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Ms. Stern explained that the three -foot and five -foot setbacks assume that the structure is not habitable, such as sheds and other types of units, as opposed to second units which are habitable and potentially would have the windows open and some privacy issues. She noted that these structures already have established setbacks that are greater than the usual accessory structures. Commissioner Ritter commended staff for a great job on the analysis. He inquired what is driving this to happen and if the City is getting a lot of requests for second units. Ms. Diamond replied that the City is implementing its General Plan Housing Element, which includes policies and action programs that the City needs to consider and move forward on, one of which relates to second units. She noted that a number of Code Amendments have been processed to date, following the adoption of the Housing Element. Commissioner Ritter inquired if this is part of an affordable housing package. Ms. Diamond replied that it is related to affordable housing in that the Housing Element policy is to encourage the development of second units as a source of affordable housing. Mr. Dolan noted that during the Housing Element process, this was discussed at the Task Force, the Planning Commission, and the City Council levels, and the Council agreed that it was a good idea and adopted it, and it is now being implemented as instructed. Acting Chair Olson noted that there was also a change in the California Code. Ms. Diamond replied that back in 2003, there was a change in the State regulations requiring that cities allow second units by right under certain conditions. Acting Chair Olson commented that the City is then basically catching up with the California Code. Ms. Diamond replied that the City is actually caught up as the regulations that exist in the City's Code are in conformance with State regulations. She added that the City is trying to make it a little more flexible for homeowners. Commissioner Allen inquired how these units count in terms of housing affordability category: whether they are low- income or moderate - income, and how they count and help the City toward RHNA numbers. Ms. Stern replied that in other jurisdictions where there has been more likelihood that these second units have been rented out, they have been put in the category of low - and moderate - income housing. She added that the City's Housing Specialist, Scott Erickson, is trying to help owners who might want to rent their second units gain the EXCERPT: PLANNING COMMISSION MINUTES, August 14, 2013 Page 2 of 5