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Page 3 of 5 many detached ADUs as there are primary dwelling units on the lot, whichever is less. SB 1211 does not alter the number of ADUs that lots with proposed multifamily dwelling can have — those remain limited to two detached ADUs. State law requires complete consistency between a local ordinance and the state ADU law. As such, the City must amend its ordinance to comply with the changes required by SB 1211. Attachment 1 to Exhibit A of this agenda report includes the revised text to Chapter 18.106 of the PMC, including amendments to Sections 18.106.060(C) and (D), in conformance with the above requirements. To date, the City has received two applications for multifamily ADUs – an application to construct two detached ADUs on a site with 8 existing units and an application to convert attached covered garages to 10 ADUs at a multifamily site with 456 units. The more liberal provisions of SB 1211 may allow for the construction of a greater number of units at more multifamily sites. AB 2533: Summary of Requirements and Proposed PMC Amendments Government Code section 66332 prohibits local agencies from denying a permit to legalize an unpermitted ADU that was constructed before January 1, 2018, if the denial is based on the ADU not complying with applicable building, state or local ADU standards. One exception allows local agencies to deny a permit to legalize if they make a written finding that correcting the violation is necessary to protect the health and safety of the public or the occupants of the structure. AB 2533 altered this requirement by amending Government Code section 66332 to: (1) expand its applicability to JADUs; (2) change the construction cutoff date from January 1, 2018, to January 1, 2020; (3) replace the above exception with a requirement that local agencies find that correcting the violation is necessary to comply with the standards specified in Health and Safety Code section 17920.3 (Substandard Buildings); (4) mandate new public- notification requirements about limits on local regulation, substandard-building criteria, and pre-application inspection by a private contractor; and (5) address scope of city inspections and limits on remedial action. Exhibit A to Attachment 1of this agenda report includes the revised text to Chapter 18.106 of the PMC, which adds Section 18.106.080, in conformance with the above requirements. Separate Conveyance of ADUs Since AB 1033 was adopted, very few jurisdictions have adopted an ordinance allowing the separate conveyance of ADUs; in staff’s research, San José is the first and only Bay Area jurisdiction to do so. Other jurisdictions have provided discussion of the new law to their decision-making bodies, but in most cases have suggested deferring adoption of local regulations, pending being able to gauge interest from the development community, and to benefit from the experience of other jurisdictions in developing and implementing an ordinance. The San José “ADU Condominium” ordinance, adopted on June 11, 2024 (Attachment 2) demonstrates the complexity of the process. To date, San José has received one application for ADU Condominium conversion. As can be seen in the ordinance, the requirements are lengthy and complex since they need to ensure that the separate conveyance includes Page 68 of 348