This study issue was raised in response to concerns that implementation of Proposition 36, which requires certain non-violent drug offenders to enter treatment programs instead of prisons, would lead to an increase in small group homes within the City. The purpose of the study is to review potential impacts to existing neighborhoods that might result from the implementation of Proposition 36. Staff has researched the existing policies addressing residential care facilities and the existing federal and state legislation that affects the City’s control over such facilities, and has determined that the existing City policies protect the City’s neighborhoods to the extent allowed under federal and state laws. Staff does not anticipate any significant impacts to existing neighborhoods resulting from the implementation of Proposition 36. Therefore, staff recommends that no action be taken on this study issue.

In the 2000 general election, California voters approved Proposition 36, the Substance Abuse and Crime Prevention Act. This law went into effect on July 1, 2001, and it requires certain non-violent drug offenders to enter treatment programs instead of prison. As a result of this law’s implementation, there may be an increase in small group homes within existing neighborhoods where treatment may be provided. This study issue was raised in order to review the potential impacts of this law’s implementation. Concerns that were raised include the potential for a concentration of group homes in certain neighborhoods, public notice and neighborhood security.

Proposition 36 requires that any drug treatment program used under this law be licensed and/or certified. Currently, licensing and certification of these facilities is provided by the state and counties or by private organizations such as the California Association of Alcoholism and Drug Abuse Counselors.

The City of Sunnyvale currently has 25 residential care facilities that are licensed through various state departments. Such facilities may include residential care facilities for the elderly, alcoholism or drug abuse recovery or treatment facilities, residential health facilities and community care facilities.

Since Proposition 36 was passed in November of 2000, the State Department of Alcohol and Drug Programs has licensed 110 new residential alcoholism or drug abuse recovery or treatment facilities throughout the state. However, there have been no new residential alcoholism or drug abuse recovery or treatment facilities licensed in Santa Clara County since Proposition 36 was passed. Therefore, the City of Sunnyvale has not experienced an increase in group homes or other impacts from the implementation of Proposition 36.

This item was reviewed at the Planning Commission Hearing on May 13, 2002. The Planning Commission discussed the enforceability of existing codes relating to residential care facilities. They also discussed the timing of this review in relation to the effective date of Proposition 36. The Planning Commission supported staff’s recommendation that no action be taken. (See Attachment B, Minutes from the Planning Commission Hearing.)

This item was reviewed at the Housing and Human Services Commission on May 22, 2002. The Housing and Human Services Commission discussed the existing policies regarding residential care facilities, such as overconcentration and the Use Permit findings. The Commission expressed concern that some neighborhoods may be more impacted than others due to differential real estate costs. Therefore, the Commission recommended that staff track the locations of group homes within the City. The Commission supported staff’s recommendation that no action be taken. However, they felt that the City should revisit this item next year with additional research into the impacts of Proposition 36 programs on City neighborhoods, including case studies on other cities. (See Attachment C, Minutes from the Housing and Human Services Commission.)

A residential care facility with seven or more residents shall be allowed in all zoning districts with a use permit. Any application for a use permit for a residential care facility shall be granted as long as the various code requirements listed in Chapter 19.64 are met. However, applications may be denied if the decision-making body finds that the proposed use would constitute a direct threat to the health or safety of other individuals or to other properties.

Policy A.4.c. The City will encourage residential care facilities that are distributed throughout the community.

Policy C2.1 Provide land use categories for, and maintenance of, a variety of residential densities to offer existing and future residents of all income levels, age groups and special needs sufficient opportunities and choices for locating in the community.

Existing City policies and ordinances regarding residential care facilities have been formulated to address both the potential impacts of an increase in small group homes in particular neighborhoods and the City's need to provide housing opportunities for all of its residents. The City regulates over-concentration and provides public notice to neighbors for facilities with seven or more residents. In addition to these land use controls, enforcement of laws and ordinances is provided through the Department of Public Safety as well as the Neighborhood Preservation Division.

The City's ability to impose additional regulations on group homes is severely restricted by various state and federal laws. The federal Fair Housing Act Amendments (FHAA), the Americans with Disabilities Act (ADA) and the state's Fair Employment and Housing Act (FEHA) all prohibit discrimination in housing based upon handicap. Under these acts, handicap includes physical disability, mental disability, recovering substance abusers, abused children, and persons with AIDS and HIV. These laws were enacted with the express intent of erasing stereotypes that have served to exclude handicapped individuals from mainstream American life. Congress determined that these individuals for many years had been denied housing because of misperceptions about their abilities and needs. The FHAA and FEHA seek to end the exclusion of handicapped persons from society by integrating them into all residential communities.

Under these laws, the City is prohibited from using permits and other land use controls to exclude recovering drug and alcohol addicts from residential communities. In addition, the California Health and Safety Code specifically provides that drug and alcohol treatment facilities which serve six or fewer persons are to be considered as a single family use of property, and must be allowed to locate in single family zones as a matter of right, subject only to provisions placed on all single family uses. Furthermore, the City is required to make reasonable accommodations for projects serving the handicapped, which in some instances could include exceptions to zoning regulations.

The City currently regulates group homes to the maximum extent permissible under state and federal laws. In addition, Sunnyvale has not experienced an increase in residential alcoholism or drug abuse recovery or treatment facilities since the passage of Proposition 36. Because the existing policies address the issues associated with residential treatment facilities to the degree possible and because there have been no impacts from the implementation of Proposition 36, staff recommends that no legislative action be taken, and that the situation be monitored as application of the proposition proceeds.

No fiscal impacts are expected.