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P25-0026, ADU PMC Amendments Planning Commission 4 of 5 Attachment 1 to Exhibit A of 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 development 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 , is attached to this report as Exhibit C and 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 adequate provisions for management and maintenance of common areas, including lienholder consent and the formation of an HOA for the primary unit and ADU. No jurisdictions similar to Pleasanton (i.e. with a large number of planned unit developments and active HOAs) have adopted an ordinance to permit separate conveyance. As was discussed in the September 11 Agenda Report, many residential neighborhoods in Pleasanton are part of a Planned Unit Development and subject to an HOA and its CC&Rs. Staff believes allowing separate conveyance for properties with existing HOAs could raise complex questions about how dues would be assessed, and how ADU subdivisions would interface with existing CC&Rs and property maintenance and easement agreements. Given these complexities, prevalence of HOAs in Pleasanton, unknown level of interest among property owners in separate conveyance, and added administration for both staff and existing HOAs to allow separate conveyance of the principal unit, staff does not recommend dedicating limited staff resources to developing a local ordinance to allow separate conveyance at this time. If there proves to be substantial property owner interest, and the opportunity to learn from the experience of other similar communities, adopting such an ordinance may be appropriate in the future. PUBLIC NOTICE AND COMMENTS Notification of this code amendment has been published in The Valley Times as an upcoming agenda item for the February 12, 2025, Planning Commission meeting. At the time this report was prepared, staff had not received comments regarding the proposed code amendment. ENVIRONMENTAL ASSESSMENT The proposed code amendments are statutorily exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.17 and CEQA Guidelines Section 15282(h) in that CEQA does not apply to the adoption of an ordinance implementing state ADU law. The proposed amendments are also statutorily exempt pursuant to CEQA Guidelines Section 15268, in that the amendments are necessary to conform to and implement the ministerial approval processes mandated by State law . The amendments are further exempt pursuant to CEQA Guidelines Section 15061(b)(3) in that there is no possibility the activity will have a significant effect on the environment.