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HomeMy WebLinkAbout8.1 Informational Report on Accessory Dwelling Unitsr DUBLIN CALIFORNIA STAFF REPORT CITY COUNCIL Agenda Item 8.1 DATE: TO: FROM: SUBJECT: December 3, 2024 Honorable Mayor and City Councilmembers Colleen Tribby, City Manager Informational Report on Accessory Dwelling Units Prepared by: Gaspare Annibale, Senior Planner EXECUTIVE SUMMARY: The City Council will receive an informational report on accessory dwelling units, including use of the City's permit -ready prototype plans, impact and building permit fee waivers, and production. STAFF RECOMMENDATION: Receive the report. FINANCIAL IMPACT: None. DESCRIPTION: Over the past several years, changes in State law have made it easier for homeowners to build accessory dwelling units (ADUs). In addition to ensuring that the City's Zoning Ordinance is consistent with State law, the City has taken further steps to encourage the creation of ADUs. Below is a summary of those efforts. Accessory Dwelling Unit Prototype Plans and Manual In June 2022, the City completed ADU prototype plans and an ADU Manual to help facilitate the construction of ADUs and eliminate the cost and time for homeowners to prepare their own plans. RRM Design Group, an architectural consulting firm, prepared the City's ADU prototype plans. There are eight different plans, including five detached ADUs and three plans for converting a garage to an ADU. The prototype plans include studios, one -bedroom, and two -bedroom ADUs that range in size from 224 to 909 square feet. The ADUs are available in three different architectural styles: Spanish, Traditional and Modern, which gives homeowners options for choosing the style, color and materials most compatible with the primary structure. The permit -ready prototype plans include floor plans, elevations, electrical and plumbing plans, structural calculations, and Page 1 of 4 1 preliminary energy calculations that have been reviewed for compliance with all required construction codes and are provided by the City to homeowners at no charge. The homeowner is responsible for preparing site -specific plans, such as a site plan and geotechnical report. These plans are estimated to save homeowners approximately $15,000 in architectural/design services, structural engineering services, and energy document preparation, as well as time. Pursuant to Assembly Bill 434 effective on January 1, 2025, cities are required to have preapproved ADU plans. The City's ADU prototype plans meet this requirement. The ADU Manual is a how -to -guide designed for homeowners who are not familiar with the development process or looking for information about ADUs. Contents of the ADU Manual include where to start, design considerations, ADU concepts and prototypes, implementation, glossary and resources. Fee Waivers Impact Fee Waiver Pursuant to Senate Bill (SB) 13, effective January 1, 2020, through January 1, 2025, ADUs less than 750 square feet are not subject to impact fees and ADUs 750 square feet or larger are subject to impact fees proportional to the primary dwelling unit. On March 25, 2024, SB 477 was approved by the Governor, which made non -substantive changes and reorganized various provisions of State law relating to the creation and regulation of ADUs. Included was removal of an end date for impact fee waivers, effective January 1, 2025. Staff will update the City's Impact Fee Schedule accordingly. Permit Fee Waiver To further incentivize ADUs, the City waived building permit fees for ADUs applied for between January 1, 2022, and December 31, 2026. This permit fee waiver excludes State surcharges for the Strong Motion Instrumentation Program (SMIP) and Green Building fees and does not apply to ADUs built to satisfy obligations under the City's Inclusionary Zoning Regulations. Permit fees are waived for ADUs less than 750 square feet and ADUs 750 square feet or larger that are deed restricted as lower -income units for a period of 55 years. This results in savings of approximately $2,500 to $6,000 depending on the valuation of the ADU. The City Council may choose to further extend the provisions of the Permit Fee Waiver beyond December 31, 2026. Marketing Efforts The City launched an ADU webpage in 2021 as a one -stop -shop for information and resources to assist residents with building an ADU on their property. Two key features of the webpage include the permit -ready prototype plans and the ADU Manual. This webpage also includes a summary of the City's efforts to incentivize ADUs, information on impact fee and permit fee waivers, and other resources. The City has posted articles about the ADU prototype plans and fee waivers in news briefs, annual newsletters and on social media sites. In addition, in April 2024, Staff participated in the Alameda County Assessor's Office Homeowners Fair. Staff provided a presentation on building ADUs in Dublin, shared resources available to homeowners, including the prototype plans, ADU Manual, and fee waivers, and provided informational materials at the City's booth. Accessory Dwelling Unit Production Page 2 of 4 2 Since January 2022, the City has received 44 building permit applications for ADUs as shown in Table 1 below. Of the 44 applications, 40 received a permit fee waiver (39 were for ADUs that were less than 750 square feet, and one was larger than 750 square feet but was deed -restricted as a lower -income unit). The permit fees waived by the City total $166,009. Permits were issued for 23 ADUs and impact fees were waived for 22 of those ADUs (21 ADUs were less than 750 square feet, one ADU was larger than 750 square feet and deed -restricted as a lower -income unit, and one ADU was larger than 750 square feet but not deed -restricted as a lower -income unit). Two applicants decided not to proceed with construction of their ADU after their permits were issued. Table 1: ADU Building Permit Activity (January 2022 - November 2024) Status Number of ADUs In Review 14 Under Construction 14 Completed 7 Cancelled or Expired 9 TOTAL 44 Usage of Prototype Plans Since June 2022 when the permit -ready prototype plans were made available to the public, there have been 13 inquiries about the plans and four building permit applications that have been received using a prototype plan. One application is currently under review, one is currently under construction, and the remaining two were cancelled/expired. In November 2024, Staff conducted a survey of the 44 homeowners/applicants that applied for an ADU since 2022 to ask if they considered using the prototype plans, and if they did not use them, what was the reason. Thirteen responses were received with respondents noting they did not use the plans either because they are not customizable and/or did not fit within the parameters of their property, they were already using a contractor, or they estimated that it would be more expensive to build a prototype plan and instead decided to build a prefabricated ADU as a less expensive option. In addition, some respondents did not know of the plans. ADU Accelerator Program Senator Glazer secured funding from the California Department of Housing and Community Development for an ADU Accelerator Program for cities in District 7. The purpose of the program is to increase the production of ADUs. Funds from the program can be used to create/update ADU prototype plans and to offer incentives to homeowners constructing ADUs through a program administered by the City. Funding is based on a per capita amount of $1.87 per resident. Dublin's allocation is $186,353, including $50,000 for prototype plans and $136,353 for homeowner incentives. Staff has prepared an application to participate in the ADU Accelerator Program. The City's prototype plans will require updates to reflect Building Code amendments that will be effective on January 1, 2026. Funds from the Accelerator Program can help defray the City's cost to Page 3 of 4 3 update the prototype plans. Incentives to homeowners are based on the size and affordability of the ADU they construct. Maximum incentives are provided to homeowners that agree to deed restrict their ADU to lower income households. Table 2 reflects the range of homeowner incentives. Table 2: ADU Incentives ADU Size Deed Restricted Non -Restricted Under500s.f. $15,000 $7,500 Under 750 s.f. $10,000 $5,000 Under 1,000 s. f. $5,000 $2,500 Next Steps Staff will continue to promote the City's efforts to facilitate the production of ADUs. Additionally, Staff will explore opportunities to improve the use of prototype plans, including a review of the plan types and opportunities to team up with other jurisdictions to maintain prototype plans in compliance with State law and current construction codes. Staff will submit the application to participate in Senater Glazer's ADU Accelerator Program. Staff will return to the City Council in 2026 to discuss an extension of the building permit fee waiver program prior to its expiration. STRATEGIC PLAN INITIATIVE: Strategy 3: Housing Inclusivity and Affordability Objective a: Implement the goals, policies, and programs in the 2023-2031 Housing Element. Objective b: Support efforts to produce housing affordable at all levels of income. NOTICING REQUIREMENTS/PUBLIC OUTREACH: The City Council Agenda was posted. ATTACHMENTS: None. Page 4 of 4 4 Accessory Dwelling Units City Council Meeting December 3, 2024 DUBLIN CALIFORNIA 5 Overview • City Council will receive a report on ADUs including: — ADU Prototype Plans and Manual — Impact and Building Permit Fee Waivers — Marketing Efforts — ADU Production — ADU Accelerator Program — Next Steps 6 Accessory Dwelling Unit Prototype Plans • 8 different ADU prototype plans: 5 plans designed as detached, and 3 plans designed to convert a garage • Include studios, one -bedroom and two -bedroom ADUs that range in size from 224 — 909 square feet • 3 different architectural styles: Spanish,Traditional and Modern, to give homeowners options for choosing style, color, and materials most compatible with primary dwelling CONTEMPORARY DUBLIN CALIFORNIA 0 ADU Prototype Plans and Manual • Include floor plans, elevations, electrical and plumbing plans, structural calculations, and energy calculations • Estimated to save homeowners approximately $15,000 in architectural/design services • Assembly Bill 434 effective on January I, 2025, requires cities to have preapproved ADU plans • City ADU Manual "how-to guide" for building ADU/JADU ACCESSORY DWELLING UNIT MANUAL VOt DUBLIN CALIFORNIA STEP-BY-STEP GUIDE TO CONSTRUCTING ACCESSORY DWELLING UNITS APRIL 29, 2022 Fee Waivers • Impact Fee Waiver: ADUs less than 750 SF are not subject to impact fees — Effective January I, 2025, SB 477 removes the end date for impact fee waivers and makes it permanent • Building Permit Fee Waiver: January I , 2022 —December 3 I , 2026 — Applies to ADUs less than 750 SF, or ADUs greater than 750 SF that are deed restricted as a lower income unit for 55 years — Savings of approximately $2,500 to $6,000 depending on the valuation of ADU — City Council may choose to extend building permit fee waivers beyond December 31, 2026 9 Marketing Efforts • City's ADU webpage is a "one -stop -shop" for information and resources • Posted articles about ADU prototype plans and fee waivers in news briefs, annual newsletters and on social media sites • April 2024, Staff participated in Alameda County Assessor's Office Homeowners Fair and promoted the City's ADU prototype plans and Manual, and impact and building permit fee waivers ADU Production ADU Building Permit Activity (Jan. 2022 — Nov. 2024) In Review 14 Under Construction 14 Completed 7 Cancelled or Expired 9 TOTAL 44 • Permit Fee Waiver Received: 40 (39 ADUs less than 750 SF, one ADU greater than 750 SF but deed restricted as a lower income unit) • Impact Fee Waiver Received: 22 (21 ADUs less than 750 SF, one ADU greater than 750 SF but deed restricted as a lower income unit) Usage of Prototype Plans • Since June 2022, 13 inquiries about prototype plans and four building permit applications received using a prototype plan: — One application is currently under review, one is currently under construction, and remaining two were cancelled/expired • In November 2024, Staff conducted survey of 44 homeowners/applicants that applied for an ADU since 2022 to understand why they did not use the prototype plans: — 13 responses received: • Not customizable/fit within parameters of property • Already using a contractor • Prototype plans were too expensive to build • Not aware of plans ADU Accelerator Program • Senator Glazer secured funding from HCD for ADU Accelerator Program • Purpose is to increase production of ADUs • Funds from program can be used to create/update ADU prototype plans and offer incentives to homeowners constructing ADUs • Staff has prepared application to participate in ADU Accelerator Program Next Steps • Promote City's efforts to facilitate production of ADUs • Explore opportunities to improve use of prototype plans and work with other jurisdictions to maintain prototype plans in compliance with State law and current construction codes • Submit application to participate in ADU Accelerator Program • Staff will return to City Council in 2026 to discuss extension of building permit fee waiver program prior to its expiration 14