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HomeMy WebLinkAboutZCA 11-04; SDU Rent Restrictions; Zone Code Amendment (ZCA)The City of Carlsbad Planning Division A REPORT TO THE PLANNING COMMISSION Item No. P.C. AGENDA OF: October 19, 2011 Application complete date: N/A Project Planner: Corey Funk Project Engineer: N/A SUBJECT: ZCA 11-04/LCPA 11-05 - SOU RENT RESTRICTIONS - A request for a recommendation of approval for a Zone Code Amendment and Local Coastal Program Amendment to amend the second dwelling unit rent restrictions located within Chapter 21.10 of the Zoning Ordinance. I. RECOMMENDATION That the Planning Commission ADOPT Planning Commission Resolutions No. 6836 and 6837 RECOMMENDING APPROVAL of ZCA 11-04 and LCPA 11-05 based on the findings contained therein. II.INTRODUCTION This proposal involves a City-initiated Zone Code Amendment and Local Coastal Program Amendment to amend the second dwelling unit rent restriction regulations located within Chapter 21.10 of the Zoning Ordinance. The purpose of this amendment is to no longer require certain second dwelling units (SDUs) to be rented at a rate affordable to low income households. This amendment does not apply to SDUs provided to satisfy the city's Inclusionary Housing Ordinance (IHO). The proposed amendments are consistent with applicable portions of the General Plan and maintain internal consistency within the Zoning Ordinance and the Local Coastal Program (LCP). With regard to the LCP amendment, the Zoning Ordinance is the LCP implementing ordinance; therefore an LCP amendment is necessary. However, no portion of the LCP land use plan document is being amended. HI. PROJECT DESCRIPTION AND BACKGROUND For the purposes of this report, SDUs can be divided into the following two categories: those that are built to satisfy the requirements of the IHO (inclusionary SDUs), and those that are not (non-inclusionary SDUs). • Inclusionary SDUs are one way to meet the requirements of the IHO. For residential projects with seven or more dwelling units, the IHO requires 15% of the units to be affordable to very low and low income households (see Attachment 3 for income group definitions). ZCA 11-04/LCPA 11-05 - SDU RENT RESTRICTIONS October 19, 2011 Page 2 • Non-inclusionary SDUs are typically either (1) added to an existing home by a homeowner, or (2) built by a developer or owner/builder along with a new single family home as an amenity. The Planning Commission voted on July 21, 2010 to recommend that the City Council direct staff to prepare an amendment to the Zoning Ordinance to exclude SDUs that are not built to satisfy the IHO from low income rent restrictions. At its May 17, 2011 workshop, the City Council concurred with this recommendation and directed staff to prepare the necessary amendments. As proposed, non-inclusionary SDUs will no longer be subject to any rent restrictions; however, inclusionary SDUs will continue to be subject to the requirements of the IHO. As indicated below, the majority of existing SDUs in Carlsbad are inclusionary SDUs: • Inclusionary SDUs - 176 • Non-inclusionary SDUs - 39 • Total existing SDUs - 215 The Housing and Neighborhood Services Department completes an annual SDU survey, which shows how SDUs in Carlsbad are being used. Responses to the 2011 SDU survey are indicated below (215 SDU owners were surveyed and 152 responses were received). • SDU is rented - 28% • SDU is used as housing for extended family - 44% • SDU is used for other purposes (e.g. home office) - 28% IV. ANALYSIS A. General analysis Currently, the Zoning Ordinance requires both types of second dwelling units to be rent restricted to low income households. As expressed by the Planning Commission during their July 21, 2010 meeting, the Commission considered the low income rent restriction on non- inclusionary SDUs to be unnecessarily burdensome on the individual homeowner. The primary purpose of existing zoning regulations that require all SDUs (non-inclusionary and inclusionary) to be rented at rates affordable to lower income tenants is to comply with state housing law, which requires the city to accommodate a minimum number of dwelling units affordable to moderate and lower income households. The city's Housing Element depends on the future construction of 80 SDUs (including inclusionary and non-inclusionary) to meet state requirements for affordable housing. However, the proposed amendment will not adversely impact the city's ability to comply with state housing law, provided the SDUs are affordable to at least moderate income tenants. ZCA 11-04/LCPA 11-05 - SDU RENT RESTRICTIONS October 19,2011 Page 3 • If the proposed amendment is approved, owners of non-inclusionary SDUs will be able to rent the units at a market rate. However, it is estimated by the city's Housing and Neighborhood Services Department that non-inclusionary SDUs will still be affordable to moderate income tenants (see Attachment 3) if a market rate rent is charged.1 Therefore, the city will still be able to comply with the state's affordable housing requirements. B. General Plan, Zoning Ordinance and Local Coastal Program Consistency The proposed amendment is minor and procedural in nature. No substantive changes to development standards, policies or programs are proposed. Staff has analyzed the proposed amendment and finds that, as demonstrated above, the proposed amendment does not prevent the city from complying with the state's affordable housing requirements and therefore does not conflict with the housing element. Additionally, it does not conflict with any other portion of the General Plan. An integral component of any Zoning Ordinance amendment is a requirement to find that the proposed amendments are internally consistent with the procedures and standards of the rest of the existing Zoning Ordinance that is not proposed for amendment, and that it is consistent with the Local Coastal Program. Staff has analyzed the proposed amendments and finds that the amendments are internally consistent with the other provisions of the Zoning Ordinance not being amended, and that the proposed amendments do not create any conflicts with the provisions of the Local Coastal Program. V. ENVIRONMENTAL REVIEW The proposed amendments are exempt from environmental review pursuant to CEQA Section 15061(b)(3), which exempts projects "where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment." Amending the zoning ordinance to exclude non-inclusionary second dwelling units from low income rent restrictions will not result in a significant effect on the environment. ATTACHMENTS; 1. Planning Commission Resolution No. 6836 (ZCA) 2. Planning Commission Resolution No. 6837 (LCPA) 3. Income group definitions and limits 4. Strikeout/underline version of the proposed Zoning Ordinance text amendment 1 Estimate of market rate rents for SDUs is based on U.S. Dept. of Housing and Urban Development's Fair Market Rents for San Diego County effective 10/01/2010, San Diego County Apartment Association data and staffs knowledge of the local housing market. ATTACHMENTS ZCA11-04/LCPA 11-05 SDU RENT RESTRICTIONS INCOME GROUP DEFINITIONS Very Low (<50% of Area Median Income) Low (50-80% of Area Median Income) Moderate (80-120% of Area Median Income) Above Moderate (> 120% of Area Median Income) See following page for related income group maximum rents Source: U.S. Department of Housing and Urban Development SAN DIEGO HOUSING COMMISSION INCOME AND RENT CALCULATIONS U.S. Department of Housing and Urban Development 2011 SAN DIEGO MEDIAN INCOME: ATTACHMENTS $74,900 Note: The table contains income limits for 2010 extremely tow, very towandlowineome, as adjusted for family size and other factors adopted and amended from time to time by the U.S. Department of Housing and Urban Development (HUD). HUD adjusted San Diego Very Lowlncome limits for a "high housing cost area" factor. family Size Unit Size ONE rwo THREE FOUR FFvE SIX SEVEN EIGHT STUDIO 1-BR 2-BR 3-BR 4-BR 5-BR 6-8R Baremely Low Income 30% AMI (Aijusted by HUD) ANNUAL GROSS INCOME' RENT2 TCftC** 117,200 $19,650 $22,100 $24,550 $26,550 $28,500 $30,450 $32,450 $430 $491 $553 $614 $664 $713 $761 $430 $461 $553 $639 $713 $786 35% AMI (.Adjusted by HUD) ANNUAL GROSS INCOME' RENT* TCAC«* $20,050 $22,900 $25,800 $28,650 $30,950 $33,250 $35,550 $3L800 $501 $573 $645 $716 $774 $831 $889 $502 $538 $645 $745 $832 $917 40% AMI (AdjvKtedbyHUD) ANNUAL GROSS ,_„,.,* INCOME' RENT* $22,950 $26,200 $29,500 $32,750 $35,350 $38,000 $40,600 $43,250 $574 $655 $738 $819 $884 $950 $1,015 $574 $615 $738 $852 $951 $1,049 Fami ty Size Urtt Size ONE rv«) THREE FOUR FWE SIX SEVEN EIGHT STUDIO I-BR 2-BR 3-BR 4-BR 5-BR 6-BR V^ry Louu Iricome 50% AMI (Aijgsted by HUD) ANNUAL GROSS Tr,,p,» "Low INCOME' RENT* HOME"' $28,700 $32,800 $36,900 $40,950 $44,250 $47,550 $50,800 $54,100 $718 $820 $923 $1 ,024 $1,106 $1,189 $1 ,270 $717 $768 $922 $1 ,065 $1,188 $1 ,31 1 $722 $774 $928 $1 ,073 $1,197 $1 ,321 $1 ,445 60% AMI (Adjusted by HUD) ANNUAL GROSS Tr4rp INCOME' RENT* $34,440 $39,360 $44,280 $49,140 $53,100 $57,060 $60,960 $64,920 $881 $984 $1,107 $1 ,229 $1 ,328 $1 ,427 $1 ,524 $861 $922 $1,107 $1 ,278 $1 ,426 $1,573 65% AMI (AJjustedbyHUO) ANNUAL GROSS "H£-i INCOME' RENT" HOME"' $37,300 $42,600 $47,950 $53,250 $57,500 $61 ,750 $66,050 $70,300 $933 $1 ,065 $1,199 $1 ,331 $1 ,438 $1 ,544 $1 ,651 $920 $987 $1,187 $1 ,362 $1 ,500 $1 ,637 $1,774 Family Sis Urit Size ONE TVWJ THREE FOUR FIVE SIX SEVEN EIGHT STUDIO I-BR 2-BR 3-BR 4-8R 5-BR 8-BR 70% AMI (AdjuaedbyHUO) ANNUAL CROSS INCOME' RENT"' $40,150 $45,900 $51 ,600 $57,350 $61 ,950 $66,550 $71,100 $75,700 $1 ,004 $1 ,1 48 $1 ,290 $1 ,434 $1 ,549 $1 ,664 $1 ,778 Low Income 80% AMI (Aijusted by HUD) ANNUAL GROSS INCOME' RENT' $45,850 $52,400 $58,950 $65,500 $70,750 $76,000 $81 ,250 $86,500 $1,146 $1,310 $1,474 $1,638 $1 ,769 $1 ,900 $2,031 100% £rea Median heoms (No HUDadjuarrent) ANNUAL GROSS INCOME' RENT3 $52,450 $59,900 $67,400 $74,900 $80,900 $86,900 $92,900 $98,850 $1,311 $1 ,498 $1 ,685 $1 ,873 $2,023 $2,173 $2,323 120% AMI (No HUDadjuament) ANNUAL GROSS INCOME' RENT' $62,950 $71,900 $80,900 $89,900 $97,100 $104,300 $111,500 $118,650 $1 ,574 $1 ,798 $2,023 $2,248 $2,428 $2,608 $2,788 " TCAC = Tax Credit /^location Committee 1. Annual Income = Gross annual income adjusted by family size for A-ea Median Income (£MI) level. May contain additional adjustments as determinec annually by HUD 2. Gross rent minus utility allowance = maximum cash rent. See the "San Diego Housing Commission Utility Alowance Schedule" to calculate the utility allovwince based on the project's actual utility mix 3. For projects v\ith multiple funding sources, use the lowest rents applicable and/or apply HUDs MTSP "Hold Harmless" policy. "LowHOME" and "High HOME" rents effective July 13, 2011 Note. Due to the Housing and Economic Recovery Ad of 2008 the data presented in this chart may not be applicable to projects financed vvth Section 42 Lowlncome Housing Tax Credits(LIHTC)or section 142 tax exempt private equity bonds (MTSP). If you believe your affordable housing project is affected by this change and have questions regarding the 2011 Rent S Income limits, please contact Irma Betanoourt at irmab@sdhc.org, This general income and rental rate information is derived from the U.S. Department of Housing and Urban Development very low income figures published May 31,2011 (revised June 31), 2011 for S an D lego County). H Otif Rents effective July 13,2011. S.-WFShareVNOFAWMI& Utility ChartsXZOl 1 Source: U.S. Department of Housing and Urban Development Revised:?/! 2/101 Lit. ATTACHMENT 4 ZCA 11-04/LCPA 11-05 SDU RENT RESTRICTIONS STRIKE-OUT/UNDERLINE1 Section 21.10.030 (R-l One Family Residential Zone, Second dwelling units) is proposed to be amended as follows: 21.10.030 Second dwelling units. A. The public good is served when there exists in a city housing which is appropriate for the needs of and affordable to all members of the public who reside within that city. Among other needs, there is in Carlsbad a need for affordable rental housing. Therefore, it is in the public interest for the city to promote a range of housing alternatives in order to meet the affordable rental housing needs of its citizens. This section is intended to provide a rental housing alternative by establishing a procedure to create new second dwelling units. B. The provisions of this section shall apply to single-family zones R-A, R-E and R- 1, areas designated by a master plan for single-family detached dwellings in P-C zones and lots within multifamily zones R-2, R-3, R-P, R-T, R-W and RD-M, which are developed with single- family residences. C. Second dwelling units developed within the coastal zone require a minor coastal development permit issued according to the provisions of Section 21.201.085 and a building permit. Second dwelling units outside of the coastal zone require a building permit. D. The completed minor coastal development permit and/or building permit application for a second dwelling unit shall include the following information: 1. The name(s) of the owner(s); 2. The address of the dwelling units; 3. The assessor's parcel number; 4. Building elevations and a general floor plan of the second dwelling unit; 5. A scaled drawing showing the lot dimensions, the location of the primary and second dwelling unit, location of all vehicular parking and the total square footage of both units; 6. Description and location of water and sanitary (sewer) services; and 7. An owner signed and notarized a Notice of Restriction, to be recorded against the property, declaring that: in conformance with 21.10.030.E.I 5 of this Chapter. •<L The property owner(s) shall reside in either the main dwelling unit or the second dwelling unit, unless a lessee leases both the main dwelling and the second dwelling unit; b, The obligations and restrictions imposed on the second dwelling unit per this Chapter are binding on all present and future property owners. 1 The version of Section 21.10.030 shown in this exhibit was adopted by the City Council on 7/27/10 as part of ZCA 07-02/ LCPA 07-03, but is still pending approval by the California Coastal Commission and is not yet effective. To view the version of Section 21.10.030 currently in effect, please see Agenda Bill No. 20,329 for ZCA 07-02/ LCPA 07-03 or view the Carlsbad Municipal Code at www. carlsbadca.gov. ATTACH ME NT 4 E. Second dwelling units shall comply with the following: 1. The second dwelling unit shall either be attached to the main dwelling unit and located within the habitable area of the main dwelling unit or detached from the main dwelling unit and located on the same lot as the main dwelling unit; 2. The second dwelling unit shall have a separate entrance; 3. The second dwelling unit must meet the setback, lot coverage and other development standards applicable to the zone which are not addressed within this subsection. In the coastal zone, any housing development processed pursuant to this chapter shall be consistent with all certified local coastal program provisions, with the exception of density, or as otherwise specified within this subsection; 4. Attached second dwelling units shall conform to the height limits applicable to the zone and detached second dwelling units shall be limited to one story, except that second dwelling units constructed above detached garages shall be permitted and shall conform to the height limits applicable to the zone; 5. Garage conversions are prohibited unless replacement off-street garage parking is provided concurrently and in compliance with the requirements of Chapter 21.44; 6. Second dwelling units shall not be permitted on a lot or parcel having guest or accessory living quarters, or a residential care facility. Existing guest or accessory living quarters may be converted into a second dwelling unit provided that all zoning and structural requirements are met; 7. One additional paved off-street (covered or uncovered) parking space shall be provided for the second dwelling unit and shall comply with the requirements of Chapter 21.44. The additional parking space may be provided through tandem parking (provided that the garage is set back a minimum of twenty feet from the property line) or in the front yard setback; 8. Adequate water and sewer capacity and facilities for the second dwelling unit must be available or made available; 9. All necessary public facilities and services must be available or made available; 10. The second unit may be rented and shall not be sold separately from the main dwelling unit unless the lot on which such units are located is subdivided. The lot upon which the second unit is located shall not be subdivided unless each lot which would be created by the subdivision will comply with the requirements of this title and Title 20; and further provided, that all structures existing on each proposed lot will comply with the development standards applicable to each lot; 11. The total area of floor space for an attached or detached second unit shall not exceed six hundred forty square feet; 12. The second dwelling unit shall be architecturally compatible with the main dwelling unit, in terms of appearance, materials and finished quality; 13. A second dwelling unit which conforms to the requirements of this section shall be allowed to exceed the permitted density for the lot upon which it is located and shall be deemed to be a residential use consistent with the density requirements of the general plan and the zoning designation for the lot; 14. Second dwelling units intended to satisfy an inclusionary requirement shall comply with the requirements of Chapter 21.85, including but not limited to the applicable rental rates and income limit standards. 4-Sr The owner shall sign and notarize a Notice of Restriction, to be recorded against ATTACHMENT 4 the property, declaring that: & —If the second dwelling unit is rented, the monthly rental rate shall not exceed the allowable housing expense of a low income household (defined: Section 21.85.020). b-. The property ovvner(s) shall reside in either the main dwelling unit or the second dwelling unit, unless a lessee leases both the main dwelling and the second dwelling unit; e-. The obligations and restrictions imposed on the second dwelling unit per this Chapter are binding on all present and future property owners.