STAFF REPORT. Yin Smith, Director of Planning and Building. Accessory Dwelling Unit Regulations

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TO: FROM: SUBJECT: STAFF REPORT Planning Cmmissin Jl/' Yin Smith, Directr f Planning and Building Accessry Dwelling Unit Regulatins DATE: Nvember 15,2016 Planning Cmmissin Actins: 2 I. Find that the prpsed mdificatins t Chapter 20.90, Accessry Dwelling Units 3 are exempt frm the requirements f the Califrnia Envirnmental Quality Act 4 ("CEQA"), pursuant t CEQA Guidelines Sectin 15282(h) which exempts the 5 adptin f an rdinance regarding secnd units in a single-family r multifamily 6 residential zne. 7 2. Apprve Planning Cmmissin Reslutin (ATIACHMENT I) supprting 8 Zning Ordinance Amendments t Chapter 20.90, Accessry Dwelling Units. 9 Legislative Backgrund/Reasn fr Ordinance Amendments: I 0 Currently, the Califrnia State Gvernment Cde includes restrictins n lcal regulatin II f secnd units. The current Gvernment Cde allws cities t adpt an rdinance that 12 impses certain standards fr secnd units and it requires cities t ministerially prcess 13 secnd unit applicatins based n the state standards set frth in the existing statute. 14 Gvernr Brwn recently signed legislatin amending the Gvernment Cde t further 15 restrict lcal regulatin f "Accessry Dwelling Units" (previusly referred t "secnd 16 units" and/r "granny units"). This legislatin, a cmbinatin f an Assembly Bill (AB 17 2299) and a Senate Bill (SB 1069), ges int effect n January I, 2017 placing additinal 18 limitatins n a city's regulatry pwers ver Accessry Dwelling Units (ADO's). 19 Included in this recently signed legislatin is a limited amunt f flexibility fr cities t 20 tailr certain regulatins related t ADU' s; and, the time line t adpt any new 21 regulatins requires actin by the end f2016. Discussed belw are sme f the 22 highlights f the State-mandated changes as well as sme areas f discussin the 23 Cmmissin can cnsider. 24

25 26 27 28 29 30 31 ") _,_ 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 Nvember 15, 2015 Planning Cmmissin Hearing Accessry Dwelling Unit Regulatins New Legislatin Highlights As nted abve, the new State legislatin regulating ADU's allws fr sme lcal flexibility and prvides certain mandatry requirements that further limit lcal flexibility. By way f summary, the lcal ADU Ordinance must cmply with the fllwing regulatins: I. Lcatin: Designate areas where ADU's may be permitted, whether by bjective criteria r specified area. Althugh this sectin might indicate an ability t limit ADU's t certain areas within a cmmunity, later language states that ADU's are a permitted use n a lt zned single-family residential. The prpsed Ordinance language includes all Single Family Residential Districts, cnsistent with ur interpretatin f the legislatin. 2. Minimal Setbacks: Fr an ADU cnverted frm an existing garage r accessry building, the City may nt require any setback (beynd what wuld be required by lcal building and fire cdes). Fre an ADU abve a garage, n setback greater than five feet frm the side r rear prperty lines maybe required. The prpsed Ordinance language includes the minimum setback requirement f 5-feetfr an ADU abve a garage and language stating n setbacks are required except that which is required by building and fire cdes. 3. ADU Parking Requirements: Require n mre than ne space per bedrm. Tandem parking n an existing driveway and parking in setback areas must be allwed t satisfy the ne-space per bedrm requirement unless the city makes specific findings that it is either (i) nt feasible based upn specific site r reginal tpgraphical r fire r life safety cnditins; r, (ii) nt permitted anywhere else in the city. The prpsed Ordinance language includes these new parking restrictins. 4. N Parking Required fr Certain ADU's: A city cannt require parking fr an ADU that is: :- Lcated within ne-half mile f public transit (map attached);,. Lcated within an architecturally and histrically significant district;,. Part f the existing primary residences r an existing access structure including basement and garage cnversins; :.. Lcated within ne blck f a car share vehicle; r,,_ Lcated within an area where the city requires n-street parking permits but des nt ffer the permits t the ADU ccupant. 59 The prpsed Ordinance language includes these new parking restrictins. 60 5. Replacement Parking: If a city requires ff-street parking spaces t be replaced 61 after a garage, carprt, r cvered parking structure is demlished t 62 accmmdate an ADU, the replacement spaces may be lcated in any 63 cnfiguratin including with setbacks. This includes cvered spaces, uncvered 64 spaces, tandem spaces, r even vertical spaces with a mechanical parking lift. 2

Nvember 15,2015 Planning Cmmissin Hearing Accessry Dwelling Unit Regulatins 65 The prpsed Ordinance language includes these new parking restrictins. 66 6. Owner-Occupant and Rental Term: Althugh nt required by the new legislatin, 67 a City may require the ADU applicant t be an wner-ccupant; allwing the 68 wner t ccupy either the primary residence r the ADU. A city may als 69 require the ADU t be used fr rentals f terms n shrter than 30 cnsecutive 70 days. 71 The prpsed Ordinance includes the Owner-Occupant requirement as well as 72 the requirement that rentals are nt permitted fr less than 30 cnsecutive days. 73 Discussin 74 Because f the legislatin's limitatins placed n a City's ability t further regulate 75 ADO's, ne area f discussin and cnsideratin is with the Flr Area Exemptin 76 currently prvide ADO's. Staff has included a mdificatin t the current exemptin s 77 that a garage r accessry structure cnversatin wuld nt be eligible fr a Flr Area 78 Exemptin. The new language is shwn belw in underline, with the balance f the 79 exemptin sectin remaining the same. 80 C. Accessry Dwelling Unit Flr Area Exemptin. The fllwing Flr Area 81 Exemptins apply nlv t the creatin f a new Accessry Dwelling Unit where 82 an existing Garage r Accessrv Building is nt cnverted Lt Area FAR Exemptin Less than 5,000 square feet N exemptin: Accessry Dwelling Units nt permitted 5,001 t 8,000 square feet N exemptin 8,001 t 10,000 square feet Up t 800 square feet cmbined garage and Accessry Dwelling Unit area (See Sectin 20.16.040(A)(1)(b)(ii)) Mre than 10,000 square feet Up t 1,000 square feet cmbined garage and Accessry Dwelling Unit area (See Sectin 20.16.040(A)(1)(b)(iii)) 83 84 Given the new parking regulatins that allw n parking fr areas within a Y:. mile f 85 transit and fr thse prjects that cnvert existing building space, it can be assumed that a 86 large number f ADU prjects will nt require an additinal parking space. As such, the 87 cmmissin may wish t cnsider eliminating r mdifying the Flr Area exemptin. 88 It shuld be nted that the Flr Area exemptin has been a lng-standing incentive t 89 create small-scale, flexible, affrdable husing stck within the City thrugh Secnd 90 Units r AD Us. AD Us ffer several benefits fr hme wners, as well as the City, 91 including: 92 1. AD Us typically rent fr Jess than apartments f cmparable size, and can 93 ffer affrdable rental ptins fr senirs and single persns. 94 2. Primary hmewner receives supplementary incme by renting ut the ADU, 95 which can help many mdest incme and elderly hmewners affrd t 96 remain in their hmes. 3

Nvember 15,2015 Planning Cmmissin Hearing Accessry Dwelling Unit Regulatins 97 3. AD Us allw fr flexible husing within a single-family hme. Fr instance, 98 an ADU may transitin with a family- with the ADU husing a child care 99 prvider/nanny; children returning frm cllege; and aging parents r wners. I 00 4. Allwing fr increased husing stck while maintaining the City's small 101 twn feel. As part f State law, the City f Mill Valley is required t identify 102 areas that can accmmdate new husing, and mnitrs the City's prgress. 103 In recent years, the City has averaged 8 new ADUs per year. As part f the 104 Husing Element, there is an implementing prgram related t secnd units, I 05 which indicates that the City will seek t facilitate creatin an average f I 06 eight secnd units n an annual basis. I 07 108 109 110 111 112 113 114 115 116 117 118 119 Sme additinal thughts abut eliminating the Flr Area Exemptin include: :;.. Makes many previus ADU (2"d unit) apprvals legal nn-cnfrming. :;.. Des nt prvide the encuragement/incentive ur Husing Element includes fr ADU's. :;.. Might shrink the number f future ADU's thus impacting Mill Valley's husing availability as well as ur husing perfrmance mnitred by the State. Finally, ne additin that the State des allw is the requirement fr a Deed Restrictin. The Deed Restrictin will require ne f the units (single family hme r ADU) t be wner ccupied, recgnitin that the unit is nt t be rented fr Jess than 30 cnsecutive days, and Staff prpses t include a mandatry requirement fr participatin in the annual survey f ADU wners. Envirnmental Review: 120 121 122 123 124 125 126 127 128 129 130 131 132 The prpsed mdificatins t Chapter 20.90, Accessry Dwelling Units are exempt frm the requirements f the Califrnia Envirnmental Quality Act ("CEQA"), pursuant t CEQA Guidelines Sectin 15282(h) which exempts the adptin f an rdinance regarding secnd units in a single-family r multifamily residential zne. Staff Recmmendatin: Based n the infrmatin prvided in this staff reprt and attachments, Staff recmmends the Planning Cmmissin apprve the Reslutin (EXHIBIT A) supprting the Zning Ordinance Amendments t Chapter 20.90, Accessry Dwelling Units. Attachments: I. Planning Cmmissin Reslutin 2. Prpsed Ordinance Amending the Zning: including Exhibit A, Prpsed Amendments t Chapter 20.90, Accessry Dwelling Units 3. Letter frm City Attrney t Yin Smith, Planning Directr 4

RESOLUTION NO. PC16- A RESOLUTION OF THE CITY OF MILL VALLEY PLANNING COMMISSION RECOMMENDING THAT CITY COUNCIL ADOPT AN ORDINANCE AMENDING CHAPTER 20.90 OF THE ZONING ORDINANCE, MODIFYING STANDARDS RELATED TO ACCESSORY DWELLING UNITS WHEREAS, the State f Califrnia has enacted legislatin effecting Accessry Dwelling Units (2"d units, Granny Units and the like) which becmes effective n January I, 20 17; and WHEREAS, the new State Legislatins authrizes the City f Mill Valley t mdify its Accessry Dwelling Unit regulatins t be cnsistent with the new State Legislatin; and WHEREAS, n Nvember 15,2016 the Planning Cmmissin held a duly nticed public hearing n the prpsed amendments befre making a final recmmendatin t the City Cuncil; and WHEREAS, the prpsed amendments are cnsistent with the applicable plicies f the Mill Valley General Plan and Husing Element; and, WHEREAS, it has been determined that the prpsed mdificatins t Chapter 20,90, Accessry Dwelling Units are exempt frm the requirements f the Califrnia Envirnmental Quality Act ("CEQA"), pursuant t CEQA Guidelines Sectin 15282(h) which exempts the adptin f an rdinance regarding secnd units in a single-family r multifamily residential zne. NOW, THEREFORE, THE PLANNING COMMISSION OF THE CITY OF MILL VALLEY, having cnsidered all evidence in the public recrd, reslves as fllws that: I. The prpsed mdificatins t Chapter 20.90, Accessry Dwelling Units are exempt frm the requirements f the Califrnia Envirnmental Quality Act ("CEQA"), pursuant t CEQA Guidelines Sectin 15282(h) which exempts the adptin f an rdinance regarding secnd units in a single-family r multifamily residential zne. 2. The Planning Cmmissin recmmends the City Cuncil apprve the Zning Ordinance Amendments t Chapter 20.90, Accessry Dwelling Units as cntained in EHIBIT A f the attached Ordinance. Mtin by Cmmissiner: Secnd by Cmmissiner: PLANNING COMMISSION MEETING DATE: fi/j?jfv ATIACHMENT 1: PC Reslutin: Accessry Dwelling Units ATIACHMENTl

THE FOREGOING RESOLUTION was adpted at the Planning Cmmissin meeting f Nvember 15,2016 by the fllwing vte: AYES: NOES: ABSENT: Anne Blen, Chair, City f Mill Valley Planning Cmmissin ATTEST: Yin Smith, Directr f Planning & Building ATTACHMENT 1: PC Reslutin: Accessry Dwelling Units 2

ORDINANCE NO.--- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MILL VALLEY AMENDING CHAPTER 20.90 OF THE ZONING ORDINANCE, MODIFYING STANDARDS RELATED TO ACCESSORY DWELLING UNITS SECTION 1: FINDINGS WHEREAS, the State f Califrnia has enacted legislatin effecting Accessry Dwelling Units (2"' units, Granny Units and the like) which becmes effective n January 1, 2017; and WHEREAS, the new State Legislatins authrizes the City f Mill Valley t mdify its Accessry Dwelling Unit regulatins t be cnsistent with the new State Legislatin; and WHEREAS, n Nvember 15,2016 the Planning Cmmissin held a duly nticed public hearing n the prpsed amendments befre making a final recmmendatin t the City Cuncil; and WHEREAS, the prpsed amendments are cnsistent with the applicable plicies f the Mill Valley General Plan and Husing Element. SECTION 2: NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MILL VALLEY HEREBY ORDAINS that Chapter 20.90, Residential Secnd Units f Title 20 f the Mill Valley Municipal Cde is amended t read as fllws: SECTION 3: See Attached Exhibit A If any sectin, subsectin, sentence, clause r phrase f this Ordinance is fr any reasn held t be invalid, such decisin shall nt affect the validity f the remaining prtins f this Ordinance. The Cuncil hereby declares that it wuld have adpted the Ordinance and each sectin, subsectin, sentence, clause r phrase theref, irrespective f the fact that any ne r mre sectins, subsectins, sentences, clauses r phrases be declared invalid. SECTION 4: This Ordinance shall be published nce in full befre its final passage in a newspaper f general circulatin, published and circulated in the City f Mill Valley and shall be in full frce and effect thirty (30) days after its final passage. SECTION 5: 1. The City Cuncil herby finds that the prpsed mdificatins t Chapter 20.90, Accessry Dwelling Units are exempt frm the requirements f the Califrnia Envirnmental Quality Act ("CEQA"), pursuant t CEQA Guidelines Sectin 15282(h) which exempts the adptin f an rdinance regarding secnd units in a single-family r multifamily residential zne. Jhn McCauley, Mayr ATTEST: Accessry Dwelling Unit Ordinance 1 PLANNING COMMISSION MEETING DATE: f/jt'i/f(p ATTACHMENT 2

City Clerk Kelsey Rgers The freging Ordinance N. was read and intrduced at a Regular Meeting f the City Cuncil f the City f Mill Valley, Califrnia, held n the day f, 2016 and rdered passed t print by the fllwing vte, t wit: AYES: NOES: ABSENT: Cuncilmembers: Cuncilmembers: Cuncilmembers: and will cme up fr adptin as an Ordinance f the City f Mill Valley at a Regular Meeting f the Cuncil t be held n the day f, 2016. Accessry Dwelling Unit Ordinance 2

EXHIBIT A: PRPOSED AMENDMENTS TO CHAPTER 20.90 OF THE MILL VALLEY ZONING ORDINANCE 20.90.010 Purpse. It is the intent f these regulatins t prvide pprtunities fr new residential secnd Accessry Dwelling Units cnsistent with state law and lcal regulatins. Accessry Dwelling Units Residential secnd units are intended t prvide independent living units fr family members, students, the elderly, in-hme health and child care prviders and thers within existing residential neighbrhds. 20.90.020 Definitins. A. Accessry Dwelling Unit. Accessry Dwelling Unit (als "ADU". "secnd unit," r "granny unit") shall mean an attached r detached residential dwelling unit which prvides cmplete independent living facilities fr ne r mre persns. It shall include a kitchen as defined herein, as well as permanent prvisins fr living, sleeping, eating, cking, and sanitatin n the same parcel where the single-family dwelling is situated. An Accessry Dwelling Unit als includes an "Efficiency Unit" as defined in Health and Safety Cde Sectin 17958.1 and a "Manufactured Hme" as defined in Health and Safety Cde Sectin 18007. ]L_Kitchen. Kitchen shall mean a rm r prtin theref cntaining permanent facilities designed and used fr fd preparatin, cking, eating and dish washing. A l<itchen Kitchen shall include all f the fllwing: a sink with ht and cld running water; a range r stve-tp and ij.!l.oven; at a minimum, an apartment-sized refrigeratr; and built-in dish and utensil strage spaces. A-In additin t the afrementined imprvements. a l<itchen Kitchen may als include any f the fllwing: micrwave, cnvectin ven, ht plate r autmatic dish washer. B. Residential Secnd Unit. Residential secnd unit (als "secnd unit," "accessry dwelling unit," "granny unit") shall mean a detached r attached residential dwelling unit that prvides cmplete independent living facilities fr ne r mre persns n the same parcel as a legal single family residence. A residential secnd unit shall include a l<itchen, as defined in subsectin A f this sectin, as well as permanent prvisins within the residential secnd unit fr living, sleeping, eating and sanitatin. C. Detached Residential Secnd UnitAccessry Dwelling Unit. Detached Accessry Dwelling Unit residential secnd unit shall mean a new r existing structure that is lcated n the prperty such that the unit des nt share any walls with the primary single family residence and the distance between nearest pint f any prtin f the unit and the primary residence is six feet r mre. D. Attached Accessry Dwelling UnitResidential Secnd Unit. Attached Accessry Dwelling Unit residential secnd unit shall mean a new r existing secnd unit that ccupies part f the flr area f the primary residence..q!, is attached t the primary residence by ne r mre cmmn walls, r may be separate frm the primary residence, but the distance between the nearest pint f any prtin f the residential secnd unit and primary residence is less than sil! feet. 20.90.030 Develpment standards.

EXHIBIT A: PRPOSED AMENDMENTS TO CHAPTER 20.90 OF THE Mill VAllEY ZONING ORDINANCE An residertial secrd urit~ Accessry Dwelling Unit shall cmply with the fllwing develpment standards, as applicable: A. Accessry Dwelling Units are a Qermitted use in the RS and Planned Residential Districts. Accessry Dwelling Units may als be Qermitted in the RM and DR Districts n lts that cntain a single family hme..!l_ N mre than ne residertial secrd URitAccessry Dwelling Unit shall be lcated n the same parcel as the primary single family residence. I I I!:;B. SecRd Accessry Dwelling Unit Flr Area Exemptin. The fllwing Flr Area ExemQtins apqiy nly t the creatin f a new Accessry Dwelling Unit where an existing Garage r Accessry Building is nt cnverted. lt Area Less than 5,000 square feet FAR Exemptin SecRd URitN exemqtin: Accessry Dwelling Units nt permitted 5,001 t 8,000 square feet N exemptin 8,001 t 10,000 square feet Up t 800 square feet cmbined garage and secrd uritaccessry Dwelling Unit area (See Sectin 20.16.040(A)(1)(b)(ii)) Mre than 10,000 square feet Up t 1,000 square feet cmbined garage and secrd URitAccessry Dwelling Unit area (See Sectin 20.16.040(A)(1)(b)(iii)).QG. An Accessry Dwelling Unit residertial secrd URit shall nt exceed 30% f the maximum adjusted flr area as calculated in Sectin 20.16.040(A)(2) fr the subject lt; but in n case shall the residertial secrd uritaccessry Dwelling Unit be less than 150 square feet, nr mre than 1,000 square feet in flr area. 9. A detached residertial secrd uritaccessry Dwelling Unit that is part f a detached garage shall nt exceed 1,500 square feet in ttal cmbined garage and residential secnd unit flr area. F. An Accessry Dwelling Unit residertial secrd URit shall cnfrm t all lt cverage. FAR, and setback regulatins apqiicable t the zning district in which the QrQerty is lcated, exceqt in the fllwing cases: 1. N setback shall be required fr an existing garage r accessry/detached building that is cnverted t an Accessry Dwelling Unit as lng as it meets fire and building cde requirements. 2. An Accessry Dwelling Unit cnstructed abve a garage shall have a minimum interir setback f five feet.

EXHIBIT A: PRPOSED AMENDMENTS TO CHAPTER 20.90 OF THE MILL VALLEY ZONING ORDINANCE G. Architectural style and building frm f Accessry Dwelling Units shall match the style and frm f the primary residence. Architectural details. including. but nt limited t. windws. rf pitch. and trim shall match the main building n the site. H. The clr f the Accessry Dwelling Unit shall match the clr f the primary residence n site. I. Lighting shall be shielded r directed s that it des nt glare ff-site r illuminate the main residence r adjacent prperty. J. Windws shall be lcated t avid line f sight t windws f adjacent prperties. Obscured glass and ther techniques may be used t avid line f sight. ]Sf. An Accessry Dwelling Unit residential secnd Hnit shall have a separate exterir access. The exterir access shall be a standard exterir dr and shall be lcated in a manner that will preserve, t the greatest extent feasible, the privacy f the primary residence, ther accessry structures and any adjining residences. F. A residential secnd Hnit shall cnfrm t all site cverage and setsacl( reghiatins applicasle t the zning district in which the prperty is lcated, el(cept that a new residential secnd Hnit cnstrhcted asve r selw a new attached r detached garage may se lcated in a reqhired e)(terir setsacl( where the garage is therwise allwed.!,g. A detached Accessry Dwelling Unit residential secnd Hnit shall nt exceed 15 feet in height; r, when lcated abve a garage, shall nt exceed 25 feet in height subject t applicable develpment standards f this chapter. H. A detached residential secnd Hnit shallse cmpatisle with the design, clrs and el(terir materials f the primary residence. M.N. A permanent fhndatin shallse reqhired fr all accessry dwelling HnitAccessrv Dwelling Units. M.GI. Off-Street Parking. One ff-street parking space shall be prvided fr each bedrm f the Accessry Dwelling Unit in additin t thse required fr the primary residence. except as specifically prvided belw. Secnd Unit Size 700 sqhare feet r less Mre than 700 sqhare feet Off Street Parlling Spaces ReEfHired ± ;?, 1. The lcatin f the required parking space(s) shall nt bstruct the parking f the primary residence, and shall be a minimum f 20 feet in length. At least ne f the required parking spaces fr each unit shall be independently accessible at all times. The required parking spaces fr the Accessrv Dwelling Unit may be uncvered and. if the Accessry Dwelling Unit requires tw ff-street parking spaces. they may be in tandem with each ther. Parking may be prvided

O.W. EXHIBIT A: PRPOSED AMENDMENTS TO CHAPTER 20.90 OF THE MILL VALLEY ZONING ORDINANCE within the frnt setback between an existing driveway and the clsest side f the prperty line if the slpe f the site is ten percent r less. with the apprval f the Planning Directr. 2. Fr existing legal, nncnfrming residential secnd unitaccessry Dwelling Units recgnized by the City, n additinal ff-street parking, beynd the number f spaces currently prvided shall be required fr the residential secnd Accessry Dwelling Unit and primary residence, unless the prperty is redevelped accrding t the design review requirements f Chapter 20.66 which may trigger a requirement t meet current applicable parking standards. 3. When a garage, carprt. r cvered parking structure is demlished in cnjunctin with the cnstructin f an Accessry Dwelling Unit. and the city requires that thse ff-street parking spaces be replaced, the replacement parking spaces may be lcated in anther cnfiguratin n the same lt as the Accessry Dwelling Unit and may be cvered, uncvered. r tandem spaces. 4. Off-street parking is nt required fr an Accessry Dwelling Unit in any f the fllwing instances: a. The Accessry Dwelling Unit is lcated within ne-half mile f public transit. b. The Accessry Dwelling Unit is lcated within a histric district. c. The accessry dwelling is part f the existing primary residence r an existing accessry structure. d. When ff street parking permits are required but nt ffered t the ccupant f the Accessry Dwelling Unit. e. When there is a City-apprved and dedicated parking space fr a car share vehicle lcated within ne blck f the Accessry Dwelling Unit. Nt withstanding the abve, where An e><isting legally cnstructed accessry structure rna r be cnverted int a residential secnd unit. If the accessry structure is an existing garage is cnverted int an Accessry Dwelling Unit, the cnversin shall nt eliminate any required ff-street parking fr the primary residence.. l;l4. If a prject depends upn an e>tclusin fr a residential secnd unit per paragraph 2Q.1 i.qqq(a)(l)(b)(ii) r 2Q.16.QqQ(A)(l)(b)(iii) in rder t crn ply with the rna><irnurn adjusted flr area in Sectin 2Q.l6.QqQ(A)(2), tl1en aa deed restrictin shall be recrded that prvides fr the fllwing: 1. The prperty shall remain wner-ccupied, with the wner ccupying either the primary residence r the Accessry Dwelling Unit. 2. The Accessry Dwelling Unit may be rented, but it may nt be sld separately frm the primary residence. 3. The Accessry Dwelling Unit shall nt be rented fr less than 30 cnsecutive days.

L EXHIBIT A: PRPOSED AMENDMENTS TO CHAPTER 20.90 OF THE MILL VALLEY ZONING ORDINANCE 4. The ideatifyiag tfie ejeisteaee sf a A attaefied sr detaefied resideatial sees Ad uait SA tfie prsperty a Ad statiag tfiat tfie wners and all successrs in interest in the subject prperty shall maintain the Accessry Dwelling Unit as apprsved in accrdance with all applicable City Accessry Dwelling Unit standards, 5. The wner and all successrs in interest in the subject prperty shall agree t respnd t the City f Mill Valley's annual survey f wners f all Accessry Dwelling Units t determine use, cde cnsistency and fr reprting purpses t the State Department f Husing and Cmmunity Develpment (HCD). 6. The deed restrictin shall nte that vilatin f this cde will be subject t Administrative Fines and Penalties as cntained in Chapter 8.02 f the Mill Valley Municipal Cde. 7.!ir. The deed restrictin shall be recrded with the Cunty f Marin and a cnfrmed cpy f the recrded dcument shall be prvided t the City f Mill Valley prir t the final inspectin fr the cnstructin f the prject. TFie swaer f a prsperty SA whieh a resideatial seead UAit is t be leated shall verify, UAder peaalty f perjury at the time sf applieatia fer tfie resideatial seead uait, tfiat sae f tfie tw UAits A tfie prperty is r will be tfieir primary resideaee. Q.,_RM. The wner f a prperty n which an apprved Accessry Dwelling Unit is t be lcated shall be subject t the payment f all sewer, water, schl district and ther applicable fees, and t the water meter requirements f the Marin Municipal Water District except as specifically prvided in Califrnia Gvernment Cde Sectin 65852.2.

m~~ RICHARDs 1 warsn 1 GERsHN ~~(f ATTORNEYS AT LAW- A PROFESSIONAL CORPORATION 44 Mntgmery Street, Suite 3800, San Francisc, Califrnia 94104 4811 Telephne 415.421.8484 Facsimile 415.421.8486 ~tckar R:cHARs Nvember 4, 2016 (1916-1958) GLENN R. WATSON 69t7-;!0t) HARRY L, GERSHON (1922-2007) SHVfN L DORSEY WILliAM L STIIAUSZ GREGORYW. STEPANICICH QUINN M. BARROW CAROL W. LYNCH GREGORY M, KUNERT Tf10MAS M. JIMBO ROBrRT C. CECCON STEVEN It KAUFMANN K~VIN G. ENNIS ROlliN 0, HARRIS MICHAEL ESTRADA LAURENCE 5, WIENER B. TILDEN KIM SASKIA T. ASAMURA KAYSER 0, SUM f'eter M. THORSON JAMES l. MARKMAN CRAIG A. STEEL~ T. PETER I'IERCE TERENCE II,!IOGA lisa BONO ROXANNE M. DIAZ JIM G. GRAYSON ROY A. ClARKE MICHAH F. YOSHIDA REGINA N, DANNER PAUlA GUTIERREZ BAEZA DRUCE W, GAlLOWAY DIANA K. CHUANG?A TRICK K. BOSKO DAVID M. SNOW LOllY A. ENRIQUEZ GINfnA L. GIOYINCO TRISHA ORTIZ CMlDICE K. lee JENN!fER PETRUS IS ST!VEN L FlOWER TOUSSAINT S. BAilEY AMY GRfYSON DEBORAH R. HAKMAN 0. CRAIG fox MARitElA t. MARROQUftl SERITA It VOUNG inoer!(halsa WIHTNEY G. MCDONALD StAN B. GIBBONS STEI'HANIE CAO PATRICK 0. SKAHAN STEPHEN 0, lte YOUSTINA N. AZIZ BRtNOAN KEARNS KYlE H. BROCHAIID NiCHOLAS R. GHIRHLI ISRA SHAH ISAAC M, ROSEN ROMTIN PAIIYARESH ANDREW R, tntre!ras CASEY STROUG Of COUNSEL MITCHELL E. ABSOn ROCHELLE BROWNE TERESA HO I.IRANO DIANA H. YARAT LOS AUGELES OffiCE TELOI'NONE 21).626.8ij81j ORANGE COUNTY OFFICE THEPHONE 714 990 0901 T MECUI.A OFFICE TELEPHONE 951.695, ~373 CENTRAL COAST OFfiCE T L PHONE 805-439 3515 Yin Smith, Directr f Planning and Building City f Mill Valley 26 Crte Madera A venue Mill Valley, CA 94941 Re: AB 2299 & SB I 069- New Legislatin Regarding Accessry Dwelling Units AB 2406- New Legislatin Regarding Junir Accessry Dwelling Units Dear Mr. Smith: I am writing t infrm yu abut new legislatin restricting lcal regulatin f "accessry dwelling units" ("AD Us"), which state law currently refers t as "secnd units." This legislatin, Assembly Bill2299 ("AB 2299") and Senate Billl069 ("SB 1069"), amends Gvernment Cde 1 Sectin 65852.2 effective January I, 2017 and impses additinal limits n cities. I am als writing t infrm yu f a third new bill, Assembly Bill 2406 ("AB 2406"), that authrizes cities t adpt an rdinance t permit "Junir AD Us." This bill was an urgency measure and is already in effect. I. ADU Legislatin A. Overview Currently, Sectin 65852.2 restricts lcal regulatin f secnd units. The statute allws cities t adpt an rdinance that impses certain standards fr secnd units, and it requires cities t ministerially prcess secnd unit applicatins. Cities withut such an rdinance are required t ministerially apprve secnd units based n state standards set frth in the statute. AB 2299 and SB I 069 2 amend Sectin 65852.2 t change the term "secnd unit" t "accessry dwelling unit." Hwever, the term ADU has the same meaning as the term secnd unit: an attached r detached residential dwelling unit that prvides cmplete independent living facilities n the same parcel as the primary single-family 1 All fmther references are t the Gvernment Cde unless therwise indicaled. 2 Bth bills cntain identical amendments t Gvernment Cde Sectin 65852.2. In additin t the identical amendments, SB 1069 cntains cnfrming amendments t ther Gvernment Cde sectins s that the term "accessry dwelling unit," rather than "secnd unit,'' is used thrughut. PLANNING COMMISSION MEETING DATE: II/ wj 1 ATTACHMENT 3 (::,

RICHARDS I WATSON I GERSHON ATTORNEYS AT law -A PROFESSIONAL CORPORATION Yin Smith, Directr f Planning and Building Nvember 4, 201 6 Page 2 dwelling. This definitin requires that the facility prvide permanent prvisins fr living, sleeping, eating, cking, and sanitatin. Thus, practically speaking, cities may require an ADU (and can nw require a secnd unit) t have its wn kitchen and bathrm facilities. B. Limits n Lcal Regulatins AB 2299 and SB 1069 als amend Sectin 65852.2 t place further restrictins n lcal regulatins. Althugh cities currently have limited ability t regulate secnd units, when this legislatin becmes effective, cities will have even less ability t regulate AD Us. Mrever, if n January I, 2017 a city des nt have an rdinance that cmplies v.iith the new restrictins, then until such an rdinance is adpted the city must apprve AD Us based n the state standards specified in the statute. Fr cities that adpt an ADU rdinance in cmpliance with the new Sectin 65852.2, a limited amunt f flexibility t tailr lcal standards remains. By rdinance, the city may require that the prperty wner be an wner-ccupant. The city als may require rental terms lnger than 30 days t prhibit vacatin rentals. Finally, the rdinance must designate areas where AD Us may be permitted and establish develpment standards relatei:l t parking, height, setbacks, lt cverage, landscaping, and certain architectural requirements. Except as described belw, the statute des nt mandate the exact standards cities must establish. In certain instances, the new Sectin 65852.2 mandates that rdinances impse a particular standard. Fr example, cities can establish setback standards, but any ADU abve a garage is entitled t a setback standard f five feet r less and AD Us cnverted frm an existing garage (r ther accessry structure) are entitled t n setback requireinent. 3 Similarly, cities may establish their wn parking requirements, but thse standards cannt exceed ne space per bedrm, must allw fr tandem parking, and must exempt certain AD Us frm parking requirements altgether, as described belw. The fllwing lists summarize the extent f lcal flexibility in adpting an ADU rdinance, and certain mandatry requirements that further limit that flexibility. As 3 Althugh nt expressly prvided, we interpret this setback requirement t nt verride building and safety requirements because Sectin 65852.2(a)(l )(D)( viii) states that lcal building cdes apply. It is likely that cities may still require minimal setbacks as required fr tire safety.

RICHARDS I WATSON I GERSHON ATTORNEYS AT law -A PROFESSIONAL CORPORATION Vin Smith, Directr f Planning and Building Nvember 4, 2016 Page 3 written, the new Sectin 65852.2 states that an ADU rdinance "must" prvide certain regulatins, s a cnfrming rdinance shuld include all required tpics even where the city intends t be permissive in its regulatins. The legislatin states that the statutry standards are maximum standards that a city may impse n AD Us lcated n residential lts with an existing single-family residence. An ADU Ordinance Must Establish the Fllwing Regulatins n ADUs. 4 Lcatin. Designate areas where AD Us may be permitted, whether by bjective criteria r specified area. Develpment Standards. Impse standards that include parking, height, setback, lt cverage, landscape, architectural review, and maximum size, as well as standards that prevent adverse impacts n any real prperty listed in the Califrnia Register f Histric Places. Zning.' Require AD Us t be lcated nly n lts zned single-family r multifamily residential, and where the lt cntains an existing single-family dwelling. Definitin f ADU.' Require that the AD Us include kitchen and bathrm facilities, and that the ADU must be (i) attached t the existing residence, (ii) lcated within the living area f the existing residence, r (iii) detached frm the existing residence but lcated n the same lt. Access01y Use.' Require wners t agree that the ADU may be rented but nt sld separately frm the primary residence. AD Us are cnsidered accessry uses r structures. Square Ftage.' Require that an attached ADU des nt exceed 50 percent f the existing living area and that any ADU, whether attached r detached, nt exceed 1,200 square feet. The law is unclear as t whether lwer square ftage r percentage maximums may be impsed by rdinance. Owner-Occupant and Rental Term.' Althugh it is nt required, the rdinance may require the applicant t be an wner-ccupant. It may als require the prperty t be used nly fr rentals f terms lnger than 30 days. 4 An asterisk (*) indicates new r substantially mdified standards and requirements.. As nted abve, previus law had included sme f the standards indicated, but under previus law they applied nly in the absence f a secnd unit rdinance.

RICHARDS I WATSON I GERSHON ATTORNEYS AT LAW- A PROFESSIONAL CORPORATION Vin Smith, Directr f Planning and Building Nvember 4, 2016 Page 4 Cities Must Cmply with the Fllwing Standards and Requirements. Lt Density. Prvide that AD Us are cnsidered accessry uses r structures t the primary residence and cities cannt deny an ADU based n zning regulatins establishing lt density. Use Classificatin. Prvide that AD Us are a residential use that is cnsistent with existing residential zning designatins. Minimal Setbacks fr Certain AD Us.' Fr an ADU cnverted frm an existing garage, the City may nt require any setback (beynd what wuld be required by lcal building and fire cdes, see Sectin 65852.2(a)(l )(D)(viii)). Fr an ADU abve a garage, n setback greater than five feet frm the side and rear lt lines may be required. Fire Sp1:inklers.' AD Us are nt required t prvide fire sprinklers if they are nt required fr the primary residence. Parking Requirements.' Require n mre than ne space per bedrm. Tandem parking n an existing driveway and parking in setback areas must be allwed t satisfy the ne-space requirement unless the city makes specific findings that it is either (i) nt feasible based upn specific site r reginal tpgraphical r fire r life safety cnditins, r (ii) nt permitted anywhere else in the jurisdictin. N Parking Requirement fr Certain AD Us.' A city may nt require parking fr an ADU that is: lcated within ne-half mile f public transit; lcated within an architecturally and histrically significant district; part f the existing primary residence r an existing accessry structure (e.g., basement r garage cnversins); lcated within ne blck f a car share vehicle; r lcated in an area where the city requires n-street parking permits but des nt ffer the permits t the ADU ccupant. Replacement Parking.' If a city requires ff-street parking spaces t be replaced after a garage, carprt, r cvered parking structure is demlished fr an ADU, the replacement spaces may be lcated in any cnfiguratin. This includes cvered spaces, uncvered spaces, tandem spaces, r even vertical spaces with a mechanical parking lift. Nte that this requirement des nt

RICHARDS I WATSON I GERSHON ATTORNEYS AT LAW- A PROFESSIONAL CORPORATION Yin Smith, Directr f Planning and Building Nvember4, 2016 Page 5 appear t apply where a garage is being cnverted int an ADU, rather than demlished. Basement/Garage (r ther Accessry Structure) Cnversins. Cities must apprve an ADU that satisfies all f the fllwing requirements: the ADU is n a lt zned single-family residential it is the nly ADU n the lt, the ADU is cntained within an existing residence r accessry structure (e.g., a basement r garage cnversin), the ADU has independent exterir access, and the ADU has side and rear setbacks sufficient fr fire safety. C. ADU Ordinance Adptin and Applicatin Apprvals On January 1, 2017, any secnd unit rdinance that des nt cmply with the new Sectin 65852.2 is vid. Until the city adpts a new rdinance, the city must apprve AD Us based nly n the wnership, zning, density, parking, and size standards in the statute. If a city adpts a new rdinance that cmplies with the statute, then the city may apply the rdinance's standards. Regardless f which standards apply, the city must apprve r disapprve ADU applicatins ministerially (withut public input r a hearing) within 120 days f receipt. Within 60 days f adptin, cities must submit ADU rdinances t HCD. This appears t be an infrmatinal submittal nly, and HCD des nt apprve r disapprve rdinances. Adptin f an ADU rdinance is exempt frm the Califrnia Envirnmental Quality Act ("CEQA") under Public Resurces Cde Sectin 21080.17. Because ADU apprval must be ministerial, it will nt cnstitute a "prject" fr purpses f CEQ A. II. Junir ADU Legislatin AB 2406 authrizes, but des nt require, cities t als petmit and regulate Junir AD Us, which are nt cvered under Sectin 65852.2. A Junir ADU is defined as a unit that is n mre than 500 square feet and cntained entirely within an existing single-family sttucture. Unlike the AD Us discussed abve, a Junir ADU need nt have its wn sanitatin facilities separate frm the primary residence.

RICHARDS I WATSON I GERSHON ATTORNEYS AT LAW- A PROFESSIONAL CORPORATION Vin Smith, Directr f Planning and Building Nvember 4, 2016 Page 6 AB 2406 sets nly minimal requirements n Junir ADU rdinances and it des nt impse State standards in the absence f a lcal rdinance. Rather, AB 2406 is purely permissive. Hwever, a city that wants t incentivize the creatin f these smaller, mre dependent AD Us may prefer t adpt a Junir ADU rdinance that prvides mre allwances and lenient standards than thse applicable t thse described abve. *** This letter is infended t prvide a general utline f the legislatin. We have already started wrking n an rdinance fr Mill Valley that will cmply wifh these new state standards. We will cntinue t wrk with yu t determine the mst apprpriate way t incrprate the new requirements fr Mill Valley. If yu have any questins abut this new legislatin r this letter, please cntact me r Andrew R. Cntreiras in ur Ls Angeles ffice. Very truly yurs, lnder Khalsa cc: Jim McCann, City Manager Mayr and Members f the City Cuncil 201258Ll