Report Prepared by: Leah Brown, Management Analyst, Development Services
Title
SUBJECT: Public Hearing - Adoption of a General Rule Exemption; and, Introduction of an Ordinance Amending Chapters 20.08, 20.42, and 20.90 of the Merced Municipal Code to Revise Regulations Regarding Accessory Dwelling Units, Junior Accessory Dwelling Units and Tiny Homes on Wheels; and Introduction of an Ordinance Amending Chapter 20.56 of the Merced Municipal Code (Density Bonus) to Bring the Codes into Compliance with Current State Law and to Clarify Ambiguities in the Chapter
REPORT IN BRIEF
Considers the adoption of a General Rule Exemption and introduction of an ordinance that would modify the City’s requirements for Accessory Dwelling Units to meet state laws, Junior Accessory Dwelling Units, and Tiny Homes on Wheels; and introduction of an ordinance amending the Density Bonus chapter to bring that code into compliance with current state law and to clarify ambiguities in the chapter.
RECOMMENDATION
City Council - Adopt a motion:
A. Adopting a General Rule Exemption regarding Environmental Review #23-24; and,
B. Introducing Ordinance 2555, An Ordinance of the City Council of the City of Merced, California, amending Chapters 20.08, 20.42, and 20.90 of the Merced Municipal Code to revise regulations regarding accessory dwelling units, junior accessory dwelling units and tiny homes on wheels; and,
C. Introducing Ordinance 2556, an Ordinance of the City Council of the City of Merced, California, amending Chapter 20.56, “Density Bonus,” of the Merced Municipal.
Body
ALTERNATIVES
1. Introduce the Ordinances, as recommended by the Planning Commission and staff; or,
2. Introduce the Ordinances, subject to modifications by City Council (identify specific items to be amended in the motion); or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items (to be addressed in the motion); or,
5. Continue to a future City Council meeting (date and time to be specified in motion).
AUTHORITY
Merced Municipal Code Section 20.80, “Zoning Ordinance Amendments,” spells out procedures for amending the Zoning Ordinance. Sections 65852.2 and 65852.22 of the California Government Code address accessory dwelling units.
CITY COUNCIL PRIORITIES
As provided for in the 2023-2024 Adopted Budget and the City Council’s Pro-Housing Policies.
DISCUSSION
The City Council has identified housing as a main priority, they have adopted Prohousing Policies, and are working towards a State Prohousing Designation. To address the City's Prohousing strategy, a variety of tools have been implemented to encourage development of residential units, more affordable housing development, an Affordable Housing Fund, and more variety in choices of dwelling unit types. Updates to the City's Zoning Ordinance have been proposed to facilitate the production of housing that encourages affordability by design, expansion of housing choices, and increased flexibility for housing options and development.
The proposed Ordinance Amendments seek to support the City Council's direction to provide increased housing choices. Additionally, the updates are intended to bring the Merced Municipal Code into compliance with current State laws on Accessory Dwelling Units and Density Bonus laws. The recommended code additions include sections on Tiny Homes on Wheels as Accessory Dwelling Units and Smaller Homes on smaller lots to encourage more in-fill development.
The proposed changes are summarized below. The Draft Ordinances are provided at Attachments 2 and 3:
1. 20.08 - amends Table 20.08-1 within Chapter 20.08 to identify additional permitted uses and note the additional regulations for multiple-family dwelling units.
2. 20.08.060 - adds Section 20.08.060 to the existing Residential Zoning Districts chapter to create a process for Small Houses, Small Lots and Small House Villages, thus reducing costs and providing more housing options for different income levels. This Ordinance differs from the existing Small Lot Ordinance (Chapter 20.40) because it permits smaller lot configuration standards, such as lot size, depth, and width, without compromising other development standards such as setbacks.
3. 20.42 - amends existing Chapter 20.42 (Accessory Dwelling Units) with minor modifications to comply with State Law and allow for Tiny Homes on Wheels (THOW) as a form of detached ADUs.
New ADU laws went into effect on January 1, 2023, requiring changes to Merced's ADU Ordinance to make minor clarifications and additions to the existing ordinance. The existing ADU Ordinance has been modified to clarify the height requirements for attached ADUs to 25 feet and provides different height limits for detached ADUs that meet certain criteria. Currently, the Ordinance allows for a maximum height of 16 feet for detached ADUs; pursuant to the provisions of Assembly Bill (AB) 2221 and Senate Bill (SB) 897, the proposed Ordinance would allow detached ADUs near a major transit stop or high-quality transit corridor to be 18 feet with a maximum 2-foot increase to accommodate roof pitch. The proposed Ordinance would also allow a detached ADU up to 18 feet on a parcel with an existing or proposed multi-family, multi-story dwelling.
In an effort to stay ahead of ever-changing State law, a "blanket" statement has also been added to clarify that in the event the ADU Ordinance conflicts with current State law, the provisions of State Law prevail.
4. 20.42.060 - Tiny Homes on Wheels. This section is added to the ADU Ordinance and would allow Tiny Homes on Wheels (THOW) as a form of detached accessory dwelling unit. The section outlines the standards and provisions required of THOWs that differ from a conventional ADU. Due to the nature of the structure, THOWs are required to register with the California Department of Motor Vehicles. A THOW is also required to show certification demonstrating compliance with all applicable American National Standards Institute (ANSI) A119.2 standards, National Fire Protection Association (NFPA) 1192 standards, Recreational Vehicle Standards, and A119.5 Park Model Recreational Vehicle standards.
5. 20.56 - this proposed amendment would revise the existing Density Bonus Ordinance to make minor changes to comply with State Law. Effective January 1, 2023, Assembly Bill (AB) 682 added shared housing as eligible for density bonus. Additionally, Assembly Bill (AB) 1551, also effective January 1, 2023, readopted previous legislation that provided development bonuses to commercial projects that partner with affordable housing projects. Language has been added to Chapter 20.56 to support these changes.
In an effort to stay ahead of ever-changing State law, a "blanket" statement has also been added to clarify that in the event the Density Bonus Ordinance conflicts with current State law, the provisions of State Law prevail.
6. 20.90.020 - adds and revises specific definitions to facilitate the amendments listed above.
These amendments and additions do not relate to any physical development and, therefore, will not result in a physical change to the environment. Therefore, included for Council’s consideration is the Environmental Review #23-24 (General Rule Exemption) at Attachment 4. The approval of the proposed changes to the City’s Zoning Ordinance (Title 20 of the Merced Municipal Code), does not approve a specific project, but rather clarifies or creates a path forward for different housing developments as identified to create more affordability and variety in housing options within the City of Merced. Any individual project would be subject to review pursuant to the provisions of the Merced Municipal Code and any applicable State Law.
These amended and introduced changes to the City’s Zoning Ordinance went before the Planning Commission as a public hearing on August 9, 2023. After some public comment and discussion, the Planning Commission unanimously recommended adoption of these ordinances and the environmental review (Refer to the Planning Commission Resolution at Attachment 1). A concern about the rental term came up and was addressed: ADUs or JADUs may be rented, provided the rental term is at least thirty (30) continuous days or more. Non-continuous or transient occupancy is prohibited.
IMPACT ON CITY RESOURCES
No appropriation of funds is needed. This work was completed as a project funded by the SB2 grant.
ATTACHMENTS
1. Planning Commission Resolution #4120 with Findings
2. Draft Ordinance 2555
3. Draft Ordinance 2556
4. General Rule Exemption (Environmental Review #23-24)
5. Presentation