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06.22.22 HAB ADU updateClick to edit Master title style Housing Advisory Board –June 2022 Adapted from the June 5, 2018 City Council Public Hearing Presentation Schedule (2017-2018) 1. PROJECT LAUNCH 2. DISCUSSION DRAFT 3. FORMAL HEARINGS 4. Ongoing Monitoring and Enforcement Feb. 1, 2019: Implementation date Background What is an Accessory Dwelling Unit? (in-law apartment or basement / garage apartments) A separate and complete housekeeping unit (e.g., kitchen, sleeping area, and bathrooms) attached or detached from the primary residential unit on a single-family lot •Accessory Dwelling Unit (ADU) –typically within a single-family home •Owner Accessory Unit (OAU) –typically attached to a single-family home or located in an accessory building Background DETACHED OAU ADU Background History •1983 first ordinance adopted •Amended in late 1980s, 1997, 1999 •Toolkit of Housing Options 1999 and 2014 identified potential amendments •Study in 2012 (survey of owners, national best practices, identification of barriers) •2016 BVCP Community Survey (62% supported allowing accessory units in some single-family neighborhoods) •As of May 2018, 231 legal accessory units in the city (1/2 of 1% of housing stock) Where are ADUs/OAUs? 2017 ADU Survey 230 Surveys sent –70% response rate •74% say supplemental income was the reason they created or retained the unit •20% noticed a large property tax increase; 18% noticed a small increase; 63% did not notice an increase or could not remember •Estimate of the annual household income of their tenants: –35% estimated incomes of less than $40,000 –40% were between $40,000 to $80,000 –25% were more than $80,000 2017 ADU Survey Affordable Rents Area Median Income 1-2 Bedroom Affordable Rents 2017 60%$1,222 –$1,476 75%$1,528 –$1,834 80%$1,630 –$1,956 2012 60%$1,056 –$1,267 75%$1,320 –$1,584 80%$1,408 –$1,690 •Affordable rents also increased 14% for 2- BR and 10% for a 1-BR •88% of ADUs affordable to 75% AMI How are ADUs/OAUs Used? Average Occupancy is 1.51 people Accessory units have been discussed as one tool to address Boulder’s housing challenges over the past decade or more to help provide “a diversity of housing types and price ranges,” which is a core value of the Boulder Valley Comprehensive Plan. The current regulations regarding accessory units are intentionally restrictive and have resulted in a relatively small number of legal accessory units (230 as of January 2018) being constructed since the first ordinance was adopted in 1983. Why Statement The city, with the community, will craft a proposal for incremental changes to the relevant regulations addressing accessory units (i.e., Accessory Dwelling Units (ADUs) and Owner’s Accessory Units (OAUs)) to simplify the regulations and remove apparent barriers to the construction of this housing type in ways that are compatible with neighborhoods. The ADU Update project is intended to achieve the following: •Provide additional flexibility to homeowners to stay in their homes by allowing for options that may either create supplemental revenue sources or allow for aging in place on the property. •Increase workforce and long-term rental housing opportunities while balancing potential impacts to existing neighborhoods. Purpose Statement What is NOT Proposed to Change 1.Building code requirements 2.Zoning code requirements •setbacks •height limits 3.Occupancy limits 4.Owner occupancy requirements Options for Changes Evaluation Criteria: •Simplify the regulations •Remove apparent barriers •Balance potential neighborhood impacts •Increase workforce and long-term rental housing opportunities •Provide additional flexibility to homeowners to stay in their homes 12 Options 1.Parking. Remove the parking requirement 2.Saturation. Increase the saturation from 10 to 20 percent 3.Legal Nonconforming Structures (Saturation Rule) Remove legal non-conforming structures from the saturation requirement. 4.Allowed Zones. Allow OAUs and ADUs in all the same zones, including RMX-2. 5.ADU and Interior OAU Sizes. Change the 1/3 size limit to 1/2 for principal dwellings. 6.Lot Size. Lower the minimum lot size to 5,000 sq. ft. for ADUs and OAUs in allowed zones. 7.Detached OAU Size. Increase the size limit for a detached OAU from 450 to 800 sq. ft. 8.Detached OAU Design. Remove the design requirements related to garage doors, roof pitches, height, and expansion of building coverage. 9.Five-Year Requirement. Remove the 5-year minimum requirement for the primary home. 10.Accessory Unit Permit Renewal. Remove the accessory unit permit transfer system. 11.Short-Term Rentals. Prohibit short-term rentals for newly created accessory units. 12.Accessory Unit Occupancy Limit. Remove the 2-person occupancy limit for the accessory unit and allow roomers in the principal dwelling. 1. Parking Requires one additional off-street parking space Original Intent. Reduce the impact of additional cars parked in the street (public right-of-way) Recommendation. Remove the parking requirement Analysis -Average car ownership 1.1 per unit (average occupancy is 1.51) -Occupancy limits remain -Type of structure does not dictate car ownership patterns •Not require the one additional parking space for an affordable ADU, or if the property is landmarked, or is a contributing structure in a historic district. •Allow parking in the front setback for all types of ADUs. •Remove the requirement for paved parking. 2.Saturation No more than 10% of the homes within 300 feet may have an ADU. Original Intent. Prevent overabundance non-single-family units in predominantly single-family neighborhoods Recommendation.Increase the saturation rate from 10 to 20% citywide •Increase the saturation rate from 10 to 20% citywide. Allow up to 30% if the property is landmarked or is a contributing structure in a historic district. •Include co-ops when calculating the saturation rate. •Saturation calculation – only within the RL zones. 2. Saturation Zoning Number of Parcels RE 1,463 RL-1 10,643 RL-2 4,444 RR-1 123 RR-2 249 RMX-1 1,725 RMX-2 844 Total 19,501 Zoning Number of Parcels Parcels NOT Eligible RE 1,463 211 RL-1 10,643 3,020 RL-2 4,444 2,006 RR-1 123 6 RR-2 249 40 RMX-1 1,725 1,389 RMX-2 844 345 Total 19,501 7,017 Zoning Number of Parcels Parcels NOT Eligible Existing ADUs/ OAUs RE 1,463 211 23 1.8% RL-1 10,643 3,020 138 1.8% RL-2 4,444 2,006 16 0.7% RR-1 123 6 1 0.9% RR-2 249 40 4 1.9% RMX-1 1,725 1,389 49 15% RMX-2 844 345 - Total 19,501 7,017 231 % of eligible units 1.9% % of all city housing units 0.5% Zoning Number of Parcels Parcels NOT Eligible Existing ADUs/ OAUs What if 5% get Built RE 1,463 211 23 1.8%61 RL-1 10,643 3,020 138 1.8%374 RL-2 4,444 2,006 16 0.7%121 RR-1 123 6 1 0.9%6 RR-2 249 40 4 1.9%10 RMX-1 1,725 1,389 49 15%14 RMX-2 844 345 -25 Total 19,501 7,017 231 612 % of eligible units 1.9%5.0% % of all city housing units 0.5%1.3% 2. Saturation 2. Saturation 2. Saturation 2. Saturation 2. Saturation 3. Nonconforming Structures Legal, nonconforming structures are included in calculating the 10% saturation limit for ADUs Original Intent. Prevent an overabundance of non-single-family units in predominantly single-family neighborhoods Recommendation. Remove non-conforming structures from the saturation requirement Analysis -~500 properties are nonconforming, majority in the RL-1 zone -Majority in Mapleton, Uni Hill and area between -Allows the creation of an online tool to determine eligibility No Change 4. Allowed Zones OAUs are not allowed in the RL zoning districts Original Intent. Prevent potential impacts of detached OAUs (e.g., noise, privacy, solar access) Recommendation. Allow OAUs and ADUs in all the same zones, including RMX-2 Analysis -OAUs currently not subject to the saturation rule -Does not allow more accessory units (other than RMX-2), just a different type -Design issues addressed by compatible development standards -Allows creating distinction between OAUs and ADUs Where OAUs are Currently Allowed 4. Allowed Zones EXISTING PROPOSED Zoning Districts Currently ADUs are Allowed (saturation limit applies) Currently OAU’s are Allowed (saturation limit DOES NOT apply) Allow ADUs and OAUs Saturation Limit Applies RR-1 X X X RR-2 X X X RE X X X RL-1 X X X RL-2 X X X A X X P X X RMX-1 X X RMX-2 X Simplify Terminology DETACHED ADUATTACHED ADU 5. ADU and Interior OAU Sizes Size of ADU or an interior OAU limited to 1,000 sq. ft. or 1/3 the principal dwelling unit (whichever is less) Original Intent. Ensure that the accessory unit is smaller in size and therefore subordinate to the main home Recommendation. Change the 1/3 size limit to 1/2 Analysis •Average ADU Size = 708 sq. ft. •Primarily affects homes less than 2,000 sq. ft. •Requires walling off portions of a basement •Other subordination requirements remain (main entrance screening) •Allow Affordable Attached ADUs to be 1/2 the size of the principal dwelling or 1,000 sq. ft., whichever is less. •Market rate Attached ADUs – no change 6. Lot Size for ADUs and OAUs A lot must be 6,000 sq. ft. or more to construct an ADU or an OAU (In RE and RR, must be 30,000 and 15,000 respectively) Original Intent. Smaller lots (considered substandard) may not be appropriate to accommodate an additional complete housekeeping unit Recommendation. Lower minimum lot size to 5,000 sq. ft. in all zones Analysis •No similar requirement for accessory structures for office or other uses •Provides relief to small number of people (475 lots eligible) Lower the minimum lot size from 6,000 to 5,000 sq. ft. for all types of ADUs. 7. Detached OAU Size Detached OAUs limited to 450 sq. ft. in size (existing structures limited to 500 sq. ft. of building coverage) Original Intent. Detached OAUs have potential for increased impacts compared to ADUs (noise, privacy, and solar access) Recommendation. Increase the size limit for a detached OAU to 800 sq. ft. Analysis •Requirement pre-dates compatible development standards •800 is a common size in other cities •Allow up to 800 sq. ft. for affordable Detached ADUs. •Increase the size limit for a Detached ADU from 450 to 550 sq. ft. •Remove the 1/3 percentage limitation. •Allow up to 1,000 sq. ft. for a Detached ADU that is landmarked or is a contributing structure in a historic district. 8. Detached OAU Design Requires design elements for garage doors, roof pitches and building coverage Original Intent. Create accessory buildings that look like traditional carriage houses in predominately older neighborhoods Recommendation. Remove the design requirements related to garage doors, roof pitches and building coverage Analysis •Requirements for setbacks, height, consistent architecture/materials and open space remain •Rely on compatible development standards 9. Five-Year Requirement A home must be at least 5 years old to create an ADU Original Intent. Help existing property owners remain in their homes, NOT for new homeowners Recommendation. Remove the 5-year requirement Analysis •Lower cost to build at time of construction •Some build a house with the ADU and wait to permit •Owner occupancy requirement will continue 10. Accessory Unit Permit Renewal An accessory unit permit cannot be renewed with someone on the waiting list Original Intent. Provide fairness for property owners limited by the saturation rule in obtaining an accessory unit permit when a property changes hands Recommendation. Remove permit system and rely entirely on rental licensing and building permitting to address life safety issues Analysis •Permit system renewal is duplicative of rental licensing program •Once an accessory unit is created, only the owner can decide to remove it •Wait list remains •Remove the accessory unit permit transfer system. •Continue to require a declaration of use and add specific language for Affordable ADUs that clearly states the rent restriction provisions and the penalties for not renting at or below the limits. 11. Short-Term Rentals Short-term rentals are allowed in either the accessory unit or the principal dwelling Original Intent. Short-term rentals are currently allowed Recommendation.Prohibit short-term rentals for new accessory units Analysis •Owner occupancy requirement remains –owner expected to be responsible for the behavior of their short-term renters •Requires a rental license and are limited to renting only 120 days in a year •Some owners depend on the income to finance the construction •Counter to project purpose “…increase workforce and long-term rental housing opportunities…” •Existing short-term rental license holders can rent short-term for next 5 years •Prohibit short-term rentals for newly created ADUs. •Allow owners with a current ADU and a current short-term rental license for the ADU (as of Jan. 3, 2019) to continue renting short-term until they either fail to renew the permit or there is a change of ownership. •Owners that wish to create an ADU must forfeit a short-term rental license for the principal dwelling. 12. Occupancy Only two people are allowed to occupy an accessory unit Original Intent. Ensure the number of people in the accessory unit is less than the number of people living in the principal dwelling unit Recommendation. Remove the 2-person occupancy limit for the accessory unit and remove the prohibition on roomers in the principal dwelling Analysis •Allows additional flexibility for how people occupy the principal dwelling unit and the accessory unit •Retains the overall occupancy limit for the parcel of 3-4 unrelated people depending on the zone •Remove the 2-person occupancy limit for the ADU •Allow roomers in the principal dwelling •Modify the current occupancy limit for a property with an ADU to NOT include the owner’s or renter’s dependents in the occupancy count Minor Code Amendments •Amend when a rental license is required – only if renting •Remove the legal non-conforming use provision •Remove other code references related to the 12 options Sample Site Plan (RL-1) •6,200 sq. ft. lot •1,880 sq. ft. home (1330+550) •800 sq. ft. ADU 2-story •60 sq. ft. of personal OS for ADU •Only 500 sq. ft. of building coverage allowed within the rear yard setback Compatible Development Standards (fall 2010) Four combined requirements to achieve a more compatible built environment with fewer negative impacts on neighboring properties: 1.Side Yard Bulk Plan (9-7-6) –ensure that buildings step down towards neighboring properties in order to enhance privacy, preserve some views, and allow visual access to the sky for lots adjacent to new development. 2.Side Yard Wall Articulation (9-7-10) –reduce the perceived mass of a building by dividing it into smaller components, or to step down (decrease) the wall height 3.Maximum Building Coverage (9-7-11) –establish the maximum percentage of lot surface that may be covered by principal and accessory buildings to preserve open space on the lot, and to preserve some views and visual access to the sky, and enhance privacy for residences that are adjacent to new development. 4.Floor-Area -Ratio Requirements (9-8-2) –address the proportionality of building size to lot size and allow variation in building form within the established building envelope. 12 Options 1.Parking. Remove the parking requirement 2.Saturation. Increase the saturation from 10 to 20 percent 3.Legal Nonconforming Structures (Saturation Rule) Remove legal non-conforming structures from the saturation requirement. 4.Allowed Zones. Allow OAUs and ADUs in all the same zones, including RMX-2. 5.ADU and Interior OAU Sizes. Change the 1/3 size limit to 1/2 for principal dwellings. 6.Lot Size. Lower the minimum lot size to 5,000 sq. ft. for ADUs and OAUs in allowed zones. 7.Detached OAU Size. Increase the size limit for a detached OAU from 450 to 800 sq. ft. 8.Detached OAU Design. Remove the design requirements related to garage doors, roof pitches, height, and expansion of building coverage. 9.Five-Year Requirement. Remove the 5-year minimum requirement for the primary home. 10.Accessory Unit Permit Renewal. Remove the accessory unit permit transfer system. 11.Short-Term Rentals. Prohibit short-term rentals for newly created accessory units. 12.Accessory Unit Occupancy Limit. Remove the 2-person occupancy limit for the accessory unit and allow roomers in the principal dwelling. Other Cities •Santa Cruz –Established fee waiver program for deed restriction (little activity) •$14K waiver for 50% AMI –New pilot with Habitat for Humanity -limited to seniors (3 to date) •$80K loan from city (3%) •$80K loan from habitat (0%) •$50K loan for volunteer labor (0% / forgivable) •Rents restricted for life of loan at 60% AMI •Denver –Creating a West Denver Pilot with Habitat for Humanity (west of I-25 near Colfax) •Developing pre-approved prototype designs •$25K loan from city’s housing fund (0%) •$203K loan from Fannie Mae •Rents restricted for 20-30 years at 80% AMI •Durango –Entire Code Rewrite •Pre-register of illegal units –fees to legalize depend on date established (1989) –no inspection, owner signs affidavit •Will allow in all residential zones this year (owner occupancy, no short-term rentals, 550 sq. ft. limit, no variances) ADU Permitting and Reforms in Portland, OR Nonconforming Structures RMX-2 Zoning Nonconforming Structures ESTIMATED ADU/OAU FEES •Application fee:$420 •Transfer of an existing permit fee: $168 •Rental Licensing application fee: $105 •Building, electric, mechanical fee, plumbing fees: range $400 -$1,000s ADU / OAU STATS ADUs •174 Legal Units –Median Lot Size = 9,496 sq. ft. –Average ADU Size = 708 sq. ft. OAUs •55 Legal Units (40 Detached / 15 Attached) –Median Lot Size = 7,185 sq. ft. –Detached Average OAU Size = 712 sq. ft. –Attached Average OAU Size = 467 sq. ft.