Council updates density‑bonus and ADU rules to align with state law

The City Council introduced and approved first readings of two ordinance updates June 22 to bring local code into alignment with state housing law.

Senior Planner Eric Chen told the council the density‑bonus update (Z‑S‑2026‑0002, Ordinance 1372) raises the density‑bonus cap to 50%, creates a two‑tier supplemental bonus structure and codifies a local menu of discretionary incentives beyond the state’s narrow density/parking options. "This ordinance will align with the state law as it may be amended from time to time," Chen said. Planning staff said the change implements housing‑element programs and noted the Planning Commission’s recommendation in April.

On accessory dwelling units, Assistant Planner Mark Nason explained that the city received a 19‑point letter from HCD requiring clarifications. The draft ordinance (Z‑S‑2026‑0001, Ordinance 1373) clarifies state‑exempt ADU classes (JADUs, detached and conversion ADUs, and multifamily provisions) and retains local design standards for non‑state‑exempt ADUs (front‑yard setbacks, no front entrances, matching materials). "These changes do not amend the content of the ordinance; rather they clarify format and state‑law distinctions," Nason said.

Council members questioned HOA impacts, how the city verifies developers’ claims when waivers are requested and how to handle unpermitted structures; staff said the state limits the city’s ability to withhold ministerial ADU approvals based on unrelated code violations except for clear health‑and‑safety hazards. Both ordinance introductions passed on unanimous votes.

The actions are part of the city’s housing‑element implementation and will be forwarded so the city can demonstrate state compliance.