Office of the County Administrator County of Marin September 12, 2023 Matthew H. Hymel SEP 1 2 2023 Marin County Board*

R1

On or before December 31, 2023, the Marin County Board of Supervisors should direct the Community Development Agency's Development Priority Setting Committee to: 1) Identify available funding/financing information for residents who need help with the cost of building an ADU, 2) Transmit the collected information to all the jurisdictions represented on the Committee. 3) Start a continuous monitoring program to update the information sources as they become available. This recommendation will not be implemented because it is not warranted or reasonable. The Countywide Priority Setting Committee is comprised of one Board of Supervisors member, one representative from each municipal council, and members of the community at large. Its purpose is to make initial recommendations for Countywide Housing funds as part of the allocation process for Community Development Block Grant (CDBG) funding, along with Local Area Committees and CDBG staff. The recommendation would not be consistent with the purpose of this committee, however the County may accomplish similar objectives by other means.

R2

By December 1, 2023, begin investigation to consider an amnesty program to legalize existing unpermitted second units. Add a marketing communications plan so that citizens can be made aware of it. This recommendation will not be implemented because it is not warranted or reasonable. Amnesty programs typically waive violations of an existing zoning or development code (density, setbacks, height, size, lot coverage, location, etc.) that have been identified as barriers to development. Such waivers are already provided and required under state law, notably AB670. Violations of code as described in R2 would not be a factor in permitting existing, unpermitted accessory dwelling units. Codes related to public safety or environmental health cannot be waived by an amnesty program. In most cases where health and safety are the primary concern for permitting an ADU, the limiting factor for property owners is the associated cost to comply with building, septic, water, and fire codes, which pertain to the livability of a unit.

R3

By December 1, 2023, begin the process of merging and/or collaborating with Napa/Sonoma ADU, and hiring a full-time Marin ADU Program Coordinator. The program coordinator should work with all jurisdictions on the development of ADUs and identify impact and connection fees within each jurisdiction. This recommendation has not been implemented and will be in the future. Since early 2023, the County and our municipal partners have been in communication with the Napa/Sonoma ADU Center through the Housing Working Group (HWG), a collaborative of County of Marin Response to Grand Jury Findings and Recommendations County of Marin Response to Grand Jury Report Findings and Recommendations "Build More ADUs - An Rx to Increase Marin's Housing Supply" (June 15, 2023) Planning Directors and staff from the County and each municipality in Marin. The County is currently in conversations with the Marin Community Foundation to help fund this effort. It is anticipated that a recommendation for funding and strategy for the merger will be proposed by January 2024.

R4

By December 1, 2023, begin a feasibility assessment of waiving or significantly lowering impact and connection fees for units smaller than 750 square feet. This recommendation requires further analysis. Under current state law, all ADUs under 750 square feet are already exempt from impact fees. Changing connection and capacity fees would need to be evaluated by each of the utility districts. Connection fees are levied by utility service providers, which are separate entities from the County of Marin. The County imposes Road Impact Fees and Transportation Impact Fees for unincorporated areas of the County. The County exempts ADUs under 750 square feet from Road or Transportation Impact fees and applies prorated fees for ADUs beyond 750 square feet.

R5

By December 1, 2023, begin creating plans to accelerate the permit approval process for ADU applications to , or less, of submission. Implement such plans no later than July 1, 2024. This recommendation will not be implemented because it is not warranted or reasonable. State law requires that a local agency approve or deny an ADU permit Planning review typically takes 30 days from receipt of a completed application. Building permit review for an ADU can often be completed from when an application is received but varies with the complexity of the project. Other factors can extend the review and approval beyond 30, but still within 60, days, such as septic system review, which adds complexity for ADU permits in areas without sewer service, which includes much of the unincorporated county. Other delays can include an inability of an applicant to correct items found in the first review cycle, and delays from other reviewing departments (Fire, Department of Public Works, etc.). Because the review process often includes multiple agencies and variables, a blanket reduction of the timeline to is not feasible. Increased technical assistance for applicants, such as through a merger with Napa/Sonoma ADU, will likely facilitate more complete application submissions, which in turn will expedite review.

R6

By December 1, 2023, begin feasibility assessments of new incentives for ADU development, such as pre-approved plans, technical assistance, property tax relief, development fee waivers, and forgivable loans; implement at least one such incentive no later than July 1, 2024. This recommendation requires further analysis. Incentives such as pre-approved plans, technical assistance, loans, and other financial assistance, are part of the benefit the County hopes to accomplish through a merger with the Napa/Sonoma ADU Center. County of Marin Response to Grand Jury Findings and Recommendations County of Marin Response to Grand Jury Report Findings and Recommendations "Build More ADUs - An Rx to Increase Marin's Housing Supply" (June 15, 2023) The FY 2022-23 Budget included $150,000 to establish a pilot program to support homeowners through the permitting process for Accessory Dwelling Units in unincorporated Marin County. A nonprofit organization, Hello Housing, was selected to implement the program. The program received considerable interest at its inception in February 2023, with 123 applications for technical assistance received (significantly more than anticipated). However, of the homeowners who initially expressed interest in the program, only 15 have pursued ADUs thus far, with eight applications submitted and seven approved. As a result of this pilot effort, CDA found that the prospect of technical assistance encouraged property owners to learn more about the requirements for an ADU, particularly the costs. It has been useful for applicants to understand all of the costs and complexities of ADU construction prior to submitting applications, even if they later needed to withdraw them as they came to understand the full project requirements. Ultimately, it appears that the cost of construction remains the most significant barrier for property owners considering ADUs. Property tax relief would require State legislation, making adherence to a July 1, 2024, timeframe infeasible.