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P24-0334 Planning Commission 2 of 7 BACKGROUND State Density Bonus In order to align with updates to the State Density Bonus Law (Government Code §65915 et seq.), Program 2.7 of the adopted Housing Element indicates the City will amend the affordable housing density bonus provisions of the Pleasanton Municipal Code (PMC), in addition to Policy 11 of the General Plan Land Use Element . The amendments proposed as part of Exhibit A to this agenda report are to the PMC; staff proposes to modify the General Plan in conjunction with other amendments to the Land Use Element to allow for comprehensive review and discussion. The City established its Density Bonus Ordinance in 2013 as an implementation action of the 4th Cycle Housing Element adopted in 2012. Since that time, State law regarding density bonuses has been modified significantly and the City’s Density Bonus Ordinance, codified in PMC Chapter 17.38, is inconsistent with the current provisions of State law. Therefore, the proposed amendments as identified in Exhibit A propose to delete the majority of the existing text within Chapter 17.38 and replace it with updated text that is consistent with State law. Major Transit Stop Various sections of State law use the term, “major transit stop” to identify a public transit stop from where certain standards, most often minimum parking standards, may not be required. While this term itself is defined in the Public Resources Code of State law, the proposed amendments to the PMC are to: (1) provide more clarity on the point(s) from which the radius is measured; and (2) address parcels that may be partially in the radius (e.g., once a half-mile radius around the major transit stop is drawn, how to treat a parcel that may be only partially located in the radius). Separate Conveyance of Accessory Dwelling Units The City’s Accessory Dwelling Unit (ADU) ordinance is codified in PMC Chapter 18.106 and was most recently updated to reflect changes to State law in April 20241. At the request of a Commissioner, staff is bringing forward the topic of separate conveyance for discussion and consideration by the Planning Commission. Currently, the PMC does not allow the separate sale of an ADU and the primary residence. That is, the ADU cannot be sold or held under a different legal ownership than the primary residence and the lot containing the ADU also may not be subdivided. AB1033 (Exhibit C to this report) provides that a local agency may, by ordinance, allow the separate sale or conveyance of an ADU. SUMMARY OF STATE LAW AND PROPOSED PMC AMENDMENTS State Density Bonus Law State Density Bonus Law (SBDL) is intended to incentivize the production of dwelling units that are affordable to moderate- and lower-income households, seniors, students, foster youth, formerly homeless persons, or disabled veterans within new housing developments of at least five units, including mixed -use developments, new subdivisions, or common interest developments. The SDBL is a tool for developers to obtain greater density for projects that provide affordable dwelling units and is intended to reduce project costs and financing sources using economies of scale (i.e., a greater 1 The City Council adopted Omnibus changes to the PMC at its April 16, 2024, meeting (Ordinance 2277).