STAFF REPORT TO THE MARIN COUNTY PLANNING COMMISSION DEVELOPMENT CODE AMENDMENTS RELATED TO ACCESSORY LIVING AREAS

Recommendation : Recommend that the Board of Supervisors adopt amendments to the Marin County Development Code related to Accessory Living Areas

Hearing Date : July 11 , 2016

Agenda Item: 5 Project Planner: Jeremy Tejirian 415-473-3798 [email protected] Signature:

PROJECT SUMMARY

The proposed Development Code amendments would define, clarify and modify the County’s existing regulation of accessory living areas. A with a wet bar in a single family residence or residential accessory structure would be defined as an accessory living area, and up to three of them per property may be made available for rent. The development code already allows and accessory structures to have wet bars and to be rented without a permit, and no permit requirement is proposed in this Development Code amendment. The substantive changes to the current requirements are limited to restricting the number of wet bars that can be installed to a maximum of three per property and requiring that accessory living areas be leased for a minimum term of 30 consecutive days. Although no income restrictions are proposed, accessory living areas are generally affordable by design and encouraging them serves as one strategy for providing more diverse housing in the County with the minimum impacts to local communities. Neither the Development Code nor these amendments apply in the Coastal Zone.

BACKGROUND

Most cities and counties allow property owners to rent rooms in their , and many also allow small or wet bars to be installed in addition to the main of the residence. The Development Code currently allows up to three rooms in a single family residence to be rented and an unlimited number of wet bars or snack bars to be installed (wet

bars and snack bars have slightly different definitions, but are essentially the same thing). No special planning approvals are necessary for a property owner to rent a room with wet bar in their . Further, since wet bars are not full , living areas with wet bars are not treated as separate units; they are simply a part of the existing single-family residential use of the property.

In addition to room rentals and wet bars, the Development Code also allows Residential Second Units. Second Units have full kitchens and currently have a maximum area of 750 square feet. Unlike room rentals with wet bars, Second Units are regulated through a ministerial Second Unit Permit process and must provide additional parking. They may also be subject to utility hookup fees. Under state law, Second Units are treated as accessory to the primary residential use; they are recognized as units but do not increase the density calculation for a particular lot. However, the State allows local jurisdictions to count a certain percentage of their second units toward the units identified in their Regional Needs Housing Assessment (RHNA) allocation. The County maximizes the number of Second Units that can be applied to our RHNA allocation, and no changes to the Development Code will make a difference in terms of our RHNA allocation.

In recent months, Junior Accessory Dwelling Units (JADUs) have attracted both statewide and local interest. Assembly member Tony Thurmond (15 th Assembly District) has introduced AB 2406, which encourages JADUs by limiting the application of regulatory impediments, such as requiring additional parking for units near transit and public utility hookup fees (attachment 3). AB 2406 has been adopted by the State Assembly and the legislation is being considered by the State Senate as SB 1069. If enacted, these laws would rename “Residential Second Units” as JADUs, and would cause the County to review our current regulations for conformance with the JADU statute’s new allowances and requirements.

On the local level, a few of the Marin County cities that have adopted standards for JADUs ahead of State law being changed are Novato, Tiburon, and San Rafael. For purposes of comparison, the approaches these cities have used are briefly discussed below.

Novato. The City of Novato was the first city in Marin County to pass a JADU ordinance, which has served as a model for other Marin County cities. The ordinance outlines that JADUs need Zoning Administrator approval, be limited to 500 square feet in size, be located in a conversion of an existing , and comply with the limits on sink size, counter size, electrical service, and gas service. Only one JADU is allowed per home, no additional parking is required (although the existing parking cannot be substandard), and the homeowner is required to reside in the home with the JADU. Additionally, a JADU is not to be sold independent of the primary residence, a deed restriction is to be completed, and each unit must have an external and internal entrance.

Tiburon. Using the City of Novato’s JADU designations as a model, the City of Tiburon adopted a JADU ordinance. The Tiburon Municipal Code does not identify specific development standards for JADUs; instead, these standards are established through Council resolution. Council resolutions are easier to amend than the Code, which may have been a consideration for this relatively new use type. Development standards similar to those in Novato (e.g., unit size limitations, owner occupancy, deed restriction, etc.) apply to Tiburon’s JADUs.

San Rafael . In January 2016, the City of San Rafael approved a JADU ordinance. The ordinance imposes JADU standards similar to Novato (e.g., cannot exceed 500 square feet, conversion of an existing bedroom, deed restricted, required owner occupancy, 2

etc.). The approved ordinance included the elimination of two previous regulations: a 5,000 square foot minimum lot size threshold and an additional parking space requirement. The City plans to monitor the effects of the ordinance in order to gauge the positive and negative effects of JADUs.

PROPOSED AMENDMENTS

A comprehensive set of policy options to address the County’s affordable housing needs was first presented to the Board of Supervisors through a series of three public between October and December 2015. At the December 2015 the Board provided direction to staff as to which policy options should be pursued, which included Development Code amendments to improve and enhance the implementation of existing regulations allowing accessory living areas. The Board held a subsequent hearing on February 9 th , 2016 to confirm the timing and next steps for a number of policy options related to housing, and directed staff to prepare Development Code amendments related to accessory living areas.

Currently, the Marin County Code addresses Residential Second Units in Section 22.32.140, and allows them to contain full kitchens upon approval of a Second Unit Permit. Planning staff is not proposing to amend the regulations related to second units at this time, and it is important to avoid confusing second units and accessory living areas. The County would not treat accessory living areas as separate units, and would not attempt to credit them to our RHNA requirement. Planning staff recommends using the term “Accessory Living Areas” to draw a distinction between rooms with wet bars and JADUs.

While accessory living areas are not currently defined in the Development Code, both room rentals and wet bars are currently allowed as accessory to single family residences without a planning permit. Wet bars are characterized by small sinks, mini-refrigerators, and kitchen appliances, but do not include full ovens or other kitchen conveniences. There is currently no limit on how many wet bars may be on a property and they may be installed in a residence or in an accessory structure. However, a property owner is only allowed to rent up to three rooms, not including rooms in a legal Second Unit.

The proposed amendments include defining a room with a wet bar as an accessory living area and listing them in the land use tables for residential districts in Article II of the Development Code. The proposal would also clarify the definition of wet bars by combining aspects of the current definition of snack bar with the current definition of wet bar, and eliminating the definition of snack bar. These are not substantive changes; they simply clarify the existing code.

Amendments are also proposed to Development Code Section 22.32.130 – Residential Accessory Uses and Structures, which contain both clarifications and substantive modifications to the existing code. The substantive modifications restrict accessory living areas to three per property and specify that they cannot be used for short term rentals. The substantive changes are recommended to make the regulations easier to enforce and to ensure that accessory living areas are used to diversify housing opportunities rather than providing temporary lodging.

RECOMMENDATION

Approve the attached Resolution (attachment 1) recommending that the Board of Supervisors adopt an Ordinance amending Marin County Code Title 22, the Development Code, as shown in track changes format of the existing code sections (attachment 2). The following portions of the Development Code would be amended: 3

Chapter 22.08 – Agricultural and Resource-Related Districts (Land Use Table 2-1) Chapter 22.10 – Residential Districts (Land Use Tables 2-3, 2-4) Chapter 22.12 – Commercial/Mixed Use and Industrial Districts (Land Use Tables 2-6, 2-7) Chapter 22.14 – Special Purpose and Combining Districts (Land Use Table 2-9) Section 22.32.130 – Residential Accessory Uses and Structures Chapter 22.130 – Definitions (Accessory Living Areas, Room Rental, Snack Bar, Wet Bar)

Attachments:

1. Resolution recommending that the Board of Supervisors amend the Development Code 2. Exhibit A: Track changes version of proposed Development Code amendments 3. Factsheet about AB 2406

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MARIN COUNTY PLANNING COMMISSION

RESOLUTION NO. ______

A RESOLUTION RECOMMMENDING THAT THE MARIN COUNTY BOARD OF SUPERVISORS ADOPT AMENDMENTS TO MARIN COUNTY CODE TITLE 22 (DEVELOPMENT CODE) RELATED TO ACCESSORY LIVING AREAS

* * * * * * * * * * * * * * * * * * * * * * * *

SECTION I: FINDINGS

1. WHEREAS , the proposed Development Code amendments would define, clarify and modify the County’s existing regulation of accessory living areas. A room with a wet bar in a single family residence or residential accessory structure would be defined as an accessory living area, and up to three of them per property may be made available for rent. The development code already allows rooms and accessory structures to have wet bars and to be rented without a permit, and no permit requirement is proposed in this Development Code amendment. The substantive changes to the current requirements are limited to restricting the number of wet bars that can be installed to a maximum of three per property and requiring that accessory living areas be leased for a minimum term of 30 consecutive days. While no income restrictions are proposed, accessory living areas are generally affordable by design and encouraging them serves as one strategy for providing more diverse housing in the County with the minimum impacts to local communities. Neither the Development Code nor these amendments apply in the Coastal Zone.

2. WHEREAS , on July 11, 2016, the Marin County Planning Commission held a duly noticed public hearing to take public testimony and consider the Development Code amendments.

3. WHEREAS , the project is Categorically Exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to section 15061.b.3 of the CEQA Guidelines because it does not affect the physical environment.

4. WHEREAS , the project is consistent with the goals and policies of the Marin Countywide Plan because it helps furthers Housing Element Policy 1.1- Land Use, which states:

“Enact policies that encourage efficient land use regulations which foster a range of housing types in our community.”

Accessory living areas help achieve this policy while minimizing adverse effects to natural resources or community character. The amendments do not substantially modify the County’s regulations regarding living areas except to restrict their number and prohibit their use for short term rentals.

1 ADU CODE AMENDMENTS Attachment No. 1 PC Hearing July 11, 2016 SECTION II: ACTION

NOW THEREFORE, BE IT RESOLVED that Marin County Planning Commission recommends that the Board of Supervisors adopt an Ordinance amending Marin County Code Title 22, the Development Code, as shown in track changes format of the existing code sections in Exhibit A of this Resolution. The following portions of the Development Code would be amended:

1. Chapter 22.08 – Agricultural and Resource-Related Districts (Land Use Table 2-1) 2. Chapter 22.10 – Residential Districts (Land Use Tables 2-3, 2-4) 3. Chapter 22.12 – Commercial/Mixed Use and Industrial Districts (Land Use Tables 2-6, 2- 7) 4. Chapter 22.14 – Special Purpose and Combining Districts (Land Use Table 2-9) 5. Section 22.32.130 – Residential Accessory Uses and Structures 6. Chapter 22.130 – Definitions (Accessory Living Areas, Room Rental, Snack Bar, Wet Bar)

SECTION III: VOTE

PASSED AND ADOPTED at a regular meeting of the Planning Commission of the County of Marin held on this 11 day of July, 2016 by the following vote:

AYES: COMMISSIONERS

NOES:

ABSENT:

PETE THERAN, CHAIR MARIN COUNTY PLANNING COMMISSION

Attest:

Ana Hilda Mosher Planning Commission Recording Secretary

2 ADU CODE AMENDMENTS Attachment No. 1 PC Hearing July 11, 2016