*NOT YET APPROVED*
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Attachment C – Draft Text to Allow Separate ADU Ownership
1. Establish Section 21.09. (Parcel Maps for Separate Sale of ADUs) of Title 21 (Subdivisions and Other Divisions of Land)
21.09.010 Purpose and Applicability
The intent of this Chapter is to implement California Government Code Section 66342 and to apply objective local development standards for condominium subdivisions that facilitate separate conveyance of accessory dwelling units.
Except as expressly stated in this Chapter, all other objective policies and requirements governing subdivisions shall apply. Where this Chapter or Government Code Section 66432 conflict with any other provisions of this Code, this Chapter and the Government Code shall control.
21.09.020 Permit Required
Pursuant to Government Code Section 66342, this Chapter provides for the streamlined approval of subdivisions for condominium purposes to permit separate conveyance of existing or proposed Accessory Dwelling Units (ADU) from a primary residence. These condominiums shall be sold or otherwise conveyed separate from the primary residence only under the conditions outlined in this Chapter or pursuant to Government Code Section 66342.
21.09.030 ADU Condominium Requirements
To achieve the purposes of this Chapter, all projects shall conform to the following requirements:
(a) The Director of Planning is authorized to promulgate regulations, forms, and/or checklists setting forth application requirements for a parcel map for this Chapter.
(b) All structures and buildings included as part of a condominium project shall conform to the building and zoning requirements applicable to the zoning district in which the project is proposed to be located. Designation of individual condominium units shall not be deemed to reduce or eliminate any of the building and zoning requirements applicable to any such buildings or structures.
(c) The condominium shall be created pursuant to the Davis-Stirling Common Interest Development Act (Part 5 (commencing with Section 4000) of Division 4 of the Civil Code).
(d) The condominium shall be created in conformance with all applicable objective requirements of the Subdivision Map Act (Division 2 (commencing with Section 66410)) and all other objective requirements of this Chapter.
*NOT YET APPROVED*
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(1) Neither a subdivision map nor a condominium plan shall be recorded with the county recorder without each lienholder’s consent. The following shall apply to the consent of a lienholder:
(A) A lienholder may refuse to give consent.
(B) A lienholder may consent provided that any terms and conditions required by the lienholder are satisfied.
(2) Prior to recordation of the initial or any subsequent modifications to the condominium plan, written evidence of the lienholder’s consent shall be provided to City staff and the county recorder along with a signed statement from each lienholder that states as follows:
“(Name of lienholder) hereby consents to the recording of this condominium plan in their sole and absolute discretion and the borrower has or will satisfy any additional terms and conditions the lienholder may have.”
(3) The lienholder’s consent shall be included on the condominium plan, or attached to the condominium plan that includes the following information:
(A) The lienholder’s signature.
(B) The name of the record owner or ground lessee.
(C) The legal description of the real property.
(D) The identities of all parties with an interest in the real property as reflected in the real property records.
(E) The lienholder’s consent shall be recorded in the office of the county recorder of the county in which the real property is located. (e) An ADU shall be sold or otherwise conveyed separate from the primary residence only under the conditions outlined in this Chapter, Title 21 of the Palo Alto Municipal Code, and under the applicable conditions of Government Code Section 66342. Prior to approval of a parcel map, a home or property owners’ association or similar entity shall be formed for any condominium project. The association shall, at a minimum, provide for the administration, management and maintenance of all common areas including landscaping, drive aisles and parking areas, maintenance of the exterior of all buildings, pool or common roof, the collection of dues, payment of public utilities not billed separately to each unit, and enforcement of standards within the project. (1) The owner of a property or a separate interest within an existing planned development that has an existing association, as defined in Section 4080 of the Civil Code, shall not record a condominium plan to create a common interest development under Section 4100 of the Civil Code without the express written authorization by the existing association.
*NOT YET APPROVED*
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(2) For purposes of this subparagraph, written authorization by the existing association means approval by the board at a duly noticed board meeting, as defined in Section 4090 of the Civil Code, and if needed pursuant to the existing association’s governing documents, membership approval of the existing association.
(f) The applicant shall prepare a declaration of covenants, conditions and restrictions (CC&Rs) which shall be recorded and apply to each owner of a condominium unit within the project. The CC&Rs shall be recorded at, or prior to, the time of parcel map approval, and shall include all applicable conditions of approval and requirements of the City. The CC&Rs shall, at a minimum, provide:
(1) That any amendment to the CC&Rs related to the conditions of approval or other requirements of this Chapter may not be approved without prior consent of the City.
(2) That there shall be an entity created (e.g., a property or homeowners’ association) which shall be financially responsible for and shall provide for the effective establishment, operation, management, use, repair and maintenance of all common areas and facilities.
(3) A provision containing information regarding the conveyance of units and any assignment of parking, an estimate of any initial assessment fees anticipated for maintenance of common areas and facilities, and an indication of appropriate responsibilities for maintenance of all utility lines and services for each unit. (4) A provision addressing the payment of utilities including water, sewer, gas and electricity by the homeowner or through the association. (5) A provision requiring that any owner who rents his/her condominium unit shall conform to the homeowners’ association which is responsible for management of the common areas and enforcement of the CC&Rs.
(6) That rental of any dwelling unit created by the parcel map shall be for a term longer than 30 consecutive days.
(g) In addition to such covenants, conditions, and restrictions that may be required by the Department of Real Estate of the State of California pursuant to Title 6 (Condominiums) of the Civil Code or other State laws or policies, the organization documents shall provide for the following:
(1) Conveyance of units.
(2) Management of common areas within the project.
*NOT YET APPROVED*
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(3) A proposed annual operating budget containing a reserve fund to pay major anticipated maintenance, repair, or replacement expenses; and indicating the association fees needed for the operating budget and reserve fund. (4) FHA regulatory agreement, if any.
(h) If an accessory dwelling unit is established as a condominium, the homeowner shall notify providers of utilities, including water, sewer, gas, and electricity, of the condominium creation and separate conveyance.
(i) Prior to approval of the parcel map, a safety inspection of the ADU(s) shall be conducted as evidenced through issuance of a final Building Permit or a housing quality standards report from a building inspector certified by the United States Department of Housing and Urban Development when applicable, and which conforms to current Building Code and Fire Code requirements.
(j) The Director of Planning shall cause a notice of the pending application to be posted at the site of the proposed ADU Condominium and for notice to be mailed to owners and residents of property within 600 feet of the property.
(k) The Director of Planning shall ministerially review and approve a parcel map for an ADU Condominium if they determine that the parcel map application meets all requirements of this Chapter, Chapter 18.09, and Title 21. The Director of Planning shall deny a parcel map application that does not meet any requirement of this Chapter, Chapter 18.09, and Title 21.
(l) In addition to other application submittal requirements created by the City and published on its website, the following information shall be provided:
(1) Statement regarding current ownership of all improvements and underlying land. (2) A site plan and boundary map showing the location of all existing or proposed:
easements, structures, mature and/or scenic trees, and other improvements upon the property.
(3) Dimensions and location of each building or unit and the location of all fences and walls.
(4) The location, size, and design for all common areas, including all facilities and amenities provided within the common areas for use by unit owners. (5) Location and condition for all paved areas, including pedestrian walkways. (6) Maintenance plan of all buildings and common areas and facilities.
*NOT YET APPROVED*
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(m) The Director of Planning shall determine the appropriate fee required for an application for parcel map for an ADU Condominium, which may be the fee currently established for a Preliminary Parcel Map, Parcel Map, or SB 9 application.