The URL can be used to link to this page

Home My Public Portal About12) 9A Legislative UpdateDATE: TO: MANAGEMENT SERVICES DEPARTMENT MEMORANDUM January 21, 2020 The Honorabl e City Council AGENDA ITEM 9.A . FROM : Bryan Cook , City Manager 1 1 By : Brian Haworth , Asst. to the City Manager/Econ . Development Manager ~ SUBJECT: LEGISLATIVE UPDATE RECOMMENDATION : The City Counci l is requested to : 1. File this report on newly enacted state laws that will impact city services and policies ; 2. Receive a . prese ntation on newly enacted housing laws pertaining to accessory dwelling units and new affordable hous ing provisions ; and 3. Direct the City Manager to imp lement all required procedures and pol icie s i n alignment with new and applicable state laws . BACKGROUND: 1. On October 13 , 2019 , the recent leg islative session concluded with Governor Newsom signing more than 1,000 bills into law effective January 1, 2020. 2 . On November 19 , 2019 , staff presented Council with a preliminary analysis of new state laws that will impact city services and polic ies . Given the amount of ambigu ities associated with three series of sweeping legislation-affordable housing , access ory dwelling units and worker reclass ification-staff was directed to return to Council in January 2020 with more definitive analyses . (Note : Council discussion on worker reclassification legislation is on hold pending lawsuits statewide , which could ta ke years to resolve.) City Council January 21 , 2020 Page 2 of 3 ANALYSIS: In response to California's affordability crisis , more than 30 individual pieces of housing leg is lation were recently enacted into law. These new bills categorically resulted in more tenant protections , reforms to the state 's Density Bonus Law and ministerial approval process, and additional funding mechanisms for affordable housing production-j ust to name a few. Worth noting are two housing legislative packages that will impact the City's plann ing and development policies. Summarized below and the focus of tonight's discussion (Attachments "A " and "8 "), the legislation will increase local housing production , and preempt local control on land use policies and development decisions . • Accessory Dwelling Units : State law now makes it easier for property owners to construct accessory dwelling units (ADUs) on residentially zoned properties . Single- family homes can be converted into three separate housing units-the main home, an ADU and junior ADU-while multiple units would be permitted on properties with multi-family units. The law also cuts a municipality's permitting deadline from 120 to 60 days; and bans city ADU ordinances from imposing minimum lot sizes for construction , requiring replacement parking , and other building-size restrictions . • Affordable Housing Construction : Effective until 2025 , new laws ban housing construction moratoriums, prohibit density reductions , and allow the demolition of affordable and rent-controlled housing only if the demolished units are replaced . Municipalities are also banned from changing permit requirements or increasing development fees once a project applicant has submitted preliminary deve lopment plans . Similar to new ADU provisions, the permitting of affordable housing units must be streamlined ; furth ermore , proposed housing projects with 100% afford ab i lity for low-income households can qualify for additional density bonuses and other development concessions . Finally , provided for Council 's information is a revised list of new legislation that will impact municipal services and policies (Attachm ent "C "). This amendment identifies four additional bills that will affect the City 's community development and public safety functions : • Parking standards for electric vehicles , which will alter current minimum park ing requirements . • Changes to the busin ess license renewal process , which requires certa i n businesses to first demonstrate NPDES permit coverage for stormwater discharges . • Cultural competen cy into the next update of city emergency plans to ensure the integration of interpreters in all emergency communications . City Council January 21, 2020 Page 3 of 3 • A general plan amendment to the safety element that addresses , among other things , evacuation routes related to identified fire and geologic hazards . CITY STRATEGIC GOAL: Actions contained in this report align with the strategic goal of good governance . FISCAL IMPACT: There is no fiscal impact associated with the requested Council actions . Nevertheless , implementation of the state 's new provisions will impose operational expenses , the amount which is currently unknown . An itemized list of est imated expenses will be presented as part of Council 's mid-year budget review on February 18, 2020 . ATTACHMENTS: A . Fact Sheet: ADU Laws B. Fact Sheet: Housing Production Laws C . Amended List of Enacted Legislation ALLOWS: Applies by right only to residential and mixed-use zones MODIFIES: Applies to city municipal code and zoning standards FORMALIZES: Applies to CY 2020 work program and policies ATTACHMENT A COUNCIL FACT SHEET ACCESSORY DWELLING UNIT (ADU) LAWS AB 68 I AB 69 I AB 670 I AB 671 I AB 881 I SB 13 A junior ADU (<500 SF within an existing single-family structure) Applies even if the city does not have an ADU ordinance A junior ADU and ADU (from the minimum unit size up to 1,000 SF) on the same lot The junior ADU must be within the existing living area or combined with an ADU Mu ltiple converted ADUs on lots with a mu ltifami ly dwel li ng Allows one ADU and up to 25% of the existing multifamily dwelling units thereafter Up to two detached ADUs on lots with a multifamily dwelling Subject only to a 16-foot he1ght lim it and 4-foot setback Multi-fami ly ADUs may be built in the non-habitable part of dwelling units Ex : garages, carports, basements and attics Development impact fees No impact fees for ADUs <750 SF Larger ADU to be charged in proportion to the primary home (-25% of fees) Lot requirements Eliminates criteria for lot coverage, floor area ratio, open space and minimum lot size Cannot prevent the construction of an BOO SF unit if it meets other zoning standards Parki n g standards No longer requires the replacement of off-street parking spaces (for the primary home) ADU proposals >J-2 mile from publ1c transit are to provide a parking space Setback requirements No setbacks reqwred for an ex1sting structure (or portion) converted to an ADU Four-foot side and rear setbacks required for new ADU structure; conditions apply Pl ann ing reviews Removes the owner -occupancy requirement for ADUs until 2025 Establishes a minister ial 60-day review period Complete applications not acted upon withm 60 days are deemed approved Can be prohibited if water and sewer is inadequate or if there are traffic and safety i mpacts Requires staff to consult with water and sewer providers prior to permitting an ADU ADUs may not be ministerially approved if setbacks are insufficient for fire safety Re quires certificate of occupancy first for primary residence (followed by ADU) Cannot condition ADU permit approval on nonconforming zoning conditions Allows ADUs on single-family properties governed by HOAs!CC&Rs A requirement for a local ADU ord in ance, su bject to HCD review Adopt urgency ordinance to bring existing code into compliance with state law Amend planning review protocol for ADU applications Develop FAQ to explain ADU provisions to the community Continue to monitor state legislation for necessary code and policy amendments An amnesty program for non -permitted ADUs Property owners have five years to address non-health and safety related code issues Evaluate c urrent cases; include provision into the city's code enforcement program Needed rev i sions to the Housing Element and Building Code Housing Element to include a plan that incentives/promotes ADUs at affordable rents Building Code to reflect the state 's small home building standards i n 2021 PROHIBITS: Applies to projects that submit a complete application after Jan. 1, 2020 ALLOWS: All provisi ons throughout sunset in 2025 ex cept for densities associated with 100% affordable housing projects REQUIRES: Applies to CY 2020 work program and polic ies COUNCIL FACT SHEET HOUSING PRODUCTION LAWS AB 1763 I SB 330 ATTACHMENT 8 Changes in land use or development standards to reduce density Applies to existing land use designations as of Jan . 1, 2018 Allows less intensive land use changes if densities are changed elsewhere A mor atorium or simi l ar restriction on housing development Includes mixed-use development Imposing design review standards establi shed after Jan. 1, 2020 Only if standards are not objective Caps on population or housing construction Changes to project-related zoning and development standards Only after a preliminary appl1cat1on IS subm1tted Increases in exactions or fees during a project's application period Allows automatic mflat1on mcreases by resolution or ordmance More t ha n f ive publi c h earings on a p roposed h ous i ng development Only if project complies with objective general plan and zoning standards Goes into effect at the t1me an application is deemed complete Jurisdiction to approve or disapprove application at any of these heanngs Does not mclude appeals Housing projects to be subject to new standards Applies to projects that do not start construction withm 2.5 years of final approval Includes modified proJects that add 20% or more residential un its or square footage 1111 These prov1s1ons are exclusive of density bonuses A clear determ ination of what constitutes a "preli minary application" Jurisdictions have one chance to identify incomplete items in the mitial application Missing items are limited to those on the jurisdiction's submittal requ irement list Jurisdictions may not request additional info from the initial list of m issing items HCD to adopt a form that Identifies requirements for a complete initial application Housing projects to be denied if they do not replace on-site existing units Applies to the greatest number of units that existed on-s1te m the last five years Existing residents can occupy un its until six months before start of construction Developer may be requ~red to provide relocation benefits and right of first refusal New units can meet specified inclusionary housing requ~rements Applicants get a streamlined permit review For general projects and those requiring CEQA review: 90 days For projects w1th at least 49% affordable units: 60 days Applicants have 180 days to provide info after submitting a preliminary application Additiona l density, concessions, incentives an d height i ncreases Provision amends the state's ex1sting dens1ty bonus law Applies to proJects that consist of 100% affordable housing "11 Provision allows up to 20% of units for moderate-income households All affordable un its reqUire 55-year affordability covenants Provides a potential 80% increase in base density and up to four incentives Eliminates the parking requirement for rental units Allows unlimited density bonuses fo r quali fying projects near major transit stops Added duties for local planning officia ls Adopt an ordinance specifying compliance with AB 1763 (additional density, etc.) Establish internal procedures and timelines for processing applications; ant1c1pate covenants Continue to monitor state legtslatton for necessary code and policy amendments ATTACHMENT C AMENDED: ENACTED 2019 STATE LEGISLATION IMPACTS T O CITY SER VIC ES & PO LICI ES EXCLU DES NEW ADU AND AFFORDABLE HOUSING BILLS HUMAN RESOURCES Em ployment D iscrimination Cla im s (A8 9) Extends the statute of limita t i on from one to three y e ars for complaints alleging employment d iscriminati on under the Fair Employment Housing Act. (Note: T his l im itations period is six times the length of the federal standard and three t imes the length of th e cu rrent state standa rd.) Does not apply to previous ly lapsed claims. Flexib le Spendi ng Accounts (A 8 1554) Requires that employers now prov ide two d ifferent f o rm s of notice (o ne w h ich may be electronic) to employees participating in a flexib le spending account of upcoming with drawal dead lines toward the end of the benefit/plan year. H arassment Pre vention Trai nin g (5 8 778) Re quires employers with five or more employees to provide harassment prevention training and education to new non-supervisory employees within six months o f hire and to new supervisory employees within six months o f assuming a supervisory position. Mandates e mployers w ho have p r ovided such tra in ing to an employee in 2019 to provide r efresher tra in i ng to th at employee every two years th ere after Lactation Accommodation (58 1421 Oblig ates empl oyers t o provide a private, safe lactation room with a seat, electricity and a surface, that is not a b athroom and is in proximity to t he employee's workstation. Employers must a lso prov ide access to refrigeration or a cooler, and runnin g wa ter near the workspace. Livi ng Organ Donation (A 8 1223) Requires an employer to provide add itional, unpaid leave team-of up to 30 days to a year-to an employee who is donating an organ. Publ i c employees are required to first exhaust all available sick leave b efore taking unpaid leave. Occupational In juries and Illness (A8 1804) Requ ires employers to report se ri o u s injury, illness or death im mediately through an online mechanism estab lish ed by the Di v ision of Occu pationa l Safety and Health or to r e port by telephon e . Pa id Family Leave (A 8 831 Increases p ai d fa mily leave from six to eig ht weeks beginn in g July 2020. Also requires a task fo rce to d evelop a proposal that extends the duration of Paid Fa mily Leave benefits to six months by fisca l year 2021-22; and t o address j ob protections for workers and t he goal of providi ng a 90% wage replacement rate for low-wage workers utilizing t he Paid Fa mily Leave program. REVISED JAN. 8, 2020 AMENDED: ENACTED 2019 STATE LEGISLATION IMPACTS T O C ITY SER VI CES & POLI CI E S EXCLUDES NEW ADU AND AFFORDABLE HOUSING BILLS Worker Classification (A B 5) Adopts as l aw the ABC test f r om the Dynamex v. S u perior Court case as a way to classify whether workers are employees or independent contractors, base d on whether the h iring entity controls the work , if the workers does tasks out side the usual course o f th e h iri ng entity's business, and wh ether the worker performs similar work for o th er cu stomers. Applies t o A BC test to t he wage orders, labor code, unemployment insurance code-and effective July 1, 2020, workers' compensation laws. PLANNING & DEVELOPMENT Parkin g Stalls: El ectric Veh icl es (AB 1 1 00) Counts parking stalls served by electric v ehicle (EV) charg ing equ ipment as standard parking spaces for purposes of complying with a local jurisdiction 's minimum p ark i ng requirement; stalls served by EV charg ing equipment shall count as at least two standard pa rk ing spaces. Stormwater D ischarge (58 205) Requ ires applicable facilit ies to enroll in the in dustria l stormwater perm it (NPDES) when ap p lying for or renewing a business license. Requires an agency to develop a provisiona l l icense procedure fo r business license re n ewa ls, which al lows businesses three months to comply. PUBLIC SAFETY Cultural Com pet ency (58 160) Requ ires local j urisdictions, upon the next update to its emergency plans, to incorporate a cu ltura l competence into its emergency plans by in tegrating interpreters in a ll emer gency communications. T his includes qualified represent ativ es from communit y gro u ps during the pl anning process, and using cultural ly appropria t e resources w h en preparing community membe rs for em e rgencies or d isas ters. Safety Element (AB 7 4 7) Manda t es lo cal jurisdictions, by Ja n . 1, 2022, to incl ude a safety el em ent in their gene ral land use plans. Emergency scenarios to be addressed include evacuation routes, geologic ha zards, f looding, wildland and urban f i res, and climate adapt ation and resilience strateg ies . REVISED JAN. 8, 2020