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HomeMy WebLinkAboutPC R 2025-004RESOLUTION NO. 2025-004 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ARROYO GRANDE RECOMMENDING THE CITY COUNCIL ADOPT AN ORDINANCE APPROVING DEVELOPMENT CODE AMENDMENTS REGARDING SUPPORTIVE HOUSING, TRANSITIONAL HOUSING, AND LOW BARRIER NAVIGATION CENTERS WHEREAS, on May 5, 2021, the California Department of Housing and Community Development certified the City's sixth cycle (2020-2028) Housing Element; and WHEREAS, the Housing Element profiles the City's compliance with various state housing laws; and WHEREAS, Housing Element program J.2-2 directs the City to amend the Municipal Code to comply with Assembly Bill 2162 to allow supportive housing without discretionary review in all zoning districts that allow multifamily housing or mixed-use development; and WHEREAS, Housing Element program J.2-3 directs the City to amend the Municipal Code to comply with Assemble Bill 101 to allow low -barrier navigation centers for the homeless pursuant to Government Code Sections 65660-65668; and WHEREAS, this ordinance creates section 16.52.280 to establish development standards for supportive housing, transitional housing, and low barrier navigations centers; and WHEREAS, on September 2, 2025, the Planning Commission conducted a duly noticed public hearing to consider the staff report, recommendations by staff, and public testimony concerning the ordinance. Following the public hearing, the Planning Commission voted to forward the ordinance to the City Council with a recommendation in favor of its adoption; and NOW, THEREFORE, BE IT RESOLVED that the Planning Commission of the City of Arroyo Grande hereby recommends the City Council adopt an Ordinance approving the development code amendments to Title 16 of the Arroyo Grande Municipal Code as attached hereto as Exhibit "A" and incorporated herein by this reference. On motion by Commissioner Martin, seconded by Commissioner Buchanan, and by the following roll call vote, to wit: AYES: Martin, Buchanan, Roof, Sackrison, Worthen NOES: None ABSENT: None RESOLUTION No. 2025-004 PAGE 2 the foregoing Resolution was adopted this 2nd day of September, 2025. RESOLUTION No. 2025-004 PAGE 3 U�- --- ( 4 VIRGOIA ROOF CHAT ATTEST: 10 ( 4— PATRICK HOLUB SECRETARY TO THE COMMISSION AS TO CONTENT: 1"1412�� BRIAN PEDROTTI COMMUNITY DEVELOPMENT DIRECTOR RESOLUTION No. 2025-004 PAGE 4 ORDINANCE NO. EXHIBIT A AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADDING SECTION 16.52.280 RELATING TO SUPPORTIVE HOUSING, TRANSITIONAL HOUSING, AND LOW BARRIER NAVIGATION CENTERS WHEREAS, on May 5, 2021, the California Department of Housing and Community Development certified the City's sixth cycle (2020-2028) Housing Element; and WHEREAS, the Housing Element profiles the City's compliance with various state housing laws; and WHEREAS, Housing Element program J.2-2 directs the City to amend the Municipal Code to comply with Assembly Bill 2162 to allow supportive housing without discretionary review in all zoning districts that allow multifamily housing or mixed-use development; and WHEREAS, Housing Element program J.2-3 directs the City to amend the Municipal Code to comply with Assemble Bill 101 to allow -low-barrier navigation centers for the homeless pursuant to Government Code Sections 65660-65668; and WHEREAS, this ordinance creates section 16.52.280 to establish development standards for supportive housing, transitional housing, and low barrier navigations centers-, and WHEREAS, on September 2, 2025, the Planning Commission conducted a duly noticed public hearing to consider the staff report, recommendations by staff, and public testimony concerning the ordinance. Following the public hearing, the Planning Commission voted to forward the ordinance to the City Council with a recommendation in favor of its adoption; and WHEREAS, on _, 2025, the City Council conducted a duly noticed public hearing to consider the ordinance, including: (1) the public testimony and agenda reports prepared in connection with the ordinance; (2) the policy considerations discussed therein; and (3) the consideration and recommendation of the Planning Commission; and WHEREAS, the City Council of the City of Arroyo Grande, at its regularly scheduled public meeting on , 2025 introduced this Ordinance to add Section 16.52.280 to Title 16 of the Arroyo Grande Municipal Code; and WHEREAS, all legal prerequisites to the adoption of the ordinance have occurred RESOLUTION No. 2025-004 PAGE 5 NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DOES ORDAIN AS FOLLOWS: SECTION 1. Incorporation. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. Environmental. The City Council finds that this ordinance is exempt from the California Environmental Quality Act ("CEQA") pursuant to State CEQA Guidelines section 15060(c)(2) and 15061(b)(3) because it will not result in a direct or reasonably foreseeable physical change in the environment; and the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. The development code amendment would establish transitional housing and supportive housing as permitted uses in all zones where other residential uses are currently allowed, subject to the same development standards that apply to other dwellings of the same type in the same zone. Similarly, the development code amendment would allow low barrier navigation centers as an allowed use in mixed use zones and nonresidential zones that allow multifamily residential uses. The Ordinance would not change the amount of physical development that is currently allowed pursuant to the existing development code. Allowing the proposed uses in zones where residential development is already permitted by -right or conditionally would not alter the residential nature of the affected zone. Further, the Ordinance would assure that the City's development code is consistent with the City's Housing Element and applicable State Housing laws. As a result, there is no possibility that the project may have a significant effect on the environment. SECTION 3. Required Findings. In accordance with section 16.16.040(E) of the Arroyo Grande Municipal Code, the City Council hereby makes the following findings: 1. General Plan. The ordinance's amendments to the AGMC are consistent with the General Plan and necessary and desirable to implement the provisions thereof. Specifically, Housing Element program J.2-2 compels the City to comply with AB 2162 by allowing supportive housing and transitional housing projects by right in specified zones, consistent with State law. This ordinance effectuates and implements program J.2-2 by establishing development standards for these uses. Additionally, program J.2-3 directs the City to update the Municipal Code to allow low barrier navigation centers as required by State law. This ordinance effectuates and implements program J.2-3 by specifying areas in which they are allowed and the development standards for establishing the use. For these reasons, the ordinance's amendments to the AGMC are consistent with the General Plan and necessary and desirable to implement the provisions thereof. 2. Health, Safety, and Welfare; Illogical Land Use Pattern. Adoption of the ordinance will not adversely affect the public health, safety, and welfare as it updates the AGMC to allow ministerial review of housing projects for those with special needs as required by State law. Finally, this ordinance will not result in an illogical land use pattern as it is not amending the City's zoning map. RESOLUTION No. 2025-004 PAGE 6 3. Consistency with Title 16. This ordinance is consistent with the purpose and intent of AGMC Title 16 because it does not alter or revise the type or intensity of allowed uses and ensures that the provisions thereof are consistent with the City's Housing Element. 4. Environmental. See Section 2 above. SECTION 4. Code Amendment. The definitions for "Supportive Housing" and "Transitional Housing" of Section 16.04.070 "Definitions" of Chapter 16.04 "Introductory Provisions and Definitions" of Title 16 "Development Code" are hereby deleted in their entirety and Section 16.04.070 shall be automatically adjusted alphabetically. SECTION 5. Code Amendment. Table 16.32.040-A of Section 16.32.040 "Use regulations for residential districts" of Chapter 16.32 "Residential Districts" of Title 16 "Development Code" is hereby amended to reference Section 16.52.280 for "Supportive housing," "Transitional housing" and "Low Barrier Navigation Centers" as shown in the attached Exhibit "A-1," and incorporated by reference. SECTION 6. Code Amendment. Table 16.36.030(A) of Section 16.36.030 "Uses Permitted Within Mixed Uses and Commercial Districts" of Chapter 16.36 "Commercial and Mixed Use Districts" of Title 16 "Development Code" is hereby amended to reference Section 16.52.280 for "Supportive housing," "Transitional housing" and "Low Barrier Navigation Centers" as shown in the attached Exhibit "A-2," and incorporated by reference. SECTION 7. Code Amendment. Section 16.52.280 is hereby added in its entirety to Title 16, Chapter 52 of the Arroyo Grande Municipal Code as shown in the attached Exhibit "A-3," and incorporated by reference. SECTION 8. Publication. A summary of this ordinance shall be published in a newspaper published and circulated in the City of Arroyo Grande at least five days prior to the City Council meeting at which the proposed ordinance is to be adopted. A certified copy of the full text of the proposed ordinance shall be posted in the office of the City Clerk. Within 15 days after adoption of the ordinance, the summary with the names of those City Council members voting for and against the ordinance shall be published again, and the City Clerk shall post a certified copy of the full text of such adopted ordinance. SECTION 9. Effective Date. This ordinance shall become effective 30 days after adoption. SECTION 10. Severability. Should any provision of this ordinance, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any other provision of this ordinance or the application of this ordinance to any other person or circumstance, and, to that end, the provisions hereof are severable. The City Council declares that it would have adopted all the provisions of this ordinance that remain valid if any provisions of this ordinance are declared invalid. RESOLUTION No. 2025-004 PAGE 7 SECTION 11. Records. The documents and materials associated with this ordinance that constitute the record of proceedings on which the City Council's findings and determinations are based are located at 300 E. Branch Street, Arroyo Grande, CA 93420. The City Clerk is the custodian of the record of proceedings. On motion by Council Member , seconded by Council Member , and by the following roll call vote to wit: AYES: NOES: ABSENT: the foregoing Ordinance was adopted this day of , 2025. RESOLUTION No. 2025-004 PAGE 8 CAREN RAY RUSSOM, MAYOR ATTEST. JESSICA MATSON, CITY CLERK APPROVED AS TO CONTENT: MATTHEW DOWNING, CITY MANAGER APPROVED AS TO FORM: ISAAC ROSEN, CITY ATTORNEY RESOLUTION No. 2025-004 PAGE 9 USE RE RH RR RS SF VR MF D - 2.4a 18. Supportive Housing, 19.Transitional Housing 20. Low Barrier Navigation Centers Pursuant to Section 16.52.280 Pursuant to Section 16.52.280 Pursuant to Section 16.52.280 EXHIBIT A-1 MFA MFVH MHP RESOLUTION No. 2025-004 PAGE 10 EXHIBIT A-2 Allowed Land IMU I TMU VCD HCO VMU D- GMU FOMU HMU OMU' Uses and Permit D- D-2.4 2.11 D-2.20 Requirements— 2.11 HCO D - LAND USE 2.4 { 1 F. RESIDENTIAL USES Supportive NP Pursuant to Section 16.52.280 Housing Transitional` NP Pursuant to Section 16.52.280 Housing Low Barrier NP Pursuant to Section 16.52.280 Navigation Centers RC M NP IN% RESOLUTION No. 2025-004 PAGE 11 EXHIBIT A-3 16.52.280 — Transitional Housing, Supportive Housing, and Low Barrier Navigation Centers A. Purpose and Definitions. 1. Purpose. These provisions are intended to allow transitional housing and supportive housing, as defined in Government Code Section 65582, and low barrier navigation centers, as defined in Government Code Section 65660, consistent with State law to ensure equality of treatment for all residential uses regardless of the occupant. Supportive housing helps provide housing linked to a range of support services designed to enable residents to maintain stable housing and lead fuller lives. Transitional housing is a subset of supportive housing used to facilitate the movement of people experiencing homelessness into permanent housing and independent living. A low barrier navigation center acts as a housing first, low -barrier, service -enriched shelter focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing. This section implements Housing Element programs J.2-2, J.2-3, and state law requirements applicable to transitional housing, supportive housing, and low barrier navigation centers. If this section conflicts with state law, state law shall govern. 2. Definitions. "Low Barrier Navigation Center" has the same definition as Government Code Section 65660(a), as amended from time to time. "Supportive housing" has the same definition as in Government Code Section 65582(n), as amended from time to time. "Target population" has the same definition as in Government Code Section 65582(p), as amended from time to time. "Transitional housing" has the same definition as in Government Code Section 65582(q), as amended from time to time. B. Transitional Housing and Supportive Housing 1. General Application. Transitional housing and supportive housing shall be considered a residential use of property and shall be subject only to those provisions and development standards that apply to other residential dwellings of the same type in the same zone. Additionally, supportive housing shall be a use by right in all zones where RESOLUTION No. 2025-004 PAGE 12 multifamily and mixed uses are permitted, as provided in Government Code Section 65650 et seq. 2. Supportive Housing, Use by Right. To qualify for approval as a use by right, supportive housing must satisfy all of the requirements of Government Code Section 65650 et seq., including: a. Units within the development are subject to a recorded affordability restriction for 55 years; b. One hundred percent of the units, excluding managers' units, within the development are dedicated to lower income households and are receiving public funding to ensure affordability of the housing to lower income Californians. For purposes of this paragraph, "lower income households" has the same meaning as defined in Section 50079.5 of the Health and Safety Code. The rents in the development shall be set at an amount consistent with the rent limits stipulated by the public program providing financing for the development. c. At least 25 percent of the units in the development or 12 units, whichever is greater, are restricted to residents in supportive housing who meet criteria of the target population. If the development consists of fewer than 12 units, then 100 percent of the units, excluding managers' units, in the development shall be restricted to residents in supportive housing. d. The developer shall provide the City with the information required by Government Code Section 65652 pertaining to the developer's plan for providing supportive services for residents, with documentation demonstrating that supportive services will be provided onsite to residents in the project, as required by Government Code Section 65651, and describing those services, which shall include: i. The name of the proposed entity or entities that will provide supportive services. ii. The proposed funding source or sources for the provided onsite supportive services. iii. Proposed staffing levels. e. Nonresidential floor area shall be dedicated for onsite supportive services and administrative office space in the following amounts: i. For a development with 20 or fewer total units, at least 90 square feet shall be provided for onsite supportive services. ii. For a development with more than 20 units, at least 3 percent of the total nonresidential floor area shall be provided for onsite supportive services that are limited to tenant use, including, but not limited to, community rooms, case management offices, computer rooms, and community kitchens. iii. The total floor area dedicated to administrative office space shall not exceed 25 percent of the total floor area. RESOLUTION No. 2025-004 PAGE 13 f. The developer replaces any dwelling units on the site of the supportive housing development in the manner provided in paragraph (3) of subdivision (c) of Government Code Section 65915. g. Units within the development, excluding managers' units, include at least one bathroom and a kitchen or other cooking facilities, including, at minimum, a stovetop, a sink, and a refrigerator. 3. Parking Exception. If the supportive housing development is located within one-half mile of a public transit stop, no parking spaces are required for the units occupied by supportive housing residents per Government Code Section 65654. 4. Reduction in Residents. Notwithstanding any other provision of this section, the City shall, at the request of the project owner, reduce the number of residents required to live in supportive housing if the project -based rental assistance or operating subsidy for the supportive housing project is terminated through no fault of the project owner, but only if all of the following conditions have been met: a. The owner demonstrates that it has made good faith efforts to find other sources of financial support. b. Any change in the number of supportive service units is restricted to the minimum necessary to maintain project's financial feasibility. c. Any change to the occupancy of the supportive housing units is made in a manner that minimizes tenant disruption and only upon the vacancy of any supportive housing units. 5. Processing Timelines. The City shall notify the applicant whether their supporting housing use application is complete within 30 days of receipt of an application to develop supportive housing in accordance with this section. The City shall complete its review of the application within 60 days after the application is complete for a project with 50 or fewer units, or within 120 days after the application is complete for a project with more than 50 units. C. Low Barrier Navigation Centers Low barrier navigation centers are allowed subdivision (i) of Government Code Section mixed use and nonresidential zones that a navigation centers shall not be subject to a conditional use permit if the application is development and management standards: as a use by right, as defined in 65583.2, in any zone that allows ow multifamily uses. Low barrier planned development permit or a in compliance with the following a) The low barrier navigation center offers services to connect people to permanent housing through a services plan that identifies services staffing; b) b. The low barrier navigation center is linked to a coordinated entry system, so that staff in the interim facility or staff who co -locate in the facility may conduct assessments and provide services to connect individuals to permanent housing. "Coordinated entry system" is generally described as a centralized or coordinated assessment system developed pursuant to Section 576.400(d) or Section 578.7(a)(8), as applicable, of Title 24 of the Code of Federal RESOLUTION No. 2025-004 PAGE 14 Regulations, as those sections read on January 1, 2020, and any related requirements, designed to coordinate program participant intake, assessment, and referrals; c) The low barrier navigation center complies with Chapter 6.5 (commencing with Section 8255) of Division 8 of the Welfare and Institutions Code; d) The low barrier navigation center has a system for entering information regarding client stays, client demographics, client income, and exit destination through the local Homeless Management Information Systems, as defined by Section 578.3 of Title 24 of the Code of Federal Regulations; and 2. Within 30 days of receipt of an application for a low barrier navigation center, the City shall notify the applicant whether the application is complete pursuant to Government Code Section 65943. Within 60 days of receipt of a completed application for a low barrier navigation center, the City shall act upon its review of the application.