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ORDINANCE 610 AN ORDINANCE OF THE TOWN OF LOS ALTOS HILLS AMENDING TITLE 9 (SUBDIVISIONS AND PLAN LINES) AND TITLE 10 (ZONING AND SITE DEVELOPMENT) OF THE LOS ALTOS HILLS MUNICIPAL CODE TO ADD ARTICLE 16 TO CHAPTER 1, AND ARTICLE 15 TO CHAPTER 1, RESPECTIVELY, ESTABLISHING REGULATIONS FOR THE SUBDIVISION AND DEVELOPMENT OF QUALIFIED SENATE BILL 9 PROPERTIES WHEREAS, a severe housing crisis exists in the state with the demand for housing outstripping supply; WHEREAS, in September 2021, Governor Newsom signed into law Senate Bill 9 ("SB 9"), entitled the "California Home Act". Amona, other provisions, this bill adds Sections 65852.21 and %-1 66411.7 to the Government Code and became effective on January 1, 2022. WHEREAS, SB 9 requires cities and counties, including the Town . of Los Altos Hills ("Town"), to ministerially approve a parcel map for an urban lot split and/or a proposed housing development containing a maximum of two residential units within a single-family residential zone, if the two - unit or subdivision project meets certain statutory criteria. SB 9 specifies that proposed projects and subdivisions cannot be situated in prohibited locations under Government Code Section 65913.4(a)(6)(B)-(K), such as in an earthquake fault zone, lands under conservation easement, a federally designated flood plain, and high fire hazard severity zones as defined under state law. WHEREAS, SB 9 further restricts the standards and regulations that local agencies, including the Town, may impose on qualifying two -unit or subdivision projects. For example, SB 9 specifies that local agencies may impose only objective zoning, subdivision, and design standards that do not conflict with the statutes, but such standards must not physically preclude a unit size of 800 square feet. In addition, SB 9 permits a local agency to deny a proposed two -unit or subdivision project only if the agency's Building Official makes a written finding based on preponderance of the evidence that the proposed project would have a specific, adverse impact upon public health and safety or the physical environment, which is a very high standard for municipalities to meet under the statute. WHEREAS, initially on December 16, 2021, pursuant to duly noticed public hearings, and subject to findings of urgency specifying the circumstances constituting the need for the immediate preservation of the public peace, health, and safety, the Town of Los Altos Hills adopted an urgency ordinance and further extended it for an additional twenty-two (22) months and fifteen (15) days to October 31, 2023 to establish certain regulations for Senate Bill (SB) 9 units in light of the need for the immediate preservation of the public health, safety and welfare as specified in the findings supporting the urgency ordinance and its extension. WHEREAS, the Town's 2023-2031 Housing Element considers SB 9 developments an important part of the Town's site inventory and housing strategy; the Housing Element included a number of programs to remove constraints, and encourage and facilitate SB 9 unit developments in Los Altos Hills. This includes the adoption of a revised, permanent SB 9 ordinance to replace the interim urgency ordinance, new Town policies "facilitating increased SB 9 production and increased density in the Residential -Agricultural (R -A) zone", an SB 9 education program, and program to advertise vacant dwellings including SB 9 units to find tenants from the larger region. Ordinance 610 Page 1