October 18, 2005

SUBJECT: City of Sunnyvale’s Lot Coverage – Two Year Review  (Information Only)

REPORT IN BRIEF

In August 2003 the City Council approved a change in the maximum lot coverage for single-story residences from 40 to 45%. As part of that approval, Council directed staff to return in two years with a report on the number of property owners who have taken advantage of this change in lot coverage. This report provides the requested information. No Council action is required.

BACKGROUND

On July 1, 2002, the City Council adopted new regulations regarding Floor Area Ratios (FAR) for single-family homes or duplexes. These changes were adopted after a year-long study on issues associated with large homes. That study addressed concerns regarding the size of the homes, their effect on adjoining neighbors' privacy, the desire for community participation in the decision-making process and the architectural compatibility of these homes with the surrounding neighborhood. The City Council directed staff to return with information summarizing the number of Design Review applications over the previous year. In March of 2003, Council further directed an analysis of increased lot coverage as an incentive for single-story homes.

On August 12, 2003, staff returned with the requested information to Council for its review. Testimony was received from one interested citizen supporting the proposed maximum lot coverage increase. The City Council discussed the advantages and disadvantages of raising the allowable lot coverage percentage.  There was also discussion regarding the various possible alternatives to a straight 45% lot coverage. A subsequent motion carried unanimously 7-0, approving an increase in the maximum allowable lot coverage to 45% for single-story homes only. Two-story homes would still be subject to the current 40% lot coverage requirement. If an existing single-story residence was already built to the 45% maximum lot coverage and wished to add a second story, then 5% FAR from the existing home would be required to be removed. 

The Council generally felt that the advantages of increasing the allowable lot coverage for single-story homes outweighed any potentially negative consequences of allowing larger homes. Council stated that an increase in lot coverage for single-story homes would give an incentive to property owners to keep their homes at the first story level. Although this may produce larger homes in terms of square footages, the additional mass and scale would not have as significant an impact on privacy as would a new second story.  Additionally they felt this change in regulation would help to address the continuing problem of large homes.  (See Attachment A, Approved City Council Minutes)

As part of that approval, Council required staff to return in two years with a report on the number of property owners who have taken advantage of this change in lot coverage.

EXISTING POLICY

Lot Coverage: Municipal Codes §19.32.020 and §19.26.200 (f)(3) require that lot coverage for single-story homes in the R-0, R-1, and R-2 Zones not exceed 45% of the total parcel area. For two story buildings, the maximum lot coverage is 40%. These regulations also apply to enclosed and unenclosed patio area as well as all accessory utility buildings. The intent of the lot coverage is to limit building density and intensification of square footage, which could have an adverse impact on a neighborhood. The maximum lot coverage is also intended to limit the negative environmental impacts resulting from excessive land coverage. The City’s 40% lot coverage policy was in place in 1963 but may have been adopted earlier.

Floor Area Ratio (FAR) Threshold: This regulation requires Planning Commission review for all new homes or proposed additions that exceed the 45% FAR threshold for the residential zoning district. The intent of the threshold was to allow more extensive neighborhood notification and public input for homes that could have a significant impact on the surrounding neighborhood. The 45% threshold was adopted in July 2003.

DISCUSSION

Between August 2003 and August 2005 there were approximately 429 permits submitted for new residential square footage. This includes new residences and additions to single-family homes or duplexes. 300 of the 429 permits were reviewed and approved by the Planning Division through a Design Review Permit. The remaining 129 permits were reviewed and approved at the Community Development One-Stop Counter through a Building Permit only. In these cases, the permits requested additional square footage to existing homes, where the additional square footage is less than 20% of the existing residence.

The City Council wanted to know the number of property owners who have utilized the 5% increase in lot coverage over the past two years. Of the 300 Design Review applications, there were 24 permits approved for new single-story homes or additions between 40 to 45% FAR/lot coverage. There were 14 permits approved to change a single-story home to a new two-story home or new second-story addition between 40 and 45% FAR.

Therefore, 2/3 (63%) of the property owners who wished to have a home between 40 and 45% utilized the additional 5% lot coverage by keeping their homes at a one-story level. Of the 14 property owners who chose a two-story home, nine of those were new structures and five were new second stories. These numbers are derived only from Design Review Permits. Staff estimates that an additional 10 properties, that received Building Permits only, kept a single-story home by taking advantage of the additional lot coverage.

FISCAL IMPACT

No fiscal impacts are expected.