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CC SR 20221004 F - SB 9 Ordinance 663 2nd Reading CITY COUNCIL MEETING DATE: 10/04/2022 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consideration and possible action to adopt Ordinance No. 663 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 unit and two-unit developments in single- family residential zones (Case No. PLCA2022-0001). RECOMMENDED COUNCIL ACTION: (1) Adopt Ordinance No.663, 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. Ordinance No. 663 (page A-1) To view the September 20, 2022, City Council staff report, click on the following link: https://rpv.granicus.com/MetaViewer.php?view_id=5&clip_id=4232&meta_id=106997 BACKGROUND AND DISCUSSION: On September 20, 2022, Ordinance No. 663 (Attachment A) was presented to the City Council for its first reading. This Ordinance amends Chapter 16.40 (Urban Lot Splits), Chapter 17.09 (Second Units and Two-Unit Developments in Single-Family Zones) and 1 RANCHO PALOS VERDES Chapter 17.96 (Definitions) of the Rancho Palos Verdes Municipal Code regarding urban lot splits, and second unit and two-unit developments in single-family residential zones. It should be noted that as part of the ordinance’s introduction, the City Council agreed to remove the then-numbered Section 17.09.060 (Development in Very High Fire Hazard Severity Zone) for the time being to allow Staff additional time to propose objective standards for project sites without two distinct means of access. As a result, the remaining sections in Chapter 17.09 have been re-numbered accordingly. This evening, Ordinance No. 663 is presented for its second reading and adoption. This Ordinance will go into effect on November 4, 2022. ALTERNATIVES: In addition to the Staff recommendation, the following alternative action is available for the City Council’s consideration: 1. Direct Staff to revise Ordinance No. 663 for re-introduction and/or second reading at a future City Council meeting. 2 ORDINANCE NO. 663 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 Ordinance No. 663 Page 2 of 13 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 continued the public hearing to September 20, 2022; and WHEREAS, on September 20, 2022, the City Council conducted a continued 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 (Subdivision) and Title 17 (Zoning) 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 (Subdivision) and Title 17 (Zoning) 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. A-2 Ordinance No. 663 Page 3 of 13 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 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 and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. F. Upon application approval of an urban lot split, 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, including local Homeowner's Associations, if one exists and is known by the City. Such notice shall not be a requirement of the applicant for the purposes of deeming an application complete for processing. 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 A-3 Ordinance No. 663 Page 4 of 13 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. 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 mode rate, 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; A-4 Ordinance No. 663 Page 5 of 13 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 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 per lot. Review and approval by the Public Works Department shall be required, as a condition of approval, prior to creation of a driveway approach or other encroachment 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. A-5 Ordinance No. 663 Page 6 of 13 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. 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) 17.09.020 - 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 c hapter. 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 (Site Plan Review). 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 A-6 Ordinance No. 663 Page 7 of 13 (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. D. Upon application approval 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, including local Homeowner's Associations, if one exists and is known by the City. Such notice shall not be a requirement of the applicant for the purposes of deeming an application complete for processing. 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 enti ty'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 h as 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-7 Ordinance No. 663 Page 8 of 13 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 sq uare 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. 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. A-8 Ordinance No. 663 Page 9 of 13 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, not more than one driveway approach or other encroachment shall be allowed unless the Public Works Director determines that more than one driveway approach or other encroachment 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 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 A-9 Ordinance No. 663 Page 10 of 13 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; use limitations. 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” means a dwelling unit other than an accessory dwelling unit or junior accessory dwelling unit. C. Second units and both units in a two-unit development shall not have a primary use other than a residential dwelling. 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 no more than an affordable rent for lowermoderate-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, persons or families of low A-10 Ordinance No. 663 Page 11 of 13 or moderate income, as defined in Health and Safet y Code Section 50093, 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 pr operty a deed restriction, in a form approved by the director and the city attorney, establishing legal restrictions consistent with this section. B. In lieu of subsection A, the owner may opt to provide an affordable unit off-site within the City, 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 affordable unit may be provided either through the construction of a new unit, the conversion of an existing non-habitable structure to a habitable structure, or the conversion of an existing market-rate unit to an affordable unit. The offsite unit shall be subject to the same affordability restrictions that would otherwise be applicable to the affordable unit under subsection A, including, but not limited to, the execution and recordation of a deed restriction. The offsite unit shall have at least the same square footage and number of bedrooms as the second unit or the smaller of the two units in the two -unit development. 17.09.080 – Coastal permit 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. 17.09.090 - 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). 17.09.100 - 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 A-11 Ordinance No. 663 Page 12 of 13 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. 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 further certify to the adoption and posting of this Ordinance, and shall cause this Ordinance and its certification, together with proof of posting, to be entered in the Book of Ordinances of the Council of this City of Rancho Palos Verdes. Section 8. Effective Date. This Ordinance shall go into effect on the 31st day after its passage. A-12 Ordinance No. 663 Page 13 of 13 PASSED, APPROVED AND ADOPTED this 4th day of October, 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 whole number of members of the City Council of said City is five; that the foregoing Ordinance No. 663 passed first reading on September 20, 2022, was duly adopted by the City Council of said City at a regular meeting thereof held on October 4, 2022, 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 ______________________ Teresa Takaoka, City Clerk A-13