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HomeMy WebLinkAboutD-1 Staff Report - ADU and JADU OrdinanceSCHEDULED ITEM D-1 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: JOSE D. JIMENEZ, DIRECTOR OF ECONOMIC & COMMUNITY DEVELOPMENT DEPARTMENT DATE: NOVEMBER 18, 2024 SUBJECT: FIRST READING OF AN ORDINANCE OF THE CITY OF AZUSA CITY COUNCIL AMENDING SECTION 88.42.190 OF THE MUNICIPAL CODE REGARDING ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS TO COMPLY WITH RECENT CHANGES IN STATE LAW; AND FINDING THE ACTION TO BE STATUTORILY EXEMPT FROM CEQA UNDER SECTION 21080.17 OF THE PUBLIC RESOURCES CODE BACKGROUND: In recent years, the California State Legislature has approved, and the Governor has signed into law, numerous bills that, among other things, amended various sections of the Government Code to impose new limits on local authority to regulate ADUs and JADUs. In 2024, the California Legislature approved, and the Governor signed into law, two new bills — AB 2533 and SB 1211 — that further amend state ADU law as summarized below. AB 2533 – Unpermitted ADUs and JADUs Subject to limited exceptions, existing state law prohibits a city from denying a permit to legalize an unpermitted ADU that was constructed before January 1, 2018, if the denial is based on the ADU not complying with applicable building, state, or local ADU standards. One exception allows a city to deny a permit to legalize if the city makes a written finding that correcting the violation is necessary to protect the health and safety of the public or the occupants of the structure. AB 2533 changes this by: (1) expanding the above prohibition to also include JADUs; (2) moving the construction-cutoff date from January 1, 2018, to January 1, 2020; and (3) replacing the above exception with a requirement that local agencies find that correcting the violation is necessary to Approved City Council November 18, 2024 Ordnance to Amend Development Code for ADU and JADU November 18, 2024 Page 2 comply with the standards specified in Health and Safety Code section 17920.3 (Substandard Buildings). (See amended Gov. Code, § 66332(a)–(f).) SB 1211 – Replacement Parking Requirements; Multifamily ADUs Replacement Parking Existing State Law prohibits the City from requiring off-street parking spaces to be replaced when a garage, carport, or covered parking structure is demolished in conjunction with the construction of, or conversion to, an ADU. SB 1211 amends this prohibition to now also prohibit a city from requiring replacement parking when an uncovered parking space is demolished for or replaced with an ADU. (See amended Gov. Code, § 66314(d)(11).) Multifamily ADUs SB 1211 further defines livable space in connection with converted ADUs inside a multifamily dwelling structure. Existing state law requires the City to ministerially approve qualifying building-permit applications for ADUs within “portions of existing multifamily dwelling structures that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages ….” The term “livable space” is not defined by existing state ADU law. SB 1211 changes this by adding a new definition: “‘Livable space’ means a space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation.” (See amended Gov. Code, § 66313(e).) SB 1211 also increases the number of detached ADUs that lots with an existing multifamily dwelling can have. Existing state law allows a lot with an existing or proposed multifamily dwelling to have up to two detached ADUs. Under SB 1211, a lot with an existing multifamily dwelling can have up to eight detached ADUs, or as many detached ADUs as there are primary dwelling units on the lot, whichever is less. (See amended Gov. Code, § 66323(a)(4)(A)(ii).) SB 1211 does not alter the number of ADUs that a lot with a proposed multifamily dwelling can have — the limit remains at two. (See amended Gov. Code, § 66323(a)(4).) On October 24, 2024, on a 3-0 vote, the Planning Commission approved Resolution No. 2024- PC19 recommending that the City Council consider and approved a Draft Ordinance to approve Code Amendment No. 258, which makes various changes and additions as discussed herein. Because State Law requires complete, across-the-board consistency between a local ordinance and the state’s ADU requirements, all cities and counties in the State with a local ADU ordinance are required to amend its respective Ordinance to comply with the recommended changes resulting from AB 2533 and SB 1211. Failure to do so by Jan. 1, 2025, will render any nonconforming local ordinance null and void. Ordnance to Amend Development Code for ADU and JADU November 18, 2024 Page 3 RECOMMENDATIONS: Staff recommends that the City Council take the following actions: 1) Open the public hearing, receive testimony and close public hearing; and 2) Find that the adoption of the proposed ordinance is statutorily exempt from review under the California Environmental Quality Act (“CEQA”) under Public Resources Code section 21080.17; and 3) Waive full reading and introduce for first reading by title only. ANALYSIS: On December 18, 2017, the City of Azusa adopted Ordinance No. 2017-14, adding Section 88.42.190 to the Azusa Development Code. This new section established regulations for proposed Accessory Dwelling Units (ADUs) throughout the city. While much of the language from the ordinance mirrors State Law, additional objective standards were incorporated to help ensure that future ADUs are more compatible with the surrounding neighborhoods in Azusa. Both AB 2533 and SB 1211 take effect on January 1, 2025. In order for the City’s existing ADU ordinance to remain valid, the ordinance must comply with requirements imposed by AB 2533 and SB 1211. FINDINGS OF FACTS Pursuant to Section 88.51.060 of AMC, the Planning Commission and City Council shall be required to make the following findings of fact before approving a zone change or Development Code amendment: 1. That the proposed amendment is consistent with the goals, policies, and objectives of the general plan, any applicable specific plan, development agreement, owner participation agreement or disposition and development agreement; and The amendment to the Chapter 88 (Development Code) of the Azusa Municipal Code is consistent with the goals, policies, and objectives of the General Plan below: Land Use Policy 12.1: Review the General Plan and the related Development Code, annually, to ensure internal consistency with federal, state, and local regulations and policies. Both documents are reviewed annually to ensure internal consistency with federal, state, and local regulations and policies. The ADU code update will ensure that that the language in the City’s Development Code conforms to the current ADU State Law. Ordnance to Amend Development Code for ADU and JADU November 18, 2024 Page 4 2. That a proposed zone change will not adversely affect surrounding properties. A zone change is not proposed as a component of this Development Code amendment. Therefore, the proposed Development Code amendments would not adversely affect surrounding properties. PUBLIC NOTICE The item was published in the San Gabriel Tribune on November 7, 2024. As of the moment of this report, Staff has not received any comments regarding the notice. ENVIRONMENTAL REVIEW ENVIRONMENTAL DETERMINATION: No further action required. The proposed action does not constitute a project under CEQA. Under California Public Resources Code section 21080.17, CEQA does not apply to the adoption of an ordinance by a city or county implementing the provisions of Article 2 of Chapter 13 of Division 1 of Title 7 of the California Government Code, which is California’s ADU law and which also regulates JADUs, as defined by section 66313. Therefore, the adoption of the proposed ordinance is statutorily exempt from CEQA in that it implements state ADU law. FISCAL IMPACT: The proposed Development Code Amendments do not have a fiscal impact. Prepared by: Reviewed by: Anthony Alvarado Jose D. Jimenez, Senior Planner Director of Economic & Community Development Reviewed and Approved by: Sergio Gonzalez City Manager Attachments: 1) Draft Ordinance No. 2024-08 - 1 - ORDINANCE NO. 2024-08 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA AMENDING SECTION 88.42.190 OF THE CITY OF AZUSA MUNICIPAL CODE RELATING TO ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS AND FINDING THE ACTION TO BE STATUTORILY EXEMPT FROM CEQA CEQA UNDER PUBLIC RESOURCES CODE § 21080.17 WHEREAS, the City of Azusa, California (“City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, state law authorizes cities to act by ordinance to provide for the creation and regulation of accessory dwelling units (“ADUs”) and junior accessory dwelling units (“JADUs”); and WHEREAS, in recent years, the California Legislature has approved, and the Governor has signed into law, numerous bills that, among other things, amend various sections of the Government Code to impose new limits on local authority to regulate ADUs and JADUs; and WHEREAS, in 2024, the California Legislature approved, and the Governor signed into law, Assembly Bill 2533 (“AB 2533”) and Senate Bill 1211 (“SB 1211”), which further amend state ADU law; and WHEREAS, AB 2533 and SB 1211 take effect on January 1, 2025, and for the City’s ADU ordinance to remain valid, it must be amended to reflect the requirements of AB 2533 and SB 1211; and WHEREAS, the City desires to amend its local regulatory scheme for the construction of ADUs and JADUs to reflect AB 2533’s and SB 1211’s changes to state law; and WHEREAS, on October 24, 2024, the Planning Commission held a duly-noticed public hearing and considered the staff report, recommendations by staff, and public testimony concerning this proposed Ordinance. Following the public hearing, the Planning Commission voted to forward the Ordinance to the City Council with a recommendation in favor of its adoption; and WHEREAS, on November 18, 2024, the City Council held a duly-noticed public hearing to consider the Ordinance, including: (1) the public testimony and agenda reports prepared in connection with the Ordinance, (2) the policy considerations discussed therein, and (3) the consideration and recommendation by the City’s Planning Commission; and WHEREAS, all legal prerequisites to the adoption of the Ordinance have occurred. NOW, THEREFORE, the City Council of the City of Azusa does ordain as follows: SECTION 1. Incorporation. The recitals above are each incorporated by reference and adopted as findings by the City Council. - 2 - SECTION 2. CEQA. Under California Public Resources Code section 21080.17, the California Environmental Quality Act (“CEQA”) does not apply to the adoption of an ordinance by a city or county implementing the provisions of Article 2 of Chapter 13 of Division 1 of Title 7 of the California Government Code, which is California’s ADU law and which also regulates JADUs, as defined by section 66313. Therefore, adoption of the Ordinance is statutorily exempt from CEQA in that it implements state ADU law. SECTION 3. General Plan. The City Council hereby finds that the adoption of the Ordinance is consistent with the General Plan as a matter of law under Government Code section 66314(c). SECTION 4. Findings. That in accordance with Section 88.51.060 of the Azusa Municipal Code, the City Council approves said Code Amendment No. 253 based on the following findings: 1. That the proposed amendment is consistent with the goals, policies, and objectives of the general plan, any applicable specific plan, development agreement, owner participation agreement or disposition and development agreement; and The amendment to the Chapter 88 (Development Code) of the Azusa Municipal Code is consistent with the goals, policies, and objectives of the General Plan below: Land Use Policy 12.1: Review the General Plan and the related Development Code, annually, to ensure internal consistency with federal, state, and local regulations and policies. Both documents are reviewed annually to ensure internal consistency with federal, state, and local regulations and policies. The ADU code update will ensure that that the language in the City’s Development Code conforms to the current ADU State Law. 2. That a proposed zone change will not adversely affect surrounding properties. A zone change is not proposed as a component of this Development Code amendment. Therefore, the proposed Development Code amendments would not adversely affect surrounding properties. SECTION 5. Code Amendment. Section 88.42.190 of the City of Azusa Municipal Code is hereby amended and restated to read in its entirety as provided in Exhibit “A” attached hereto and incorporated herein by reference. SECTION 6. Effective Date. This Ordinance takes effect 30 days after its adoption. SECTION 7. HCD Submittal. In accordance with Government Code section 66326, the City Clerk is directed to submit a copy of this Ordinance to the California Department of Housing and Community Development within 60 days after adoption. SECTION 8. Publication. The City Clerk shall certify to the adoption of this Ordinance. Not later than fifteen (15) days following the passage of this Ordinance, the Ordinance, or a summary thereof, along with the names of the City Council members voting for and against the Ordinance, shall be published in a newspaper of general circulation in the City of Azusa. - 3 - SECTION 9. Custodian of Records. The documents and materials that constitute the record of proceedings on which this Ordinance is based are located at the City Clerk’s office located at 213 E. Foothill Blvd., Azusa, CA 91702. The custodian of these records is the City Clerk. SECTION 10. Severability. If any section, sentence, clause or phrase of this Ordinance or the application thereof to any entity, person or circumstance is held for any reason to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The City Council of the City of Azusa hereby declares that it would have adopted this Ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. (Continues on next page) - 4 - PASSED, APPROVED AND ADOPTED by the City Council of the Azusa, California, at a regular meeting of the City Council held on the ___ day of _________, 2024 by the following vote: AYES: NOES: ABSENT: ABSTAIN: City of Azusa ________________________________ Robert Gonzales, Mayor ATTEST: ________________________________ Jeffrey Cornejo, City Clerk APPROVED AS TO FORM: BEST BEST & KRIEGER LLP _______________________________ Marco A. Martinez, City Attorney - 5 - EXHIBIT A Amended ADU Regulations (follows this page) Exhibit A 88.42.190. Accessory Dwelling Units.  A. PURPOSE. The purpose of this section is to allow and regulate accessory dwelling units (ADUs) and junior  accessory dwelling units (JADUs) in compliance with California Government Code sections 65852.2 and  65852.22.   B. EFFECT OF CONFORMING. An ADU or JADU that conforms to the standards in this section will not be:   1. Deemed to be inconsistent with the city's general plan and zoning designation for the lot on which the  ADU or JADU is located.   2. Deemed to exceed the allowable density for the lot on which the ADU or JADU is located.   3. Considered in the application of any local ordinance, policy, or program to limit residential growth.   4. Required to correct a nonconforming zoning condition, as defined in subsection C.7 below. This does  not prevent the City from enforcing compliance with applicable building standards in accordance with  Health and Safety Code section 17980.12.   C. DEFINITIONS. As used in this section, terms are defined as follows:   1. "Accessory dwelling unit" or "ADU" means an attached or a detached residential dwelling unit that  provides complete independent living facilities for one or more persons and is located on a lot with a  proposed or existing primary residence. An accessory dwelling unit also includes the following:   a. An efficiency unit, as defined by Section 17958.1 of the California Health and Safety Code; and   b. A manufactured home, as defined by Section 18007 of the California Health and Safety Code.   2. "Accessory structure" means a structure that is accessory and incidental to a dwelling located on the  same lot.   3. "Complete independent living facilities" means permanent provisions for living, sleeping, eating,  cooking, and sanitation on the same parcel as the single‐family or multifamily dwelling is or will be  situated.   4. "Efficiency kitchen" means a kitchen that includes each of the following:   a. A cooking facility with appliances.   b. A food preparation counter.   5. "Junior accessory dwelling unit" or "JADU" means a residential unit that satisfies all of the following:   a. It is no more than 500 square feet in size,.   b. It is contained entirely within an existing or proposed single‐family structure. An enclosed use  within the residence, such as an attached garage, is considered to be a part of and contained  within the single‐family structure.   c. It includes its own separate sanitation facilities or shares sanitation facilities with the existing or  proposed single‐family structure.   d. If the unit does not include its own separate bathroom, then it contains an interior entrance to  the main living area of the existing or proposed single‐family structure in addition to an exterior  entrance that is separate from the main entrance to the primary dwelling.   e. It includes an efficiency kitchen, as defined in subsection C.4 above.   6. 6. “Livable space” means a space in a dwelling intended for human habitation, including living, sleeping,  eating, cooking, or sanitation.  7. "Living area" means the interior habitable area of a dwelling unit, including basements and attics, but  does not include a garage or any accessory structure.   Exhibit A 7.8. "Nonconforming zoning condition" means a physical improvement on a property that does not  conform with current zoning standards.   8.9. "Passageway" means a pathway that is unobstructed clear to the sky and extends from a street to one  entrance of the ADU or JADU.   9.10. "Proposed dwelling" means a dwelling that is the subject of a permit application and that meets the  requirements for permitting.   10.11. "Public transit" means a location, including, but not limited to, a bus stop or train station, where  the public may access buses, trains, subways, and other forms of transportation that charge set fares,  run on fixed routes, and are available to the public.   11.12. "Tandem parking" means that two or more automobiles are parked on a driveway or in any other  location on a lot, lined up behind one another.   D. APPROVALS. The following approvals apply to ADUs and JADUs under this section:   1. Building‐permit Only. If an ADU or JADU complies with each of the general requirements in subsection  E below, it is allowed with only a building permit in the following scenarios:   a. Converted on a Lot with Proposed or Existing Single‐Family Dwelling: Only one ADU or JADU on  a lot with a proposed or existing single‐family dwelling on it, where the ADU or JADU:   i. Is either: within the space of a proposed single‐family dwelling; within the existing space of  an existing single‐family dwelling; or (in the case of an ADU only) within the existing space  of an accessory structure, plus up to 150 additional square feet if the expansion is limited  to accommodating ingress and egress.   ii. Has exterior access that is independent of that for the single‐family dwelling.   iii. Has side and rear setbacks sufficient for fire and safety, as dictated by applicable building  and fire codes.   iv. The JADU complies with the requirements of Government Code Sections 66333 through  66339.Section 65852.22.   b. Limited Detached on a Lot with Proposed or Existing Single‐Family Dwelling: One detached,  new‐construction ADU on a lot with a proposed or existing single‐family dwelling (in addition to  any JADU that might otherwise be established on the lot under subsection D.1.a above), if the  detached ADU satisfies the following limitations:   i. The side‐ and rear‐yard setbacks are at least four feet.   ii. The total floor area is 800 square feet or smaller.   iii. The peak height above grade does not exceed the applicable height limit in subsection E.2  below.   c. Converted on a Lot with Existing Multi‐Family Dwelling: Multiple ADUs within portions of  existing multifamily dwelling structures that are not used as livable space, including but not  limited to storage rooms, boiler rooms, passageways, attics, basements, or garages, if each  converted ADU complies with state building standards for dwellings. At least one converted ADU  is allowed within an existing multifamily dwelling structure, up to a quantity equal to 25 percent  of the existing multifamily dwelling units, under this paragraph.   d. Limited Detached on a Lot with Existing Multi‐Family Dwelling: No more than two detached  ADUs on a lot with a proposed multifamily dwelling, or up to eight detached ADUs on a lot with  an existing multifamily dwelling, if each detached ADU satisfies all of the following:No more than  two detached ADUs on a lot that has an existing or proposed multifamily dwelling if each  detached ADU satisfies the following limitations:   Exhibit A i. The side‐ and rear‐yard setbacks are at least four feet. If the existing multifamily dwelling  has a rear or side yard setback of less than four feet, the city will not require any  modification to the multifamily dwelling as a condition of approving the ADU.   ii. The peak height above grade does not exceed the applicable height limit provided in  subsection E.2 below.   (iii) If the lot has an existing multifamily dwelling, the quantity of detached ADUs does not  exceed the number of primary dwelling units on the lot.  2. ADU Over‐the‐Counter Permit.  a. Except as allowed under subsection D.1 above, no ADU may be created without a building permit  and an ADU Over‐the‐Counter (OTC) permit in compliance with the standards set forth in  subsections E and F below.   b. The City may charge a fee to reimburse it for costs incurred in processing ADU OTC permits,  including the costs of adopting or amending the City's ADU ordinance. The ADU OTC‐permit  processing fee is approved by the City Council by resolution.   3. Process and Timing.  a. An ADU permit is considered and approved ministerially, without discretionary review or a  hearing.   b. The City must approve or deny an application to create an ADU or JADU within 60 days from the  date that the City receives a completed application. If the City has not approved or denied the  completed application within 60 days, the application is deemed approved, unless either:   i. The applicant requests a delay, in which case the 60‐day time period is tolled for the period  of the requested delay, or   ii. In the case of a JADU and the application to create a junior accessory dwelling unit is  submitted with a permit application to create a new single‐family or multifamily dwelling  on the lot, the City may delay acting on the permit application for the JADU until the City  acts on the permit application to create the new single‐family dwelling or multifamily, but  the application to create the JADU will still be considered ministerially without  discretionary review or a hearing.   c. If the city denies an application to create an ADU or JADU, the city must provide the applicant  with comments that include, among other things, a list of all the defective or deficient items and  a description of how the application may be remedied by the applicant. Notice of the denial and  corresponding comments must be provided to the applicant within the 60‐day time period  established by subsection D.3.b above.   d. A demolition permit for a detached garage that is to replaced with an ADU is reviewed with the  application for the ADU and issued at the same time.   E. GENERAL ADU AND JADU REQUIREMENTS. The following requirements apply to all ADUs and JADUs that are  approved under subsections D.1 or D.2 above:   1. Zoning.  a. An ADU or JADU subject only to a building permit under subsection D.1 above may be created on  a lot in a residential zone or mixed‐use zone as shown in the table below:..   ADU Type / Zone  Density  Existing  Structures  On‐Site  Number of ADUs /JADUs Allowed  Exhibit A Converted  (Low Density)  Single‐ Family  Dwelling  ‐ One (1) ADU or One (1) JADU  Detached  (Low Density)  Single‐ Family  Dwelling  ‐ One (1) ADU and One (1) JADU    Converted  (Medium/Moder ate Density)  Multi‐ Family  Dwelling  ‐ Up to 25% of existing units or one ADU  unit, whichever is greater. (*, **)  Detached  (Medium/Moder ate Density)  Multi‐ Family  Dwelling  ‐ Two (2) ADU and allow up to 25% of the  existing multi‐family units on the lot to  provide an ADU within the existing dwelling  units or one unit, whichever is greater.  (*,**)  * Multi‐family structures that are proposed to be developed with an ADU  within the units must still comply with the minimum size of dwelling units     ** Portions of existing multi‐family structures used as non‐habitable space  such as (boiler rooms, storage rooms, attics, basements, garages, laundry  rooms, etc.) may be converted into ADUs.      b. An ADU or JADU subject to an ADU permit under subsection D.2 above may be created on a lot  that is zoned to allow single‐family dwelling residential use or multifamily dwelling residential  use.   c. In accordance with Government Code section 66333(a), a JADU may only be created on a lot  zoned for single‐family residences.  2. Height.  a. Except as otherwise provided by subsections E.2.b and E.2.c below, a detached ADU created on a  lot with an existing or proposed single family or multifamily dwelling unit may not exceed 16 feet  in height.   b. A detached ADU may be up to 18 feet in height if it is created on a lot with an existing or  proposed single family or multifamily dwelling unit that is located within one‐half mile walking  distance of a major transit stop or a high quality transit corridor, as those terms are defined in  Section 21155 of the Public Resources Code, and the ADU may be up to two additional feet in  height (for a maximum of 20 feet) if necessary to accommodate a roof pitch on the ADU that is  aligned with the roof pitch of the primary dwelling unit.   c. A detached ADU created on a lot with an existing or proposed multifamily dwelling that has more  than one story above grade may not exceed 18 feet in height.   d. An ADU that is attached to the primary dwelling may not exceed 25 feet in height or the height  limitation imposed by the underlying zone that applies to the primary dwelling, whichever is  lower. Notwithstanding the foregoing, ADUs subject to this subsection E.2.d may not exceed two  stories.   e. For purposes of this subsection E.2, height is measured above existing legal grade or the level of  the lowest floor, whichever is lower, to to the peak of the structure.   3. Fire Sprinklers.  a. Fire sprinklers are required in an ADU if sprinklers are required in the primary residence.   Exhibit A b. The construction of an ADU does not trigger a requirement for fire sprinklers to be installed in  the existing primary dwelling.   4. Rental Term. An ADU or JADU may be rented but no ADU or JADU may be rented for a term that is  shorter than 30 days. This prohibition applies regardless of when the ADU or JADU was created. The  property owner must obtain a business license and rental registration from the Community  Improvement Division and renew them annually.   5. No Separate Conveyance. An ADU or JADU may be rented, but, except as otherwise provided in  Government Code section 66341, but no ADU or JADU may be sold or otherwise conveyed separately  from the lot and the primary dwelling (in the case of a single‐family lot) or from the lot and all of the  dwellings (in the case of a multifamily lot).   6. Septic System. If the ADU or JADU will connect to an onsite water‐treatment system, the owner must  include with the application a percolation test completed within the last five years or, if the percolation  test has been recertified, within the last 10 years.   7. Owner Occupancy.  a. An ADU that is permitted after January 1, 2020, but before January 1, 2025, is not subject to any  owner‐occupancy requirement.   b. As required by state law, all JADUs are subject to an owner‐occupancy requirement. A natural  person with legal or equitable title to the property must reside on the property, in either the  primary dwelling or JADU, as the person’s legal domicile and permanent residence. However, the  owner‐occupancy requirement in this subsection (e)(7)(B) does not apply if the property is  entirely owned by another governmental agency, land trust, or housing organization.Unless  applicable law requires otherwise, all ADUs that are permitted on or after January 1, 2025 are  subject to an owner‐occupancy requirement. A natural person with legal or equitable title to the  property must reside on the property as the person's legal domicile and permanent residence.   c. All JADUs are subject to an owner‐occupancy requirement. A natural person with legal or  equitable title to the property must reside on the property, in either the primary dwelling or  JADU, as the person's legal domicile and permanent residence. However, the owner‐occupancy  requirement of this paragraph does not apply if the property is entirely owned by another  governmental agency, land trust, or housing organization.   9. Income Reporting. In order to facilitate the city's obligation to identify adequate sites for housing in  accordance with Government Code sections 65583.1 and 65852.2, the following requirements must be  satisfied:   a. With the building‐permit application, the applicant must provide the city with an estimate of the  projected annualized rent that will be charged for the ADU or JADU.   b. Within 90 days after each yearly anniversary of the issuance of the building permit, the owner  must report the actual rent charged for the ADU or JADU during the prior year. If the city does  not receive the report within the 90‐day period, the owner is in violation of this Code, and the  city may send the owner a notice of violation and allow the owner another 30 days to submit the  report. If the owner fails to submit the report within the 30‐day period, the city may enforce this  provision in accordance with applicable law.   10. Building and Safety.  a. Must comply with building code. Subject to subsection E.10.b below, all ADUs and JADUs must  comply with all local building code requirements.   b. No change of occupancy. Construction of an ADU does not constitute a Group R occupancy  change under the local building code, as described in Section 310 of the California Building Code,  unless the building official or Code Enforcement Division officer makes a written finding based on  substantial evidence in the record that the construction of the ADU could have a specific, adverse  Exhibit A impact on public health and safety. Nothing in this subsection E.10.b prevents the city from  changing the occupancy code of a space that was uninhabitable space or that was only permitted  for nonresidential use and was subsequently converted for residential use in accordance with this  section.   F. SPECIFIC ADU REQUIREMENTS. The following requirements apply only to ADUs that require an ADU permit  under subsection D.2 above.   1. Maximum Size.  a. The maximum size of a detached or attached ADU subject to this subsection F is 850 square feet  for a studio or one bedroom unit and 1,000 square feet for a unit with two bedrooms. No more  than two bedrooms are allowed.   b. An attached ADU that is created on a lot with an existing primary dwelling is further limited to 50  percent of the floor area of the existing primary dwelling.   c. Application of other development standards in this subsection F, such as FAR or lot coverage,  might further limit the size of the ADU, but no application of a percentage‐based maximum floor  area (i.e., under subsection F.1.b above), or of an FAR, front setback, lot coverage, or open‐space  requirement may require the ADU to be less than 800 square feet.   2. Lot Coverage. No ADU subject to this subsection F may cause the total lot coverage of the lot to exceed  50 percent, subject to subsection F.1.c above.   3. Setbacks.  a. Each ADU that is subject to this subsection F is subject to a 40‐foot front setback, (subject to  subsection F.1.c. above.   b. Each ADU that is subject to this subsection F is subject to four‐foot side and rear setbacks.   c. No setback is required for an ADU that is subject to this subsection F if the ADU is constructed in  the same location and to the same dimensions as an existing structure.   4. Building Separation. A newly constructed detached ADU shall be set back from any other permanent structure on the site by a minimum of ten feet.  5. Stories. No ADU subject to this subsection F may exceed one story.   6. Passageway. No passageway, as defined by subsection C.8 above, is required for an ADU.   7. Parking.  a. Generally. One off‐street parking space is required for each ADU. The parking space may be  provided in setback areas or as tandem parking, as defined by subsection C.11 above.   b. Exceptions. No parking under subsection F.6.a is required in the following situations:   i. The ADU is located within one‐half mile walking distance of public transit, as defined in  subsection C.10 above.   ii. The ADU is located within an architecturally and historically significant historic district.   iii. The ADU is part of the proposed or existing primary residence or an accessory structure  under subsection D.1.a above.   iv. When on‐street parking permits are required but not offered to the occupant of the ADU.   v. When there is an established car share vehicle stop located within one block of the ADU.   vi. When the permit application to create an ADU is submitted with an application to create a  new single‐family or new multi‐family dwelling on the same lot, provided the ADU or the  lot satisfies and other criteria listed in subsections F.6.b.i. through v. above.   Exhibit A c. No Replacement. When a garage, carport, or covered parking structure is demolished in  conjunction with the construction of an ADU or converted to an ADU, those off‐street parking  spaces are not required to be replaced.   8. Objective Site Design and Architectural Requirements.  a. Same in Appearance. To ensure that site design and architectural character of the ADU are  compatible with those of the primary dwelling through the use of purely objective standards, the  materials and colors of the exterior walls, roof, and windows and doors must match the  appearance and architectural design of those of the primary dwelling, and the roof slope must  match that of the dominant roof slope of the primary dwelling. The dominant roof slope is the  slope shared by the largest portion of the roof.   b. Separate Entrance. The ADU must have an independent exterior entrance, apart from that of the  primary dwelling. The ADU entrance must be located on the side or rear building façade, not  facing a public right‐of‐way.   c. Minimum Dimensions. The interior horizontal dimensions of an ADU must be at least ten feet  wide in every direction, with a minimum interior wall height of seven feet.   d. Privacy. An ADU within 15 feet of a residential unit on the same parcel or on an adjacent parcel  may not have windows that directly face windows in other unit at a 90‐degree angle.   e. Fire and Public Safety. The ADU or JADU address and location must be identified by either an  address plaque or by other signage that is clearly legible from the public right‐of‐way. The plaque  or other signage must be clearly indicated on a site plan submitted with the building‐permit  application. The site plan must also show how the ADU or JADU will be accessed by fire and  safety personnel. Alternatively, instead of an address plaque or signage, the applicant may elect  to provide a paved walkway visible from the public right‐of‐way that leads to the ADU or JADU.   f. Main Entrance Architectural Enhancements. Architectural enhancements are required for main  entrances of attached and detached ADUs. "Architectural enhancements" means the inclusion of  at least two of the following elements: architectural lighting, a covered patio or porch, an  overhang, architectural projections, and enhanced building materials such as stone veneer, brick  veneer, wood siding, PVC siding, decorative trim work, and window shutters.   9. Landscape Requirements.  a. Evergreen landscape screening must be planted and maintained between the ADU and adjacent  parcels as follows:   i. At least one 15‐gallon size tree shall be provided at a ratio of one tree for every proposed  dwelling unit.   ii. Plant specimens must be at least six feet tall when installed. As an alternative, a solid fence  of at least six feet in height may be installed.   b. All landscaping must be drought‐tolerant.   10. Historical Protections. The architectural treatment of an ADU to be constructed on a lot that has an  identified historical resource listed on the federal, state, or local register of historic places must comply  with all applicable ministerial requirements imposed by the Secretary of Interior. Must be located so as  to not be visible from any public right‐of‐way.  G. FEES.      1. Impact Fees.  a. No impact fee is required for an ADU or JADU that is less than 750 square feet in size.   b. Any impact fee that is required for an ADU that is 750 square feet or larger in size must be  charged proportionately in relation to the square footage of the primary dwelling unit. (E.g., the  Exhibit A floor area of the ADU, divided by the floor area of the primary dwelling unit, times the typical fee  amount charged for a new dwelling.) "Impact fee" here does not include any connection fee or  capacity charge for water or sewer service.   2. Utility Connection and Connection Fees.  a. If an ADU or JADU is constructed with a new single‐family home, a separate utility connection  directly between the ADU or JADU and the utility and payment of the normal connection fee and  capacity charge for a new dwelling are required.   b. Except as set forth in subsection G.2.a above, a converted ADU or JADU on a lot with a single‐ family home, created under subsection D.1.a above, is not required to have a new or separate  utility connection directly between the ADU or JADU and the utility. Nor is a connection fee or  capacity charge required.   c. Except as set forth in subsections G.2.a and G.2.b above, an ADU or JADU requires a new,  separate utility connection directly between the ADU or JADU and the public utility. For water  service, this includes separate water service and meter directly from the public water system in  compliance with Azusa Light and Water specifications and requirements. The property owner  must size the separate service and meter to meet the water needs of the proposed ADU or JADU.  The connection is subject to a connection fee or capacity charge that is proportionate to the  burden created by the ADU or JADU, based on either the relative floor areas or drainage fixture  unit (DFU) values, as defined by the Uniform Plumbing Code, of the ADU or JADU and the primary  dwelling.   H. Nonconforming Zoning Code Conditions, Building Code Violations, and Unpermitted Structures.      1. Generally. The city will not deny an ADU or JADU application due to a nonconforming zoning condition,  building code violation, or unpermitted structure on the lot that does not present a threat to the public  health and safety and that is not affected by the construction of the ADU or JADU.   2. Unpermitted ADUs constructed before 20182020.  a. Permit to Legalize. As required by state law, the city may not deny a permit to legalize an existing  but unpermitted ADU that was constructed before January 1, 20182020, if denial is based on  either of the following grounds:   i. The ADU violates applicable building standards, or   ii. The ADU does not comply with the state ADU law (Government Code section 65852.2) or  this ADU ordinance (section 88.42.190).   b. Exceptions:  i. Notwithstanding subsection H.2.a above, the city may deny a permit to legalize an existing  but unpermitted ADU that was constructed before January 1, 20182020, if the city makes a  finding that correcting a violation is necessary to protect the health and safety of the public  or of occupants of the structure.   ii. Subsection H.2.a above does not apply to a building that is deemed to be substandard in  accordance with California Health and Safety Code section 17920.3.   I. Nonconforming ADUs and Discretionary Approval. Any proposed ADU or JADU that would otherwise  be allowed under this section but that does not conform to the objective design or development  standards set forth in subsections (a) through (h) of this section may be allowed by the city with a  conditional use permit, in accordance with the other provisions of this title.