CC 2016-03-22_10b Housing Element Update
MEMORANDUM
TO: CITY COUNCIL
FROM: TERESA McCLISH, COMMUNITY DEVELOPMENT DIRECTOR
BY: KELLY HEFFERNON, ASSOCIATE PLANNER
SUBJECT: CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE FOR
THE 2014-2019 REGIONAL HOUSING NEEDS ASSESSMENT
(RHNA) CYCLE (GENERAL PLAN AMENDMENT 14-002) AND
NEGATIVE DECLARATION; AND 2) ORDINANCE AMENDING
PORTIONS OF TITLE 16 OF THE ARROYO GRANDE
MUNICIPAL CODE REGARDING EMERGENCY SHELTERS AND
SUPPORTIVE AND TRANSITIONAL HOUSING (DEVELOPMENT
CODE AMENDMENT 14-006); CITYWIDE
DATE: MARCH 22, 2016
RECOMMENDATION:
The Planning Commission recommends the City Council:
1. Receive public comment on the Draft Housing Element Update for the 2014-2019
Regional Housing Needs Assessment (RHNA) Cycle and adopt a Resolution
approving General Plan Amendment No. 14-002, thereby adopting a Negative
Declaration and approving the Housing Element Update; and
2. Introduce an Ordinance amending portions of Title 16 of the Arroyo Grande
Municipal Code to allow emergency shelters as a permitted use in the Industrial
Mixed Use (IMU) and Highway Mixed Use (HMU) zoning districts pursuant to
Housing Element Program K.2-1, and to define supportive and transitional
housing as residential uses subject to the same standards that apply to other
housing in the same zone pursuant to Housing Element Program K.2-2
(Development Code Amendment 14-006).
BACKGROUND:
State law requires each city and county to adopt a General Plan containing at least
seven (7) elements, including housing, which is to be updated approximately every five
(5) years. The Housing Element is subject to detailed statutory requirements and
mandatory review and certification by the State Department of Housing and Community
Development (HCD). The Housing Element is a comprehensive assessment of current
and projected housing needs for all economic segments of Arroyo Grande. Under State
law, the purpose of the Housing Element is to assess existing and projected housing
needs, identify obstacles to meeting those needs, and demonstrate capacity for each
city to accommodate its “fair share” of the projected need for new housing units in the
Item 10.b. - Page 1
CITY COUNCIL
CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE; AND 2) ORDINANCE
AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE
REGARDING EMERGENCY SHELTERS
MARCH 22, 2016
PAGE 2
region. It must contain a land inventory and identify adequate sites to provide for the
needs of households at all income levels.
HCD allocates a region’s share of the statewide housing need to Councils of
Governments (COGs) based on State Department of Finance population projections
and regional population forecasts. The San Luis Obispo Council of Governments
(SLOCOG) adopted the Regional Housing Needs Plan (RHNP) for the incorporated
cities and unincorporated areas of San Luis Obispo County in June 2013. Each
jurisdiction is required to integrate the housing unit distribution numbers identified in the
RHNP in their Housing Element update in order to accommodate their “fair share” of the
anticipated future housing demand.
For SLOCOG’s 2014 – 2019 Housing Element Cycle, the Regional Housing Needs
Allocation (RHNA) data has been established for the City of Arroyo Grande as follows:
Income Category Number of Units
Very Low Income (0-50% of AMI)* 60
Low Income (51-80% of AMI) 38
Moderate Income (81-120% of AMI) 43
Above Moderate Income (over 120% of AMI) 101
Total 242
*AMI = Area Median Income
The distribution of 242 total housing units for the City is about 33% less than the
previous program period, which allocated 362 total housing units to the City.
The City Council adopted the City’s previous Housing Element on October 22, 2013 and
HCD certified the document on December 5, 2013. This last Housing Element cycle
took more time than expected to complete due to multiple HCD reviews and other staff
priorities. The City contracted with Lisa Wise Consulting in May 2014 to assist with the
current Housing Element Update. Staff and the consultant have been working together
to evaluate the previous Housing Element and the local housing supply, inventory
vacant land and underutilized sites, and assess constraints to the development of
housing as required by State law.
The Planning Commission held a public workshop to review and comment on the draft
Housing Element Update on September 2, 2014. The Commission provided the
following comments:
• Development projects should include a percentage of low and very low income
units dispersed throughout the project to avoid a concentration of lower income
housing.
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CITY COUNCIL
CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE; AND 2) ORDINANCE
AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE
REGARDING EMERGENCY SHELTERS
MARCH 22, 2016
PAGE 3
• Delete reference to “homestays” in Policy B.6 and Program B.6-1 since they are
required to be owner-occupied and therefore are not considered a loss of
permanent workforce housing.
• Replace the word “adverse” impacts with “all” impacts in Policy H.2.
• Replace the word “creed” with “religion” in Goal N and Policy N.1.
• Include water efficient programs similar to the energy efficient programs.
• Minor edits and corrections to tables.
• Commissioners were supportive of new Policy A.15 regarding first-time home
buyers.
The City Council considered the draft Housing Element on September 23, 2014 and did
not make any changes to the document. Staff submitted a revised draft document to
HCD for review that included Planning Commission changes. HCD responded with
additional City actions that must occur prior to certification as listed below (Housing
Element law in italics followed by HCD required actions):
A. Housing Needs, Resources, and Constraints
1. Provide for a variety of housing, including multifamily, rental housing, factory-
built housing, mobilehomes, housing for agricultural employees, emergency
shelters, and transitional housing (Section 65583.2).
Sites with Zoning for a Variety of Housing Types:
Emergency Shelters: Program K.2-1, identified in the previous element,
committed the City to amend the zoning ordinance to permit an emergency
shelter in the IMU and HMU districts without discretionary action within one
year from adoption of the 4th cycle housing element. As noted in the current
draft element, Program K.2-1 has not been implemented. The Department
will be unable to find the housing element in compliance until the City has
completed the required zoning amendment and submitted the adopted
element to the Department pursuant to Government Code Section 65585(g).
2. Analyze potential and actual governmental constraints upon the maintenance,
improvement, or development of housing for all income levels, including the
types of housing identified in paragraph (1) of subdivision I, and for persons
with disabilities as identified in the analysis pursuant to paragraph (7),
including land use controls, building codes and their enforcement, site
improvements, fees and other exactions required of developers, and local
processing and permit procedures. The analysis shall also demonstrate local
efforts to remove governmental constraints that hinder the locality from
meeting its share of the regional housing need in accordance with Section
65584 and from meeting the need for housing for persons with disabilities,
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CITY COUNCIL
CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE; AND 2) ORDINANCE
AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE
REGARDING EMERGENCY SHELTERS
MARCH 22, 2016
PAGE 4
supportive housing, transitional housing, and emergency shelters identified
pursuant to paragraph (7) (Section 65583(a)(5)).
As noted in the element, the City applies a different approval process for
multifamily development over four units requiring Planning Commission
review and a Conditional Use Permit. Additional review and complex
discretionary findings can add significant time and uncertainty to the approval
process and consequently can impact the cost and supply of housing,
particularly housing affordable to low- and moderate- income households.
The element must analyze whether the approval process for multifamily
development poses a potential constraint and include a program to remove or
mitigate constraints.
City actions required to address this finding would be satisfied, if the City
approves a program to implement proposed draft actions described in the
City’s November 20, 2014 communication. Proposed draft actions would
increase allowable density in the OMU zone from 15 to 20 units per acre for
stand-alone multifamily housing and allow multifamily development with a
Minor Use Permit (MUP).
B. Housing Programs
The housing element shall contain programs which address, and where
appropriate and legally possible, remove governmental constraints to the
maintenance, improvement, and development of housing (Section
65583(c)(3)).
As noted in Finding A-2, the element requires a complete analysis of potential
governmental constraints. Depending upon the results of that analysis, the
City may need to revise or add programs to remove or mitigate any identified
constraints.
C. Public Participation
Local governments shall make a diligent effort to achieve public participation
of all economic segments of the community in the development of the housing
element, and the element shall describe this effort (Section 65583(c)(7)).
The element outlines the public participation process the City will use;
however, when the element was submitted to the Department, the element
had not been released for public comment. The City will take steps to comply
with the public participation requirement before adoption of the final housing
element. Engaging the community, organizations and service providers
representing lower-income households is important in developing, adopting
Item 10.b. - Page 4
CITY COUNCIL
CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE; AND 2) ORDINANCE
AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE
REGARDING EMERGENCY SHELTERS
MARCH 22, 2016
PAGE 5
and implementing an effective housing element. The City will engage the
community, including any parties commenting on the draft element, while the
draft element is being revised. Interested parties and the public will be
provided sufficient notice (i.e. 30 days) and opportunity to comment. The
housing element should describe the success of outreach efforts, summarize
public comments and describe how the element incorporated public input.
The City’s response to HCD required actions is discussed under Analysis of Issues.
The draft element is included as Exhibit A of the attached Resolution and includes
previous Planning Commission recommendations. Staff has been working with HCD to
refine the document and ensure that it includes adequate modifications for certification.
The Planning Commission considered the Draft Housing Element Update and
Emergency Shelter Ordinance on January 19, 2016 and continued the public hearing to
March 1, 2016 to allow time for additional public outreach (see Attachment 1 for 1/19/16
meeting minutes). Staff created a mailing list of potentially interested organizations and
individuals who were notified of the public hearing. On March 1, 2016 the Planning
Commission held a second public hearing on this item and adopted two Resolutions: 1)
Resolution recommending the City Council adopt a Negative Declaration and approving
General Plan Amendment 14-002 for the Housing Element Update; and 2) Resolution
recommending the City Council approve Development Code Amendment 14-006,
thereby adopting an Ordinance amending portions of Title 16 of the Arroyo Grande
Municipal Code regarding Emergency Shelters and transitional and supportive housing.
Although notices were sent directly to fifty-two (52) organizations and individuals,
posted in The Tribune and on the City’s website, there were no members from the
public who commented on the item. Based on the Planning Commission’s
recommendation, the public hearing mailing list was amended to include the Lucia Mar
Unified School District (see Attachment 2 for 3/1/16 meeting minutes and Attachment 3
for mailing list).
Once the City Council considers the draft Housing Element and makes any
amendments, the City will send the document to HCD for final review and certification.
Beyond compliance with State law, a certified housing element makes the City eligible
for State and Federal funding for various housing programs. The City is currently not
pursuing any grant funding for housing-related programs.
ANALYSIS OF ISSUES:
Draft Housing Element Update
The Draft Housing Element Update is divided into the following chapters; a brief discussion
of each chapter is discussed further below.
Item 10.b. - Page 5
CITY COUNCIL
CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE; AND 2) ORDINANCE
AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE
REGARDING EMERGENCY SHELTERS
MARCH 22, 2016
PAGE 6
CHAPTER TITLE
1 Introduction
2 Goals, Policies, Programs and Quantified Objectives
3 Background Information
4 Housing Resources
5 Housing Constraints
6 Review of the Previous Housing Element
Chapter 1 - Introduction
The Introduction provides an overview of the required components as well as the
organization of the Housing Element. In summary, the required components of the
Housing Element include:
• Analysis of housing needs based on the population and existing housing stock;
• Analysis of land suitable to accommodate the City’s regional “fair share” of
housing;
• Analysis of constraints to housing production and mitigation of those constraints;
• Housing objectives, policies and actions, which guide decision making and
address the City’s identified housing needs and mitigation of constraints; and
• Description of programs which implement the City’s housing goals and address
housing needs.
Chapter 2 – Goals, Policies, Programs and Quantified Objectives
To meet the purpose of the Housing Element, the document provides sixteen (16) main
goals, policies that enact the goals, and programs to implement those policies. The
goals are listed in the Table of Contents for easier reference. Most all of the goals,
policies and programs have been retained from the previous Housing Element since
they are still relevant and desirable. Several of the policies have been revised to better
clarify their intent and include updated information. The following policies and programs
have been added since the previous Housing Element update and amended per
Planning Commission recommendations:
A.15. The City shall pursue program assistance for first-time home buyers.
A.15-1. The City shall establish a program to provide assistance to first-time
home buyers.
Responsible agency/department: Community Development
Timeframe: Within 2 years of Housing
Element adoption
Item 10.b. - Page 6
CITY COUNCIL
CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE; AND 2) ORDINANCE
AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE
REGARDING EMERGENCY SHELTERS
MARCH 22, 2016
PAGE 7
Funding: General Fund; HCD Home
Investments Partnerships
Program (HOME)
Expected Outcome: Development of a first-time home
buyers program
Quantified Objective: n/a
B.6. The City shall continue to regulate the use of existing residences on
residentially zoned properties for vacation rentals.
B.6-1. The City shall monitor the loss of permanent workforce housing from
vacation rentals and consider modifying the Development Code to
adjust for this loss.
Responsible agency/department: Community Development
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Program to monitor vacation
rentals
Quantified Objective: n/a
J.5-1. To encourage farmworker housing, the City will amend the zoning
ordinance to identify farmworker housing as a residential use in the
use tables. The City Zoning Ordinance will be amended to ensure that
permit processing procedures for farmworker housing do not conflict
with Health and Safety Code Sections 17021.5, which states that
farmworker housing for six or fewer employees should be “deemed a
single-family structure with a residential land use designation”, and
17021.6 which states that for "employee housing consisting of no more
than 36 beds in a group quarters or 12 units or spaces designed for
use by a single family or household...no conditional use permit, zoning
variance, or other zoning clearance shall be required of employee
housing of this employee housing that is not required of any other
agricultural activity in the same zone”.
Responsible agency/department: Community Development
Timeframe: Within 1 year of Housing Element
adoption
Funding: General Fund
Expected Outcome: Increased housing opportunities
for farmworkers
Quantified Objective: 5 very low-income units
Item 10.b. - Page 7
CITY COUNCIL
CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE; AND 2) ORDINANCE
AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE
REGARDING EMERGENCY SHELTERS
MARCH 22, 2016
PAGE 8
K.2-2. The City shall amend the Development Code to define transitional and
supportive housing as residential uses per Section 65582 of the
Government Code subject to the same standards that apply to other
housing in the same zone.
Responsible agency/department: Community Development
Timeframe: Concurrently with Housing
Element adoption (per
Government Code Section
65583(a)(4))
Funding: General Fund
Expected Outcome: Expected outcome is compliance
with Housing Element law
regarding transitional and
supportive housing.
Quantified Objective: n/a
Note that staff amended program G.1-3 in response to City Council comments during
the last Housing Element review in October 2013. There was concern about not having
design review for development of five (5) units or more of attached multiple-family units.
The revised program allows development of up to fifteen (15) multiple-family attached
units in the MF and MFA zoning districts with a Minor Use Permit (MUP) subject to
design review through the Architectural Review Committee. All approvals by the
Community Development Director may be referred or appealed to the Planning
Commission. Development of over fifteen (15) multiple-family attached units requires a
Conditional Use Permit (CUP).
The State does not require “extremely” low-income households to be quantified in our
RHNA or included in our goals, policies and programs. However, these types of
households must be included in the demographic analysis, which is presented in
Chapter 3. Since HCD generally encourages inclusion of extremely low-income units in
goals, policies and programs of housing elements, they are included in Chapter 2.
Regarding HCD’s comments, response to HCD Item A.1 (emergency shelters) is
discussed below starting on page 9. Staff responded to HCD Item A.2. with the
following additional program:
A.10-3. To encourage higher densities and reduce constraints to multi-family
housing production, the City shall amend the Development Code to
allow densities up to 20 du/ac in the Office Mixed Use (OMU) District
for 100% multi-family housing projects with a Minor Use Permit (MUP)
Item 10.b. - Page 8
CITY COUNCIL
CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE; AND 2) ORDINANCE
AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE
REGARDING EMERGENCY SHELTERS
MARCH 22, 2016
PAGE 9
subject to design review through the Architectural Review Committee.
Mixed-use projects will continue to have a maximum allowed density of
20 du/ac.
Responsible agency/department: Community Development
Timeframe: Within 2 years of Housing
Element adoption
Funding: General Fund
Expected Outcome: Remove barrier to construct
affordable housing
Quantified Objective: n/a
Chapter 3 – Background Information
This chapter presents and analyzes demographic, population and housing characteristics
for better understanding of the local housing market to accommodate different types of
housing for all income levels.
Chapter 4 – Housing Resources
Chapter 4 evaluates the availability of land and public services available to support future
residential development, and summarizes financial resources available for affordable
housing and energy conservation opportunities. Key aspects of this chapter include the
inventory of potential affordable housing development sites.
One of the most important aspects of the Housing Element Update is to identify
sufficient sites and densities for affordable housing to demonstrate that the RHNA
numbers can be satisfied. Demonstrating that the City has sufficient land zoned to
support mixed use or higher density housing is critical for HCD certification of the
Housing Element.
Tables 4-7 (Vacant Sites Inventory) and 4-8 (Opportunity Sites Inventory) present a
potential list of sites that could support development of or redevelopment to higher
density projects in the City’s mixed use zoning districts or affordable residential
development in residential districts. The tables describe the site conditions, size of
properties, existing zoning, potential density and number of affordable units. As the
tables indicate, the City has sufficient land area to support additional (and affordable)
housing to meet its RHNA numbers.
A common misconception of the law is that jurisdictions must build their regional
housing needs allocation by the end of the program period. What is instead required is
that jurisdictions must show that their policies and zoning can accommodate these
units. The City’s Draft Housing Element identifies vacant and opportunity sites where
housing could be provided to meet our RHNA of 242 units and areas that would support
Item 10.b. - Page 9
CITY COUNCIL
CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE; AND 2) ORDINANCE
AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE
REGARDING EMERGENCY SHELTERS
MARCH 22, 2016
PAGE 10
more density. The City cannot ensure that these sites will be developed for affordable
housing or when they might be developed. However, by identifying specific sites where
housing would be an appropriate use, and adopting Housing Element policies that
support housing development, the City will enhance the chances that it will occur. It is
anticipated that in most cases, affordable housing development would only occur
through the combination of supportive policies (e.g. density bonus, inclusionary zoning,
fast track processing, waiver of fees, etc.), the involvement of non-profit housing
providers, housing subsidies from State or Federal sources, and the use of the City’s in-
lieu affordable housing fund.
Chapter 5 – Housing Constraints
This chapter analyzes the constraints to housing development, including governmental
constraints (e.g. land use and development controls, building code requirements, impact
fees, permit processing timelines, and improvement requirements), environmental
constraints (e.g. water availability, traffic and circulation, site constraints), and non-
governmental constraints (e.g. land costs, construction costs, financial costs, and
insurance availability).
Chapter 6 – Review of the Previous Housing Element
Chapter 6 evaluates the status and implementation of the programs of the previous
Housing Element, focusing on programs that were successful and should be continued,
and those that were ineffective and should be eliminated or modified.
Emergency Shelters
HCD requires that Program K.2-1, which permits emergency shelters in the IMU and
HMU districts without discretionary action, must be implemented before the current
Housing Element can be certified. Program K.2-2, mentioned above as a new program to
define transitional and supportive housing as a residential use subject to the same
standards that apply to other housing in the same zone, must also be implemented.
As background, SB2 became effective January 1, 2008, requiring all cities and counties in
California to provide at least one zoning district which allows emergency shelters without
a conditional use permit or other discretionary approval. The Housing Element must
identify the zoning district(s) and demonstrate that there is sufficient land capacity to
accommodate the locality’s need for emergency shelters and at least one year-round
emergency shelter facility. In 2014, SB 745 created new definitions of “supportive
housing”, “target population”, and “transitional housing” that are more specific to Housing
Element law. These definitions are included in proposed Development Code Amendment
14-006.
Per the draft Housing Element, Program K.2-1 requires the following:
Item 10.b. - Page 10
CITY COUNCIL
CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE; AND 2) ORDINANCE
AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE
REGARDING EMERGENCY SHELTERS
MARCH 22, 2016
PAGE 11
K.2-1. The City shall amend the Development Code to allow emergency
shelters without a conditional use permit or other discretionary permits
in appropriate locations in compliance with SB 2, the “Fair Share
Zoning” law. The Development Code amendment shall include a
definition for “emergency shelter.” Emergency shelters are currently
not allowed in commercial mixed use districts, and are allowed through
the Conditional Use Permit process in the Condominium/Townhouse
(MF), Apartments (MFA) and Multifamily Very High Density (MFVH)
residential districts. The Development Code shall be updated to permit
emergency shelters by right in at least one zone or site. Potential
zones include the Industrial Mixed-Use (IMU) and Highway Mixed-Use
(HMU) districts. These commercial districts have sufficient capacity to
house emergency shelters with approximately 18 acres of vacant or
underutilized land available. The IMU district has several large parcels
totaling almost 13.5 acres with ten (10) acres that are currently used as
storage and/or construction yards with small or no permanent
structures. The HMU district has less potential, although there are
about four acres with a couple of large vacant parcels totaling 1.64
acres.
The Development Code can include locational and operational criteria
for emergency shelters such as:
• Proximity of public transit, supportive services, and commercial
services;
• Hours of operation;
• External lighting and noise;
• Provision of security measures for the proper operation and
management of a proposed facility;
• Measures to avoid queues of individuals outside proposed
facility; and
• Compliance with county and State health and safety
requirements for food, medical, another supportive services
provided onsite.
Such criteria can act to encourage and facilitate emergency shelters
and transitional housing through clear and unambiguous guidelines for
the application review process, the basis for approval, and the terms
and conditions of approval.
The City will solicit input from local service providers and the South
San Luis Obispo County working group in the preparation and adoption
of the amendment to the Development Code to ensure that
Item 10.b. - Page 11
CITY COUNCIL
CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE; AND 2) ORDINANCE
AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE
REGARDING EMERGENCY SHELTERS
MARCH 22, 2016
PAGE 12
development standards and permit processing will not impede the
approval and/or development of emergency shelters.
Responsible agency/department: Community Development
Timeframe: Concurrently with Housing
Element adoption (per
Government
Code Section 65583(a)(4))
Funding: General Fund
Expected Outcome: Expected outcome is compliance
with SB 2 regarding emergency
shelters.
Quantified Objective: n/a
K.2-2. The City shall amend the Development Code to define transitional and
supportive housing as residential uses per Section 65582 of the
Government Code subject to the same standards that apply to other
housing in the same zone.
Responsible agency/department: Community Development
Timeframe: Concurrently with Housing
Element adoption (per
Government Code Section
65583(a)(4))
Funding: General Fund
Expected Outcome: Expected outcome is compliance
with Housing Element law
regarding transitional and
supportive housing.
Quantified Objective: n/a
To implement Programs K.2-1 and K.2-2 and be consistent with State Housing Element
Law, Development Code Amendment 14-006 is proposed that includes changes to the
Municipal Code as indicated below.
1. Under Section 16.04.070 – Definitions, add:
• “Emergency shelter” means housing with minimal supportive services for
homeless persons that is limited to occupancy of six months or less by a
homeless person. No individual or household may be denied emergency
shelter because of an inability to pay (as defined by California Health and
Safety Code Section 50801(e)).
Item 10.b. - Page 12
CITY COUNCIL
CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE; AND 2) ORDINANCE
AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE
REGARDING EMERGENCY SHELTERS
MARCH 22, 2016
PAGE 13
• “Supportive housing” means housing with no limit on length of stay, that is
occupied by the target population, and that is linked to onsite or offsite service
that assists the supportive housing resident in retaining the housing, improving
his or her health status, and maximizing his or her ability to live and, when
possible, work in the community (as defined by Government Code Section
65582). Supportive housing shall be considered a residential use of property,
and shall be subject only to those restrictions that apply to other residential
dwellings of the same type in the same zone.
• “Target population” means persons with low incomes who have one or more
disabilities, including mental illness, HIV or AIDS, substance abuse, or other
chronic health condition, or individuals eligible for services provided pursuant to
the Lanterman Developmental Disabilities Services Act (Division 4.5
(commencing with Section 4500) of the Welfare and Institutions Code) and may
include, among other populations, adults, emancipated minors, families with
children, elderly persons, young adults aging out of the foster care system,
individuals exiting from institutional settings, veterans, and homeless people
(as defined by Government Code Section 65582).
• “Transitional housing” means a building or buildings configured as rental
housing developments, but operated under program requirements that require
the termination of assistance and recirculation of the assisted unit to another
eligible program recipient at a predetermined future point in time that shall be
no less than six (6) months from the beginning of the assistance (as defined by
Section 50675.2 of the Health and Safety Code). Transitional housing shall be
considered a residential use of property, and shall be subject only to those
restrictions that apply to other residential dwellings of the same type in the
same zone. Transitional housing does not include state licensed residential
care facilities.
2. Under Section 16.36.030 - Commercial and mixed use regulations, modify Table
16.36.030(A) as follows:
Item 10.b. - Page 13
CITY COUNCIL
CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE; AND 2) ORDINANCE
AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE
REGARDING EMERGENCY SHELTERS
MARCH 22, 2016
PAGE 14
Table 16.36.030(A)
Uses Permitted Within Mixed Use and Commercial Districts
Allowed Land
Uses and
Permit
Requirements
– LAND USE
IMU TMU
D-2.11
VCD
HCO
D-2.4
VMU
D-2.11
HCO
D-2.4
GMU FOMU HMU OMU
D-
2.20
RC
B. SERVICES
- GENERAL
Emergency
shelters
MUP
NP
NP
NP
NP
NP
MUP
NP
NP
3. Under Section 16.32.040 - Use regulations for residential districts, modify Table
16.32.040(A) as follows:
Table 16.32.040(A)
Uses Permitted Within Residential Districts
USE RE RH RR RS SF VR
D-2.4
MF MFA MFVH MHP
18. Supportive
housing
P P P P P P P P P P
19. Transitional
housing
P P P P P P P P P P
4. Under Chapter 16.52, Specific Use Development Standards, add a new Section
16.52.091 regarding Emergency Shelters:
16.52.091 – Emergency shelters.
A. Purpose and Intent. It is the purpose of this section to facilitate and encourage
the provision of emergency shelters for homeless persons and households by
allowing permanent year-round emergency shelters without a conditional use
permit or other discretionary action in the Industrial Mixed Use (IMU) and Highway
Mixed Use (HMU) zoning districts, subject only to the same development
standards that apply to other permitted uses in these zones, except for the
following requirements unique to emergency shelters, as authorized by
Government Code Section 65583(a)(4).
B. Permit requirements.
1. Emergency shelter facilities shall comply with all federal and California
State licensing requirements.
Item 10.b. - Page 14
CITY COUNCIL
CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE; AND 2) ORDINANCE
AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE
REGARDING EMERGENCY SHELTERS
MARCH 22, 2016
PAGE 15
2. Emergency shelter facilities shall comply with all applicable Uniform
Building Codes, Plumbing Codes and Fire Codes, including maximum
occupancy restrictions.
C. Minimum site design and development standards. An emergency shelter is
subject to all property development standards of the zoning district in which it is
located except as modified by the following standards:
1. The maximum number of beds or persons to be served nightly by an
emergency shelter shall be thirty-four (34).
2. Off-street parking shall include one (1) vehicle parking space per three (3)
beds and one (1) space per employee on the largest shift. A covered and
secured area for bicycle parking shall be provided for use by staff and
clients, commensurate with demonstrated need, but no less than a
minimum of eight (8) bike parking spaces.
3. Exterior lighting shall be provided for security purposes. The lighting shall
be stationary, directed away from adjacent properties and public right-of-
way, and of an intensity compatible with the neighborhood.
4. Security shall be provided for residents, visitors and employees during the
hours that the emergency shelter is in operation.
5. On-site management shall be provided. The agency or organization
operating the shelter shall comply with the following requirements:
a. Temporary shelters shall be available to residents for no more than six
(6) months within a twelve (12) month period. The days of stay need not
be consecutive.
b. Staff and services shall be provided to assist residents to obtain
permanent shelter and income.
c. The provider shall have a written management plan including, as
applicable, provisions for staff training, neighborhood outreach, security,
screening of residents to insure compatibility with services provided at
the facility, and for training, counseling and treatment programs for
residents.
6. Appropriately sized and located exterior and interior on-site waiting and
intake areas shall be provided.
7. Laundry facilities or services shall be provided that are adequate for the
number of residents.
8. Emergency shelter facilities shall provide a refuse storage area that is
completely enclosed with masonry walls not less than five (5) feet high with
a solid-gated opening that is large enough to accommodate standard-sized
trash and recycling bins, or other enclosures as approved by the Director of
Community Development. The refuse enclosure shall be accessible to
refuse collection vehicles.
Item 10.b. - Page 15
CITY COUNCIL
CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE; AND 2) ORDINANCE
AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE
REGARDING EMERGENCY SHELTERS
MARCH 22, 2016
PAGE 16
9. The facility may provide one or more of the following specific common
facilities for the exclusive use of the residents and staff:
a. Central cooking and dining room(s).
b. Recreation room.
c. Counseling center.
d. Child care facilities.
e. Other supportive services.
10. Organized outdoor activities may only be conducted between the hours of
8:00 a.m. and 9:00 p.m. for noise abatement purposes.
11. An emergency shelter shall not be located within three hundred (300) feet of
another emergency shelter, kindergarten through 12th grade curriculum
school, child care center, or park as measured from the closest property
line.
12. No individual or household shall be denied emergency shelter because of
an inability to pay.
ADVANTAGES:
The Housing Element Update provides the necessary conditions for producing and
preserving an adequate supply of affordable housing, including special needs housing
(e.g. housing for the elderly, the disabled, female-headed households, large families,
farmworkers, and homeless persons and families). The Housing Element includes
strategies that address the City’s local housing needs, including an inventory of land
adequately zoned for housing in all income categories and a commitment to assist in
housing development through regulatory concessions and incentives.
State law requires jurisdictions to make a diligent effort to involve all economic segments
of the community in the Housing Element Update process. The public hearing process
provides an opportunity for the public to identify problems and propose solutions to
housing issues facing the City. By submitting the Housing Element to HCD the City will
be in compliance with the statutory procedure for adoption of an updated Housing
Element. A certified housing element makes the City eligible for State and Federal grant
funding for various housing programs.
DISADVANTAGES:
Some of the policies identified encourage increased densities for infill sites and as such
could result in parking or other neighborhood issues related to future proposed projects.
However, the Housing Element provides for policies to ensure there are adequate sites
for housing, development of housing at maximum densities is not required and all projects
are subject to California Environmental Quality Act (CEQA) review.
Item 10.b. - Page 16
CITY COUNCIL
CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE; AND 2) ORDINANCE
AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE
REGARDING EMERGENCY SHELTERS
MARCH 22, 2016
PAGE 17
ENVIRONMENTAL REVIEW:
Staff has reviewed the Housing Element Update in accordance with the California
Environmental Quality Act (CEQA) and has prepared an Initial Study and Draft Negative
Declaration (Attachment 4) for Council consideration and action. If the Negative
Declaration is not adopted, the document cannot be approved at this time.
PUBLIC NOTIFICATION AND COMMENTS:
Public Hearing Notices were mailed to potentially interested organizations and individuals.
A Public Notice was placed in The Tribune on Friday March 11, 2016 for the City Council
hearing. The Agenda was posted in front of City Hall on Thursday, March 17, 2016. The
Agenda and report were posted on the City’s website on Friday, March 18, 2016. No
public comments were received.
Attachments:
1. Planning Commission Meeting Minutes of January 19, 2016
2. Planning Commission Meeting Minutes of March 1, 2016
3. Public Hearing Notice Mailing List
4. Draft Initial Study/Negative Declaration
5. Housing Element, June 30, 2014 – June 30, 2019
Item 10.b. - Page 17
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE APPROVING GENERAL PLAN AMENDMENT 14-002 AND
ADOPTING AN INITIAL STUDY/NEGATIVE DECLARATION; HOUSING
ELEMENT UPDATE FOR THE 2014-2019 REGIONAL HOUSING NEEDS
ASSESSMENT (RHNA) CYCLE
WHEREAS, Section 65302 of the California Government Code requires every city and
county in California to adopt a Housing Element as part of its General Plan; and
WHEREAS, State law further requires that the City of Arroyo Grande’s (“City”) Housing
Element be updated at least every five years to demonstrate that the jurisdiction is
capable of accommodating its “fair share” of the region’s housing needs and complies
with the current requirements of State law; and
WHEREAS, the City was given a Regional Housing Needs Allocation of 242 housing
units for 2014-2019, including 60 units of very low income housing, 38 units of low income
housing, 43 units of moderate income housing, and 101 units of above moderate housing;
and
WHEREAS, duly noticed public workshops and hearings were held by the Planning
Commission on September 2, 2014, January 19, 2016 and March 1, 2016; and
WHEREAS, duly noticed public hearings were held by the City Council on September 23,
2014 and March 22, 2016, at which time all interested persons were given the opportunity
to be heard; and
WHEREAS, the City Council has reviewed and considered the information and public
testimony presented at the public hearing and the information contained in the Housing
Element Update and staff report; and
WHEREAS, the City Council has reviewed this project in compliance with the California
Environmental Quality Act (CEQA) and determined that a negative declaration can be
adopted.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo
Grande hereby adopts a Negative Declaration and approves General Plan Amendment
14-002, thereby approving the Housing Element Update, a true and correct copy of which
is on file in the City Clerk’s office and Community Development Department and
incorporated herein by this reference as though set forth in full.
On motion of Council Member , seconded by Council Member , and on
the following roll call vote, to wit: AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this 22nd day of March, 2016.
Item 10.b. - Page 18
RESOLUTION NO.
PAGE 2
JIM HILL, MAYOR
ATTEST:
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
DIANNE THOMPSON, CITY MANAGER
APPROVED AS TO FORM:
HEATHER K. WHITHAM, CITY ATTORNEY
Item 10.b. - Page 19
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE AMENDING TITLE 16 OF THE ARROYO GRANDE
MUNICIPAL CODE REGARDING EMERGENCY SHELTERS AND
SUPPORTIVE AND TRANSITIONAL HOUSING
WHEREAS, the City of Arroyo Grande (“City”) seeks to be in compliance with the State
of California’s regulations for the allowance of emergency shelters as required by State
Senate Bill 2 (SB2), effective January 1, 2008, and codified in California Government
Code Section 65583; and
WHEREAS, Government Code Section 65583 obligates cities and counties to establish
a zoning district that allows emergency shelters as a land use which does not require a
conditional use permit or other discretionary approval, and allows for the opportunity to
create written standards for the development and operation of emergency shelters; and
WHEREAS, SB2 stipulates that supportive housing and transitional housing shall be
considered residential uses, only subject to those restrictions that apply to other
residential uses of the same type in the same zone; and
WHEREAS, Housing Element Policy K.2 calls for amending the Development Code to
be in compliance with SB2; and
WHEREAS, the State Office of Housing and Community Development (HCD) requires
implementation of Housing Element Programs K.2.1 and K.2.2 regarding emergency
shelters and supportive and transitional housing prior to certification of the City’s
Housing Element; and
WHEREAS, a State-approved Housing Element is required for eligibility for certain
grants; and
WHEREAS, the City Council has considered the proposed Ordinance approving
Development Code Amendment 14-006 at a duly noticed public hearing on March 22,
2016; and
WHEREAS, after consideration of all testimony and all relevant evidence, the City
Council has determined that the following Development Code Amendment findings can
be made in an affirmative manner:
A. The proposed amendment to Title 16 of the Arroyo Grande Municipal Code
(AGMC) is consistent with the goals, objectives, policies and programs of the
general plan, and is necessary and desirable to implement the provisions of
the general plan.
Item 10.b. - Page 20
ORDINANCE NO.
PAGE 2
The proposed Development Code Amendment to add a new Section
16.52.091 pertaining to standards for emergency shelters and modify
Tables 16.32.040(A) and 16.36.030(A) pertaining to supportive and
transitional housing is consistent with the following policy of the Housing
Element:
Policy K.2. The City shall allow emergency shelters for overnight lodging
in appropriate zoning districts as part of the Development Code Update in
compliance with State law.
B. The proposed amendment will not adversely affect the public health, safety,
and general welfare or result in an illogical land use pattern.
The proposed Development Code Amendment adds standards for
emergency shelters which ensure that operating characteristics of any
emergency shelter do not adversely impact public health, safety, and
general welfare of the community in which a shelter is located.
Compliance with the requirements of California Government Code Section
65583 for supportive housing and transitional housing will be of benefit to
the public.
C. The proposed revisions are consistent with the purpose and intent of Title 16,
satisfy the intent of Chapters 16.04, 16.32 and 16.36 of the Municipal Code
and provide for internal consistency.
D. The potential environmental impacts of the proposed Development Code
Amendment are insignificant.
The proposed Development Code Amendment is exempt from
environmental review under the “general rule” at Section 15061(b)(3) of
the California Environmental Quality Act (CEQA) Guidelines because it
can be seen with certainty that there is no possibility that the proposed
Development Code Amendment may have a significant effect on the
environment.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Arroyo
Grande as follows:
SECTION 1: The above recitals and findings are true and correct and incorporated
herein by this reference.
SECTION 2: The following definitions in Arroyo Grande Municipal Code Subsection
16.04.070.C. are hereby added as follows:
Item 10.b. - Page 21
ORDINANCE NO.
PAGE 3
16.04.070.C. Definitions
“Emergency shelter” means housing with minimal supportive services for homeless
persons that is limited to occupancy of six months or less by a homeless person. No
individual or household may be denied emergency shelter because of an inability to
pay (as defined by California Health and Safety Code Section 50801(e)).
“Supportive housing” means housing with no limit on length of stay, that is occupied
by the target population, and that is linked to onsite or offsite service that assists the
supportive housing resident in retaining the housing, improving his or her health
status, and maximizing his or her ability to live and, when possible, work in the
community (as defined by Government Code Section 65582). Supportive housing
shall be considered a residential use of property, and shall be subject only to those
restrictions that apply to other residential dwellings of the same type in the same zone.
“Target population” means persons with low incomes who have one or more
disabilities, including mental illness, HIV or AIDS, substance abuse, or other chronic
health condition, or individuals eligible for services provided pursuant to the
Lanterman Developmental Disabilities Services Act (Division 4.5 (commencing with
Section 4500) of the Welfare and Institutions Code) and may include, among other
populations, adults, emancipated minors, families with children, elderly persons,
young adults aging out of the foster care system, individuals exiting from institutional
settings, veterans, and homeless people (as defined by Government Code Section
65582).
“Transitional housing” means a building or buildings configured as rental housing
developments, but operated under program requirements that require the termination
of assistance and recirculation of the assisted unit to another eligible program
recipient at a predetermined future point in time that shall be no less than six (6)
months from the beginning of the assistance (as defined by Section 50675.2 of the
Health and Safety Code). Transitional housing shall be considered a residential use
of property, and shall be subject only to those restrictions that apply to other
residential dwellings of the same type in the same zone. Transitional housing does
not include state licensed residential care facilities.
SECTION 3: Table 16.32.040-A in Section 16.32.040 of the Arroyo Grande Municipal is
hereby amended to add the following uses:
Item 10.b. - Page 22
ORDINANCE NO.
PAGE 4
Table 16.32.040(A)
Uses Permitted Within Residential Districts
USE RE RH RR RS SF VR
D-2.4
MF MFA MFVH MHP
18. Supportive
housing
P P P P P P P P P P
19. Transitional
housing
P P P P P P P P P P
SECTION 4: Table 16.36.030(A) in Section 16.36.030 of the Arroyo Grande Municipal
Code is hereby amended to add the following use:
Table 16.36.030(A)
Uses Permitted Within Mixed Use and Commercial Districts
Allowed Land
Uses and
Permit
Requirements
– LAND USE
IMU TMU
D-2.11
VCD
HCO
D-2.4
VMU
D-2.11
HCO
D-2.4
GMU FOMU HMU OMU
D-
2.20
RC
B. SERVICES
- GENERAL
Emergency
shelters
MUP
NP
NP
NP
NP
NP
MUP
NP
NP
SECTION 5: Arroyo Grande Municipal Code Section 16.52.091 is hereby added:
16.52.091 – Emergency shelters.
A. Purpose and Intent. It is the purpose of this section to facilitate and encourage
the provision of emergency shelters for homeless persons and households by
allowing permanent year-round emergency shelters without a conditional use
permit or other discretionary action in the Industrial Mixed Use (IMU) and Highway
Mixed Use (HMU) zoning districts, subject only to the same development
standards that apply to other permitted uses in these zones, except for the
following requirements unique to emergency shelters, as authorized by
Government Code Section 65583(a)(4).
B. Permit requirements.
1. Emergency shelter facilities shall comply with all federal and California
State licensing requirements.
2. Emergency shelter facilities shall comply with all applicable Uniform
Building Codes, Plumbing Codes and Fire Codes, including maximum
occupancy restrictions.
Item 10.b. - Page 23
ORDINANCE NO.
PAGE 5
C. Minimum site design and development standards. An emergency shelter is
subject to all property development standards of the zoning district in which it is
located except as modified by the following standards:
1. The maximum number of beds or persons to be served nightly by an
emergency shelter shall be thirty-four (34).
2. Off-street parking shall include one (1) vehicle parking space per three (3)
beds and one (1) space per employee on the largest shift. A covered and
secured area for bicycle parking shall be provided for use by staff and
clients, commensurate with demonstrated need, but no less than a
minimum of eight (8) bike parking spaces.
3. Exterior lighting shall be provided for security purposes. The lighting shall
be stationary, directed away from adjacent properties and public right-of-
way, and of an intensity compatible with the neighborhood.
4. Security shall be provided for residents, visitors and employees during the
hours that the emergency shelter is in operation.
5. On-site management shall be provided. The agency or organization
operating the shelter shall comply with the following requirements:
a. Temporary shelters shall be available to residents for no more than six
(6) months within a twelve (12) month period. The days of stay need not
be consecutive.
b. Staff and services shall be provided to assist residents to obtain
permanent shelter and income.
c. The provider shall have a written management plan including, as
applicable, provisions for staff training, neighborhood outreach, security,
screening of residents to insure compatibility with services provided at
the facility, and for training, counseling and treatment programs for
residents.
6. Appropriately sized and located exterior and interior on-site waiting and
intake areas shall be provided.
7. Laundry facilities or services shall be provided that are adequate for the
number of residents.
8. Emergency shelter facilities shall provide a refuse storage area that is
completely enclosed with masonry walls not less than five (5) feet high with
a solid-gated opening that is large enough to accommodate standard-sized
trash and recycling bins, or other enclosures as approved by the Director of
Community Development. The refuse enclosure shall be accessible to
refuse collection vehicles.
9. The facility may provide one or more of the following specific common
facilities for the exclusive use of the residents and staff:
a. Central cooking and dining room(s).
b. Recreation room.
c. Counseling center.
d. Child care facilities.
e. Other supportive services.
10. Organized outdoor activities may only be conducted between the hours of
8:00 a.m. and 9:00 p.m. for noise abatement purposes.
Item 10.b. - Page 24
ORDINANCE NO.
PAGE 6
11. An emergency shelter shall not be located within three hundred (300) feet of
another emergency shelter, kindergarten through 12th grade curriculum
school, child care center, or park as measured from the closest property
line.
12. No individual or household shall be denied emergency shelter because of
an inability to pay.
SECTION 6: If any section, subsection, subdivision, paragraph, sentence, or clause of
this Ordinance or any part thereof is for any reason held to be unlawful, such decision
shall not affect the validity of the remaining portion of this Ordinance or any part thereof.
The City Council hereby declares that it would have passed each section, subsection,
subdivision, paragraph, sentence, or clause thereof, irrespective of the fact that any one
or more section, subsection, subdivision, paragraph, sentence, or clause be declared
unconstitutional.
SECTION 7: Upon adoption of this Ordinance, the City Clerk shall file a Notice of
Exemption pursuant to 14 CCR § 15062.
SECTION 8: A summary of this Ordinance shall be published in a newspaper published
and circulated in the City of Arroyo Grande at least five (5) 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
fifteen (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 11: This Ordinance shall take effect thirty (30) days from the date of
adoption.
Item 10.b. - Page 25
ORDINANCE NO.
PAGE 7
On motion of Council Member , seconded by Council Member , and
on the following roll call vote to wit:
AYES:
NOES:
ABSENT:
The foregoing Ordinance was adopted this ____ day of ________, 2016.
Item 10.b. - Page 26
ORDINANCE NO.
PAGE 8
________________________________
JIM HILL, MAYOR
ATTEST:
________________________________
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
_________________________________
DIANNE THOMPSON, CITY MANAGER
APPROVED AS TO FORM:
__________________________________
HEATHER K. WHITHAM, CITY ATTORNEY
Item 10.b. - Page 27
Item 10.b. - Page 28
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Item 10.b. - Page 32
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C ITY OF A RROYO G RANDE
HOUSING ELEMENT
June 30, 2014 – June 30, 2019
Public Review Draft
December 2015
Prepared by
Lisa Wise Consulting
983 Osos Street
San Luis Obispo, CA 93401
(805) 595-1345
www.lisawiseconsulting.com
ATTACHMENT 5
Item 10.b. - Page 67
City of Arroyo Grande 2014-2019 Housing Element
3
City Council
Jim Hill, Mayor
Barbara Harmon, Mayor Pro Tem
Jim Guthrie
Tim Brown
Kristen Barneich
Planning Commission
Lan George, Chair
John Keen, Vice Chair
Glenn Martin
John Mack
Terry Fowler-Payne
Department of Community Development
Planning Division
Teresa McClish, Community Development Director
Kelly Heffernon, Associate Planner
Matt Downing, Associate Planner
Item 10.b. - Page 68
City of Arroyo Grande 2014-2019 Housing Element
4
TABLE OF CONTENTS
CHAPTER 1 – INTRODUCTION ...................................................................................................................... 9
1.1 PURPOSE ...................................................................................................................................................... 9
1.2 RELATIONSHIP TO CITY GENERAL PLAN ......................................................................................................... 10
General Plan Consistency ................................................................................................................................... 10
1.3 ORGANIZATION OF HOUSING ELEMENT ......................................................................................................... 11
1.4 PUBLIC PARTICIPATION ................................................................................................................................ 11
CHAPTER 2 – GOALS, POLICIES, PROGRAMS AND QUANTIFIED OBJECTIVES....................................... 11
2.1 HOUSING ELEMENT GOALS, POLICIES AND PROGRAMS ................................................................................. 11
Goal A –Housing for All Income Groups within the Community .................................................................. 12
Goal B – Affordable Housing .............................................................................................................................. 19
Goal C – Identify Funding for Extremely Low, Very Low, and Low-Income Housing ................................ 21
Goal D – Encourage Diverse Housing Stock .................................................................................................... 23
Goal E – Regulate Condominium Conversions ............................................................................................... 23
Goal F – Inclusionary Housing ............................................................................................................................. 24
Goal G – Mitigate Governmental Constraints ................................................................................................. 26
Goal H – Housing Conservation and Rehabilitation ....................................................................................... 28
Goal I – At Risk Unit Preservation ........................................................................................................................ 29
Goal J – Special Needs Housing ........................................................................................................................ 31
Goal K – Housing for the Homeless .................................................................................................................... 33
Goal L – Housing for Persons with Disabilities ................................................................................................... 36
Goal M – Energy Conservation .......................................................................................................................... 38
Goal N – Equal Opportunity and Fair Housing ................................................................................................. 39
Goal O – Public Participation ............................................................................................................................ 40
Goal P - Housing Element Consistency ............................................................................................................ 41
2.2 SUMMARY OF QUANTIFIED OBJECTIVES ........................................................................................................ 43
CHAPTER 3 – BACKGROUND INFORMATION ........................................................................................... 44
3.1 INTRODUCTION ............................................................................................................................................ 44
3.2 DEMOGRAPHIC OVERVIEW ......................................................................................................................... 47
Population Trends ................................................................................................................................................. 47
Household Data .................................................................................................................................................... 49
Incomes .................................................................................................................................................................. 50
Employment ........................................................................................................................................................... 51
3.3 HOUSING CHARACTERISTICS ........................................................................................................................ 53
Types of Housing ................................................................................................................................................... 53
Vacancy Rates ...................................................................................................................................................... 53
Overcrowded Units ............................................................................................................................................... 55
Age of Housing Units............................................................................................................................................. 55
Condition of Units .................................................................................................................................................. 56
3.4 HOUSING AFFORDABILITY ............................................................................................................................. 57
Housing Prices ........................................................................................................................................................ 57
Rental Unit Rates ................................................................................................................................................... 58
Affordability Thresholds ........................................................................................................................................ 59
Overpayment ........................................................................................................................................................ 60
Long-Term Affordability ........................................................................................................................................ 60
3.5 SPECIAL HOUSING NEEDS GROUPS .............................................................................................................. 61
Elderly/Senior Households .................................................................................................................................... 61
Families with Female Heads of Households ..................................................................................................... 62
Large Families/Households .................................................................................................................................. 62
Low and Extremely Low-Income Households .................................................................................................. 63
Farmworker Households ....................................................................................................................................... 64
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City of Arroyo Grande 2014-2019 Housing Element
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Persons with Disabilities ........................................................................................................................................ 65
Homeless ................................................................................................................................................................ 68
Attainable Housing ............................................................................................................................................... 68
3.6 AT RISK HOUSING UNITS ............................................................................................................................... 69
CHAPTER 4 - HOUSING RESOURCES ......................................................................................................... 71
4.1 REGIONAL HOUSING NEEDS DETERMINATIONS .............................................................................................. 71
4.2 2014-2019 REGIONAL HOUSING NEEDS ALLOCATION ................................................................................. 72
4.3 LAND AVAILABILITY ...................................................................................................................................... 75
Vacant Land .......................................................................................................................................................... 77
Second Units .......................................................................................................................................................... 77
Underutilized Sites ................................................................................................................................................. 77
4.4 INFRASTRUCTURE RESOURCES ....................................................................................................................... 88
4.5 FINANCIAL RESOURCES ................................................................................................................................ 90
CHAPTER 5 HOUSING CONSTRAINTS ........................................................................................................ 95
5.1 GOVERNMENTAL CONSTRAINTS ................................................................................................................... 95
5.2 ENVIRONMENTAL CONSTRAINTS AND ENERGY CONSERVATION .................................................................... 115
Energy Conservation .......................................................................................................................................... 117
5.3 NON-GOVERNMENTAL CONSTRAINTS ........................................................................................................ 120
CHAPTER 6 REVIEW OF THE PREVIOUS HOUSING ELEMENT .................................................................. 123
6.1 EVALUATION OF 2007-2014 HOUSING ELEMENT PROGRAMS ...................................................................... 123
APPENDIX A ............................................................................................................................................. 137
BIBLIOGRAPHY ......................................................................................................................................... 137
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LIST OF TABLES
Table 2-1 Quantified Objectives By Income Group ................................................................................................... 43
Table 3-1 Trends In Population Growth ......................................................................................................................... 47
Table 3-2 Trends In Population Age ............................................................................................................................... 48
Table 3-3 Tenure By Age Of Householder ..................................................................................................................... 49
Table 3-5 Trends In Household Income ......................................................................................................................... 51
Table 3-6 Trends In Employed Persons 16 Years And Older ....................................................................................... 52
Table 3-7 Industry Profile .................................................................................................................................................. 52
Table 3-8 Trends In Housing Type.................................................................................................................................... 53
Table 3-9 Vacant Units By Type, 2010 ............................................................................................................................ 54
Table 3-10 Vacancy Rates .............................................................................................................................................. 54
Table 3-11 Overcrowding By Tenure.............................................................................................................................. 55
Table 3-12 Year Structure Built ........................................................................................................................................ 56
Table 3-13 Market Rental Rates By Unit Type ............................................................................................................... 58
Table 3-14 San Luis Obispo County Housing Affordability ......................................................................................... 59
Table 3-15 Households Overpaying For Housing ......................................................................................................... 60
Table 3-16 Senior Households ......................................................................................................................................... 62
Table 3-17 Housing Problems For Female Head Of Households ............................................................................... 62
Table 3-18 Tenure By Household Size ............................................................................................................................. 63
Table 3-19 Housing Problems For Lower Income Households ................................................................................... 63
Table 3-20 Persons With Disabilities By Age .................................................................................................................. 65
Table 3-20 Developmentally Disabled Persons ............................................................................................................ 67
Table 4-1 Income Group ................................................................................................................................................. 72
Table 4-2 Housing Need Allocation By Income Category ........................................................................................ 72
Table 4-3 Income Limits, County Of San Luis Obispo .................................................................................................. 73
Table 4-4 Approved Projects January 2014-June 2014 .............................................................................................. 74
Table 4-5 City Share Of Regional Housing Need 2014-2019 ...................................................................................... 75
Table 4-6 Remaining Rhna, 2014-2019 .................................................................. ERROR! BOOKMARK NOT DEFINED.
Table 4-7 Vacant Sites Inventory .................................................................................................................................... 80
Table 4-8 Opportunity Sites Inventory ............................................................................................................................ 82
Table 4-9 Approved Projects 2007-2014…………………………………………………………………………………. 86
Table 4-10 Current and Projected Water Supply……………………………………………………………………… 88
Table 5-1 Urban Land Use Element And Development Code .................................................................................. 97
Table 5-4 Residential Site Development Standards Single-Family Zones .............................................................. 100
Table 5-5 Residential Site Development Standards Multiple Family And Other Zones ....................................... 101
Table 5-6 Residential Site Development Standards Mixed Use Zones ................................................................... 101
Table 5-5 Second Residential Dwellings Development Standards ........................................................................ 107
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Table 5-6 Schedule Of Typical Fees For Residential Development ........................................................................ 108
Table 5-7 Proportion Of Fee In Overall Development Cost For A Typical Residential Development .............. 110
Table 5-8 Permit Processing Timeline ........................................................................................................................... 111
Table 5-9 Residential Parking Standards ..................................................................................................................... 112
Table 5-10 Constraints On Housing For Persons With Disabilities ............................................................................. 113
Table 5-11 Applications For Loans ............................................................................................................................... 121
Table 6-1 Progress Toward Meeting Goals 2007-2014 .............................................................................................. 123
LIST OF FIGURES
Figure 3-1 Regional Location Map ................................................................................................................................ 45
Figure 3-2 South County Location Map ........................................................................................................................ 46
Figure 3-3 Change in Population Age, 2000 to 2010 .................................................................................................. 49
Figure 3-4 Median Home Prices Trend, Arroyo Grande ............................................................................................. 58
Figure 4-1 Housing Opportunity Sites Inventory Map .................................................................................................. 87
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CHAPTER 1 – INTRODUCTION
1.1 Purpose
The purpose of the Housing Element is to identify and provide: a) An analysis of existing and
projected housing needs; b) an evaluation of housing constraints, c) a statement of goals,
policies, quantified objectives and financial resources; and d) scheduled programs for the
preservation, improvement, and development of housing. The State Legislature, in its adoption
of planning law, has set forth the following policies toward the provision of housing:
The availability of housing is of vital importance, and the early attainment of decent
housing and a suitable living environment for every Californian, including farm workers, is
a priority of the highest order.
The early attainment of this goal requires the cooperative participation of governmen t
and the private sector in an effort to expand housing opportunities and accommodate
the needs of Californians of all economic levels.
The provision of housing affordable to low and moderate-income households requires
the cooperation of all levels of government.
Local and State governments have a responsibility to use the powers vested in them to
facilitate the improvement and development of housing to make adequate provision for
the housing needs of all economic segments of the community.
The Legislature recognizes that in carrying out this responsibility, each local government
also has the responsibility to consider economic, environmental, and fiscal factors and
community goals set forth in the general plan and to cooperate with other local
governments and the State in addressing regional housing needs.
This document is intended to comply with Article 10.6 (as amended) of State Planning Law and
to meet the Department of Housing and Community Development (HCD) guidelines for the
implementation of Article 10.6. This document, upon adoption, will replace the Housing Element
adopted by the City of Arroyo Grande on October 22, 2013, deemed in compliance with state
law by the Department of Housing and Community Development (HCD) o n December 5, 2013.
The current planning period began June 30, 2014 and will last through June 30, 2019.
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This Housing Element includes all of the following information as required by State law:
Specific goals, policies, and measurable programs.
Information about the existing housing stock, covering such items as the amount, type,
cost, tenure, and structural conditions of the units. Other areas of concern include
overcrowding and the needs of special subgroups of the population.
An analysis of potential barriers to housing production, including both governmental and
non-governmental constraints.
Information about energy conservation opportunities for housing.
A summary of the past housing efforts and an analysis of their success or failure.
1.2 Relationship to City General Plan
Housing elements are one of seven elements of the General Plan that every California city and
county is required by State law to prepare. Under State law, a General Plan must function as an
integrated, internally consistent and compatible statement of values. The housing, land use and
circulation elements form the heart of a community strategy to promote orderly growth and
provide housing for all economic segments.
State law is more specific about the content of housing elements than any other portion of the
general plan. The housing element is also the only part of the general plan that is subject to
mandatory deadlines for periodic updates and is the only element that is legally subject to
review and “certification” by the State.
General Plan Consistency
The City’s Land Use Element of the 2001 General Plan designates the sites noted in this Housing
Element for residential purposes at densities consistent with the goals of providing housing
affordable to a wide range of incomes. The Housing Element has been reviewed for consistency
with the City’s General Plan and is consistent with the policy direction the in the Plan. As portions
of the General Plan are amended in the future, the Housing Element will be reviewed to ensure
internal consistency. Due to the passage of AB 162 relating to flood protection, the City may be
required to amend the Safety and Conservation Elements of the General Plan. If amendments
are needed the Housing Element will be amended to be consistent with the Safety and
Conservation Elements.
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1.3 Organization of Housing Element
As noted above, the intent of this Housing Element update is to meet the statutory requirements
of State housing law. Chapter 1 provides a brief overview of the laws and its relationship to the
General Plan. Chapter 2 is the heart of the document, setting forth all the goals, policies,
programs and objectives for housing in Arroyo Grande. Chapter 3 describes relevant
demographics concerning housing needs and issues in the City, while Chapter 4 discusses the
regional housing needs and provides an overview of the City’s land availability and public
services. Chapter 5 analyzes the constraints to housing development, and Chapter 6 reviews the
past housing efforts as proposed in the 2013 Housing Element.
1.4 Public Participation
Housing issues affect the entire community, including residents, employers, and the public and
private sectors. The public participation requirement of the housing element law presents an
opportunity to engage constituents in a discussion, defining overall housing needs and
constraints, as well as problems and the creation of solutions. The inclusion of community
stakeholders in the housing element public participation process helps ensure appropriate
housing strategies are more efficiently and effectively developed, implemented and evaluated.
[This section to be completed after Planning Commission and City Council consideration of the
Public Review Draft Housing Element].
CHAPTER 2 – GOALS, POLICIES, PROGRAMS AND QUANTIFIED
OBJECTIVES
2.1 Housing Element Goals, Policies and Programs
State law requires that the Housing Element contain a “statement of the community’s goals,
policies, programs and quantified objectives relative to the maintenance, improvement, and
development of housing”. This Chapter describes the proposed goals, policies, and programs of
the Housing Element for the City of Arroyo Grande.
Goals refer to general statements of purpose, and indicate a direction the City will take with
respect to the identified housing problems. Policies are statements of the City’s intent regarding
the various housing issues identified, and provide a link between the goals and the programs.
Programs are steps to be taken to implement the policies and achieve the quantified
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objectives. Quantified Objectives refer to the number of units that are expected or estimated to
be constructed, conserved or rehabilitated during the time frame of the Housing Element, June
2014 to June 2019 (not all programs have quantified objectives).
Goal A –Housing for All Income Groups within the Community
Provide a continuing supply of affordable housing to meet the needs of existing and
future Arroyo Grande residents in all income categories.
Policies:
A.1. The City shall adopt policies, programs, and procedures to attempt to meet the
present and future needs of residents of the City, and to aim at providing the ir fair
share regional housing need allocated for each income classification, within
identified governmental, market, economic and natural constraints.
A.2. The City shall continue to utilize the following incentives for the production of
affordable housing: a) allowing secondary dwelling units under specified criteria;
b) allowing manufactured housing on legal parcels in all residential zones; c)
allowing density bonuses for very low and low-income housing, and senior
housing projects.
A.3. The City shall give priority to processing housing projects that provide for
affordable housing, and lower development impact fees shall be charged as an
incentive for low, very low, and extremely low-income housing.
A.4 The City shall establish minimum residential densities that are no lower than 75
percent of the maximum densities allowed in each multi-family residential zone,
with exceptions made for properties with significant environmental constraints.
A.5. The City shall encourage housing compatible with commercial and office uses
and promote “mixed use” and “village core” zoning districts to facilitate
integration of residential uses into such areas.
A.6 Where circumstances warrant, the City will work with mobile home owners to
relocate mobile homes if the City seeks to modify a portion or all of a mobile
home park for economic development purposes.
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A.7. The City will continue to maintain a zoning district for mobile home and
manufactured home park uses.
A.8. The City may annex land on the urban edge to promote orderly growth and the
preservation of open space.
A.9. The City shall continue to enable and encourage multiple-family, rental
apartments, senior, mobile home, and special needs housing in appropriate
locations and densities. These multiple family residential alternative housing types
tend to be more affordable than prevailing single-family residential low and
medium density developments.
A.10. The City shall review and revise its development regulations, standards, and
procedures to encourage increased housing supply as needed.
A.11. The City shall continue to utilize and expand the Density Bonus program to
encourage affordable housing supply.
A.12. The City shall establish a system to inventory vacant and underutilized land.
A.13. The City shall pursue adequate water sources and conservation programs to
accommodate projected residential development.
A.14. The City shall promote infill housing opportunities through an attainable housing
program.
A.15. The City shall pursue program assistance for first-time home buyers.
Programs:
A.1-1. The City shall establish a five-year schedule of actions to implement the goals
and policies of the Housing Element.
Responsible agency/department: Community Development
Department
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Timeframe: Ongoing – implemented over the life
of the Housing Element
Funding: General Fund
Expected Outcome: Timeline for implementing the
programs outlined in the Housing
Element
Quantified Objective: n/a
A.1-2. The City shall report annually on its progress in meeting its fair share housing
targets, and provide the collected information to the Department of Housing
and Community Development (HCD), development community, and non-
profit housing developers. HCD provides specific instructions and a template
for the annual report.
Responsible agency/department: Community Development
Timeframe: Annually – due to HCD in April
Funding: General Fund
Expected Outcome: Annual assessment and reporting on
progress meeting Housing Element
housing targets and implementation
of programs
Quantified Objective: n/a
A.1-3. 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 of 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.
Responsible agency/department: Community Development
Timeframe: Within 1 year of Housing Element
adoption
Funding: General Fund
Expected Outcome: Development Code amendment
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Quantified Objective: 10 moderate-income units, 10 above
moderate-income units
A.2-1. The City shall continue to encourage and publicize on the City’s website the
secondary dwelling program to increase public awareness.
Responsible agency/department: Community Development
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Expected outcome is continued
consistent production of secondary
units as an affordable housing
alternative
Quantified Objective: 5 units/year during the planning
period. Total of 30 low-income units
for the planning period.
A.3-1. The City shall amend the Municipal Code to provide incentives for 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.
Responsible agency/department: Community Development
Timeframe: Within 2 years of Housing Element
Adoption
Funding: General Fund
Expected Outcome: Additional affordable units
Quantified Objective: 5 very low-income and 5 low-income
units
A.3-2. The City shall amend the Development Code to include the definition of
“Extremely Low-Income” as defined by Section 50093 of the California Health
and Safety Code.
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Responsible agency/department: Community Development
Timeframe: Within 1 year of Housing Element
adoption
Funding: General Fund
Expected Outcome: Development Code amendment
Quantified Objective: n/a
A.3-3. The City shall amend the Development Code to provide additional incentives
specific 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.
Responsible agency/department: City Manager/Administration and
Community Development
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Draft program or ordinance to
incentivize and/or streamline
permitting and procedures for
extremely low-income housing
developments
Quantified Objective: 2 extremely low-income units
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
AB 2280. 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) as well as evaluate proposed Development Code
amendments to assess whether they pose any constraints to developer
utilization of density bonuses.
Responsible agency/department: Community Development
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Timeframe: Amend Development Code
Chapter 16.82 to comply with AB
2280 – Within 1 year of Housing
Element adoption; Assess
Development Code Amendments -
Ongoing
Funding: General Fund
Expected Outcome: City-initiated Development Code
Amendments
Quantified Objective: n/a
A.10-2. The City shall evaluate and amend the Planned Unit Development (PUD)
Permit procedures in Development Code Section 16.16.060 to provide more
predictable options for small lot infill projects in the City’s Residential land use
designations.
Responsible agency/department: Community Development
Timeframe: Within 2 year of Housing Element
adoption
Funding: General Fund
Expected Outcome: Improve the requirements and
standards for the PUD process
Quantified Objective: 10 moderate and 10 above
moderate-income units
A.10-3. To encourage higher densities and reduce constraints to multi-family housing
production, the City shall amend the Development Code to allow densities
up to 20 du/ac in the Office Mixed Use (OMU) District for 100% multi-family
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.
Responsible agency/department: Community Development
Timeframe: Within 2 years of Housing Element
adoption
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Funding: General Fund
Expected Outcome: Remove barrier to construct
affordable housing
Quantified Objective: n/a
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”.
Responsible agency/department: Community Development
Timeframe: On going
Funding: General Fund
Expected Outcome: Maintain land availability inventory
Quantified Objective: n/a
A.14-1. The City shall amend the Development Code to include a definition of the
term “Attainable housing.”
Responsible agency/department: Community Development
Timeframe: Within 2 years of Housing Element
adoption
Funding: General Fund
Expected Outcome: Development Code amendment
Quantified Objective: n/a
A.15-1. The City shall establish a program to provide assistance to first-time home
buyers.
Responsible agency/department: Community Development
Timeframe: Within 2 years of Housing Element
adoption
Funding: General Fund; HCD Home
Investments Partnerships Program
(HOME)
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Expected Outcome: Development of a first-time home
buyers program
Quantified Objective: n/a
Goal B – Affordable Housing
Ensure that housing constructed in the City is affordable to all income levels.
Policies:
B.1. All residential projects that receive additional densities or other City incentives to
include affordable housing shall be placed into a City-approved program to
maintain the affordability for at least 45(owner-occupied) or 55 years (rental
units).Any sale or change of ownership of these affordable units prior to satisfying
the year restriction shall be “rolled over” for same amount of years to protect “at
risk” units. For rental housing, affordability shall be maintained th rough recorded
agreements between a property owner and the City, its Housing Authority, or
another housing provider approved by the City. For owner-occupied units, long-
term affordability can be maintained through property owner agreements to
maintain the designated unit as affordable for the specified period, utilizing a
promissory note and deed of trust recorded on the property.
B.2. The City shall continue monitoring affordable units to ensure ongoing compliance
with the sales limits or rental rates established by agreement between the City
and the developer. The City shall continue to take the necessary steps to assure
compliance with the regulatory agreement , including consideration of
contracting with a housing authority or joining a regional monitoring agency if
one is developed.
B.4. The City may establish parking districts, or off-site shared parking, and use of in-
lieu fees where appropriate to enable additional density.
B.5. Affordable housing shall not be concentrated into a condensed, identifiable
portion of a development or subdivision but rather dispersed throughout and
integrated into the development as determined acceptable considering site
constraints, size and design.
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B.6. The City shall continue to regulate the use of existing residences on residentially
zoned properties for vacation rentals.
Programs:
B.1-1. The City shall continue tracking all residential projects that include affordable
housing to ensure that the affordability is maintained for at least 45 years for
owner-occupied units and 55 years for rental units, and that any sale or
change of ownership of these affordable units prior to satisfying the 45 or 55-
year restriction shall be “rolled over” for another 45 or 55 years to protect “at-
risk” units.
Responsible agency/department: Community Development
Timeframe: Ongoing – at time of change of
ownership
Funding: General Fund
Expected Outcome: Program to monitor affordable
units
Quantified Objective: n/a
B.2-1. The City may contract with the Housing Authority of San Luis Obispo (HASLO),
local non-profit organizations, or a regional monitoring agency for the
monitoring of affordable units to ensure compliance with terms of the
development agreement.
Responsible agency/department: City Manager/Administration and
Community Development
Timeframe: Ongoing
Funding: Fees for service
Expected Outcome: Expected outcome is consistent
monitoring of affordable units.
Quantified Objective: n/a
B.6-1. The City shall monitor the loss of permanent workforce housing from vacation
rentals and consider modifying the Development Code to adjust for this loss.
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Responsible agency/department: Community Development
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Program to monitor vacation rentals
Quantified Objective: n/a
Goal C – Identify Funding for Extremely Low, Very Low, and Low-Income Housing
Research and identify various additional financial and other resources to provide
extremely low, very low, and low-income housing for current and future residents of the
City.
Policies:
C.1. The City shall establish criterion for allocating financial resources from its In-Lieu
Affordable Housing Fund to augment extremely, very low, and low-income
housing development.
C.2. The City shall consider issuance of bonds to finance extremely, very low, and low-
income housing.
C.3. The City shall pursue State and federal funds to finance extremely, very low, and
low-income housing.
C.4. The City shall consider cooperation with non-profit organizations and other
developers for loan and/or grant applications to provide extremely, very-low,
and low-income housing.
Programs:
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.
Responsible agency/department: City Manager/Community
Development
Timeframe: Ongoing
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Funding: Inclusionary Affordable Housing Trust
Fund/Other sources, as identified
Expected Outcome: Funding to finance affordable
housing
Quantified Objective: 3 extremely low, 3 very low, and 20
low-income units
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 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.
Responsible agency/department: Community Development
Timeframe: Semi-annually
Funding: General Fund
Expected Outcome: Increased awareness of the City’s
desire to provide affordable housing
and to accommodate affordable
housing
Quantified Objective: n/a
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.
Responsible agency/department: City staff person
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Leverage of financial resources to
augment development of
affordable housing
Quantified Objective: Loan(s) provided for 5 very low-
income units
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Goal D – Encourage Diverse Housing Stock
In order to provide affordable housing, especially for extremely, very-low and low-
income households, encourage apartment construction.
Policies:
D.1. The City shall relax parking standards for apartments containing extremely, very
low, low, and/or senior housing.
D.2. For the purposes of calculating density, fees and other development standards,
an apartment is defined as follows:
A dwelling unit equivalent equals two bedrooms, or more;
A one-bedroom equals 0.75 of unit and is defined as 850 square feet
or less;
A studio equals 0.5 of a unit and is defined as 600 square feet or less.
Programs:
D.1-1. The City shall encourage specific plans for land within its Sphere of Influence
that include increased residential capacity for multiple-family development.
Responsible agency/department: Community Development
Timeframe: On-going, as specific plans are
approved
Funding: General Fund
Expected Outcome: Possible increased land inventory to
support affordable housing
Goal E – Regulate Condominium Conversions
Regulate residential condominium conversions to protect the City’s supply of
apartments and to allow more moderately priced for-sale homes.
Policies:
E.1. Apartments can only be converted and sold as residential condominiums to
families earning State-defined very low, low or moderate-income levels, to the
extent allowed by law.
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E.2. The City shall set a limit on how many rental units can be converted annually.
E.3. To the extent provided by law, the property owner shall give the current residents
the first right of refusal to buy the units being converted, provid ed they meet the
income guidelines.
E.4. Residential condo conversion units shall remain affordable through a 45-year
deed restriction.
Programs:
E.4-1. When necessary, the City shall continue to work with property owners of deed
restricted affordable units who need to sell within 45 years of initial sale. When
the seller is unable to sell to an eligible buyer within a specified time period,
equity sharing provisions are established (as per the affordable housing
agreement for the property) whereby the difference between the affordable
and market value is paid to the City to eliminate any incentive to sell the
converted unit at market rate. Funds generated would then be used to
develop additional affordable housing within the City.
Responsible agency/department: Community Development
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Maintaining affordability of deed
restricted affordable units
Quantified Objective: n/a
Goal F – Inclusionary Housing
Strengthen the City’s inclusionary housing ordinance to require more affordable units in
both residential and commercial development projects.
Policies:
F.1. The City shall require housing projects greater than six units to meet inclusionary
housing requirements by 1)payment of in-lieu fee, 2)on-site construction of
affordable units, or 3)dedication of land. The City may require payment of an in-
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lieu fee for housing projects containing up to six units. An inclusionary unit is
defined as one that will meet the State’s standards for affordable housing.
F.2. An “affordable housing agreement” shall be required for projects subject to the
Inclusionary Affordable Housing Ordinance.
Programs:
F.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.
Potential changes to the requirements include: 1) consider contracting with a
housing management organization to manage deed-restricted affordable
units in the City; 2) consider adding incentives to encourage construction of
rental units; and 3) investigate extending the income categories served by
the inclusionary requirements to extremely low-income households. The City
will engage the development community during the evaluation process.
Responsible agency/department: Community Development
Timeframe: Within 4 years of Housing Element
adoption
Funding: General Fund
Expected Outcome: Amendments to the inclusionary
affordable housing requirements
Quantified Objective: 2 extremely low, 5 very low, 10 low,
and 15 moderate-income units
F.1-2. The City shall amend the inclusionary affordable housing requirements in the
Development Code (Chapter 16.80)to eliminate inclusion of moderate-
income units in the requirements.
Responsible agency/department: Community Development
Timeframe: Within 2 years of Housing Element
adoption
Funding: General Fund
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Expected Outcome: Amendments to the inclusionary
affordable housing requirements
Quantified Objective: n/a
F.1-3. The City shall amend the in-lieu fee as called for in the inclusionary affordable
housing requirements in the Development Code (Chapter 16.80).
Responsible agency/department: Community Development
Timeframe: Within 2 years of Housing Element
adoption
Funding: General Fund
Expected Outcome: Inclusionary In-lieu Fee
Quantified Objective: n/a
Goal G – Mitigate Governmental Constraints
Create clearer regulations and streamline the approval process for affordable housing
projects.
Policies:
G.1. The City shall review and periodically amend its Development Code and design
review regulations and procedures to streamline permit processing for affordable
housing projects and minimize application and development review costs.
G.2. The City shall consider preparing a master plan or design guidelines for the East
Grand Avenue Corridor with the goals of streamlining the development review
process and encouraging economic development.
Programs:
G.1-1. The City shall work with non-profit organizations to maintain a mailing list of
persons interested in development projects containing affordable housing.
Agendas for all City meetings related to these projects shall be mailed to
persons on the mailing list. The City shall also continue to post the agendas on
the City’s website.
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Responsible agency/department: Community Development
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Increased public awareness of
affordable housing projects.
Quantified Objective: n/a
G.1-2. The City shall encourage construction and/or rehabilitation of housing units for
low, very-low, and extremely low income households by developing and
implementing incentive-based programs such as fee reductions, fee waivers,
flexible development standards, updating the City’s second unit ordinance to
reduce barriers to second units development in residential zones, and similar
programs.
Responsible agency/department: Community Development
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Increased provision of affordable
housing
Quantified Objective: 2 extremely low, 2 very low, and 2
low-income units
G.1-3. The City shall amend the Development Code to allow development of up to
15 multiple-family attached units in the MF and MFA zoning districts with a
Minor Use Permit (MUP) subject to design review through the Architectural
Review Committee. Development of over 15 multiple-family attached units in
the MF and MFA zoning districts shall require a Conditional Use Permit (CUP).
Responsible agency/department: Community Development
Timeframe: Within 2 years of Housing Element
adoption
Funding: General Fund
Expected Outcome: Remove barrier to construct
affordable housing
Quantified Objective: n/a
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Goal H – Housing Conservation and Rehabilitation
Conserve and rehabilitate the City’s older stock, particularly to provide affordable
housing.
Policies:
H.1. The City shall encourage private and public financing of affordable housing
rehabilitation.
H.2. The City shall ensure zoning compatibility when integrating public affordable
housing projects into existing residential neighborhoods. All impacts relating to
neighborhood stability and quality of life issues shall also be considered.
Programs:
H.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.
Responsible agency/department: Community Development
Timeframe: Ongoing, when eligible
Funding: General Fund
Expected Outcome: Continued affordable housing.
Quantified Objective: n/a
H.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 as per the City’s Affordable Housing Program.
Responsible agency/department: Community Development
Timeframe: Within 2 years of Housing Element
adoption
Funding: General Fund
Expected Outcome: Conservation and rehabilitation of
existing housing stock
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Quantified Objective: 5 low-income housing units
H.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. Where necessary and feasible, extremely low, very low and low-
income residents displaced by abatement action shall be eligible for
relocation assistance, subject to Council approval.
Responsible agency/department: Community Development
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Conservation of existing housing
stock
Quantified Objective: n/a
Goal I – At Risk Unit Preservation
Preservation of at-risk units in Arroyo Grande
Policies:
I.1. The City shall establish a notification procedure to occupants of affordable
housing units of conversion to market rate units.
I.2. The City shall assist in the preservation of affordable units at risk of conversion to
market rate.
Programs:
I.1-1. Written notice shall be required prior to the conversion of any units for low-
income households to market rate units in any of the following circumstances:
The units were constructed with the aid of government funding
The units were required by an inclusionary zoning ordinance
The project was granted a density bonus
The project received other incentives
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The property owner should work with the City and affordable housing
developers, such as HASLO, to identify qualified buyers and/or funding prior to
conversion. In cases where conversions occur, notice shall at a minimum be
given to the following:
The City of Arroyo Grande
State Department of Housing and Community Development
San Luis Obispo Housing Authority
Residents of at-risk units
Responsible agency/department: Community Development
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Preservation of existing affordable
units
Quantified Objective: n/a
I.2-1. The City shall annually monitor the status of affordable housing developments.
If any property owners indicate plans to convert affordable units to market
rate pricing, or if the City identifies market conditions indicating potential for
“at risk” unit conversion, the City will contact qualified non -profit organizations
or other agencies and explore opportunities to assist and facilitate the transfer
ownership of “at risk” units.
Responsible agency/department: Community Development
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Preservation of existing affordable
units
Quantified Objective: n/a
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Special Needs
Goal J – Special Needs Housing
Meet the housing needs of special groups of Arroyo Grande residents, including seniors,
persons with disabilities, persons with developmental disabilities, single parents, large
families, and farmworkers.
Policies:
J.1. The City shall encourage and shall seek funding to assist in the development of
low and moderate-income senior rentals.
J.2. The City shall permit larger group housing for seniors in appropriate multiple-family
or mixed-use locations, subject to discretionary review.
J.3. The City shall continue to allow small-scale group housing (less than seven
persons) in multiple-family residential districts, in accordance with applicable
State laws.
J.4. The City shall encourage multiple-family housing projects that include a portion of
the units with three or more bedrooms to accommodate larger families.
J.5. The development of housing for farmworkers shall be encouraged.
J.6. Co-housing and similar unconventional housing arrangements shall be
considered in appropriate locations subject to review and approval on a case-
by-case basis.
Programs:
J.1-1. The City shall continue to promote housing opportunities for seniors and other
special needs groups by identifying sites suitable for senior and transitional
housing and considering other incentives to promote senior and transitional
housing. Single-room occupancy units (SROs) shall be added to the use tables
in the Development Code as allowed in all Mixed-Use zones with a
conditional use permit. SROs shall be allowed in the MFVH zone district with a
minor use permit.
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Responsible agency/department: Community Development
Timeframe: Identifying sites - Ongoing;
Development Code Amendments –
Within 1 year of Housing Element
adoption
Funding: General Fund
Expected Outcome: Increased housing opportunities for
seniors and other special needs
groups
Quantified Objective: 5 extremely low and 10 very low-
income units
J.5-1. To encourage farmworker housing, the City will amend the zoning ordinance
to identify farmworker housing as a residential use in the use tables. The City
Zoning Ordinance will be amended to ensure that permit processing
procedures for farmworker housing do not conflict with Health and Safety
Code Sections 17021.5, which states that farmworker housing for six or fewer
employees should be “deemed a single-family structure with a residential
land use designation”, and 17021.6 which states that for "employee housing
consisting of no more than 36 beds in a group quarters or 12 units or spaces
designed for use by a single family or household...no conditional use permit,
zoning variance, or other zoning clearance shall be required of employee
housing of this employee housing that is not required of any other agricultural
activity in the same zone”.
Responsible agency/department: Community Development
Timeframe: Within 1 year of Housing Element
adoption
Funding: General Fund
Expected Outcome: Increased housing opportunities for
farmworkers
Quantified Objective: 5 very low-income units
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The Homeless
Goal K– Housing for the Homeless
Reduce or minimize the incidence of homeless in the community.
Policies:
K.1. The City shall consider joint powers development and cooperation agreements
to develop homeless shelters and related services, or participate in the operations
and maintenance of countywide or south county regional homeless shelter
facilities.
K.2. The City shall allow emergency shelters for overnight lodging in appropriate
zoning districts as part of the Development Code Update in compliance with
State law.
Programs:
K.1-1. The City shall continue to participate in the South San Luis Obispo County
working group cooperating with other cities, the county and other agencies
in the development of programs aimed at providing homeless shelters and
related services.
Responsible agency/department: Community Development/City
Manager
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Continued cooperation in providing
homeless shelter and services
Quantified Objective: n/a
K.2-1. The City shall amend the Development Code to allow emergency shelters
without a conditional use permit or other discretionary permits in appropriate
locations in compliance with SB 2, the “Fair Share Zoning” law. The
Development Code amendment shall include a definition for “emergency
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shelter.” Emergency shelters are currently not allowed in commercial mixed
use districts, and are allowed through the Conditional Use Permit process in
the Condominium/Townhouse (MF), Apartments (MFA) and Multifamily Very
High Density (MFVH) residential districts. The Development Code shall be
updated to permit emergency shelters by right in at least one zone or site.
Potential zones include the Industrial Mixed-Use (IMU) and Highway Mixed-Use
(HMU) districts. These commercial districts have sufficient capacity to house
emergency shelters with approximately 18 acres of vacant or underutilized
land available. The IMU district has several large parcels totaling almost 13.5
acres with ten (10) acres that are currently used as storage and/or
construction yards with small or no permanent structures. The HMU district has
less potential, although there are about four acres with a couple of large
vacant parcels totaling 1.64 acres.
The Development Code can include locational and operational criteria for
emergency shelters such as:
• Proximity of public transit, supportive services, and commercial
services;
• Hours of operation;
• External lighting and noise;
• Provision of security measures for the proper operation and
management of a proposed facility;
• Measures to avoid queues of individuals outside proposed facility; and
• Compliance with county and State health and safety requirements for
food, medical, another supportive services provided onsite.
Such criteria can act to encourage and facilitate emergency shelters and
transitional housing through clear and unambiguous guidelines for the
application review process, the basis for approval, and the terms and
conditions of approval.
The City will solicit input from local service providers and the South San Luis
Obispo County working group in the preparation and adoption of the
amendment to the Development Code to ensure that development
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standards and permit processing will not impede the approval and/or
development of emergency shelters.
Responsible agency/department: Community Development
Timeframe: Concurrently with Housing Element
adoption (per Government
Code Section 65583(a)(4))
Funding: General Fund
Expected Outcome: Expected outcome is compliance
with SB 2 regarding emergency
shelters.
Quantified Objective: n/a
K.2-2. [new] The City shall amend the Development Code to define transitional and supportive
housing as residential uses per Section 65582 of the Government Code subject to the
same standards that apply to other housing in the same zone.
Responsible agency/department: Community Development
Timeframe: Within 1 year of Housing Element
adoption
Funding: General Fund
Expected Outcome: Expected outcome is compliance
with Housing Element law regarding
transitional and supportive housing.
Quantified Objective: n/a
K.2-3. The City may consider implementing an overnight parking program, or similar program
to, for the homeless in appropriate zoning districts.
Responsible agency/department: Community Development
Timeframe: Within 1 year of Housing Element
adoption
Funding: General Fund
Expected Outcome: Provide approved parking locations
for the homeless to sleep
Quantified Objective: n/a
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Disabled Persons
Goal L– Housing for Persons with Disabilities
Ensure that those residents with handicaps or disabilities have adequate access to
housing.
Policies:
L.1. The City shall encourage housing development that meets the special needs of
disabled persons, including developmentally disabled individuals, and ensure
that all new multiple family developments comply with the handicapped
provisions of the California Building Code and ADA.
L.2. The City shall ensure, through the design review process for multiple housing
projects, that project design, parking locations, pedestrian walkways, and direct
access to the housing units accommodates handicapped or disabled access.
Programs:
L.1-1 The City shall explore models to encourage the creation of housing for persons
with disabilities, including developmental disabilities. Such models could include
coordinating with the Tri-County Regional Center and other local agencies in
encouraging affordable housing projects to dedicate a percent of housing for
disabled individuals; assisting in housing development; providing housing services
that educate, advocate, inform, and assist people to locate and maintain
housing; and models to assist in the maintenance and repair of housing for
persons with developmental disabilities.
Responsible agency/department: Building Department/Community
Development
Timeframe: Establish a model program within 2
years of Housing Element adoption
Funding: General Fund
Expected Outcome: Increased access to housing and
housing resources for disabled
persons; including information and
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services available for
developmentally disabled persons
Quantified Objective: 5 low income units
L.2-1. The City shall create a policy or amend the Development Code to provide
persons with disabilities seeking equal access to housing an opportunity to
request reasonable accommodation in the application of City building and
zoning laws.
Responsible agency/department: Building Department/Community
Development
Timeframe: Within 1 year of Housing Element
adoption
Funding: General Fund
Expected Outcome: Greater accessibility for disabled
persons accommodated through
the design review process for
discretionary residential projects
Quantified Objective: n/a
L.2-2. The City will have brochures on universal design available at the Community
Development Department front counter. The City will also consider updating
the building code to encourage use of universal design in home design.
Universal design is based on the precept that throughout life, all people
experience changes in their abilities. The goal of universal design is to provide
environments that are usable by all people, to the greatest extent possible,
without the need for specialization in design and construction and /or
facilitate change in occupancy over time.
Responsible agency/department: Community Development
Timeframe: Develop brochure(s) - within 1 year
of Housing Element adoption
Funding: General Fund
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Expected Outcome: Greater accessibility for disabled
persons accommodated through
project design
Quantified Objective: n/a
Energy Conservation
Goal M– Energy Conservation
Increase the efficiency of energy use in new and existing homes, with a concurrent
reduction in housing costs to Arroyo Grande residents.
Policies:
M.1. All new dwelling units shall be required to meet current State and local
requirements for energy efficiency. The retrofitting of existing units shall be
encouraged.
M.2. New land use patterns shall encourage energy efficiency.
M.3. When feasible, buildings shall be sited on a north-south axis and designed to take
advantage of passive solar heating and cooling.
Programs:
M.1-1. The City shall continue working to implement a water and electrical retrofit
program for existing housing units. A plumbing retrofit program was
established in 2004, and water conservation rebate programs were
established in 2009. The City will continue to work with PG&E and other
agencies to establish an electrical retrofit program.
Responsible agency/department: Building Department
Timeframe: Ongoing
Funding: General Fund/PG&E
Expected Outcome: Reduce usage of water and
electrical resources
Quantified Objective: n/a
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M.1-2. Consistent with Measure E-4 of the City’s Climate Action Plan, the City shall
establish a program to allow residential projects to receive minor exceptions if
they meet 25% of items on the Tier 1 list of the California Green Building Code
(Title 24) or 15% of items on the Tier 2 list of that code.
Responsible agency/department: Building Department
Timeframe: Establish program within 1 year of
Housing Element adoption
Funding: General Fund
Expected Outcome: Encourage energy efficiency in new
residential buildings
Quantified Objective: n/a
Equal Opportunity
Goal N– Equal Opportunity and Fair Housing
Assure access to sound, affordable housing for all persons, regardless of race, religion,
age or sex.
Policies:
N.1. The City declares that all persons, regardless of race, religion, age, or sex, shall
have equal access to sound and affordable housing.
Programs:
N.1-1. The City will continue to promote the enforcement of policies of the State Fair
Employment and Housing Commission, and shall resolve housing
discrimination complaints through assistance from HUD, and/or local, regional
private fair housing organizations. The City will develop a fair housing program
to implement San Luis Obispo County’s Urban County Team’s fair housing
program, “Fair Housing Analysis of Impediments” and prepare a brochure
that promotes equal housing opportunities and addresses discrimination. The
brochure will be available at the Community Development Department and
a link to download the brochure will be placed on the City’s website. In
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addition the City shall disseminate information in one or more of the following
ways to ensure the public is aware of Fair Housing Law:
Distribute materials to property owners and apartment managers twice a
year.
Make public service announcements through multiple media outlets
including newspaper, radio, television, and social media to run on a
regular basis.
Conduct public presentations with different community groups once or
twice a year.
Responsible agency/department: All City Departments
Timeframe: Ongoing
Brochure available within one year
of housing element adoption,
strategy to implement Urban County
Team fair housing program within
one year of County Fair Housing Plan
adoption.
Funding: General Fund
Expected Outcome: Dissemination of information at the
front counter of all City Departments.
Quantified Objective: n/a
Housing Element Implementation
Goal O– Public Participation
Ensure participation of all economic segments of the community in the development of
housing policy for Arroyo Grande.
Policies:
O.1. The City shall encourage the participation of all residents of Arroyo Grande in the
development of housing policies for the City.
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O.2. The City shall provide a brief summary of key information about housing-related
issues to help ensure widespread notice to all residents.
Programs:
O.1-1. Prior to any public hearing where the City is considering amending or
updating its Housing Element or housing policies, the City will notify all local
housing organizations, as well as social service agencies, and post notices at
significant locations.
Responsible agency/department: Community Development
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Provide information about housing
programs
Quantified Objectives: n/a
Goal P- Housing Element Consistency
Reduce governmental and infrastructure constraints to the improvement and
development of housing for people of all income levels.
Policy:
P.1. Update the Development Code and General Plan to maintain consistency and
compatibility between the documents.
Program:
P.1-1. Following amendment of the General Plan Conservation and Safety Elements to
comply with AB 162 related to floodplain mapping, the City will amend the
Housing Element if needed for consistency.
Responsible agency/department: Community Development
Timeframe: Within 1 year of updates of the
General Plan Conservation and
Safety Elements
Funding: General Fund
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Expected Outcome: Consistency between General Plan
elements related to floodplain
mapping and associated
constraints.
Quantified Objectives: n/a
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2.2 Summary of Quantified Objectives
Quantified objectives estimate the number of units that are planned to be constructed,
rehabilitated, and conserved over the planning period. This information is presented in Table 2-1
below.
Table 2-1 Quantified Objectives by Income Group
Housing Program
Quantified Objectives by Income Group
Total Extremely
Low-
Income
Very Low-
Income
Low-
Income
Moderate-
Income
Above
Moderate-
Income
Housing Production
Program A.1-3. 0 0 0 10 10 20
Program A.2-1. 0 0 30 0 0 30
Program A.3-1. 0 5 5 0 0 10
Program A.3-3. 2 0 0 0 0 2
Program A.10-2. 0 0 0 10 10 20
Program C.1-1. 3 3 20 0 0 26
Program C.4-2. 0 5 0 0 0 5
Program F.1-1. 2 5 10 10 0 27
Program G.1-2. 2 2 2 0 0 6
Program H.1-2. 0 5 0 0 0 5
Program J.1-1. 5 10 0 0 0 15
Program J.5-1. 0 5 0 0 0 5
Program L.1-1. 0 5 0 0 0 5
Totals 14 45 67 30 20 176
Source: City of Arroyo Grande and Lisa Wise Consulting
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CHAPTER 3 – BACKGROUND INFORMATION
3.1 Introduction
The City of Arroyo Grande occupies 5.45 square miles (3,388 acres) of land along Highway 101 in
southwestern San Luis Obispo County, as shown on Figure 3-1. It is immediately adjacent to the
west, southwest and south to urban development within the cities of Pismo Beach and Grover
Beach, and the unincorporated community of Oceano, as shown on Figure 3-2. Unincorporated
lands adjoin the City to the north, east and south. Residential rural and suburban developments
characterize unincorporated areas to the north and southeast of the City, while agricultural uses
dominate the Arroyo Grande Valley to the northeast and the Cienega Valley south of the City.
Arroyo Grande Creek runs in a generally north-south direction through the eastern portion of the
City. This chapter presents and analyzes demographic, population, and housing characteristics
that are crucial to understanding the local housing market to accommodate for different
housing types for all income levels.
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Figure 3-1 Regional Location Map
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Figure 3-2 South County Location Map
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3.2 Demographic Overview
This Section provides information on population trends (population growth, ethnicity, age, and
sex), household data (size, tenure, and type of household), income, and employment.
Population Trends
Population Growth. The City of Arroyo Grande’s population has grown from 3,291 in 1960 to
17,252 in 20101. Population growth during the 1960’s occurred rapidly, some years exceeding 12
percent. In the 1970’s, growth slowed to an average of seven percent over the decade, falling
still further in the 1980’s to less than two percent from 1980 to 1990. According to the Census,
Arroyo Grande grew 10.2 percent between 1990 and 2000 and 8.8 percent between 2000 and
2010. Current estimates by the San Luis Obispo Council of Governments (SLOCOG) in their 2040
Regional Growth Forecast (2011) project the City’s population to be approximately 20,234
residents by 2040, based upon a compound annual growth rate of 0.57 percent.
Table 3-1 compares population growth in Arroyo Grande from 2000 to 2010 to Pismo Beach,
Grover Beach, the County of San Luis Obispo, and the State of California. This table indicates
that the growth that occurred in Arroyo Grande from 2000 to 2010 was higher than the
surrounding communities, but less than the State and County growth.
Table 3-1 Trends in Population Growth
2000 2010
Number Change
from 1990
Number Change
from 2000
Arroyo Grande 15,851 10.2% 17,252 8.8%
Grover Beach 13,067 12.1% 13,156 0.7%
Pismo Beach 8,551 11.5% 7,655 -10.5%
SLO County 246,681 13.6% 269,637 9.3%
California 33,871,648 13.8% 37,253,956 10.0%
Source: U.S. Census 2000 and 2010
Ethnic Composition. According to the 2010 Census, Arroyo Grande’s population is 15.7 percent
Hispanic and 84.3 percent non-Hispanic. Of the non-Hispanic portion, white alone makes up 76.9
percent, with the remaining population being African American, American Indian, and Asian, or
Pacific Islander.
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Age and Sex Distribution. Table 3-2 shows that in 2010,28 percent of the population of Arroyo
Grande was age 24 years and under, 36 percent of the population between 25 and 54 years,
and 35 percent was 55 years or older. The highest percentage in one age category, 20 percent,
is in the 65 and older age range, followed by the under 15 age range (17 %).The median age in
years is 45. These statistics reflect an older population than the State as a whole, with a higher
percentage of those considered seniors (55 or over). However, this is similar to trends in San Luis
Obispo County, with the senior population increasing more rapidly than other age groups. The
ratio of male to female in the total population for Arroyo Grande is 48 percent male to 52
percent female.
Table 3-2 Trends in Population Age
2000 2010
Age Group
Number of
Persons
Percent of
Total
Number of
Persons
Percent of
Total
Percent
Change
<15 3,067 19% 2,933 17% -4%
15-24 1,685 11% 1,893 11% 12%
25-34 1,513 10% 1,755 10% 16%
35-44 2,468 16% 1,949 11% -21%
45-54 2,370 15% 2,657 15% 12%
55-64 1,526 10% 2,572 15% 69%
65+ 3,222 20% 3,493 20% 8%
Total 15,851 100% 17,252 100% 100%
Source: U.S. Census 2000 and 2010
Between 2000 and 2010 there was a significant increase in the 55 to 64 age range and a large
decrease in the 35 to 44 age range, while all other age ranges remained similar. These trends
can be seen in Figure 3-3.
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Figure 3-3 Change in Population Age, 2000 to 2010
Source: U.S. Census 2000 and 2010
Household Data
Household Size. According to the 2010 Census the average household size in Arroyo Grande is
2.41, with owner-occupied units averaging 2.42 persons per household and renter-occupied
units averaging 2.39 persons per household. The City’s average household size did not change
from 2000 to 2010. For comparison purposes, the City’s average household size in 1990 was 2.48.
As of 2010, the State of California has a larger household size of 2.90 persons per household, as
do the unincorporated areas of the County, which have an average household size of 2.48
persons per household.
Tenure by Age of Householder. Table 3-3 shows the occupancy of housing units by age of the
householder. Overall, two-thirds of households are owner-occupied, and one-third rent. The 35
to 65 age range is the largest category in both rental and owner-occupied housing units. For
householders less than 35 years old, more householders rent than own. The opposite is true for
householders over 65 years old.
Table 3-3 Tenure By Age of Householder
Owner-Occupied Renter-Occupied Totals
Number Percent Number Percent Number Percent
Householders <35 226 5% 658 27% 884 12%
Householders 35-65 2,664 57% 1,250 52% 3,914 55%
Householders 65+ yrs 1,796 38% 493 21% 2,289 33%
Totals 4,686 66% 2,401 34% 7,087 100%
Source: U.S. Census 2010
0%
5%
10%
15%
20%
25%
<15 15-24 25-34 35-44 45-54 55-64 65+
2000
2010
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Households by Type. According to the 2010 Census, 66 percent of Arroyo Grande’s population
lived in family households, a 7.33 percent increase from the year 2000. The remaining 34 percent
of households in 2010 were classified as non-family households, 81 percent of which were single
persons living alone. Single parent family households, including both male and female head of
households, also significantly increased between 2000 and 2010 by 17.62 percent.
Table 3-4 Trends in Households
2000 2010 Percent
Change in
Households
Number Percent Number Percent
Average Household Size 2.41 2.41
Household Types
Family Households 4,350 67% 4,669 66% 7.33%
Married 3,561 82% 3,741 80% 5.05%
Married w/children 1,423 40% 1,355 36% -4.78%
Single Parent household 789 18% 928 20% 17.62%
Non-Family Households 2,128 33% 2,418 34% 13.63%
Single Households 1,766 83% 1,968 81% 11.44%
Total 6,478 100% 7,087 100% 9.40%
Source: U.S. Census 2000 and 2010
Incomes
According to 2010 Census data, the median income for Arroyo Grande households was $58,725.
This is compared to the 2000 median household income ($48,237) in Table 3-5. The median
income for the households for the State as a whole in 2010 was $60,883. The per capita income
for Arroyo Grande in 2010 was $32,617, compared to $24,311 in 2000. The per capita income for
2010 for the State as a whole was $29,188. Table 3-5 shows income ranges and the number of
households in each range. The largest category in Arroyo Grande in 2000 was the $50,000 to
$74,999 range (22%).The largest category in 2010 was the $100,000 or more range (25%).
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Table 3-5 Trends in Household Income
2000 2010
Households Percent Households Percent
Percent Change
in # of
Households
Less than $10,000 507 8% 258 4% -49.1%
$10,000 to $14,999 338 5% 407 6% 20.4%
$15,000 to $24,999 693 11% 570 8% -17.7%
$25,000 to $34,999 798 12% 713 10% -10.7%
$35,000 to $49,999 1,030 16% 1026 15% -0.4%
$50,000 to $74,999 1,464 22% 1334 19% -8.9%
$75,000 to $99,999 698 11% 996 14% 42.7%
$100,000 or more 950 15% 1747 25% 83.9%
Total Households 6,478 100% 7051 100%
Median Income (All
Households) $48,236 -- $58,725 --
Source: U.S. Census 2000 and 2010
Another method to evaluate income is to determine levels of poverty in a community.
According to the 2000 Census, 191 families or 4.3 percent in Arroyo Grande were considered
below the poverty level. According to 2010 Census data, 212 families or 4.6 percent were
considered to be below the poverty level.
Employment
Table 3-6 provides a breakdown of the employed population 16 years and older by occupation
for Census years 2000 and 2010. In 2010, the largest percentage category is that of
management, professional, and related occupations (43%), which showed the largest increase
since 2000. The second largest category in 2010 is that of sales and office occupations (26%),
although there was a decrease in overall number of jobs during the same period..Between 2000
and 2010 there was also a decrease in farming, fishing, and forestry occupations and production
and moving categories.
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Table 3-6 Trends in Employed persons 16 years and older
Occupation
2000 2010
Number Percent Number Percent
Management, professional, and related occupations 2,691 38% 3,460 43%
Sales and office occupations 2,130 30% 2,089 26%
Service Occupations 1,115 16% 1,603 20%
Construction, extraction, and maintenance occupations 612 9% 475 6%
Production, transportation, and material moving
occupations 599 8% 424 5%
Farming, fishing, and forestry occupations 34 1% 0 0
Total 7,181 100% 8,051 100%
Source: U.S. Census, 2000 and 2010
Using U.S. Census 2010 data, Table 3-7 shows the number of jobs within the City by industry
category. The City’s largest industry is the educational services and health care sector consisting
of 1,970 jobs, or 24 percent. Following that is the retail sector supplying 19 percent of the jobs in
the City.
Table 3-7 Industry Profile
Jobs Percent
Educational services, and health care and social assistance 1,970 24.5%
Retail trade 956 11.9%
Professional, scientific, and management, and administrative and waste
management services 928
11.5%
Arts, entertainment, and recreation, and accommodation and food services 763 9.5%
Public administration 673 8.4%
Construction 537 6.7%
Finance and insurance, and real estate and rental and leasing 510 6.3%
Other services, except public administration 444 5.5%
Manufacturing 361 4.5%
Transportation and warehousing, and utilities 351 4.4%
Wholesale trade 218 2.7%
Information 176 2.2%
Agriculture, forestry, fishing, and hunting, and mining 164 2.0%
Total 8,051 --
Source: U.S. Census 2010
Another issue related to employment and residency is the matter of commuting to work. Census
data indicates that of the 8,051 employed persons 16 years and over, 6,837 or 85 percent drove
to work. Only 37 or 0.4 percent utilized public transportation. The mean travel time to work was
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18.2 minutes. This would indicate that a majority of the City’s working residents are commuting to
jobs outside of Arroyo Grande.
3.3 Housing Characteristics
This Section provides information on types of housing, vacancy rates, overcrowding, age of units,
and housing conditions.
Types of Housing
Table 3-8 provides a breakdown of the total housing units by type of structure for 2000 and 2010.
In 2010, it was estimated that there were 7,769 housing units in the City, an increase of 963
housing units from 2000, which was a 29% increase in the number of housing units added from
1990 to 2000 (747 unit increase). As indicated, the vast majority of the units (76%) in Arroyo
Grande are single-family units. From 2007 to 2011, 268 dwelling units have been constructed or
approved.
Table 3-8 Trends in Housing Type
2000 2010
Number Percent Number Percent
Total Housing Units 6,806 100% 7,769 100%
Units in Structure
1-unit, detached 4,516 66% 5,296 68%
1-unit, attached 590 9% 639 8%
Multiple-Family 2-4 Units 493 7% 367 5%
Multiple-Family 5 + Units 654 10% 861 11%
Mobile home 544 8% 597 8%
Boat, RV, van, etc. 9 0.1% 9 0.1%
Source: U.S. Census 2000 and 2010
Vacancy Rates
The Census reported 541 vacant units, which is seven percent of the total housing units in the
City. The number of vacant units in the City nearly doubled from the 272 vacant units reported in
2000. As shown in Table 3-9, slightly less than half of the vacant units are for seasonal,
recreational or occasional use. Table 3-9 shows that 18 percent of the vacant units are for rent.
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Table 3-9 Vacant Units by Type, 2010
Number Percent
For rent 100 18%
For sale only 90 17%
Rented, not occupied 14 3%
Sold, not occupied 21 4%
For seasonal, recreational, or occasional use 226 42%
Other vacant 90 17%
Total Vacant Units 541 100%
Source: U.S. Census 2010
Vacancy rates are commonly used as an indicator of housing market activity in a given area.
The individual vacancy rate for a community theoretically measures the health of the local
housing market. The vacancy rate is a percentage of the total housing stock that is vacant
and/or available for sale or rent at any one time. Generally, a two percent vacancy rate in units
available for owner-occupancy and a six percent rate for rental units are considered desirable
to keep prices down and to ensure that units are available to new and relocating residents.
Vacancy rates for 2000 and 2010 are shown in Table 3-10. For Arroyo Grande, it was reported
that there was a 1.9 percent vacancy rate for owner-occupied units and a 4.0 percent vacancy
rate for rental units. In 2000 the vacancy rate was 0.8 percent for owner-occupied units and 2.9
percent vacancy rate for rental units. The 2010 vacancy rate for owner-occupied units is close to
the optimal rate described above. However, the vacancy rate for rental units is less than the
optimal rate and indicates a shortage of rental housing units in the City. However, this is not an
uncommon statistic in the south San Luis Obispo County area. Grover Beach has an overall total
unit vacancy rate of 11 percent and San Luis Obispo, seven percent, while Pismo Beach has an
extremely high overall vacancy rate of 31 percent.
Table 3-10 Vacancy Rates
2000 2010 Optimal Vacancy Rates
Owner-occupied 0.8% 1.9% 2.0%
Rental Units 2.9% 4.0% 6.0%
Overall Total Unit Vacancy 4.0% 7.0%
Source: U.S. Census 2000 and 2010
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Overcrowded Units
A common method of measuring overcrowding is to compare the number of persons to the
number of rooms in the unit. The Census defines an overcrowded household as one that has
more than 1.01 persons per room (not including kitchens and bathrooms), while units with more
than 1.5 persons per room are considered severely overcrowded. In Arroyo Grande, the data
collected from the 2010 Census shows that 2.1 percent of all occupied units were overcrowded.
As shown in Table 3-11 Census data indicates 41 units or 0.5 percent of the total occupied
housing units had been between 1.01 and 1.50 occupants per room, and 23 units or 0.3 percent
of all units were severely overcrowded at 1.51 occupants or more per room.
Table 3-11 Overcrowding by Tenure
Occupants
Per Room
Owner-Occupied Renter Occupied Total
Number of
Households Percent Number of
Households Percent Number of
Households Percent
1.00 or less 4,901 99.4% 2,086 98.5% 6,987 99.1%
1.01 – 1.50 20 0.4% 21 1.0% 41 0.6%
1.51 or more 12 0.2% 11 0.5% 23 0.3%
Total 4,933 100.0% 2,118 100.0% 7,051 100%
Source: U.S. Census 2010
The rate of overcrowding in the City is lower than San Luis Obispo County as a whole, which has
a 3.1 percent overcrowding rate (more than 1.01 persons per room), and less than half that of
the overcrowding rate for the State of California at 8.0 percent.
While the rate may in comparison be lower than many other communities, the incidence of
overcrowding should still be considered (64 units).The problem of overcrowding for large families
can be addressed by the construction of more affordable larger units. However, overcrowding
goes beyond family size to affordability issues. Even single individuals and small families may be
affected by overcrowding. Due to limited incomes and high housing costs and rents, they may
be forced to double up with extended family members or non-relatives in similar circumstances.
Overcrowding will be addressed by promotion and production of more affordable units in the
City and regional cooperation on housing issues.
Age of Housing Units
The age of housing is an important characteristic of its relative condition as older units tend to be
in greater need of repair. Many federal and State programs use age of housing to determine
potential housing rehabilitation needs. Typically, the useful life of major components of an
average quality housing structure ranges from 20 to 30 years for items such as roofing, plumbing,
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landscaping, paving and electrical. When a housing unit is over 30 years old, the replacement
or refurbishing of major components is an important factor in the ability of a community to
provide safe, decent and sanitary housing.
Table 3-12 provides a breakdown of the age of housing units in Arroyo Grande as of the year
2010. In reviewing this table, the largest percentage of the housing units was constructed
between 1970 and 1979 (25.4%), followed by units built from 1980 to 1989 (18.8%). This suggests
that 74 percent of the housing stock is 20 years or older, while 51 percent is 30 years or older. The
table indicates that 293 units were built prior to 1940. However, according to a survey of the
housing stock most of the City’s housing is in sound condition (see next section).
Condition of Units
One of the issues required by State housing element law for discussion and analysis is the
condition of the community’s housing stock. The purpose for this is to provide a basis for
determining which units are in need of rehabilitation and which units may be beyond feasible
repair and determined to be in need of demolition and replacement. One of the guidelines set
by the State is that units constructed before 1960 may be eligible for repair and/or rehabilitation
to keep those units in the existing housing stock. In order to maintain the historical nature of the
community, many older communities like Arroyo Grande have already repaired and/or
rehabilitated many of their older units.
Based upon the review of Table 3-12, 1,475 or 19 percent of the total housing units in the City
were built prior to 1960. While these numbers could represent an estimate of the number of
housing units that could be analyzed for rehabilitation need, the 1993 Housing Element survey
was conducted to determine the structural condition of housing in Arroyo Grande. The structural
Table 3-12 Year Structure Built
Year Structure Built Number Percent
2005 or later 358 4.6%
2000 to 2004 776 10.0%
1990 to 1999 886 11.4%
1980 to 1989 1,457 18.8%
1970 to 1979 1,974 25.4%
1960 to 1969 843 10.9%
1950 to 1959 898 11.6%
1940 to 1949 284 3.7%
1939 or earlier 293 3.8%
Source: U.S. Census 2010
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condition of housing units was reported as “sound”, in need of “minor rehabilitation”, “moderate
rehabilitation”, “substantial rehabilitation”, or “dilapidated”. The survey utilized a point system to
evaluate the housing units in the City. The results of this survey was that 99.3 percent of the 1993
housing units were in “sound” condition, 0.4 percent or 26 units were in need of “minor
rehabilitation”, 0.3 percent or 13 units were in need of “moderate rehabilitation” and one unit
was in need of “substantial rehabilitation”. No units were determined to be dilapidated. The
survey concluded that virtually all housing units were in sound condition and the overall
appearance of the City is of well-maintained homes. To update the findings of the 1993 housing
survey, City staff conducted a windshield survey of housing units in the older neighborhoods
where housing conditions may be an issue. The survey located less than ten units that appear in
need of substantial rehabilitation or removal. 16 units that were deemed to be in dilapidated
condition were demolished during the period of June 30, 2003 and June 30, 2007. The City has
not identified any additional units in need of demolition.
3.4 Housing Affordability
One of the key issues facing the provision of housing in the state is affordability. Even with the
downturn in the housing market, the ability to acquire safe and sound housing is a major social
and economic issue. It is affecting decisions regarding business retention and expansion,
commuting distances for employees, as well as the overall quality of life. The housing
affordability issue is further complicated by the lack of financial and other resources available to
mitigate the current housing situation.
The primary issue of housing affordability on the Central Coast is the relationship between
household income and the cost of housing. This Section covers housing prices, rental rates,
affordability thresholds, overpayment, and long-term affordability issues.
Housing Prices
According to the 2010 Census, the median value of a home in San Luis Obispo County was
$513,900 and $541,100 for Arroyo Grande. Median means a point where 50 percent of housing
prices, are below the listed number and 50 percent are above.
While these statistics reflect housing prices in 2010, housing prices in San Luis Obispo County and
Arroyo Grande have decreased since 2009 (see Figure 3-4). A review of housing prices was
conducted for the City and County using median home values through 2012 from the California
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Association of Realtors (CAR) and the U.S Census. Figure 3-4 shows that between 2003 and 2006
median home prices for Arroyo Grande increased by a little over 50 percent, but by 2008
decreased nearly to 2003 prices. In 2009 a small increase in prices occurred and since then there
has been a slow decline in price trend.
Figure 3-4 Median Home Prices Trend, Arroyo Grande
Source: U.S. Census and California Association of Realtors (CAR), 2009
Rental Unit Rates
According to the 2008-2012 US Census ACD estimates, the median rent in Arroyo Grande was
$1,178 per month.
Market rental rates were gathered using Craigslist, an online classifieds website, from June 25 to
June 25, 2014. Table 3-13 shows the average market rental rates for each type of unit.
Table 3-13 Market Rental Rates by Unit Type
Average Median Lowest Highest
Studio $ 1,191 $ 1,300 $ 675 $ 1,600
1 BR - Apartment $ 1,051 $ 1,012 $ 895 $ 1,200
2 BR - Apartment $ 1,481 $ 1,450 $ 1,200 $ 1,895
Single Family
1-2 Bedrooms $ 1,200 $ 1,200 $ 1,200 $ 1,200
3-5 Bedrooms $ 2,199 $ 2,122 $ 1,650 $ 3,150
Source: Craigslist, retrieved July 27, 2011
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
San Luis Obispo County Arroyo Grande
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While the above rental analysis involves a limited number of housing units that are available for
rent (the number of units listed in each category ranges from two to eight), the data does give a
perspective on rents being asked in Arroyo Grande. Market rental rates varied for apartments
and single-family residences. The lowest rent found for an apartment was $675, while the highest
was $1,895. For apartments, the average asking rent for a studio (including lofts and artist space)
was $1,191, for a one-bedroom $1,051, and $1,481 for a two-bedroom. For homes being rented,
the average asking rent for a one to two-bedroom unit was $1,200. For a three to five-bedroom
unit, the average was $2,199.
Affordability Thresholds
Affordable rental and sales prices for housing were calculated by the County of San Luis Obispo
Planning and Building Department using HCD’s 2014 income limits and are summarized in Table
3-14.
The median home price in Arroyo Grande in 2010 was reported as $541,100. As can be seen in
Table 3-14, not even a moderate-income household could afford this price. Even though
median home prices have declined significantly over the last several years, they still are not
affordable for the households who are in the moderate or below moderate-income categories.
While they may be able to afford some rental housing, large households, low-income
households, and extremely low-income households may still have a difficult time finding decent
housing.
Table 3-14 San Luis Obispo County Housing Affordability
Studio 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom
Maximum Affordable Rent*:
Extremely Low-
MIIncomeInInco
me
$404 $462 $520 $578 $624
Very Low-
Income
$674 $770 $866 $963 $1,039
Low-Income $809 $924 $1,040 $1,155 $1,247
Moderate $1,482 $1,694 $1,906 $2,118 $2,287
Maximum Affordable Sales Price**:
Extremely Low $38,000 $47,000 $56,000 $64,000 $71,000
Very Low $79,000 $93,000 $108,000 $122,000 $134,000
Low $119,000 $140,000 $160,000 $180,000 $196,000
Moderate $238,000 $275,000 $312,000 $349,000 $379,000
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Overpayment
Another measure of housing affordability is the percentage of income paid for housing. State
housing guidelines consider 30 percent of gross income paid for housing including utilities as the
standard affordable level and those households paying 30 percent or more as overpayment.
According to the 2010 Census, 1,321 households or 27 percent of the owner-occupied units were
paying monthly housing costs of 30 percent or more of their income as shown in Table 3-15. For
renter-occupied housing units, 1,038 households or 46 percent paid 30 percent or more for rent
compared to household income.
Table 3-15 Households Overpaying for Housing
Household
Income (under
$75,000)
Owners Renters Total
Households
Overpaying Percent Households
Overpaying Percent Households
Overpaying Percent
Less than $20,000 277 21% 328 32% 605 26%
$20,000 - $34,999 240 18% 367 35% 607 26%
$35,000 - $49,999 382 29% 115 11% 497 21%
$50,000 - $74,999 422 32% 228 22% 650 28%
Total 1,321 100% 1,038 100% 2,359 100%
Source: U.S. Census 2010
Long-Term Affordability
Affordable housing provided by City incentives is required to be maintained as affordable for at
least a period of 45 (owner-occupied) or 55 years (rental units).This issue of long-term
affordability is a subject of a number of existing programs that ensure that affordable units
maintain their status.
Affordability terms are secured by a promissory note and deed of trust, recorded on the
property prior to or concurrent with the initial occupancy (for rental units) or sale of property. The
promissory note is based on the monetary difference between the initial purchase and the initial
appraised value as an “affordability loan” or “silent second” payable to the City. The loan
*Notes on Maximum Rent Figures:
1. These rent limits include allowances for utilities as determined by the Housing Authority of the City of San Luis
Obispo
2. Rent limits are updated when the State issues its annual update to median incomes, generally in April of each
year.
** Notes on Maximum Sales Prices:
1. Homeowner association (HOA) dues are assumed at $150/month
2. Mortgage financing assumed at a fixed rate for 30 years (per HSH Associates) is 4.35%
3. Prices shown are preliminary estimates and may be revised. Round to the nearest 1000th.
4. Actual sales price limits will be determined by the County on a case-by-case basis.
Source: County of San Luis Obispo Planning and Building, 2014
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accrues interest at a rate set by the City when the note is executed, amortized over 45 years.
Monthly payments (principal plus interest) on the affordability loan are typically waived as long
as eligible residents continue to own and reside in the property. The City of Arroyo Grande does
not have an equity-sharing program established. The City’s established priority has been to
maintain units as affordable. Therefore, they are only allowed to be sold at market value if the
seller is unable to sell to an eligible buyer within a specified time period. In such cases, equity
sharing provisions are established within the affordable housing agreement whereby the
difference between the affordable and market value is paid to the City to eliminate incentives
for conversion to market rate units.
It is apparent, based on this data regarding the supply of housing units, including the lack of
supply of rental units, and with the projected needs, that the households that appear to be in
the greatest need of housing assistance are those of low and very low-income.
3.5 Special Housing Needs Groups
This Section reviews the characteristics of households with special housing needs, including
elderly or senior households, families with female heads of households, large family households,
farmworker households, disabled persons/households, homeless people, and attainable housing.
Elderly/Senior Households
An analysis of the needs of elderly or senior households or persons is important for four reasons: 1)
many elderly have fixed, limited incomes; 2) many elderly persons are “over -housed” (living
alone or with two people in a three or four bedroom house); 3) some elderly have mobility and
health problems that can create special housing needs; and 4) recent projections indicate an
increase in the elderly population in the planning period, both those currently living in the area
or those that will be relocating to the area (in addition to data showing an increase in seniors
during the previous planning period).
According to the 2010 Census, there are a total of 4,686 owner-occupied housing units and
2,401 renter-occupied housing units of which 2,289 are senior households. Table 3-16 represents
householders by tenure and age in the City of Arroyo Grande.
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Table 3-16 Senior Households
Owner Renter Total
Number Percent Number Percent Number Percent
Total 65 and older 1,796 38% 493 21% 2,289 32%
Total 64 and under 2,890 62% 1,908 79% 4,798 68%
Total (all ages) 4,686 100% 2,401 100% 7,087 100%
Source: U.S. Census 2010
Families with Female Heads of Households
The 2010 Census reported that of the total 7,087 households in the City, there were 653 female-
headed households with children and no husband present. This represents 9.2 percent of the
total households. Of these households, 388, or 51.8 percent had children less than 18 years of
age. Based upon the Census data for incomes in 2010, 101 families with a female householder,
no husband present and with related children less than 18 years were reported to be under the
poverty level.
Table 3-17 Housing Problems for Female head of Households
2010
Number Percent
Total households 7087 100%
Total female householders 1930 27%
Female non-family householder 1277 18%
Female family householder, no
husband present 653 9%
w/ children under 18 330 5%
Source: U.S. Census 2010
Large Families/Households
Large families can have special housing needs if they cannot find affordable, large housing units
then and living conditions may become overcrowded. Table 3-17 shows the total occupied
housing units by the number of persons living within each unit. This information is shown for
owner-occupied and rental housing.
For owner-occupied units, the highest percentage is for a two-person unit (42%).Less than five
percent of the owner-occupied households are occupied by five or more persons. For renter-
occupied units, the highest percentage is a one-person household (36%).Less than seven
percent of the renter-occupied units are occupied by five or more persons. These numbers are
generally low compared to the State as a whole, as well as many cities and counties.
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Table 3-18 Tenure by Household Size
Owner-Occupied Housing Units Renter-Occupied Housing Units
Number Percent Number Percent
1-person household 1,097 23% 871 36%
2-person household 1,989 42% 626 26%
3-person household 643 14% 358 15%
4-person household 621 13% 311 13%
5-person household 223 5% 161 7%
6-person household 66 1% 52 2%
7-or-more person household 47 1% 22 1%
Total 4,686 100% 2,401 100%
Source: U.S. Census 2010
Low and Extremely Low-Income Households
Lower income households (earning 80 percent or less of median household income) generally
have higher incidence of housing problems and overpayment (paying 30 percent or more of
income for housing costs). Table 3-18 below shows the percentage of low-, very low-, and
extremely low-income households with housing problems including overpayment for housing.
Extremely low-income households earn 30 percent or less of the median household income. As
of 2010, approximately 18 percent of Arroyo Grande households (775 households) had extremely
low incomes. Fifty-seven percent of extremely low-income households had housing problems
and were overpaying for housing. Of these households, the number of renter and owners was
nearly equivalent, at 28 percent and 29 percent respectively.
Table 3-19 Housing Problems for Lower Income Households
Renters Owners Total
Total Percent Total Percent Total Percent
Household Income <= 30 %
HAMFI (Extremely Low-
Income) 405 29% 370 13% 775 18%
Any Housing Problems 220 54% 225 61% 445 10%
Cost Burden > 30% 215 53% 210 57% 425 10%
Cost Burden > 50% 190 47% 160 43% 350 8%
Household Income > 30% to
<= 50% HAMFI (Very Low-
Income) 420 30% 195 7% 615 14%
Any Housing Problems 390 93% 130 67% 520 12%
Cost Burden > 30% 265 63% 120 62% 385 9%
Cost Burden > 50% 155 37% 75 38% 230 5%
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Table 3-19 Housing Problems for Lower Income Households
Renters Owners Total
Total Percent Total Percent Total Percent
Household Income > 50% to
<= 80% HAMFI (Low-
Income) 360 25% 730 25% 1090 25%
Any Housing Problems 330 92% 275 38% 605 14%
Cost Burden > 30% 300 83% 435 60% 735 17%
Cost Burden > 50% 60 17% 295 40% 355 8%
Household Income > 80% to
<= 100% HAMFI (Moderate
Income) 200 14% 375 13% 575 13%
Cost Burden > 30% 200 100% 250 67% 450 10%
Cost Burden > 50% 0 0% 125 33% 125 3%
Household Income > 100%
HAMFI (Above Moderate
Income) 30 2% 1,290 44% 1,320 30%
Cost Burden > 30% 30 100% 1,075 83% 1,105 25%
Cost Burden > 50% 0 0% 215 17% 215 5%
TOTAL 1415 100% 2,960 100% 4,375 100%
Source: CHAS Databook, 2006 – 2010 ACS
Between January 1, 2014 and June 30, 2019 the RHNA estimate for very low-income housing
need in Arroyo Grande is 60 housing units. Based on HCD standards, 50 percent of these should
be planned for extremely low-income households. Therefore, it is projected that an additional 30
extremely low-income households will be added to the City.
Farmworker Households
According to the 2010 Census, ACS estimates, there are 164 residents of Arroyo Grande
employed in farming, forestry, fishing and hunting or mining operations. Given the location and
environment of Arroyo Grande, it is assumed that a majority of those employed in these
professions are in the agricultural community.
Several studies that have been completed over the past 10 years found that most farmworkers
live in seriously substandard conditions. A majority of current farmworkers have families and thus
are residents versus migrant workers who reside or work for a period of time in the City but live
elsewhere. The actual percent of resident versus migrant workers in this area is unknown. The
major issue for resident farmworkers is that they are generally low-income and thus have to
compete for housing with other lower income residents. The issue for many migrant workers is
that farm employers are not required to provide housing, so the migrants may have to find their
own housing, which sometimes is living in their car or in illegal units. The greatest need for migrant
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workers is temporary seasonal housing. This could be in the form of bunk houses on the property
where the workers are employed. In summary, farmworkers generally earn low-incomes, live in
overcrowded units, and pay a disproportionate share of income for housing. The City is in
compliance with Health and Safety Code Sections 17021.5 and 17021.6.
Persons with Disabilities
The 2012 Census recorded the disability status of the civilian non-institutional population of City
residents. Approximately 12 percent of these residents in the City reported as having a disability.
The age breakdown can be seen in Table 3-19, showing that the largest percentage (57 %) of
the disabled population are 65 years of age or older. Only 3 percent of persons with disabilities
reported being under the age of 18.
Table 3-20 Persons With Disabilities by Age
Number Percent
Under 18 years 70 3%
18 to 64 years 1,340 64%
65 years and over 1,184 57%
Total Civilian Non-institutionalized Population with disabilities 2,082 100%
Source: U.S. Census 2012
There are two major problems facing persons with a disability: the need for housing that meets
particular physical needs (wheelchair accessible, etc.) and monetary needs. Because of limited
job opportunities, many persons with disabilities have incomes below the median.
Persons with disabilities living in Arroyo Grande may have varying housing needs depending on
the nature and severity of their disability. Persons with physical disabilities generally require
modifications to housing units such as wheelchair ramps, elevators, wide doorways, accessible
cabinetry, modified fixtures and appliances. If the disability prevents the person from operating
a vehicle, then proximity to services and access to public transportation are important.
If the physical disability prevents the person from working or limits their income, then the cost of
housing and needed modifications can be significant. Because physical handicaps vary, this
group rarely gravitates toward a single service organization. This makes estimating the number of
persons and specific needs difficult. The physical modification of housing is not necessary to
accommodate persons with mental disabilities, but they will generally require special services
and monetary support. Since jobs and income are often limited, affordable housing is important.
Issues related to those with a mental disability would suggest that there is a need for apartment
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or other housing complexes that are reserved or designed to accommodate persons requiring
extra assistance. If the person is unable to drive, access to public transportation is very
important.
Although the City has not adopted a reasonable accommodation policy or ordinance for
persons with disabilities, the City has mechanisms, which allow for the modification of standards
and retrofitting to increase the suitability of homes to accommodate persons living with special
needs, including those with disabilities. In addition, the City proposes Program L.2-1 to create a
reasonable accommodation policy for the City.
Developmentally Disabled
According to Section 4512 of the Welfare and Institutions Code a "developmental disability" is
defined as a disability that originates before an individual attains age 18 years, continues, or can
be expected to continue, indefinitely, and constitutes a substantial disability for that individual
which includes mental retardation, cerebral palsy, epilepsy, and autism. This term also includes
disabling conditions found to be closely related to mental retardation or to require treatment
similar to that required for individuals with mental retardation, but does not include other
handicapping conditions that are solely physical in nature.
Many developmentally disabled persons can live and work independently within a conventional
housing environment; however, more severely disabled individuals require a group living
environment where supervision is provided. The most severely affected individuals may require
an institutional environment where medical attention and physical therapy are provided.
Because developmental disabilities exist before adulthood, the first issue in supportive housing for
the developmentally disabled is the transition from the person’s living situation as a child to an
appropriate level of independence as an adult.
The California Department of Developmental Services (DDS) provided community-based
services to about 279,000 persons in 2014 with developmental disabilities and their families
through a statewide system of 21 regional centers, four developmental centers, and two
community-based facilities. The Tri-County Regional Center (TCRC) is one of 21 regional centers
in California that provides point of entry to services for people with developmental disabilities in
Ventura, Santa Barbara, and San Luis Obispo Counties. The center is a private, non-profit
community agency that contracts with local businesses to offer a wide range of services to
individuals with developmental disabilities and their families. In 2012, TCRC provided services to
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approximately 11,600 persons in the Tri-County area. Table 3-20 shows the number of individuals
served by TCRC in the 93420 zip code. While this is the primary zip code for the City, the 93420 zip
code includes unincorporated areas within the County.
Table 3-20 Developmentally Disabled Persons
Location 0-14 years 15-22 years 23-54 years 55-65 years 65+ years Total
93420 44 41 82 24 3 194
Arroyo Grande 44 41 82 24 3 194
Source: Tri-County Regional Center, 2014
There are a number of housing types appropriate for people living with a development disability:
rent subsidized homes, licensed and unlicensed single-family homes, inclusionary housing,
Section 8 vouchers, special programs for home purchase, and HUD housing. Similar to the needs
of disabled residents and households mentioned above, the design of housing-accessibility
modifications, the proximity to services and transit, the availability of group living opportunities,
and consideration of the affordability of housing for people with disabilities living on a fixed
income represent some of the types of considerations that are important in serving this need
group. Incorporating ‘barrier-free’ design in all, new multifamily housing (as required by State
and Federal Fair Housing laws) is especially important to provide the widest range of choices for
disabled residents.
There are local and county programs and services which provide housing and living assistance
for disabled residents. Locally the Housing Authority of San Luis Obispo administers the Housing
Choice Voucher program, commonly known as Section 8, which provides long-term rental
assistance for families with children, elderly and disabled individuals, as well as families with
members who are disabled. Additionally, Transitions-Mental Health Association (TMHA), a
nonprofit organization serving San Luis Obispo County, provides housing assistance to disabled
individuals. HASLO and TMHA have partnered over the years to provide case management
services to homeless/disabled individuals.
In order to assist in the housing needs for persons with disabilities the City will continue to
implement program L.1-1 to encourage creation of housing for persons with disabilities.
Suggested models include coordinating housing activities and outreach with the Tri-County
Regional Center and other local agencies, encouraging housing providers to designate a
portion of new affordable housing developments for persons with disabilities, especially persons
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with developmental disabilities, and assisting individuals in locating and maintaining suitable
housing.
Homeless
The 2013 San Luis Obispo County Homeless Census and Survey provided a “point-in-time” survey
of the homeless population in South San Luis Obispo County, which includes the cities and
communities of Pismo Beach, Grover Beach, Oceano, Arroyo Grande, and Nipomo. The
homeless population in South County represents 38 percent of the total homeless population in
the County, which was reported at 2,186 people. Of the total homeless population in San Luis
Obispo County, 88 percent were over the age of 18. Past studies have indicated that the
majority of homeless persons are found within the City of San Luis Obispo, probably as a result of
the fact that most services for the homeless are centered there. Observations from service
providers and law enforcement indicate that a large share of the homeless in South County
reside in the beach towns.
Since 1989, the Community Action Partnership of San Luis Obispo County’s (CAPSLO) Homeless
Services program has been working to meet the needs of the homeless in the County, offering
emergency housing, on-site information, referral services and assistance in finding permanent
housing. This organization operates the Maxine Lewis Memorial shelter in San Luis Obispo, which
provides 50 beds nightly year-round. An additional 25 to 35 beds are added through the
Interfaith Coalition for the Homeless, bringing the overflow total to more than 25,000 shelter
nights provided per year. There are several other organizations in the County that provide
services and housing for the homeless, including several churches.
The City provides many services for the homeless that includes mental health services, drug an d
alcohol services and student services. These resources are provided by the City as well as by the
support of the Homeless Services Oversight Council of San Luis Obispo County. San Luis Obispo
County has also incorporated a 10-year Plan to End Homelessness that was completed in 2008.
This plan includes goals in housing attainability, ongoing services for the homeless and
prevention action to divert individuals from becoming part of the cycle of homelessness.
Attainable Housing
Housing has become out of reach for most workers in San Luis Obispo County and the City of
Arroyo Grande. This has made it very difficult for the employers of many industries to recruit and
retain employees. It has also caused the situation that many employees must commute from
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varying locations, causing traffic congestion and related air quality impacts. Additionally,
housing is out of reach for many others in lower income categories including seniors, single
mothers, those with special needs and others as discussed earlier in this chapter.
The City of Arroyo Grande has identified the provision of housing to those unable to afford
market-rate housing prices as a priority and a policy and program are included in this Housing
Element to establish an “Attainable Housing” program in the City. Defining “Attainable Housing”
will be part of this effort. The City envisions assessing whether proposed projects include
“Attainable Housing” as applications are submitted.
Elements considered part of “Attainable Housing” are anticipated to include but will not be
limited to:
Projects with a high percentage of rental units
Projects including single-room occupancy units (see also Program J.1-1)
Projects in mixed-use districts
Projects that include universal design elements (see also Program L.2-2)
Infill projects, and
Projects that include elements that exceed the mandatory California Green Building
Code Standards in Title 24
Incentives available for “Attainable Housing” projects are anticipated to include but will not be
limited to:
Reduced parking standards
Setback reductions
Impact fee reductions or waivers
3.6 At Risk Housing Units
Existing affordable housing units in the City, including those available to low and very low-
income families that were created through government subsidies, may be eligible to convert to
market rate units. Such conversions may jeopardize a significant amount of the existing
affordable housing stock. Housing elements are required to:
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1) identify those low-income units that may convert to market rate units within 10 years;
2) analyze the costs of preservation of these “at-risk” units versus replacing them;
3) identify resources for preservation; 4) set objectives for preserving at risk-risk units; and
5) incorporate programs to try to preserve the units as affordable housing.
During this reporting period, three of the twenty-nine units restricted to the moderate-income
level and two of the six units restricted to the low income level through the City’s inclusionary
housing program have also been lost. This loss is largely due to the formula used to determine
the maximum allowable sales price. Under the program, when interest rates go down, the
maximum affordable sales price goes up. Hence, in recent years, the decrease in the interest
rate has created a maximum affordable sales price that exceeds the market rate. Other loss es
have been due to foreclosures. However, this situation is expected to stabilize as the housing
market recovers and interest rates are normalized. To the extent that subsidized housing units are
established in the City in the future, policies and programs shall be identified to ensure that these
affordable units may remain available for lower income families . Programs I.1-1 and I.1-2 address
situations where affordable units are at risk of converting to market rate.
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CHAPTER 4 - Housing Resources
This Chapter evaluates the availability of land and public services in Arroyo Grande to support
future residential development. The Chapter also summarizes financial resources available for
affordable housing and energy conservation opportunities.
4.1 Regional Housing Needs Determinations
State law requires councils of government to prepare Regional Housing Needs Plans (RHNP) for
all cities and counties within their jurisdiction. The RHNP for San Luis Obispo County, including the
City of Arroyo Grande was prepared by the San Luis Obispo Council of Governments
(SLOCOG).The RHNP was adopted by SLOCOG in August 2013 and was subsequently accepted
by HCD. The RHNP is intended to assure that adequate sites and zoning exist to address
anticipated housing demand during the planning period (June 30, 2014 through June 30, 2019).
The RHNP sets targets to ensure the availability of sites to accommodate the housing needs of a
wide range of socioeconomic segments of a community.
To develop estimates of future housing needs by jurisdiction, SLOCOG evaluated past
construction trends, the relationship between job and housing opportunities, public service
availability, as well as housing needs provided by the State. SLOCOG, in its preparation of the
RHNP, considered the following factors in its distribution of the housing needs to the individual
jurisdictions:
SLOCOG goal to increase the housing supply and the mix of housing types, tenure, and
affordability in all jurisdictions within the region in an equitable manner in accordance
with SLOCOGs Regional Transportation Plan and as envision under SB375.
Concentration of new growth in each jurisdiction’s Target Development Areas.
Each jurisdiction’s employment base and population growth in relation to regional
employment and population growth;
The extent to which a jurisdiction’s current income distribution differs from t hat of the
regional average;
The HCD determined regional housing needs: and
The capacity of the presently zoned land in the unincorporated County for residential
development in the above moderate-income category.
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State law requires that RHNP’s divide the specified housing allocation into four income groups.
The groups are defined as percentages of County median income. Table 4-1 displays the criteria
for the four income groups.
Table 4-1 Income Group
Very Low Household income is less than 50% of the county median income.
Low Household income is between 50% and 80% of the county median income.
Moderate Household income is between 80% and 120% of the county median income.
Above Moderate Household income is greater than 120% of the county median income.
Source: HCD Income Definitions
4.2 2014-2019 Regional Housing Needs Allocation
The total number of dwelling units that needs to be accommodated during the planning period
for Arroyo Grande is 242 housing units, as outlined in Table 4-2. The very low and low-income
categories make up 40 percent of the housing allocation.
Table 4-2 Housing Need Allocation by Income Category
Number Percent Share
Very Low 60 24.9%
Low 38 15.6%
Moderate 43 17.6%
Above Moderate 101 41.8%
Total 242 100%
Source: Regional Housing Needs Plan 2013, San Luis Obispo Council of
Governments
According to HCD, based upon federal income standards, in 2014 the median household
income for a family of four in San Luis Obispo County was $77,000. Table 4-3 indicates the
income levels for 2014.
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Table 4-3 Income Limits, County of San Luis Obispo
Number of
Persons in HH 1 2 3 4 5 6 7 8
Extremely
low-income $15,850 $18,100 $20,350 $22,600 $24,450 $26,250 $28,050 $29,850
Very low-
income $26,400 $30,200 $33,950 $37,700 $40,750 $43,750 $46,750 $49,800
Low-income $42,250 $48,250 $54,300 $60,300 $65,150 $69,950 $74,800 $79,600
Median
Income $53,900 $61,600 $69,300 $77,000 $83,150 $89,300 $9,500 $101,650
Moderate
Income $64.700 $73,900 $83,150 $92,400 $99,800 $107,200 $114,600 $121,950
Source: State Department of Housing and Community Development, 2014
Over the period from January 2014 to June 2014, 20 primary units, 1 secondary unit, and a 69 unit
assisted living facility were constructed or permitted in Arroyo Grande. Table 4-4, below, details
the income categories of the approved projects. A total of eight single family residences and
one second unit were constructed. The single-family residences are assumed above moderate.
The 1 secondary unit was assumed to be low-income based on affordability in the City, current
rents, and second unit regulations (See also Tables 3-13 and 3-14).The average market rate for
apartments ranges from about $1,051 per month for a one-bedroom apartment to $1,481 per
month for a two-bedroom with the lowest priced units ranging from $895 per month to about
$1,200 per month. The monthly rent that low-income households can afford ranges from $924 to
$1,040, placing many market-rate one-bedroom, two-bedroom and second units in the
affordable range for low-income households. In addition, pursuant to Arroyo Grande Municipal
Code Section 16.52.150, size limits are placed on second units depending on the zoning district
they are in. Given that the 1 constructed secondary units is a one bedroom and less than 850
square feet in size, it is likely rented for less than $1,000 or provided to family members for no rent.
The 81 units approved during the planning period included one assisted living project, a new 69-
unit assisted living facility (see Table 4-4). These units are not income-restricted and provide food
and care; therefore, they are classified as “above moderate”. In addition to the 69-unit assisted
living facility, the remaining approved units have been in the above moderate-income
category.
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Table 4-4 Approved Projects January 2014-June 2014
ID# Address Very Low Low Moderate Above
Moderate
Total (added
across)
880 Oak Park Blvd. 0 0 0 77 77
228 Le Point Street 0 0 0 1 1
308 Stillwell Drive 0 0 0 1 1
324 Stillwell Drive 0 0 0 1 1
328 Stillwell Drive 0 0 0 1 1
Totals 0 0 0 81 81
Source: City of Arroyo Grande, 2014
Due to the elimination of redevelopment agencies by the State as of December 2011, the City
will use funds from the City’s Affordable Housing in -Lieu Fee Program when feasible to finance
future affordable housing projects. The City strives to make funding available to local affordable
housing non-profit organizations to assist with housing projects when possible. However, the level
of funding the City can provide is not sufficient to address direct and associated costs of
providing this level of housing without increased State financial assistance.
After accounting for permit and construction activity in the period from January 2014 to June
2014, the City has a remaining RHNA of 152 units, 97 of those are very low and low-income (see
Table 4-5).
Table 4-6 shows the remaining RHNA for the planning period and the vacant land and
opportunity sites available for residential development. It is important to note that the City is not
responsible for the actual construction of these units. The City is, however, responsible for
creating a regulatory environment in which the private market can build units affordable to very
low, low, moderate, and above moderate households to meet the City’s allocation . This
includes the creation, adoption, and implementation of General Plan policies, development
standards, and/or economic incentives to encourage the construction of various types of units.
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As Table 4-6 shows, the City can meet all of its remaining RHNA with available vacant sites. The
City has vacant land available to accommodate 219 units. Of these, 129 units are located on
higher density sites and can be developed to accommodate the very low and low-income
allocation. Additionally, the City has identified opportunity sites and second unit development
potential, which provide alternative options and development flexibility and could
accommodate over 300 units. Vacant land, underutilized land opportunities, and second unit
potential are discussed in Section 4.3 below.
4.3 Land Availability
State housing law requires that the housing element provide an inventory of land suitable and
available for residential development, including vacant sites and sites having potential for
intensification and/or redevelopment. The purpose of this requirement is to identify sites that
could accommodate residential development as set forth by the RHNP. This analysis is not a
construction quota or an anticipated list of projects that will be constructed, given that the law
Table 4-5 City Share of Regional Housing Need 2014-2019
Very Low Low Moderate Above
Moderate
Total
(added
across)
2014-2019 RHNA 60 38 43 101 242
Units Constructed/Approved 0 0 0 89 89
Second Units
Constructed/Approved 0 1 0 0 1
Remaining 2014-2019 RHNA 60 37 43 12 152
Source: Regional Housing Needs Plan 2013, San Luis Obispo Council of Governments, City of Arroyo Grande
Table 4-6 Remaining RHNA, 2014-2019
Very Low Low Moderate Above
Moderate
Total (added
across)
Subtotal remaining RHNA 60 37 43 12 152
Vacant Land Inventory1 129 90 219
Total Remaining RHNA 0 0 0
Additional Sites
Second Unit Potential 0 12 12 0 24
Opportunity Sites2 139 127 0 51 317
Total Additional Sites 139 139 12 51 341
Notes:
1: Details about these sites are found in Table 4-7
2: Details about these sites are found in Table 4-8
Source: Regional Housing Needs Plan 2013, San Luis Obispo Council of Governments, City of Arroyo Grande
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recognizes that there may be limitations that would affect residential development, as well as
the fact that private development and market forces affect the level of housing construction.
Following are two tables (Tables 4-7 and 4-8) that provide listings of vacant and opportunity
(underutilized) sites available for housing construction, as well as Table 4-9 providing the sites
where projects have received entitlements. Figure 4-1 presents a housing opportunity inventory
map with locations for the sites discussed in Tables 4-7 through 4-9.
The City’s Land Use Element includes a “Mixed Use” land use category that encompasses
approximately 85 percent (254 acres) of all the commercially zoned land within the City. The
Development Code was updated in 2007 to implement the changes in the Land Use Element.
New development standards for the Village Core Downtown (VCD) and Village Mixed Use
(VMU) districts have been established including allowable densities of up to 15 dwelling units per
acre (densities were not previously established in the superseded Village Commercial district).
The City also rezoned properties within the General Commercial (GC) district to Gateway Mixed-
Use (GMU), Fair Oaks Mixed-Use (FOMU), and Traffic Way Mixed-Use (TMU) depending on
location. Properties in the Office, Industrial and Highway zoning districts have been rezoned to
Office Mixed-Use (OMU), Industrial Mixed-Use (IMU), and Highway Mixed-Use (HMU), respectively.
New development standards for these mixed-use districts have been established with maximum
densities ranging from 15 to 25 dwelling units per acre, and minimum densities set at 75 percent
of maximum for certain districts.
Consequently, most of the land (the exception is the Regional Commercial zoning district) within
the City is zoned for some level of residential development with minimum densities. This is a
significant change from what was allowed and analyzed in the City’s 2003 Housing Element.
The City recognizes that the State requires land zoned at a minimum of 20 units per acre to meet
the very low and low income housing allocation. With the flexible density for mixed-use zoned
areas the City is able to exceed the 20 units per acre, and in some areas only 10 percent of the
site is required to be commercial, allowing the remaining site to be developed as residential.
Recent high-density residential projects in the mixed-use zone include the Pike and Elm project
(22 du/ac) which was considered mixed-use due to its location adjacent to a commercial use
although the site is fully residential, and a People Self Help Housing (PSHH) project currently
under construction on East Grand Avenue built to 22 units per acre providing 36 low and very
low-income units and is located in the Gateway Mixed-Use Zone. The City has demonstrated
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that it is flexible in approving higher density residential projects. With the increase of allowable
densities as well as the increase of land suitable for residential development, the City has
expanded its capacity to develop affordable housing.
Vacant Land
The vacant land inventory identifies the realistic potential for 219 units. While many of the vacant
parcels are expected to accommodate moderate- and above moderate-income households,
there are several sites that are appropriate for high-density housing units for very low- and low-
income households, accommodating approximately 129 very low- and low-income units. The
number of very low- and low-income units is based on conservative estimates and allocating a
portion of the site for non-residential development. For sites located in a PED zone, residential
uses are not permitted on the ground floor facing the street and, therefore, it is assumed a
minimum of 10 percent of the site would be dedicated to commercial and retail uses. Site
number 10 (discussed in Table 4-7) can accommodate all but three of the very low and low-
income housing need. This site is subject to PED regulation and therefore must be developed as
a mixed-use property. As this site is located adjacent to very-high density multifamily residential
land use and a multifamily apartment zone, it is anticipated this site will be built to maximum
density capacity as compatible with surrounding residential uses. The remaining three units can
be accommodated by the other vacant high density sites, which are not subject to the PED
regulation.
Second Units
A review of City planning permit records indicated that five second units are constructed, on
average, every year. Using this historic average, it is assumed that 25 second units will be
permitted between now and June 2019, with one already constructed. Based on affordability
calculations (See Table 3-14) and current rental rates it is expected that the second units will be
affordable to low-income and moderate income households. However, the vacant land
inventory and opportunity sites have sufficient capacity to meet the RHNA target without relying
on second units.
Underutilized Sites
While the vacant sites identified in Table 4-7 are able to accommodate the remaining RHNA, the
City has also identified opportunity sites with some existing development that are zoned for
residential development (see Table 4-8). These sites are suitable for infill and redevelopment to
provide alternate opportunities for new housing development and affordable units. The
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opportunity sites provide the possibility for an additional 317 units total including 139 very low-
income and 127 low-income units. The City’s General Plan Land Use Element identifies numerous
polices to promote a variety of housing types and affordability diversification.
In addition to the sites in Tables 4-7 and 4-8, the City recently annexed a 48.74-acre site located
south of the City limits at the southeast terminus of Castillo Del Mar. The property was approved
for a 16 lot subdivision (VTTM 1789) by the San Luis Obispo County Planning Commission in 2008.
The applicant revised the project to include six additional lots (VTTM 3048 , “Heights at Vista Del
Mar”), which the County approved in December 2013. A Memorandum of Understanding
(M OU) for the project established a strategy to provide water to Tract 3048 by utilizing a portion
of water conservation offsets paid by the developer. Water availability is therefore from
conservation rather than a new water supply. The applicant is in the process of installing required
public improvements for the project. The 22 units are above the moderate-income level.
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Table 4-7 Vacant Sites Inventory
ID # APN Address
Site
Size
(acres)
GP
Land
Use
Zoning Density
*Number
of
Dwelling
Units
Notes Site
Constraints
Low Density Sites
1 007-011-048,
047
100 Rodeo
Dr.
2.9 CF PD 1.3 4.5/ac 13
Mod/AM
Grace
Church
Property
2 007-011-040 Rodeo Dr. 6.9 MFR &
SFR
MF/RS 9/ac
(MF)
2.5/ac
(RS)
20
Mod/AM
County
Property
(mixed
zoning)
3 Portion of
007-011-044
PF & SF
Old Ranch
Rd.
5.0 CF &
SFR
PF/SF 4.5/ac
4
Mod/AM
City Property
– (South
County
Regional
Center;
mixed
zoning)
4 077-051-052,
053; portion
of 077-061-
016
Hillcrest Dr. 1.88 MU MF 9/ac 14
Mod/AM
Mankins/ City
Project
Pending
5 Portion of
077-055-061
Hillcrest Dr.
1.12 MU MF 9/ac 10
Mod/AM
Mankins
6 007-031-038;
007-791-034
251 Corbett
Canyon
5.08 C/OS
& SFR
PF/RS 2.5/ac 8
Mod/AM
creek
setback
area
7 007-011-041 Grace Lane
and Rodeo
Dr.
7.43 SFR PD 1.3 2.5/ac 11
Mod/AM
steep
slopes
8 077-163-001 Cedar &
Aspen
Streets
0.6 SFR SF 4.5/ac 3
Mod/AM
SF Infill
9 006-095-024 Castillo Del
Mar
11.0 SFR LD RH .67/ac 7
Mod/AM
High Density Sites
10 077-111-072 143 & 147
Brisco Rd.
4.2 MU GMU/
**PED
15/ac
(25/ac
for
mixed
use)
94
VL/Low
RV Storage
10%
commercial
90%
residential
11 077-011-010 700 Oak
Park Blvd.
0.73 MU OMU 15/ac
(20/ac
for
mixed
use)
7 VL/Low 50% of site
due to
mixed-use
zoning
12 077-012- 013 1650 Chilton
St.
1.88 MU OMU 15/ac
(20/ac
for
mixed
use)
18
VL/Low
50% of site
due to
mixed-use
zoning
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Table 4-7 Vacant Sites Inventory
ID # APN Address
Site
Size
(acres)
GP
Land
Use
Zoning Density
*Number
of
Dwelling
Units
Notes Site
Constraints
13 077-223-064 142 S.
Halcyon Rd.
0.8 MU OMU 15/ac
(20-ac
for
mixed
use)
10
VL/Low
One parcel
is
completely
surrounded
by the
other
parcel.
Two
separate
owners
077-223-068 MU FOMU 15/ac
(25/ac
for
mixed
use)
Totals
90
Mod/AM
129
VL/Low
219 total
units
Legend:
AM – Above-Moderate Income
Mod – Moderate Income
Low – Low Income
VL – Very Low Income
Notes:
*The estimated number of dwelling units for high density zones is conservative. Sites zoned FOMU or GMU can yield up to 25 du/ac.
Sites zoned OMU are assumed to include 50% commercial development, which is not a requirement.
**PED = Residential not permitted in pedestrian oriented storefront locations on ground floor facing E. Grand Avenue, East/West
Branch Street or prime real estate space within shopping centers.
Source: City of Arroyo Grande, 2014
Item 10.b. - Page 144
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Table 4-8 Opportunity Sites Inventory
ID # APN Address
Site
Size
(acres)
GP
Land
Use
Existing
Zoning
Density Existing
(no.
dwelling
units)
Addt’l
(no.
dwelling
units)
Existing Uses,
Surrounding Uses, Other
Information
High Density Sites
14 007-531-
002, 005
980 & 1010
Huasna Rd.
1.86 AG AG n/a
(AG)
9/ac
(MF)
2 14 (VL) Possible Farm Worker
Housing: Farm worker
housing is allowed on
this site. Density of farm
worker housing is
determined through
discretionary review.
Another option is to
rezone to MF (9 du/ac).
Surrounding uses include
a mobile home park
and agricultural uses.
Owners are Dunn
Douglass Family Trust
and Charles Cabassi.
15 077-204-
014, 026,
031, 036,
037
370 - 382
So. Halcyon
Rd.
1.8 MU OMU 15/ac
(20/ac
mixed
use)
5 11 (VL)
11 (Low)
Existing use is single
family residential
development (older,
small homes), site is
underutilized.
Surrounding uses include
Arroyo Grande Hospital,
Harloe Elementary
School, and multi-family
development. Owners
are Barbara Finn and
Jones Family Trust.
16 077-201-
012
910 Dodson
Way,
224 & 230
Halcyon
Rd.
0.7 MU OMU 15/ac
(20/ac
mixed
use)
3 3 (VL)
4 (Low)
Existing use is single
family residential
development (older,
small homes), site is
underutilized.
Surrounding uses include
commercial and
residential
development. Owner is
Tierra Pacific
Development, LLC.
Item 10.b. - Page 145
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Table 4-8 Opportunity Sites Inventory
ID # APN Address
Site
Size
(acres)
GP
Land
Use
Existing
Zoning
Density Existing
(no.
dwelling
units)
Addt’l
(no.
dwelling
units)
Existing Uses,
Surrounding Uses, Other
Information
17 077-111-
009, 011,
012, 014,
057;
077-112-
001 to
006;
077-113-
015, 016
077-211-
010, 015,
018, 022
to 024,
035 to
037,
077-221-
002, 003,
026, 027,
028, 031,
036, 037
1070-1150
E. Grand
Ave.,
1013-1167
E. Grand
Ave.
Total
area =
11.92
acres.
Assume
1/3
avail.
for infill,
or
about 4
acres.
MU FOMU 15/ac
(25/ac
mixed
use)
Existing
comm
ercial
buildin
gs,
parking
,
couple
of
residen
ces.
30 (VL )
30 (Low)
Assume back lot and
infill development.
Multiple parcels along
Grand Avenue. Existing
use is strip mall
development.
Surrounding uses are
primarily other similar
commercial uses. The
subject properties are
under multiple
ownerships.
18 077-203-
009, 019
265 & 279
Alder
0.4 VHD
(Very
High
Densi
ty)
SF1 25/ac 2 13 (VL )
13 (Low)
Existing use is single-
family residential. The
two parcels are
adjacent to and owned
by Tose Family Trust,
which operates a senior
assisted living facility
(Alder House).
Surrounding uses include
single- and multi-family
residential and office
development.
19 077-241-
013, 035,
062
406 S. Elm;
1210, 1212
&
1220 Farroll
Ave.
9.84
(Estimat
ed 25%
of
propert
y
devel-
oped
at
maxim
um
density)
MFR/
CF/M
U
MFA/PF
/ OMU
15-25/
ac
1 SFR,
Church
& care
facility
30 (VL)
30 (Low)
Special needs or high
density. Current uses
include single family
residence, residential
care facility (Arroyo
Grande Care Center
owned by Compass
Health, Inc.) and
Coastal Christian School
(grades K-12). Property
owners are Mathias
Family Trust, McMullen
Juanita Living Trust, and
Landmark Missionary
Baptist Church.
Item 10.b. - Page 146
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84
Table 4-8 Opportunity Sites Inventory
ID # APN Address
Site
Size
(acres)
GP
Land
Use
Existing
Zoning
Density Existing
(no.
dwelling
units)
Addt’l
(no.
dwelling
units)
Existing Uses,
Surrounding Uses, Other
Information
20 077-204-
028
280
Halcyon
Road
0.8 MU OMU 15/ac
(20/ac
mixed
use)
1 5 (VL)
6 (Low)
MF Infill. The property is
developed with a small
single-family residence
and therefore
underutilized.
Surrounding uses include
commercial and high
density residential
development. Owner is
George Gay.
21 077-141-
018, 027,
028
1203-1243
E. Grand
Ave.
7.5 MU GMU/
MF
15/ac
(50% of
site)
(25/ac
mixed
use)
0 28 (VL)
28 (Low)
Existing commercial
buildings. Tri-W/ RDA
(identified
redevelopment area of
existing shopping
center)
22 077-011-
011
1587 El
Camino
Real
1.11 MU OMU 15/ac
(50% of
site)
(20/ac
mixed
use)
0 5 (VL)
5 (Low)
Existing office building.
Surrounding uses
include, office,
residential and vacant.
Owner is Dechance
Living Trust. Constraints
include mature oak
trees.
Low Density Sites
23 007-571-
all
except
606
Lierly Ln. &
E. Cherry
Ave.
12.77 SFR
Med.
Densi
ty
with
NP
Overl
ay
RR 4.5/ac 12 25 (AM) This site is subject to
Neighborhood Plan
requirements to
coordinate
infrastructure
improvements and
circulation. Existing use is
low density single-family
development under
multiple ownerships.
Surrounding uses include
single-family residences
and active agricultural
land. Site constraints
include creek setback
and agricultural buffer.
Item 10.b. - Page 147
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85
Table 4-8 Opportunity Sites Inventory
ID # APN Address
Site
Size
(acres)
GP
Land
Use
Existing
Zoning
Density Existing
(no.
dwelling
units)
Addt’l
(no.
dwelling
units)
Existing Uses,
Surrounding Uses, Other
Information
24 007-861-
018, 070;
007-751-
004
1041
Huasna Rd.
1075
Huasna Rd.
6.62 SFR
Low
Medi
um
Densi
ty
RS 2.5/ac 3 13 (AM) Existing are 3 single-
family residences on 2
parcels. One of the
properties is vacant.
Owners include Beck
Family Trust and Nancy
Kelley. Surrounding land
uses include low density
single family residential
development and
agriculture. The
properties are
somewhat constrained
by slope.
25 077-192-
026, 031
1029 Ash
Street
1.3 CF/SF SF 4.5/ac 2 4 (AM) SF Infill. Existing use is
low-density single-family
residential. Surrounding
the property is single-
family residential
development. Owner of
the property is
Edmondson Living Trust.
The land use
designation of CF should
be changed to SFR
consistent with the
zoning.
26 007-501-
012
513 Ide
Street
1.63 C/OS
SFR
PF/SF 4.5/ac 1 5 (AM) SFR Infill. Existing use is
one single-family
residence. Surrounding
the site is single-family
residential
development. Property
owner is Wilks Trust. Site
constraint is creek
setback.
27 006-095-
025
Valley
Road
7.32 SFR
LD
RH .67/ac 1 4 (AM) Owned by Judith
Haddox
Totals
51 AM
0 Mod
127 Low
139 VL
317 total units
Legend:
AM – Above-Moderate Income
Mod – Moderate Income
Low – Low Income
VL – Very Low Income
Note 1: Current zoning is not in compliance with the land use. A proposal to expand Alder House was recently submitted . The zoning
will be brought into compliance through this project proposal.
Source: City of Arroyo Grande, 2014
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Table 4-9 Approved Projects 2007-2014
ID# Address Very
Low Low Moderate Above
Moderate
Total
(added
across)
Status
28 Rancho Grande
(VTTM 01-001)
0 0 0 15 15
0 units
constructed
29 451 Hidden Oak Rd.
(Nester) 0 0 0 10 10 0 units
constructed
30 415 E. Branch St.
(Creekside) 0 0 2 22 24 0 units
constructed
31
Southwest corner of E. Grand
Ave. and S. Courtland St. (PSHH)
18 18 0 0 36
36 units
constructed
and
occupied
(October
2014)
32
The Pike and S. Elm St. 0 0 0 28 28 Under
construction
33 Myrtle St. & E. Cherry Ave.
(Cherry Creek) 0 0 0 28 28 19 units
constructed
34
Grace Lane 0 0 4 15 19 17 units
constructed
35 Pearwood Ave.
(Zogata) 0 0 0 2 2 0 units
constructed
36 Pearwood Ave.
(City) 0 0 0 4 4 0 units
constructed
n/a
Heights at Vista Del Mar 0 0 0 22 22 0 units
constructed
Totals
18 18 6 146 188 72 units
constructed
Source: City of Arroyo Grande, 2011
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Figure 4-1 Housing Opportunity Sites Inventory Map
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4.4 Infrastructure Resources
This section examines the availability and capacity of public facilities and services within the City
that are essential to residential development. These include water, sewer, public safety, and
schools.
Water
The City receives water from both groundwater and treated surface water. Groundwater is
extracted from two separate basins: the Santa Maria Groundwater Basin and the Pismo
Formation. The Santa Maria Basin is adjudicated, and the City currently has a right to 1,323 acre
feet per year (AFY). The Pismo Formation is not adjudicated and the City has established 160 AFY
of appropriative rights. The most significant portion of the City’s water supply is from Lopez Lake.
The City is in contract with the San Luis Obispo County Water Conservation and Flood Control
District Zone III for an entitlement of 2,290 AFY of treated surface water. The current total supply
available to the City is 3,873 AFY.
In calendar year 2013 the City used 3,111 acre feet of water, which calculates to a per capita
rate of 164 gallons per day. If the per capita water consumption remains the same, the City’s
buildout population of 20,000 would require an annual supply of 3,674 acre feet, which can be
met with the current water supply. Table 4-10 shows the current and projected water supply
through 2030.
Table 4-10 Current and Projected Water Supply – Acre feet per year (AFY)
Water Supply Sources 2010 2015 2020 2025 2030
Groundwater – Santa
Maria Groundwater Basin 1,323 1,323 1,323 1,323 1,323
Groundwater – Pismo
Formation1 80 200 200 200 200
County of San Luis Obispo
Lopez Reservoir Project 2,290 2,290 2,290 2,290 2,290
Oceano Community
Services District 2 100
TOTAL 3,793 3,813 3,813 3,813 3,813
Notes:
1. Assumes 80 AFY of groundwater from Well No. 9, 80 AFY from Well No. 10, and 40 AFY from Well No.
11 will be available as a reliable source of supply from 2015 through 2030.
2. Assumes that the remaining three years of the five year contract of 100 AFY with OCSD will be
utilized in 2012,2013 and 2014.
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The projected water supply in 2015 is 3,813 AFY when considering the loss of 100 AFY from the
OCSD and the addition of 40 AFY with Well No. 11, a net loss of 60 AFY. Additional water supply
opportunities include options of purchasing State Water or recycled water.
The 2010 Urban Water Management Plan Update proposes that water use be reduced to 149
gallons per capita per day (gpcd) to be in compliance with the California Water Code and
Senate Bill X7-7 (SB7). SB7 requires urban water suppliers using more than 3,000 acre feet per
year or serving more than 3,000 connections to reduce per capita water use by 20% by the year
2020. Strategies from the City’s Water Conservation Plan and mandatory water conservation
measures will be utilized to achieve the required reduction.
Sewer
The City maintains a sewer collection system of approximately 65 miles of sewer main and five
sewer lift stations. The collection system is managed under the guidance of the Sewer System
Management Plan and discharge permit from the State Water Resources Control Board.
The system capacity is currently being modeled with the preparation of the Wastewater System
Master Plan Update. The Master Plan will detail all system requirements including main
replacements and upgrades. The collection system conveys the sewage to the South San Luis
Obispo County Sanitation District. The District provides collection, treatment and disposal
services for the City. The treatment plant is located in Oceano and also treats sewage from the
Oceano Community Services District and the City of Grover Beach. The plant is designed to treat
an average daily flow of 4.2 million gallons per day. The current average flow is 2.9 million gallons
per day. The plant has been estimated to provide ample service until at least 2025.
Public Safety
The City of Arroyo Grande Police Department is responsible for law enforcement, investigations
and crime prevention programs with the City limits. The Five Cities Fire Authority was established
in July 2010 by a joint Powers Agreement between the Cities of Arroyo Grande, Grover Beach
and Oceano Community Services District and is responsible for providing fire protection and
medical response. The City historically has low levels of major crime or fire loss despite below
average police and fire department staffing. There are no uniform standards regarding
appropriate or adequate numbers of officers per number of residents. Average response time
with the City limits is between 4 to 6 minutes, which for some of the areas of the City is consistent
with a recognized standard of 5 minutes.
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It is generally expected that police and fire resources will improve with additional development
that generates increased tax revenues. However, with the recent shifts of local tax revenues to
the State, and decreasing State revenues being provided to local governments, additional
development may cause a decrease in public safety for the community.
Schools
School facilities for Arroyo Grande are provided by the Lucia Mar Unified School District, which
provides educational services in the South County Area, which includes Grover beach, Pismo
Beach, Oceano, Nipomo and the remaining unincorporated county. The District operates and
maintains 11 elementary schools, three middle schools, and three high schools. With the
exception of Nipomo High, recent studies have indicated that most of the schools, with the
exception of Nipomo High, were built in the 1950’s and 1960’s and thus may be subject to
needed renovation. Information provided in the Arroyo Grande General Plan EIR adopted in
1991 indicated that many of the schools were operating at an over capacity level. With the
opening of Nipomo High in 2002, the high school level capacity has been resolved.
According to the 2014 San Luis Obispo County Annual Education Report, enrollment is projected
to slightly decline due to the number of graduating seniors exceeding the amount of students
entering kindergarten. This can be attributed to a recent studies report in the San Luis Obispo
Tribune newspaper indicate that the population in the area will be shifting from families to a
more senior population, mainly because of the cost of housing. Recent State budget cuts are
also affecting the operation ability of the school district to provide education services.
4.5 Financial Resources
Many State programs exist to provide cities, communities, and counties financial assistance in
the development, preservation, and rehabilitation of units for workforce housing. The
Department of Housing and Community Development identifies and provides detailed
information on the grants and loans available for affordable and workforce housing, which are
listed below. A couple of Federal programs are included as well.
Affordable Housing Innovation Program: This program provides grants or loans to fund the
development or preservation of workforce housing.
Golden State Acquisition Fund (GSAF) Affordable Housing Innovation Program: This
program provides quick acquisition financing for the development or preservation of
workforce housing. Provides loans for developers through a nonprofit fund manager.
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http://www.hcd.ca.gov/fa/ahif/ahip-l.html
Local Housing Trust Fund Program: Matching grants (dollar-for-dollar) to local housing
trust funds dedicated to the creation or preservation of affordable housing that are
funded on an ongoing basis from private contributions or public sources that are not
otherwise restricted in use for housing programs.
http://www.hcd.ca.gov/fa/ahif/lhtf.html
American Recovery and Reinvestment Act – CDBG Recovery Program (CDBG-R): This is an
economic development grant program and includes goals of modernizing infrastructure,
improving energy efficiency, expanding educational activities, and access to healthcare.
The program disburses housing-related grants for single- and multi-family housing to rehabilitate
housing, acquire rental units, homeownership assistance, and activities complementing new
construction.
http://www.hcd.ca.gov/fa/ahif/cdbgr.html
CalHome Program: Provides grants to local agencies and nonprofit developers to assist very-low
income homeowners through deferred payment loans as well as direct, forgivable loans to assist
development projects.
www.hcd.ca.gov/fa/calhome
Emergency Solutions Grant (ESG): Provides grants to fund projects that serve homeless
individuals and families with supportive services, emergency shelter/transitional housing, assisting
persons at risk of becoming homeless with homelessness prevention assistance, and providing
permanent housing to the homeless population.
http://www.hcd.ca.gov/fa/esg/index.html
Enterprise Zone Program: Provides incentives such as sales tax credits and operation deductions
for business investment.
http://www.hcd.ca.gov/fa/ez/EZoverview.html
Governor’s Homeless Initiative: Provides loans and grants for the development of permanent
supportive housing for chronically homeless residents who suffer from severe mental illness.
www.hcd.ca.gov/fa/ghi
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HOME Investment Partnerships Program: Provides cities, counties, and nonprofit organizations
with grants and low-interest loans to create and retain affordable housing.
www.hud.gov/offices/cpd/affordablehousing/programs/home/
Infill Infrastructure Grant Program: Provides grants to assist in the creation and rehabilitation of
infrastructure that supports higher-density affordable and mixed-income housing in places
designated for infill.
http://www.hcd.ca.gov/fa/iig/
Mobilehome Park Resident Ownership Program (MPROP): Provides loans to finance the
preservation of affordable mobilehome parks by conversion to ownership or control by resident
organizations, nonprofit housing sponsors, or local public agencies.
http://www.hcd.ca.gov/fa/mprop/
Multifamily Housing Program (MHP): Provide deferred payment loans to fund the construction,
rehabilitation, and preservation of permanent and transitional rental units for supportive housing.
This includes housing for low-income residents with disabilities, or those who are at risk of
homelessness.
www.hcd.ca.gov/fa/mhp
Office of Migrant Services: Provides grants to local government agencies that contract with HCD
to operate OMS centers in California. OMS centers provide safe and affordable seasonal rental
housing and support services for migrant farmworker families.
www.hcd.ca.gov/fa/oms
Predevelopment Loan Program: Provides short-term loans for financing low-income housing
projects.
www.hcd.ca.gov/fa/pdlp
State CDBG Program Economic Development Allocation: Provides grants for planning and
technical assistance and the creation or maintenance of jobs for rural low-income workers.
http://www.hcd.ca.gov/fa/cdbg/EconDevelopment.html
State CDBG Program Community Development Allocation: Provides grants to fund housing,
public improvement, community facilities, public services, and planning and technical
assistance that benefit lower-income residents in rural communities.
http://www.hcd.ca.gov/fa/cdbg/CommunityDevelopment.html
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Local Housing Funds
The City has an inclusionary housing ordinance. Fees collected under the ordinance are kept in
the In-Lieu Affordable Housing Trust Fund. Funding from this source can be directed to affordable
housing projects in the City and/or used to leverage State and federal housing funds.
As of June 30, 2014, the In-Lieu Affordable Housing Trust Fund had funds in the amount of $81,000
devoted to affordable housing. To date, the City has allocated funds from this source for two
affordable senior housing projects. This fund will increase during the housing period as additional
projects are developed. The City also another fund used for affordable housing, the Successor
RDA Housing Function. The Successor RDA fund currently has a negative balance, as the City
recently paid HASLO for an affordable housing project at 224 S. Halcyon in June, 2014.
Another source of local housing funding is through the San Luis Obispo County Housing Trust
Fund (SLOCHTF), which is a private nonprofit corporation created to increase the supply of
affordable housing in San Luis Obispo County for very low, low and moderate income
households. SLOCHTF provides financing and technical assistance to help private developers,
nonprofit corporations and government agencies produce and preserve homes that working
families, seniors on fixed incomes and persons with disabilities can afford to rent or buy. More
information on SLOCHTF can be found at www.slochtf.org.
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Chapter 5 Housing Constraints
The price of a home is based upon several basic costs: land, materials, labor, financing rates
and insurance, government requirements and fees, as well as environmental constraints. The first
two sections of this Chapter discuss governmental constraints and environmental and public
service constraints.
The cost of land, materials, and labor are determined by the free market economy. Financing
rates and insurance costs are set by the capital markets and State and federal regulations.
These items are discussed in the last Section under nongovernmental requirements.
5.1 Governmental Constraints
The intent of this sub-section is to analyze governmental constraints that affect housing
development, as well as to identify those that may be modified to reduce barriers to the
maintenance, improvement or development of housing for all income levels.
The California Legislature has delegated to local governments specific responsibilities and a
certain amount of discretionary control over the development and use of land. Through land
use controls, development review procedures, and fees, cities influence the location, density,
type, size, quality and appearance of housing. These requirements significantly affect the cost
and availability of housing.
Many of these controls are required by local government in response to State and federal
mandates to protect public health and safety, and others are adopted to achieve the desired
quality of life and objectives of the local community.
Land Use and Development Controls
The primary policy tool for promoting a balanced use of land and resources is through the City’s
General Plan. The 2001 General Plan establishes an overall framework for development and
conservation of land in the City, primarily through the Land Use Element. State law divides the
required content of a general plan into seven distinct elements, and requires that the General
Plan be designed as a balanced, integrated document that is internally consistent. Housing is
one of seven elements and has a number of issues the City must address.
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The primary means to implement the General Plan is the Development Code, which establishes
development standards, intensity of development, and minimum site standards. Various
residential and mixed-use zones are established which are intended to implement the densities
set by the General Plan. Other requirements in the Development Code are setbacks, lot
coverage, parking, open space and other related property development standards. Table 5-1
provides a comparison of the land use designations from the General Plan Land Use Element
(including 2003 amendments) to the zones implemented by the Development Code. Table 5-1
also shows the maximum density per land use designation.
The Development Code was recently updated to include regulations that increased the
allowable height to enable higher densities. This issue was addressed through implementation of
Program B-4.1 in the 2003 Housing Element and resulting Development Code amendments.
Mixed use districts located along the East Grand Avenue corridor and South Halcyon Road allow
building heights up to 35 feet and three stories with the ability to go up to 40 feet in some districts
depending on the building size and proximity to residential development. The Industrial Mixed
Use (IMU) district along El Camino Real allows heights to 30 feet and three stories. All Multiple-
Family zoning districts remain at 30 feet or two stories. Minor Exceptions can allow up to 33 feet in
these districts. Housing types permitted by residential and mixed use zoning districts are provided
in Tables 5-2 and 5-3. Residential zone development standards are shown in Table 5-4, Multi-
family and other zones development standards are shown in Table 5-5, and Mixed-Use
development standards are shown in Table 5-6.
Multi-family projects of 2 to 4 units are permitted subject to a Minor Use Permit (MUP), which is an
administrative process. With these projects, the Architectural Review Committee (ARC) makes a
recommendation to the Community Development Director. Multi-family projects greater than 4
units require a Conditional Use Permit (CUP), which is a discretionary review process. The ARC
considers all CUPs associated with development projects and makes a recommendation to the
City Council, Planning Commission and/or Community Development Director. Design Review
(DR) permits are limited to residential subdivisions approved with specific design guidelines. The
ARC reviews DR applications for consistency with the approved design guidelines and makes a
recommendation to the Community Development Director. Chapter 2.19 of the Municipal Code
outlines the functions, duties, procedures, and guiding purposes in reviewing projects for the
ARC. The function of the ARC is to make recommendations to decision makers regarding the
administration of the provisions of Title 16 (Development Code), whenever applicable, in a
manner that will:
1. Be consistent with the requirements of the General Plan and of Title 16;
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2. Develop and maintain a pleasant and harmonious environment;
3. Promote and enhance real property values;
4. Conserve the City’s natural beauty;
5. Preserve and enhance its distinctive visual character;
6. Ensure orderly and harmonious development of the City; and
7. Preserve historic structures and neighborhoods.
The ARC meets twice per month.
Development applications are subject, in many cases, to the California Environmental Quality
Act (CEQA).CEQA requires that development applications be subject to an environmental
review of the impacts that would result from implementation of a project.
The City, as part of its 2001 General Plan, prepared a program environmental impact report (EIR)
to address the impacts of development proposed by the Plan. The anticipated residential
development evaluated in the Plan is similar to that required by the Regional Housing Needs
established for the City. The Program EIR concluded that there were several significant
environmental impacts that could not be mitigated to less than significant levels. Required
findings and statements of overriding considerations also required mitigation measures that will
influence future residential development and may require project EIRs that will increase the cost
of the development. These costs are unavoidable given the State mandated requirements of
CEQA.
Table 5-1 Urban Land Use Element and Development Code
Classification
General Plan
DU Max.
Density
Development Code Consistency
Consistent Zoning Min Lot Size
Agriculture (Ag) 1 du/10 ac.
General, Agricultural
Preserve or
Agricultural
Preservation Overlay
20 ac. (currently 10
ac. In City)
Conservation/
Open Space(C/OS)
1 du/20 ac.
1 du/10 ac.
1 du/5 ac.
OS & PF 5 ac, 10 ac, & 20
ac.
County Residential Rural (RR) 1 du/5 ac RR
1.0 du/acre
County Residential Suburban (RS) 1 du/2½ ac. RS 12,000 sf
Single Family Residential
Very Low Density (VLD) 1 du/2 ½ ac. RE 2½ ac.
Low Density (LD) 1 du/1½ ac
1 du/1 ac
RH
RR
1½ ac. (cluster)
1 ac.
Low Medium Density (LM) 2.5 du/1 ac. RS 17,000 sf
Medium Density (MD) 4.5 du/ac SF/VR 9,680 sf
Item 10.b. - Page 159
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Table 5-1 Urban Land Use Element and Development Code
Classification
General Plan
DU Max.
Density
Development Code Consistency
Consistent Zoning Min Lot Size
Multi-Family Residential
Multi-Family Residential (MFR)
Medium High Density (MHD)
Townhouse/Condo
9.0 du/ac MF 10,000 sf
Mobile Home Park (MHP) 12.0 du/ac MHP 5 ac.
High Density (HD)
Apartments 14 du/ac MFA 10,000 sf
Very High Density (VHD) 25 du/ac MFVH 20,000 sf
Mixed Use (MU)
Village Core (VC)
Office (O)
PD, SP and CF
25 du/ac See Table 5-4
Source: City of Arroyo Grande General Plan and Development Code
Table 5-2 Housing Types Permitted by Zoning District – Residential Zones
Residential Uses/Housing Type RE RH RR RS SF VR MF MFA MFVH MHP
Single-family detached P P P P P MUP P P NP NP
Small lot single-family detached NP PUD PUD PUD PUD PUD PUD NP NP NP
Single-family attached (twin home, triplex, fourplex) NP PUD NP NP PUD NP PUD PUD NP NP
Condominium (air space) NP NP NP NP NP NP C C C NP
Multiple-family attached (2 - 4 units) NP NP NP NP NP NP MUP MUP P NP
Multiple-family attached (5 or more units) NP NP NP NP NP NP C C MUP NP
Mobilehome subdivisions C C C C C C C C C C
Mobilehome parks C C C C C C C C C C
Boarding/rooming houses NP NP NP NP NP NP C C C NP
Senior independent living uses NP NP NP NP NP NP C C C NP
Congregate care, assisted living NP NP NP NP NP NP C C C NP
Convalescent care NP NP NP NP NP NP C C C NP
Residential care facility (6 or fewer persons) P P P P P P P P P P
Second residential dwelling unit P P P P P P P P P P
Small family day care (6 or fewer children) P P P P P P P P P P
Large family day care (7 or more children) P P P P P P NP NP NP NP
Homeless shelters within religious or social
organization buildings
NP NP NP NP NP NP C C C NP
Home occupations P P P P P P P P P P
Accessory use: guest quarters P C C C C C NP NP NP NP
Legend
P = Permitted C = Permitted subject to issuance of a Conditional
Use Permit
MUP = Minor Use Permit NP = Not Permitted
PUD = Permitted subject to issuance of a Planned Unit
Development Permit
Source: City of Arroyo Grande Development Code
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Table 5-3 Housing Types Permitted by Zoning District – Mixed Use Zones
Residential
Uses
IMU TMU
D-
2.11
VCD
HCO
D-2.4
VMU D-2.11
HCO D-2.4
GMU FOM
U
HMU OMU
D-2.20
RC Specific Use
Standards
Assisted Living NP NP CUP CUP CUP/P
ED
CUP/
PED
NP CUP NP
Home
occupation
NP MUP P P P P MUP P NP 16.16.090
Multi-family
housing not
located within a
mixed use
project
NP NP NP CUP CUP/P
ED
CUP/
PED
CUP
(on lots
>20,000
square
feet
CUP (on
lots
>20,000
square
feet)
NP Minimum density
(75% of total density
allowed by district)
required by Housing
Element is not
required on lots
fronting E. Grand
Ave., E. Branch Street
or in HMU or IMU
districts.
Multi-family
housing in a
mixed use
project
NP NP MUP/PE
D
MUP CUP/P
ED
CUP/
PED
CUP CUP NP Minimum density
(75% of total density
allowed by district)
required by Housing
Element is not
required on lots
fronting E. Grand
Ave., E. Branch Street
or in HMU or IMU
districts.
Residential care
facility, 6 or less
clients
NP NP MUP/PE
D
MUP MUP/
PED
MUP NP MUP NP
Residential care
facility, 7 or more
clients
NP NP CUP/PE
D
CUP CUP/P
ED
CUP/
PED
NP CUP NP
Single family
residential within
a mixed use
project
NP NP NP MUP NP NP NP NP NP
Legend
IMU = Industrial Mixed Use District (El Camino) FOMU = Fair Oaks Mixed Use District
TMU = Traffic Way Mixed Use District HMU= Highway Mixed Use District
VCD = Village Core Downtown District OMU =Office Mixed Use District
VMU = Village Mixed Use District RC = Regional Commercial District
GMU = Gateway Mixed Use District HCO = Historic Character Overlay District (Design
Overlay District 2.4)
P = Permitted Use MUP = Minor Use Permit
CUP = Conditional Use Permit PED = Residential not permitted in pedestrian
oriented storefront locations on ground floor facing
E. Grand Avenue, East/West Branch Street or prime
real estate space within shopping centers
NP = Not Permitted Source: City of Arroyo Grande Development Code
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Table 5-4 Residential Site Development Standards Single-Family Zones
RE RH RR RS SF VR
Maximum density
(DU’s per gross acre) 0.4 0.67 1.0 2.5 4.5 4.5
Minimum building site1
(Net area in sq. ft.)
92,5002 49,000 40,000
12,000(reduced
minimum building site
area allowed with
provision to
permanently preserve
sensitive habitat
and/or open space
corridors and/or to
avoid development of
steep slopes and
ridgelines)
7,200 6,750
Minimum lot width3 200 ft. 130 ft. 120 ft. 80 ft. 70 ft. 50 ft.
Minimum lot depth 250 ft. 200 ft. 200 ft. 100 ft. 100
ft. 100 ft.
Minimum front yard 50 ft. 35 ft. 35 ft. 25 ft. 20 ft. 15 ft.
Minimum interior side
yard setback
30 ft. 10% of lot
width
10% of lot
width
5 ft. one side, 10 ft.
other side
5 ft.
one
side,
10 ft.
other
side
5 ft.
Minimum street side
yard setback 30 ft. 15% of lot
width
15% of lot
width 15 ft. 15 ft. 10 ft.
Minimum rear yard
setback
50 ft. 40 ft. 25 ft. 20 ft. (For lots <12,000
sq. ft use SF)
10 ft.
(1
story)
15 ft.
(2-
story)
10 ft. (1-
story)
15 ft. (2-
story)
Maximum lot
coverage4 35% 35% 35% 30% (For lots < 10,000
sq. ft. use SF) 40% 40%
Maximum height for
buildings and
structures
30 ft. or 2 stories, whichever is less, 14 ft. for accessory buildings
Minimum distance
between buildings
(including main
dwellings and
accessory
structures)5
20 ft. 20 ft. 6 ft. 10 ft. 10 ft. 10 ft.
Source: City of Arroyo Grande Development Code
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Table 5-5 Residential Site Development Standards Multiple Family and Other Zones
MF MFA MFVH MHP
Maximum density
(DU’s per gross acre) 9.0 14.0¹ 25.0 12.0
Minimum building site
(Net area in sq. ft.) 10,000 10,000 20,000 5 acres
Minimum lot width 80 ft. 80 ft. 80 ft. 60 ft.6
Minimum lot depth 100 ft. 100 ft. 100 ft. 100 ft.6
Minimum front yard
setback 20 ft. 20 ft. 20 ft. 20 ft.
Minimum interior side yard
setback 10 ft. 10 ft. 10 ft. 5 ft.
Minimum street side yard
setback 10 ft. 10 ft. 10 ft. 15 ft.
Minimum rear yard
setback Average 15 ft.7 Average 15 ft.7 Average 15 ft.7 5 ft.
Maximum lot coverage 40% 45% 60%6 50%
Maximum height for
buildings and structures 30 ft. or 2 stories,
whichever is less,
14 ft. for
accessory
buildings
30 ft. or 2 stories,
whichever is less,
14 ft. for
accessory
buildings
30 ft. or 2 stories,
whichever is less,
14 ft. for
accessory
buildings
30 ft. or 2
stories,
whichever is
less, 14 ft. for
accessory
buildings
Minimum distance
between buildings
(including main dwellings
and accessory structures)
10 ft. 10 ft. 10 ft. 5 ft.
Source: City of Arroyo Grande Development Code
Table 5-6 Residential Site Development Standards Mixed Use Zones
IMU TMU VCD VMU GMU FOMU HMU OMU
Maximum
density –
Mixed Use
(DU’s per
gross acre)
8 8 15 15 2516 2516 2016 2016
Maximum
density –
Multi-family
housing
(DU’s per
gross acre)
n/a n/a n/a n/a 15 15 20 15
Minimum
density17 n/a n/a n/a n/a
75% of
max.
density16
75% of
max.
density16
n/a
75% of
max.
density16
Minimum
Lot Size
18,000 sf
(gross)
10,000 sf
(gross) 2,500 sf 5,000 sf 20,000 sf
(gross)
15,000 sf
(gross)
20,000 sf
(gross) 20,000 sf
Minimum
lot width 100 ft. 80 ft. 25 ft. 40 ft. 100 ft. 80 ft. 80 ft. 100 ft.
Front Yard
Setback 10 ft. 0-15 ft. 25 0-15 ft. 26 0-15 ft. 0-10 ft.218 0-10 ft.18 0-15 ft. 0-10 ft.
Rear Yard
setback 0-15 ft.9 0-15 ft.10 0-15 ft. 0-15 ft.14 0-15 ft. 0-15 ft. 0-15 ft.10 0-15 ft.
Side yard
setback 0-15 ft. 23 0 ft.10 0 ft. 0 ft.15 0-5 ft.19 0-5 ft.19 0 ft. 10 0-5 ft.
Street side
yard
setback
20 ft. 24 0-15 ft. 25 0-15 ft. 0-15 ft. 0-15 ft. 0-15 ft. 0-15 ft. 0-15 ft.
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Maximum
height
30 ft. or 2
stories
30 ft. or 3
stories11
30 ft. or 3
stories13
30 ft. or 3
stories13
35 ft. or 3
stories20
35 ft. or 3
stories20
30 ft. or 3
stories11
35 ft. or 3
stories21
Maximum
building size 102,500 sf 50,000 sf12 20,000 sf 10,000 sf 102,500 sf 50,000 sf 50,000 sf12 50,000
sf22
Site
Coverage 50% 75% 100% 100% 75% 70% 75% 70%
Floor Area
Ratio 0.45 0.75 2.0 1.0 1.5 1.0 0.75 100
Off-street
parking
and
loading Reference
Section
16.56.020
Reference
Standards
D-2.11 and
Section
16.56.020
Exceptions
allowed
by Section
16.16.120
Reference
Parking
and
Business
Improvem
ent District
Plan in
Section
16.56.020
Reference
Parking
VMU and
HCO in
Section
16.56.020
(C)
28 30 31
Referenc
e Section
16.56.020
Site design
and signs
Reference
Chapter
16.60
Reference
Standards
D-2.11 and
Chapter
16.60
Reference
Standards
for Historic
Districts
and
Chapter
16.60
Reference
Standards
for Historic
Districts
and
Chapter
16.60
27 29
Referenc
e
Standards
D-2.11
and
Chapter
16.60
32
Source: City of Arroyo Grande Development Code
Notes (Tables 5-4, 5-5, and 5-6)
1. See Table 16.32.050-A for minimum lot sizes for parcels with slope greater than seven percent.
2. Area shall be increased to five acres for slope conditions exceeding twenty (20) percent.
3. Width measurements for cul-de-sac or otherwise odd-shaped lots shall be determined on the basis of the average
horizontal distance between the side lot lines, measured at right angles to the lot depth at a point midway between
the front and rear lot lines.
4. The following floor area ratios shall be adhered to in all zoning districts in addition to lot coverage requirements:
Lot Size Floor Area Ratio (FAR)
0 — 4000 square feet net 0.35
4001 — 7199 square feet net 0.40
7200 — 11999 square feet net 0.50
12000 — 39999 square feet net 0.45
40000 + square feet net
The above FAR’s shall not apply to condominium or PUD projects where the proposed lot consists
of a building footprint.
5. Within a planned unit development, building separations may be reduced to zero feet, provided that fire walls are
provided per UBC standards.
6. The minimum parcel size within the mobile home district may be reduced to three thousand six hundred (3,600) square
feet with a minimum average width of forty (40) feet and a minimum frontage of not less than thirty (30) feet if
common open space areas and recreational facilities are provided as part of the subdivision and if the open space
areas and recreational facilities are reserved for the exclusive use of residents of the subdivision. Standards for the
provision of common open space required to permit a reduction in lot size are as follows:
(1)A minimum of five hundred (500) square feet of common open space and recreational area shall be provided
for each residential lot in the subdivision.
(2)The combined square footage of common open space, recreational area, and residential lot area, not
including public and private streets and cannon parking areas shall average not less than six thousand (6,000)
square feet per lot within the subdivision.
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(3)Open space and recreational areas shall be designated on the subdivision map, and shall be located entirely
within the subdivision.
7. For two-story buildings average rear yard setback shall be twenty (20) feet. Average includes all buildings along rear
property line and is subject to city approval.
8. New residential limited to live-work units in conjunction with allowed uses. Density determined by discretionary action.
9. 50 feet if adjacent to a residential district.
10. Wherever a lot in any commercial or mixed use district abuts a residential use or a lot in any residential use district, a
minimum building setback of twenty (20) feet measured from the property line shall be required for proposed
commercial use.
11. 30 ft. or three stories whichever is less; a maximum of 36 feet is allowable through the CUP process for visitor serving
uses.
12. A greater size may be allowed through the CUP process.
13. Maximum height is 30 feet or three stories, whichever is less; a maximum of 36 feet is allowable through the MUP
process.
14. If project is mixed use and/or abuts a residential district then 10 feet required.
15. If a project is mixed use and/or abuts a residential district, then 5 feet is required for single story structures and 110 feet
is required, on one side, for a multiple stories.
16. Based on gross project area.
17. Projects that do not front E. Grand Avenue; densities do not include density bonus. See Chapter 16.80.
18. Exceptions for larger setbacks may include entrance courtyards, areas for outdoor dining, or for projects facing a
residential district as determined through discretionary review.
19. For projects abutting a residential district, corresponding residential setback shall apply.
20. Maximum height is 35 feet or three stories whichever is less; a maximum of up to 40 feet for mixed use projects by
discretionary action on lots larger than 20,000 square feet and where the building is not adjacent to a residential
district.
21. Maximum height for mixed residential/commercial use is 35 feet or three stories whichever is less.
22. A greater size may be allowed through the CUP process.
23. Except as otherwise permitted, required rear and interior side building setback areas shall be used only for
landscaping, pedestrian walkways, driveways, off-street parking or loading, recreational activities or facilities, and
similar accessory activities.
24. Except as otherwise permitted, a street side building setback area shall be used only for landscaping, pedestrian
walkways, driveways or off-street parking.
25. Exceptions may include areas for outdoor sales determined through discretionary action.
26. Structures typically built at back of sidewalk. Exceptions include entrance courtyards and areas for outdoor dining
determined through discretionary review.
27. Commercial and mixed use projects larger than 20,000 sf.: 200 sf. of public accessible open spaces is required for
every 5,000 sf. of office or commercial spaces exclusive of areas for parking and driveways. See General Commercial
and Mixed Use Design Guidelines and Standards. General Plan Policies LU5-11. For mixed use projects, refer to Section
16.48.065. Additional sign standards also in Chapter 16.60.
28. See Design Guidelines and Standards. Parking is to be located behind buildings or to the side. Driveways along E.
Grande Avenue shall be minimized by combining driveways, using alleys or designing development so that access is
provided from local streets. See Section 16.56.020.
29. See Design Guidelines and Standards. Please note General Plan Policies LU5-11. For mixed us projects refer to Section
16.48.065. Additional sign standards are found in Chapter 16.60.
30. See Design Guidelines and Standards. Parking is to be located behind buildings or to the side. Driveways along E.
Grand Avenue shall be minimized when possible by combining driveways, using alleys or designing development so
that access is provided from local streets. See Section 16.56.020.
31. See Design Guidelines and Standards D-2.11 Exhibit ‘A’ for shared parking locations. See also Section 16.56.020.
Exceptions allowed by Section 16.16.120.
32. See OMU-D-2.20. Please note General Plan Policies LU5-11. For mixed use projects, refer to Section 16.48.065.
Additional sign standards also in Chapter 16.60.
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Building Code Requirements
The Arroyo Grande building requirements are based upon the latest version of the California
Building Code, which is a version of the International Building Code adopted by the State. The
City adopted Ordinance No. 657 on October 8, 2013 entitled: An Ordinance of the City Council
of the City of Arroyo Grande amending Arroyo Grande Municipal Code Chapter 8.04 and 8.08
related to the adoption of the California Fire Code and International Fire Code; and amending
Chapter 15.04 related to the adoption of the California Building Code, California Residential
Code, California Electrical Code, California Mechanical Code, California Plumbing Code,
California Green Building Code, California existing Building Code, California Energy Code,
California Historical Building Code and the International Property Maintenance Code. No local
amendments to the State Building Code have been adopted. Code enforcement is complaint-
based. If an infraction is found the enforcement officer provides a list of potential resources to
the homeowner. The degree and type of enforcement is described in this Ordinance. The Code
ensures safe housing and is not considered a significant constraint to housing production.
Inclusionary Housing
In 2000 (last amended in 2007), the City adopted an Inclusionary Housing Ordinance
(Development Code Chapter 16.80 Inclusionary Affordable Housing Requirements).Its
implementation resulted in the construction of 163 affordable housing units during the previous
planning periods.
According to the ordinance, any residential development of two units or more is required to
build a certain percentage of the units as affordable, pay an in-lieu fee, or donate a suitable
amount of land. The required percentages are as follows:
At least five percent very low-income units; or
At least 10 percent lower-income units; or
At least 15 percent moderate-income units where the proposed project is planned for
rental units or units that are not developed as a common interest development pursuant
to Civil Code Section 1351; or
An equivalent combination as determined by the Community Development Director.
The inclusionary units can be owner-occupied or rental units and restrictions must be put in
place to maintain their affordability for at least 45 years for owner-occupied units and 55 years
for rental units. The determination whether an applicant constructs units, pays an in-lieu fee, or
donates land is made by the City Council on a project-by-project basis.
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Allowances and incentives are available for projects with inclusionary units including density
bonuses, fee waivers or reductions, modification of development standards, and technical
assistance from the City on applying for financial subsidy programs. Establishment of these
regulations has increased the supply of affordable housing in Arroyo Grande. Increased flexibility
during the review process and with project review costs are intended to offset increased costs
and time required to meet the requirements of this inclusionary section of the Development
Code. Program F.3-1 is proposed to evaluate the effectiveness of these regulations to date and
amend Chapter 16.80 Inclusionary Affordable Housing Requirements, as deemed helpful to
increase production of affordable units.
Density Bonus Standards
The City’s density bonus program (Development Code Chapter 16.82) implements the State’s
Density Bonus Law and supports inclusionary housing. The purpose of the density bonus
requirements is to increase the production of affordable housing for very low, low and
moderate-income households as well as senior housing and mobile home developments.
Developer concessions or incentives are granted for a residential project that meets the criteria
for a density bonus projects. Incentives granted by the City include, but are not limited to:
o Flexibility in development standards;
o Approval of mixed-use zoning in conjunction with the housing project; or
o Leniency on parking ratios set forth in Government Code Section 65915
o Other regulatory incentives or concessions proposed by the City or developer.
AB 2280 became effective in September 2008.AB 2280 institutes various changes to the density
bonus law, most notably the bill amends the timing for density bonus requests, clarifies density
bonus requirements for senior housing, and institutes a 10% across the board increase in the
percentage of affordable units that must be included in a housing development project to
qualify for incentives.
The City updated their density bonus program in 2007 to be consistent with SB 1818, however
amendments are required to bring regulations into compliance with the changes made from AB
2280. Therefore, Program A.10-1 is proposed to bring the City into complete compliance with
current State density bonus law.
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Emergency Shelters and Transitional Housing
State legislation SB 2 requires jurisdictions to permit emergency shelters without a Conditional Use
Permit (CUP) or other discretionary permits, and transitional housing and supportive housing must
be considered residential uses and must only be subject to the same restrictions that apply to
the same housing types in the same zone. Programs K.2-1 and K.2-2 are proposed to amend the
Development Code to allow emergency shelters without any discretionary review (by right) in at
least one zone and to define transitional and supportive housing as required per SB2.
Secondary Dwelling Units
To encourage establishment of secondary dwelling units on existing developed lots, State law
requires cities to either adopt an ordinance based on standards set out in the law authorizing
creation of second units in residentially zoned areas, or where no ordinance has been adopted,
to allow second units if they meet standards set out in the State law. State law requires ministerial
consideration of second unit applications in zones where single-familydwellings are permitted.
Local governments are precluded from totally prohibiting second units in residentially zoned
areas unless they make specific findings (Government Code §65852.2). Second units can be an
important source of affordable housing since they are smaller than primary units and they do not
have direct land costs. Second units can also provide supplemental income to the homeowner,
thus allowing the elderly to remain in their homes or moderate-income families to afford housing.
In the City’s Development Code secondary dwelling units are referred to as a “second
residential dwellings”. A second residential dwelling is either a detached or attached dwelling
unit that provides complete, independent living facilities for one or more persons, including
permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as
the primary residence.
Table 5-5 sets out the primary standards for second residential dwellings in the City. The City’s
standards do not conflict with State law governing second units. However, having a minimum
parcel size requirement for a second residential dwelling can often be a constraint to
developing secondary units.
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Table 5-5 Second Residential Dwellings Development Standards
Standards
Second Residential Dwelling
Development
Standards
Shall comply with all zoning regulations and property development standards
of the district in which it is located.
Any proposed deviation from standards of Development Code Section
16.52.150 (Second residential dwellings) shall be processed through a
conditional use permit or minor use permit application as determined by the
Community Development Director.
Minimum Lot Size 6,750 sf
Maximum Size 50% of square footage of primary residence1
Rental of Unit Shall be occupied on month-to-month basis or longer. Either primary residence
or second residential dwelling must be occupied by owner of property
Building Separation Detached second residential dwelling - located a minimum distance equal to
twice the applicable side yard setback from primary residence.
Average Slope 20% max.
Parking 1 space/bedroom (max. 2 spaces)
Source: City of Arroyo Grande Development Code
Development Processing and Development Impact Fees
Like most cities in California, Arroyo Grande charges planning, building, and impact fees for
residential developments. Table 5-6 summarizes the planning fees charged by the Community
Development Department for processing residential applications. These fees are established by
the City Council to cover the staff and other costs associated with processing a housing
development application. These fees are comparable to other area jurisdictions and not
considered excessive.
The fees charged at the time of the issuance of a building permit for residential development
include standard building permit plan check and inspection fees as well as impact fees set by
the City. Building fees are set by the Building Code and represent the costs for plan review and
inspection of the project construction. Given the nature of these fees, they are not considered
excessive in that they are essential to ensure the health and safety of the project construction.
Impact fees cover the costs of infrastructure and public services. Given the current tax structure
the City must operate under, there are not adequate general funds to provide the services and
infrastructure necessary for new residential development, thus development impact fees must
be charged to cover the costs of the services or infrastructure requirements.
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School impact fees that have been imposed by the local school district help cover their costs to
provide additional building construction needed to support additional school population
associated with additional residential development. Development impact fees increase the cost
of housing, and proportionally affordable housing.
As an incentive to produce more affordable housing, the City eliminated or reduced
development impact fees for very low and low-income housing developments, including
second units. Water and sewer fees still apply.
Table 5-6 Schedule of Typical Fees for Residential Development
APPLICATION TYPE BASE FEES
Appeals
From Community Development Director to Planning Commission $ 263
From Planning Commission decision to City Council $ 263
Certificate of Compliance $ 788
Conditional Use Permit (CUP)
Multi Building $ 7,352
Routine (Determined by Director) $ 3,623
Amendment $ 945
Design Review $ 630
Development Agreement $3,151
Development Code Amendment
Major (Determined by Director) $ 4,201
Minor (Determined by Director) $ 2,100
EIR/Environmental Studies
5% of EIR or Environmental Doc. Contract and cost of document preparation by consultant or staff
(time and materials)
General Plan Amendment
Major (Determined by Director) $ 7,352
Minor (Determined by Director) $ 1,785
Minor Use Permit
Architectural Review $ 315
Minor Exception $ 424
Plot Plan Review $ 420
Specific Plan
Major (Determined by Director) $ 7,352
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Table 5-6 Schedule of Typical Fees for Residential Development
APPLICATION TYPE BASE FEES
Planned Unit Development
Major (Determined by Director) $ 7,352
Minor (Determined by Director) $ 3,623
Pre-Application Review
Staff Advisory Committee (per meeting) $ 263
Architectural Review Committee (per meeting) $ 263
Planning Commission (per meeting) $ 263
City Council (per meeting) $ 263
Second Dwelling Unit (see CUP)
Tentative Parcel Map (<5 lots)
Base Fee $ 1,349
Vesting $ 402
Amendment $756
Tentative Tract Map (>4 lots)
Base Fee $ 3,954
Vesting $ 1,043
Amendment $1,996
Source: City of Arroyo Grande. Community Development Department Application Fees, September 2011.
The total fees charged at Building Permit issuance for the average single family is approximately
$25,000 per unit, which includes building fees and impact fees. For condominium projects, the
estimated building and impact fees are estimated at between $18,000 and $20,000 per unit,
while the same fees for an apartment are estimated at $18,000 per unit. These fees are one of
the substantial costs of housing, but as noted above, these fees are either required by the
building code, are needed to finance infrastructure or services, or serve as mitigation for the
project impacts.
Total fees comprise approximately 5.4 percent of the home purchase price (see Table 5-7).
Given the prices of housing in the City and fees in other jurisdictions, fees charged for residential
development are not a significant factor contributing to the high housing costs in the City.
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Table 5-7 Proportion of Fee in Overall Development Cost for a Typical Residential Development
Development Cost for a Typical Unit Single Family Multiple Family
Total estimated fees per unit1 $25,000 $20,000
Median sale price per unit2 $460,000 $339,0003
Estimated proportion of fee cost to overall development
cost per unit 5.4% 5.8%
Notes
1. Source: City of Arroyo Grande, 2014.
2. Source: SLO County Homes, 20014
3. Median price for condominium in 2014
Permit Processing Timelines
Permit processing times in Arroyo Grande are comparable to other cities in the county. Most of
the processing times are a result of State mandated reviews and hearings, including the time
required for preparation of the required environmental documents. Projects requiring an EIR can
be processed in a year. Those not requiring an EIR may be processed in six months or less. While
application and permit processing times may seem excessive by some, they are generally
prescribed by law.
It should be noted that timelines can also change depending on if a proposed project is in a
Planned Development Area. Any project within a Planned Development requires City Council
approval. The 2001 General Plan Land Use Map eliminated reference to already developed
Planned Development (PD) areas, but retained vacant areas. The Development Code and
Zoning Map were updated to rezone commercial properties located in Planned Development
areas from PD 1.1 and PD 1.2 to Regional Commercial (RC).This change results in shorter permit
processing timelines for commercial projects in developed PD areas.
The goal of the City of Arroyo Grande Community Development Department is to issue a
decision within the time periods listed in Table 5-8. These time periods begin when a complete
application is submitted and are extended when additional information is requested by the City.
To assist applicants, the City provides the timeframes below for “target issuance date”—when
an applicant can expect a decision on their application, and an “initial comments due” date—
when they can expect to receive initial review comments from us.
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Table 5-8 Permit Processing Timeline
Permit Type Initial Comments Due: Target Issuance Date:
Minor Use Permit (administrative)
(Formerly Viewshed, Plot Plan, Architectural
Review, and Minor Exception permits)
14 days 21 days
Temporary Use Permit (administrative) 7 days 14 days
Administrative Sign Permit (administrative) 7 days 14 days
Conditional Use Permit (discretionary) 30 days 120 days
Lot Line Adjustment (discretionary) 30 days 90 days
Tentative Parcel Map (discretionary) 30 days 90 days
Tentative Tract Map (discretionary) 30 days 120 days
Development Code Amendment (discretionary) 30 days 120 days
General Plan Amendment (discretionary) 30 days 120 days
Specific Plan (discretionary) 30 days 180 days
Variance (discretionary) 30 days 90 days
Source: City of Arroyo Grande
On and Off-Site Improvement Requirements
Typical on and off-site improvement requirements for residential subdivisions and/or mixed-use
projects are imposed as part of the approval process for a subdivision and/or conditional use
permit application. Current improvement standards include submittal of the following
improvement plans: grading and drainage; erosion control; street improvements; curb, gutter
and sidewalk; public utilities; water and sewer; landscaping and irrigation. These improvement
plan requirements are generally based on health, safety and to a lesser extent, aesthetic issues.
As with land costs, several variables affect the amount of site improvement costs including site
topography and proximity to established roads and utilities.
The City requires that curbs, gutters and sidewalks be placed along the frontage of every lot on
which new construction is done. Many of these improvements, especially sidewalks, generally
are required to provide pedestrian access and access for the handicapped. These costs have
been estimated at $45 per linear foot for curb, gutter, and sidewalk for a standard single-family
housing subdivision. While these costs contribute to the cost of a housing unit, the improvements
required by the City are typical of all cities in the State and do not impose a significant
constraint on the development of housing in the City. City regulations are intended to generally
encourage high-quality private development and new construction.
Improvement requirements also include off-street parking standards. Table 5-9 lists applicable
parking space requirements for residential developments. In certain situations, parking
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requirements may be reduced or waived. This includes some alternative parking arrangement
options such as common parking facilities and density bonus parking reduction concessions. The
Development Code does not require bicycle parking for residential uses, however the City does
encourage bicycle parking to reduce traffic congestion and air pollution problems.
Off-street disabled/handicapped parking is required in compliance with the California Building
Code and California Code of Regulations Title 24.
Table 5-9 Residential Parking Standards
RESIDENTIAL USE PARKING STANDARD
Single-family homes
Conventional size lot 2 spaces per unit within an enclosed garage
Small lot (PUD) 2 spaces per unit within an enclosed garage and 0.5
space/unit for visitor parking
Duplexes 2 space per unit within an enclosed garage and 1
uncovered space per unit
Second residential units 1 uncovered space per unit
Townhouse and condominiums (Attached ownership units)
RESIDENT and VISITOR PARKING:
Studio 1 space per unit within an enclosed garage
1 bedroom
1 space per unit within an enclosed garage and .5
uncovered spaces per unit for developments over four
units.
2+ bedrooms
2 spaces per unit within an enclosed garage and 0.5
uncovered space per unit for developments over four
units.
Apartments and multifamily dwellings (rental units)
RESIDENT PARKING:
Studio 1 covered space per unit
1 bedroom
1 covered space per unit and 0.5 uncovered space per
unit for developments over four units
2+ bedrooms 2 covered spaces per unit and 0.5 uncovered space per
unit for developments over four units.
Senior housing - independent living
RESIDENT PARKING:
Studio 1 covered space per unit
1 bedroom 1 covered space per unit
2+ bedrooms 1 covered space per unit and 0.5 uncovered space per
unit
Senior housing - assisted living 1 uncovered space per 3 beds and 1 space per
employee on the largest work shift
Mobile home parks 2.5 uncovered spaces per unit
Large family day care facilities
1 uncovered space per staff person other than the
homeowner in addition to the required parking for the
residential building
Source: City of Arroyo Grande Development Code
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Constraints on Housing for Disabled Persons
As part of the governmental constraints analysis, State law calls for the analysis of potential and
actual constraints to the development, maintenance and improvement of housing for persons
with disabilities. Table 5-10 reviews the Development Code, land use policies, permitting
practices, and building codes to ensure compliance with State and federal fair housing laws.
Where necessary, the City proposes new policies or programs to remove constraints.
Arroyo Grande has not specifically adopted a reasonable accommodation policy or ordinance
to accommodate housing or access considerations for persons with disabilities. However, the
City does follow California’s handicap and accessibility laws through the implementation of the
2013 California Building Code, which includes the 2012 International Building Code. Program
L.2-2 is proposed to provide information about Universal Design to the development community
and to consider updating the building code to include Universal Design criteria.
Table 5-10 Constraints on Housing for Persons with Disabilities
Overarching and General
Does the City have a process for persons
with disabilities to make requests for
reasonable accommodation?
Arroyo Grande has not adopted a reasonable
accommodation policy or ordinance for persons with
disabilities in the enforcement of development and building
codes and the issuance of building permits. However, the
City allows retrofitting to increase suitability of homes for
people with disabilities. Program L.2-1 is proposed to create
a reasonable accommodation policy for the City.
Has the City made efforts to remove
constraints on housing for persons with
disabilities?
Group homes (residential care facility) of six persons or less
are permitted by right in all residential zones in the City.
Group homes of seven or more are permitted with a CUP in
the VCD, VMU, GMU, FOMU, and OMU mixed-use zones.
Does the City assist in meeting identified
needs?
Program L.2-2 is proposed to provide information about
Universal Design to the development community and to
consider updating the building code to include Universal
Design criteria.
Zoning and Land Use
Has the City reviewed all its zoning laws,
policies, and practices for compliance
with fair housing law?
Yes, the City has reviewed the land use regulations and
practices and is in compliance with fair housing laws.
Are residential parking standards for
persons with disabilities different from
other parking standards?
Does the City have a policy or program
for the reduction of parking requirements
for special needs housing if a proponent
can demonstrate a reduced parking
need?
Section 16.56.070 of the Development Code (Design and
paving standards for off-street parking facilities) mandates
the provision of disabled parking spaces in accordance
with California Building Code (part 2 of Title 24) Chapter 11.
In certain situations, parking requirements may be reduced
or waived. This includes some alternative parking
arrangement options such as common parking facilities
and density bonus parking reduction concessions
Does the locality restrict the siting of
group homes?
No. Group homes for less than six people are permitted by
right in all residential zones.
What zones allow group homes other
than those allowed by State law? Are
group home over six persons allowed?
Group homes (referred to as Residential Care Facilities in
the Development Code) of six or less individuals are
allowed by right in all residential districts. They are allowed
in the Village Core Downtown (VCD), Village Mixed Use
(VMU), Historic Character Overlay (HCO), Gateway Mixed
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Table 5-10 Constraints on Housing for Persons with Disabilities
Use (GMU), Fair Oaks Mixed Use (FOMU), and Office Mixed
Use (OMU) districts with a Minor Use Permit. Facilities with
more than 7 residents are allowed in the VCD, VMU, HCO,
GMU, FOMU, and OMU districts with a Conditional Use
Permit.
Does the City have occupancy standards
in the zoning code that apply specifically
to unrelated adults and not to families?
No
Does the land use element regulate the
siting of special needs housing in
relationship to one another?
No. There is no minimum distance required between two or
more special needs housing.
Permits and Processing
How does the City process a request to
retrofit homes for accessibility?
Arroyo Grande allows residential retrofitting to increase the
suitability of homes for people with disabilities in
compliance with ADA requirements, as permitted in the
California Code.
Does the City allow groups homes with six
or fewer persons by right in single-family
zones?
Yes
Does the City have a set of particular
conditions or use restrictions for group
homes with greater than six persons?
Group homes with greater than six persons are allowed by
Conditional Use Permit in the VCD, VMU, HCO, GMU, FOMU,
and OMU districts. They are subject to review by the
architectural review committee and are required to be
incompliance with the same parking and site coverage
requirements as multi-family uses. The City does not have a
set of conditions of approval for these facilities.
What kind of community input does the
City allow for the approval of group
homes?
Group homes (or Residential Care Facilities) of six or less
individuals are allowed by right in all residential districts.
They require no other planning approval other than to
ensure that the development conforms to the standards of
the Development Code. The facilities with more than 7
residents are allowed in VCD, VMU, HCO, GMU, FOMU, and
OMU districts with a Conditional Use Permit. The Conditional
Use Permit provides the public with an opportunity to
review the project and express their concerns in a public
hearing.
Does the City have particular conditions
for group homes that will be providing
services on site?
No, the City does not have special standards or conditions
of approval for group homes regarding services or
operation.
Building Codes
Has the locality adopted the Uniform
Building Code?
Arroyo Grande has adopted the 2013 California Building
Code, which incorporated the 2012 International Building
Code. No amendments have been made that affect the
ability to accommodate persons with disabilities.
Has the City adopted any universal
design element into the code?
With the recommendation of Program L.2-2, the City will
encourage the incorporation of universal design in new
construction.
Does the City provide reasonable
accommodation for persons with
disabilities in the enforcement of building
codes and the issuance of building
permits?
Arroyo Grande allows for reasonable accommodation for
persons with disabilities in the enforcement of building
codes and issuance of building permits. Program L.2-1 is
proposed to create a reasonable accommodation policy
for the City.
Source: City of Arroyo Grande
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5.2 Environmental Constraints and Energy Conservation
Environmental Constraints
The City adopted a General Plan Update in 2001.As part of the process of adopting the update,
a program EIR was prepared to address the environmental issues attributed to the growth
proposed. It is important to note that the General Plan Update evaluated residential growth that
is very similar to that included in the Regional Housing Needs Assessment adopted for the City of
Arroyo Grande, except that the General Plan assumes a longer planning period than the Needs
Assessment. The General Plan Update EIR concluded that there were three major environmental
impacts that were significant and could not be feasibly mitigated to less than significant: water
availability, traffic, and air quality. Thus findings and statements of over-riding consideration were
adopted. These critical issues are considered constraints on residential development as
discussed below.
Water Availability
According to the 2010 Urban Water Management Plan, the City used approximately 78 percent
of its available average annual water resources in 2010. This equates to 156 gallons per capita
per day. In March 2014, the San Luis Obispo County Board of Supervisors declared a countywide
drought emergency. These water shortfalls highlight the need for continued use of a tiered water
rate structure as well as water conservation measures. The implementation of a citywide Water
Conservation Program consists of plumbing retrofit, irrigation system assessment, enforcement of
City water conservation regulations, washing machine rebates, public information and
education programs, and irrigation system improvements or landscape modifications. If the
City’s water conservation programs continue to be successful, it is anticipated that current water
resources will be sufficient to serve the increased population proposed by the General Plan, and
thus, adequate to serve the projected population proposed by the Regional Housing Needs
Assessment.
Traffic/Circulation
The General Plan Program EIR evaluated traffic impacts, both from proposed City development
as well as regional impacts of growth. The EIR concluded that many local streets and Highway
101 will be significantly impacted. It is difficult to estimate how significant Highway 101 impacts
will be during the timeframe of the General Plan in that the improvements required to serve
much of the undeveloped land in the southeast and south portions of the City are not yet
planned and likely will not be implemented until after the Housing Element planning period.
However, there has been planning progress for Highway 101 interchange improvements in the
vicinity of Brisco Road. Despite this, additional development will cumulatively impact area
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roadways and thus is another constraint to continued regional residential development,
including within the City.
Air Quality
Like traffic/circulation, air quality has been determined in the General Plan Program EIR to be a
significant impact that cannot be mitigated to less than significant. This is a cumulative impact
attributed to additional growth, thus is considered a significant constraint to continued
residential regional development, including within the City.
Flooding
Arroyo Grande is located in a Mediterranean climate with a rainy season lasting from
approximately November to March. While rain is possible during other times of the year, these
are months where the most substantial rainfall occurs in the City. The waterways with potential
for 0.1 percent (100 year) flood events include Canyon/Meadow Creek, Corbett Canyon, Tally
Ho, Arroyo Grande, and Los Berros creeks. One of the greatest challenges for the City is
managing flood risks that begin upstream and outside City limits. One solution that has been
implemented by the San Luis Obispo County Resource Conservation District (RCD) is the creation
of a special zone. This RCD zone 1/1A provides funding for flood control projects. Severe flooding
events in 2003 indicated that additional flood control measures are required to reduce the long-
term risk.
Earthquakes and Ground-Shaking
There are two faults within the City limits – the Pismo Fault and the Wilmar Avenue Fault. The
Pismo Fault is an inactive fault, and presents a low risk to Arroyo Grande. The Wilmar Avenue
fault is a potentially active fault that runs through the City and follows Highway 101. California
defines potentially active as a fault that has experienced surface rupture within the last 1.6
million years. According to the City’s Local Hazard Mitigation Plan, the Wilmar Avenue Fault
presents a moderate risk to the City.
The greatest risk to Arroyo Grande for ground-shaking is from the San Andreas Fault and the
Hosgri Fault. The San Andreas Fault historically has caused earthquakes greater than 8.0 in
magnitude and will likely cause future earthquakes of this magnitude. In December 2003, a 6.5
magnitude earthquake from the Hosgri Fault struck northern San Luis Obispo County. This
earthquake resulted in two deaths and damage to 40 buildings.
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There are 26 buildings identified under the Unreinforced Masonry Building Law in Arroyo Grande.
The existence of these buildings led to the City establishing a mandatory strengthening program
to reduce risk from these buildings. As of 2006, all 26 buildings are in compliance with the local
strengthening program.
Landslides
A majority of Arroyo Grande is at low risk for landslides. The areas at greatest risk are hillsides
where steeper slopes are located. The potential for slope stability hazards in valley areas is low to
very low. The areas at greatest risk for landslide are just north of Highway 101 in the hillsides and
in the eastern sections of Arroyo Grande.
Energy Conservation
Planning and design to maximize energy efficiency and the incorporation of energy
conservation and green building features, contributes to reduced housing costs as well as
reduced greenhouse gas emissions. Energy efficient design community design can reduce
dependence on automobiles.
Residential water heating and heating/cooling are major sources of energy consumption. With
the application of energy efficient design and the use of solar power systems, home heating
and cooling can be operated on a more efficient and sustainable level.
By encouraging solar energy technology for residential
heating/cooling in both retrofits and new construction
the City can play a major role in energy conservation.
There are two distinct approaches to solar heating:
active and passive. The best method to encourage use
of solar systems for heating and cooling is to not restrict
their use in the zoning and building ordinances and to
require subdivision layouts that facilitate solar use.
Residential water heating can be made more energy efficient through the application of solar
water heating technologies. Solar water heating uses the sun to heat water, which is then stored
for later use, a conventional water heater is needed only as a backup. Solar water heating
systems can lower energy bills and reduce green house gas emissions.
Active Systems use mechanical
equipment to collect and transport
heat, such as a roof plate collector
system used in solar water and space
heaters.
Passive Systems use certain types of
building materials to absorb solar
energy and can transmit that energy
later, without mechanization.
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In response to legislation on global climate change, local governments are required to
implement measures that cut greenhouse gas emissions attributable to land use decisions.
Executive Order S-E-05 initiated the first steps in establishing greenhouse gas emission reduction
targets in California. This was followed by the California Global Warming Solutions Act (AB 32),
which required the California Air Resources Board (CARB) to establish reduction measures.
In November 2011, the City adopted a Climate Action Plan (CAP). In conjunction with other SLO
County jurisdictions, the City secured a $102,940 grant through the California Strategic Growth
Council for the “Central Coast Collaborative CAP Implementation and Monitoring Program”.
The collaborative implementation and monitoring program is an innovative strategy which will
help the region achieve significant GHG reductions and allow them to track these reductions
and determine overall progress toward achieving state goals. The program will provide a user-
friendly tool to record data associated with CAPs and other GHG-reducing activities, which will
result in tangible data regarding the effectiveness of GHG reduction strategies. Therefore, if
strategies are not performing as well as initially expected, corrective action can be taken
immediately to focus efforts on achieving the largest GHG reductions at the lowest cost. This
work program will also include best practices for implementation of one of the GHG reduction
strategies; an energy audit and retrofit program. The tools and best practices developed as part
of this work program will provide valuable resources which can be implemented in other local
and regional jurisdictions across the state
In addition to implanting GHG reduction programs as part of the CAP, there are several areas
where programs for energy conservation in new and existing housing units are supported by the
City:
Through application of State residential building standards that establish energy
performance criteria for new residential buildings (Title 24 of the California Administrative
Code and California Energy Commission requirements). These regulations establish
insulation, window glazing, air conditioning and water heating system requirements.
Through appropriate land use policies and development standards that reduce energy
consumption, such as promoting more compact, walkable neighborhoods, with housing
close to jobs, community facilities and shopping; planning and zoning for mixed-use and
higher density development; and permitting second units.
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The following opportunities for energy conservation are available to the City, homeowners, and
developers:
Pacific Gas and Electric (PG&E) provides a variety of energy conservation services for
residents and provides several other energy assistance programs for lower income
households. These programs include their Energy Watch Partnerships and the Charitable
Contributions Program.
o The Energy Watch Partnerships help residents lower their energy bills and promote
cleaner energy production. Through this program, PG&E has extended the reach
of effectiveness of energy efficiency programs, and provided information about
demand responses programs, renewable energy and self-generations
opportunities.
o The Charitable Contributions Program gives millions of dollars each year to non-
profit organizations to support environmental and energy sustainability. Projects
include residential and community solar energy distribution projects, public
education projects, and energy efficiency programs. The goal is to ensure that 75
percent of the funding assist underserved communities, which includes low-
income households, people with disabilities, and seniors.
PG&E also offers rebates for energy efficient home appliances and remodeling. Rebates
are available for cooling and heating equipment, lighting, seasonal appliances and
remodeling (cool roofs, insulation, water heaters). These opportunities are available to all
income levels and housing types.
The Solar Water Heating and Efficiency Act of 2007 (AB 1470) created a $250 million, ten-
year program to provide consumer rebates for solar water heating systems.
Green Building Executive Order, S-20-04 (CA 2004), the Green Building Initiative set a goal
of reducing energy use in public and private buildings by 20 percent by the year 2015, as
compared with 2003 levels. The initiative encourages residential development projects to
increase energy efficiency percentage beyond Title 24 requirements. In addition projects
could implement other green building design (i.e., natural day lighting and on-site
renewable, electricity generation). The City could also consider adopting standards that
encourage or require specific LEED standards for green building.
The California Solar Initiative required installation of 1 million solar roofs or an equivalent
3,000 MW by 2017 on homes and businesses, increased use of solar thermal systems to
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offset the increasing demand for natural gas, use of advanced metering in solar
applications, and creation of a funding source that can provide rebates over 10 years
through a declining incentive schedule. The City should access the incentives that will be
made available and provide information to developers, to encourage the installation of
solar roofs on new residential development.
Program M.1-1 has been included to incorporate newly adopted state energy efficiency
standards and to encourage alternative energy efficient technologies.
5.3 Non-Governmental Constraints
This Section provides information related to constraints to producing housing, specifically
affordable housing, that result not from governmental regulation, but from other forces affecting
the housing market. Primarily, this examines the economic factors that contribute to the price of
housing in Arroyo Grande. Other factors that have an effect on housing costs that are not
addressed are sales and marketing costs, property taxes, and developer profits.
Land Costs
Land costs vary substantially based upon a number of factors. The main influences on land value
are location and zoning, and to a degree available supply of land. Land that is conveniently
located in a desirable area that is zoned for residential uses will likely be more valuable, and thus
more expensive.
Based on local real estate sources it is estimated that the median cost per acre if unimproved
residential zoned land in the City is $332,000, ranging between $48,000 per acre and $1,200,000
per acre. Currently, some of these vacant lots are located in more rural areas and are
encouraged to be subdivided, potentially reducing the cost per acre. Improved lots can be
even more costly. The price varies due to the site zoning, with higher density zoned land being
more expensive per acre (but less per unit). Land costs present a significant constraint to the
production of affordable housing in the City.
Construction Costs
Construction costs are those incurred in actually constructing a dwelling unit. These costs can
vary depending on the location or style of development. Important determinants of construction
costs include the amenities built into the unit, materials used, the prevailing labor rate (a
significant issue with subsidized affordable housing given recent legislation), and the difficulty of
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building on the site. In Arroyo Grande, expansive soils may necessitate more extensive
foundations for housing units. According to the National Association of Home Builders 2013
Construction Cost Survey, the construction costs for a typical single-family home were estimated
at $246,500, approximately $95 per square foot.
Availability of Financing
The availability of financing affects the ability to purchase or improve homes. In the Arroyo
Grande area, 474 loan applications for home purchase or improvements were received in 2012,
of which 349 were conventional loans. Of the 349 conventional loan applications, 314 were for
home purchase and 35 were for home improvements. Only 4.9 percent of the 349 conventional
loans were denied, 11.7 percent were withdrawn or not accepted by applicant, and 54.2
percent were approved and accepted.
There were 125 applications for government assisted home purchase or improvement loans (VA,
FHA, FSA/RHS) in 2012. Of these, 52, or 41.6 percent of government assisted loans were approved
and accepted by the applicant. Table 5-11 shows the breakdown of loan applications by type,
purpose and outcome.
Table 5-11 Applications for Loans
Number Percent
Type of Loan
Total 474 173.6%
Conventional 349 73.6%
Government assisted 125 26.4%
FHA-insured 96 76.8%
VA-guaranteed 29 23.2%
Loan purpose
Conventional 349 100.0%
Home Purchase 314 90.0%
Home Improvement 35 10.0%
Government assisted 125 100.0%
Home Purchase 124 99.2%
Home Improvement 1 0.8%
Loan Outcome
Conventional 349 100.0%
Approved and accepted 189 54.2%
Denied 17 4.9%
Withdrawn or not accepted 41 11.7%
Closed/Incomplete 7 2.0%
Purchased by Institution 95 27.2%
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Table 5-11 Applications for Loans
Government assisted 125 100.0%
Approved and accepted 52 41.6%
Denied 11 8.8%
Withdrawn or not accepted 14 11.2%
Closed/Incomplete 1 0.8%
Purchased by Institution 47 37.6%
Source: Consumer Financial Protection Bureau 2012
Most (85.6 percent) applicants for government assisted loans had an annual income equivalent
to or greater than the County median income of $60,264 in 2012. Similarly, over 85.6 percent of
conventional loan applicants earned greater than the County median income. Of all originated
loans, 16.2 percent were awarded and accepted by applicants with less than median
household income.
Insurance Availability
One of the significant issues identified by the City as reported by local developers is the cost
and/or availability of workers compensation and liability insurance. These types of insurance
have become very costly or are not available at all. This is having a negative effect on the
likelihood of construction of multi-family units such as condominiums and apartments as well as a
substantial cost per unit. This situation has escalated to a point that only single-family residential
development appears profitable. This has and continues to be a constraint to multi-family and
condominium development, which are the types of housing most feasible for affordable
housing. This is a situation that needs to be addressed at the State level in that it is generally out
of the control of the City.
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Chapter 6 Review of the Previous Housing Element
This Chapter evaluates and reports on the status and implementation of the programs of the
2007-20014 Housing Element. The main purpose is to evaluate which programs were successful
and should be continued, and which programs were ineffective and should be eliminated or
modified.
Table 6-1 summarizes the City’s previous RHNA for the period from January 2007 through
December 2013 and the number of housing units built or approved during that planning period.
The City needed to account for 362 units during the 2007-2014 period. From January 2007
through December 31, 2013, the City constructed or approved 363 units and 19 second units .
The City met the above moderate income housing needs for the 2007-2014 planning period.
Table 6-1 Progress Toward Meeting Goals 2007-2014
Very Low Low Moderate Above
Moderate
Total
(added
across)
2007-2014 RHNA 84 59 67 152 362
Units Constructed/Approved 23 25 51 264 363
Second Units
Constructed/Approved 0 19 0 0 19
Remaining 2007-2014 RHNA 61 15 16 0 92
Source: Regional Housing Needs Plan 2013, San Luis Obispo Council of Governments, City of Arroyo Grande
6.1 Evaluation of 2007-2014 Housing Element Programs
Below are the programs identified in the 2007-2014 Housing Element followed by a brief
evaluation or status comment.
A.1-1. The City shall establish a five-year schedule of actions to implement the goals and
policies of the Housing Element.
Response: An implementation schedule of goals and policies are outlined in the
Housing Element but many of the programs associated with these goals and policies
have not yet been implemented.
This program will continue to be implemented.
A.1-2. Report annually on the City’s progress in meeting its fair share housing targets . Provide
the collected information to the Department of Housing and Community Development
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(HCD),development community, and non-profit housing developers. HCD provides specific
instructions and a template for the annual report.
Response: The program is on-going.
This program will be continued.
A.1-3. The City shall amend the Development Code to revise the requirements for the Traffic
Way Mixed Use District to remove the limitation to only live-work residential uses. A mix of
residential use types shall be allowed as allowed in all of 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.
Response: The City has not amended the Development Code has not yet been
amended regarding the limitations on uses nor the density in the Traffic Way Mixed Use
District.
This program will continue to be implemented.
A.2-1. The City shall continue to encourage and publicize on the City’s website the secondary
dwelling program to increase public awareness.
Response: Currently the City provides information about secondary dwelling units on
the City’s website, including development standards, procedures, and fees.
This program will be continued.
A.3-1. The City shall amend the Municipal Code to provide incentives for the development of
affordable housing projects, including expedited permitting, providing financial assistance
through the City’s Inclusionary Housing Trust Fund, requiring lot consolidation, and providing
greater flexibility in development standards.
Response: The Municipal Code has not yet been amended to include incentives for
affordable housing projects.
This program has not successfully implemented and will be continued.
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A.3-2. The City shall amend the Development Code to include the definition of “Extremely Low -
Income” as defined by Section 50093 of the California Health and Safety Code.
Response: The definition of “Extremely Low -income” has not yet been included in the
Development Code. Extremely low-income households earn 30 percent or less of the
median household income.
This program will be continued.
A.3-3. The City shall amend the Development Code to provide additional incentives specific 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; permit
streamlining procedures and development review; or financial incentives and assistance.
Response: The City has not yet amended the Development Code, regarding
additional incentives for extremely low-income housing projects.
This program will be continued.
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 AB 2280. 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) as well as evaluate proposed
Development Code amendments to assess whether they pose any constraints to developer
utilization of density bonuses.
Response: The City has not completed the Development Code amendment to
comply with recent changes to State Density Bonus Law.
This program will be continued.
A.10-2. The City shall evaluate and amend the Planned Unit Development (PUD) Permit
procedures in the Development Code (Section 16.16.060) to provide more predictable options
for small lot infill projects in the City’s Residential land use designations.
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Response: The Development Code has not been amended regarding the PUD
permit procedures.
This program will be continued.
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”.
Response: The City maintains a GIS database inventory of vacant and underutilized
“opportunity sites”.
This program has been successfully implemented and will be continued.
A.14-1. The City shall amend the Development Code to include a definition of the term
“Attainable housing.”
Response: The Development Code has not yet been amended to include the
definition of “Attainable housing”. This effort will be achieved through an “Affordable
Housing” program. The City envisions assessing whether proposed projects include
“Attainable Housing” as applications are submitted.
This program will be continued.
B.1-1. The City shall continue tracking all residential projects that include affordable housing to
ensure that the affordability is maintained for at least 45 years for owner-occupied units and 55
years for rental units, and that any sale or change of ownership of these affordable units prior to
satisfying the 45 or 55-year restriction shall be “rolled over” for another 45 or 55 years to protect
“at-risk” units.
Response: The City tracks all affordable projects through a database, inputting any
updates regarding ownership or affordability when they occur.
This program will be continued.
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B.2-1. The City shall continue to contract with the Housing Authority of San Luis Obispo (HASLO)
for the monitoring of affordable units to ensure compliance.
Response: The City has an Agreement with the Housing Authority of San Luis Obispo
(HASLO) for affordable housing eligibility verification and compliance. The City is also a
member of the San Luis Obispo Housing Trust Fund (SLOCHTF), which provides ongoing
technical assistance.
This program will be continued.
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 Inclusionary
Affordable Housing Trust Fund.
Response: The Inclusionary Affordable Housing Trust Fund will continue to devote
funds to affordable housing projects for people of extremely low, very low and low
income.
This program will be continued.
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 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.
Response: The City will continue to promote the development of affordable housing
opportunities for people of extremely low, very low and low income.
This program will be continued.
C.4-2. The City shall continue to participate in financial incentive programs established by the
San Luis Obispo County Housing Trust Fund (SLOCHTF), such as a revolving loan program.
Response: The City continues to receive local housing funding through the SLOCHTF.
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This program will be continued.
D.1-1. The City shall encourage specific plans for land within its Sphere of Influence that include
increased residential capacity for multiple-family development.
Response: Multiple family developments will continue to be encouraged through
specific plans.
This program will continue to be implemented.
E.4-1. When necessary, the City shall continue to work with property owners of deed restricted
affordable units who need to sell within 45 years of initial sale. When the seller is unable to sell to
an eligible buyer within a specified time period, equity sharing provisions are established (as per
the affordable housing agreement for the property) whereby the difference between the
affordable and market value is paid to the City to eliminate any incentive to sell the converted
unit at market rate. Funds generated would then be used to develop additional affordable
housing within the City.
Response: The City will continue to support the affordable housing agreement of
properties, working with property owners, as needed, who need to sell of deed restricted
affordable units.
This program will be continued.
F.1-1. The City shall evaluate and amend the inclusionary affordable housing requirements in
the Development Code (Chapter 16.80)based on experience using the requirements in
producing affordable units.
Potential changes to the requirements include: (1) consider contracting with a housing
management organization to manage deed-restricted affordable units in the City; (2) consider
adding incentives to encourage construction of rental units; and (3) investigate extending the
income categories served by the inclusionary requirements to extremely low income households.
The City will engage the development community during the evaluation process.
Response: The City has not amended the Development Code regarding the
inclusionary affordable housing requirements.
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This program will be continued.
F.1-2. The City shall amend the inclusionary affordable housing requirements in the
Development Code (Chapter 16.80)to eliminate inclusion of moderate-income units in the
requirements.
Response: The City has not amended the Development Code, eliminating the
inclusion of moderate-income units in the inclusionary affordable housing requirements.
This program will be continued.
F.1-3. The City shall amend the in-lieu fee as called for in the inclusionary affordable housing
requirements in the Development Code (Chapter 16.80).
Response: The City has not amended the Development Code.
This program will be continued.
G.1-1. The City shall continue to contract with the Housing Authority of San Luis Obispo (HASLO)
to maintain a mailing list of persons interested in development projects containing affordable
housing. Agendas for all City meetings related to these projects shall be mailed to persons on
the mailing list. The City shall also continue to post the agendas on the City’s website.
Response: This program will be continued.
G.1-2. The City shall encourage construction and/or rehabilitation of housing units for low, very-
low, and extremely low income households by developing and implementing incentive-based
programs such as fee reductions, fee waivers, flexible development standards, updating the
City’s second unit ordinance to reduce barriers to second units d evelopment in residential
zones, and similar programs.
Response: This program will be continued.
H.1-1. The City shall continue to contract and coordinate with the San Luis Obispo Housing
Authority to maintain and expand Section 8 rental housing assistance to qualified households.
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Response: The City coordinates with HASLO regarding Section 8 housing assistance
when needed.
This program will continue to be implemented.
H.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 and where appropriate, deed-restricted as
affordable as per the City’s Affordable Housing Program.
Response: This program will be continued.
H.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. Where necessary and feasible, extremely low, very low and
low-income residents displaced by abatement action shall be eligible for relocation assistance,
subject to Council approval.
Response: This program will be continued.
I.1-1. Written notice shall be required prior to the conversion of any units for low-income
households to market rate units in any of the following circumstances:
The units were constructed with the aid of government funding
The units were required by an inclusionary zoning ordinance
The project was granted a density bonus
The project received other incentives
The property owner should work with the City and affordable housing developers, such as
HASLO, to identify qualified buyers and/or funding prior to conversion. In cases where
conversions occur, notice shall at a minimum be given to the following:
The City of Arroyo Grande
State Department of Housing and Community Development
San Luis Obispo Housing Authority
Residents of at-risk units
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Response: This program will be continued.
I.2-1. The City shall annually monitor the status of affordable housing developments. If any
property owners indicate plans to convert affordable units to market rate pricing, or if the City
identifies market conditions indicating potential for “at risk” unit conversion, the City will contact
qualified non-profit organizations or other agencies and explore opportunities to assist and
facilitate the transfer ownership of “at risk” units.
Response: The City monitors the development of affordable housing, classifying the
development of new units based on income brackets of very low, low, moderate and
above moderate. The City will continue to ensure the availability of affordable housing
units for people of very low and low income.
This program will be continued.
J.1-1. The City shall continue to promote housing opportunities for seniors and other special
needs groups by identifying sites suitable for senior and transitional housing and considering
other incentives to promote senior and transitional housing. Single-room occupancy units (SROs)
shall be added to the use tables in the Development Code allowed in all Mixed-Use zones with a
conditional use permit. SROs shall be allowed in the MFVH zone district with a minor use permit.
Response: Within the planning period, one project included the expansion of an
existing assisted living facility by 17 units (“Alder House”). Recently, a 69 unit assisted living
facility was approved.
This program will be continued.
K.1-1. The City shall continue to participate in the South San Luis Obispo County working group
cooperating with other cities, the county and other agencies in the development of programs
aimed at providing homeless shelters and related services.
Response: The City continues to work the county and other relevant agencies in
providing homeless shelters and related services.
This program will be continued.
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K.2-1. The City shall amend the Development Code to allow emergency shelters without a
conditional use permit or other discretionary permits in appropriate locations in compliance with
SB 2, the “Fair Share Zoning” law . The Development Code amendment shall include a definition
for “emergency shelter.” Emergency shelters are currently not allowed in commercial mixed-use
districts, and are allowed through the Conditional Use Permit process in the
Condominium/Townhouse (MF), Apartments (MFA) and Multifamily Very High Density (MFVH)
residential districts. The Development Code shall be updated to require administrative approval
only for emergency shelters in the Industrial Mixed-Use (IMU) and Highway Mixed-Use (HMU)
districts. These commercial districts have sufficient capacity to house emergency shelters with
approximately 18 acres of vacant or underutilized land available. The IMU district has several
large parcels totaling almost 13.5 acres with ten (10) acres that are currently used as storage
and/or construction yards with small or no permanent structures. The HMU district has less
potential, although there are about four acres with a couple of large vacant parcels totaling
1.64 acres. About 6.36 of the 18 acres have some type of permanent structure on the individual
parcels, but could be redeveloped to accommodate transitional housing. Transitional and
supportive housing shall be defined as residential uses subject to the same standards that apply
to other housing.
The Development Code can include locational and operational criteria for emergency shelters
such as:
• Proximity of public transit, supportive services, and commercial services;
• Hours of operation;
• External lighting and noise;
•Provision of security measures for the proper operation and management of a proposed
facility;
• Measures to avoid queues of individuals outside proposed facility; and
• Compliance with county and State health and safety requirements for food, medical, and
other supportive services provided onsite.
Such criteria can act to encourage and facilitate emergency shelters and transitional housing
through clear and unambiguous guidelines for the application review process, the basis for
approval, and the terms and conditions of approval.
The City will solicit input from local service providers and the South San Luis Obispo County
working group in the preparation and adoption of the amendment to the Development Code
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to ensure that development standards and permit processing will not impede the approval
and/or development of emergency and transitional housing.
Response: The Development Code has been amended to establish emergency
shelters without a conditional use permit and to define transitional and supportive
housing as a residential use subject to the same restrictions of a residential use in the
same zone.
This program has been implemented.
K.2-2. The City shall implement an overnight parking program for the homeless in appropriate
zoning districts.
Response: An overnight parking program has not yet been implemented. A pilot safe
overnight parking program was approved through a Temporary Use Permit (TUP) at St.
Barnabas church in 2012. Observations from the pilot program were as follows: the
program was not fully utilized (only 3 applications were submitted to participate in the
program, one of which met the program criteria and was approved); there were no
reported incidents specific to the program; there were no violations of any conditions of
the TUP; and neighbors remained concerned that their neighborhood would be
impacted by the program. The program was discontinued at the request of the church.
This program will be continued.
L.1-1. The City shall explore models to encourage the creation of housing for persons with
disabilities, including developmental disabilities. Such models could include coordinating with
the Tri-County Regional Center and other local agencies in encouraging affordable housing
projects to dedicate a percent of housing for disabled individuals; assisting in housing
development; providing housing services that educate, advocate, inform, and assist people to
locate and maintain housing; and models to assist in the maintenance and repair of housing for
persons with developmental disabilities.
Response: The City will continue to explore models to encourage development of
housing for persons with disabilities.
This program will continue to be implemented.
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L.2-1. The City shall create a policy or amend the Development Code to provide persons with
disabilities seeking equal access to housing an opportunity to request reasonabl e
accommodation in the application of City building and zoning laws.
Response: The City has not amended the Development Code to provide an
opportunity to request reasonable accommodation for persons with disabilities.
This program will be continued.
L.2-2. The City will have brochures on universal design available at the Community
Development Department front counter. The City will also consider updating the building code
to encourage use of universal design in home design. Universal design is based on the precept
that throughout life, all people experience changes in their abilities. The goal of universal design
is to provide environments that are usable by all people, to the greatest extent possible, without
the need for specialization in design and construction and/or facilitate change in occupancy
over time.
Response: The City has not yet made progress promoting the universal design
concept.
This program will be continued.
M.1-1. The City shall continue working to implement a water and electrical retrofit program for
existing housing units. A plumbing retrofit program was established in 2004, and water
conservation rebate programs were established in 2009. The City will continue to work with PG&E
and other agencies to establish an electrical retrofit program.
Response: The City has continued to promote Water Conservation Incentive
programs, including the Plumbing Retrofit Program as well as rebate and education
programs. The City has also been involved in the San Luis Obispo County Energy Watch,
a joint project between San Luis Obispo County, Pacific Gas and Electric Company and
Southern California Gas Company. In 2013 the City adopted a Climate Action Plan and
partnered with San Luis Obispo County jurisdictions to receive a California Strategic
Growth Council grant to develop an implementation and monitoring program. The
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program provides tools and best practices for implementing all CAP programs, such as
the energy audit and retrofit program.
This program will be modified and continued.
M.1-2. The City shall establish a program to allow residential projects to receive minor
exceptions if they meet 25% of items on the Tier 1 list of the California Green Building Code (Title
24) or 15% of items on the Tier 2 list of that code.
Response: The City has yet to establish a program regarding minor exceptions for
residential projects that meet a minimum number of items from the California Green
Building Code.
This program will be continued.
N.1-1. The City will continue to promote the enforcement of policies of the State Fair
Employment and Housing Commission, and shall resolve housing discrimination complaints
through assistance from HUD, and/or local, regional private fair housing organizations. The City
will prepare a brochure that promotes equal housing opportunities and addresses discrimination .
The brochure will be available at the Community Development department and a link to
download the brochure will be placed on the City’s website. In addition the City shall
disseminate information in one or more of the following ways to ensure the public is aware of Fair
Housing Law:
• Distribute materials to property owners and apartment managers twice a year.
• Make public service announcements through multiple media outlets including
newspaper, radio, television, and social media to run on a regular basis.
• Conduct public presentations with different community groups once or twice a year.
Response: The City has not yet prepared a brochure to promote equal housing
opportunities and address discrimination or disseminated information about the Fair
Housing Law to the public.
This program will be continued.
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O.1-1. Prior to any public hearing where the City is considering amending or updating its
Housing Element or housing policies, the City will notify all local housing organizations, as well as
social service agencies, and post notices at significant locations.
Response: The City will continue to notify the necessary organizations, agencies and
other parties when amending or updating the Housing Element or housing policies.
This program will be continued.
P.1-1. Following amendment of the General Plan Conservation/Open Space and Safety
Elements to comply with AB 162 related to floodplain mapping, the City will amend the Housing
Element if needed for consistency.
Response: The City has not yet amended the General Plan Conservation and Safety
Elements to comply with AB 162. Following any amendments, the Housing Element will be
modified, as necessary.
This program will be continued.
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APPENDIX A
BIBLIOGRAPHY
California Department of Housing and Community Development, Income Limits, June 2011.
California Department of Housing and Community Development, Housing Element Questions and Answers,
June 2001
City of Arroyo Grande, adopted Housing Element, 2007
City of Arroyo Grande, Urban Water Management Plan, 2010
City of Arroyo Grande, Housing Element, June 1993
City of Arroyo Grande, 2001 General Plan Policy Document and Elements, October 2001
City of Arroyo Grande, 2001 General Plan Integrated Program Environmental Impact Report, May 2001
Craigslist, current rental prices in Arroyo Grande for studios and granny units, July 2011
San Luis Obispo Council of Governments, Regional Housing Needs Plan, June 2013
San Luis Obispo County, Department of Planning and Building, Affordable Housing Standards, February
2014.
San Luis Obispo County, Tribune Newspaper, SLO County home sales decline, but median price rises in
May, June 24, 2014.
Taylor, H. Economics and Housing Policy National Association of Builders
Tri-Counties Regional Center, 2012 Performance Report for Tri-Counties Regional Center, retrieved from
http://www.tri-counties.org/phocadownload/tcrcpcyearendrpt-2012.pdf
United States Department of Commerce, Bureau of the Census, 2006-2010 ACS Estimates
United States Department of Commerce, Bureau of the Census, 2010
United States Department of Commerce, Bureau of the Census, 2000
United States, Department of Housing and Urban Development (HUD),2007-2011 Comprehensive Housing
Affordability Strategy (CHAS), retrieved
fromhttp://www.huduser.org/portal/datasets/cp/CHAS/data_querytool_chas.html . .
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