EFFECT:   

Removes exceptions allowing cities and counties to impose owner-occupancy requirements on a lot containing an accessory dwelling unit for up to a year after initial occupancy of a primary residence or accessory dwelling unit following permitting, or for a longer period if the city or county adopted a geographically-limited area of owner-occupancy restrictions following a public process.

Removes language allowing the imposition of fees, impact fees, or taxes to encourage the use of accessory dwelling units for long term housing.

Removes the provision that would have allowed cities and counties to offer incentives for the development or construction of accessory dwelling units only if such units were subject to binding commitments or covenants that the units will not be regularly offered for short term rental, and the city or county has a program to audit compliance with these commitments or covenants.

Removes language that would allow a city or county to impose owner-occupancy requirements even if it had not adopted the required hardship exemption from those requirements, if the owner of the lot on which the restrictions would be enforced offered an accessory dwelling unit for short-term rental within the county or owns more than three accessory dwelling units within the county.