 65913.4; C. Shall not require or allow the demolition or alterat ion of any of the following types of housing: 1. Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income; 2. Housing that is subject to any form of rent or price control through a public entity's valid exercise of its police power; or 3. Housing that has been occupied by a tenant in the last three years; D. Shall not require or allow the demolition of more than 25 percent of the existing exterior structure walls on the parcel if the parcel has been occupied by a tenant in the last three years; E. Shall not be located on a parcel on which an owner of residential real property has exercised the owner's rights under Chapter 12.75 (commencing with Section 7060) of Division 7 of Title 1 of the Government Code to withdraw accommodations from rent or lease within 15 years before the date that the development proponent submits an application; F. Shall not be located within a historic district or on p roperty included on the State Historic Resources Inventory, as defined in Public Resources Code Section 5020.1, A-6 or within a site that is designated or listed as a city or county landmark or historic property or district pursuant to a city or county ordinance; and G. Shall not be located in the landslide moratorium area, as defined in Section 15.20.020, unless the proposed project falls within one of the exception categories in Section 15.20.040. If applicable, a landslide moratorium exception permit shall be obtained by the applicant prior to the approval of the application for a second unit or two-unit development. G. Shall each have a separate entrance. 17.09.040 Development standards. A second unit, and both of the units in a two-unit development, shall comply with all of the following development standards: A. Configuration. A second unit, and both units of a two-unit development, may be attached to, adjacent to, or detached from, any other dwelling unit structure on the parcel, subject to subsections (C) and (D) of Section 17.09.030 (Requirements). The units in a two-unit development may be attached or detached from one another, provided that adjacent or attached units shall be sufficiently constructed to allow for separate conveyance. B. Size. Notwithstanding any other development standard, aA second unit, and both of the units in a two-unit development, shall may be up to no larger than 800 square feet in floor area each. Second units, and both units in a two-unit development, that are constructed on a lot that is at least 20,000 square feet may be up to 1,000 square feet in floor area. C. Height. A second unit, and both of the units in a two-unit development, shall be no taller than 16 feet in height as measured from adjacent pre -construction grade and shall be one-story. D. Setbacks. No setback beyond the existing setback shall be required for an existing structure or for a unit constructed in the same location and to the same dimensions as an existing structure. In all other circumstances, second units, and both units of a two-unit development, shall be set back at least four feet from the side and rear lot lines. E. Parking. 1. One new off-street parking space, either enclosed or open, is required for a second unit and one off-street parking space per unit is required for each unit of a two-unit development. Such parking spaces shall be in addition to all existing parking spaces on the parcel. 2. Notwithstanding subsection (E)(1), no parking spaces are required for a second unit or a two-unit development if either: a. The parcel is located within one-half mile walking distance of either a high- quality transit corridor, as defined in subsection (b) of Public Resources Code Section 21155, or a major transit stop, as defined in Public Resources Code Section 21064.3; or b. There is a car share vehicle located within one block of the parcel. A-7 3. If the construction of a second unit or two-unit development requires the conversion or demolition of a garage, carport, or covered parking structure required under subsection 17.02.030(E), then such covered parking spaces shall be replaced. The replacement parking may be located in any configuration on the same lot, including, but not limited to, as covered spaces, uncovered spaces, or tandem spaces, or by the use of mechanical automobile parking lifts, without adversely impacting traffic flow and public safety. The replacement parking shall comply with the minimum number of spaces and dimensions stated in subsection 17.02.030(E). F. Decks. No attached decks, including roof decks and balconies, will be allowed that exceed 6 inches in height, as measured from adjacent finished grade, for second units or either unit in a two-unit development. G. Grading. For second units and two-unit developments built on sloping lots, grading shall be limited to a combined total of 200 cubic yards, provided the proposed grading is limited to notching the unit(s) into the existing slope and no additional grading is proposed to create ancillary flat surfaces around the proposed unit(s), except as may be required for fire safety requirements or access purposes. H. Extreme Slope. Applications, including the required Variance pursuant to Section 17.64, for second units and two-unit developments proposed to be built on extreme slopes may be denied if the City’s geologist determines that the proposed structure(s) will result in a specific adverse impact, as defined in Government Code Section 65589.5(d)(2), upon public health and safety or the physical environment, that cannot be satisfactorily mitigated or avoided. As a condition of approval of an application for a second unit or two-unit development on an extreme slope or which involves grading to accommo date the unit(s), the applicant shall submit a geological or geotechnical study reasonably required by the City for review and approval by the City’s geologist. I. Location of Second Unit. A detached second unit shall be located behind the primary residence, and be clearly subordinate to the primary residence, both in height and width. If it is not legally and/or physically possible for a detached second unit to be built behind the primary residence, then it may be built in front or to the side of the primary residence subject to a minimum front setback of 25 feet. J. Separation Between Detached Units. Detached second units and both units of a two-unit development, if detached from one another, built within a very high fire hazard severity zone, must maintain a ten-foot separation from the primary residence or each other, as applicable. K. Separate Entrances. Detached second units and both units of a two-unit development shall have separate entrances from any other unit. L. Driveways. Notwithstanding the number of units on the lot, no additional curb cuts to create new driveways shall be allowed unless the Public Works Director determines that a new curb cut is required for public health and safety purposes. A-8 M. Additional Development Standards. Except as provided in subsections (A) through (EL), second units, and each unit of a two -unit development, shall comply with all development standards that would be applicable to a primary dwelling unit on the same parcel. N. Limitation on Enforcement of Development and Design Standards. If the enforcement of a development standard, wWith the exceptions of the setback requirements in subsection (D), and the requirement to comply with all building codes, the city shall not enforce any development standard or the design standards in Section 17.09.050, would physically limit the size of a primary dwelling unit to less than 800 square feet, or would physically limit the property to having only one primary dwelling unit, then the standard shall be relaxed or waived to the extent necessary to allow the unit to be up to 800 square feet, or to allow a second primary dwelling unit on the property, or both, as applicable. to the extent that it would have the effect of physically precluding the construction of a second unit or two-unit development on a parcel, or would physically preclude either the primary dwelling unit or second unit from being at least 800 square feet in floor area. 17.09.050 Design standards. A. Second units, and each unit of a two-unit development, shall comply with all objective design standards that would be applicable to a primary dwelling unit on the same parcel. B. Each second unit shall be architecturally consistent with the primary reside nce and both units of a two-unit development shall be architecturally consistent with each other, such that the matching units use complementary color palettes, exterior finishes, and matching roof pitches as viewed from all sides. The roof slope must match that of the dominant roof slope of the primary dwelling or matching unit. The dominant roof slope is the slope shared by the largest portion of the roof. C. Any garage door shall be removed from a garage or other accessory structure that is converted to a second unit, and the opening shall be treated and finished to match the primary residence. D The units shall provide privacy mitigation measures by having the entrance to the units face away from the nearest, adjacent property. E. No entry to a second unit shall be visible from the public right-of-way. F. The exterior lighting on a second unit or two-unit development must comply with Section 17.56.030 (Outdoor Lighting for Residential Uses) of this code. 17.09.060 Rental term; separate conveyance. A. Second units and the units in a two-unit development shall not be rented for a term of less than 31 consecutive days, also known as a short-term rental. B. A second unit may not be turned into a condominium or otherwise sold separately from the other primary unit on the parcel. The units in a two-unit development may not be turned into condominiums or otherwise sold separately from one another. For purposes of this Chapter, “primary unit” A-9 means a dwelling unit other than an accessory dwelling unit or junior accessory dwelling unit. 17.09.070 - Affordable rent requirement. Second units, and both units of a two -unit development, if rented, shall only be rented at an affordable rent for lower -income households, as defined in Health and Safety Code Section 50053, and shall only be rented to lower -income households, as defined in Health and Safety Code Section 50079.5, for a minimum of 55 years. Prior to the issuance of a certificate of occupancy for any second unit or any unit of a two -unit development, the owner of the property shall execute and record on the property a deed restriction, in a form approved by the director and the city attorney, establishing legal restrictions consistent with this section. 17.09.070 Requirement for issuance of building permit. A building permit shall not be issued for a second unit unless there is one existing primary dwelling unit on the parcel. For purposes of this section, a primary dwelling unit shall be considered to be “existing” if it has a current valid certif icate of occupancy or a building permit that has been finaled. 17.09.080 Total number of units A. Any lot created by a lot split pursuant to Chapter 16.40 (Urban Lot Splits) shall be limited to a maximum of two units. B. No more than four units shall be permitted on a single-family residential lot that has not undergone a lot split. C. The maximum number of units permitted on any single-family residential lot may be any combination of primary dwelling units, second units, two-unit developments, accessory dwelling units, or junior accessory dwelling units, provided that the total permitted number of units per lot is not exceeded, and subject to the limitations on the development of accessory dwelling units and junior accessory dwelling units in Chapter 17.10 (Accessory Dwelling Unit and Junior Accessory Dwelling Unit Development Standards). A-10 17.09.08090 Coastal permit. Notwithstanding any other provision of this chapter, as a condition of approval of an application for a second unit or two-unit development, the applicant shall comply with the requirements of Chapter 17.72 (Coastal Permits). Chapter 17.96 - Definitions 17.96.578 - Development, two-unit. “Two-unit development” means the simultaneous construction development of two new residential dwelling units, other than an accessory dwelling unit or junior accessory dwelling unit, on a single parcel with where either (i) there are no existing primary residential dwelling unit other than an accessory dwelling unit or (ii) all existing residential dwelling units other than an accessory dwelling unit will be demolished prior to construction of the two new residential dwelling units.”. 17.96.2155 - Unit, second. “Second unit” means a second residential dwelling unit, other than an accessory dwelling unit or junior accessory dwelling unit, added to a property parcel with only one an existing primary dwelling unit, either by (i) the construction of a new residential dwelling unit, (ii) the conversion of an existing structure into a residential dwelling unit, (iii) the bifurcation of an existing residential dwelling unit into two separate residential dwelling units, or (iv) the use of another means other than the construction of a two-unit development. Section 5. This ordinance is exempt from the California Environmental Quality Act (“CEQA”) pursuant to Government Code Sections 65852.21(j) and 66411.7(n), as the proposed regulations implementing SB 9 are not considered a “project”, and therefore, do not require any environmental review. Section 6. 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. A-11 Section 7. 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 8. Effective Date. This Ordinance shall go into effect on the 31st day after its passage. PASSED, APPROVED AND ADOPTED this 16th day of August, 2022. David L. Bradley, Mayor Attest: Teresa Takaoka, City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES )ss CITY OF RANCHO PALOS VERDES ) I, Teresa Takaoka, City Clerk of the City of Rancho Palos Verdes, do hereby certify that the above Ordinance No. 2022-__, was introduced by the City Council of said City at a regular meeting thereof held on August 16, 2022, and that the same was passed and adopted by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: ______________________ Teresa Takaoka, City Clerk A-12 P.C. RESOLUTION NO. 2022-08 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF RANCHO PALOS VERDES RECOMMENDING THAT THE CITY COUNCIL ADOPT THE PROPOSED AMENDMENTS TO TITLE 17 (ZONING) OF THE RANCHO PALOS VERDES MUNICIPAL CODE TO ESTABLISH DEFINITIONS AND REGULATIONS FOR SECOND UNITS AND TWO-UNIT DEVELOPMENTS IN SINGLE-FAMILY RESIDENTIAL ZONES CASE NO. PLCA2022-0001) WHEREAS, on September 16, 2021, the Governor signed into law Senate Bill No. 9 SB 9). This housing bill requires the ministerial approval of two dwelling units per parcel in single-family residential zones, where previously only one primary dwelling unit would have been permitted; and WHEREAS, on December 21, 2021, the City Council adopted Urgency Ordinance No. 656U to codify regulations in Title 16 (Subdivision) and Title 17 (Zoning) of the Rancho Palos Verdes Municipal Code (RPVMC) pertaining to SB 9 projects, prior to SB 9 taking effect statewide on January 1, 2022; and WHEREAS, the City desires to amend Chapter 17.09 (Second Units and Two-Unit Developments in Single-Family Zones) and Chapter 17.96 (Definitions) of Title 17 (Zoning) of the RPVMC to further refine and clarify the code to better regulate SB 9 projects; and WHEREAS, on March 24, 2022, a public notice was published in the Palos Verdes Peninsula News, announcing code amendment proceedings to be heard by the Planning Commission, pursuant to the requirements of the RPVMC; and WHEREAS, on April 12, 2022, the Planning Commission held a duly noticed public hearing, at which time the draft ordinance was reviewed and discussed among the Planning Commission and Staff. The item was continued to April 26, 2022, May 10, 2022, and subsequently to June 28, 2022, to allow Staff additional time to incorporate the input received; and WHEREAS, on June 28, 2022, 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 on the draft ordinance. l NOW, THEREFORE, THE PLANNING COMMISSION OF THE CITY OF RANCHO PALOS VERDES, HEREBY FINDS, DETERMINES, AND RESOLVES AS FOLLOWS: SECTION 1. The above recitals are true and correct and incorporated fully herein by reference. P.C. Resolution No.2022-08 Page 1 of 11B-1 SECTION 2. The Planning Commission has reviewed and considered the proposed code amendments to Title 17 (Zoning) of the Rancho Palos Verdes Municipal Code regarding second units and two-unit developments, as presented in `Exhibit A'. SECTION 3. The proposed amendments are consistent with the Rancho Palos Verdes General Plan and Coastal Specific Plan in that they uphold, and do not hinder, the goals and policies of those plans. SECTION 4. The proposed amendments are exempt from the California Environmental Quality Act ("CEQA") pursuant to Government Code Sections 65852.21(j) and 66411.7(n), as the proposed regulations implementing SB 9 are not considered a project", and therefore, do not require any environmental review. SECTION 5. 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 that the City Council adopt the Ordinance attached hereto as `Exhibit A,' entitled, "AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES AMENDING TITLE 17 (ZONING) OF THE RANCHO PALOS VERDES MUNICIPAL CODE TO AMEND SECTION 17.02.020 (SINGLE FAMILY RESIDENTIAL (RS)) DISTRICTS — USES AND DEVELOPMENT PERMITTED), ADD CHAPTER 17.09 (SECOND UNITS AND TWO-UNIT DEVELOPMENTS IN SINGLE-FAMILY ZONES), AND AMEND CHAPTER 17.96 (DEFINITIONS) THEREBY ESTABLISHING DEFINITIONS AND REGULATIONS FOR SECOND UNITS AND TWO-UNIT DEVELOPMENTS IN SINGLE-FAMILY RESIDENTIAL ZONES". PASSED, APPROVED AND ADOPTED this 12th day of July, 2022. AYES: COMMISSIONERS NELSON, NULLMAN, PERESTAM, SAADATNEJADI AND VICE-CHAIR CHURA NOES: NONE ABSTENTIONS: COMMISSIONER SANTAROSA AND CHAIR HAMILL RECUSALS: NONE ABSENT: NONE eli tAAAA4 Julie amill Cha Ken Rukavina, PE, Director of Community Development Secretary of the Planning Commission P.C. Resolution No.2022-08 Page 2 of 11B-2 EXHIBIT "A" DRAFT ORDINANCE NO. _ Please see attached. P.C. Resolution No.2022-08 Page 3 of 11B-3 ORDINANCE NO._ AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES AMENDING TITLE 17 (ZONING) OF THE RANCHO PALOS VERDES MUNICIPAL CODE TO AMEND SECTION 17.02.020 SINGLE FAMILY RESIDENTIAL (RS)) DISTRICTS— USES AND DEVELOPMENT PERMITTED), ADD CHAPTER 17.09 (SECOND UNITS AND TWO-UNIT DEVELOPMENTS IN SINGLE-FAMILY ZONES), AND AMEND CHAPTER 17.96 (DEFINITIONS) THEREBY ESTABLISHING DEFINITIONS AND REGULATIONS FOR SECOND UNITS AND TWO-UNIT DEVELOPMENTS IN SINGLE-FAMILY RESIDENTIAL ZONES WHEREAS, on September 16, 2021, the Governor signed into law Senate Bill No. 9 SB 9). This housing bill requires the ministerial approval of two dwelling units per parcel in single-family residential zones, where previously only one primary dwelling unit would have been permitted; and WHEREAS, on December 21, 2021, the City Council adopted Urgency Ordinance No. 656U to codify regulations in Title 16 (Subdivision) and Title 17 (Zoning) of the Rancho Palos Verdes Municipal Code (RPVMC) pertaining to SB 9 projects, prior to SB 9 taking effect statewide on January 1, 2022; and WHEREAS, the City desires to amend Chapter 17.09 (Second Units and Two-Unit Developments in Single-Family Zones) and Chapter 17.96 (Definitions) of Title 17 (Zoning) of the RPVMC to further refine and clarify the code to better regulate SB 9 projects; and WHEREAS, on March 24, 2022, a public notice was published in the Palos Verdes Peninsula News, announcing code amendment proceedings to be heard by the Planning Commission, pursuant to the requirements of the RPVMC; and WHEREAS, on April 12, 2022, the Planning Commission held a duly-noticed public hearing, at which time the draft ordinance was reviewed and discussed among the Planning Commission and Staff. The item was continued to April 26, 2022, May 10, 2022, and subsequently to June 28, 2022, to allow Staff additional time to incorporate the input received; and WHEREAS, on June 28, 2022, 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 on the draft ordinance; and WHEREAS, on July 12 2022, the Planning Commission adopted P.C. Resolution No. 2022- , recommending that the City Council adopt this Ordinance; and WHEREAS, on a public notice was published in the Palos Verdes Peninsula News, providing a notice of a public hearing before the City Council on and P.C. Resolution No.2022-08 Page 4 of 11B-4 WHEREAS, on the City Council conducted a duly noticed public hearing on this Ordinance, and all testimony was received and 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. 2022- , written staff reports, and any testimony provided at the public hearing; and WHEREAS, all legal prerequisites to the adoption of the Ordinance have been met. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES 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 by reference. B. It is the intent and purpose of this Ordinance to amend to Title 17 of the Rancho Palos Verdes Municipal Code regarding second units and two-unit developments. SECTION 2. The proposed code amendments to Title 17 adopted herein are consistent with the Rancho Palos Verdes General Plan and Coastal Specific Plan in that they uphold, and do not hinder, the goals and policies of those plans. SECTION 3. Chapter 17.09 (Second Units and Two-Unit Developments in Single- Family Zones) and Chapter 17.96 (Definitions) of Title 17 (Zoning) of the RPVMC are hereby amended as follows, with the remaining portions of those chapters remaining unchanged new text in bold underline, deletions in Chapter 17.09 (Second Units and Two-Unit Developments in Single-Family Zones) 17.09.030 Requirements. Proposed second units and two-unit developments: A. Shall be located in the RS zoning district; B. Shall be located on a parcel that meets all the requirements of subsections (a)(6)(B) through (a)(6)(K), inclusive, of Government Code Section 65913.4; C. Shall not require or allow the demolition or alteration of any of the following types of housing:g 1. Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income; 2. Housingthat is to anyform of rent orprice control through apublic entity'ssubjectgY valid exercise of its police power; or 3. Housing that has been occupied by a tenant in the last three years; P.C. Resolution No.2022-08 Page 5 of 11B-5 D. Shall not require or allow the demolition of more than 25 percent of the existing exterior structure walls on the parcel if the parcel has been occupied by a tenant in the last three years; E. Shall not be located on a parcel on which an owner of residential real property has exercised the owner's rights under Chapter 12.75 (commencing with Section 7060) of Division 7 of Title 1 of the Government Code to withdraw accommodations from rent or lease within 15 years before the date that the development proponent submits an application; F. Shall not be located within a historic district or on property included on the State Historic Resources Inventory, as defined in Public Resources Code Section 5020.1, or within a site that is designated or listed as a city or county landmark or historic property or district pursuant to a city or county ordinance; and G. Shall not be located in the landslide moratorium area, as defined in Section 15.20.020, unless the proposed project falls within one of the exception categories in Section 15.20.040. If applicable, a landslide moratorium exception permit shall be obtained by the applicant prior to the approval of the application for a second unit or two-unit development. G. Shall each have a separate entrance. 17.09.040 Development standards. A second unit, and both of the units in a two-unit development, shall comply with all of the following development standards: A. Configuration. A second unit, - ' e e= - - -' = - = - -' : - . - _ _ -- - - , may be attached to7-adjacent to, or detached from, any other dwelling unit structure on the parcel, subject to subsections (C) and (D) of Section 17.09.030 (Requirements). The units in a two-unit development may be attached or detached from one another; B. Size. Notwithstanding any other development standard, aA second unit, and both efthe units in a two-unit development, shat may be up to 800 square feet in floor area each. Second units, and both units in a two-unit development, that are constructed on a lot that is at least 20,000 square feet may be up to 1,000 square feet in floor area. C. Height. A second unit, and both of the units in a two-unit development, shall be no taller than 16 feet in height as measured from adjacent pre-construction grade and shall be one-story. D. Setbacks. No setback beyond the existing setback shall be required for an existing structure or for a unit constructed in the same location and to the same dimensions as an existing structure. In all other circumstances, second units, and both units of a two- unit development, shall be set back at least four feet from the side and rear lot lines. E. Parking. 1. One new off-street parking space, either enclosed or open, is required for a second unit and = - - = • -- =- •- = = - -- = - - -• • -= -' -= for each unit of a two-unit development. Such parking spaces shall be in addition to all existing parking spaces on the parcel. P.C. Resolution No.2022-08 Page 6 of 11B-6 2. Notwithstanding subsection (E)(1), no parking spaces are required for a second unit or a two-unit development if either: a. The parcel is located within one-half mile walking distance of either a high- quality transit corridor, as defined in subsection (b) of Public Resources Code Section 21155, or a major transit stop, as defined in Public Resources Code Section 21064.3; or b. There is a car share vehicle located within one block of the parcel. F. Decks. No attached decks, including roof decks and balconies, will be allowed that exceed 6 inches in height, as measured from adjacent finished grade, for second units or either unit in a two-unit development. G. Grading. For second units and two-unit developments built on sloping lots, grading shall be limited to a combined total of 200 cubic yards, provided the proposed grading is limited to notching the unit(s) into the existing slope and no additional grading is proposed to create ancillary flat surfaces around the proposed unit(s), except as may be required for fire safety requirements or access purposes. H. Extreme Slope. Applications for second units and two-unit developments proposed to be built on extreme slopes may be denied if the City's geologist determines that the proposed structure(s)will result in a specific adverse impact, as defined in Government Code Section 65589.5(d)(2), upon public health and safety or the physical environment, that cannot be satisfactorily mitigated or avoided. As a condition of approval of an application for a second unit or two- unit development on an extreme slope or which involves grading to accommodate the unit(s), the applicant shall submit a geological or geotechnical study reasonably required by the City for review and approval by the City's geologist. I. Location of Second Unit. A detached second unit shall be located behind the primary residence, and be clearly subordinate to the primary residence, both in height and width. If it is not legally and/or physically possible for a detached second unit to be built behind the primary residence, then it may be built in front or to the side of the primary residence subject to a minimum front setback of 25 feet. J. Separation Between Detached Units. Detached second units and both units of a two-unit development, if detached from one another, built within a very high fire hazard severity zone, must maintain a ten-foot separation from the primary residence or each other, as applicable. K. Separate Entrances. Detached second units and both units of a two-unit development shall have separate entrances from any other unit. L. Driveways. Notwithstanding the number of units on the lot, no additional curb cuts to create new driveways shall be allowed unless the Public Works Director determines that a new curb cut is required for public health and safety purposes. M.Additional Development Standards. Except as provided in subsections (A)through (EL), second units, and each unit of a two-unit development, shall comply with all development standards that would be applicable to a primary dwelling unit on the same parcel. N. Limitation on Enforcement of Development and Design Standards. If the enforcement of a development standard, wWith the exceptions of the setback requirements in P.C. Resolution No.2022-08 Page 7 of 11B-7 subsection (D), e - e or the design standards in Section 17.09.050, would physically limit the size of a primary dwelling unit to less than 800 square feet, or would physically limit the property to having only one primary dwelling unit, then the standard shall be relaxed or waived to the extent necessary to allow the unit to be up to 800 square feet, or to allow a second primary dwelling unit on the property, or both, as applicable. = - - - - - - - - • _ : - _ - - - - • - 19 - - -- •- .- 17.09.050 Design standards. A. Second units, and each unit of a two-unit development, shall comply with all objective design standards that would be applicable to a primary dwelling unit on the same parcel. B. Each second unit shall be architecturally consistent with the primary residence and both units of a two-unit development shall be architecturally consistent with each other, such that the matching units use complementary color palettes, exterior finishes, and matching roof pitches as viewed from all sides. The roof slope must match that of the dominant roof slope of the primary dwelling or matching unit. The dominant roof slope is the slope shared by the largest portion of the roof. C. Any garage door shall be removed from a garage or other accessory structure that is converted to a second unit, and the opening shall be treated and finished to match the primary residence. D The units shall provide privacy mitigation measures by having the entrance to the units face away from the nearest, adjacent property. E. No entry to a second unit shall be visible from the public right-of-way. F. The exterior lighting on a second unit or two-unit development must comply with Section 17.56.030 (Outdoor Lighting for Residential Uses) of this code. 17.09.060 Rental term; separate conveyance. A. Second units and the units in a two-unit development shall not be rented for a term of less than 31 consecutive days. B. A second unit may not be turned into a condominium or otherwise sold separately from the other primary unit on the parcel. The units in a two-unit development may not be turned into condominiums or otherwise sold separately from one another. For purposes of this Chapter, "primary unit" means a dwelling unit other than an accessory dwelling unit or junior accessory dwelling unit. 1 1 e e - •- e-- -e . - -* - 1 and Safety Code Section 50079.5, for a minimum of 55 years. Prior to the issuance of a P.C. Resolution No.2022-08 Page 8 of 11B-8 form approved by the director and the city attorney, establishing legal restrictions 17.09.070 Requirement for issuance of building permit. A building permit shall not be issued for a second unit unless there is one existing primary dwelling unit on the parcel. For purposes of this section, a primary dwelling unit shall be considered to be "existing" if it has a current valid certificate of occupancy or a building permit that has been finaled. 17.09.080 Total number of units A. Any lot created by a lot split pursuant to Chapter 16.40 (Urban Lot Splits) shall be limited to a maximum of two units. B. No more than four units shall be permitted on a single-family residential lot that has not undergone a lot split. C. The maximum number of units permitted on any single-family residential lot may be any combination of primary dwelling units, second units, two-unit developments, accessory dwelling units, or junior accessory dwelling units, provided that the total permitted number of units per lot is not exceeded, and subject to the limitations on the development of accessory dwelling units and junior accessory dwelling units in Chapter 17. 10 (Accessory Dwelling Unit and Junior Accessory Dwelling Unit Development Standards). 17.09.890 Coastal permit. Notwithstanding any other provision of this chapter, the applicant shall comply with the requirements of Chapter 17.72 (Coastal Permits). Chapter 17.96 - Definitions 17.96.578 - Development, two-unit. Two-unit development" means the simultaneous development of two newpp residential dwelling units, other than an accessory dwelling unit or junior accessory dwelling unit, on a single parcel with where either (i) there are no existing primary residential dwelling unit - - - a 17.96.2155 - Unit, second. Second unit" means a second residential dwelling unit, other than an accessory dwelling unit or junior accessory dwelling unit, added to a parcel with one and only one an-existing primary dwelling unit, -• - - - P.C. Resolution No.2022-08 Page 9 of 11B-9 me SECTION 4. This ordinance is exempt from the California Environmental Quality Act ("CEQA") pursuant to Government Code Sections 65852.21(j) and 66411.7(n), as the proposed regulations implementing SB 9 are not considered a "project", and therefore, do not require any environmental review. SECTION 5. 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. SECTION 6. 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 7. Effective Date. This Ordinance shall go into effect on the 31st day after its passage. PASSED, APPROVED AND ADOPTED this day of 2022. David L. Bradley, Mayor Attest: Teresa Takaoka, City Clerk STATE OF CALIFORNIA COUNTY OF LOS ANGELES ss CITY OF RANCHO PALOS VERDES ) P.C. Resolution No.2022-08 Page 10 of 11B-10 I, Teresa Takaoka, City Clerk of the City of Rancho Palos Verdes, do hereby certify that the above Ordinance No. 2022- , was duly-adopted by the City Council of said City at a regular meeting thereof held on 2022. AYES: NOES: ABSENT: ABSTAIN: Teresa Takaoka, City Clerk P.C. Resolution No.2022-08 Page 11 of 11B-11 ORDINANCE NO. 656U AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, AMENDING TITLE 16 (SUBDIVISION) BY ADDING SECTION 16.40 (URBAN LOT SPLITS), AMENDING TITLE 17 (ZONING) OF SECTION 17.02.020 (SINGLE FAMILY RESIDENTIAL ((RS)) DISTRICTS — USES AND DEVELOPMENT PERMITTED), ADDING CHAPTER 17.09 SECOND UNITS AND TWO-UNIT DEVELOPMENTS IN SINGLE-FAMILY ZONES), AND AMENDING CHAPTER 17.96 (DEFINITIONS) OF THE RANCHO PALOS VERDES MUNICIPAL CODE THEREBY ESTABLISHING DEFINITIONS AND REGULATIONS FOR URBAN LOT SPLITS AND TWO-UNIT DEVELOPMENTS IN SINGLE- FAMILY RESIDENTIAL ZONES WHEREAS, on September 16, 2021, the Governor signed into law Senate Bill No. 9 (SB 9). This bill requires the ministerial approval of two dwelling units per parcel in single-family residential zones, where previously only one primary dwelling unit would have been permitted; and, WHEREAS, SB 9 takes effect on January 1, 2022, and it therefore is necessary for the City to establish objective standards regarding housing developments and lot splits to regulate SB 9 projects; and, WHEREAS, the City Council desires to establish objective standards to preserve the City's open space character and quality of life as characterized by the City's General Plan; and, WHEREAS, pursuant to Government Code § 36937, subdivision (b), any ordinance for the immediate preservation of the public peace, health, or safety, containing a declaration of the facts constituting the urgency, that is passed by a four-fifths (4/5) vote of the City Council, shall take effect immediately upon its adoption; and WHEREAS, the City Council seeks and intends to protect the health, safety, and welfare of the residents of the City of Rancho Palos Verdes by establishing regulations for urban lot splits and two-unit developments in single,family residential zones, as further described herein. NOW THEREFORE, the City Council of the City of Rancho Palos Verdes does hereby ordain as follows: Section 1. Recitals. The above recitals are incorporated herein by this reference. Section 2. Urgency Findings. A. SB 9 requires the ministerial approval of two dwelling units per parcel in single-family residential zones, where previously only one primary dwelling unit would 01203.0002/756855.3 Ordinance No 656U Page 1 of13 C-1 have been permitted, in addition to accessory dwelling units and junior accessory dwelling units, in some cases. B. Additionally, SB 9 requires ministerial approval of lot splits in single-family residential zones and allows two units to be built on each resulting parcel. C. This bill has the potential to dramatically increase the density and population of single-family zones, potentially placing a strain on public resources and the infrastructure that serves these zoning districts. D. Moreover, SB 9 continues a pattern of state action that deprives cities of control over issues of fundamental local concern and traditional local control, namely, the character and quality of residential neighborhoods and the ability to control and plan for the uses of land in the City. E. SB 9 takes effect on January 1, 2022, and it is therefore necessary for the City to establish objective standards regarding the housing developments and lot splits that the City will now be required to permit, and to ensure that such regulations take effect prior to January 1, 2022, so as to protect and provide for the welfare of the local community. Section 3. CEQA. The City Council finds and determines that the proposed ordinance amendments are not a "project" for purposes of California Environmental Quality Act (CEQA) pursuant to Government Code Sections 65852.21(j) and 66411.7(n), and therefore do not require any environmental review under CEQA. Section 4. Chapter 16.40 (Urban Lot Splits) is hereby added to the Rancho Palos Verdes Municipal Code and shall read as follows (deletions in additions in bold italics): Chapter 16.40- URBAN LOT SPLITS 16.40.010 - Purpose. The purpose of this chapter is to establish procedures and standards for urban lot splits in accordance with the requirements of Government Code Section 66411.7. 16.40.020- Ministerial review;standard for denial. A. Notwithstanding any other provision of this code, an application for an urban lot split shall be considered ministerially, without discretionary review or a hearing, and shall be approved if it meets all of the requirements of this chapter. B. An application for an urban lot split shall be approved or denied by the director.111 01203.0002/756855 3 Ordinance No. 656U Page 2 of 13 C-2 C. Any interested person may appeal a decision of the director to the planning commission and a decision of the planning commission to the city council pursuant to Chapter 17.80 (Hearing Notice and Appeal Procedures). D. Notwithstanding subsection A, the city may deny an application for an urban lot split if the building official, or designee, makes a written finding, based upon a preponderance of the evidence, that the proposed urban lot split would have a specific, adverse impact, as defined in subsection (d)(2) of Government Code Section 65589.5, upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. 16.40.030 - Parcel requirements. The parcel that is proposed for subdivision through an urban lot split: A. Shall be located in an RS zoning district; B. Shall satisfy all the requirements of subsections (a)(6)(B) through (a)(6)(K), inclusive, of Government Code Section 65913.4; C. Shall not be located within a historic district or on property included on the State Historic Resources Inventory, as defined in Public Resources Code Section 5020.1, or within a site that is designated or listed as a city or county landmark or historic property or district pursuant to a city or county ordinance; D. Shall not have been created through a previous urban lot split; and E. Shall not be adjacent to a parcel that was previously subdivided through an urban lot split by the owner of the parcel on which the urban lot split is proposed or any person acting in concert with the owner. 16.40.040 - Additional requirements. A. An urban lot split shall subdivide an existing parcel to create no more than two new parcels of approximately equal lot area, provided that: 1. Neither resulting parcel shall be smaller than 40 percent 111 of the lot area of the current parcel proposed for subdivision; 01203.0002/756855.3 Ordinance No 656U Page 3 of 13 C-3 2. Neither resulting parcel shall be smaller than 1,200 square feet; and 3. No flag lots shall be created as a result of the lot split if the existing parcel is adjacent to an alley, or is a corner lot or through lot. B. An urban lot split shall not be approved unless, at the time the parcel map is recorded: 1. Each resulting parcel will have an existing residential dwelling on it, or 2.The applicant has obtained building permits to construct at least one dwelling on any resulting parcel that does not have an existing residential dwelling on it. C. An urban lot split shall not result in the creation of a parcel with more than two existing units, as defined in Section 16.40.060. D. An urban lot split shall not require or allow the demolition or alteration of any of the following types of housing: 1. Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. 2. Housing that is subject to any form of rent or price control through a public entity's valid exercise of its police power. 3. A parcel on which an owner of residential real property has exercised the owner's rights under Chapter 12. 75 commencing with Section 7060) of Division 7 of Title 1 to withdraw accommodations from rent or lease within 15 years before the date that the development proponent submits an application. 4. Housing that has been occupied by a tenant in the last three years. E. As a condition of approval for an urban lot split, the applicant and owner(if different from the applicant) shall sign an affidavit, in a form approved by the city attorney, stating that: 1.The proposed urban lot split will not violate the requirements of subsection D of this section; 01203.0002/756855.3 Ordinance No. 656U Page 4 of 13 C-4 111 2. Neither the owner nor applicant, nor any person acting in concert with the owner or applicant, has previously subdivided an adjacent parcel using an urban lot split; and 3.The applicant intends to occupy one of the housing units on one of the parcels created by the urban lot split as their primary residence for a minimum of three years from the date of the approval of the urban lot split. This means that the applicant will live in an existing unit on one of the parcels, if any, or will live in the first unit constructed on either of the parcels if there are no existing units. This subsection E.3 shall not apply to an applicant that is a "community land trust," as defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision a) of Section 402.1 of the Revenue and Taxation Code, or is a qualified nonprofit corporation"as described in Section 214.15 of the Revenue and Taxation Code. F. As a condition of approval of an urban lot split, the owner shall dedicate all easements over the resulting parcels required for the provision of public services and facilities, as determined by the city engineer. G. Each parcel resulting from an urban lot split shall have access to or adjoin the public right-of-way, and, if necessary, provide the other parcel with access to the right-of-way through an easement. H. The city shall not require as a condition of approval of an urban lot split: 1. Dedications of rights-of-way or the construction of offsite improvements, or 2.The correction of non-conforming zoning conditions existing on the parcel that will be divided. 1.An urban lot split: 1. Shall conform with all the requirements of the Subdivision Map Act; and 2. Shall conform with all the requirements applicable to parcel maps in this code, except for those requirements that conflict with the requirements of this chapter, in which case the provisions of this chapter shall control. 01203.0002/756855.3 Ordinance No 656U Page 5 of 13 C-5 16.40.050 - Limitations applicable to new parcels. A. Parcels created by an urban lot split shall only be used for residential uses. B. Residential units constructed on parcels created by an urban lot split shall not be rented for a term of less than thirty-one (31) consecutive days, also known as a short-term rental. 16.40.060- Limitation on number of units. Notwithstanding any other provision of this code, no more than two units are permitted on any parcel created by an urban lot split. For the purposes of this section, "unit" means any dwelling unit, including, but not limited to, a primary dwelling unit, a unit or units created under Chapter 17.09 (Second Units and Two-Unit Developments In Single- Family Zones), an accessory dwelling unit, or a junior accessory dwelling unit. 16.50.070— Coastal permit. Notwithstanding any other provision of this chapter, as a condition of approval of an application for an urban lot split, the applicant shall comply with the requirements of Chapter 17.72 (Coastal Permits) that would otherwise apply to an application for a parcel map." Section 5. Section 17.02.020 of the Rancho Palos Verdes Municipal Code shall be amended as follows (deletions in additions in bold italics): 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 accessory dwelling units and junior accessory dwelling units approved pursuant to Chapter 17.10 (Accessory Dwelling Unit and Junior Accessory Dwelling Unit Development Standards); B. Second units and two-unit developments approved pursuant to Chapter 17.09 (Second Units and Two-Unit Developments In Single- Family Zones); B: C. Home occupations pursuant to Chapter 17.08 (Home Occupations); 01203.0002/756855.3 Ordinance No 656U Page 6 of 13 C-6 G D. Private outdoor recreational uses, such as tennis courts, swimming pools and basketball courts, which are incidental to the residential use of the property; 07 E. Residential planned development (RPD), pursuant to Chapter 17.42 Residential Planned Development); ET F. 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 G. The keeping of large domestic animals, pursuant to Chapter 17.46 Equestrian Overlay (Q) District); G, H. 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 I. The growing of crops and/or fruits on one acre or less for noncommercial purposes; k J. Small family day care; K. Temporary special uses and developments, if a special use permit is first obtained, pursuant to Chapter 17.62 (Special Use Permits); K L. 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; h M. 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 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. Chapter 17.09 (Second Units and Two-Unit Developments in Single- Family Zones) is hereby added to the Rancho Palos Verdes Municipal Code and shall read as follows (deletions in additions in bold italics): 01203.0002/756855.3 Ordinance No 656U Page 7 of 13 C-7 Chapter 17.09 - SECOND UNITS AND TWO-UNIT DEVELOPMENTS IN SINGLE-FAMILY ZONES 17.09.010 - Purpose. The purpose of this chapter is to establish procedures and standards for the approval and creation of second units and two-unit developments in single-family zones in accordance with the requirements of Government Code Section 65852.21. 17.09.020 - Ministerial review; standard for denial. A. Notwithstanding any other provision of this code, an application for a second unit or a two-unit development shall be considered ministerially, without discretionary review or a hearing, and shall be approved if it meets all of the requirements of this chapter. B. An application for a second unit or a two-unit development shall be approved or denied by the director through the site plan review process in Chapter 17.70. C. Notwithstanding subsection A, the city may deny an application for a second unit or two-unit development if the building official, or designee, makes a written finding, based upon a preponderance of the evidence, that the proposed second unit or two-unit development would have a specific, adverse impact, as defined in subsection (d)(2) of Government Code Section 65589.5, upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. 17.09.030- Requirements. Proposed second units and two-unit developments: A. Shall be located in the RS zoning district; B. Shall be located on a parcel that meets all the requirements of subsections (a)(6)(B) through (A)(6)(K), inclusive, of Government Code Section 65913.4; C. Shall not require or allow the demolition or alteration of any of the following types of housing: I 01203 0002/756855.3 Ordinance No 656U Page 8 of 13 C-8 1. Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income; 2. Housing that is subject to any form of rent or price control through a public entity's valid exercise of its police power; or 3. Housing that has been occupied by a tenant in the last three years; D. Shall not require or allow the demolition of more than 25 percent of the existing exterior structure walls on the parcel if the parcel has been occupied by a tenant in the last three years; E. Shall not be located on a parcel on which an owner of residential real property has exercised the owner's rights under Chapter 12.75 commencing with Section 7060) of Division 7 of Title 1 to withdraw accommodations from rent or lease within 15 years before the date that the development proponent submits an application; F. Shall not be located within a historic district or on property included on the State Historic Resources Inventory, as defined in Public Resources Code Section 5020.1, or within a site that is designated or listed as a city or county landmark or historic property or district pursuant to a city or county ordinance; and G. Shall each have a separate entrance. 17.09.040 - Development standards. A second unit, and both of the units in a two-unit development, shall comply with all of the following development standards: A. Configuration. A second unit, and both units of a two-unit development, may be attached to, adjacent to, or detached from any other structure on the parcel, subject to subsections C and D of Section 17.09.030, provided that adjacent or attached units shall be sufficiently constructed to allow for separate conveyance. B. Size. A second unit, and both of the units in a two-unit development, shall be no larger than 800 square feet in floor area each. C. Height. A second unit, and both of the units in a two-unit development, shall be no taller than 16 feet in height as measured from adjacent pre-construction grade and shall be one-story. 01203.0002/756855.3 Ordinance No. 656U Page 9 of 13 C-9 D. Setbacks. No setback beyond the existing setback shall be required for an existing structure or for a unit constructed in the same location and to the same dimensions as an existing structure. In all other circumstances, second units, and both units of a two-unit development, shall be set back at least 4 feet from the side and rear lot lines. E. Parking. 1. One off-street parking space is required for a second unit and oneoff-street parking space per unit is required for each unit of a two-unit development. 2. Notwithstanding subsection E.1, no parking spaces are required for a second unit or a two-unit development if either: a.The parcel is located within one-half mile walking distance of either a high-quality transit corridor, as defined in subsection (b) of Public Resources Code Section 21155, or a major transit stop, as defined in Public Resources Code Section 21064.3; or b. There is a car share vehicle located within one block of the parcel. F. Additional Development Standards. Except as provided in subsections A through E, second units, and each unit of a two-unit development, shall comply with all development standards that would be applicable to a primary dwelling unit on the same parcel. G. Limitation on Enforcement of Development Standards. With the exceptions of the setback requirements in subsection D and the requirement to comply with all building codes, the city shall not enforce any development standard to the extent that it would have the effect of physically precluding the construction of a second unit or two-unit development on a parcel, or would physically preclude either the primary dwelling unit or seconds unit from being at least 800 square feet in floor area. 17.09.050- Design standards. Second units, and each unit of a two-unit development, shall comply with all objective design standards that would be applicable to a primary dwelling unit on the same parcel. 17.09.060- Rental term. 01203.0002/756855.3 Ordinance No 656U Page 10 of 13 C-10 Second units and the units in a two-unit development shall not be rented for a term of less than thirty-one (31) consecutive days. 17.09.070 -Affordable rent requirement. Second units, and both units of a two-unit development, if rented, shall only be rented at an affordable rent for lower-income households, as defined in Health and Safety Code Section 50053, and shall only be rented to lower-income households, as defined in Health and Safety Code Section 50079.5, for a minimum of 55 years. Prior to the issuance of a certificate of occupancy for any second unit or any unit of a two-unit development, the owner of the property shall execute and record on the property a deed restriction, in a form approved by the director and the city attorney, establishing legal restrictions consistent with this Section. 17.09.080 - Coastal permit. Notwithstanding any other provision of this chapter, as a condition of approval of an application for a second unit or two-unit development, the applicant shall comply with the requirements of Chapter 17.72 Coastal Permits)." Section 7. Section 17.96.578 (Development, two-unit) is hereby added to the Rancho Palos Verdes Municipal Code, and shall read as follows (deletions in bold strikethrough; additions in bold italics): 17.96.578 - Development, two-unit. Two-unit development" means the construction of two new residential dwelling units, other than an accessory dwelling unit or junior accessory dwelling unit, on a single parcel where either(i) there are no existing residential dwelling units other than an accessory dwelling unit or(ii) all existing residential dwelling units other than an accessory dwelling unit will be demolished prior to construction of the two new residential dwelling units." Section 8. Section 17.96.2155 (Unit, second) is hereby added to the Rancho Palos Verdes Municipal Code and shall read as follows (deletions in additions in bold italics): 17.96.2155- Unit, second. Second unit" means a residential dwelling unit, other than an accessory dwelling unit or junior accessory dwelling unit, added to a property with an existing primary dwelling unit, either by (i) the construction of a new residential dwelling unit, (ii) the conversion of 01203 0002/756855.3 Ordinance No. 656U Page 11 of 13 C-11 an existing structure into a residential dwelling unit, (iii) the bifurcation of an existing residential dwelling unit into two separate residential dwelling units, or(iv) the use of another means other than the construction of a two-unit development." Section 9. Section 17.96.2170 (Urban lot split) is hereby added to the Rancho Palos Verdes Municipal Code and shall read as follows (deletions in additions in bold italics): 17.96.2170- Urban lot split. Urban lot split"means the division of one parcel into two parcels as authorized by Government Code Section 66411.7 and complying with the provisions of Chapter 16.40." Section 10. Severability. If any provision(s) of this Ordinance or the application thereof to any person or circumstances is held invalid or unconstitutional by any court of competent jurisdiction, such invalidity or unconstitutionality shall not affect any other provision or application, and to this end the provisions of this ordinance are declared to be severable. The City Council hereby declares that they would have adopted this ordinance and each section, subsection, sentence, clause, phrase, part or portion thereof, irrespective of the fact that any one or more sections, subsections, clauses, phrases, parts or portions thereof be declared invalid or unconstitutional. Section 11. Posting. The City Clerk shall certify to the passage and adoption of this Ordinance by the City Council and shall cause a this ordinance to be published or posted in accordance with Government Code section 36933 as required by law. Section 12. Effective Date. Pursuant to Government Code section 36937, this Urgency Ordinance shall take effective immediately upon approval of the same by a four- fifths (4/5) affirmative vote of the City Council. 01203.0002/756855.3 Ordinance No. 656U Page 12 of 13 C-12 PASSED, APPROVED and ADOPTED by a 4/5th vote of the, entire City Council this 21St day of December, 2021. P -- David L. Bradley, A -yor ATTEST: eresa akaoka, City Clerk STATE OF CALIFORNIA COUNTY OF LOS ANGELES CITY OF RANCHO PALOS VERDES I, TERESA TAKAOKA, 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. 656U was duly and regularly adopted by the City Council of said City at a regular meeting thereof held on December 21, 2021, and that the same was passed and adopted by the following roll call vote: AYES: Alegria, Cruikshank, Dyda, Ferraro and Mayor Bradley NOES: None ABSENT: None ABSTAIN: None City Clerk 01203 0002/756855.3 Ordinance No 656U Page 13 of 13 C-13 i ,ugt t a tol t 440.0 tS C ITY OF RANCHO PALOS VERDES STATE OF CALIFORNIA COUNTY OF LOS ANGELES SS AFFIDAVIT OF POSTING CITY OF RANCHO PALOS VERDES) The undersigned, being first duly sworn, deposes and says: That at all times herein mentioned, she was and now is the City Clerk of the City of Rancho Palos Verdes; That on December 22, 2021, she caused to be posted the following document entitled: ORDINANCE NO. 656U, AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, AMENDING TITLE 16 (SUBDIVISION) BY ADDING SECTION 16.40 (URBAN LOT SPLITS), AMENDING TITLE 17 ZONING)OF SECTION 17.02.020(SINGLE FAMILY RESIDENTIAL RS)) DISTRICTS — USES AND DEVELOPMENT PERMITTED), ADDING CHAPTER 17.09 (SECOND UNITS AND TWO-UNIT DEVELOPMENTS IN SINGLE-FAMILY ZONES), AND AMENDING CHAPTER 17.96 (DEFINITIONS) OF THE RANCHO PALOS VERDES MUNICIPAL CODE THEREBY ESTABLISHING DEFINITIONS AND REGULATIONS FOR URBAN LOT SPLITS AND TWO-UNIT DEVELOPMENTS IN SINGLE-FAMILY RESIDENTIAL ZONES, a copy of which is attached hereto, in the following locations: City Hall Ladera Linda Community Center 30940 Hawthorne Blvd. 32201 Forrestal Drive Rancho Palos Verdes Rancho Palos Verdes Hesse Park 29301 Hawthorne Blvd. Rancho Palos Verdes I certify under penalty of perjury that the foregoing is a true and correct affidavit of posting. gillarCity Clerk C-14 8/4/2022 To: RPV Mayor and City Council Members Subject: Proposed Amendments to RPV Municipal Code Regarding SB 9 Developments Honorable Mayor and Council Members, The CHOA Board of Directors offers the following comments regarding proposed amendments to the RPV municipal code covering SB 9 developments. Amendments to that code are scheduled to be considered at the August 16th Council meeting. First, we greatly appreciate the time and effort the Planning Commission has put into developing thoughtful recommendations for your consideration, and we support those recommendations. We would appreciate Council consideration of two additional amendments that were not included in the Planning Commission’s recommendation: • The Municipal Code should require that City Staff, upon receipt of an SB 9 application, send a courtesy notice to the HOA in the community where the development is proposed. We recognize that the City will not be able to solicit or take into consideration any comments from an affected HOA or its residents regarding the development. However, many RPV neighborhoods have governing CC&Rs that allow only development of single-family residences and prohibit subdivision of lots and/or construction of more than 1 home on a single lot. Notification of SB 9 applications would provide awareness and enable HOAs to initiate possible civil actions to stop prohibited development before it is started. We recognize that taking such action would be an exception to Staff’s current notification policy which does not include HOA notification for applications subject to ministerial approval. However, SB 9 developments have the potential to adversely affect the character of neighborhoods of single-family homes to such a significant degree that they warrant treatment as a separate category of development with its own notification process. • The Code should also include provisions to address the potential impact of increased parking and traffic in neighborhoods within very high fire hazard severity zones with limited egress in case of emergency evacuations. We request further review of this issue and development of appropriate regulations for future consideration. Thank you for your consideration of our comments. Respectfully submitted, The CHOA Board of Directors: Dave Emenhiser, President Krista Johnson, Recording Secretary Jeff Richards, Treasurer Anthony Todora Art Emon Jack Pharris Kathy Edgerton John Maniatakis, President Emeritus D-1