Title
Public Hearing to Introduce an Ordinance Amending Chapter 30 of the Alameda Municipal Code (Zoning Ordinance) to Remove Barriers and Add Incentives for Second Units. The proposed amendments regarding Second Units are Statutorily Exempt pursuant to Section 15282(h), for the adoption of ordinances implementing AB 1866 - Second Unit Law (Government Code Section 65852.2).
Body
To: Honorable President and
Members of the Planning Board
From: Allen Tai
Planning Services Manager
BACKGROUND
In November 2015, the Planning Board recommended changes to the Second Unit Ordinance as a result of the existing ordinance only generating two units since 2010. The amendments recommended by the Planning Board primarily lower the minimum lot size requirement and eliminate the requirement for one additional parking space when creating a second unit. The existing minimum lot size requirement of 7,500-square-feet and additional parking requirement limit the number of single-family properties that qualify for a second unit (Exhibit 1).
On December 15, 2015, after considering the Planning Board-recommended amendments, the City Council directed staff to modify the Second Unit Ordinance to ensure that the revisions would result in more affordable second units with minimal transportation and parking impacts on the neighborhood. Specifically, the Council was concerned that second units would impact existing neighborhoods by generating cars that would end up on neighborhood streets. The Council also directed staff to assess opportunities for second units to count as affordable units to meet the City’s Regional Housing Needs Allocation (RHNA). Staff is requesting the Planning Board review and recommend approval of the new revisions to the Second Unit Ordinance drafted per Council direction.
DISCUSSION
To meet the Council’s twin objectives of increasing opportunities for small, affordable second units, while creating little to no impact on neighborhood transportation and parking conditions, staff is recommending revisions to the Second Unit Ordinance that create options to the base requirements of the current ordinance, as follows:
Option #1 - Affordable Unit Option: This option is available to second units restricted to affordable rent for low-income households (households with a maximum income up to 80% of the area median family income). This option provides:
• Minimum lot size reduced to 5,000 square feet - As shown in Exhibit 2, approximately 3,210 properties in Alameda, with single-family homes on lots 5,000 square feet or greater in size, would be eligible for the affordable housing option.
• Parking requirement reduced to one additional tandem space - Tandem parking provides relief by allowing a property owner to count existing driveway space as tandem parking and also not having to pave over the back yard for an independent parking space.
The Affordable Unit option would require that the unit be deed restricted to households that qualify as low-income or below. Moderate-income households would not be eligible to rent these units. Maximum allowable rents for extremely low-income to moderate-income units in 2015 are shown in the table below. Under this option, the property owner would be subject to an annual reporting requirement that requires the property owner to submit a compliance form and supporting documents to the City. For reference, a sample deed restriction and annual compliance reporting form from the City of Piedmont is provided in Exhibit 3.
By restricting rent to the low-income category and below, each unit created through this option could be counted toward the “Low/Very Low” portion of the City’s RHNA.
|
Maximum Affordable Monthly Rent Levels By Unit Size (30% of Annual Household Income) |
|
|
Eligible for Affordable Unit Option |
Not Eligible |
|
|
Extremely Low Income |
Very Low Income |
Low Income |
Moderate Income |
|
Studio |
$491 |
$819 |
$1,254 |
$1,964 |
|
1 Bedroom |
$561 |
$935 |
$1,433 |
$2,244 |
|
Source: Alameda Housing Authority; CA Dept. of Housing and Community Development, 2015 |
Option #2 - Transit-Oriented Unit Option: This option is available to properties located within ¼ mile of a high quality transit corridor with at least 20-minute peak hour service (currently AC Transit Lines 51A and O). The property owner must provide a monthly transit pass to qualify for the following:
• Minimum lot size reduced to 5,000 square feet.
• No additional parking required.
This option promotes the use of public transit by facilitating second units near transit corridors and by requiring a transit pass for the second unit. The transit pass requirement will be stipulated in the deed restriction for the second unit. The transit pass can be made available to any member of the property when the second unit is not rented out. This option subjects the property owner to annual compliance reporting and supporting documentation verifying transit pass purchase. Of the approximately 3,210 properties in Alameda with a single-family home on lots of at least 5,000 square feet, approximately 1,368 are located within ¼ mile of Lines 51A or O (Exhibit 4).
Each unit created through this option would count toward the “Moderate/Above Moderate” portion of the City’s RHNA.
Option #3 - Transit-Oriented Affordable Unit Option: This option is available to properties located within ¼ mile of a high quality transit corridor and rent-restricted to low-income households. Both a rent restriction and the purchase of a monthly transit pass are required to qualify for the following:
• Minimum lot size reduced to 4,000 square feet.
• No additional parking required.
This option provides the most flexibility to the base requirements for second units by factoring in affordability and transit proximity. Approximately 2,698 properties in Alameda could qualify for this option. The deed restriction and annual reporting requirements previously described would apply. The deed restriction under this option would also preclude the property owner from passing transit pass costs on to the renter.
Each unit created through this option would count toward the “Low/Very Low” portion of the City’s RHNA.
Improve the “Base” Requirements: To improve the Ordinance for all properties, staff is recommending the following amendments to the base requirements in addition to the three options described above. These amendments also address Council concerns that new second unit construction ensure compatibility with the surrounding neighborhood environment:
• Clarify that second units are permitted on residentially zoned lots with one single-family home and that lot cannot be within a planned development.
• Clarify that detached second units (cottages) are accessory buildings and must therefore meet the requirements of accessory buildings in the Zoning Ordinance. These requirements stipulate that accessory buildings be subordinate to the main dwelling with building setbacks designed to be compatible in a back yard setting. The proposed amendments would also facilitate the conversion of accessory buildings to second units and other uses such as a home office or art studio.
• Prohibit multi-story detached second units. Establish a single-story, 15-foot height limit for detached backyard cottage units, which is the same requirement for accessory buildings.
• Eliminate the minimum unit size and one bedroom limitation. The Building Code already establishes minimum health and safety standards for living areas, so creating separate standards for second units is unnecessary.
• Add a prohibition on short-term rentals. A short-term rental is defined in the proposed ordinance as occupancy for 31 days or less, which is consistent with other definitions in the Alameda Municipal Code (AMC) regarding transient occupancy stays. In recent years, the popularity of online venues for advertising and arranging vacation stays have made short-term rentals a popular option for both travelers and property owners. However, such short-term occupancies do not address the need for more permanent housing in Alameda. Because the purpose of the Second Unit Ordinance is to provide permanent housing and not commercial income opportunities for property owners, staff recommends prohibiting second units being used as short-term rentals. Should the Planning Board disagree with staff and wish to provide this opportunity for property owners to earn supplemental income, the Planning Board may recommend the City Council omit this prohibition from the proposed Ordinance.
Each unit created under the base requirements would count toward the “Moderate/Above Moderate” portion of the City’s RHNA.
The three options described above are intended to supplement the base requirements of the Second Unit Ordinance to provide Alameda single-family homeowners a total of four options to create a second unit. A summary table of the proposed changes is provided in Exhibit 5. The recommended changes will increase opportunities for creating small, affordable, transit-oriented rental units in Alameda, with little impact to the transportation and parking conditions in the neighborhoods. As part of the Annual Report on Housing Element Implementation, the City is required to monitor second unit production. Each year, the Council and community will be able to monitor the effects of the recommended amendments. If, based upon the annual report, the City Council wishes to further amend the Ordinance, those changes may be initiated at the Housing Element annual review.
PUBLIC NOTICE and Comments
Legal ads were published on May 27 and July 1, 2016. The Alameda Architectural Preservation Society submitted a comment letter on June 21, 2016 (Exhibit 6).
ENVIRONMENTAL REVIEW
The proposed amendments regarding Second Units are Statutorily Exempt pursuant to Section 15282(h), for the adoption of ordinances implementing AB 1866 - Second Unit Law (Government Code Section 65852.2).
RECOMMENDATION
Staff recommends the Planning Board hold a public hearing and recommend approval of the proposed amendments to the Second Unit Ordinance.
Respectfully submitted,
Allen Tai, Planning Services Manager
Exhibits:
1. Map of lots 7,500 sf or greater
2. Map of lots 4,000 sf or greater (including 5,000 sf lots)
3. Sample Deed Restriction for Affordable Units and Compliance Reporting (City of Piedmont)
4. Map of lots within transit corridor
5. Summary Table of Proposed Second Unit Ordinance Revisions
6. AAPS Comment Letter
7. Draft Ordinance