ITEM NO. 6
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CITY COUNCIL STAFF REPORT |
| TO: |
Honorable Mayor and Members of the City Council |
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| FROM: |
Arron Brown, City Manager |
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| BY: |
Arron Brown, City Manager |
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| DATE: |
08/05/2026 |
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| SUBJECT: | Second Reading and Adoption of Ordinance No. 282 - An Ordinance of the City Council of the City of Canyon Lake, California, Repealing and Replacing Chapter 9.32 (Accessory Dwelling Units) of the Canyon Lake Municipal Code to bring the City’s Accessory Dwelling Unit Ordinance into Compliance with Current State ADU Law
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Recommendation:
(1) Conduct second reading and adopt Ordinance No. 282 - An Ordinance of the City Council of the City of Canyon Lake, California, Repealing and Replacing Chapter 9.32 (Accessory Dwelling Units) of the Canyon Lake Municipal Code to bring the City’s Accessory Dwelling Unit Ordinance into Compliance with Current State ADU Law; and (2) direct staff to submit the adopted ordinance to the California Department of Housing and Community Development (HCD) for review in response to the May 11, 2026, Technical Assistance Letter.
Background/Analysis:
On June 10, 2026, the City Council introduced Ordinance No. 282 and approved its first reading. The proposed ordinance amends Chapter 9.32 (Accessory Dwelling Units) of the Canyon Lake Municipal Code to bring the City's ADU regulations into compliance with current State law. The amendments were prompted by a May 11, 2026, Technical Assistance Letter from the California Department of Housing and Community Development (HCD), which advised that the City's ordinance may no longer comply with recent changes to State ADU Law and requested that the City either demonstrate compliance or adopt a revised ordinance.
California Government Code section 66316 provides that if a local ADU ordinance is inconsistent with State law, it is deemed null and void, and the local agency must instead apply State ADU Law until a compliant ordinance is adopted.
The proposed ordinance updates Chapter 9.32 to incorporate changes to State ADU and Junior ADU (JADU) law enacted in 2024 and 2025. Major amendments include:
Certain items identified in HCD's Technical Assistance Letter were not incorporated because they are self-executing provisions of State law or apply to private parties rather than local agencies. Staff will separately provide notice to the Canyon Lake Property Owners Association regarding Civil Code section 714.3(b), which limits CC&R restrictions on ADUs.
The proposed ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to Government Code section 65852.2, which exempts accessory dwelling unit ordinances adopted in compliance with State law.
California Government Code section 66316 provides that if a local ADU ordinance is inconsistent with State law, it is deemed null and void, and the local agency must instead apply State ADU Law until a compliant ordinance is adopted.
The proposed ordinance updates Chapter 9.32 to incorporate changes to State ADU and Junior ADU (JADU) law enacted in 2024 and 2025. Major amendments include:
- Updating definitions and terminology to reflect current Government Code provisions.
- Revising application processing requirements, including completeness determinations and appeal procedures.
- Updating owner-occupancy, rental, parking, and fire sprinkler requirements for ADUs and JADUs.
- Revising impact fee provisions and development standards as required by State law.
- Clarifying the number of ADUs permitted on single-family and multifamily properties.
- Incorporating new provisions related to certificates of occupancy, emergency rebuilding, and other statutory requirements.
Certain items identified in HCD's Technical Assistance Letter were not incorporated because they are self-executing provisions of State law or apply to private parties rather than local agencies. Staff will separately provide notice to the Canyon Lake Property Owners Association regarding Civil Code section 714.3(b), which limits CC&R restrictions on ADUs.
The proposed ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to Government Code section 65852.2, which exempts accessory dwelling unit ordinances adopted in compliance with State law.
- Fiscal Impact Yes/No:
- No
Additional Fiscal Information:
Adoption of the amended ADU Ordinance is not anticipated to have a fiscal impact on the City. Implementation will be accommodated through existing departmental budgets.