City of Santa Rosa - Planning and Economic Development's Response

R1

The Sonoma County Permit and Resource Management Department and City of Santa Rosa Planning and Economic Development Department reduce impact fees where possible by changing from per unit to per square foot calculation and prioritize working with for-profit developers by continuing to improve permitting turnaround time. Response: The City of Santa Rosa commenced an update to four impact fees along with consideration of a new impact fee in June 2016. The nexus study/impact fee update will be completed for: 1) the Capital Facilities Fee; 2) Southwest Area Development Impact Fee; 3) Southeast Area Development Impact Fee; 4) Park and Recreation Land and Fees; and 5) a new Commercial Linkage Fee. This study is expected to be completed by July 2017. For residential projects, the Capital Facilities Fee and Southwest and Southeast Area Development Impact Fees are currently imposed on a per-unit basis, based on the residential density of the project. The Parks Fee is based on unit type and quadrant location in the City. All four of the fees are tiered based on the nature of the project, with the fees generally higher for single family units. The tiers are reflective of previous nexus studies and identified impact of the units. The City does not specifically promote development of larger units. The nexus study will evaluate the basis upon which impact fees should be charged and will assess the impact of fees on development feasibility. Additionally, the City of Santa Rosa Planning and Economic Development Department continues to implement the Process Improvement Action Plan, the result of consultant review of the City’s development review processes. The PIAP identifies more than 80 process improvements intended to address customer service, process, technology, and partnerships. It includes six action plans, which address: an integrated service center; increased communication and customer service; pre-application and entitlement review; plan check and inspection; Accela software optimization; and administrative efficiency measures. The Housing Action Plan addresses organizational changes which help to implement these plans, starting on . Recommendations numbered: R3, R4, R5 will not be implemented because they are not warranted.

R2

The City of Santa Rosa Planning and Economic Development Department and the Petaluma Planning Department encourage construction of granny units by reduction of permit fees and zoning restrictions. Response: Santa Rosa has reduced barriers to second, or granny, dwelling unit development over past years, but is planning to do more. On June 7, 2016, the City Council accepted a draft Housing Action Plan, attached, and authorized staff to prepare a work plan for its implementation. In October, the Council will be presented the draft work plan to provide comments and input. As outlined in the Housing Action Plan, , 700 square foot second units are generally allowed on any single family lot with the addition of a parking space, if they meet specified zoning criteria. With implementation of the Housing Action Plan, Santa Rosa staff will review and consider amendments to zoning provisions that may impede development of second units, including requirements for on-site parking and deed restrictions for owner occupancy of the main or second unit. Review of impact fees will be included with the nexus study/impact fee update now underway (see response to Recommendation 1, below), and other fees may be analyzed as part of the second unit barrier analysis described above. Lastly, staff will analyze sources to potentially provide for subsidizing fees for second units within new developments, such as a portion of the $3 million allocated by the Santa Rosa City Council as a pilot program to aid implementation of the Housing Action Plan. It is anticipated that second unit regulations will be reviewed and revised during 2017.

R3

The Sonoma County Board of Supervisors, City Council of Santa Rosa and City Council of Petaluma improve regulation and oversight of vacation rental activity in order to determine how rental rates are affected by having long-term rentals removed from the market. Response: The City of Santa Rosa does not currently regulate vacation rentals. “Vacation rental” is not expressly listed nor described in the Zoning Code. Thus, the City’s practice is to consider a vacation rental similar to a residential use, making no distinction between a transient or permanent tenancy. The City has not seen evidence that vacation rentals are causing a significant loss of housing units within the city limits. Code enforcement complaints regarding vacation rentals are rare, with the City receiving two to three complaints a year.

R4

The Sonoma County Board of Supervisors, City Council of Santa Rosa and City Council of Petaluma develop appropriate tax and fee schedules to offset the impact of short-term vacation rentals on housing supply. Response: The business operations of vacation rentals are subject to the City’s 9% Transient Occupancy Tax and 3% Santa Rosa Business Improvement Area Assessment. In addition, vacation rental owners renting more than three dwelling units are subject to the City’s Business Tax Ordinance. Given the absence of evidence of any significant impact on the City’s housing supply, no additional fees appear warranted.

R6

The Sonoma County Board of Supervisors, Community Development Commission and Santa Rosa Housing Authority prioritize the development of new sources of affordable housing funding by supporting the passage of AB 1335, applying for grants from the National Housing Trust Fund and creating Community Revitalization and Investment Areas or Enhanced Infrastructure Financing Districts. Response: The City of Santa Rosa has: e Increased the General Fund contribution from 20% to 25% of real property transfer tax e Allocated $3.0 million additional General Fund for FY 2016-17 e Supported passage of AB 1335 as suggested. In addition, the City: e Will apply for grants from the National Housing Trust Fund when program becomes operational e Is considering the use of Enhanced Infrastructure Financing Districts as indicated in the Housing Action Plan, .

R8

The Sonoma County Community Development Commission and the Santa Rosa Housing Authority expedite formation of Area Specific Plans to facilitate private housing development. Response: The Santa Rosa City Council has adopted two specific plans and a third is expected to be adopted in fall 2016. The Downtown Station Area Specific Plan was adopted in 2007, focused around the proposed Sonoma- Marin Area Rail Transit stop in Railroad Square. The plan introduced two new, higher density/mixed use land use designations in Transit Village Medium (25 — 40 units per acre) and Transit Village Mixed Use (40+ units per acre), which are located proximate to the rail transit stop. The North Santa Rosa Station Area Specific Plan was adopted in 2012, focused around the second SMART stop near Guerneville Road. Both of these plans lay out land use, circulation, and design plans which are transit-supportive. Zoning has been changed where needed to ensure consistency with the land use plans. The Draft Roseland Area / Sebastopol Road Specific Plan proposes higher density, transit-supportive uses around the Southside Bus Transfer Center in southwest Santa Rosa. The Plan will provide the framework necessary for development of a variety of housing types and densities to support a diverse population throughout the Plan area. The Plan includes about 1,800 acres and is currently being reviewed by the Planning Commission. Recommendations numbered: R2, R6, and R9 have not yet been implemented, but will be implemented in the future.

R9

The County Board of Supervisors, City Council of Santa Rosa and City Council of Petaluma consider invoking AB 2135 to donate surplus lands to Land Trusts or to sell these properties at below market rates to developers in exchange for commitments to include affordable housing. Response: The Housing Action Plan includes a section devoted to the assembly and offer of public land for housing development, starting on . Actions include seeking affordable units be included in projects on public lands not owned by the City but located in Santa Rosa; identifying parcels owned by the City of Santa Rosa which might be suitable for housing development; considering land banking as opportunities arise; and revising policies related to vacating public right-or-way to allow such rights-of- way to be included with adjacent developable properties. Recommendation numbered: R1 requires further analysis.