Monte Sereno gets creative with ADU proposal

Monte Sereno is taking a unique approach to satisfy its state-mandated affordable housing development requirements.

The City Council voted July 21 to put in place a 50% building permit reduction for residents who choose to build Accessory Dwelling Units, or ADUS, over the next eight years to incentivize development and satisfy its Regional Housing Needs Allocation (RHNA) requirements.

The city of about 3,000 residents is required to plan for 225 units, which includes 193 mandated units and a 15% buffer. Residents interested in building ADUS would sign a nonbinding letter of intent, which Monte Sereno staff will present to the state Department of Housing and Community Development as its housing development plan.

“If we can reach the 225 number, that's going to qualify us for our Housing Element to pass muster with the state and alleviate the problem of zoning new areas of the city for much higher densities, which, as you all know, we've received a lot of pushback on,” councilmember Shawn Leuthold said. Leuthold and Mayor Pro Tempore Bryan Mekechuk spearheaded the initiative.

The 50% fee reduction applies until Dec. 1 until 225 letters of intent are received — whichever comes first. However, city staff has to submit its plan to the state by late August.

Resident Steven Walker told the council that the city should have notified residents of the plan sooner.

“There is a general, very serious concern on many residents' parts about the lack of public notice,” Walker said. “It's unrealistic to expect residents of the city of Monte Sereno to make a major decision within the short period of time you have provided.”

Leuthold said the town created a “robust” outreach program that will start immediately.

Each of the city's five council members has been assigned a portion of Monte Sereno where they'll go door to door to spread the word. The councilmembers will team up with a member of the city's site and architecture commission to get the job done.

“We have a very robust plan for promoting the ADU program,” Leuthold said. “Our idea is the city councilmember will bear ultimate responsibility and be a touchstone point for questions, answers and, really, accountability to follow up on the ADU program.”

Reducing the fees will cost the town around $800,000 over the eight-year period, or approximately $101,250 per year.

“The city is acting in good faith, we're following the law and we want to help meet the state's housing requirements,” Mekechuk said.

Housing Element plans are due to the state later this year. If plans are not submitted or approved, the city could be subject to several penalties like lack of local oversight on new developments, litigation, fines and loss of grant funding.

If not enough ADUS are built or building permits issued within the first four years of the RHNA cycle, the state will put pressure on the city, staff said.