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Planning commission reviews moderate-income housing report; cites form-based code adoption and limited local ADU interest
Summary
Commission reviewed its 2025 Moderate Income Housing (MIH) reporting items: form-based code adoption, entitled units, and ADU implementation. Staff said internal ADU rules were implemented; detached ADU changes remain pending state action.
The Sunset Planning Commission spent the bulk of its June 12 meeting reviewing questions and strategies for the city’s Moderate Income Housing (MIH) report and implementation progress.
Planning staff reminded the commission that the city adopted a form-based code on Dec. 19, 2023, and that the code and an earlier moratorium were intended to guide where higher-density and moderate-income residential development could occur. Staff asked the commission to report entitled-unit data as of May 1, 2025, and to identify barriers to development such as limited land, infrastructure, and financing challenges.
Staff said the city will report entitled residential units that have not yet received building permits, and gave the example of the Sunset Townhomes and other projects that have development agreements in place but not active building permits. The commission discussed several projects including a three-building Falcon project and a 1,300 North project; commissioners said some permits or plans remain incomplete or revised and that financing timelines have affected phasing.
On ADUs, staff reported that the city has implemented an internal ADU ordinance and related administrative forms before June 30, 2025. Staff said one ADU application has been received; that unit previously functioned as a grandfathered basement apartment and the applicant is pursuing inspections and a rental license. External (detached) ADUs remain deferred pending state legislative guidance. Several commissioners noted little local demand so far for new ADUs and that parking constraints and limited developable land reduce applicability in Sunset.
The commission also reviewed single-room-occupancy (SRO) as a strategy. Staff said there is little perceived market demand for SROs in Sunset and that SRO implementation would be contingent on how ADUs perform locally.
Commissioners asked staff to gather the specific numeric data requested in the MIH questionnaire (for example, counts of entitled units, ADU permits and building permits) so the city can submit the report by its deadline. No vote was taken on the MIH report content; staff will prepare the numerical responses and return to the commission for final review.
Ending: Staff indicated the MIH responses will be completed with numbers supplied by planning staff and returned to the commission; commissioners requested that staff note barriers to development in the report’s narrative sections.
