CITY COUNCIL REGULAR AGENDA PACKET

Page 2 of 5 proposed revisions to Chapter 18.106 at its February 12, 2025 meeting, and forwarded a recommendation to the City Council. After the March 18, 2025 City Council agenda was published, the City received a comment letter from California Housing Defense Fund (CalHDF), a housing advocacy group, identifying other potential revisions to the ordinance, and the item was pulled off the City Council agenda. City staff subsequently consulted with the California Department of Housing and Community Development (HCD) on the draft ordinance, including sharing a draft of the proposed Ordinance, and has implemented the changes required and suggested by HCD for compliance with State law. The Planning Commission reviewed the draft amendments, reflecting the subsequent revisions suggested by HCD, at its August 27, 2025, meeting and forwarded a recommendation for approval to the City Council. Staff re-sent the Planning Commission's recommended draft Ordinance to HCD, who suggested a minor clarification to Section 18.106.030 C., regarding the allowable number of ADUs on a parcel; this change is reflected in the draft Ordinance in Attachment 1. AB 1033: Separate Conveyance of ADUs Among the more recent changes to State law was AB1033, which permits local agencies to allow ADUs to be sold separately (“separately conveyed”) from the lot’s primary dwelling if certain conditions are met. At its September 11, 2024 meeting, the Planning Commission discussed the separate conveyance of ADUs, and expressed some, although not unanimous, interest in pursuing the concept. While recognizing that separate conveyance might encourage ADU production by allowing homeowners to receive more economic benefit when investing in the construction of an ADU, the report also noted concerns about potential complexities when separately conveyed ADUs are part of a Homeowners Association (HOA), and are subject to HOA rules and requirements. The City Council also discussed the topic as part of a discussion on October 15, 2024, and expressed an interest in further exploring it. Additional information on separate conveyance was provided to the Planning Commission at its February 12, 2025 meeting, and is outlined in the discussion section below. The discussion concluded with a recommendation from staff, supported by the Planning Commission, not to proceed with the adoption of provisions for separate conveyance of ADUs at this time due to the complexity and likely limited uptake of this provision. DISCUSSION The following is a summary of the proposed PMC amendments. As described, staff consulted with HCD representatives to review the draft Ordinance. Feedback from HCD is reflected in the Ordinance amendments: Statewide Exemption Accessory Dwelling Units The proposed revision better defines units that comply with Government Code section 66323 and non-exempt accessory dwelling units and uniformly references these two-unit types throughout Chapter 18.106. Standards for ADUs State law permits jurisdictions to apply objective development and design standards. The proposed revisions remove non-objective standards and clarify when these standards can apply. Replacement Parking Existing Government Code section 66314(d)(11) already prohibits local agencies from requiring off-street parking spaces to be replaced when a garage, carport or covered parking Page 77 of 376