Chapter 17.910 — SB 9 – Two-Unit Projects

• A. Owners/lienholders. Only individual property owners may apply for a two-unit project. Any person with a security interest in, or other senior lien against, the lot to be developed with a two-unit project must consent and subordinate to recordation of the restrictions resulting from the two-unit project against the title of the property.

• B. Application. An application for a two-unit project must be submitted on the City's approved form. Only a complete application will be considered. The City's application form shall, at a minimum, require the applicant to submit the following:

  1. Evidence that the applicant is an individual property owner.

  2. If applicable, compliance with the consent and subordination requirements provided in Subsection A above.

  3. Proof that none of the circumstances set forth in Section 17.910.030F (Historic properties and districts) and Section 17.910.030G (Impact on protected housing) are present.

  4. A signed affidavit indicating that the applicant acknowledges and agrees that the lot will be used for residential purposes only.

  5. Proof of any inspections required under Section 17.910.030M.1.

  6. Proof that the requirements of Section 17.910.040E (Demolition cap) are satisfied.

  7. If the lot would result in the demolition or alteration of existing housing, proof that no housing on the lot has been occupied by a tenant within the last three years.

  8. A title report, litigation guarantee or other documentation showing evidence of any senior security interests or liens against the property.

• C. Application fee. The City may establish a fee to recover its costs for adopting, implementing, and enforcing this chapter, in accordance with applicable law. The City Council may establish and change the fee by resolution. The fee must be paid with the application. In the absence of a fee specific to two-unit projects, the applicant shall pay the fee related to site plan review. The fee may be in the form of a deposit for the City's actual costs incurred. Nothing in this section shall limit the requirements to pay any other City fees, including building permit processing fees.

• (Ord. 24-13, 10/1/2024)

A two-unit project shall comply with all requirements of this chapter, all objective development standards set forth in this Code or otherwise established by the City, and all other requirements that are not in conflict with Government Code section 65852.21 . (Ord. 24-13, 10/1/2024)

The Director shall deny an application for a two-unit project if any of the following are true:

• A. Development standards. The two-unit project does not satisfy the requirements of Section 17.910.020 (Objective Development Standards) or Section 17.910.040 (Standards Specific to Two-Unit Projects).

• B. Lawful subdivision. The lot was not legally subdivided.

• C. Zone. The lot is not zoned for single-family residential uses. If the lot is designated as a specific plan area, then it will be considered to be zoned for residential uses under this section if the lot is within a portion of the specific plan where a single-family residence is a permitted use.

• D. Statutory exemptions. The lot does not satisfy the requirements of Government Code Section 65913.4(a)(6)(B) through (K) . [See Government Code Section 66411.7(a)(3)(C).]

1. Protected habitat. The exemption under Government Code Section 65913.4(a)(6)(J) shall apply to all land within the MSHCP Area.

E. Inspection.

1. Very high fire hazard severity zone. For lots within a high fire hazard severity zone, the application does not include proof of an inspection by the City's building official or other City designee confirming full compliance with all existing fire and building code standards.

2. Earthquake fault zone. For lots within a delineated earthquake fault zone, the application does not include proof of an inspection by the City's building official or other City designee confirming full compliance with applicable seismic protection building code standards. Such inspection shall include all standard City requirements for development within an earthquake fault zone.

• F. Historic properties and districts. The lot is a historic property or within a historic district that is included on the State Historic Resources Inventory or is within a site that is designated by ordinance as a city landmark or as a historic property or within a historic district.

• G. Impact on protected housing. The two-unit project requires or includes the demolition or alteration of any of the following types of housing:

  1. Housing that is income-restricted for households of moderate, low, or very low income.

  2. Housing that is subject to any form of rent or price control through a public entity's valid exercise of its police power.

  3. Housing, or a lot that used to have housing, that has been withdrawn from rental or lease under the Ellis Act (Government Code Sections 7060 through 7060.7 ) at any time in the 15 years prior to submission of the urban lot split application.

  4. Housing that has been occupied by a tenant in the last three years.

• H. Unit count. The applicant proposes to construct more than two units, to add a unit to a lot that already contains two or more units, to add two or more units to a lot with at least one existing unit, or the lot violates Section 17.910.040B .

• I. Specific adverse impacts. If the Director makes a written finding, based on a preponderance of the evidence, that the project would have a "specific, adverse impact" on either public health and safety or on the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact.

  1. A specific adverse impact includes, but is not limited to, the following:

     • a. The lot is within the MSHCP Area, which is based on the specific and defined environmental impacts on protected species and habitat, as well as established procedures for mitigating and avoiding such impacts as set forth in the MSHCP.

     • b. The two-unit project would result in a driveway or other vehicular access that does not provide safe access into traffic or onto the lot from traffic.

  2. The City Council may adopt, by resolution or ordinance, guidelines that set forth additional circumstances that create a rebuttable presumption that a project will have a specific adverse impact on either the public health and safety or on the physical environment. Nothing herein shall hinder or constrain the Director's discretion to make written findings, based on a preponderance of the evidence, that a project would have a specific adverse impact on either public health and safety or on the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact.

• J. No legal requirement. If for any reason, including but not limited to repeal of Government Code Section 65852.21 , initiative or referendum, court decision or any circumstance in which Section 65852.21 does not obligate the ministerial approval of a two-unit project, or if for any reason the Director is not required to ministerially approve a two-unit project.

• (Ord. 24-13, 10/1/2024)

• A. Applicability. The following development standards shall apply to two-unit projects approved under this chapter. This section shall govern in the event of a conflict between this section and any other development standard contained outside of Chapter 17.910 (SB 9 – Two-Unit Projects).

• B. No multi-family dwellings. A two-unit project shall not result in the creation of a multi-family dwelling. "Multi-family dwelling" or "multi-family lot" means a property that has two or more permitted attached dwellings on a single lot. Two-unit projects shall only consist of two detached dwellings on a single lot.

• C. Dedications/offsite improvements. The applicant shall dedicate right-of-way and impose offsite improvements as would be required for any subdivision dividing the property into two lots or as otherwise would be required under any City law, regulation or policy, including but not limited to the dedication of right-of-way for, and/or improvement of, sidewalks, curb, gutter, streets, or stormwater facilities.

• D. Unit size. A unit developed under this chapter shall be limited as follows:

  1. The total floor area of each unit that is developed under this chapter must be: 1) less than or equal to 800 square feet and 2) more than 500 square feet.

  2. A unit that was legally established on the lot prior to the two-unit project and that is larger than 800 square feet in floor area is limited to the lawful floor area and structural footprint at the time of the two-unit project. The unit may not be expanded.

  3. A unit that was legally established prior to the two-unit project and that is smaller than 800 square feet in floor area may be expanded to 800 square feet in floor area after or as part of the two-unit project.

• E. Demolition cap. The two-unit project may not involve the demolition of more than 25% of the existing exterior walls of an existing dwelling unless the site has not been occupied by a tenant in the last three years.

• F. Setbacks.

  1. Subject to Subsection F.2 and 3 below, all setbacks must comply with the standard setbacks for its location.

  2. Only to the extent necessary to comply with Government Code Section 65852.21 , no setback is required for an existing legally established structure or for a new structure that is constructed in the same location and to the same dimensions as an existing legally established structure.

  3. A unit may encroach into the side or rear setback only if strict application of the setback standard would have the effect of physically precluding the construction of up to two units on the lot or that would result in a unit size of less than 800 square feet in floor area, in which case the encroachment into the setback shall be only as necessary to enable construction of the unit or units at a maximum size

of 800 square feet in floor area. However, in no event may any unit be constructed without at least providing a four foot setback from the side and rear lot lines.

• G. Parking. Subject to Government Code Section 65852.21(c)(1)(A) and (B) , each new primary dwelling unit must provide at least one offstreet parking space per unit. This section does not preclude an applicant from complying with the standard parking requirements of the Development Code.

• H. Nonconforming conditions. A two-unit project may only be approved if all nonconforming zoning conditions are corrected.

• I. Utilities. Each dwelling unit on the lot must have its own direct utility connection to the utility service provider.

  1. Each dwelling unit on the lot that is or that is proposed to be connected to an onsite wastewater treatment system, the applicant must: 1) demonstrate that each primary dwelling unit will have its own septic tank and leach line; 2) submit a percolation test completed within the last five years or, if the percolation test has been recertified, within the last 10 years. This section shall not be interpreted to allow an onsite water treatment system where a sewer connection is available or required.

• (Ord. 24-13, 10/1/2024)

• A. Separate ownership or conveyance. Primary dwelling units on the lot may not be owned or conveyed separately from each other.

• B. Condominiums. Condominium airspace divisions and common interest developments are not permitted within the lot.

• C. Fee interests. All fee interest in the lot and all the dwellings must be held equally and undivided by all individual property owners. (Ord. 24-13, 10/1/2024)

• A. Residential-only. No nonresidential use is permitted on the lot.

• B. No short-term rentals. No dwelling unit on the lot may be rented for a period of less than 30 days.

• C. Owner occupancy. Unless the lot was formed by an urban lot split, the individual property owners of a lot with a two-unit project must occupy one of the dwellings on the lot as the owners' principal residence and legal domicile.

(Ord. 24-13, 10/1/2024)

• A. Required provisions. The owner must record a deed restriction with senior priority for the benefit of the City, in a form acceptable to the Director and the City Attorney, that provides constructive notice of the restrictions resulting from the two-unit project and does each of the following:

  1. Gives notice that the two-unit project was created pursuant to this chapter.

  2. Gives notice of any site limitations resulting from the two-unit project, including but not limited to restrictions on off-street parking, the size of units on the parcel and on the ability to obtain a standards modification for the parcel.

  3. Expressly prohibits any development or construction on the parcel that would be inconsistent with this chapter.

  4. Expressly prohibits any rental of any dwelling on the property for a period of less than 30 days.

  5. Expressly prohibits any nonresidential use of the lot.

  6. Expressly prohibits any separate conveyance of a primary dwelling on the property, any separate fee interest, and any common interest development within the lot.

  7. Expressly requires the individual property owners to live in one of the dwelling units on the lot as the owners' primary residence and legal domicile.

  8. Identifies the City as an intended third-party beneficiary with the right, but not the obligation, to enforce its terms and provisions.

• B. Mortgagee consent and subordination.

  1. The owner shall obtain the consent of any person holding a security interest in the lot, or any other senior lienholder, to subordinate such interest to the deed restriction, and the subordination agreement shall be recorded together with the deed restriction.

  2. The Director may require the owner to submit a title report, litigation guarantee or similar document in order to show proof that the deed restriction will be in senior position.

• C. Building permit. The Director shall not issue a building permit for any two-unit project unless the applicant provides a recorded copy of a deed restriction and applicable subordination agreement that satisfies the provisions set forth in Subsections A and B above.

(Ord. 24-13, 10/1/2024)