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• Parties opposed to owner-occupancy requirements indicating that deed restrictions can "preclude the lender from occupying the property if lenders must foreclose on the property." At this time, particularly since it is uncertain whether the state law will be amended to prohibit owner-occupancy permanently, staff recommends retaining the owner-occupancy requirement related to ADUs approved prior to January 1, 2020. If the owner-occupancy provision is permanently removed in state law, the PMC could be amended at that time to indicate that all properties with ADUs, including those approved prior to January 1, 2020, do not require either the principal residence or the ADU to be owner-occupied. Conversion of Existing Amenities in Multifamily Developments As mentioned in this report, a Commissioner at the June 24 meeting suggested that multifamily developments not be prohibited from converting certain amenity areas to an ADU(s), particularly if that amenity is not well-used. Amenities such as laundry rooms, gyms, and community halls serve to provide a convenient facility to residents and are oftentimes negotiated during the approval process of multifamily development. Without reliable prescriptive measures to determine the level of use of a particular amenity, and assuming the amenity is used at least some of the time by a proportion of residents, staff proposes to retain language proposed in the PMC related to prohibiting amenity areas to be converted to ADUs. Windows in Second Story ADUs The Planning Commission asked staff to make the requirements for windows on second story ADUs more flexible by factoring in existing windows and allowing more flexibility on placement and size of new windows. The standards for windows in second story ADUs are intended to address two elements: new second story windows potentially overlooking (or looking into) an adjacent residence; and into an adjacent private yard. For adjacent residences, the PMC establishes separation requirements between structures on adjacent properties, in addition to typical setback requirements. These separations range from 17 to 20 feet, depending on the relative number of stories of the adjacent structures.3 These standards apply to accessory structures and would be applicable to second story ADUs, whether attached or detached. The following standards are proposed to address these two conditions. They seek to allow flexibility where windows are not directly facing an adjacent residence or private yard. They would not be required the distance between the ADU and an existing structure is more than 25 feet, or when facing a yard, the ADU is more than 15 feet from the shared property line. Windows in an ADU Proposed as a Second-Story Addition to a Main Structure, or within a detached ADU The following standards are proposed: • At least one of the following measures must be implemented for new windows facing any neighboring residence that is less than 25 feet from the proposed ADU: Specifically, two, two-story structures must be separated by a minimum of 20 feet, whereas a single-story and a two-story structure must be separated by at least 17 feet. P20-0412, Accessory Dwelling Units Planning Commission 7 of 9 rements, 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