Memorandum. Kenneth Johnstone, Community Development Director. November 25, 2015 (for December 3 Study Session)

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1 Memorandum TO: THROUGH: FROM: DATE: SUBJECT: Planning Commission Kenneth Johnstone, Community Development Director Lisa Ritchie, Planner II November 25, 2015 (for December 3 Study Session) Accessory Dwelling Units ISSUE: Under direction from City Council, community development staff is undertaking a study of considerations to be included in a potential ordinance to permit accessory dwelling units. An accessory dwelling unit (ADU) is a self-contained, smaller living unit on the lot, typically, of a single-family home. An ADU is differentiated from a duplex, or a lot with two units, through more restrictive standards for size, location on the lot, ownership and occupancy. The City currently prohibits the use of an accessory building as a dwelling unit under Sec For comparison, many jurisdictions in the Denver metropolitan area currently permit accessory dwelling units (ADU) either by-right or through special review. There are three common types of ADUs: An Attached ADU is a living space that is added on to an existing dwelling. Attached ADU located at the rear of the primary structure. The entrance is located at the side or rear of the primary residence.

2 A Detached ADU is structurally separate from the primary dwelling. Detached ADU located at the rear or side of the property, or sometimes on top of a garage. An Interior ADU is located within the primary dwelling, commonly built through conversion of existing space, such as a basement or attic. Interior ADU located within the primary structure. A separate entrance is typically located at the side or rear of the primary residence. PRIOR DISCUSSION: In 2001, this issue was discussed during a City Council Study Session. At that time, most neighboring jurisdictions also did not permit them, and a stay the course decision was made. Over time, many of these neighboring jurisdictions adopted ADU Ordinances and now allow them. More recently in Wheat Ridge, as part of the City Council commissioned Housing Diversification Strategy study that was undertaken in 2013 and 2014, a recommendation was made to allow ADUs, under a potential pilot program. On March 2, 2015, the Community Development Director discussed proposed zoning code amendments with City Council, including ADUs. On November 23, 2015, a discussion was held with City Council seeking initial feedback on whether or not advancing the discussion was supported. Council was presented an overview of ADUs and related development standards, and they expressed support for continuing the discussion. OVERVIEW OF NEXT STEPS: City Council directed staff to bring this issue before the Planning Commission to develop 2

3 a preliminary scope for a potential ordinance, and then conduct one or more public meetings, along with a survey, to solicit feedback from Wheat Ridge residents. In addition, staff will work to seek input from affected agencies, including water, sanitation and emergency services. FINANCIAL IMPACT: No direct impact. BACKGROUND: Staff provides the following as an initial examination of whether ADUs are appropriate in Wheat Ridge, what the impacts could be, what the standards should be, and how to permit and regulate them. There are numerous possible benefits to a household that could be realized by permitting ADUs. These include the provision of additional income to a household by renting the ADU, providing housing for aging family members or young adult children as they are entering the workforce, or providing the option for an aging person to remain on their property by renting out the primary residence. Benefits to the City as a whole may be realized from financial investment in properties, attracting new home buyers to the City, and the ability to retain current aging residents. ADUs are an efficient way to accomplish in-fill development and provide additional housing options with a lower cost and quicker permitting process without dramatically impacting the character of existing neighborhoods. Any new ordinance should consider what impacts may be associated with ADUs and provide regulations and processes that respond to the public s input, council direction and staff research findings. Most neighboring jurisdictions allow ADUs, including Arvada, Lakewood, Golden, Jefferson County, and Denver, as well as other regional communities, including Boulder, Aurora, Longmont, Loveland and Fort Collins. Likelihood of ADUs in Wheat Ridge Within the City of Wheat Ridge, there are conditions which may result in the construction of ADUs. These include rising home costs, an aging community and local and regional growth. It is worthwhile to note that staff receives inquiries regarding the ability to construct ADUs on a roughly weekly basis. Affordability Over the past 12 months, the median home price in Wheat Ridge has increased 14.2% to $312,400 in August This also represents a 47% increase from August 2010, when the median price was $213,000. (Zillow, 10/16/2015) Aging Community Within the City of Wheat Ridge, demographic indicators reveal an aging population and decreasing household size over the past decade Census Wheat Ridge Average HH size

4 2000 Census Wheat Ridge Average HH size Census Wheat Ridge Median Age Census Wheat Ridge Median Age Census Wheat Ridge Living Alone 38.4% 2000 Census Wheat Ridge Living Alone 35.4% Community and Regional Growth Colorado Department of Local Affairs forecasts that the State of Colorado will grow in population by over 2.2 million residents between 2015 and Jefferson County is predicted to grow at rates less than the state as a whole, while Denver County is predicted to grow at higher rates. Long ranges plans for Wheat Ridge discuss the need for improvements to existing housing stock rather than accommodating large amounts of growth from new housing. The contemplation of an ADU often occurs when a homeowner is undertaking other improvements on the property or when a potential buyer is considering the initial purchase of the property. Older residents pursue the idea when the caretaking of a large home becomes burdensome; however they continue to desire to remain on the property. These triggers will likely occur in Wheat Ridge now and in the future as existing properties and the population continues to age. Anecdotal evidence from other jurisdictions reveals that most communities experience less ADU demand than what was anticipated. Challenges arise in the appraisal and finance process. Some communities find that their municipal regulations include unforeseen barriers for ADU development, such as regulations regarding parking or minimum lot size requirements. Consideration of potential obstacles should be given when determining ADU regulations. Analysis by some researchers reveals that although some communities permit ADUs, their regulations are so restrictive that ADUs are effectively undevelopable. Other Housing Issues During a discussion of ADUs, the subject of Tiny Houses may arise. At this time, City Council is not directing staff to pursue efforts related to this issue, but a brief discussion is provided for understanding of how Tiny Houses relate to ADUs. Tiny Houses Tiny House is a term associated with a movement that advocates living simply in a small home. The average size of these homes are sq ft,. The homes in the smaller range are commonly on wheels and can be transported from place to place. Homes throughout the range can also be on foundations and have more permanent components for utilities and features. The motivation to live in a tiny home is commonly financial, environmental and a desire to live modestly. Within the City of Wheat Ridge, all new residential single family dwellings must comply with the 2012 International Building Code. It is possible to permit a tiny house under the code, if the plans comply with minimum habitable room size, horizontal dimension requirements, and bathroom and kitchen requirements and is constructed on a permanent foundation. The City has 4

5 no minimum standard for dwelling size in residential zone districts. In Sec discussing residential uses in commercial zones, a 500 sq ft minimum size is required. With regards to tiny homes on wheels, these fall under regulations for RVs and are licensed through the DMV, constructed to RV standards and should comply with zoning requirements for locations permitted, and generally are not allowed to be occupied within the City. Within the ADU discussion, questions regarding Tiny Houses may arise. A Tiny House could be an ADU, or it could be a primary residence. Given the growth of the movement, thought should be given to any ADU standards with regard to Tiny Houses to differentiate them. A minimum size standard for ADUs of roughly 400 sq ft should be adequate to prevent the construction of a Tiny House. RECOMMENDATIONS: Staff recommends that the following topics be included in any potential ADU regulations and processes. A brief discussion and examples of options are provided below: Architecture Compatibility with the primary residence on the property is a common requirement for an ADU. Regulations may include provisions for: 1. Entrances: It is common for regulations to discuss minimizing a second entrance from view at the street frontage, or prohibit an entrance along the front of the property. Other jurisdictions require entries to be made from alleys. As Wheat Ridge has a limited number of properties that are on an alley, this restriction seems unnecessary. It is also common to see a requirement that the entry shall not be visible from the street frontage, so as to appear as only a single family home. This may become a problem for emergency services not recognizing a separate dwelling unit if the entry area is concealed from the street. 2. Windows: A small number of regulations require that windows of a new ADU not infringe on neighbors privacy. Exactly how to enforce this may be difficult as this is a matter of opinion and it may not be possible to determine until construction or renovation is near completion. So long as the ADU complies with the primary use setbacks, this regulation seems problematic. 3. Roof Pitch: It is common that regulations require the same, or visually similar, roof pitch on an ADU as the predominant pitch of the primary residence. 4. Eaves: Similar to roof pitch, an ADU is commonly required to have the same, or visually similar, eave design. 5. Building Materials: The exterior materials, including siding, masonry, and windows, are typically required to be the same or visually compatible with the primary residence. Size By definition, the term Accessory Dwelling Unit requires that it be incidental and subordinate to the primary use and structure. In order to accomplish this, it is common to have size restrictions on ADUs. There are generally two ways to accomplish this, either a range of allowed sizes, such as 400 sf to 850 sf, or a percentage of the primary use, such as 50% of the primary, or 1,000 sf, whichever is less. The size restriction should be compatible with any other restrictions on ADU development, such as occupancy, relationship to primary, zoning etc. If these restrictions aren t 5

6 compatible, the full possibility may not be realized. During the November 23, 2015 City Council discussion, a comment that the permitted range be between 400 and 800 square feet was offered. Parking The requirement of one (or more) off-street parking spot is common. It should be noted that this requirement can prevent ADUs from being developed in certain areas and many organizations that promote ADUs recommend that this restriction not be put in place. However, as with other types of developments, this is one of the primary concerns of existing residents. Studies have shown that in most cases, the provision of parking isn t necessary and ADUs have minimal to no impact on availability of on-street parking in neighborhoods. Staff suggests developing parking standards that would require the provision of an off-street parking space for an ADU under certain conditions, such as if there is no on-street parking available due to unique circumstances in the adjacent street condition, or if the primary residence does not meet the off-street parking requirements. Density Certain communities, due to concerns over density and parking impacts, regulate how many ADUs can be constructed in a given area and/or regulate how many occupants may live there. Neighborhood caps Some communities restrict the number of permitted ADUs by neighborhood or by radius. Examples include: 1. No ADU may be nearer than 500 feet of another ADU 2. No more than 10% of the parcels in a neighborhood area may contain an ADU. Neighborhood area is determined by a radius, such as 300 or 600 feet of the perimeter or the lot proposed. 3. The total of ADUs permitted in one year cannot exceed more than 1% of total number of dwelling units within the city. Occupancy Limits Some regulations include limits on the number of occupants, such as no more than 2 occupants, or no more than 1 for every 200 sf or no more than 2 unrelated. If occupancy restrictions are put in place, they should relate to the total size allowed or the regulations may be restricting them more than intended. During the November 23, 2015 City Council session, a comment to consider an occupancy cap of two was offered. Zoning Regulations typically include ADU development standards for all permitted zone districts. They can be crafted to reflect conditions of each zone district, or can be the same for all zone districts. Zone Districts Permitted Given the context in Wheat Ridge, staff suggests permitting ADUs in all residential and agricultural zone districts, so long as the primary use is a single family home. Consideration could also be given whether or not ADUs will be permitted on lots that already have more than one unit. 6

7 Setbacks, Location Regulations typically include location requirements on the lot that are equal to the primary structure s for side and rear setbacks and are equal to or further inward than front yard setbacks for the primary structure. The intent is that the ADU appears incidental to the primary residence. Minimum Lot Size Similar to the City s requirements for minimum lot size to allow two or more dwellings in R2 and R3 zones, most jurisdictions have a minimum lot size to add an ADU. For jurisdictions with the requirement, common ranges for lot size are between 5,000 and 9,000 sq ft minimum. Staff believes high minimum lot size is a barrier to ADU development and believes that the maximum building coverage regulations will provide appropriate massing restrictions. In Wheat Ridge, R1 zoned parcels (approx. 3,300 parcels), when removing parcels greater than 1 acre and random smaller parcels, have a median lot size of roughly 12,000 ft In R2 and R3 zoned parcels (approx. 5,500 parcels), the median parcel size is also roughly 12,000 although the range of parcel size is much greater due to smaller condominium lots and larger multi-family parcels. Maximum Building Coverage As noted above, staff believes that massing of buildings on lots could be appropriately regulated through the maximum building coverage standards for each zone district. For example, all structures combined footprints cannot exceed 40% lot coverage in the Residential-Two zone district. Owner Occupancy It is common to find restrictions on ownership for ADU occupancy. Most regulations require the owner to occupy either the primary dwelling or ADU. Given the City adopted plans and supported documents that encourage owner occupancy, staff supports this requirement. Deed Restriction or Covenant In order to ensure that the owner is an occupant, many jurisdictions required that a deed restriction or covenant be recorded. Ongoing Registration In order to ensure that the ADU continues to be used as permitted, including owner occupancy and occupancy limits, some communities include an annual renewal or permitting process. Staff will research this issue and provide additional information at a later date. Services and Fees In order to permit ADUs, there are common fees associated with their applications and construction. If the discussion to permit ADU advances, staff will work to understand what may be an appropriate fee structure. Permit Fees As part of the permit application, a fee is typically associated for its review. These fees should be in line with other fees for Land Use applications, and should not be arbitrarily high as to prohibit the application. 7

8 Utilities and Services Wheat Ridge is not a full service city; therefore will not have the ability to completely determine the requirements for these provisions. It is more common to see jurisdictions prohibit separate utilities to an ADU as an effort to ensure the unit is lot is never subdivided or condominiumized. Staff will begin a dialogue with providers over the next few months to gain understanding of how these issues will be approached. Process There are two common ways in which jurisdictions approve an ADU. Some jurisdictions do so under their zoning regulations as a by-right use. All required standards are defined, and an application that complies shall be allowed in all instances, similar to a sign permit. Some require a special or limited use land use application for all applications in order to ensure that all context considerations are met and/or to allow public review of each application. Generally, all jurisdictions have an application form specifically for an ADU, and have supplementary materials which describe the process and standards. Some jurisdictions require a pre-application meeting as well. Staff recommends crafting clearly defined standards for a by-right use. ATTACHMENTS: Table of Comparison Community Regulations 8