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Item No. 3.
MEETING DATE: September 8, 2025
TO:	PLANNING COMMISSION
FROM:	SUSAN KIM, DIRECTOR OF COMMUNITY & ECONOMIC DEVELOPMENT By: Sonya Lui, Planning Manager
SUBJECT:	CONSIDER AND PROVIDE A RECOMMENDATION TO THE CITY COUNCIL REGARDING AN ORDINANCE APPROVING ZONE CHANGE 25-0004 (ZCA 25-0004) TO ADD A NEW SECTION 17.12.070 (PARCEL MAPS FOR URBAN LOT SPLITS) TO CHAPTER 17.12 (PARCEL MAPS) OF TITLE 17 (SUBDIVISIONS) AND A NEW SECTION 18.24.060 (TWO-UNIT HOUSING DEVELOPMENT) TO CHAPTER 18.24 (R-1A, R-1B AND R-1C SINGLE-UNIT DWELLING ZONES) OF TITLE 18 (ZONING) OF THE LA HABRA MUNCIPAL CODE TO IMPLEMENT THE PROVISIONS OF SENATE BILL 9 (2021) AND SENATE BILL 450 (2024) RELATING TO TWO-LOT SUBDIVISIONS AND TWO-UNIT HOUSING DEVELOPMENTS IN ORDER TO COMPLY WITH STATE LAW

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

Zone Change 25-0004 was reviewed pursuant to the guidelines of the California Environmental Quality Act (CEQA) and determined to be exempt pursuant to the provisions of California Government Code Sections 65852.21(k) and 66411.7(n), which provide that an ordinance adopted to implement these statutes is not considered a project under CEQA.

RECOMMENDATION:

That the Planning Commission approve and adopt:

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF LA HABRA, CALIFORNIA, RECOMMENDING THAT THE CITY COUNCIL ADOPT AN ORDINANCE APPROVING ZONE CHANGE 25-0004 TO ADD A NEW SECTION 17.12.070 (PARCEL MAPS FOR URBAN LOT SPLITS) TO CHAPTER 17.12 (PARCEL MAPS) OF TITLE 17 (SUBDIVISIONS) AND A NEW SECTION 18.24.060 (TWO-UNIT HOUSING DEVELOPMENT) TO CHAPTER 18.24 (R-1A, R-1B AND R-1C SINGLE UNIT DWELLING ZONES) OF TITLE 18 (ZONING) OF THE LA HABRA MUNICIPAL CODE TO IMPLEMENT THE PROVISIONS OF SENATE BILL 9 (2021) AND SENATE BILL 450 (2024) RELATING TO TWO-LOT SUBDIVISIONS AND TWO-UNIT HOUSING DEVELOPMENTS AND MAKING A DETERMINATION THAT THE ORDINANCE IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTIONS 65852.21(k) AND 66411.7(n)

DISCUSSION:

Staff have prepared Zone Change 25-0004 (ZCA 25-0004) to update the La Habra Municipal Code (LHMC) to comply with State law requirements resulting from Senate Bill 9 (SB 9), signed into law in 2021, and amended by Senate Bill 450 (SB 450), signed into law in 2024. SB 9 and SB 450 pertain to two-unit developments and urban lot splits, as codified under California Government Code Sections 65852.21, 66411.7, and 66452.6 (see Attachments 2, 3 and 4, respectively), and further described below. In La Habra, these State law requirements only apply to properties within the City's R-1a, R-1b and R-1c Single-Unit Dwelling Zones. Since the La Habra Municipal Code (LHMC) is currently not consistent with State Law, staff have been and will continue to refer to California Government Code Sections 65852.21, 66411.7, and 66452.6 until Zone Change 25-0004 is adopted.

ZCA 25-0004 would modify Title 17 (Subdivisions) and Title 18 (Zoning) of the LHMC to comply with State law requirements for cities to allow a property owner to construct an additional primary dwelling unit on properties within single-family residential zones (the R-1a, R-1b and R-1c Single-Unit Dwelling Zones), in addition to the one primary dwelling unit that is currently permitted, with certain exceptions that are further described later in the report. In addition, ZCA 25-0004 permits property owners to split existing parcels within the R-1a, R-1b and R-1c Single-Unit Dwelling Zones into two parcels, which is referred to as an "urban lot split." Both the development of the additional unit and the urban lot split are required to be approved ministerially, i.e., by City staff instead of by the Planning Commission or City Council.

As shown below in Exhibit 1, when combined with State law requirements for cities to permit accessory dwelling units (ADU) and junior accessory dwelling units (JADU), permitting an additional primary dwelling unit could result in up to four dwelling units on a single property. However, if the property is subject to an urban lot split, the property owner would only be permitted to develop up to two dwelling units on each of the two newly-created parcels, as shown in Exhibit 2.

EXHIBIT 1

EXHIBIT 2

State law allows for certain exceptions. Properties located in the following areas or within the following categories, as further defined in the ordinance, are not eligible for two-lot developments and/or urban lot splits:

Historic districts or properties
Hazardous waste sites
Special flood hazard areas or floodways
Protected habitat areas
Demolishes or alters housing with affordability restrictions, rent or price control and/or occupied by a tenant in the last three years

State law further regulates the way in which the City must approve a two-unit development and/or an urban lot split as follows:

City must approve or deny an application for a two-unit development and/or urban lot split within 60 days from the date the City receives a complete application.
For two-unit developments, the City is prohibited from imposing objective zoning standards, objective subdivision standards, and objective design standards that would have the effect of physically precluding the construction of up to two units or that would physically preclude either of the two units from being at least 800 square feet in floor area. For urban lot splits, the City is prohibited from imposing any objective standards that would have the effect of physically precluding the construction of two units on either of the resulting parcels or that would result in a unit size of less than 800 square feet.
City may require one parking space per unit, unless the site is located within a half mile of a high-quality transit corridor or a major transit stop, or there is a car share vehicle located within one block from the site. In such circumstances, the City cannot require any parking spaces.

In addition, the following State law requirements apply to urban lot splits:

The property owner must live on one of the newly created lots for at least three years from the date of approval of the urban lot split.
Lots created from an urban lot split must be similar in size (no more than a 60:40 split).
No lot created can be less than 1,200 square feet.
Properties that are subject to an urban lot split cannot be split again as an urban lot split.
A property owner cannot have previously subdivided an adjacent parcel using an urban lot split.
Each lot must have adequate access to a public right-of-way.
The City cannot require setbacks from newly created lot lines to existing structures or structures constructed in the same location and to the same dimensions as an existing structure.
Dedication of easements may be required if necessary for public services and facilities.

FISCAL IMPACT/SOURCE OF FUNDING:

Costs associated with City-initiated amendments to the LHMC are included as part of the Planning Division's annual budget.

NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM (NPDES):

Not applicable.

GENERAL PLAN RELEVANCE/CITY COUNCIL GOALS & OBJECTIVES:

The following are relevant General Plan Policies:

LU 2.1 Places to Live. Provide opportunities for a full range of housing types, locations, and densities to address the community's fair share of regional housing needs and to provide market support to economically sustain commercial land uses in La Habra. The mix, density, size, and location of housing shall be determined based on the projected needs specified in the Housing Element, as amended periodically.
LU 6.4 Housing Type Distribution. Promote an equitable distribution of housing types for all income groups throughout the city and promote mixed-income developments rather than creating concentrations of below-market-rate housing in certain areas.
H 1.1 Support State Housing Policy. Continue to support State housing policies that aim to facilitate housing production.
H 1.3 Support Private Sector Housing Production. Facilitate the efforts of the private sector in the production of new housing for all economic segments of the community.
H 1.4 Variety of Housing. Promote a variety of housing types at scales, values, and locations carefully selected to provide housing opportunities for all economic segments of the population, while emphasizing the protection and conservation of existing single family neighborhoods.

The proposed zoning code amendment will also achieve the following Fiscal Year 2025-2026 City Council Goals and Objectives:

Goal 5 - Development Activity and Business Assistance
- Objective I. Update, implement and provide annual performance reports for the General Plan in compliance with State law.
- Objective J. Review the Zoning Code on an on-going basis and process amendments that ensure compliance with recent State legislation, streamline project processing, remove unnecessary regulations, and/or make the Zoning Code easier to implement.