R 5226 RESOLUTION NO. 5226
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE PROVIDING FOR AN ACCESSORY
DWELLING UNIT FEE WAIVER PROGRAM
WHEREAS, Section 16.52.150 of the Arroyo Grande Municipal Code (AGMC) contains
the City's regulations for Accessory Dwelling Units and Junior Accessory Dwelling Units
(collectively, "ADUs") consistent with the requirements of Government Code Sections
65852.2 and 65852.22, and ADUs present an opportunity to develop more affordable
housing in the City; and
WHEREAS, the City Council of the City of Arroyo Grande wishes to further the policies,
goals and programs of the Housing Element of the City's General Plan and to help
facilitate the development of affordable housing within the City by creating an ADU Fee
Waiver Program under which building permit fees and utility connection fees can be
waived for ADUs that are 500 square feet or less and the property owners agree to rent
the ADU to either low income or very low income households; and
WHEREAS, the City Council finds that providing a variety of housing options to workers
of all income levels is socially and economically beneficial to the City and its residents;
and
WHEREAS, to the extent that building permit fees and utility connection fees present a
barrier to the development of affordable ADUs, the ADU Fee Waiver Program will provide
an incentive to their construction and making them available to low-income or very low-
income households.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande
as follows:
SECTION 1. The City Council hereby finds and determines that the foregoing recitals are
true and correct and are incorporated herein by this reference.
SECTION 2. ADU FEE WAIVER PROGRAM.
City Staff is hereby authorized to implement an ADU Fee Waiver Program. Building
permit fees and utility connection fees for Accessory Dwelling Units of 500 square feet or
less shall be waived when:
A. The property owner agrees to rent the ADU to either a low-income household for
a period of ten (10) years, or a very low-income household for a period of seven
(7) years. Prior to receiving a building permit, the ADU owners shall execute and
record an "Accessory Dwelling Unit Affordable Housing Declaration of Covenants
and Land Use Restrictions - Fee Waivers" in a form approved by the City Attorney.
B. In implementing this ADU Fee Waiver program, the City shall rely on affordable
RESOLUTION NO. 5226
PAGE 2
rental limits established by San Luis Obispo County and published each month.
C. The Accessory Dwelling Unit Affordable Housing Declaration of Covenants and
Land Use Restrictions - Fee Waivers, shall provide that the property owner shall
annually provide the City with evidence that rents collected comply with affordable
limits.
D. Money from the City or Arroyo Grande Inclusionary Housing Affordable Housing
Trust Fund shall be used to offset and recoup the revenue that otherwise would
have been due to the City for building and connection fees as a result of the ADU
Fee Waiver Program. Staff shall provide an annual update to the Council on the
status of the Program and impacts to the Trust Fund.
SECTION 3. If any section, subsection, sentence, clause, phrase or provision of this
Resolution or the application thereof to any person or circumstances is held invalid or
unconstitutional by any court of competent jurisdiction, such invalidity or
unconstitutionality shall not affect the validity of any other provision or applications, and
to this end the provisions of this Resolution are declared to be severable. The City
Council hereby declares that it would have passed this Resolution and each section,
subsection, sentence, clause, phrase or provision thereof, irrespective of the fact that
any one or more sections, subsections, sentences, clauses, phrases or provisions
thereof be declared invalid or unconstitutional.
SECTION 4. This Resolution shall be effective immediately upon its adoption.
On motion by Council Member George, seconded by Council Member Paulding, and on
the following roll call vote, to wit:
AYES: Council Members George, Paulding, and Storton
NOES: None
ABSENT: Council Member Barneich, and Mayor Ray Russom
The foregoing Resolution was passed and adopted this 27th day of September, 2022.
RESOLUTION NO.Sda.te
PAGE 3
9
CAREN RAY US OM, MAYOR
ATTEST:
'mak
SSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
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WHITNEY M go ONALD, CITY MANAGER
APPROVED AS TO FORM:
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TIMOT J. CARMEL, CITY ATTORNEY
OFFICIAL CERTIFICATION
I, JESSICA MATSON, City Clerk of the City of Arroyo Grande, County of San Luis
Obispo, State of California, do hereby certify under penalty of perjury, that the attached
Resolution No. 5226 was passed and adopted at a regular meeting of the City Council
of the City of Arroyo Grande on the 27th day of September, 2022.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 4th day of
October, 2022.
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JESSICA MATSON, CITY CLERK