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7.E. - Page 5 of 43 increasing lot coverage to maintain viable developable area in the rear yard. Of the 79 total ADUs proposed in 2020, 11 were proposed above 800 square feet, all of which were detached from the main home. The Planning Commission supported staff's recommendation to exempt ADUs from lot coverage because of the limited allowable application of lot coverage to ADUs by State law and to provide more flexibility given the proposed 16 ft. height limit for detached ADUs. Recommendation: Exempt all ADUs from lot coverage requirements. Short Term Rentals: State law requires cities to prohibit short-term rentals of ADUs up to 800 sq. ft. and allows cities the option to prohibit short-term rentals of all other ADUs. Short-term rentals are defined as dwelling units or portions thereof that are rented for periods lasting less than 30 days, commonly offered through online hosting platforms such as Airbnb, VRBO, and HomeAway. The City's short-term rental regulations, adopted in 2018, do not allow an ADU to be used exclusively as a short-term rental and may only be used if the ADU is the primary residence of the short-term rental host and then would be limited to 120 calendar days within a year. There are currently seven properties in Redwood City that contain both an ADU and a registered short-term rental. In July 2020, the City Council indicated that these existing seven properties may be financially impacted by retroactively restricting them from using their properties as short-term rentals. The Planning Commission supported ADUs as long-term rentals to address housing supply and housing affordability. Homeowners would still be able to rent ADUs on a long-term basis greater than 30 days. Recommendation: Prohibit short-term rentals for any existing or new ADUs. INFORMATIONAL UPDATES California Dept. of Housing and Community Development (HCD) Update Since the August 2020 Planning Commission hearing, staff has received feedback from HCD on their review of the City's proposed ADU ordinance amendments, and in September HCD also released an ADU Handbook summarizing the changes to State law. The City is required to submit the finalized ADU ordinance to HCD to review for compliance with State law. The following clarifying comments are based on the HCD ADU handbook, HCD's review of the City's draft ordinance, and HCD's responses to staff questions: • The proposed height recommendation for a 16 ft. height maximum for an attached ADU within the rear setback would comply with State law. • ADUs are required to be allowed along secondary frontages with a 4 -foot setback on corner lots. (As a result of this feedback, revisions to various Zoning Ordinance articles to alter secondary street frontage standards are no longer being proposed.) • On multi -family lots, cities must allow either a conversion of uninhabited space for up to 25% of units in multifamily buildings or allow up to two detached ADUs. The City is not required to combine the requirement, however the proposed ordinance would allow for both in order to provide a variety of ADU opportunities. Page 5 of 8 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org 628