Novato updates housing code to align with state law

Novato is tidying up its municipal code to align its housing element with state law.

The City Council unanimously approved a first reading of the amendments at its meeting on Aug. 27. The changes were recommended for approval by the Planning Commission on Aug. 12.

“We’re taking a proactive approach to monitor state requirements to ensure Novato is compliant,” Councilmember Rachel Farac said.

The changes involve issues such as density bonus calculations, affordable housing requirements, agricultural housing and rental apartment conversions to condominiums.

Brett Walker, a city planner, said the primary change involves the city’s affordable residence calculation when applying density bonuses, a state law that allows greater density if a proposed development meets certain design and location standards.

Walker said the city has used the correct calculation regarding previous development applications, but the code is required to be updated to align with state law.

“The city’s affordable housing ordinance is currently not consistent with state density bonus law,” he said. “This is just a cleanup item we need to do to fix our ordinance.”

The condominium amendment clarified the process to calculate the vacancy rate of the local rental housing market. The amendment provides that the city could use a consultant, paid by the conversion applicant, to update the vacancy rate at the time of the conversion.

Councilmember Susan Wernick expressed concern about an amendment that allows the development of agricultural housing in city property zoned as open space.

Walker said very few properties with that designation are owned privately and could allow for agricultural housing, which could permit 36 beds in group quarters or 12 dwellings for households. He said most properties are owned by public entities that would not allow for the use of that provision.

“I think the likelihood of any of these uses being located in the city is pretty low,” Walker said.

The additional amendments updated the code to allow certain housing developments in various zoning areas that previously did not allow them.

The city had to plan for 2,090 new residences in the eight-year planning cycle to meet its state quota. That includes 570 for very-low-income households, 328 for low-income households, 332 for moderate-income households and 860 for above-moderate-income households.

The housing element aims to use accessory dwelling units to meet the mandate. The city plans facilitate the construction of about 15 ADUs a year. The city also hopes to use vacant lots and buildings and has already rezoned areas to allow for more development.

The housing element was adopted by the city on Jan. 24, 2023. A revised version was approved on May 7.