Title
Staff Report to Update the City Council Rules Committee on the Request to Consider a Fee Holiday for Accessory Dwelling Units (ADU) and on Recent Legislation Impacting ADUs effective January 1, 2020; Recommend the City Lower Development Impact Fee Revenue Projections for FY2020-21 to Account for Legislative Impacts
Staffreport
SUMMARY AND RECOMMENDATIONS
On January 1, 2020, six new laws take effect in California that, among other things, will restrict how local governments regulate and assess fees for building Accessory Dwelling Units (ADUs). Staff conducted a regional ADU fee comparison and determined San Leandro's fees remain at or below median, ensuring the City continues to encourage the building of ADUs to increase local housing supply.
Recommendations:
1. Maintain minimal ADU fees allowed under the new law to encourage development while also recouping some of the City's direct costs;
2. Lower the City's projected development impact fee revenues for FY2020-21 as outlined in the Fiscal Impacts section below.
BACKGROUND
San Leandro's Zoning Code defines an "Accessory Dwelling Unit" (often referred to as "in-law units" or ADUs) as "any attached or detached residential dwelling unit which provides complete independent living facilities for one or more persons." ADUs provide an important housing resource in California where housing supply is in short supply, and the California Legislature has repeatedly amended state law to restrict local regulatory control in order to encourage development of ADUs.
On April 3rd, 2017, Council approved an amendment to the Zoning Code that reduced both development impact fees and utility connection fees for ADUs. In accordance with State law, it also eliminated the parking requirements and established a permit approval timeline (to 120 days) for all ADUs.
On May 6, 2019, Council approved lowering Accessory Dwelling Units (ADUs) Park Acquisition and Improvement fees by $1,134 (or 13%).
On May 20, 2019, Council di...
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