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PMC in the early 2000s1. Therefore, not all properties with an accessory dwelling unit also have a deed restriction on file with the City. In 2003, City Council directed that deed restrictions for ADUs include generic language and refer to the PMC for current regulations. Accordingly, the PMC currently indicates the following language be included in a deed restriction for an ADU2: "The property contains an approved accessory dwelling unit pursuant to Chapter 18.106 of the Pleasanton Municipal Code and is subject to the restrictions and regulations set forth in that chapter. These restrictions and regulations generally address subdivision and development prohibitions, owner occupancy and lease requirements, limitations on the size of the accessory dwelling unit, parking requirements, and participation in the city's monitoring program to determine rent levels of the accessory dwelling units being rented. Current restrictions and regulations may be obtained from the city of Pleasanton planning division. These restrictions and regulations shall be binding upon any successor in ownership of the property." As directed by City Council, the language in the deed restriction itself does not specify the owner-occupancy requirements. If the Planning Commission desires to remove owner- occupancy requirements for ADUs approved before January 1, 2020, the language in the PMC [specifically Section 18.106.060(A)] related to the owner-occupancy requirement would be modified, as would the language in the PMC related to deed restrictions. However, the requirement specifically for the deed restriction would remain since the deed restriction serves to inform a future purchaser about limitations other than just the owner-occupancy requirement. The analysis for several of the Senate and Assembly bills that led to the amendment of state law included the following points regarding owner-occupancy requirements: • Parties supportive of retaining the owner-occupancy requirement indicating that removing the owner-occupancy requirement "would incentivize operating the property as a commercial enterprise and could have the unintended effect of large-scale investors purchasing many single-family homes and adding ADUs, thus operating more like a property management company, not a homeowner seeking some additional income." 1 As an example, in the Carlton Oaks and Walnut Hills neighborhoods (located near Interstate 680, Foothill Road, and Bernal Avenue), ADUs were constructed as part of the original Planned Unit Development. Conditions of approval for the project required, among other things, owner occupancy of either the primary unit or the ADU. In other developments known to have ADUs, primarily those where a long time has elapsed since ADU approval, staff was not able to locate a deed restriction, condition of approval, CC&Rs, or other document requiring owner occupancy of either the principal unit or the ADU. However, as mentioned in this report, the deed restriction typically indicates that the ADU is subject to the requirements of the PMC, and it is the PMC (not the deed restriction)that stipulates the owner occupancy requirement. z In order to make clear the City's compliance with current state law requirements, the amendments to the PMC propose to add the following language: Restrictive covenants for accessory dwelling units approved between January 1,2020 and January 1,2025 shall not include a provision requiring owner occupancy of the primary dwelling or the accessory dwelling unit. After the June 24 Planning Commission meeting, staff also modified the language in PMC Section 18.106.060(A) such that it refers to ADUs approved both before and after January 1, 2020. P20-0412, Accessory Dwelling Units Planning Commission 6 of 9 ing windows to allow for those windows to be the same size, shape, and height. Planning Commission Minutes Page 3 of 9 June 24, 2020