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07.26.23 HAB Presentation Occupancy Ordinance KGuilerOccupancy Ordinance 8585 July 26, 2023 Karl Guiler Senior Policy Advisor Planning & Development Services Housing Advisory Board Recommendation 1 Occupancy Reform project Problem Statement: Boulder housing is increasingly more costly to rent or own making it ever more challenging for some to afford to live or stay in Boulder. Occupancy limitations and other zoning regulations may make such challenges more pronounced. Purpose Statement: Perform a comparative analysis from other communities, develop a model occupancy approach, and solicit community input for ordinance revisions. Goals and Objectives: Review city occupancy standards of other peer communities. Based on best practices from other communities, prepare options for changes appropriate to Boulder. Consider simple land use code amendments that provide greater housing opportunities in the community while preserving neighborhood character in established neighborhoods and vet changes with the community.2 Purpose •Title: Public hearing and recommendation to City Council regarding proposed Ordinance 8585, amending Chapter 9-8, “Intensity Standards,” B.R.C. 1981, increasing the number of persons that may occupy a dwelling unit, and setting forth related details. •Hold Public Hearing on Ordinance 8585 •Discuss the Occupancy Ordinance 8585 •Housing Advisory Board recommendation to City Council 3 Questions for Housing Advisory Board 1.Does the Housing Advisory Board find that the proposed ordinance implements the adopted policies of the Boulder Valley Comprehensive Plan? 2.Does the Housing Advisory Board recommend any modifications to the draft ordinance? 4 Information of interest to occupancy •Senate Bill 23-213 – Many iterations, middle housing, ADUs, occupancy; ultimately not passed •National studies, commentaries & articles – Most suggest: o Zoning restrictions greatly limit housing availability; o Restricted housing supply (among other factors) drives up housing costs; o Add housing to increase affordability; o challenges even higher for high demand communities with limited land; o no one option can solve the problem •Washington, Oregon and California – State legislation and court rulings have made occupancy based on people’s relationship illegal. Most communities in process of making changes and as changes are relatively new, few have seen what outcome looks like 5 What is Occupancy? •Building Code: Regulations intended for life and safety to avoid dangerous conditions that could occur from too many people occupying a space. •Zoning Regulations: Some communities have opted to have additional occupancy limits that are more restrictive than the building or fire code limits to avoid other impacts, such as parking and/or noise, that could occur from having a concentration of people in spaces. Some motivations rooted in discrimination against people of color and lifestyles. 6 Boulder’s Occupancy Limits Definition of Family (Section 9-16) – No limit on number of family members, includes marriage (incl. same-sex marriage and domestic partnerships) # of Unrelated per Dwelling Unit (Section 9-8-5, “Occupancy of Dwelling Units”) (1) Members of a family plus up to two additional persons. Quarters that roomers use shall not exceed one-third of the total floor area of the dwelling unit and shall not be a separate dwelling unit, OR (2) Up to three persons in P, A, RR, RE, and RL zones, OR (3) Up to four persons in MU, RM, RMX, RH, BT, BC, BMS, BR, DT, IS, IG, IM, and IMS zones; OR (4)Two persons and any of their children by blood, marriage, guardianship, including foster children, or adoption. ADU, Coops, and Group Living Uses (Section 9-8-6) 7 Boulder’s Occupancy Limits Definition of Family (Section 9-16) – No limit on number of family members, includes marriage (incl. same-sex marriage and domestic partnerships) Family means the heads of household plus the following persons who are related to the heads of the household: parents and children, grandparents and grandchildren, brothers and sisters, aunts and uncles, nephews and nieces, first cousins, the children of first cousins, great-grandchildren, great-grandparents, great-great-grandchildren, great-great-grandparents, grandnieces, grandnephews, great-aunts and great-uncles. These relationships may be of the whole or half blood, by adoption, guardianship, including foster children, or through a marriage or a domestic partnership meeting the requirements of Chapter 12-4, "Domestic Partners," B.R.C. 1981, to a person with such a relationship with the heads of household. 8 Boulder’s Occupancy Limits 4 people = MU, RM, RMX, RH, BT, BC, BMS, BR, DT, IS, IG, IM, and IMS zones 3 people = P, A, RR, RE, and RL zones 9 Proposed Options (March 9 Study Session) (A) Increase maximum # of occupants in all zones by 1 (B) Increase to 4 or to 5 unrelated citywide (C) Only allow increased occupancy in SFD areas within owner occupied units (D) & (E) Only increase occupancy in non-SFD zones or non-SFD units (F) Overlays/Maps to not increase occupancy in certain areas around University (G) No change 10 Occupancy Reform Potential impacts from occupancy •On-street parking availability / increased activity on sites / trash & weeds / house parties / noise •Areas with nonconforming occupancy -increased accounts from concentration of units and people typically in neighborhoods adjacent to the University •Policy question about whether these impacts should be specifically tied to occupancy or handled directly Enforcement approaches •Police handles noise and parking in the ROW / P&DS handles occupancy or illegal dwelling units and property maintenance •Active enforcement of occupancy has been paused due to the pandemic & staff constraints •Complaints about occupancy are addressed / instances of over-occupancy must be remedied by the next leasing cycle / instances of life safety are handled immediately 11 Community Engagement •Continued engagement with neighborhood groups – Uni Hill, Martin Acres •Aurora East block party outreach •PLAN Boulder •Hill Revitalization Working Group •Dean’s Leadership and Values Committee •Community Connectors-in-Residence •Community Leaders conversations •Office hours (virtual and in person) •Housing Advisory Board and Planning Board meetings •Be Heard Boulder questionnaire •See Attachment B and Attachment C of memo for detailed summaries 12 Community Engagement Be Heard Boulder Questionnaire: •Not intended to be a statistically valid representation •One tool among several methods to receive feedback and viewpoints on projects to understand sentiments and identify trends in the community •Promoted to key stakeholders, contacting multiple organizations, neighborhood groups, via NextDoor and other social media platforms •Open from April 27 through May 26 •Over 2,000 responses and over 1,000 written comments / city acknowledges multiple responses from same devices (roughly 300 submissions) •Responses per topic will be discussed in each section of the presentation or see Attachment C of memo for detailed summary 13 Community Engagement University adjacent neighborhoods – Will drive out families / benefits only landlords / will not help unhoused  Aurora East – Student support for more housing options / homeowners not against more people, but do experience parking impacts Hill Revitalization Group – Need to make things easier for students / occupancy should not be increased without guarantees for affordability Dean’s Leadership and Values Committee - Boulder is crazy unaffordable / need more housing security for students / students often too busy to get involved in city business Community Connectors-in-Residence – Support for removing occupancy limits Community Leaders – Firsthand account of eviction / support for 5 unrelated / University adjacent neighborhoods should be excepted out 14 Community Engagement Be Heard Boulder responses on Occupancy Reform •In general, o More support shown for 4 unrelated than 5 unrelated citywide with slight majority indicating “Strongly Support” or “Somewhat Support”. More even split between support and opposition for 5 unrelated with a higher level of “Definitely Do Not Support” o Majority of respondents did not support removing occupancy requirements entirely o Most respondents indicating owning their home - about 1/3 indicated renting their home o More support for changes among renters and younger participants o More than half of respondents felt that regulations should not be left as is 15 City Council (June 15) •City Council considered the data, studies and analogues that staff provided including the information on peer communities that have either relaxed or eliminated occupancy limits •Council received public comment and reviewed the summaries of public sentiments and feedback from Planning Board and Housing Advisory Board •Direction: o Proceed with preparing an ordinance to increase the number of unrelated occupants to 5 citywide o Prepare two code language options that would address occupancy increases in nonconforming uses 16 Planning Board (July 25) •Extensive discussion on: -Required affordability -Increasing occupancy for ELUs -Whether the increase should be 4 or 5 •Motion to recommend approval (4-3) with the following conditions: o Remove the nonconforming language of Section 9-8-5(d) o Increase efforts to address nuisance behavior in the city o The city should explore mechanisms for guaranteed affordability through deed restriction for increases in occupancy from 3 or 4 up to 5 through the city’s rental licensing program 17 Proposed Ordinance 8585 Occupancy increase (Section 9-8-5(a)): •5 persons (from 3 and 4 unrelated persons depending on zoning district) on a citywide basis. •2 to 3 persons and any of their children by blood, marriage, guardianship, including foster children, or adoption. •from 2 occupants to 3 occupants in efficiency living units as proportional increases to the five unrelated citywide. Nonconforming occupancy (Section 9-8-5(c)): • Where the occupancy limit within a dwelling unit is greater than that permitted above • Some occupancy limits will become conforming as a result of the changes above • Would be subject to the existing limits in Section 9-8-5(c) Nonconforming uses (Section 9-8-5(d)): • Where occupancy per unit may be conforming, but the density or housing type on the lot is nonconforming •Neighbors and members of council raised the concern about allowing an increase of occupancy per unit on such lots • Council requested at least 2 options for prohibiting an increase in nonconforming uses 18 Proposed Ordinance 8585 Section 9-8-5(d): Nonconforming Uses: A nonconforming residential use that is not permitted by Section 9-6-1, “Schedule of Permitted Land Uses,” B.R.C. 1981, or is a lot or parcel that does not meet the density requirements of Chapter 9-8, “Intensity Standards,” B.R.C. 1981, is subject to the following: (1) Unless the occupancy was established meeting the requirements of subsection (c) of this section, the occupancy of a nonconforming use per dwelling cannot be more than: (A) Three unrelated persons in P, A, RR, RE, and RL zones; (B) Four unrelated persons in MU, RM, RMX, RH, BT, BC, BMS, BR, DT, IS, IG, IM, and IMS zones; or (C) Two persons and any of their children by blood, marriage, guardianship, including foster children, or adoption. (2) The rules for continuation, restoration, and change of a nonconforming use set forth in Chapter 9-10, “Nonconformance Standards,” B.R.C. 1981, and Section 9-2-15, “Use Review,” B.R.C. 1981, apply except that occupancy cannot be more than that permitted by Subparagraph (1).19 Proposed Ordinance 8585 Section 9-8-5(d): [Option A in Attachment A] Option A (Citywide Nonconforming Uses): (A) Three unrelated persons in P, A, RR, RE, and RL zones; (B) Four unrelated persons in MU, RM, RMX, RH, BT, BC, BMS, BR, DT, IS, IG, IM, and IMS zones, or (C) Two persons and any of their children by blood, marriage, guardianship, including foster children, or adoption. Option B (Zones adjacent to the University): (A) Three unrelated persons in RL-1 and RE zones or four unrelated persons in the RM-2, RMX-1, RH-1, RH-2, RH-5, BMS, BT-1, and BT-2 zones, or (B) Two persons and any of their children by blood, marriage, guardianship, including foster children, or adoption. 20 Staff Recommendation Project Purpose Statement: Perform a comparative analysis from other communities, develop a model occupancy approach, and solicit community input for ordinance revisions. Goals and Objectives: Review city occupancy standards of other peer communities. Based on best practices from other communities, prepare options for changes appropriate to Boulder. Consider simple land use code amendments that provide greater housing opportunities in the community while preserving neighborhood character in established neighborhoods and vet changes with the community. 21 BVCP Policies Growth Management Policy 1.11 Jobs: Housing Balance Built Environment Policy 2.10 Preservation & Support for Residential Neighborhoods Housing Policy 7.01 Local Solutions to Affordable Housing Housing Policy 7.08 Preserve Existing Housing Stock Housing Policy 7.10 Housing for a Full Range of Households Recommended Motion for Approval Housing Advisory Board recommends that City Council adopt Ordinance 8585, amending Chapter 9-8, “Intensity Standards,” B.R.C. 1981, increasing the number of persons that may occupy a dwelling unit, and setting forth related details. Schedule / Next Steps •Office hours •Upcoming City Council meetings Upcoming Meetings Schedule 2023 Ordinance at City Council (no public hearing) August 3 City Council public hearing  August 17 23 Questions? Questions for Housing Advisory Board 1.Does the Housing Advisory Board find that the proposed ordinance implements the adopted policies of the Boulder Valley Comprehensive Plan? 2.Does the Housing Advisory Board recommend any modifications to the draft ordinance? 25 Scenario 1 –Conforming to conforming occupancy (SFD & MFD) 26 Single Family Multi-Family Scenario 2 –Nonconforming to conforming occupancy (SFD & MFD) 27 Single Family Multi-Family Scenario 3 –Nonconforming to nonconforming occupancy (SFD & MFD) 28 Single Family Multi-Family Scenario 4 –Nonconforming Use but conforming to occupancy 29 Occupancy increase to 5 unrelated per unit is NOT automatic as it would be considered an “expansion of a nonconforming use”. Current code would require a Nonconforming Use Review. An increase up to 4 or 5 unrelated per unit could be approved with Nonconforming Use Review if the criteria of Sections 9-2-15(e) and (f) are met. Section 9-8-5(d) is proposed to prohibit such increases. See Attachment A. Occupancy Reform Statistics: % of rental licenses per occupancy zone 33.4% are in the 3-person zones 65.6% are in the 4-person zones % of rental units per occupancy zone 3-person zone: 81.3% of the units are owner-occupied 18.7% of the units are rentals 4-person zone: 42.5% of the units are owner-occupied 57.5% of the units are rentals 30 Occupancy Reform Building Code occupancy limits •Zoning occupancy limits typically more restrictive •International Property Maintenance Code (IPMC)- o Minimum size of unit based on clearance requirements – 320 sf o Minimum size for efficiency living unit (ELU) – 220 sf – No more than 3 people in an ELU o Minimum bedroom size – 70 sf for 1 person, additional 50 sf for each additional person 31