This ordinance proposes to amend the Planning Code to exempt dwelling units resulting from a merger of existing dwelling units from conditional use authorization, provided certain criteria are met. Specifically, if two existing dwelling units are merged into one, and the resulting single dwelling unit complies with current zoning and building codes, the merger would no longer require a conditional use permit. This aims to streamline the process for property owners looking to combine units, potentially reducing administrative burden and encouraging efficient use of existing housing stock. The Planning Department has affirmed that this amendment falls under a categorical exemption from the California Environmental Quality Act (CEQA). The proposed changes are deemed consistent with the General Plan and the eight priority policies of Planning Code Section 101.1, promoting housing, economic vitality, and environmental quality. This amendment is intended to facilitate property modifications without impacting the overall housing supply negatively, as it deals with existing units being combined rather than new units being created or removed from the housing stock. It also seeks to align the Planning Code with practical realities of property management and renovation within the city.