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City Council Work Session - CANCELLED for technical issues

Meeting Date:: 06/09/2020
From:: Dan Symer, Zoning Code Manager

TITLE

Case No. PZ-19-00124 Updates to Zoning Code 2019 - High Occupancy Housing Land Use Zoning Code Amendment.

STAFF RECOMMENDED ACTION:

Hold a work session to allow the City Council and the public to ask questions, seek clarification, have discussions, and provide comments and direction to staff on the proposed amendment.

EXECUTIVE SUMMARY:

The purpose of the work session is to discuss and receive comments and direction on three considerations for the High Occupancy Housing (HOH) Zoning Code Text Amendment. Below is a summary of these considerations

Definitions. In accordance with the High Occupancy Housing Specific Plan (HOH Plan), staff is proposing to replace the Rooming and Boarding land-use with two new land-uses (Bullet 2 Page 102 of the HOH Plan). These proposed land-use definitions are the High Occupancy Housing Development (HOHD) and Mixed-Use High Occupancy Housing Development (MHOHD). A HOHD is a 100 percent residential development, and a MHOHD is a mixed-use development that contains residential and non-residential uses. According to the City Council direction received on October 8, 2019, these definitions describe which single-family, two-unit/duplex, multiple-family (including triplex) and mixed-use developments would be considered HOH. Refer to the Information I.A. section of this report for a list of questions that staff would like the City Council to consider regarding the proposed definitions. Staff’s explanation of the proposed HOHD and MHOHD is incorporated in the Information III. Discussion section of this report.
Zones that the HOHD and MHOHD are proposed to be allowed. To accommodate both small- and large-scale HOH development, and to replace the Rooming and Boarding land use throughout the Zoning Code, the HOHD and MHOHD land uses are proposed to be allowed in multiple zones. The HOHD land use is proposed to be allowed in all residential and commercial zones, and the T3 Neighborhood I (T3N.1) through, and including, the T6 Downtown (T6) zones. The MHOHD land-use is proposed in all commercial zones and the T5 Main Street (T5) and T6 Downtown (T6) zones. Refer to Information I.B. section of this report for a list of questions that staff would like the City Council to consider regarding the zones that the proposed land-uses would be allowed. Staff’s explanation pertaining to which zones the proposed HOHD and MHOHD land-uses are incorporated, is included in Information IV. HOHD and MHOHD Land-use By Zone section of this report.
Required and Maximum dwelling unit types. Staff is seeking City Council direction regarding considerations received pertaining to the incorporation of provisions that would require a multiple-family (three dwelling units or more) HOH development to have a minimum number of studio and one-bedroom dwelling units and a maximum number of four-bedrooms or more dwelling units. For example, a minimum of 20% of the total dwelling units shall be studio and one-bedroom units, and a maximum of 30% of the dwelling units shall be four-bedrooms or greater. Refer to the Information I.C. section of this report for a list of questions that staff would like the City Council to consider regarding this topic.

INFORMATION:

I. City Council Questions:

For your reference, below is a general overview of the questions that staff is seeking the City Council’s comments and direction.

A. Questions regarding the definitions:

Are the proposed definitions clear and easily understood?
Do the proposed definitions satisfactorily define a HOH development?
Do the proposed definitions address the Council’s concerns regarding developments with units that contain a high number of bedrooms, and a bedroom-to-sanitation facility (bathroom see definition below) ratio of 1:1?
Should there be a maximum bedroom limit on any one dwelling unit without obtaining a Conditional Use Permit for a High Occupancy Housing Development?
Is the total number of bedrooms, six, in a two-unit development appropriate, or should it be increased?
Does the City Council have any recommended modifications or considerations?

B. Questions pertaining to the Zones that the HOH land-uses are proposed to allowed

Should the HOH land-uses be excluded from any zone?
Does the City Council have any recommended modifications or considerations?

C. Questions pertaining to requiring a minimum and maximum number of dwelling unit types (e.g., studio, one-bedroom, four-bedrooms, etc.)

Does the City Council desire to incorporate a minimum number of studio and one-bedroom dwelling units, and maximum number four-bedrooms and greater dwelling units?
If the City Council desires to incorporate the aforementioned provisions, which type(s) of HOH developments should these provide apply to? For example, should the provisions apply to developments that exceeds 29 dwelling units per acre and/or 72.5 bedrooms per acre.

For your convenience, the relevant questions have been restated within the staff’s discussion below. Some have been slightly modified to address the discussion topic specifically.

II. Background Summary:

In February 2018, the City Council adopted the citywide High Occupancy Housing Specific Plan (HOH Plan). The HOH plan was developed in response to the community's dialogue about previously proposed high intensity, mid-rise developments near historic neighborhoods that primarily catered to college students. The plan is intended to provide direction in the form of goals and policies to accommodate a variety of housing options in areas of the city that can support infill, redevelopment, and mixed-use activities. In addition, the plan’s goals and policies address enhancing and maintaining the city’s character and provide guidance for future developments that would be considered High Occupancy Housing (HOH). It should be noted that the HOH Plan’s listed implementation strategies pertaining to the Zoning Code amendments (Pages 102, 103, 105 and 106 of the HOH Plan) “…may be accomplished through another method...” to achieve “…the goals and policies of the HOH Specific Plan and the Regional Plan.” (Page 99 of the HOH Plan).

After the HOH Plan’s adoption, staff received direction and affirmation from the City Council on October 8, 2019, to address smaller developments that may also be considered as HOH developments. The smaller HOH developments that staff was directed to incorporate are single-family, two-unit (duplex), three-unit (triplex), and multiple-family developments that were not addressed in the HOH Plan. Typically, these smaller HOH developments have a high bedroom-to-dwelling unit ratio, a bedroom-to-sanitation facility ratio of close to 1:1, and are on small lots. A summation of the comments and information conveyed from staff, the public, City Council members, and Planning and Zoning Commission members is that these smaller HOH developments have an equal or greater impact on neighborhoods as the large-scale HOH developments have. Also, it was opined that the scale of these developments are inconsistent with the character of many of the existing neighborhoods and have a negative impact on the available public street parking. It should be noted that these structures are primarily near to downtown and Northern Arizona University, but a few have been constructed in other neighborhoods.

For your reference, public input was received at the public meetings held on August 19, 2019, February 13 and 14, 2020, and through the City’s online Community Forum (https://www.opentownhall.com/portals/227/Issue_7685) (Attachment 4). In addition, staff received several comments regarding HOH developments from the Southside stakeholders group that was formed to assist in the development of the conceptual Southside specific plan. These meetings were held over the past year.

It should be noted that the HOH Plan did not contemplate addressing smaller HOH developments. For context, the HOH Plan defined a HOH development as any development that has at least 30 units or 75 bedrooms per acre (Page 2 and 110 of the HOH Plan). When the HOH Plan was developed, the plan primarily focused on large scale developments. Developments that were included in the HOH Plan analysis are the HUB, The Standard, Village at Aspen Place, Fremont Station, etc.

III. Discussion:

To address both large and small scale residential and mixed-use HOH developments, staff is in the process of developing two land-use definitions. These land-use definitions are titled High Occupancy Housing Development (HOHD) and Mixed-Use High Occupancy Housing Development (MHOHD). A HOHD is a 100 percent residential development, and a MHOHD is a mixed-use development that contains residential and non-residential uses.

The primary purpose of the proposed definitions is to define the HOHD and MHOHD land-uses based on a development’s physical characteristics. The physical characteristics approach is being considered due to the difficulties associated with enforcing the existing land-use definitions of the Zoning Code that include references to separate rental or lease agreements (Room and Boarding Facility), or separate sleeping and bathroom facilities that are rented for extended periods (Single Room Occupancy (SRO)).

Below is the proposed definition of the bedroom-to-sanitation facility ratio and the existing Zoning Codes definition of the Sanitation Facility(ies). These terms are utilized in the proposed HOHD and MHOHD.

Bedroom-to-Sanitation Facility Ratio: Is the total number of bedrooms divided by the total number of sanitation facilities in a dwelling unit.

Example: 1. A dwelling unit has five bedrooms and four sanitation facilities. The bedroom-to-sanitation facility ratio is:

5 bedrooms
4 sanitation facilities = 1.25

Sanitation Facility(ies): A bathroom that contains any combination of, or individually, a toilet, shower, sink, tub, or related bathing and sanitation fixtures.

A. High Occupancy Housing Development (HOHD):

Due to the need to address different large and small HOH development types, similar land-uses, and different building forms, the proposed HOHD definition is split into separate sections. These sections address: single-family, two-unit (duplex), three-unit (triplex), and four-units or greater developments. The single-family, two-unit (duplex), and three-unit (triplex) would be allowed in any location within the City, and the proposed four-units or greater HOHD developments would only be allowed in the pedestrian shed of an activity center.

1. Single-Family Attached or Detached Dwelling Units

Based on the review of the known single-family developments that have a high bedroom-to-dwelling unit ratio, bedroom-to-sanitation facility ratio of 1:1, and are on small lots, it was determined that lots smaller than 10,000 square feet have a greater potential of the inability to provide sufficient parking if all individuals living in the dwelling unit have vehicles. With the exception of older neighborhoods, most of the smaller lots may accommodate up to four cars parked in a garage and driveway. Also, it should be noted that new single-family dwellings on smaller lots with more than four bedrooms are typically out of scale with the many existing neighborhoods. The parking requirements for a typical single-family home is two spaces. For your reference, the conceptual Zoning Code parking requirements for a HOHD and MHOHD are included as Attachment 1.

Below is the proposed definition to determine if a single-family development would be considered a single-family HOHD.

a. A single-family attached or detached dwelling unit with five bedrooms or more:

i. On a lot or parcel containing 10,000 square feet or less; and

ii. Has a bedroom-to-sanitation facility ratio less than 1.2.

For your reference, a bedroom-to-sanitation facility ratio of 1.2 is a five-bedroom dwelling unit with four sanitation facilities.

Note: Currently, the City’s process for applications for new single-family homes, additions, and modifications to existing homes do not require prior City review before the permit application is submitted. Therefore, there will be a potential that an applicant will be informed of the Conditional Use Permit requirements and related provisions, such as parking, during the review of the permit application. Since the Conditional Use Permit would need to be approved prior to staff approving a permit application, the process will be delayed. Also, this information may occur after an applicant has spent money on construction documents and contractors.

City Council Questions:

Is the proposed definition clear and easily understood?
Does the proposed definition sufficiently address the Council’s concerns to include certain single-family developments with a high number of bedrooms and a bedroom-to-sanitation facility ratio of 1:1 as a single-family HOHD?
Does the Council have additional modifications or considerations?

2. A Lot or Parcel Containing Two or Three Dwelling Units (Inclusive of Duplexes and Triplexes).

Typically, small scale multi-dwelling unit developments have a higher number of bedrooms per dwelling unit. As it pertains to two-unit and three-unit developments, staff’s analysis contemplates an allowance of 3 bedrooms per dwelling unit. Therefore, a two-unit development would be allowed a total of six bedrooms, and a three-unit development would be allowed a total of nine bedrooms without a Conditional Use Permit. The proposed allowance is a slight increase (0.5 bedrooms per dwelling unit) over the bedrooms per dwelling unit contemplated in the HOH Plan for large scale HOH developments.

In addition, staff’s analysis found that the bedroom-to-sanitation facility ratio of 1:1 is a common feature with one- and two-bedroom dwellings. Also, the 1:1 ratio is prevalent in newer three-bedroom units of standard apartment developments. This ratio is not common with units that contain four-bedrooms or greater in standard apartment developments. But, the 1:1 ratio is common with developments either leased by the bedroom, by the unit with a “master” lease with multiple adult persons or are considered a HOH developments in accordance with the HOH Plan. Therefore, the proposed definition includes a provision that requires any two-unit, or three-unit development containing a four-bedroom or greater unit and has a bedroom-to-sanitation facility ratio less than 1.3 to be considered a HOHD. For your reference, a four-bedroom unit with three sanitation facilities has a bedroom-to-sanitation facility ratio of 1:3.

a. Two-Dwelling Unit Developments

The following is the proposed definition to determine if a two-unit development would be considered a HOHD.

i. A lot or parcel containing two dwelling units, excluding an Accessory Dwelling Unit, with:

(a) More than a total of six bedrooms; or

(b) One or more dwelling units containing four or more bedrooms with a bedroom-to-sanitation facility ratio less than 1.3.

City Council Questions:

Is the proposed definition clear and easily understood?
Does the proposed definition address the Council's concerns to include a two-unit development with a bedroom-to-sanitation facility ratio of 1:1 and a high number of bedrooms in any one unit as a HOHD?
Should there be a maximum bedroom limit on any one unit without a Conditional Use Permit? For example, no unit shall have more than five bedrooms without a Conditional Use Permit for a HOHD.
Two-unit developments are allowed in all residential zones, except the Manufactured Housing (MH) zone. The needs and concerns of the residents of one neighborhood may be different than another. For example, the residents of one neighborhood may have concerns regarding a two-dwelling unit development that contains more than six bedrooms; alternatively, to accommodate familial and/or economic needs, the residents of another neighborhood may be ok with a two-dwelling unit development containing eight bedrooms. Is the total number of bedrooms, six, in a two-unit development appropriate, or should it be increased?
Does the proposed definition satisfactorily define a two-dwelling unit HOHD?
Does the Council have additional modifications or consideration? Please be advised that an accessory dwelling unit on a lot that contains a single-family dwelling unit is not considered a two-unit development. This exclusion is intended to maintain an incentive to construct an accessory dwelling unit on all parts of a single-family development.

b. Three Dwelling Unit Developments

The following is the proposed definition to determine if a three-unit development would be considered a HOHD.

i. A lot or parcel containing three dwelling units with:

(a) More than a total of nine bedrooms; or
(b) One or more dwelling unit(s) containing four or more bedrooms with a bedroom-to-sanitation facility ratio less than 1.3.

City Council Questions:

Is the proposed definition clear and easily understood?
Does the proposed definition address the Council's concerns to include a three-unit development with a bedroom-to-sanitation facility ratio of 1:1 and a high number of bedrooms in any one unit as a HOHD?
Should there be a maximum bedroom limit on any one unit without a Conditional Use Permit for a HOHD? i.e., For example, no unit shall have more than five bedrooms without a Conditional Use Permit for a HOHD.
Does the Council have any recommended modifications or considerations?

3. A Development Sites Containing Four or More Dwelling Units

The definition for a four or more dwelling units HOHD, contains three parts:

The bedroom-to-sanitation facility ratio.
The percentage of total dwelling units that contain four bedrooms or more.
The total number of dwelling units per acre and bedrooms per acre that are allowed by a property’s zone.

As it pertains to the bedroom-to-sanitation facility ratio, it was determined that the ratio that applies to two- and three-unit developments is also applicable to a development site containing four or more dwelling units.

Based on staff's Zoning Code scenario analysis of the HOH plan, it was determined that a development site containing four or more dwelling units could have a sizable bedroom-to-dwelling unit ratio and not require a Conditional Use Permit for a HOHD. Therefore, the proposed definition indicates that any development with more than 20 percent of the total dwelling units containing four-bedrooms or more would be considered a HOHD.

The maximum number of bedrooms, including the maximum number of dwelling units that these developments may have without a Conditional Use Permit for a HOHD, is addressed in the conceptual property development standards for each zone (Attachment 2) except for the Transect Zones. Since the Transect Zones do not have the density and a maximum bedroom per acre development standards, and the HOH Plan does not specifically address the Transect Zones criteria, staff concluded that applicable HOH Plan criteria for High Density Residential (HR) zone also would apply to the Transect Zones.

The following is the proposed definition to determine if a Development Site containing four or more dwelling units would be considered a HOHD.

a. A Development Sites containing four or more dwelling units where:

i. More than 20 percent of the total dwelling units have four bedrooms or more;

ii. One or more of the dwelling units containing four or more bedrooms has a bedroom-to-sanitation facility ratio that is less than 1.3; or

iii. The total number of dwelling units per acre, or bedrooms per acre, requires a Conditional Use Permit for a HOHD in accordance with the building form and property development standards of the property’s designated a Non-Transect Zone, or if the property has elected a Transect Zone the density is greater than 29 dwelling units per acre or 72.5 bedrooms per acre.

City Council Questions:

Is the proposed definition clear and easily understood?
Does the proposed definition address the Council's concerns to include four-unit developments with a large number bedroom-to-sanitation facility ratio of 1:1?
Should there be a maximum bedroom limit on any one unit without a Conditional Use Permit for a HOHD? i.e., For example, no unit shall have more than five bedrooms without a Conditional Use Permit for a HOHD.
Does the Council have additional modifications or considerations?

4. Other Similar Land-uses.

There are several land-uses that, based on their physical development characteristics, may be on occasion considered a HOHD, although they are separately regulated by the Zoning Code. In addition, many of these land-uses have additional land-use specific regulations or defining characteristics that are different from a HOHD. Therefore, the Congregate Care Facility, Dormitory, Fraternity or Sorority, Group Home, Single Room Occupancy, and Institutional Residential land-uses are expressly excluded from the HOHD definition. This exclusion is intended to avoid conflicts and confusion.

The following is proposed to be included in the HOHD definition to exclude the above-referenced land-uses.

a. A HOHD does not include a Congregate Care Facility, Dormitory, Fraternity or Sorority, Group Home, Single Room Occupancy, or any Institutional Residential Land-uses.

City Council Questions:

Is the proposed addition to the definition clear and easily understood?
Does the Council have additional modifications or considerations?

B. Mixed-Use High Occupancy Housing Development (MHOHD):

The use specific development standards of MHOHD are limited the to the pedestrian shed of any activity center. It should be noted that the Regional Plan anticipates that the pedestrian shed areas of an activity center are to be the most intensive commercial and residential areas within the city (RP 18.11 and 18.15). The location of the activity pedestrian shed areas are identified in Attachment 3. Due to the locational limitations and anticipated characteristics of the pedestrian shed of an activity center, staff concluded that the MHOHD definition does not need to include separate considerations based on the number of residential dwelling units.

1. Mixed-Use developments

Except for the addition of non-residential uses and the number of dwelling units, the rationale to describe a HOHD containing four or more dwelling units (Information III.A.3.) also applies to the residential elements of a Mixed-Use Development.

The following is the proposed definition to determine if a Development Site containing a Mixed-Use Development would be considered a MHOHD.

a. A Mixed-Use development that contains:

i. More than 20 percent of the total dwelling units have four bedrooms or more;
ii. One or more of the dwelling unit(s) containing four or more bedrooms has a bedroom-to-sanitation facility ratio that is less than 1.3; or

iii. The total number of dwelling units per acre, or bedrooms per acre, requires a Conditional Use Permit for a MHOHD in accordance with the building form and property development standards of the property’s designated a Non-Transect Zone, or if the property has elected a Transect Zone the density is greater than 29 dwelling units per acre or 72.5 bedrooms per acre.

City Council Questions:

Is the proposed definition clear and easily understood?
Does the proposed definition address the Council's concerns to include four-unit developments with a large number bedroom-to-sanitation facility ratio of 1:1?
Should there be a maximum bedroom limit on any one unit without a Conditional Use Permit for a MHOHD? i.e., For example, no unit shall have more than five bedrooms without a Conditional Use Permit for a MHOHD
Does the Council have additional modifications or considerations?

IV. HOHD and MHOHD Land-use By Zone

As part of the HOH Plan strategies (Bullet 2 Page 102 of the HOH Plan), it was contemplated to remove the Rooming and Boarding land-use and incorporate the appropriate corresponding HOHD and MHOHD land-uses. With the direction to incorporate smaller scale developments as part of the HOH Zoning Code Amendment, it is necessary to include the HOHD land-use in all of the residential zones that allows single-family developments on lots less than 10,000 square feet, two-unit/duplex developments, and multiple-family developments. It should be noted that all HOHDs that contain four dwelling units or larger will be required to be in the pedestrian shed of an activity center. MHOHDs will be allowed in all commercial zones.

The zones that the HOHD land-use is proposed to be allowed are identified below. High Occupancy Housing Developments and MHOHD are limited to the residential land-uses and associated requirements of the zone. These include single-family, two-unit/duplexes, and multiple-family developments. If one of the aforementioned uses is not a permitted use in the zone, then the associated HOHD would not be allowed. For example, if a single-family development is not allowed by the property’s designated zone, then the single-family HOHD is not allowed.

A. Proposed Zones That a HOHD Would Be Allowed.

Estate Residential (ER)

High Density Residential (HR)

Manufactured Housing (MH)
Medium Density Residential (MR)
Rural Residential (RR)
Single-Family Residential (R1)
Single-Family Residential Neighborhood (R1N)
T3 Neighborhood I (T3N.1)
T3 Neighborhood 2 (T3N.2)
T4 Neighborhood 1 (T4N.1)

T4 Neighborhood 1 - Open (T4N.1-O)
T4 Neighborhood 2 (T4N.2)
T4 Neighborhood 2 - Open (T4N.2-O)
T5 Main Street (T5)
T6 Downtown (T6)
Central Business (CB)
Community Commercial (CC)
Commercial Service (CS)
Highway Commercial (HC)
Suburban Commercial (SC)

Notes:

Single-family developments are allowed ihttps://agendaquick.flagstaffaz.gov/frs/agenda/images/save_text_box_off.gifn all the above residential zones, and the Community Commercial (CC), T3 Neighborhood I (T3N.1), T3 Neighborhood 2 (T3N.2), T4 Neighborhood 1 (T4N.1) T4 Neighborhood 2 (T4N.2), and T4 Neighborhood 2 - Open (T4N.2-O) zones.
Two-unit/duplex developments are allowed in all the above residential and commercial zones (excluding Manufactured Housing (MH)), and in the T3 Neighborhood I (T3N.1), T3 Neighborhood 2 (T3N.2), T4 Neighborhood 1 (T4N.1), T4 Neighborhood 2 (T4N.2), and T4 Neighborhood 2 - Open (T4N.2-O) zones.
Multifamily developments (three units or greater) are allowed in all the residential zones listed above, except the Single-Family Residential Neighborhood (R1N) and Manufactured Housing (MH) zones, in all commercial zones, and the above-listed transect zones.

B. Proposed Zones That a MHOHD Would Be Allowed.

Central Business (CB)
Community Commercial (CC)
Commercial Service (CS)
Highway Commercial (HC)
Suburban Commercial (SC)
T5 Main Street (T5)
T6 Downtown (T6)

City Council Questions:

Should the HOH land-uses be excluded from any zone?
Does the Council have any recommended modifications or considerations?

V. Existing Developments with a Rooming and Boarding Conditional Use Permit

In accordance with the HOH Plan, the Rooming and Boarding land use will be a removed from the Zoning Code (Bullet 2 Page 102 of the HOH Plan). Therefore, developments will no-longer be regulated by a lease structure. In accordance with the HOHD and MHOHD land use definitions, developments will be regulated by their physical characteristics (e.g. density, bedrooms per acre, and bedroom-to-sanitation facility ratio).

Currently, there are two properties that have approved Conditional Use Permits for Rooming and Boarding. These are located at 901 South O'Leary Street (The Commons at Sawmill) and 555 West Forest Meadows Street (Freemont Station). Based on the location and the physical characteristics of the Commons at Sawmill, an 100% residential development, it will no-longer be regulated as a Rooming and Boarding development or a HOHD. Also, Freemont Station will no longer be regulated as a Rooming and Boarding development, although its location and physical characteristics do conform to the provisions of MHOHD. Therefore, Freemont Station will be considered a “legal” non-conforming development.

VI. Required Minimum and Maximum Dwelling Unit Types.

Staff is seeking City Council direction regarding considerations received pertaining to the incorporation of provisions that would require a multiple-family (three dwelling units or more) HOH development to have a minimum number of studio and one-bedroom dwelling units and a maximum number of four-bedrooms or more dwelling units. For example, a minimum of 20% of the total dwelling units shall be studio and one-bedroom units, and a maximum of 30% of the dwelling units shall be four-bedrooms or greater.

City Council Questions:

Does the Council desire to incorporate a minimum number of studio and one-bedroom dwelling units, and maximum number four-bedrooms and greater dwelling units?
If the Council desires to incorporate the aforementioned provisions, which type(s) of HOH developments should these apply to? For example, should the provisions apply to developments that exceeds 29 dwelling units per acre and/or 72.5 bedrooms per acre?

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STAFF RECOMMENDED ACTION:

EXECUTIVE SUMMARY:

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