Housing Legislation

2024 Updates

Over the past several years, the California State Legislature has adopted numerous bills intended to address California’s housing crisis by limiting local government discretion over housing development projects in an effort to increase housing supply. In 2023, this trend continued in Sacramento. Some of the bills affecting housing are noted below.

On February 15, 2024, a Planning Commission Study Session is scheduled on recent developments in land use law that affect how the City plans for, reviews, and act on new housing development applications.

Here is the link to the Agenda

2023 Updates

Accessory Dwelling Units (ADUs) - Assembly Bill (AB) 2221 and Senate Bill (SB) 897

The Legislature adopted two key ADU bills in 2022: AB 2221 and SB 897. These bills took effect on January 1, 2023, and amend Government Code Sections 65852.2, 65852.22. and 65852.23, and Health and Safety Code Section 17980.12. 

ADU Review and Approval Process

• Permits for ADUs and Junior ADUs must be reviewed ministerially; no discretionary review or hearings are permitted
• Ordinances may not conflict with provisions of Gov. Code Sec. 65852.2(a) through (d)
• Ordinance must allow ADUs and Junior ADUs specified in Gov. Code Sec. 65852.2(e)
• Time to approve or deny permit application:
• 60 days from complete application if there is an existing dwelling unit (or units) on the lot
• May delay acting on applications to build ADUs with new single-family or multi-family dwellings, but ADU or Junior ADU permit may only be reviewed ministerially
• If complete application not acted on within 60 days, it shall be “deemed approved” if the local agency has not adopted a compliant ADU ordinance
• If application is denied, City must provide full set of comments identifying defects and how application can be remedied

General ADU Standards

• Must allow ADUs in areas zoned to allow residential uses
• May only restrict location based on: adequacy of water and sewer; impact of ADU on traffic flow; and public safety
• Owner-occupancy requirements are not permitted
• This provision sunsets in 2025, but units built between 2020 and 2025 remain exempt
• Pending legislation would remove the sunset provisions
•  Jurisdictions may prohibit rentals of less than 30 days in all ADUs and must prohibit short-term rentals in ADUs created under Gov. Code Sec. 65852.2(e)
• Jurisdictions may allow the separate sale or conveyance of an ADU from a primary residence if it was constructed by a qualified nonprofit organization under AB 587
• No fire sprinklers required in ADU if not also required in primary dwelling
• Creation of ADU may not trigger requirement for fire sprinklers to be installed

ADU Height Standards

• Height limit for detached ADUs
• 16 ft minimum
• 18ft ft on a lot with an existing or proposed multifamily multistory dwelling unit
• 18 ft, plus 2 ft for roof pitch, on lots within one-half of one mile walking distance of a major transit stop or a high-quality transit
• corridor
• Height limit for attached ADUs
• 25 ft or the height limitation in the local zoning ordinance that applies to the primary dwelling, whichever is lower
• No requirement to permit ADUs with more than 2 stories

Additions and New Detached ADUs

• Expressly allowed to regulate parking, setback, landscape, architectural review,
• maximum unit size, and to require standards that prevent adverse impacts on any real property that is listed in the California Register of Historic Resources
• Prohibited from enforcing minimum lot size requirements
•  Lot coverage requirements still allowed Setbacks
• No setback for conversions of existing structures
• No more than 4’ side and rear-yard setbacks for all other ADUs
•  No front yard setback if ADU development otherwise infeasible
•  Minimum and maximum size requirements permitted:
•  Minimum size must allow efficiency units (150 square feet)
•  Maximum must be at least 850 square feet or 1,000 square feet for ADUs with 2+ bedrooms
•  Standards must be waived to permit at least 800 square foot ADU with 4’ side and rear-yard

ADU Parking

• Maximum of 1 space per bedroom or per ADU, whichever is less (i.e., no parking required for an efficiency or studio ADU)
• Must allow tandem parking and parking in setbacks, unless specific site conditions, regional topography, or fire and life safety issues make this infeasible
• If existing parking area is converted to an ADU, no replacement parking may be required
• No parking may be required for ADUs:
  • Within ½-mile walking distance of public transit (including bus stops)
  • Within an architecturally and historically significant district
  • That are part of the existing primary residence or a converted accessory structure
  • In areas where on-street parking permits are required but not offered to ADU occupants

Mandatory ADU Approval on Single Family Lots

Regardless of any other provisions, must approve building permits in any residential or mixed-use zone to create any of the following:

• One ADU and one Junior ADU with existing or proposed single family unit
  • Expansion up to 150 square feet of existing space permitted
  •  Exterior access required
  •  Setbacks sufficient for fire safety
• One detached ADU on lots with an existing or proposed single family unit
  •  Not more than 800 square feet
  •  4’ side and rear yard setbacks
  • May be combined with a Junior ADU
  • Within one block of car share vehicles

Mandatory ADU Approval on Multifamily Lots
Regardless of any other provisions, must approve building permits in any residential or mixed-use zone to create any of the following:

• Multiple ADUs within existing multifamily building
  •  Conversion of space not used as livable space
  •  Examples: storage rooms, boiler roomers, garages, etc. – but must meet building code standards
  • Must allow 25% of existing units in building or one unit, whichever is greater
• Not more than two ADUs on lots with existing multifamily units
  •  Detached from existing multifamily building
  •  4’ side and rear yard setbacks

ADU Impact Fees

• ADU less than 750 square feet: none permitted
• ADU 750 square feet or more: charged proportionately in relation to the primary dwelling unit square foots

Connection Fees and Capacity Charges

• ADU or Junior ADU developed under Gov. Code Sec. 65852.2(e)(1)(A): no connection fee or capacity charge, and no direct connection between ADU and utility unless in conjunction with a new single-family home
• All other ADUs: connection fee or capacity charge “proportionate to the burden” of the ADU and may require new or separate utility connections

 Cost Recovery Fees

•  Local agency may charge fees to reimburse for costs incurred to implement Gov. Code Sec. 65852.2(a)(3) (60 day ministerial review process), including costs to adopt or amend ADU ordinance

State Density Bonus Law - AB 682, AB 2334, and AB 1551

The State Density Bonus Law allows developers to qualify for bonus units, reduced parking standards, and other development standard modifications (known as incentives/concessions and waivers) in exchange for affordable housing, senior housing, or other special housing types. In 2002, three bills (AB 682, AB 2334, and AB 1551) modified the State Density Bonus Law to allow shared housing buildings to qualify for a density bonus and to allow the City to award a commercial density bonus to qualifying projects. The bills also allow for additional bonuses to be awarded in defined “low vehicle-miles-traveled (VMT) areas” that are urbanized and have a low rate of vehicle miles traveled. Finally, the bills refined how density calculations are performed, particularly in zones that do not use a dwelling unit per acre density standard and instead rely on FAR limitations or other form-based development standards.

Post-entitlement phase permit - AB 2234

In prior years, the Legislature introduced bills – such as SB 35 and AB 2162 – to streamline the planning entitlement process, and the Permit Streamlining Act establishes deadlines for the City to review and act on development applications. However, developers also require a number of approvals from the City after entitlements have been approved to implement their approved projects. Accordingly, AB 2234 defines a new class of “post-entitlement phase permits” including building permits, demolition permits, and minor permits for off-site work. Under AB 2234, the City must review and act on post-entitlement phase permits for housing development projects within 30 days (or 60 days for projects with more than 25 units). Failure to comply with these deadlines is deemed to be a violation of the Housing Accountability Act. In addition, by January 1, 2024, the City must allow for post-entitlement phase permits to be submitted on-line and meet other procedural requirements.

Residential projects in commercial zoned parcels - AB 2011 and SB 6

AB 2011 and SB 6 were both enacted in order to allow residential development on a streamlined basis in areas zoned for commercial development. AB 2011 creates two new streamlined processes: one for 100% affordable projects and one for mixed-income projects that each define specific development standards for qualifying projects. Both processes require ministerial review, which means that California Environmental Quality Act or CEQA will not apply. SB 6 does not create a new development review process, but it enables residential projects to qualify for SB 35 on commercially-zoned parcels. Projects that use either AB 2011 or SB 6 will also be subject to defined labor standards.

Updates to recent developments in land use laws that are applicable to the City was presented to City Planning Commission and the public on June 15, 2023 and can be viewed here. These laws include changes to the accessory dwelling unit processes, Senate Bill 9, Assembly Bill 2234 Post-Entitlement Streamlining timeline, Assembly Bill 2097 Parking Limitations, Assembly Bill 2011 and Senate Bill 6 Residential Development in Commercial Zones, and Updates to Density Bonus laws such as Assembly Bill 682, 2334, and 1551.

Parking requirements near public transit - AB 2097

In an effort to reduce development costs and reduce reliance on private automobiles, AB 2097 eliminates most minimum parking requirements near public transit stations. Specifically, if a development project is proposed within ½ mile of rail or bus rapid transit stations, ferry terminals served by bus or rail transit, intersecting bus routes with 15-minute peak headway times, and planned major transit stops included in the regional transportation plan, then it is exempt from minimum parking requirements.

On June 15, 2023, these bills were presented to the Planning Commission in a study session. For details, please refer to the Planning Commission meeting (VIDEO LINK and PDF)