In 1987 Nevada City adopted its Second Unit Ordinance, which outlined the conditions under which a secondary residence could be added to a single family home. Since that time there has been a growing number of cases of newly constructed, second residential units on some properties that were not permitted by the city. They are known as illegal second units.
This problem has been a continuous concern to the city for many years, and it is now being remedied. The City Council has discussed this issue at length at public meetings, and as a result, two processes now exist: (1) a new Second Unit Ordinance and (2) a Second Dwelling Unit Leniency Program.
To begin, city staff is aware of many potential illegal second units within the city limits, which indicates the present system needs to change.
Nevada City is diligently working to meet the affordable housing requirements of the state of California, which mandate that every California city provide its fair share of affordable housing. This is an ongoing process and the deadline to meet the current standards is August 2009.
One method of meeting these housing numbers is to "upzone" properties to a density of permitted housing that is much higher than is allowed under current zoning. We don't know to what extent this will be necessary, but we do know from past land-use applications and experience that this process can be highly contentious and controversial in Nevada City. Many residents living near the prospective properties
believe these applications are highly undesirable for their neighborhoods.
In the case of existing illegal second units, however, these units are already in place and occupied by residents. Helping the property owners legalize them does not change the character of our neighborhoods nor does it increase neighborhood traffic.
Secondly, the tenants of these units often believe that they are living in legitimate, affordable, legally recognized housing. The city does not want to deprive them or our community of this housing inventory, but is hopeful these units can become legal units.
There is also the issue of the water and sewer rates and the inevitable increases to those rates that occur over time to help Nevada City meet California's health and environmental requirements. If these second units were brought into the billing system, approximately $85,000 per year would accrue to our city in new water and sewer usage fees.
Having everyone pay their fair share would go a long way toward keeping our water and sewer bills at reasonable levels. The city also wants to be fair to those who have in the past gone through the entire process "by the book" and paid all of the fees due the city.
The City Council has developed a Second Dwelling Unit Leniency Program that is working its way through the system and will become law on Dec. 24.
For those property owners that are operating an illegal second unit there are several attractive options and programs to help them legalize their unit.
Available programs available include a financial incentive for the upfront payment of city fees due, as well as payment-plan and deferred payment options. For those property owners who are unable to participate in either of the payment plans there is an option to voluntarily record a lien against their property and allow the fees to be paid the next time the property sells.
And for those willing to deem their second units as "affordable" using the definition for California household income criteria, there is an option already on the books that allows all fees to be waived. A study on rental rates within the city has shown that many of the rents on second units meet the "affordable" income level requirements.
The Nevada City Council and city staff are committed to help bring into compliance any and all Nevada City properties that have an illegal second unit.
Please call me, Cindy Siegfried, city planner at City Hall, 265-2496, extension 130, to make an appointment (either in person or by telephone) so we can discuss these options and opportunities.
Remember, this program expires once and for all on March 31, 2009, so it is important to quickly take advantage of this opportunity. Please come to City Hall or contact me so we may help convert any illegal second unit into one that is completely legal. Thank you.
Cindy Siegfried is city planner of Nevada City.
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