REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning and Development Department THROUGH: ASHLEY ATKINSON, Assistant Director Planning and Development Department SOPHIA PAGOULATOS, Planning Manager Planning and Development Department BY: CASEY LAUDERDALE, Supervising Planner Planning and Development Department SUBJECT ..Title Consideration of Development Code Text Amendment Application No. P25-00996 amending various sections of the Fresno Municipal Code pertaining to tiny houses on wheels, accessory dwelling units, manufactured homes, the RM-MH zone district, agricultural labor housing, and housing terminology; and corresponding General Plan Text Amendment amending Chapter 3 of the Fresno General Plan, Table 3-1: Citywide Standards for Density and Development Intensity. 1. ADOPTION of a finding set forth in Environmental Assessment No. P25-00996 dated May 12, 2025 that the environmental determination that Plan & Text Amendment Application No. P25-00996 is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the State CEQA Guidelines. 2. BILL (for introduction) amending the following sections of the Fresno Municipal Code: a. Section 15-2738, updating regulations pertaining to tiny houses on wheels (THOW) and design standards for manufactured homes. b. Section 15-903, updating regulations pertaining to minimum density in the RM-MH zone district. c. Sections 15-310, 15-802, 15-902, 15-1002, 15-1102, 15-1202, 15-1502, 15-2004, 15-2409, 15-2723, 15-2753, 15-2754, 15-4907, and 15-6702 of the Fresno Municipal Code, updating regulations pertaining to accessory dwelling units. d. Sections 15-902, 15-1002, 15-1302, 15-1402, and 15-6707, updating regulations pertaining to where agricultural labor housing is permitted; and e. Sections 15-107, 15-310, 15-313, 15-404, 15-405, 15-9, 15-901, 15-902, 15-903, 15-904, 15-906, 15-10, 15-1001, 15-1002, 15-1003, 15-1004, 15-1101, 15-1104, 15-1201, 15-1204, 15-1304, 15-1606, 15-1609, 15-2004, 15-2006, 15-2008, 15-2012, 15-2015, 15-2016, 15-2303, 15-2304, 15-2305, 15-2308, 15-2311, 15-2405, 15-2409, 15-2414, 15-2416, 15-2421, 15-2429, 15-2609, 15-2612, 15-2713, 15-2716, 15-2720, 15-2722, 15-2723, 15-2725, 15-2734, 15-2735, 15-2738, 15-2746, 15-2747, 15-2753, 15-2754, 15-2763, 15-3701, 15-3804, 15-3906, 15-4103, 15-4105, 15-4108, 15-4906, 15-4907, 15-5102, 15-6102, and 15-6702, updating language from "single-family" and "multi-family" to "single-unit" and "multi-unit." 3. RESOLUTION amending Chapter 3, Table 3-1, of the Fresno General Plan: Citywide Standards for Density and Development Intensity, pertaining to minimum density of the RM-MH Zone District. ..Body RECOMMENDATION Staff recommends approval of Text Amendment Application No. P25-00996 amending various sections of the Fresno Municipal Code pertaining to tiny houses on wheels, accessory dwelling units, manufactured homes, the RM-MH zone district, agricultural labor housing, and housing terminology; and corresponding General Plan Text Amendment amending Chapter 3 of the Fresno General Plan, Table 3-1: Citywide Standards for Density and Development Intensity. EXECUTIVE SUMMARY The proposed text amendments to the Fresno Municipal Code and Fresno General Plan are intended to reduce barriers to housing, fulfill commitments that will enable the City to re-obtain its former Prohousing Designation, and align with the programs of the adopted 2023-2031 6th Cycle Housing Element. These amendments ensure consistency with State housing law and support the City's housing objectives. This report includes a brief description of each element of the text amendment, the environmental and Development Code findings, as well as input from the Council District Project Review Committees, Planning Commission, and Airport Land Use Commission staff. BACKGROUND Plan & Text Amendment Application No. P25-00996 addresses multiple housing-related topics, as outlined below. See Exhibit A for the draft Development Code Text Amendment. These amendments are being proposed for three primary reasons: (1) to regain the City's Prohousing Designation, (2) to implement programs adopted in the 2023-2031 6th Cycle Housing Element, and (3) to conform with State law. Manufactured Homes Plan & Text Amendment No. P25-00996 will make two modifications to Section 15-2738. The first is to clarify that the orientation of manufactured homes used as a primary residence must be towards the street only when that orientation is required by the base zone district. This is necessary because State law, with few exceptions, does not allow a manufactured home to be treated differently than a conventionally built home, and the code currently applies a different standard to manufactured homes in this regard. The second update to Section 15-2738 is to include tiny houses on wheels (THOW) under regulations for other types of manufactured homes, which will permit them to be used as a primary residence. A THOW used as a primary residence will be required to be placed on an engineered foundation and include skirting to enclose the wheels and area beneath its trailer. This change is a commitment made as part of the City's Prohousing Designation and its fulfillment is necessary to re-establish designation. RM-MH Zone District Plan & Text Amendment No. P25-00996 will modify Table 15-903 to change the minimum density requirement for the RM-MH (Mobile Home Park) zone district from 12 dwelling units per acre to eight dwelling units per acre, which aligns with the density of existing mobile home parks within the city. Thus, this modification would support conformity with the requirements for more mobile home parks. Concurrently, a minor amendment is proposed to the General Plan to footnote the adjusted minimum density of the RM-MH zone district in Table 3-1: Citywide Standards for Density and Development Intensity (see Exhibit B). Accessory Dwelling Units Plan & Text Amendment No. P25-00996 will update terminology throughout the Development Code, changing the currently used term "Second Dwelling Units, Backyard Cottages, and Accessory Living Quarters" to "Second/Accessory Dwelling Units" (ADUs). In addition, Section 15-2754 will be repealed and replaced in its entirety in order to improve the clarity of regulations for second dwelling units. The replacement Section is consistent with current State law, moving away from outdated typologies and utilizing typologies defined by the State (i.e. ADUs and Junior ADUs). It includes standards for the number and size of ADUs permitted, as well as parking and owner occupancy requirements. It also includes some changes to further incentivize ADU production as an important aspect of creating housing opportunities. These changes are necessary to be consistent with State law, to implement the Housing Element, and to regain the City's Prohousing designation. Agricultural Labor Housing Plan & Text Amendment No. P25-00996 will update the Use Tables for multiple Zone Districts to clarify where agricultural labor housing is permitted. Currently, the Code only lists agricultural labor housing in the Buffer Zone District; however, per State law this use is considered an agricultural use and is allowed wherever crop cultivation is permitted. P25-00996 therefore will include agricultural labor housing as a permitted use in all Zone Districts where crop cultivation is permitted. This update is necessary to comply with State law, to implement the Housing Element, and to improve clarity in the Code. "Family" to "Unit" Plan & Text Amendment No. P25-00996 will change the terms "single-family" and "multi-family" to "single-unit" and "multi-unit" throughout the Development Code to make the language more objective. This is necessary to implement the Housing Element and for consistency with State law. The amendments outlined above align with the City's commitment to address housing shortages, reduce barriers to housing development, and comply with State law. About the Prohousing Designation On November 3, 2022, the City Council adopted Resolution 2022-240 to authorize the submission of an application to the State of California Prohousing Designation Program. The City received the Prohousing Designation from HCD in March 2023. As part of this designation, the City committed to implementing certain actions to further reduce barriers to housing production, including various text amendments. The Prohousing Designation is important for securing State funds because it makes the City eligible for certain funding sources and increases the City's score on grant applications, therefore making the City more competitive. The City lost its designation in May 2025 and will not be able to reapply for designation until the prior commitments have been fulfilled or substituted for other actions. About the Housing Element The City's 2023-2031 6th Cycle Housing Element, which was adopted in December 2024 and certified by the State in January 2025, included policies and programs to address the City's housing needs, strategies to help facilitate more housing production, and provide more affordable housing options. Particularly, Housing Element Program 25 outlines the commitment to bring forward Code amendments for compliance with State Law and to reduce barriers to housing development. Cities are legally obligated to implement Housing Element programs. Committee & Commission Review Project Review Committees Plan & Text Amendment Application No. P25-00996 was reviewed by the following Council Project Review Committees. Council District 1 The Council District 1 Project Review Committee met on May 8, 2025. The Committee recommended approval following questions about several topics within the Text Amendment, including the motivation behind the changes proposed. Council District 2 The Project Review Committee is currently inactive. Council District 3 The Council District 3 Project Review Committee met on April 22, 2025. The Committee had questions primarily about THOWs and RM-MH minimum density. Committee members recommended that staff review issues that other cities have encountered with THOWs; review the potential impact of THOWs on infrastructure capacity; set fees to align with the small size of THOWs; consider design guidelines for THOWs and ADUs, especially in historic districts; disallow THOWs for group homes or rehabilitation facilities (to ensure they are used for housing and not commercial enterprises); and ensure THOWs have high-quality construction. Council District 4 The Council District 4 Project Review Committee met on April 15, 2025. The Committee had questions regarding property taxes for THOWs; cost of THOWs; and about the ability to use a variety of housing types on a single lot. The committee indicated support and commented that the City should also take actions to ensure affordability for tiny houses and ADUs. Council District 5 The Council District 5 Project Review Committee was inactive at time of the drafting of this report. Council District 6 The Council District 6 Project Review Committee met on May 14, 2025. The Committee had questions about why the word "family" is being changed to "unit," about the number of persons allowed per unit, and whether or not developers would be restricted to building the minimum density only. The Committee did not have any pressing issues with the proposed changes. Council District 7 The Council District 7 Project Review Committee is currently inactive. Tower District Design Review Committee The Design Review Committee was initially scheduled to hear the item on May 6, 2025; however, the Committee did not have quorum and therefore the meeting was cancelled. The item will instead be presented at their June 3, 2025 meeting. Airport Land Use Commission Staff for the Airport Land Use Commission stated that the proposed changes did not necessitate review by the Commission as they would not impact Airport Safety Zones (see Exhibit C). Planning Commission The Planning Commission considered the application plus an errata sheet (see Exhibit I) at its regular meeting of May 21, 2025, and recommended approval (including the errata) to the City Council by a 5-0 vote with two members absent. No community members spoke on the item. See Exhibit D. PUBLIC NOTICE Pursuant to the requirements of Fresno Municipal Code section 15-5806 and 15-5007-D, notice of this public hearing was published in the Fresno Bee on April 30, 2025 for the Planning Commission hearing and on May 30, 2025 for the City Council hearing (see Exhibit E), which is at least 20 and 10 days prior to the public hearings, respectively. In addition, the notice was posted on the City Clerk's website and provided to the City's planning notices email list. ENVIRONMENTAL FINDINGS An environmental determination was made for this Plan & Text Amendment in accordance with the requirements of the California Environmental Quality Act (CEQA). It was determined to be exempt from CEQA pursuant to the commonsense exemption set forth in CEQA Guidelines Section 15061(b)(3) which states that CEQA applies only to projects that have the potential for causing a significant effect on the environment pursuant, and that when it can be seen with certainty that that there is no possibility that the activity in question will have an effect on the environment, it is not subject to CEQA. (see Exhibit F). The Project proposes to implement changes to the Fresno Development Code to update terminology, clarify the applicability of existing State law regarding agricultural labor housing, adjust minimum density requirements in certain zone districts, adjust design guidelines for certain structures, and adopt language implementing existing State requirements to allow the development of ADUs and JADUs. None of these changes impact development capacity or intensity, and as such there is no possibility that they will have a significant effect on the environment. Therefore, they are exempt from CEQA pursuant to the commonsense exemption set forth in CEQA Guidelines 15061(b)(3). FRESNO MUNICIPAL CODE FINDINGS The Planning Commission shall not recommend, and the City Council shall not approve, a Text or Plan Amendment application unless the proposed amendments meet the criteria set forth in the Fresno Municipal Sections 15-5811 and 15-5812. Staff concludes that the required findings can be made and are provided in Exhibit G. LOCAL PREFERENCE No procurement is associated with this item. FISCAL IMPACT No fiscal impact is associated with this item. Attachments: Exhibit A Development Code Text Amendment Exhibit B General Plan Text Amendment Exhibit C ALUC Memo Exhibit D Planning Commission Resolutions 13896 & 13897 Exhibit E Fresno Bee Notice Exhibit F CEQA Exemption Memo Exhibit G Fresno Municipal Code Findings Exhibit H Presentation Exhibit I Errata Presented to Planning Commission