HomeMy WebLinkAboutCC 2026-03-24_09e General Plan Annual Progress ReportItem 9.e.
MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager/Director of Public Works
BY: Andrew Perez, Planning Manager
SUBJECT: 2025 General Plan Annual Progress Report
DATE: March 24, 2026
RECOMMENDATION:
1) Review and accept the 2025 General Plan Annual Report (the “Annual Report” or
“Report”) and direct staff to forward the Report to the Governor’s Office of Land Use and
Climate Innovation and the Department of Housing and Community Development; and
2) Find that the request is not a project as defined by the California Environmental Quality
Act pursuant to State CEQA Guidelines section 15378(b)(5).
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
No financial impact is projected.
BACKGROUND:
California Government Code Section 65400 requires all cities to file a General Plan
Annual Report to the Governor's Office of Land Use and Climate Innovation (LCI) and
report housing data to the Department of Housing and Community Development (HCD).
The purpose of the Report is to monitor the City's implementation of the General Plan
over time, to help identify statewide trends, document progress in meeting the City’s share
of regional housing needs and inform local decision-makers. Prior to submittal to the
state, the Government Code requires that the Annual Report be presented to the City
Council for review and acceptance. The City has made it standard practice to present the
Annual Report to the Planning Commission for receipt and acceptance prior to the
Council, given the Council’s role as the primary decision maker for the majority of the
City’s land use applications. Planning Commission reviewed and accepted the Annual
Report at the March 17, 20261 meeting, as presented.
1https://pub-arroyogrande.escribemeetings.com/Meeting.aspx?Id=fc8d8416-9763-49d7-8db7-
1c08a1b3f799&lang=English&Agenda=Agenda&Item=15&Tab=attachments
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Item 9.e.
City Council
2025 General Plan Annual Progress Report
March 24, 2026
Page 2
ANALYSIS OF ISSUES:
The Annual Report provides an overview of the activities completed or currently being
undertaken during 2025 to implement or update the General Plan. No updates to any
individual elements of the General Plan were completed during the 2025 calendar year,
significant progress was made on the comprehensive General Plan Update project that
is currently underway.
Comprehensive General Plan Update
Substantial progress was made on the General Plan Update during 2024. A community
workshop was held in February 2025 to inform the public about the purpose of the land
use scenarios phase of the project, provide an overview of the various land use scenario s,
and facilitate a discussion about future land use and development in Arroyo Grande. The
input gathered at the workshop informed the Planning Commission and City Council in
selecting the City’s “preferred” land use scenario, which occurred on April 8, 20 25. The
preferred land use scenario, along with input obtained from a Small Business Workshop,
two Health and Equity outreach events, and the public workshops held in 2023 and 2024
were used to draft the Preliminary Public Draft General Plan. The Preliminary Public Draft
General Plan was released for public review on November 19, 2025. A study session with
the Planning Commission and a public workshop were held on December 2, and
December 3, 2025, respectively, to obtain community feedback. An online survey was
also published to offer the public an alternative way to provide feedback on the plan. The
study session with the City Council on February 24, 2026 , directed revisions to the
Preliminary Public Draft that, once incorporated, will produce the Public Draft General
Plan.
Additional Work Efforts
Development of the Active Transportation Plan began in 2024 and was adopted by City
Council on January 28, 2025. Similarly, the Traffic Way Bridge Replacement Project
planning and design occurred in prior years, and construction was completed during
2025. Both projects implement policies from the City’s Circulation Element. Other
significant work efforts included the adoption of ordinances to implement Housing
Element programs, such as establishing regulations for supportive and transitional
housing, low-barrier navigation centers, and an update of the City’s ADU ordinance.
Housing Element Implementation
Housing data is reported to HCD and LCI via a spreadsheet. (Attachment 2) The City
issued building permits for 16 new dwelling units in 2025. All but one of these units were
ADUs. This is fewer than the previous year and brings the total number of ADUs permitted
since 2020 to 87. During this housing cycle (2020-2028) the City has permitted 297 new
residential units, which represents approximately 43% of its Regional Housing Needs
Allocation. The City has already permitted its allocation of 107 low-income units for the
planning period, as of the end of 2024, which are included in the 297 new units permitted.
City Council also adopted an Ordinance to establish regulations for supportive housing,
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Item 9.e.
City Council
2025 General Plan Annual Progress Report
March 24, 2026
Page 3
transitional housing, and low-barrier navigation centers, and amended Ordinances
related to accessory dwelling units and SB 9 development, all of which implement
Housing Element programs. Attachment 2 describes the implementation status of the
City’s forty-three (43) Housing Element programs.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Accept the 2025 General Plan Annual Report and direct staff to forward the Report
to LCI and HCD;
2. Do not accept the 2025 General Plan Annual Report at this time and provide
direction to staff regarding modifications to the Report; or
3. Provide other direction to staff.
ADVANTAGES:
The City will be providing the State with data in compliance with California Government
Code Section 65400 and the required April 1st deadline. The information contained in the
report provides valuable insights about the effective ness of housing policies and
programs.
DISADVANTAGES:
There are no disadvantages identified with filing the Annual Progress Report as it is a
requirement of state law.
ENVIRONMENTAL REVIEW:
The preparation and filing of the General Plan Annual Progress Report is not a project
subject to the California Environmental Quality Act (“CEQA”) because it has no potential
to result in either a direct, or reasonably foreseeable indirect, physical change in the
environment. (State CEQA Guidelines, §§ 15060, subd. (b)(2)-(3), 15378.)
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
ATTACHMENTS:
1. 2025 General Plan Annual Progress Report
2. HCD Housing Spreadsheet
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Arroyo Grande General Plan Annual Progress Report - 2025 Page 1
ATTACHMENT 1
General Plan Annual Progress Report
2025
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Arroyo Grande General Plan Annual Progress Report - 2025 Page 2
CITY OF ARROYO GRANDE
City Council
Caren Ray Russom, Mayor
Jamie Maraviglia, Mayor Pro Tem
Jim Guthrie
Kate Secrest
Aileen Loe
Planning Commission
Glenn Martin
Kevin Buchanan
Cathy Sackrison
Virginia Roof
Jared Worthen
City Staff
Matt Downing, City Manager
Bill Robeson, Acting Community Development Director/Deputy City Manager/Public Works
Director
Shannon Sweeney, City Engineer
Mark Sadowski, Contract Building Official
Andrew Perez, Planning Manager
Contact Information
City of Arroyo Grande
Community Development Department
300 E. Branch Street
Arroyo Grande, CA 93420
Phone: (805) 473-5420
Website
www.arroyogrande.org
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Arroyo Grande General Plan Annual Progress Report - 2025 Page 3
Contents
Section 1 - Introduction .................................................................................................................. 4
A. Purpose of the Annual Report ................................................................................................ 4
B. Purpose of the General Plan ................................................................................................... 4
C. Status of the Adopted Elements of the City’s General Plan ................................................... 4
Land Use Element (Adopted October 2001) ............................................................................... 7
Circulation Element (Adopted June 2021) .................................................................................. 8
Housing Element (Adopted January 2021) ................................................................................. 8
Agriculture, Conservation, and Open Space Element (Adopted October 2001, Amended June
2007)............................................................................................................................................ 9
Safety Element (Adopted October 2001) .................................................................................... 9
Noise Element (Adopted October 2001) ..................................................................................... 9
Economic Development Element (Adopted October 2012) ....................................................... 9
Parks and Recreation Element (Adopted October 2001) ............................................................ 9
Section 2 – Summary of Activity – 2025 ....................................................................................... 10
Planning Commission ................................................................................................................ 10
Building and Life Safety Division ............................................................................................... 10
Planning Division ....................................................................................................................... 10
General Plan Policies and Programs .......................................................................................... 11
Appendix A – Housing Summary ................................................................................................... 12
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Arroyo Grande General Plan Annual Progress Report - 2025 Page 4
Section 1 - Introduction
A. Purpose of the Annual Report
This report reviews the activities that took place to implement the Arroyo Grande General Plan
between January 1, 2025, and December 31, 2025. This report fulfills the requirements of Section
65400 of the California Government Code, which requires the City to file an annual report
addressing the status of the General Plan and progress made toward goals and objectives. This
annual report provides a means to monitor the success of implementing the General Plan and
determine if changes need to be made in the plan or its implementation programs. The City is
required to file the annual report with the Governor’s Office of Land Use and Climate Innovation
(LCI), the Department of Housing and Community Development, as well as to their legislative
bodies. The legislative body for Arroyo Grande is the City Council.
B. Purpose of the General Plan
The General Plan is the foundational development policy document of the City of Arroyo Grande.
It defines the framework by which the physical, economic and human resources of the City are
to be managed and utilized over time. The General Plan is available for public review at City Hall
and on the City’s website.
The General Plan acts to clarify and articulate the intentions of the City with respect to the rights
and expectations of the public, property owners, and prospective investors and business
interests.
C. Status of the Adopted Elements of the City’s General Plan
State law requires that the General Plan include up eight elements. These mandatory elements
must cover the following topics: Land Use, Circulation, Housing, Safety, Noise, Conservation,
Open Space, and for some jurisdictions an Environmental Justice element is required. State law
allows the City to adopt any additional general plan elements that the City deems necessary. The
City has adopted the Parks and Recreation, Agriculture, and Economic Development Elements as
optional elements, which have the same decision-making weight as the mandatory elements.
Additionally, the elements of the general plan may combine elements as it deems necessary. The
City of Arroyo Grande General Plan combines Agriculture, Open Space, and Conservation
elements into a single element. The Table 1 is a breakdown of the City’s General Plan:
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Table 1: General Plan Summary
Arroyo Grande
GP Elements
Required GP
Elements Examples of Topics Covered
Agriculture, Conservation
and Open Space Element
Agriculture
(Optional)
Define policy for the protection of significant
natural resources, providing the setting or
context for urban land use development and
incorporated City areas.
Conservation
Open Space
Fringe and Urban Area
Land Use Element
Land Use Provides for the types, density or intensity,
design and distribution of existing and potential
City areas.
Circulation/Transportation
Element
Circulation Identifies the street pattern and other
circulation infrastructure and transportation
systems needed to support the uses identified
Land Use Element.
Housing Element Housing Identifies and provides an analysis of existing
and projected housing needs, an evaluation of
housing constraints, a statement of goals,
policies, quantifiable objectives and financial
resources, and scheduled programs for the
preservation, improvement, and development
of housing.
Safety Element Safety Provides for the protection of lives and property
from the adverse effects of natural and man-
caused hazards.
Noise Element Noise Identifies the sources and outlines policy to
protect land uses against adverse noise levels
associated with necessary circulation and
related activity.
Economic Development
Element
Economic
Development
(Optional)
Defines the objectives, policies and proposals
for improved employment, business retention
and expansion, and fiscal growth of the
community.
Park and Recreation
Element
Parks and
Recreation
(Optional)
Outlines these public facilities and services
desired to support the City and area residents,
businesses, and visitors’ leisure-time activities.
The City’s last comprehensive update of the General Plan was completed in October 2001.
Updates to the Housing Element and Circulation Element occurred in 2021. A comprehensive
general plan update is currently underway and described in detail later in this report. Table 2 lists
the updates to the General Plan elements that have occurred since the last comprehensive
update was adopted.
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Table 2: General Plan Updates Since 2001
Amendment No. Date Type Project
GPA 02-001 November 2003 Land Use Map Parkside Residences
GPA 02-002 June 2003 Land Use Map Berry Gardens Subarea 2
GPA 03-001 April 2003 Land Use Map Village Core Extension
GPA 03-002 September 2003 Land Use Map Agriculture Designations
GPA 03-003 March 2004 AG/C/OS Conversion of Prime Ag
Land, Farmworker
Housing, and Ag
Conservation Easements
GPA 04-002 August 2004 Land Use Map Noyes Road Properties
GPA 04-003 March 2005 Housing Element Housing Element Update
GPA 06-001 August 2006 Land Use Map Castillo Del Mar
GPA 06-002 November 2006 Circ & Parks and
Rec Elements
Bike and Pedestrian Plan
GPA 06-003 November 2007 Land Use Map S. Elm Multi-Family
Designation
GPA 06-004 February 2007 Land Use Map Sunset Drive
GPA 07-001 June 2007 AG/C/OS Creek Protection Policies
GPA 07-002 November 2007 Housing Element Affordable Housing
Requirements
GPA 09-001 September 2009 Land Use Map 2009 Land Use Map
Cleanup
GPA 09-001B October 2009 Land Use Map Pearwood Annexation
GPA 11-002 October 2013 Housing Element 2007-15 Housing
Element
GPA 12-002 July 2012 Circulation
Element
Bicycle and Trails Master
Plan
GPA 12-003 October 2012 Economic
Development
2012 Economic
Development Element
GPA 14-001 March 2014 Land Use Map Heights at Vista Del Mar
Annexation
GPA 14-002 October 2015 Land Use Element Courtland/Grand
GPA 14-003 March 2016 Housing Element 2014-19 Housing
Element
GPA 15-001 January 2017 AG/C/OS Creek
Map
Land Use Map
E. Cherry Avenue Specific
Plan
None of the City’s individual Elements were updated in 2025; however, the City continued the
effort to comprehensively update the City’s General Plan. Since the General Plan has not been
updated since 2001, all elements are in need of an update, with the exception of the Housing
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Arroyo Grande General Plan Annual Progress Report - 2025 Page 7
Element, which was updated in 2021 accordance with State law. The update will consist of the
following components:
1) Development and implementation of a well-defined, inclusive, and robust public
outreach strategy, including policies that promote inclusive outreach to diverse
communities contained in the City’s Diversity, Equity, Inclusion, and Justice Policy;
2) Comprehensive update of existing General Plan Elements (except Housing Element);
3) Creation of an Health and Equity Element to address environmental justice topics;
4) An update to the Climate Action Plan;
5) Development of objective design standards and an overlay district for the East Grand
Avenue corridor; and
6) Development Code update
On March 28, 2023, the City entered into an agreement with Mintier Harnish, a land use and
planning consultant, to assist City staff with the Update. Since the inception of the project, a
number of deliverables have been published that help inform the draft General Plan. The
following reports and documents have been published:
• Assets, Issues, and Opportunities Summary
• Existing Conditions and Trends Workbook
• Community Engagement Summary Report
• Vision Statement and Guiding Principles; and
• Preferred Land Use Scenarios
Building off work done in 2024, a community workshop was held in February 2025 to inform the
public about the purpose of the land use scenarios phase of the project, provide an overview of
the various land use scenarios for Arroyo Grande, and facilitate a discussion about future land
use and development in the city. The input gathered at the workshop informed the Planning
Commission and City Council in selecting the City’s “preferred” land use scenario, which occurred
on April 8, 2025. The preferred land use scenario, along with input obtained from a Small Business
Workshop, two Health and Equity outreach events, and the public workshops held in 2023 and
2024 were used to draft the Preliminary Public Draft General Plan. The Preliminary Public Draft
General Plan was released for public review on November 19, 2025. A study session with the
Planning Commission and a public workshop were held on December 2, and December 3, 2025,
respectively, to obtain community feedback. A study session with the City Council was held on
February 24, 2026 as well. An online survey was also published to provide an alternative option
for the public to provide feedback on the plan.
Land Use Element (Adopted October 2001)
No text amendments to the Land Use Element occurred in 2025.
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Arroyo Grande General Plan Annual Progress Report - 2025 Page 8
Circulation Element (Adopted June 2021)
No text amendments to the Circulation Element occurred in 2025.
Housing Element (Adopted January 2021)
No text amendments to the Housing Element occurred in 2025.
Table 3 reflects the number of units that were entitled, permitted, and/or finaled in 2025. This is
compared to the number of units permitted in 2024. With changes in reporting requirements for
the State, future Annual Reports will have comparable data between the current and previous
years:
Table 3: Entitled, Permitted, & Finaled Units – 2024 vs. 2025
Income Level Entitled Permitted Finaled
2024 2025 2024 2025 2024 2025
Very Low 0 0 0 0 0 0
Low 0 4 75 7 7 5
Moderate 0 4 13 8 6 5
Above
Moderate 5 2 7 1 10 12
Total 5 10 95 16 23 22
The year 2025 was the sixth year of the 6th cycle for purposes of reporting progress towards the
Regional Housing Needs Allocation (RHNA). The City’s adopted Housing Element projected the
construction of 236 ADUs during the planning period to meet the RHNA. A total of 15 permits
were issued for accessory dwelling units (ADUs) in 2025, which is only half of the annual target
of 30, established by the Housing Element. Table 3 reflects the progress made towards meeting
the city’s RHNA for each income category.
Area Intentionally Left Blank
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Arroyo Grande General Plan Annual Progress Report - 2025 Page 9
Table 2: Regional Housing Needs Allocation Progress
RHNA Income
Category
2020-2028
RHNA
2020-2024
Progress
2025
Progress
2020-2025
Progress
Remaining
Allocation
Very Low
Deed
Restricted 170
0 0
0 170 Non-Deed
Restricted 0 0
Low
Deed
Restricted 107
82 0 82
0* Non-Deed
Restricted 28 7 35
Moderate
Deed
Restricted 124
0 0 0
88 Non-Deed
Restricted 28 8 36
Above
Moderate 291 143 1 144 147
Total 692 186 95 297 405
* 117 low-income units have been permitted during the planning period, which exceeds the allocation
for the planning period.
**Progress is measured by units that were issued a building permit
Agriculture, Conservation, and Open Space Element (Adopted October 2001,
Amended June 2007)
No text amendments to the Agriculture, Conservation, and Open Space Element occurred in
2025.
Safety Element (Adopted October 2001)
No text amendments to the Safety Element occurred in 2025.
Noise Element (Adopted October 2001)
No text amendments to the Noise Element occurred in 2025.
Economic Development Element (Adopted October 2012)
No text amendments to the Economic Development Element occurred in 2025.
Parks and Recreation Element (Adopted October 2001)
No text or map amendments to the Parks and Recreation Element occurred in 2025.
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Arroyo Grande General Plan Annual Progress Report - 2025 Page 10
Section 2 – Summary of Activity – 2025
The City of Arroyo Grande policies and programs identified in the General Plan include tools
already in place and used on a day-to-day basis in the City. Some of the various tools available to
further the City’s goals and objectives include the City Council’s annual goals and priorities,
Budget/Capital Improvement Program, Specific Plans and Master Plans of Development, Zoning
and Subdivision Regulations, CDBG Funds, etc.
Planning Commission
The City of Arroyo Grande Planning Commission is designated as the "Planning Agency",
authorized by Section 65100 of the Government Code. The Commission has the discretionary and
advisory responsibilities that are authorized by Chapters 2.18, 16.04, and 16.08 of the Arroyo
Grande Municipal Code.
During 2025, the Planning Commission took action on the following applications:
• Three (3) Conditional Use Permits;
• One (1) Pre-application
• One (1) Administrative Sign Permit
• One (1) Minor Exception; and
• Four (4) Development Code Amendments.
Building and Life Safety Division
The City’s Building and Life Safety Division reviews project plans, issues permits, and provides
inspection services for compliance with California's building, fire, mechanical, electrical,
plumbing, energy, and disabled access codes, as well as City ordinances.
In 2025, the Building Division received 643 building permit applications and issued 330 building
permits. During the past year, City building inspectors made 707 construction and safety-related
inspections associated with building permit activity. The Building Division finaled and completed
186 building permits in the same period.
Engineering Division
The City’s Engineering Division ensures all construction in the public right-of-way related to land
development entitlements comply with adopted codes and engineering standards. Additionally,
the Engineering Division, a division in the Public Works Department, is responsible for
coordinating the implementation of the City’s Stormwater Management Program.
In 2025, the Engineering Division received 215 applications for encroachment permits, 7 grading
permit applications, and 53 stormwater permit applications for a total of 275 permit applications
received. Major work efforts in the Engineering Division include the Traffic Way Bridge
replacement project and progress on the design of the Halcyon Complete Streets project.
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Arroyo Grande General Plan Annual Progress Report - 2025 Page 11
Planning Division
The Planning Division assists the community, the City Council, and the Planning Commission in
preparing for the City's future growth and development, as well as reviews current development
plans for consistency with local ordinances. The Planning Division administers the Development
Code and deals with transportation, housing, community facilities, public safety, open space,
design, and the use of land.
The Planning Division provides support staff to the Planning Commission, Architectural Review
Committee, Community Service Grants Review Panel and Downtown Parking Advisory Board.
Administrative functions include the scheduling of meetings, preparation of agendas, posting of
hearing notices, and preparation of minutes.
The Planning Division provides land use analysis, environmental review as required under the
California Environmental Quality Act, and prepares staff reports for the aforementioned
Commissions and Committees, including the City Council. In 2025, the Planning Division received
50 applications for various land use entitlements (permits), including, land divisions, Conditional
Use Permits, Minor Use Permits, and Sign permits. In 2025, the Planning Division’s major work
effort was related to the comprehensive General Plan Update project. Other work items include:
• Adoption of the Active Transportation Plan;
• Adoption of ordinances to implement Housing Element programs related to supportive
and transitional housing and low-barrier navigation centers;
• Update of the City’s Accessory Dwelling Unit and SB 9 ordinances;
• Community Service Grant Program;
• Community Development Block Grant Program;
• Participation in the Regional Housing Action Team working group.
General Plan Policies and Programs
Community Development Department staff is currently working on a number of items specifically
related to the General Plan, as referenced above. Prioritized work efforts for the General Plan
include the continuation of the comprehensive General Plan Update.
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Arroyo Grande General Plan Annual Progress Report - 2025 Page 12
Appendix A – Housing Summary
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$77$&+0(17
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Jurisdiction Arroyo Grande
Reporting Year 2025 (Jan. 1 - Dec. 31)
1 2 3456 7 8 9
Name of Program Objective
Projected Completion
Date in Housing
Element
Applicable Cycle Status of Program
Implementation
Program
Implementation
Details
Quantified Outcomes:
Category
Quantified Outcomes:
Count Supporting Documents
A.1-1: To comply with
Assembly Bill (AB) 1397, the
Development Code shall be
amended to allow
Assessor’s Parcel Numbers
(APNs) 077-011-010, 077-
204-028, 077-211-022, and
077-221-031 in the land
inventory in this sixth-round
Housing Element to be
developed for residential use
by-right, in accordance with
California Government Code
Section 65583.2(c).
Development Code amendment 12/31/2023 6th Cycle Completed
On August 27, 2024 City
Council adopted Ordinance
No. 732 allowing by-right
residential development in
accordance with
Government Code Section
65583.2(c). Furthermore, the
City entitled a 63 unit multi-
family residential project on
APN 077-011-010 that is
currently under construction.
Units 63
Codified development code update can be
accessed here:
https://library.municode.com/ca/arroyo_grand
e/codes/code_of_ordinances?nodeId=CD_O
RD_TIT16DECO_CH16.52SPUSDEST_16.5
2.270GHHOPR
A.1-2: The City shall amend
the Development Code to
revise the requirements for
the Traffic Way Mixed-Use
District to remove the
limitation of only live-work
residential uses. A mix of
residential use types shall be
allowed consistent with all
the mixed-use zoning
districts (except the
Industrial Mixed-Use
District). The Development
Code shall also be amended
to allow residential projects
at densities up to 20 units
per acre in the Traffic Way
Mixed-Use District.
Development Code amendment 1/26/2024 6th Cycle In Progress
On February 17, 2026 the
Planning Commission
recommended approval of
the ordinance to implement
this program. City Council
introduced the Ordinance at
its meeting on March 24,
2026 and will adopt the
ordinance on April 14, 2026.
Units Ordinance to implement this program was
introduced by City Council on March 24, 2026
ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.
Table D
Program Implementation Status pursuant to GC Section 65583
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1 2 3456 7 8 9
Name of Program Objective
Projected Completion
Date in Housing
Element
Applicable Cycle Status of Program
Implementation
Program
Implementation
Details
Quantified Outcomes:
Category
Quantified Outcomes:
Count Supporting Documents
Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.
A.1-3:To mitigate the loss of
affordable housing units,
new housing developments
shall be required to replace
affordable housing units lost
due to new development. In
accordance with 65583.2
subdivision (g), the City also
will require replacement
housing units subject to the
requirements of Government
Code, section 65915,
subdivision (c)(3) on sites
identified in the sites
inventory when any new
development (residential,
mixed-use or non-
residential) occurs on a site
that has been occupied by
or restricted for the use of
lower-income households at
any time during the previous
five years.
Maintain affordable housing stock in
accordance with Government Code. 1/26/2021 6th Cycle Continuous
The City maintains an
inventory of affordable units
which is referenced when
new applications propose to
demolish existing units to
ensure compliance with this
program and State law.
Other
No projects during this 6th cycle have
proposed to demolish affordable housing
units. Staff continues to monitor development
applications to implement this program.
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1 2 3456 7 8 9
Name of Program Objective
Projected Completion
Date in Housing
Element
Applicable Cycle Status of Program
Implementation
Program
Implementation
Details
Quantified Outcomes:
Category
Quantified Outcomes:
Count Supporting Documents
Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.
A.2-1: The City shall
continue to encourage and
publicize on the City’s
website the accessory
dwelling program to increase
public awareness, including
a flowchart to aid in the
application process. The City
will also amend the
accessory dwelling unit
regulations in the
Development Code for
consistency with updates to
state law. In addition, as part
of the ordinance update, the
City will evaluate ADU
requirements related to off-
street parking, lot coverage
and open space, setbacks,
maximum size and height
and passageways,
entrances and orientation;
and adjust them as feasible
to be more permissive than
what is required by state law.
The City will evaluate and
adopt pre-approved
accessory dwelling unit
plans to streamline the
approval process and lower
development costs for
applicants.
Expected outcome is continued consistent
production of accessory dwelling units as
an affordable housing alternative.
1/31/2021 6th Cycle Continuous
During the 6th cycle, the City
has amended its ADU
Ordinance on four
occaisions. The most recent
amendments were adopted
by City Council on
December 9, 2025 and
submitted to HCD for review
on December 30, 2025. The
City's ordinance is more
permissive than State law in
that it allows detached ADUs
up to 25 ft in height and
does not trigger impact fees
until 800 square feet. The
City also offers pre-designed
plans for ADUs, maintains a
webpage with current
guidance on ADUs, and
offers a fee-waiver in
exhange for reserving ADUs
for lower income
households. In 2024, the
City partnered with
SmartShare Housing
Solutions, a local non-profit
organization advocating for
affordable housing to offer
free workshops to educate
residents about ADU
development.
Units 91
The City's current ADU ordinance under
review by HCD can be accessed here:
https://pub-
arroyogrande.escribemeetings.com/filestream
.ashx?DocumentId=16571. The City's ADU
webpage can be accessed by this link:
https://arroyogrande.org/665/Accessory-
Dwelling-Units-ADUs
Page 56 of 601
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Name of Program Objective
Projected Completion
Date in Housing
Element
Applicable Cycle Status of Program
Implementation
Program
Implementation
Details
Quantified Outcomes:
Category
Quantified Outcomes:
Count Supporting Documents
Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.
A.2-2: To further encourage
ADU creation, the City shall
establish an amnesty
program in compliance with
Senate Bill 13 to facilitate the
process of bringing
unpermitted ADUs into
compliance with local
regulations including the
building code by owners of
this type of unit. Senate Bill
13 requires under certain
circumstances specified by
state law, that enforcement
of violations related to
unpermitted ADUs be
delayed for 5 years if
correcting the violations are
not necessary to protect
health and safety. The City
program would consider
reductions in fees
associated with necessary
upgrades to bring the unit up
to code along with providing
information and staff
assistance with the steps in
the process to bring the unit
up to code.
Expected outcome is adding accessory
dwelling units to the City’s housing stock as
unpermitted units become legal.
5/31/2022 6th Cycle Completed
The City established
guidance and materials
consistent with AB 2533 for
legalizing unpermitted ADUs.
Units
The City's guidance to legalizing ADUs
pursuant to AB 2533 can be accessed here:
https://arroyogrande.org/899/Assembly-Bill-
2533
A.3-1: The City shall amend
the Municipal Code to
encourage the development
of affordable housing
projects, including expedited
permitting, providing
financial assistance through
the City’s In-Lieu Affordable
Housing Fund, requiring lot
consolidation, and providing
greater flexibility in
development standards.
Additional affordable units 1/26/2026 6th Cycle In Progress
City staff regularly informs
applicants of available
funding from the City's
affordable housing trust fund
to support the creation of
affordable housing.
Affordable Housing Trust
funds were allocated to the
affordable housing project
approved at APN 077-011-
010. Staff will pursue
completion of this program
during the comphrensive
development code update
scheduled for 2026.
Units 63
No code amendments have occurred by the
affordable housing project at 700 Oak Park
Blvd was supported by in-lieu funds.
Page 57 of 601
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Projected Completion
Date in Housing
Element
Applicable Cycle Status of Program
Implementation
Program
Implementation
Details
Quantified Outcomes:
Category
Quantified Outcomes:
Count Supporting Documents
Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.
A.3-2:The City shall amend
the Development Code to
provide additional incentives
specifically for extremely low-
income housing projects.
Incentives may include
flexible standards for on-
and off-site improvements,
such as reduced parking
requirements, reduced curb,
gutter, and sidewalk
requirements; reduced or
deferred water and/or sewer
connection fees;
development review and
permit streamlining
procedures; or financial
incentives and assistance.
Draft program or ordinance to incentivize
and/or streamline permitting and
procedures for extremely low-income
housing developments
12/31/2021 6th Cycle Not Yet Started
Staff will pursue completion
of this program during the
comphrensive development
code update scheduled for
2026.
Units None.
A.3-3: The City shall
consider a program to
waive, reduce or defer
impact fees for ADUs and
projects with deed-restricted
affordable units.
Consider and potentially establish a fee
waiver or reduction for ADUs and
affordable units
12/31/2021 6th Cycle Completed
In 2022, City Council
adopted a program that
waives permit fees and utility
connection fees in exchange
for reserving ADUs for lower
income households. This is
done through the
recordation of a deed
restriction and requires
affordability for a term of 7
years for units that are
rented to very-low income
households and 10 years for
units rented to low income
households.
Units
Link to CC Resolution establishing the fee
waiver program: https://pub-
arroyogrande.escribemeetings.com/filestream
.ashx?DocumentId=4153. Link to minutes
showing it was adopted: https://pub-
arroyogrande.escribemeetings.com/FileStrea
m.ashx?DocumentId=4380 (see Item 8.k)
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Date in Housing
Element
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Implementation
Program
Implementation
Details
Quantified Outcomes:
Category
Quantified Outcomes:
Count Supporting Documents
Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.
A.10-1: To facilitate
affordable housing, the City
shall comply with State
Density Bonus Law. The City
shall update Development
Code Chapter 16.82 to
comply with current state
density bonus law. The City
will continue to update
Chapter 16.82 on an
ongoing basis to comply with
any future updates to State
Density Bonus Law
(Government Code Section
65915 et seq.), as well as
evaluate proposed
Development Code
amendments to assess
whether they pose any
constraints to developer
utilization of density
bonuses.
City-initiated Development Code
amendments 1/26/2022 6th Cycle Completed
On August 27, 2024 City
Council adopted Ordinance
No. 732 which adopts State
density bonus law in the
City's development code by
reference. On May 18, 2021,
the Planning Commission
adopted a Resolution
approving a project utilizing
a density bonus to develop
20 units above base density.
On January 20, 2026, the
Planning Commission
adopted a Resolution
approving another project
utilizing a density bonus to
develop 22 units above base
density.
Units 42
https://library.municode.com/ca/arroyo_grand
e/ordinances/code_of_ordinances?nodeId=1
311746
A.10-2: To encourage higher
densities and reduce
constraints to multifamily
housing production, the City
shall amend the
Development Code to allow
densities up to 20 du/ac in
the OMU District and up to
25 du/ac in the FOMU and
GMU districts for 100%
multifamily housing projects
with a Minor-Use Permit
(MUP) subject to design
review through the
Architectural Review
Committee. Mixed-use
projects will continue to have
a maximum allowed density
of 20 du/ac in OMU and 25
du/ac in FOMU and GMU.
Remove barrier to construct affordable
housing 1/26/2023 6th Cycle In Progress
On February 17, 2026 the
Planning Commission
recommended approval of
the ordinance to implement
this program. City Council
introduced the Ordinance at
its meeting on March 24,
2026 and will adopt the
ordinance on April 14, 2026.
Other
The expected outcome is removal of a barrier
to construct affordable housing. The adoption
of this development code amendment will
contribute to accomplishing that goal.
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Projected Completion
Date in Housing
Element
Applicable Cycle Status of Program
Implementation
Program
Implementation
Details
Quantified Outcomes:
Category
Quantified Outcomes:
Count Supporting Documents
Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.
A.12-1: The City shall
continue to maintain its
geographical information
system (GIS) mapping and
planning database inventory
of vacant and underutilized
“opportunity sites.”
Maintain land availability inventory 1/26/2021 6th Cycle Continuous
The timeframe identified in
the Housing Element is
ongoing, so the completion
date listed in Field 3 is the
date the Housing Element
was adopted. A combination
of staff and a consultant
maintains the City's land
inventory database.
Other None
A-14.1: The City shall
establish a program to assist
first-time home buyers.
Development of a first-time home buyers’
program 1/26/2023 6th Cycle Not Yet Started
The first-time home buyers'
program has not been
established.
Other None
B.2-1: The City may contract
with the Housing Authority of
San Luis Obispo, local non-
profit organizations, or a
regional monitoring agency
for the monitoring of
affordable units to ensure
compliance with terms of
development agreements
and/or affordable housing
agreements.
Expected outcome is consistent monitoring
of affordable units.1/26/2021 6th Cycle Continuous
The timeframe identified in
the Housing Element is
ongoing, so the completion
date listed in Field 3 is the
date the Housing Element
was adopted. City staff
maintains an inventory of
affordable units sends
annual notices to ensure
compliance with occupancy
and resale agreements.
Other None.
B.5-1: The City shall monitor
the loss of permanent
housing from vacation
rentals and consider
modifying the Development
Code to adjust for this loss.
Program to monitor vacation rentals 1/26/2021 6th Cycle Continuous
The timeframe identified in
the Housing Element is
ongoing, so the completion
date listed in Field 3 is the
date the Housing Element
was adopted. The City
amended it short term rental
ordinanace on October 11,
2022 to establish a cap on
the number of permits for
this use.
Other
https://library.municode.com/ca/arroyo_grand
e/ordinances/code_of_ordinances?nodeId=1
178548
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Projected Completion
Date in Housing
Element
Applicable Cycle Status of Program
Implementation
Program
Implementation
Details
Quantified Outcomes:
Category
Quantified Outcomes:
Count Supporting Documents
Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.
C.1-1: The City shall
continue to allocate financial
resources to augment
extremely low, very low, and
low-income housing
development based on the
financial projection of the In-
Lieu Affordable Housing
Fund.
Funding to finance affordable housing 1/26/2021 6th Cycle Continuous
The timeframe identified in
the Housing Element is
ongoing, so the completion
date listed in Field 3 is the
date the Housing Element
was adopted. The City
allocated $1,078,370 to the
63-unit affordable housing
project at 700 Oak Park
Blvd. The developer of the
project is the Housing
Authority of San Luis
Obispo.
Units 62 None.
C.4-1: The City shall
continue to meet with local
non-profit and private
developers semi-annually or
more frequently if
opportunities arise, to
promote the extremely low,
very low, and low-income
housing programs and
programs for special needs
residents (including those
who are homeless) outlined
in the Housing Element. The
City shall direct private
housing developers to
funding sources (such as
federal and state housing
grant fund programs and
local housing trust funds) to
promote affordable housing,
as outlined in the policies of
Goal C.
Increased awareness of the City’s desire to
provide affordable housing and to
accommodate affordable housing
1/26/2021 6th Cycle Continuous
Staff met with Habitat for
Humanity, the Housing
Authority of San Luis
Obispo, and Habitat for
Humanity during 2025 to
discuss potential projects or
programs to assist low
income households. The
expected outcome is to
increase awareness of the
City's desire to provide
affordable housing for the
community.
Other None.
C.4-2: The City shall
continue to participate in
financial incentive programs
established by the San Luis
Obispo County Housing
Trust Fund, such as a
revolving loan program.
Leverage of financial resources to augment
development of affordable housing 1/26/2021 6th Cycle Continuous
The Community
Development Director
represents the City at
regular SLO County Housing
Trust Fund meetings. The
City remains an engaged
and willing partner to further
affordable housing goals.
Units None.
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Name of Program Objective
Projected Completion
Date in Housing
Element
Applicable Cycle Status of Program
Implementation
Program
Implementation
Details
Quantified Outcomes:
Category
Quantified Outcomes:
Count Supporting Documents
Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.
D.1-1: The City shall
encourage specific plans for
land within its sphere of
influence that include
increased capacity for
residential development.
Possible increased land inventory to
support affordable housing 1/26/2021 6th Cycle In Progress
The City is currently
updating its General Plan,
and the preliminary draft
land use element identifies
approximately 200 acres in
two separate areas that are
designated for future specific
plans. The expected
outcome is increasing land
inventory to support
affordable housing, which
has been accomplished
through the new specific
plan designations.
Other
The City has a Specific Plan Overlay for
undeveloped parcels where future
development is anticipated.
D.1-2: The City shall review
the parking standards for
affordable and senior
housing projects and reduce
them to the greatest extent
possible.
Remove constraints associated with
parking requirements for affordable and
senior housing projects
12/31/2023 6th Cycle In Progress
Parking standards are being
reviewed during the General
Plan update but no
amendments to the
development code have
been initiated. The expected
outcome is removing
constraints that might hinder
senior and affordable
housing development.
Other None.
E.1-1: The City shall
evaluate and consider
amending the inclusionary
affordable housing
requirements in the
Development Code (Chapter
16.80) based on experience
using the requirements in
producing affordable units.
In addition, the City shall
continue to amend the in-lieu
fee as needed and as called
for in Chapter 16.80.
Amendments to the inclusionary affordable
housing requirements and inclusionary in-
lieu fee
1/26/2023 6th Cycle Continuous
The City's existing affordable
housing in-lieu fee of 5% of a
project's construction
valuation is similar to the
other jurisdictions in the
County. Affordable housing
in-lieu fees were contributed
to the affordable housing
project at 700 Oak Park.
Units 63 None.
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Projected Completion
Date in Housing
Element
Applicable Cycle Status of Program
Implementation
Program
Implementation
Details
Quantified Outcomes:
Category
Quantified Outcomes:
Count Supporting Documents
Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.
F.1-1: The City shall work
with non-profit organizations
to maintain a list of persons
interested in development
projects containing
affordable housing. Agendas
for all City meetings related
to these projects shall be
sent to persons on the list.
The City shall also continue
to post the agendas on the
City’s website.
Increased public awareness of affordable
housing projects.1/26/2021 6th Cycle Continuous
A list of interested parties
has been established that
includes local affordable
housing developers, such as
the Housing Authority of San
Luis Obsipo, People's Self
Help Housing, and Habitat
for Humanity. Agendas for
public hearings are posted at
City Hall and on the City
website in accordance with
Government Code
requirements. The expected
outcome is increasing public
awareness of afforable
housing projects.
Other None.
F.1-2: The City shall address
and remove, replace or
modify the use permit
requirements for multifamily
development in multifamily
zones to promote certainty in
the approval process,
increase objectivity and
address the CUP and MUP
requirements as a
constraint.
Remove barrier to construct affordable
housing 1/26/2023 6th Cycle Not Yet Started
No amendments have been
initiated. The comprehensive
General Plan Update
currently underway includes
a task to develop objective
design standards and modify
permit requirements that will
increase the objectivity and
certainty in the approval
process.
Units None.
F.1-3: Establish a written
policy or procedure and
other guidance as
appropriate to specify the SB
35 (2017) streamlining
approval process and
standards for eligible
projects, as set forth under
California Government
Code, Section 65913.4.
Remove barriers to construct affordable
housing 12/31/2021 6th Cycle In Progress
Pre-application, eligibility and
completeness checklists,
and explanation of SB 35 is
on the City's website. These
actions accomplish the
expected outcome of
removing a barrier to
construct affordable housing
Other Materials are being developed and will be
posted to the City's website when complete.
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Name of Program Objective
Projected Completion
Date in Housing
Element
Applicable Cycle Status of Program
Implementation
Program
Implementation
Details
Quantified Outcomes:
Category
Quantified Outcomes:
Count Supporting Documents
Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.
F.1-4: Conduct a
comprehensive review of the
Development Code and the
General Plan and replace
any subjective standards
that may apply to housing
projects with objective
design standards in
compliance with applicable
State law. This will include
revising the findings for
design review to be
objective.
Streamline review process and remove
barriers to construct affordable housing 12/31/2025 6th Cycle Not Yet Started
No amendments have been
initiated, however, objective
design standards will be
developed as part of the
comprehensive General
Plan Update currently
underway. The objective
design standards will
streamline the review
process for eligible housing
projects.
Other None.
F.1-5: The City will establish
a written process to comply
with Senate Bill 1087 and
identify ways to move
forward with improvements
to water and wastewater
infrastructure as needed in
order to maintain sufficient
infrastructure and capacity to
serve the City’s housing
need. This will include
working on planning, funding
and construction of
infrastructure.
Maintain sufficient water and wastewater
infrastructure and capacity 12/31/2021 6th Cycle Continuous
The City's Utilities Division of
the Public Works
Department uses an on-call
consultant to perform
modeling of the water and
wastewater system to
ensure sufficient capacity is
available for affordable
housing projects. This
program is ongoing and
ensures the City satisfies the
expected outcome of
maintaining sufficient water
and wastewater capacity for
housing projects.
Other None.
G.1-1: The City shall
continue to coordinate with
the San Luis Obispo
Housing Authority to
maintain and expand
Section 8 rental housing
assistance to qualified
households.
Continued affordable housing 12/31/2021 6th Cycle Continuous
The City issued permits for
an affordable housing
development proposed by
the San Luis Obispo
Housing Authority consistent
with this program. Future
opportunities for partnership
will be evaluated as potential
projects arise to satisfy the
expected outcome of
maintaining affordable units.
Other None.
Page 64 of 601
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Projected Completion
Date in Housing
Element
Applicable Cycle Status of Program
Implementation
Program
Implementation
Details
Quantified Outcomes:
Category
Quantified Outcomes:
Count Supporting Documents
Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.
G.1-2: The City shall develop
a program to offer housing
developers an alternative to
meet affordable housing
requirements by contributing
some “sweat equity” on
projects where existing
housing units will be
rehabilitated or conserved
as affordable, pursuant to
the City’s Affordable
Housing Program.
Conservation and rehabilitation of existing
housing stock 1/21/2023 6th Cycle Not Yet Started
This program has not been
established,Units None.
G.2-1: The City shall
continue to consider
abatement of unsafe or
unsanitary structures,
including buildings or rooms
inappropriately used for
housing contrary to adopted
health and safety codes.
Where feasible, the City will
encourage rehabilitation and
allow reasonable notice and
time to correct deficiencies.
Conservation of existing housing stock 1/21/2021 6th Cycle Continuous
Code enforcement staff
ensure housing units are
maintained in accordance
with applicable building
codes. The City established
a procedure to implement
AB 2533 to legalize
unpermitted ADUs in
accordance with State law to
conserve existing housing
stock to satisfy the expected
outcome.
Other None.
H.1-1: The City will monitor
the list of all dwellings in
Arroyo Grande that are
subsidized by government
funding or low-income
housing developed through
local regulations or
incentives. The list will
include, at least, the number
of units, the type of
government program, and
the date on which the units
are at risk to convert to
market-rate dwellings. No
units have been identified as
at risk of converting to
market rate within 10 years
of the beginning of the sixth-
round Housing Element
planning period.
Preservation of existing affordable units 1/21/2021 6th Cycle Continuous
City staff maintains a list of
affordable housing units,
applicable deed restrictions,
and monitors compliance
with occupancy and resale
agreements for the subject
properties. It also provides
assistance when refinancing
or transfers of these
properties is requested to
satisfy the expected
outcome of preserving
existing affordable housing
units.
Other None.
Page 65 of 601