Trustee's SB9 duplex denial upheld over owner-occupancy affidavit

At 800 Corte Madera Avenue, trustee Victor Chiang sought an SB9 urban lot split and two-unit development to add a duplex behind the existing house. The Town's Community Development Director denied both applications in March 2026, and Chiang has since sued the Town in Marin County Superior Court (Case No. CV0009363).

“Neither the trust nor the trustee resides on the property. Accordingly, under the reasoning of HCD's technical advice to Orinda, the trustee is not eligible to apply for the lot split...”— Amy Lyle, Community Development Director

A Town Manager review of the record, completed in late March, kept the bottom line the same: the lot split denial is affirmed because the trust has not supplied an owner-occupancy affidavit required under state law, and the two-unit development denial is affirmed because its driveway depends on an unresolved 'paper street,' Alta Way, off Alta Terrace. The review did toss out two of the original rationales — that the applications were filed out of sequence, and that the lot split itself couldn't be approved over the paper-street dispute, since the new parcel would still legally front Alta Terrace.

The state's own housing department waded in on the applicant's side, telling the Town that property held in trust isn't automatically disqualified from SB9 review. Community Development Director Amy Lyle disagreed, maintaining that the trustee himself must live on the property to qualify. Chiang's attorney, Todd Williams, countered that the applications were 'deemed approved by operation of law on February 17, 2026,' which he argues satisfies the affidavit issue outright. Meanwhile, a hired surveyor flagged a recorded deed restriction and boundary problems that could complicate the lot split regardless of who wins the affidavit fight, and Central Marin Fire Department called the plans incomplete, saying a hydrant needs to move closer to the proposed new unit.

The Council meets in closed session Tuesday, Oct. 20, at 5:30 p.m. to get legal advice on the suit and on related exposure; no public vote is expected to come out of that session.

Council to vote on bonds for affordable housing project

At 33 San Clemente Drive, the Council holds a public hearing Tuesday on financing for an affordable housing project built by San Clemente II Housing Partners, L.P. The hearing is required because construction would be funded through tax-exempt bonds issued by the California Municipal Finance Authority (CMFA).

Staff is recommending the Council adopt Resolution No. 47/2026, approving the bond issuance and authorizing the Mayor to sign a Joint Exercise of Powers Agreement with CMFA, a standard structure that lets local housing projects tap state bond financing without the Town taking on the debt itself.

No opposition or discussion is noted in the agenda packet; the hearing is the next step toward closing the project's financing, posted as a routine action item for Tuesday's regular meeting.