2020-10-06_9a HEU Study SessionMEMORANDUM
TO: PLANNING COMMISSION
FROM: WHITNEY McDONALD, CITY MANAGER/ ACTING COMMUNITY
DEVELOPMENT DIRECTOR
BY: ANDREW PEREZ, ASSOCIATE PLANNER
SUBJECT: STUDY SESSION FOR THE PLANNING COMMISSION TO REVIEW AND
RECEIVE COMMENT AND PROVIDE DIRECTION ON DRAFT HOUSING
ELEMENT UPDATE; GENERAL PLAN AMENDMENT 19-002
D ATE: OCTOBER 6, 2020
SUMMARY OF ACTION:
Feedback from the Planning Commission and the community will provide input regarding
the Draft 2020 Housing Element Update (HEU) that will be submitted to the State for
review and conditional certification.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
Review and feedback on the HEU will not impact financial and personnel resources.
Funding for preparation of the HEU by the City’s contractor, PlaceWorks, is provided
through grant funding from the State under SB 2.
RECOMMENDATION:
It is recommended that the Planning Commission take public comment, provide direction
to staff, and direct staff to submit the HEU to the State for review and conditional
certification.
BACKGROUND:
The City’s Housing Element is one of eight (8) mandatory elements of the Arroyo Grande
General Plan and is a critical component of the City’s blueprint to providing affordable
housing opportunities in the community. State law mandates that a Housing Element
identify and analyze projected housing needs, identified goals, policies, programs, and
quantitative objectives to further the development of housing within the City. Updates to
the Housing Element occur on regular schedules, typically referred to as cycles. The
current Housing Element was adopted in March 2016, and covers the period between
June 30, 2014 – June 30, 2019. The next cycle will cover the period of December 30,
2020, through December 31, 2028.
Unlike other elements of the General Plan, the Housing Element must be reviewed and
certified by the California Department of Housing and Community Development (HCD).
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OCTOBER 6, 2020
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The review period with HCD is sixty days. At the conclusion of that period, HCD will
provide comments and may request modifications, along with a conditional certification.
The certification is typically conditioned upon any identified modifications being
incorporated into a final revised Housing Element that will be reviewed by the Planning
Commission and adopted by the City Council.
On November 12, 2019, City Council authorized a consultant services agreement with
PlaceW orks to update the Housing Element. The process of updating the Housing
Element began with a vacant sites analysis and review of the previous Housing Element’s
programs. PlaceWorks, in conjunction with staff, then prepared the Draft Housing
Element (Attachment 1). Following review and comment by the Planning Commission,
the Draft Housing Element will be submitted to HCD for review and conditional
certification. When comments from HCD are returned, the HEU will return to the Planning
Commission seeking a recommendation for adoption by the City Council. The process
will conclude with a City Council meeting to consider adoption of the Housing Element.
After adoption by City Council, the document must then be resubmitted to HCD for final
certification.
ANALYSIS OF ISSUES:
Regional Housing Needs Allocation
In addition to meeting the requirements of State law, updating the Housing Element allows
the City the opportunity to identify housing goals and policies to address the future
housing needs within the City. The update will review progress of programs from the
current Housing Element, assess housing constraints, and identify strategies to meet the
City’s Regional Housing Needs Allocation (RHNA). The RHNA represents the number of
housing units the City needs to plan for over the next eight (8) years, broken down into
four (4) income categories.
HCD determines the housing need for the region using population growth projections.
The San Luis Obispo Council of Governments (SLOCOG) then develops a methodology
to distribute the regional need among each of the seven cities and the unincorporated
portions of San Luis Obispo County. Based on the RHNA process for this housing element
cycle, Arroyo Grande is required to plan for 692 of the 10,810 units assigned to San Luis
Obispo County as a whole. The 692 units are broken down by income level, as shown in
Table 1 below.
Table 1: Regional Housing Needs Allocation by Income Level
Income Category Number of Units
Very Low Income 170
Low Income 107
Moderate Income 124
Above Moderate Income 291
Total 692
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OCTOBER 6, 2020
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State law does not require construction of the 692 units, but requires the Housing Element
to show that the City can accommodate those units through available land and zoning
designation. Additionally, the 162 housing units that were constructed or approved in
2019 count towards the 6th cycle RHNA allocation. Table 2 illustrates how the remaining
530 units can be accommodated through development of vacant parcels, redevelopment
of non-vacant parcels, and construction of ADUs, as described further in the draft HEU.
Table 2 – RHNA Accommodation
Extremely
Low
Very Low Low Moderate Above
Moderate
Total
Vacant Land
Inventory 56 8 59 123
Non-vacant
Land
Inventory
57 0 0 57
ADU Unit
Potential 0 0 131 105 114 350
Leftover
RHNA
Allocation
530
State Legislation
The policies and programs contained in the draft HEU demonstrate how the City will
comply with State housing law. Housing Element goals are general statements of purpose
and indicate a direction the City will take with respect to identified housing problems.
Policies are statements of intent regarding the various housing issues identified and
provide a link between the goals and the programs. The programs are the steps to be
taken to implement the policies and achieve the quantified objectives.
The draft HEU reduces the overall number of programs from 45 in the current element,
to 39 in the current draft. Programs from the current element that remain relevant have
been carried over into the update, while programs that were redundant are combined with
similar programs. Programs that either accomplished the quantified objective or are
inconsistent with State housing laws were deleted. The following new programs have
been added to the draft HEU to comply with recent housing legislation:
• Program A.1-1 (AB 1397)
• Program F.1-3 (SB 35)
• Program J.2-2 (AB 2162)
• Program J.2-3 (AB 101)
• Program M.1-2 (AB 686)
Aside from the new programs added for the sake of consistency with State law, the HEU
contains three (3) new programs. Staff identified accessory dwelling units (ADUs) as a
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OCTOBER 6, 2020
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critical element to meet the City’s future housing needs. To encourage the construction
of ADUs, the HEU contains two (2) new programs and expands one existing program.
These programs encourage ADU development through several different avenues.
Program A.2-1 calls for streamlining the development process through the
implementation of a stock ADU plan program. The program also calls for expanded
marketing of ADU regulations and tracking the number of units built. Tracking the number
of units built can provide information to the City about whether the marketing needs to be
refocused to encourage more applications. Program A.2-2 will establish an amnesty
program to facilitate the process of bringing unpermitted ADUs into compliance with local
regulations. Finally, Program A.3-3 potentially reduces, defers, or waives fees associated
with ADU construction. Program D.1-2 is also a new program in the HEU. This program
aims to review the parking standards for affordable and senior housing developments and
reduce those standards as much as possible. Reducing parking standards removes a
governmental imposed constraint for affordable and senior housing projects.
Regional Chapter
The County and all seven cities in San Luis Obispo County collaboratively developed the
first Regional Infrastructure and Housing Strategic Action Plan (Regional Plan) that will
identify actions needed to address housing and resiliency issues. The Regional Plan is
the integration of efforts to address critical housing and related infrastructure needs
throughout the County. Representatives of the County, each of the seven cities, and
SLOCOG developed this regional chapter to be integrated into each jurisdiction’s Housing
Element and is aimed at highlighting the ongoing commitment of each agency to this
collaborative effort.
The Regional Vision for Housing is included in Chapter 6 of the Housing Element and
contains the regional vision and policies focused specifically on fostering regional
collaboration to plan and develop housing and supportive infrastructure. The regional
effort is an ongoing and iterative process. Identifying regional funding opportunities will
be a collaborative process with the input of all eight jurisdictions and is subject to changes
based on funding opportunities and identified needs. The regional partners are committed
to improving the jobs/housing balance throughout the region and identifying infrastructure
projects and housing opportunities that support these integrated efforts. This San Luis
Obispo Countywide Regional Compact, which was adopted by each jurisdiction in early
2020, established the framework for the six (6) shared regional goals to guide
collaborative resolution of underlying housing and infrastructure needs.
Study Session & Next Steps
The Planning Commission is being asked to review and comment on the draft HEU, its
policies, programs, and overall strategy to meet the City’s RHNA. With a recommendation
from the Commission, staff will submit the draft HEU to HCD to obtain conditional
certification during the 60-day review period. HCD will provide comments on the draft
HEU, to which staff will respond prior to returning to the Planning Commission. A complete
list of tasks is provided in Table 3.
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STUDY SESSION FOR THE PLANNING COMMISSION TO REVIEW AND RECEIVE
COMMENT AND PROVIDE DIRECTION ON THE 2020 DRAFT HOUSING ELEMENT
OCTOBER 6, 2020
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Table 3: Schedule of Tasks
Task Target Date
Prepare Administrative Draft Housing Element July 2020
City Review of Administrative Draft August 2020
Prepare Public Draft Housing Element September 2020
Draft Environmental Document Sept.-Oct. 2020
Workshop with Planning Commission October 6, 2020
Submit Draft to HCD (60-day Review) Oct. – Dec. 2020
“Conditional Compliance” from HCD December 2020
Final Housing Element/Final Environmental Document December 2020
Planning Commission/City Council Adoption Hearings December 2020
Submit Adopted Housing Element to HCD (90-day Review) Dec. 2020-Mar. 2021
Public Outreach
The study session also provides an opportunity for the Planning Commission and staff to
receive public comment on the draft HEU. The draft HEU was made available to the public
on September 21, 2020, when it was posted on the City’s website. Public comment
received prior to the meeting is included as Attachment 2. E-mail notifications were sent
to regional housing stakeholders. Staff sent early consultation notices to ten (10) local
Native American tribes in accordance with SB 18 and AB 52. No responses requesting
consultation were received in response to those notices.
ADVANTAGES:
This study session provides a forum community input and participation in the process of
updating the City’s Housing Element. Review by the public and the Commission helps
guide development of the HEU.
DISADVANTAGES:
None identified.
ENVIRONMENTAL REVIEW:
The HEU requires environmental review pursuant to the California Environmental Quality
Act. An addendum to the Environmental Impact Report (EIR) prepared for the 2016
Housing Element is currently underway to satisfy that requirement. The addendum and
the 2016 Housing Element EIR will be presented to the Planning Commission with the
Final HEU.
PUBLIC NOTIFICATION AND COMMENT:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
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STUDY SESSION FOR THE PLANNING COMMISSION TO REVIEW AND RECEIVE
COMMENT AND PROVIDE DIRECTION ON THE 2020 DRAFT HOUSING ELEMENT
OCTOBER 6, 2020
PAGE 6
Attachments:
1. Draft Housing Element
2. Public Comment
3. Powerpoint Presentation
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SEPTEMBER 2020
PUBLIC DRAFT
CITY OF
ARROYO GRANDE
2020-2028
HOUSING
ELEMENT UPDATE
FOR THE
CITY OF ARROYO GRANDE
ATTACHMENT 1
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SEPTEMBER 2020
PUBLIC DRAFT
ORANGE COUNTY • BAY AREA • SACRAMENTO • CENTRAL COAST • LOS ANGELES • INLAND EMPIRE • SAN DIEGO
www.placeworks.com
Prepared By:
P.O. Box 1316
San Luis Obispo, California 93406
t 805.457.5557
CITY OF ARROYO GRANDE
2020-2028 HOUSING ELEMENT UPDATE
FOR THE CITY OF ARROYO GRANDE
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Table of Contents
CHAPTER 1 – INTRODUCTION ....................................................................................................................................... 1
1.1 PURPOSE ........................................................................................................................................................ 1
1.2 RELATIONSHIP TO CITY GENERAL PLAN ............................................................................................................... 2
1.3 ORGANIZATION OF HOUSING ELEMENT............................................................................................................... 2
1.4 PUBLIC PARTICIPATION ..................................................................................................................................... 2
CHAPTER 2 – GOALS, POLICIES, PROGRAMS, AND QUANTIFIED OBJECTIVES ......................................................... 3
2.1 HOUSING ELEMENT GOALS, POLICIES, AND PROGRAMS ....................................................................................... 3
2.2 SUMMARY OF QUANTIFIED OBJECTIVES ............................................................................................................ 22
CHAPTER 3 – BACKGROUND INFORMATION ............................................................................................................ 23
3.1 INTRODUCTION ............................................................................................................................................. 23
3.2 DEMOGRAPHIC OVERVIEW ............................................................................................................................ 26
3.3 HOUSING CHARACTERISTICS ........................................................................................................................... 33
3.4 HOUSING AFFORDABILITY ............................................................................................................................... 37
3.5 SPECIAL HOUSING NEEDS GROUPS .................................................................................................................. 41
3.6 AT-RISK HOUSING UNITS ................................................................................................................................. 48
CHAPTER 4 - HOUSING RESOURCES .......................................................................................................................... 51
4.1 REGIONAL HOUSING NEEDS DETERMINATIONS ................................................................................................... 51
4.2 2020–2028 REGIONAL HOUSING NEEDS ALLOCATION ..................................................................................... 52
4.3 LAND AVAILABILITY ........................................................................................................................................ 54
4.4 INFRASTRUCTURE RESOURCES .......................................................................................................................... 63
4.5 FINANCIAL RESOURCES .................................................................................................................................. 65
4.6 ADMINISTRATIVE RESOURCES ........................................................................................................................... 68
CHAPTER 5 – HOUSING CONSTRAINTS ...................................................................................................................... 69
5.1 GOVERNMENTAL CONSTRAINTS ...................................................................................................................... 69
5.2 ENVIRONMENTAL CONSTRAINTS AND ENERGY CONSERVATION ............................................................................ 91
5.3 NON-GOVERNMENTAL CONSTRAINTS .............................................................................................................. 95
CHAPTER 6 - REGIONAL VISION FOR HOUSING ...................................................................................................... 97
OVERVIEW ......................................................................................................................................................... 97
ALIGNMENT WITH REGIONAL COMPACT................................................................................................................. 97
POLICIES ............................................................................................................................................................ 98
MOVING FORWARD ............................................................................................................................................ 99
CHAPTER 7 – REVIEW OF THE PREVIOUS HOUSING ELEMENT .................................................................................. 101
APPENDIX
ELIGIBILITY LIST
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List of Tables
TABLE 2-1 QUANTIFIED OBJECTIVES BY INCOME GROUP ........................................................................................ 22
TABLE 3-1 TRENDS IN POPULATION GROWTH ............................................................................................................ 26
TABLE 3-2 POPULATION GROWTH PROJECTIONS...................................................................................................... 26
TABLE 3-3 TRENDS IN POPULATION AGE .................................................................................................................... 27
TABLE 3-5 TRENDS IN HOUSEHOLD GROWTH ............................................................................................................. 28
TABLE 3-6 HOUSEHOLD TENURE .................................................................................................................................. 29
TABLE 3-7 TRENDS IN HOUSEHOLD INCOME ............................................................................................................. 30
TABLE 3-8 EMPLOYMENT GROWTH PROJECTIONS .................................................................................................... 30
TABLE 3-9 SAN LUIS OBISPO-PASO ROBLES-ARROYO GRANDE METROPOLITAN STATISTICAL AREA PROJECTIONS
OF EMPLOYMENT ........................................................................................................................................................ 31
TABLE 3-10 LARGEST EMPLOYERS ............................................................................................................................... 32
TABLE 3-11 INDUSTRY PROFILE.................................................................................................................................... 32
TABLE 3-12 COMMUTE PATTERNS ............................................................................................................................... 33
TABLE 3-13 TRENDS IN HOUSING TYPE ....................................................................................................................... 33
TABLE 3-14 VACANT UNITS BY TYPE, 2017 ................................................................................................................. 34
TABLE 3-15 VACANCY RATES ..................................................................................................................................... 35
TABLE 3-16 OVERCROWDING BY TENURE .................................................................................................................. 35
TABLE 3-17 YEAR STRUCTURE BUILT ............................................................................................................................ 36
TABLE 3-18 MARKET RENTAL RATES BY UNIT TYPE ...................................................................................................... 38
TABLE 3-19 SAN LUIS OBISPO COUNTY HOUSING AFFORDABILITY .......................................................................... 39
TABLE 3-20 TOTAL HOUSEHOLD OVERPAYMENT BY INCOME, 2015 ........................................................................ 40
TABLE 3-21 SENIOR HOUSEHOLDS .............................................................................................................................. 41
TABLE 3-22 HOUSING PROBLEMS FOR FEMALE HEAD OF HOUSEHOLDS ................................................................. 42
TABLE 3-23 TENURE BY HOUSEHOLD SIZE ................................................................................................................... 42
TABLE 3-24 HOUSING PROBLEMS FOR LOWER-INCOME HOUSEHOLDS ................................................................... 43
TABLE 3-25 PERSONS WITH A DISABILITY BY DISABILITY TYPE ................................................................................... 44
TABLE 3-26 PERSONS WITH A DISABILITY BY EMPLOYMENT STATUS, 2013-2017 ...................................................... 45
TABLE 3-27 DEVELOPMENTALLY DISABLED PERSONS ................................................................................................ 46
TABLE 3-28 DEVELOPMENTALLY DISABLED RESIDENTS BY RESIDENCE TYPE ............................................................. 47
TABLE 3-29 HOMELESSNESS, SAN LUIS OBISPO COUNTY .......................................................................................... 48
TABLE 3-30 INVENTORY OF ASSISTED UNITS .............................................................................................................. 48
TABLE 4-1 INCOME GROUP ........................................................................................................................................ 51
TABLE 4-2 HOUSING NEED ALLOCATION BY INCOME CATEGORY.......................................................................... 52
TABLE 4-3 INCOME LIMITS, COUNTY OF SAN LUIS OBISPO ...................................................................................... 52
TABLE 4-4 CITY SHARE OF REGIONAL HOUSING NEED 2019–2028 .......................................................................... 53
TABLE 4-5 REMAINING RHNA, 2019–2028 ................................................................................................................. 54
TABLE 4-6 LAND INVENTORY ...................................................................................................................................... 57
TABLE 4-7 CURRENT AND PROJECTED WATER SUPPLY – ACRE-FEET PER YEAR (AFY) .............................................. 63
TABLE 5-1 URBAN LAND USE ELEMENT AND DEVELOPMENT CODE .......................................................................... 70
TABLE 5-2 HOUSING TYPES PERMITTED BY ZONING DISTRICT – RESIDENTIAL ZONING DISTRICT ............................. 72
TABLE 5-3 HOUSING TYPES PERMITTED BY ZONING DISTRICT – MIXED-USE ZONING DISTRICT ............................... 73
TABLE 5-4 RESIDENTIAL SITE DEVELOPMENT STANDARDS SINGLE-FAMILY ZONING DISTRICTS............................... 75
TABLE 5-5 RESIDENTIAL SITE DEVELOPMENT STANDARDS MULTIPLE-FAMILY AND OTHER ZONING DISTRICTS ....... 76
TABLE 5-6 RESIDENTIAL SITE DEVELOPMENT STANDARDS MIXED-USE ZONING DISTRICTS ...................................... 76
TABLE 5-8 SCHEDULE OF TYPICAL FEES FOR RESIDENTIAL DEVELOPMENT ............................................................... 83
TABLE 5-9 SCHEDULE OF TYPICAL DEVELOPMENT IMPACT FEES FOR RESIDENTIAL DEVELOPMENT ........................ 84
TABLE 5-10 PROPORTION OF FEE IN OVERALL DEVELOPMENT COST FOR A TYPICAL RESIDENTIAL DEVELOPMENT
84
TABLE 5-11 PERMIT PROCESSING TIMELINE ............................................................................................................... 85
TABLE 5-12 RESIDENTIAL PARKING STANDARDS ........................................................................................................ 87
TABLE 5-13 CONSTRAINTS ON HOUSING FOR PERSONS WITH DISABILITIES ............................................................ 89
TABLE 5-14 APPLICATIONS FOR LOANS ..................................................................................................................... 96
TABLE 6-1 REVIEW OF 2014-2019 HOUSING ELEMENT PROGRAMS ........................................................................ 102
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List of Figures
FIGURE 3-1 REGIONAL LOCATION MAP .................................................................................................................... 24
FIGURE 3-2 SOUTH COUNTY LOCATION MAP ........................................................................................................... 25
FIGURE 3-3 CHANGE IN POPULATION AGE, 2010 TO 2017 ...................................................................................... 27
FIGURE 3-4 MEDIAN HOME PRICES TREND, ARROYO GRANDE AND COUNTY ....................................................... 38
FIGURE 4-1 HOUSING OPPORTUNITY SITES INVENTORY MAP ................................................................................... 61
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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 government
and the private sector 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 California Department of Housing and Community Development (HCD) guidelines for
the implementation of Article 10.6. This document replaces the Housing Element adopted by the
City of Arroyo Grande on March 22, 2016. The Housing Element planning period will begin
December 31, 2020, and will last through December 31, 2028.
This Housing Element includes all 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 condition of the units. Other areas addressed 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-related efforts by the City and an analysis of their success
or failure.
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1.2 Relationship to City General Plan
Housing elements are one of eight 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 very specific about the content of housing elements. The housing element is also the
only part of the general plan that is subject to mandatory deadlines for periodic updates that
include a review and “certification” by HCD.
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 in the plan. No
disadvantaged unincorporated communities exist in Arroyo Grande’s sphere of influence, so no
updates to the General Plan are needed to comply with Senate Bill (SB) 244. As portions of the
General Plan are amended in the future, the Housing Element will be reviewed to ensure internal
consistency.
1.3 Organization of Housing Element
As noted previously, 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 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 sets forth a set of regional goals and
policies developed in coordination with the County of San Luis Obispo, the San Luis Obispo Council
of Governments, and all seven incorporated cities in the County. Chapter 7 reviews the past
housing efforts as proposed in the 2014–2019 Housing Element.
1.4 Public Participation
[This section will be drafted once public participation occurs]
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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 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, December
31, 2020, to December 31, 2028 (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 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 use the following incentives for the production of affordable
housing: (a) allowing accessory dwelling units under specified criteria; (b) allowing
manufactured housing on legal parcels in all residential zoning districts; (c) allowing
density bonuses for very low- and low-income housing, senior housing projects, and
any other project types called for under state law.
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 multifamily residential zoning district, 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.
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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.
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 use and expand the density bonus program to encourage
affordable housing supply.
A.12. The City shall continue to maintain 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 pursue program assistance for first-time home buyers.
Programs:
A.1-1. To comply with Assembly Bill (AB) 1397, the Development Code shall be amended to allow
Assessor’s Parcel Numbers (APNs) 077-011-010, 077-204-028, 077-211-022, and 077-221-031
in the land inventory in this sixth-round Housing Element to be developed for residential use
by-right, in accordance with California Government Code Section 65583.2(c). This zoning
change is necessary because parcel 077-011-010 which is vacant was included in the
City’s fourth- and fifth-round Housing Elements and has not yet developed for housing and
the other three parcels which are non-vacant were included in the City’s fifth round
Housing Element. This by-right (without discretionary review) requirement will only apply to
housing developments in which at least 20 percent of the units are affordable to lower-
income households. The application of the requirement should not be used to further
constrain the development of housing. As such, housing developments that do not contain
the requisite 20 percent would still be allowed to be developed according to the
underlying (base) zoning. These parcels are currently zoned Office Mixed-Use (OMU) and
Fair Oaks Mixed Use (FOMU) which require a Use Permit for multifamily housing
development. The City shall modify the Development Code to reflect the by-right
provisions described in this program within three years of the beginning of the sixth-cycle
Housing Element planning period, which is December 31, 2023.
Responsible agency/department: Community Development, Planning Commission, City
Council
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Timeframe: Amend zoning by December 31, 2023
Funding: General Fund
Expected Outcome: Development Code amendment
Quantified Objective: 98 lower income units on these parcels and the other parcels that
the parcel at 700 Oak Park Boulevard (APN 077-011-010) is combined with.
A.1-2. The City shall amend the Development Code to revise the requirements for the Traffic Way
Mixed-Use District to remove the limitation of only live-work residential uses. A mix of
residential use types shall be allowed consistent with all the mixed-use zoning districts
(except the Industrial Mixed-Use District). The Development Code shall also be amended
to allow residential projects at densities up to 20 units per acre in the Traffic Way Mixed-
Use District.
Responsible agency/department: Community Development
Timeframe: Within three years of Housing Element adoption
Funding: General Fund
Expected Outcome: Development Code amendment
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 accessory
dwelling program to increase public awareness, including a flowchart to aid in the
application process. The City will also amend the accessory dwelling unit regulations in the
Development Code for consistency with updates to state law. In addition, as part of the
ordinance update, the City will evaluate ADU requirements related to off-street parking,
lot coverage and open space, setbacks, maximum size and height and passageways,
entrances and orientation; and adjust them as feasible to be more permissive than what
is required by state law. The City will evaluate and adopt pre-approved accessory dwelling
unit plans to streamline the approval process and lower development costs for applicants.
Additional outreach regarding ADUs and the pre-approved plans will be conducted,
including the steps detailed in the REAP (AB 101) grant work program. This outreach will
include flyers, promotional materials and other outreach to further spread the word about
ADUs and ADU-related resources in Arroyo Grande. The City will monitor ADU permitting
throughout the planning period to track whether permits are keeping up with the ADUs
anticipated in the housing element. The City will work to conduct additional outreach if
ADU permits are not keeping up with numbers anticipated in the housing element after 4
years. The outreach will include regular announcements (at least once a month) about
options to build ADUs and ADU resources at Planning Commission and City Council
meetings and prominent placement of ADU information and the process to permit them
on the City’s website.
Responsible agency/department: Community Development
Timeframe: Amend Development Code by May 31, 2021 and if needed later in the
planning period to address any new updates to state law, and enforce state law until the
zoning is updated. Assess ADU approval progress in 2024 and conduct additional outreach
after that if ADU numbers are not tracking with projections in Chapter 4 of the Housing
Element.
Funding: General Fund, SB 2 funds, and AB 101 funds
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Expected Outcome: Expected outcome is continued consistent production of accessory
dwelling units as an affordable housing alternative.
Quantified Objective: 14 low income, 12 moderate income and 13 above moderate
income units/year during the planning period. Total of 130 low-income, 105 moderate
income, and 115 above moderate income units for the planning period.
A.2-2. To further encourage ADU creation, the City shall establish an amnesty program in
compliance with Senate Bill 13 to facilitate the process of bringing unpermitted ADUs into
compliance with local regulations including the building code by owners of this type of
unit. Senate Bill 13 requires under certain circumstances specified by state law, that
enforcement of violations related to unpermitted ADUs be delayed for 5 years if correcting
the violations are not necessary to protect health and safety. The City program would
consider reductions in fees associated with necessary upgrades to bring the unit up to
code along with providing information and staff assistance with the steps in the process to
bring the unit up to code.
Responsible agency/department: Community Development
Timeframe: Develop and put amnesty program into place by May 31, 2022.
Funding: General Fund
Expected Outcome: Expected outcome is adding accessory dwelling units to the City’s
housing stock as unpermitted units become legal.
Quantified Objective: See quantified objectives under Program A.2-1.
A.3-1. The City shall amend the Municipal Code to encourage the development of affordable
housing projects, including expedited permitting, providing financial assistance through
the City’s In-Lieu Affordable Housing Fund, requiring lot consolidation, and providing
greater flexibility in development standards.
Responsible agency/department: Community Development
Timeframe: Within five years of Housing Element adoption
Funding: General Fund and SB 2 funds
Expected Outcome: Additional affordable units
Quantified Objective: Five very low-income and five low-income units
A.3-2. The City shall amend the Development Code to provide additional incentives specifically
for extremely low-income housing projects. Incentives may include flexible standards for
on- and off-site improvements, such as reduced parking requirements, reduced curb,
gutter, and sidewalk requirements; reduced or deferred water and/or sewer connection
fees; development review and permit streamlining procedures; or financial incentives and
assistance.
Responsible agency/department: City Manager, Public Works, and Community
Development
Timeframe: Amend Development Code by 2022
Funding: General Fund
Expected Outcome: Draft program or ordinance to incentivize and/or streamline
permitting and procedures for extremely low-income housing developments
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Quantified Objective: Two extremely low-income units
A.3-3. The City shall consider a program to waive, reduce or defer impact fees for ADUs and
projects with deed-restricted affordable units.
Responsible agency/department: City Manager, Community Development, Planning
Commission and City Council
Timeframe: Amend Fees by December 31, 2021
Funding: General Fund
Expected Outcome: Consider and potentially establish a fee waiver or reduction for
ADUs and affordable units
Quantified Objective: See quantified objectives under Program A.2-1
A.10-1. To facilitate affordable housing, the City shall comply with State Density Bonus Law. The
City shall update Development Code Chapter 16.82 to comply with current state density
bonus law. The City will continue to update Chapter 16.82 on an ongoing basis to comply
with any future updates to State Density Bonus Law (Government Code Section 65915 et
seq.), as well as evaluate proposed Development Code amendments to assess whether
they pose any constraints to developer utilization of density bonuses.
Responsible agency/department: Community Development
Timeframe: Amend Development Code Chapter 16.82 to comply with Government Code
Section 65915 et seq. – Within 1 year of Housing Element adoption; Assess Development
Code Amendments - Ongoing
Funding: General Fund
Expected Outcome: City-initiated Development Code amendments
Quantified Objective: 20 lower-income units
A.10-2. To encourage higher densities and reduce constraints to multifamily housing production,
the City shall amend the Development Code to allow densities up to 20 du/ac in the OMU
District for 100% multifamily housing projects with a Minor-Use Permit (MUP) subject to
design review through the Architectural Review Committee. Mixed-use projects will
continue to have a maximum allowed density of 20 du/ac.
Responsible agency/department: Community Development
Timeframe: Within 2 years of Housing Element adoption
Funding: General Fund
Expected Outcome: Remove barrier to construct affordable housing
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: Ongoing
Funding: General Fund
Expected Outcome: Maintain land availability inventory
Quantified Objective: Maintain sites available for 692 units to address the City’s RHNA
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A.14-1. The City shall establish a program to assist 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)
Expected Outcome: Development of a first-time home buyers’ program
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 through 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, using 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 ensure compliance
with the regulatory agreement, including consideration of contracting with a housing
authority or joining a regional monitoring agency if one is developed.
B.3. The City may establish parking districts, or off-site shared parking, and use of in-lieu fees
where appropriate to enable additional density.
B.4. 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.
B.5. The City shall continue to regulate the use of existing residences on residentially zoned
properties as vacation rentals.
Programs:
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 development agreements and/or affordable housing
agreements.
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Responsible agency/department: City Manager and Community Development
Timeframe: Ongoing
Funding: Fees for service
Expected Outcome: Expected outcome is consistent monitoring of affordable units.
B.5-1. The City shall monitor the loss of permanent housing from vacation rentals and consider
modifying the Development Code to adjust for this loss.
Responsible agency/department: Community Development
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Program to monitor vacation rentals
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 low, very low, and low-income housing
development.
C.2. The City shall consider issuance of bonds to finance extremely low, very low, and low-
income housing.
C.3. The City shall pursue state and federal funds to finance extremely low, 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 low, 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: During City budgeting cycle
Funding: Inclusionary Affordable Housing Trust Fund/Other sources, as identified
Expected Outcome: Funding to finance affordable housing
Quantified Objective: Three extremely low, three very low, and twenty 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-
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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 and City Manager
Timeframe: Twice per year
Funding: General Fund
Expected Outcome: Increased awareness of the City’s desire to provide affordable
housing and to accommodate affordable housing
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: Community Development and City Manager
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Leverage of financial resources to augment development of
affordable housing
Quantified Objective: Loan(s) provided for five very low- income units
Goal D – Encourage Diverse Housing Stock.
In order to provide affordable housing, especially for extremely low, very low, and low-income
households, encourage apartment construction.
Policies:
D.1. The City shall relax parking standards for apartments containing extremely low, very
low, low, and/or senior housing.
D.2. Evaluate the procedure for calculating density in multi-family and mixed-use
developments.
Programs:
D.1-1. The City shall encourage specific plans for land within its sphere of influence that include
increased capacity for residential development.
Responsible agency/department: Community Development
Timeframe: Ongoing, as specific plans are approved
Funding: General Fund
Expected Outcome: Possible increased land inventory to support affordable housing
D.1-2. The City shall review the parking standards for affordable and senior housing projects and
reduce them to the greatest extent possible.
Responsible agency/department: Community Development
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Timeframe: Review parking standards by December 31, 2022; Revise parking standards in
Development Code by December 31, 2023.
Funding: General Fund
Expected Outcome: Remove constraints associated with parking requirements for
affordable and senior housing projects
Goal E – Inclusionary Housing.
Strengthen the City’s inclusionary housing ordinance to require more affordable units in both
residential and commercial development projects.
Policies:
E.1. The City shall require housing projects greater than two 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. An inclusionary unit is defined as one that
will meet the state’s standards for affordable housing.
E.2. An “affordable housing agreement” shall be required for projects subject to the
Inclusionary Affordable Housing Ordinance.
Programs:
E.1-1. The City shall evaluate and consider amending the inclusionary affordable housing
requirements in the Development Code (Chapter 16.80) based on experience using the
requirements in producing affordable units. In addition, the City shall continue to amend
the in-lieu fee as needed and as called for in Chapter 16.80.
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, Planning Commission, and
City Council
Timeframe: Within two years of Housing Element adoption
Funding: General Fund
Expected Outcome: Amendments to the inclusionary affordable housing requirements
and inclusionary in-lieu fee
Quantified Objective: Two extremely low, five very low, 10 low, and 15 moderate-income
units
Goal F – Mitigate Governmental Constraints.
Create clearer regulations and streamline the approval process for affordable housing projects.
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City of Arroyo Grande 2020-2028 Housing Element
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Policies:
F.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.
Programs:
F.1-1. The City shall work with non-profit organizations to maintain a list of persons interested in
development projects containing affordable housing. Agendas for all City meetings
related to these projects shall be sent to persons on the list. The City shall also continue to
post the agendas on the City’s website.
Responsible agency/department: Community Development
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Increased public awareness of affordable housing projects.
F.1-2. The City shall amend the Development Code to allow development of up to 15 multiple-
family attached units in the MF zoning district and 20 multiple-family attached units in the
MFA zoning district with an MUP subject to design review through the Architectural Review
Committee. Development of over 15 multiple-family attached units in the MF zoning
district and 20 multiple-family attached units in the MFA zoning district shall require a
Conditional-Use Permit (CUP).
Responsible agency/department: Community Development
Timeframe: Within two years of Housing Element adoption
Funding: General Fund
Expected Outcome: Remove barrier to construct affordable housing
Quantified Objective: 15 lower income units
F.1-3. Establish a written policy or procedure and other guidance as appropriate to specify the
SB 35 (2017) streamlining approval process and standards for eligible projects, as set forth
under California Government Code, Section 65913.4.
Responsible agency/department: Community Development
Timeframe: December 2021
Funding: General Fund
Expected Outcome: Remove barrier to construct affordable housing
Goal G – Housing Conservation and Rehabilitation.
Conserve and rehabilitate the City’s older stock, particularly to provide affordable housing.
Policies:
G.1. The City shall encourage private and public financing of affordable housing
rehabilitation.
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G.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 as allowed under state law.
Programs:
G.1-1. The City shall continue to coordinate with the San Luis Obispo Housing Authority to
maintain and expand Section 8 rental housing assistance to qualified households.
Responsible agency/department: Community Development
Timeframe: Ongoing, when eligible
Funding: General Fund
Expected Outcome: Continued affordable housing.
G.1-2. The City shall develop a program to offer housing developers an alternative to meet
affordable housing requirements by contributing some “sweat equity” on projects where
existing housing units will be rehabilitated or conserved as affordable, pursuant to the City’s
Affordable Housing Program.
Responsible agency/department: Community Development
Timeframe: Within two years of Housing Element adoption
Funding: General Fund
Expected Outcome: Conservation and rehabilitation of existing housing stock
Quantified Objective: Five low-income housing units
G.2-1. The City shall continue to consider abatement of unsafe or unsanitary structures, including
buildings or rooms inappropriately used for housing contrary to adopted health and safety
codes. Where feasible, the City will encourage rehabilitation and allow reasonable notice
and time to correct deficiencies.
Responsible agency/department: Community Development
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Conservation of existing housing stock
Goal H – At-Risk Unit Preservation.
Preservation of at-risk units in Arroyo Grande.
Policies:
H.1. The City shall establish a notification procedure to occupants of affordable housing
units of conversion to market-rate units.
H.2. The City shall assist in the preservation of affordable units at risk of conversion to market-
rate units.
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Programs:
H.1-1. The City will monitor the list of all dwellings in Arroyo Grande that are subsidized by
government funding or low-income housing developed through local regulations or
incentives. The list will include, at least, the number of units, the type of government
program, and the date on which the units are at risk to convert to market-rate dwellings.
No units have been identified as at risk of converting to market rate within 10 years of the
beginning of the sixth-round Housing Element planning period. The City will work to reduce
the potential conversion of any units to market rate through the following actions:
• Monitor the status of affordable projects, rental projects, and mobile homes in Arroyo
Grande. Should the property owners indicate the desire to convert properties, consider
providing technical and financial assistance, when possible, to ensure long-term
affordability.
• If conversion of units is likely, work with local service providers as appropriate to seek
funding to subsidize the at-risk units in a way that mirrors the HUD Housing Choice
Voucher (Section 8) program. Funding sources may include state or local funding
sources.
Pursuant to state law, owners of deed-restricted affordable projects are required to
provide notice of restrictions that are expiring after January 1, 2021, to all prospective
tenants, existing tenants, and the City within three years of the scheduled expiration of
rental restrictions. In addition, the City or owner will provide notice to HUD and the San Luis
Obispo Housing Authority. Owners shall also refer tenants of at-risk units to educational
resources regarding tenant rights and conversion procedures and information regarding
Section 8 rent subsidies and any other affordable housing opportunities in the City. In
addition, notice shall be required prior to conversion of any units to market rate for any
additional deed-restricted lower-income units that were constructed with the aid of
government funding, that were required by inclusionary zoning requirements, that were
part of a project granted a density bonus, or that were part of a project that received
other incentives.
If a development is offered for sale, HCD must certify persons or entities that are eligible to
purchase the development and to receive notice of the pending sale. Placement on the
eligibility list (see Appendix) will be based on experience with affordable housing.
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 (pursuant to 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. 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
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Timeframe: Ongoing communication with owners, service providers, and eligible potential
purchasers; work with owners of deed-restricted units on an ongoing basis – in particular
at the time of change of ownership.
Funding: General Fund
Expected Outcome: Preservation of existing affordable units
Quantified Objective: Preserve 30 assisted units
Special Needs
Goal I – 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:
I.1. The City shall encourage and shall seek funding to assist in the development of low-
and moderate-income senior rentals.
I.2. The City shall permit larger group housing for seniors in appropriate multiple-family or
mixed-use locations, subject to discretionary review.
I.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.
I.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.
I.5. The development of housing for farmworkers shall be encouraged.
I.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:
I.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 zoning districts with a CUP. SROs shall be allowed in the MFVH
zoning district with an MUP.
Responsible agency/department: Community Development
Timeframe: Identifying sites - Ongoing; Development Code Amendments – Within two
years of Housing Element adoption
Funding: General Fund
Expected Outcome: Increased housing opportunities for seniors and other special needs
groups
Quantified Objective: Five extremely low and 10 very low-income units
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I.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, Section 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 Section 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 CUP, 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 two years of Housing Element adoption
Funding: General Fund
Expected Outcome: Increased housing opportunities for farmworkers
Quantified Objective: Five very low-income units
The Homeless
Goal J– Housing for the Homeless.
Reduce or minimize the incidence of homelessness in the community.
Policies:
J.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.
J.2. The City shall continue to allow emergency shelters for overnight lodging and other
housing serving homeless persons in appropriate zoning districts, in compliance with
state law.
J.3. The City shall consider supporting overnight parking programs that may be instituted in
a manner that ensures the safety and security of participants and neighboring land
uses.
Programs:
J.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
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J.2-1. The City shall consider implementing an overnight parking program, or a similar program,
for the homeless in appropriate zoning districts.
Responsible agency/department: Community Development
Timeframe: Within two years of Housing Element adoption
Funding: General Fund
Expected Outcome: Provide approved parking locations for the homeless to sleep
J.2-2. Per AB 2162, the City will review its Development Code to ensure compliance with AB 2162
related to allowing supportive housing. The Development Code will be reviewed to assess
whether supportive housing is allowed without discretionary review in all zoning districts
that allow multifamily housing or mixed-use development, including nonresidential zoning
districts, as applicable. If it is determined that the allowed uses in the Development Code
are not in compliance with AB 2162, the City will revise the allowed uses along with
corresponding development standards, as detailed in AB 2162.
Responsible agency/department: Community Development, Planning Commission, City
Council
Timeframe: Review Development Code by 2021. Make revisions by 2022.
Funding: General Fund
Expected Outcome: Allow supportive housing per state law
J.2-3. As set forth in AB 101 (2019), the City will review its Development Code and make revisions,
if necessary, to allow low-barrier navigation centers for the homeless pursuant to
Government Code Sections 65660–65668.
Responsible agency/department: Community Development, City Council
Timeframe: Review Development Code by 2021. Make revisions by 2022.
Funding: General Fund
Expected Outcome: Allow low-barrier navigation centers for homeless per state law
Disabled Persons
Goal K – Housing for Persons with Disabilities.
Ensure that those residents with handicaps or disabilities have adequate access to housing.
Policies:
K.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 Americans with Disabilities Act (ADA).
K.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:
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K.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 Division/Community Development
Timeframe: Establish a model program within two years of Housing Element adoption
Funding: General Fund
Expected Outcome: Increased access to housing and housing resources for disabled
persons, including information and services available for developmentally disabled
persons
Quantified Objective: Five low-income units
K.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 Division/Community Development
Timeframe: Within two years of Housing Element adoption
Funding: General Fund
Expected Outcome: Greater accessibility for disabled persons accommodated through
the design review process for discretionary residential projects
Energy Conservation
Goal L – 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:
L.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.
L.2. New land use patterns shall encourage energy efficiency.
L.3. When feasible, buildings shall be sited on a north to south axis and designed to take
advantage of passive solar heating and cooling.
Programs:
L.1-1. The City shall continue working to implement water conservation incentive programs,
including the Plumbing Retrofit Program, and energy conservation programs, such as those
described by San Luis Obispo County Energy Watch and others, as applicable.
Responsible agency/department: Building Division/Community Development
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Timeframe: Ongoing
Funding: General Fund, funds established by utilities such as Pacific Gas and Electric
Company (PG&E)
Expected Outcome: Reduce usage of water and electrical resources
L.1-2. Consistent with Measure E-5 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 percent
of items on the Tier 1 list of the California Green Building Code (Title 24) or 15 percent of
items on the Tier 2 list of that code.
Responsible agency/department: Building Division/Community Development
Timeframe: Establish program within two years of Housing Element adoption
Funding: General Fund
Expected Outcome: Encourage energy efficiency in new residential buildings
Equal Opportunity
Goal M – Equal Opportunity and Fair Housing.
Assure access to sound, affordable housing for all persons, regardless of race, religion, age, or sex.
Policies:
M.1. The City declares that all persons, regardless of race, religion, age, or sex, shall have
equal access to sound and affordable housing.
Programs:
M.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 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: Community Development
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.
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Funding: General Fund
Expected Outcome: Dissemination of information through the City.
M.1-2. Arroyo Grande will develop a plan to Affirmatively Further Fair Housing (AFFH). The AFFH
Plan shall take actions to address significant disparities in housing needs and in access to
opportunity for all persons, regardless of race, religion, sex, marital status, ancestry, national
origin, color, familial status, or disability, and other characteristics protected by the
California Fair Employment and Housing Act (Part 2.8, commencing with Section 12900, of
Division 3 of Title 2), Section 65008, and any other state and federal fair housing and
planning law. Specific actions will include the following:
• Facilitate public education and outreach by creating informational flyers on fair
housing that will be made available at public counters, libraries, and on the City’s
website. City Council meetings will include a fair housing presentation at least once
per year.
• Actively recruit residents from neighborhoods of concentrated poverty (if applicable)
to serve or participate on boards, committees, and other local government bodies.
• Ensure environmental hazards are not disproportionately concentrated in low-income
communities and low-income communities of color.
• Develop a proactive code enforcement program that holds property owners
accountable and proactively plans for resident relocation, when necessary.
Responsible agency/department: Community Development
Timeframe: Create plan by January 2022 and implement on an ongoing basis.
Funding: General Fund
Expected Outcome: Dissemination of information at the City Hall front counter, education
at City Council meetings.
Housing Element Implementation
Goal N – Public Participation.
Ensure participation of all economic segments of the community in the development of housing
policy for Arroyo Grande.
Policies:
N.1. The City shall encourage the participation of all residents of Arroyo Grande in the
development of housing policies for the City.
N.2. The City shall provide a brief summary of key information about housing-related issues
to help ensure widespread notice to all residents.
Programs:
N.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 locations frequented by the public.
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Responsible agency/department: Community Development
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Provide information about housing programs
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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.
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
New Housing Production
Program A.1-1. 8 27 63 0 0 98
Program A.1-2. 0 0 0 10 10 20
Program A.2-1. 0 0 130 105 115 350
Program A.3-1. 0 5 5 0 0 10
Program A.3-2. 2 0 0 0 0 2
Program A.10-1. 10 10 0 0 0 20
Program A.12-1. 85 85 107 124 291 692
Program C.1-1. 3 3 20 0 0 26
Program C.4-2. 0 5 0 0 0 5
Program E.1-1. 2 5 10 15 0 32
Program F.1-2. 2 5 8 0 0 15
Program I.1-1. 5 10 0 0 0 15
Program I.5-1. 0 5 0 0 0 5
Program K.1-1. 0 5 0 0 0 5
Subtotals 117 165 343 254 416 1,295
Preservation
Program H.1-1 0 10 20 0 0 30
Subtotals 0 10 20 0 0 30
Rehabilitation
Program G.1-2 0 0 5 0 0 5
Subtotals 0 0 5 0 0 5
Totals 117 175 368 254 416 1,330
Source: City of Arroyo Grande and California Housing Partnership Corporation (CHPC), 2020.
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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 U.S. 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 to 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 and needs and to plan
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 17,876
in 2019 according to the U.S. Census and California Department of Finance (DOF). Population
growth during the 1960s occurred rapidly, some years exceeding 12 percent. In the 1970s, growth
slowed to an average of seven percent over the decade, falling still further in the 1980s to less
than two percent from 1980 to 1990. According to the U.S. Census, Arroyo Grande grew 10.2
percent between 1990 and 2000 and 8.8 percent between 2000 and 2010. Table 3-1 compares
population growth in Arroyo Grande from 2010 to 2019 relative 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 2010 to 2019 was higher than Grover Beach and comparable to
the County, but less than Pismo Beach or the State of California.
Table 3-1 Trends in Population Growth
2000 2010 2019
Number Number Change from
2000 Number Change from
2010
Arroyo Grande 15,851 17,252 8.80% 17,876 3.62%
Grover Beach 13,067 13,156 0.70% 13,533 2.87%
Pismo Beach 8,551 7,655 -10.50% 8,239 7.63%
San Luis Obispo County 246,681 269,637 9.30% 280,393 3.99%
California 33,871,648 37,253,956 10.00% 39,927,315 7.18%
Source: U.S. Census 2000, State of California, Department of Finance, E-5 Population and Housing Estimates for Cities, Counties, and
the State, 2011-2019 with 2010 Census Benchmark
Current estimates by SLOCOG in their 2050 Regional Growth Forecast (2017) project the City’s
population to reach approximately 20,449 residents by 2050, based upon a compound annual
growth rate of 0.39 percent (see Table 3-2).
Table 3-2 Population Growth Projections
2020 2030 2040 2050 % Annual Change
Arroyo Grande 18,288 19,505 20,158 20,449 0.39%
Grover Beach 13,751 14,536 14,934 15,091 0.32%
Pismo Beach 8,642 9,486 9,901 10,079 0.55%
San Luis Obispo County 286,657 305,692 315,922 320,482 0.39%
Source: SLOCOG 2050 Regional Growth Forecast, Population Projections by Jurisdiction, 2010 to 2050 (Medium Scenario)
Age and Sex Distribution. Table 3-3 shows that in 2017, 27 percent of the population of Arroyo
Grande was age 24 years and under, 34 percent of the population was between 25 and 54 years,
and 40 percent was 55 years or older. The highest percentage in one age category, 23 percent,
is in the 65 and older age range, followed by the 55 to 64 age range (17 percent). The median
age in years is 48. These statistics reflect an older population than California as a whole, with a
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higher percentage of those considered seniors (55 or over). However, this is similar to trends in San
Luis Obispo County as a whole, with the senior population increasing more rapidly than other age
groups.
Table 3-3 Trends in Population Age
Age Group
2010 2017
Percent Change Number of
Persons
Percent of
Total
Number of
Persons
Percent of
Total
<15 2,933 17% 2,603 14% -11%
15–24 1,893 11% 2,269 13% 20%
25–34 1,755 10% 1,364 8% -22%
35–44 1,949 11% 2,268 13% 16%
45–54 2,657 15% 2,320 13% -13%
55–64 2,572 15% 3,015 17% 17%
65+ 3,493 20% 4,132 23% 18%
Total 17,252 100% 17,971 100% 4%
Source: U.S. Census 2010 and ACS 2013–2017
Between 2010 and 2017, there were increases in the age ranges 55 and older and between 15
and 24 years, and a large decrease in the 25 to 34 age range, while all other age ranges remained
similar. These trends can be seen in Figure 3-3.
Figure 3-3 Change in Population Age, 2010 to 2017
Source: U.S. Census 2010 and 2017
Race and Ethnicity. Table 3-4 reports the race and ethnicity of the demographics in the City of
Arroyo Grande. The residents of the City of Arroyo Grande are majority white, with 85.4 percent of
the population identifying this way in 2018. Approximately 17 percent of the population in the City
identify as Hispanic or Latinx. The questions posed by the Census regarding race and ethnicity
0%
5%
10%
15%
20%
25%
<15 15-24 25-34 35-44 45-54 55-64 65+
2010 2017
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provide the opportunity for respondents to self-identify with a sub-group within the racial and
ethnic categories; 66.5 percent of respondents who identified as Hispanic or Latinx also identified
as White. Over four percent of the population identifies as Asian, almost four percent identifies as
two or more races, and over three percent identifies as some other race. All other subgroups
comprised less than two percent of the population.
Table 3-4 Race and Ethnicity
Race or Ethnicity Number of Persons Percent of Total
White 15,411 85%
Black or African American 142 1%
American Indian and Alaska Native 271 2%
Asian 814 5%
Native Hawaiian and Other Pacific Islander 122 1%
Two or more races 659 4%
Some other race 620 3%
Hispanic or Latino1 3,061 17%
Total 18,039 100%
1 Hispanic or Latino (or Latinx) category is counted separately and in addition to other categories.
Source: ACS 2014–2018
Household Data
Household Projections. According to SLOCOG’s Regional Growth Forecast, Arroyo Grande is
expected to grow from 7,087 households in 2010 to 8,460 households in 2050, reflecting a 0.5-
percent annual increase in households. In comparison, Grover Beach is anticipated to grow at a
slightly slower rate of 0.4 percent per year, while Pismo Beach will grow faster at 0.6 percent per
year. All these rates are quite gradual. The County’s number of households is expected to grow
at nearly the same rate as the City of Arroyo Grande through 2050, as shown in Table 3-5.
Table 3-5 Trends in Household Growth
2010 2020 2030 2040 2050 % Annual
Change
Arroyo Grande 7,087 7,493 8,064 8,349 8,460 0.48%
Grover Beach 5,111 5,327 5,689 5,878 5,963 0.42%
Pismo Beach 3,834 4,250 4,582 4,742 4,805 0.63%
San Luis Obispo County 102,016 108,169 116,112 120,215 121,826 0.49%
Source: SLOCOG 2050 Regional Growth Forecast
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Household Size. According to the 2017 American Community Survey (ACS), the average
household size in Arroyo Grande is 2.47 persons. The City’s average household size increased
slightly from 2.41 to 2.47 between 2010 and 2017.
Tenure by Household. Table 3-6 shows the occupancy of housing units in Arroyo Grande. Overall,
70 percent of households are owner-occupied, and 30 percent rent. In comparison, about 60
percent of households are owner-occupied countywide, while the remaining 40 percent of
households are renter-occupied.
Table 3-6 Household Tenure
Owner-Occupied Renter-Occupied Totals
Number Percent Number Percent Number
Arroyo Grande 5,023 70% 2,169 30% 7,192
Source: Sixth-Cycle HCD Data Packet, 2013-2017 ACS, Table B25003
Income
Table 3-7 shows income ranges and the number of households in each range in Arroyo Grande.
According to U.S. Census, the median income for Arroyo Grande households was $80,615 in 2018.
This is compared to the 2010 median household income of $58,725 in Table 3-6. The largest
category that renter-occupied households in Arroyo Grande fell into in 2018 was the $50,000 to
$74,999 range (7 percent of total renter households). The largest category in 2018 for owner-
occupied households was the $100,000 or more range (35 percent of total owner households).
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Table 3-7 Trends in Household Income
2010 2018 Percent
Change in
No. of
Households Households Percent Households Percent
Renter-Occupied
Less than $10,000 136 2% 52 1% -61.8%
$10,000 to $14,999 218 3% 141 2% -35.3%
$15,000 to $24,999 293 4% 325 5% 10.9%
$25,000 to $34,999 328 5% 174 2% -47.0%
$35,000 to $49,999 358 5% 309 4% -13.7%
$50,000 to $74,999 472 7% 500 7% 5.9%
$75,000 to $99,999 182 3% 297 4% 63.2%
$100,000 or more 131 2% 411 6% 213.7%
Owner-Occupied
Less than $10,000 122 2% 143 2% 17.2%
$10,000 to $14,999 189 3% 133 2% -29.6%
$15,000 to $24,999 277 4% 309 4% 11.6%
$25,000 to $34,999 385 5% 213 3% -44.7%
$35,000 to $49,999 668 9% 336 5% -49.7%
$50,000 to $74,999 862 12% 596 9% -30.9%
$75,000 to $99,999 814 12% 612 9% -24.8%
$100,000 or more 1,616 23% 2,448 35% 51.5%
Total Households 7,051 100% 6,999 100% —
Median Income (All Households) $58,725 — $80,615 — —
Source: U.S. Census 2010; ACS 2014–2018, Table B25118
Employment
Table 3-8 compares employment growth estimates from SLOCOG in their 2050 Regional Growth
Forecast (2017) in Arroyo Grande from 2020 to 2050 to Pismo Beach, Grover Beach, and the
County of San Luis Obispo. The City’s employment is anticipated to grow to approximately 7,913
employees by 2050, based upon a compound annual growth rate of 1.27 percent. This table
indicates that the job growth that will occur in Arroyo Grande from 2020 to 2050 will be higher than
Grover Beach and the County and greater than but comparable to Pismo Beach.
Table 3-8 Employment Growth Projections
2020 2030 2040 2050 % Annual Change
Arroyo Grande 6,822 7,364 7,705 7,913 1.27%
Grover Beach 3,109 3,355 3,509 3,604 0.55%
Pismo Beach 4,919 5,309 5,555 5,705 1.07%
San Luis Obispo County 115,842 125,054 130,837 134,375 0.86%
Source: SLOCOG 2050 Regional Growth Forecast
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According to the 2018 Occupational Employment Statistics (OES) survey for the region,
employment in a wide range of industries are anticipated to grow through 2026. However, this
data was gathered prior to the impacts to the economy due to COVID-19 and does not take the
COVID-19 pandemic into account. In Table 3-9, home health aides and market research analysts
or marketing specialists are expected to grow the most, increasing by 47 and 45 percent,
respectively. Most of these professions have relatively high median hourly wages, given that the
minimum wage in California is $12 as of 2020. Veterinary assistants or lab animal caretakers and
nonfarm animal caretakers had the lowest median hourly wage, both earning under $15 per hour.
Table 3-9 San Luis Obispo-Paso Robles-Arroyo Grande Metropolitan Statistical Area
Projections of Employment
Occupation 2019 Median
Hourly Wage
2019 Median
Annual Salary
Estimated Employment Percent
Change 2016 2026
Software Developers,
Systems Software $43.77 $91,048 360 490 36%
Cost Estimators $38.37 $79,817 220 270 23%
Electricians $34.23 $71,207 620 800 29%
Market Research Analysts
and Marketing Specialists $30.20 $62,814 420 610 45%
Heavy and Tractor-Trailer
Truck Drivers $24.75 $51,474 670 790 18%
Construction Laborers $22.14 $46,057 1,210 1,590 31%
Medical Secretaries $20.19 $41,996 500 670 34%
Home Health Aides $16.37 $34,038 170 250 47%
Veterinary Assistants and Lab
Animal Caretakers $14.83 $30,839 240 320 33%
Nonfarm Animal Caretakers $14.46 $30,075 270 360 33%
Source: U.S. Department of Labor's Employment Cost Index, 2018 Occupational Employment Statistics (OES) survey
Data from the California Employment Development Department shown in Table 3-10 shows the
largest employers in San Luis Obispo County, including the Arroyo Grande Community Hospital
located in the City. All other major companies are located elsewhere in the county, and many
residents may commute out of Arroyo Grande for work at one of these other employers. Major
employers in the county are medical offices, schools, and regional or federal government offices.
Additionally, using ACS data, Table 3-11 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 1,897 jobs, or 22 percent. Following that is the arts, entertainment, and recreation, and
accommodation and food services sector supplying 14 percent of the jobs in the City.
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Table 3-10 Largest Employers
Employer Name Location Industry Number of Employees
Arroyo Grande Community Hospital Arroyo Grande Hospitals 1,000 -- 4,999
Pacific Gas & Electric Co.
Avila Beach
and San Luis
Obispo
Electric Companies 1,000 -- 4,999
Cal Poly San Luis Obispo San Luis Obispo Schools -- Universities
& Colleges Academic 1,000 -- 4,999
San Luis Obispo County San Luis Obispo Government Offices --
County 1,000 -- 4,999
California Men's Colony San Luis Obispo Correctional Facility --
State 1,000 -- 4,999
AMI Sierra Vista Radiology San Luis Obispo Physicians & Surgeons 500 -- 999
Medi-Cal San Luis Obispo Government Offices --
County 500 -- 999
Sierra Vista Regional Medical Center San Luis Obispo Hospitals 500 -- 999
Cuesta College
San Luis Obispo
and Paso
Robles
Schools -- Universities
& Colleges Academic 500 -- 999
County Office of Education San Luis Obispo Schools 250 -- 499
French Hospital Medical Center San Luis Obispo Hospitals 250 -- 499
San Luis Obispo Sheriff's Department San Luis Obispo Sheriff 250 -- 499
Source: EDD, America's Labor Market Information System (ALMIS) Employer Database, 2016 1st edition, San Luis Obispo Chamber of Commerce website -- Pacific Coast Business Times 2017
Table 3-11 Industry Profile
Jobs Percent
Educational services, and health care and social assistance 1,897 22.35%
Arts, entertainment, and recreation, and accommodation and food services 1,177 13.87%
Professional, scientific, and management, and administrative and waste
management services 992 11.69%
Retail trade 823 9.70%
Transportation and warehousing, and utilities 667 7.86%
Finance and insurance, and real estate and rental and leasing 609 7.18%
Construction 571 6.73%
Public administration 563 6.63%
Manufacturing 498 5.87%
Other services, except public administration 350 4.12%
Wholesale trade 164 1.93%
Information 101 1.19%
Agriculture, forestry, fishing, and hunting, and mining 74 0.87%
Total 8,486 100.00%
Source: Sixth-Cycle HCD Data Packet, 2013-2017 ACS, Table DP-03
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Another issue related to employment and residency is the matter of commuting to work. U.S.
Census data indicates that of the estimated 8,386 workers 16 years and over, 6,542, or 78 percent,
drove alone to work. Only 42 employees, or 0.5 percent, used public transportation. The mean
travel time to work was 21.5 minutes (see Table 3-12). This would indicate that most of the City’s
working residents are commuting to jobs outside of Arroyo Grande.
Table 3-12 Commute Patterns
Travel Time to Work Percentage
Less than 15 minutes 33%
15 to 29 minutes 47%
30 to 59 minutes 17%
60 or more minutes 4%
Average Travel Time (minutes) 21.5
Source: 2017 ACS 5-Year Estimates: Table S0801
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 3-13 provides a breakdown of the total housing units by type of structure for 2010 and 2019.
In 2019, it was estimated that there were 7,853 housing units in the City, an increase of 225 housing
units from 2010. This was a 77-percent decrease from the number of housing units added from
2000 to 2010 (963-unit increase). As indicated, most of the units (68 percent) in Arroyo Grande are
single-family units.
Table 3-13 Trends in Housing Type
2010 2019
Number Percent Number Percent
Total Housing Units 7,628 100% 7,853 100%
Units in Structure
1-unit, detached 5,201 68% 5,358 68%
1-unit, attached 627 8% 648 8%
Multiple-Family 2–4 Units 360 5% 366 5%
Multiple-Family 5 + Units 845 11% 886 11%
Mobile home or Other 595 8% 595 8%
Source: Sixth-Cycle HCD Data Packet: California DOF E-5 Estimates 2019
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Vacancy Rates
The U.S. Census reported 673 vacant units in 2017, which is nine percent of the total housing units
in the City. The number of vacant units in the City has increased from the 541 vacant units reported
in 2010. As shown in Table 3-14, almost two-thirds of the vacant units are for seasonal, recreational,
or occasional use. Table 3-14 shows that 21 percent of the vacant units are vacant for reasons
other than being available for rent or sale, rented but not occupied, and sold but not occupied.
These figures should not be confused with the reported vacancy rates of the City, which represents
the proportion of vacant rental inventory to the sum of renter- or owner-occupied units, year-
round units awaiting occupancy, and the vacant year-round units for rent.
Table 3-14 Vacant Units by Type, 2017
Number Percent
For rent 37 5%
For sale only 28 4%
Rented, not occupied 0 0%
Sold, not occupied 43 6%
For seasonal, recreational, or occasional use 426 63%
Other vacant 139 21%
Total Vacant Units 673 100%
Source: 6th Cycle HCD Data Packet, 2013-2017 ACS, Table B25002
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 2010 and 2017 are shown in Table 3-15. Vacancy rates are calculated by
dividing the total vacant year-round units by the sum of occupied units, vacant year-round units
that are awaiting occupancy, and vacant year-round units. For Arroyo Grande in 2017, it was
reported that there was a 0.5-percent vacancy rate for owner-occupied units and a 4.2-percent
vacancy rate for rental units. In 2010, the vacancy rate was 1.9 percent for owner-occupied units
and 4.0-percent for rental units. The 2017 vacancy rate for owner-occupied units is lower than the
optimal rate described above, and the vacancy rate for rental units is also less than the optimal
rate. This indicates a shortage of both owner-occupied units and rental housing units in the city.
However, this is not an uncommon statistic in the south San Luis Obispo County area; Neighboring
Grover Beach has an overall total unit vacancy rate of three percent and San Luis Obispo County,
just less than three percent.
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Table 3-15 Vacancy Rates
2010 2017 Optimal Vacancy Rates
Owner-occupied 1.9% 0.5% 2.0%
Rental Units 4.0% 4.2% 6.0%
Overall Total Unit Vacancy 7.0% 4.7% --
Source: Sixth-Cycle HCD Data Packet, 2013-2017 ACS, Table B25002
Overcrowded Units
A common method of measuring overcrowding in housing is to compare the number of persons
to the number of rooms in the unit. The U.S. 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 2013–2017 ACS shows that three percent of all occupied units were
overcrowded. As shown in Table 3-16, U.S. Census data indicates 139 units or 1.9 percent of the
total occupied housing units had been between 1.01 and 1.50 occupants per room, and 81 units,
or 1.1 percent, of all units were severely overcrowded at 1.51 occupants or more per room.
Table 3-16 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 4,945 98.5% 2,027 91.8% 6,972 96.4%
1.01 – 1.50 32 0.6% 107 4.8% 139 1.9%
1.51 or more 46 0.9% 35 1.6% 81 1.1%
Total 5,023 100.0% 2,209 100.0% 7,232 100.0%
Source: ACS 2013–2017
The rate of overcrowding in the City is lower than San Luis Obispo County as a whole, which has
a 3.4-percent overcrowding rate (more than 1.01 persons per room).
While the rate may in comparison be lower than many other communities, the incidence of
overcrowding (220 units) should still be considered. 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, individuals
and families 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
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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,
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 3-17 provides a breakdown of the age of housing units in Arroyo Grande through 2019. In
reviewing this table, the largest percentage of the housing units was constructed between 1970
and 1979 (24.9 percent), followed by units built from 1980 to 1989 (18.4 percent). This suggests that
nearly 84 percent of the housing stock is 20 years or older, while 72 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).
Table 3-17 Year Structure Built
Year Structure Built Number Percent
2016 to 2019 161 2.0%
2005 to 2015 358 4.5%
2000 to 2004 776 9.8%
1990 to 1999 886 11.2%
1980 to 1989 1,457 18.4%
1970 to 1979 1,974 24.9%
1960 to 1969 843 10.6%
1950 to 1959 898 11.3%
1940 to 1949 284 3.6%
1939 or earlier 293 3.7%
Total 7,930 100%
Source: U.S. Census 2010; City of Arroyo Grande 2020.
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 need rehabilitation and which units may be beyond feasible repair and determined to need
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. 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 3-17, 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 condition of
housing units was reported as “sound,” in need of “minor rehabilitation,” “moderate
rehabilitation,” “substantial rehabilitation,” or “dilapidated.” The survey used a point system to
evaluate the housing units in the City. The result 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
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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 10 units that appear to need substantial
rehabilitation or removal. Sixteen 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.
During the previous 2014-2019 planning period, 10 code enforcement cases related to
substandard housing were opened. All cases have since been resolved. Generally the condition
of the housing in Arroyo Grande has improved since 2014 because home values have gone up,
allowing people to obtain funding for improvements, and the majority of the building permits the
City has processed since 2014 are homeowners re-investing in their homes, including small
expansions and remodels of existing homes. In addition, the City’s code enforcement and building
inspection staff note health and safety issues that they observe when out in the field on a call and
provide property owners with resources that can assist with necessary repairs/corrections.
3.4 Housing Affordability
One of the key issues facing the provision of housing in the state is affordability. The ability to
acquire safe and sound housing is a major social and economic issue. It continues to affect
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 limited
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 San Luis Obispo Association of Realtors as published in SLO LIFE Magazine, the
median value of a home in 2019 in San Luis Obispo County was $720,972 and $882,000 for Arroyo
Grande. Median means a point where 50 percent of housing prices are below the listed number
and 50 percent are above. Housing prices in 2019 in Arroyo Grande were 15 percent higher than
in 2018. Housing prices in Arroyo Grande are higher than in the County, as shown in Figure 3-4.
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Figure 3-4 Median Home Prices Trend, Arroyo Grande and County
Source: SLO Life Magazine 2019 - SLO Association of Realtors
Rental Unit Rates
According to Zillow, the median rent in Arroyo Grande was $2,400 per month in March 2020.
Market rental rates were gathered using Zillow, an online real estate and rental marketplace, on
March 5, 2020. Table 3-18 shows the average market rental rates for each type of unit.
Table 3-18 Market Rental Rates by Unit Type
Average Median Lowest Highest
1 Bedroom $1,532 $1,600 $1,295 $1,700
2 Bedroom $1,933 $1,945 $1,410 $2,800
3 Bedroom $2,836 $2,700 $2,250 $3,900
4 Bedroom $2,835 $2,973 $1,995 $3,400
5 Bedroom 1 $2,995
Total $2,440 $2,400 $1,295 $3,900
1 There was only one unit at this size available on Zillow at the time of the survey.
Source: Zillow, retrieved March 5, 2020
While this rental analysis involves a limited number of housing units that were available for rent at
the time of the point-in-time survey (the number of units listed in each category ranges from 1 to
13), the data does give a perspective on rents being published in Arroyo Grande. Market rental
rates varied for apartments and single-family residences. The lowest rent found for a unit was
$1,295, while the highest was $3,900. Three and four-bedroom units had a higher average rental
cost than one- and two-bedroom units. While the five-bedroom average rent was lower, there
was only one unit available on Zillow, which may account for the skewed price.
$600,000
$650,000
$700,000
$750,000
$800,000
$850,000
$900,000
2018 2019
Arroyo Grande SLO County
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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 2020 income limits and are summarized in Table 3-
19.
The median home price in Arroyo Grande in 2019 was reported as $882,000. As can be seen in
Table 3-19, a moderate-income household cannot afford this price. While they may be able to
afford some available rental housing, large households, low-income households, and extremely
low-income households may still have a difficult time finding decent housing.
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 costs as the standard
affordable level and those households paying 30 percent or more as overpayment. According to
the 2015 Comprehensive Housing Affordability Strategy (CHAS), 1,570 households or 22 percent of
the owner-occupied units were paying monthly housing costs of 30 percent or more of their
income, as shown in Table 3-20. For renter-occupied housing units, 1,215 households or 17 percent
Table 3-19 San Luis Obispo County Housing Affordability
Studio3 1 Bedroom4 2 Bedroom5 3 Bedroom6 4 Bedroom7
Maximum Affordable Rent1:
Extremely Low-
Income
$510 $583 $655 $728 $786
Very Low-
$849 $970 $1,091 $1,213 $1,310
Low-Income $1,359 $1,553 $1,746 $1,940 $2,096
Moderate $2,044 $2,335 $2,628 $2,919 $3,153
Maximum Affordable Sales Price2:
Extremely Low $56,988 $76,995 $100,885 $124,773 $144,132
Very Low $164,727 $204,681 $234,144 $260,161 $281,081
Low $291,542 $333,113 $374,686 $416,258 $449,784
Moderate $438,520 $501,013 $563,772 $626,264 $676,420
Note: Prices shown are preliminary estimates and may be revised. Actual sales price limits will be determined by the County on a case-by-case basis. Footnotes correspond below:
1. These rent limits are assumed to be 30 percent of the monthly total household income.
2. Assumptions include $500 in monthly expenses, 20-percent down payment, property taxes, and fees, and property insurance and 4.5-percent interest rate., $150/month for HOA dues, Mortgage financing at fixed rate of 4.35% for 30 years (per HSH Associates)
3. Studio assumes one person occupies the unit.
4. One bedroom assumes two people occupy the unit.
5. Two bedroom assumes that three people occupy the unit.
6. Three bedroom assumes that four people occupy the unit.
7. Four bedroom assumes that five people occupy the unit.
Source: HCD 2020, Chase Online Affordability Calculator
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paid 30 percent or more for rent compared to household income. Lower-income households
often face a greater incidence of housing overpayment, allocating a greater portion of their
income to cover housing costs. Approximately 75 percent of lower-income renters overpay for
housing, and 57 percent of lower-income homeowners overpay for monthly housing costs.
Table 3-20 Total Household Overpayment by Income, 2015
Total Household Characteristics Number Percentage of
Total Households
Total occupied units (households) 7,040 100%
Total renter households 2,355 33%
Total owner households 4,685 67%
Total lower- income (0–80% of HUD Area Median Family Income
(HAMFI)) households 2,880 41%
Lower-income renters 1,510 21%
Lower-income owners 1,370 19%
Extremely low-income renters 315 4%
Extremely low-income owners 355 5%
Lower-income households severely overpaying (paying more than 50%) 1,010 14%
Lower-income renter households severely overpaying 535 8%
Lower-income owner households severely overpaying 475 7%
Extremely low income (ELI) (0–30% of HAMFI) 390 6%
ELI renter households severely overpaying 210 3%
ELI owner households severely overpaying 180 3%
Lower-income households overpaying (paying more than 30%) 1,915 27%
Lower-income renter households overpaying 1,140 16%
Lower-income owner households overpaying 775 11%
Total households overpaying 2,785 39%
Total renter households overpaying 1,215 17%
Total owner households overpaying 1,570 22%
Source: CHAS Databook, 2011–2015
Long-Term Affordability
It is apparent, based on the data that the households that appear to be in the greatest need of
housing assistance are those of low and very low-income.
Affordable housing provided by City incentives is required to be maintained as affordable for a
period of at least 45 (owner-occupied) or 55 years (rental units). The 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 accrues interest
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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’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.
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, and homeless people.
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 2013–2017 ACS, there are a total of 5,023 owner-occupied housing units and
2,169 renter-occupied housing units, of which, 2,614 are senior households. Table 3-21 represents
householders by tenure and age in the City of Arroyo Grande.
Table 3-21 Senior Households
Owner Renter Total
Number Percent Number Percent Number Percent
Total 65 and older 2,073 41% 541 25% 2,614 36%
65 to 74 years 1,045 21% 311 14% 1,356 19%
75 to 84 years 736 15% 178 8% 914 13%
85 years and older 292 6% 52 2% 344 5%
Total 64 and under 2,950 59% 1,628 75% 4,578 64%
Total (all ages) 5,023 100% 2,169 100% 7,192 100%
Source: Sixth-Cycle HCD Data Packet, 2013–2017 ACS
Families with Female Heads of Households
State law identifies female-headed households as having special needs due to their income
challenges, childcare expenses, and need for affordable housing. Female-headed households
are households with a female occupant and no partner present. The 2013–2017 ACS reported
that of the total 4,775 households in the City, there were 433 female-headed households. This
represents 9.1 percent of the total households (see Table 3-22). Of these households, 173 or 3.6
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percent, had children. Based upon the ACS Census data for incomes in 2017, 25 female-headed
households were reported to be below the poverty level.
Table 3-22 Housing Problems for Female head of Households
2017
Number Percent
Total households1 4,775 100.0%
Total female-headed households 433 9.1%
Female Household Heads with Children 173 3.6%
Female Household Heads without Children 260 5.4%
Female Headed Householders Below the Poverty Level 25 0.5%
Total Families Below the Poverty Level 192 4.0%
1 Note that this total householder count is smaller than the total household count presented elsewhere in this Housing Element. This is the total presented by the Census in the data packet as approved by HCD and therefore, considered accurate for this table.
Source: Sixth-Cycle HCD Data Packet, ACS 2013–2017
Large Families/Households
Large households are those consisting of five or more persons. Large families can have special
housing needs if they cannot find affordable large housing units. In that case, their living conditions
may become overcrowded. Table 3-23 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.
The highest percentage of owner-occupied housing units is for a two- to four-person unit (69
percent). About eight percent of the owner-occupied households are occupied by five or more
persons. For renter-occupied units, one-person households and two- to four-person households
are equally common, accounting for 45 percent of all households, each. About 10 percent of the
renter-occupied units are occupied by five or more persons. These numbers are generally low
compared to the county as a whole.
Table 3-23 Tenure by Household Size
Owner-Occupied Housing Units Renter-Occupied Housing Units
Number Percent Number Percent
1-person household 1,171 23% 866 45%
2- to 4-person household 3,456 69% 882 45%
5- or more person household 396 8% 197 10%
Total 5,023 100% 1,945 100%
Source: Sixth-Cycle HCD Data Packet, 2013–2017 ACS, Table B25009
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Extremely Low, Very Low, and Low-Income Households
Lower-income households (earning 80 percent or less of median household income) generally
have a higher incidence of housing problems. Extremely low-income households earn 30 percent
or less of the median household income. As of 2016, approximately 21 percent of Arroyo Grande
households (1,535 households) had extremely or very low incomes.
A continuing priority of communities is maintaining quality of life. A key measure of quality of life is
the extent of housing problems. According to the federal government, the term “housing
problems” refers to overpayment, overcrowding, and when residential units lack sufficient kitchens
or plumbing. The CHAS was developed by the U.S. Department of Housing and Urban
Development (HUD) to assist jurisdictions in writing their HUD-required consolidated plans. The
CHAS data provides information about housing problems in Arroyo Grande. According to this
data (Table 3-24), 72 percent of extremely or very low-income renter households had housing
problems. In comparison, 56 percent of extremely or very low-income owner households had
housing problems.
Table 3-24 Housing Problems for Lower-Income Households
Renters Owners Total
Household Income <= 30% HUD Area Median Family Income (HAMFI) with
any housing problem 245 260 505
Household Income > 30% to <= 50% HAMFI (Very Low-Income) 330 155 485
Percentage of households (<= 50% HAMFI) with any housing problem 72% 56% 64%
Source: CHAS 2012–2016
Between December 31, 2018, and December 31, 2028, the RHNA estimate for very low-income
housing need in Arroyo Grande is 170 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 85 extremely low-income households will be added to the City.
Farmworker Households
According to the 2017 U.S. Department of Agriculture (USDA) Agricultural Census, there are 11,416
workers in San Luis Obispo County hired on farms. Farmworkers are classified into permanent
farmworkers working 150 days or more, seasonal farmworkers working less than 150 days and
earning at least half of their annual income from farming, and migrant farmworkers who have
seasonal tenure and travel great distances for work. Generally, farmworker earnings are lower
than other measures of income adequacy such as the California Self Sufficiency Standard and
about the same as the federal poverty guidelines for a family of four. There is also a need for many
more units of farmworker housing in California both to maintain the current level of farmworkers
and their families living in subsidized housing and a much larger number to alleviate the high levels
of existing overcrowding in farmworker households. Given the location and environment of Arroyo
Grande near active agricultural areas, it is assumed that there is a need for farmworker housing
within the City. There are 588 farms in the county. There are 8,681 farmworkers who work fewer
than 150 days. The percent of resident versus migrant workers in this area is unknown.
HCD reports that there are 83 farmworker housing units provided under farmworker grant
programs in the county. Of the farmworkers living in the four farmworker employee housing
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facilities, 79 are permanent farmworkers and 16 are seasonal. Studies continue to indicate that
most farmworkers live in substandard conditions. 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. As a result many farmworkers and their families must find their own housing, which
sometimes leads to workers living in their cars or in illegal units. The greatest need for migrant
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 the state Employee Housing Act that addresses housing for agricultural workers
(Health and Safety Code Sections 17021.5 and 17021.6).
Persons with Disabilities
The 2013–2017 ACS recorded the disability status of the civilian non-institutional population of City
residents. Approximately 19 percent of residents in the City reported having a disability. The age
breakdown can be seen in Table 3-25, showing that the largest percentage (60.4 percent) of the
disabilities are reported by those 65 years of age or older. The two most common disabilities in that
age range are ambulatory difficulty (32.1 percent) and hearing difficulty (31.1 percent). Cognitive
difficulty is the most common disability reported by people between ages 5 and 64 years old,
reported in 17.5 percent of all disabled people in the City.
Table 3-25 Persons with a Disability by Disability Type
2017
Number Percent
Total disabled persons from survey data 1,996 100.0%
Disability types for people Ages 5-64 (note: some people have more
than one disability type) 791 39.6%
Hearing Difficulty 167 8.4%
Vision Difficulty 157 7.9%
Cognitive Difficulty 349 17.5%
Ambulatory Difficulty 249 12.5%
Self-Care Difficulty 128 6.4%
Independent Living Difficulty 210 10.5%
Disability types for people Ages 65 and Over (note: some people
have more than one disability type) 1,205 60.4%
Hearing Difficulty 620 31.1%
Vision Difficulty 89 4.5%
Cognitive Difficulty 168 8.4%
Ambulatory Difficulty 641 32.1%
Self-Care Difficulty 125 6.3%
Independent Living Difficulty 281 14.1%
Source: Sixth-Cycle HCD Data Packet, ACS 2013–2017
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There are two major housing related problems facing persons with a disability: the need for housing
that meets particular physical needs (e.g., wheelchair accessibility, etc.) and monetary needs.
Because of limited job opportunities, many persons with disabilities have incomes below the
median. Table 3-26 identifies the employment status of disabled persons in the city. About 22
percent of the population is not in the labor force, of which, about a quarter report having a
disability.
Table 3-26 Persons with a Disability by Employment Status, 2013-2017
2017
Number Percent
Total Population Ages 18 to 64 10,458 100.0%
In the labor force 8,161 78.0%
Employed 7,800 74.6%
With a disability 224 2.1%
No disability 7,576 72.4%
Unemployed 361 3.5%
With a disability 11 0.1%
No disability 350 3.3%
Not in the labor force 2,297 22.0%
With a disability 529 5.1%
No disability 1,768 16.9%
Source: Sixth-Cycle HCD Data Packet, ACS 2013–2017
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 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. For example, the physical modification of housing may not be necessary
to accommodate persons with mental disabilities, but such persons will generally require special
services and monetary support. Because jobs and income are often limited for persons with
disabilities, affordable housing is important. Issues related to those with a mental disability would
suggest that there is a need for apartment 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 that 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 K.2-1 to create a
reasonable accommodation procedure for the City.
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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 may 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 243,000 persons in 2019 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 2019, TCRC provided services to approximately 11,887 persons in
the Tri-County area. Table 3-27 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 3-27 Developmentally Disabled Persons
Location 0–17 years 18+ years Total
93420 101 162 263
Source: Sixth-Cycle HCD DATA Packet, Updated Data Profile 2019
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, renting
using 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 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. Table 3-28 provides information about developmentally disabled persons’ places of
residence in Arroyo Grande.
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Table 3-28 Developmentally Disabled Residents by Residence Type
Community
Care
Home Parent/
Guardian
Independent
Living
Intermediate
Care Facility
Foster/Family
Home Other Total
93420 21 190 23 22 <11 <11 >256
Source: Sixth-Cycle HCD DATA Packet, Updated Data Profile 2019
Local and county programs and services provide housing and living assistance for disabled
residents. Locally, the Housing Authority of San Luis Obispo (HASLO) 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. Currently, the agency provides 194 Section 8 vouchers to low-income
households in Arroyo Grande and maintains a waiting list that is currently closed. Additionally,
Transitions-Mental Health Association (TMHA), a nonprofit organization serving San Luis Obispo
County, provides housing assistance and housing to disabled individuals. HASLO and TMHA have
partnered over the years to provide case management services to homeless/disabled individuals.
To assist in the housing needs for persons with disabilities, the City will continue to implement
program K.1-1 to encourage creation of housing for persons with disabilities. Suggested models
include coordinating housing activities and outreach with TCRC and other local agencies,
encouraging housing providers to designate a portion of new affordable housing developments
for persons with disabilities, especially persons with developmental disabilities, and assisting
individuals in locating and maintaining suitable housing.
Homeless
The 2019 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 14 percent of the total homeless population in the County,
which was reported at 1,483 people. Thirty homeless persons were counted in the City of Arroyo
Grande in 2019. Of the total homeless population in San Luis Obispo County, 99 percent were over
the age of 18.
The primary homeless services organization in the South County is the 5 Cities Homeless Coalition.
The 5 Cities Homeless Coalition does not operate a shelter but provides education, counseling,
and financial support to homeless individuals. 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 as well, offering emergency housing, on-site information,
referral services, and assistance in finding permanent housing. This organization operates the
Prado Road Campus in San Luis Obispo, which provides 100 beds nightly year-round with
additional services. An additional 25 to 40 beds per night 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. Table 3-29 identifies the homeless facilities
throughout the county. There are 354 adult-only beds in the county, which serves the largest group
of homeless people in the county.
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Table 3-29 Homelessness, San Luis Obispo County
Facility Type Family Units Family Beds Adult-Only Beds Seasonal
Emergency Shelter 18 71 83 124
Transitional Housing 8 42 10 n/a
Permanent Supportive Housing 62 62 230 n/a
Rapid Rehousing 15 15 31 n/a
Total 103 190 354 124
Source: Sixth-Cycle HCD DATA Packet, Updated Data Profile 2019
These resources are provided by the City as well as by the support of the Homeless Services
Oversight Council of San Luis Obispo County. The City declared a homeless shelter crisis in 2018,
citing a lack of homeless shelters in the city and neighboring cities. The City is currently seeking
block grant funding from the Homeless Emergency Aid Program (HEAP) in partnership with the 5
Cities Homeless Coalition and People’s Self-Help Housing to support construction of an emergency
shelter in neighboring Grover Beach. 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.
3.6 At-Risk Housing Units
As shown in Table 3-30, Arroyo Grande has seven state and/or federally assisted housing
developments that provide 283 affordable housing units.
Table 3-30 Inventory of Assisted Units
Projects Total Units Affordable
Assisted Units Funding Source Earliest Date of
Conversion
Cawelti Court 28 28 Tax Credits 2050
Oak Forest Apartments/Elm Village 20 19 Tax Credits 2051
Juniper Street Apartments 14 15 Tax Credits 2054
Cortina D’Arroyo 108 107 Tax Credits 2060
Courtland Street Apartments 36 35 Tax Credits 2068
Halcyon Collective 20 19 Tax Credits 2072
Parkview Manor 61 61 HUD 2031
Total 287 283 — —
Source: HCD SLO Housing Element Update Data Profile 2019 and California Housing Partnership Corporation (CHPC), 2020
California Housing Element law requires all jurisdictions to include a study of all state and/or
federally assisted low-income housing units that may at some future time be lost to the affordable
inventory by the expiration of some type of affordability restrictions. The law requires that the
analysis and study cover a 10-year period beginning at the start of the Housing Element planning
period, that is, December 31, 2020, through December 31, 2030.
At-risk units are financially subsidized low-income housing projects that may be at risk for
conversion to market-rate because they are nearing the end of their subsidized contract. Such
units are deemed “at risk” of being lost as affordable housing. Currently, no subsidized housing
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units are considered at risk of converting to market-rate units within 10 years of the beginning of
this Housing Element planning period. However, Program I.1-1 states that the City will maintain a
list of all dwellings in the city that are subsidized by government funding or low-income housing
developed through local regulations or incentives, and that the City will contact all property
owners and notify them of the legal requirements to provide notice prior to the conversion of any
units for lower-income households to market-rate units.
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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 Allocation Plans
(RHNAP) for all cities and counties within their jurisdiction. The RHNAP for San Luis Obispo County,
which includes the City of Arroyo Grande, was prepared by SLOCOG and adopted in August
2019. The RHNAP is intended to anticipate growth, and therefore allow the City to plan for this
anticipated growth based on the RHNA. It also is intended to ensure that adequate sites and
zoning exist to address anticipated housing demand during the planning period (December 31,
2020, through December 31, 2028). In addition, the RHNAP sets targets to ensure the availability of
sites to accommodate the housing needs of a wide range of socioeconomic segments of a
community.
Pursuant to Government Code Section 65580 et seq., SLOCOG developed a methodology for
estimating the future housing needs of the county, which was then allocated to each jurisdiction.
This methodology took the housing need for the entire region (10,810 housing units), and weighted
that figure in order to improve intraregional jobs/housing balance. The methodology distributed
the regional figure based on the city’s proportional share of population and jobs (weighting 75
percent to population and 25 percent to jobs). This methodology also excluded four unique,
statewide employers from the figures because these employers would result in a disproportionate
allocation; the employers excluded were Atascadero State Hospital, the California Men’s Colony,
Cal Poly, and the Diablo Canyon Nuclear Power Plant. According to data from the California DOF,
the City of Arroyo Grande is projected to comprise six percent of the region’s population, and six
percent of the region’s jobs. These factors, when applied to the methodology, resulted in a total
allocation of 692 housing units needed to accommodate the anticipated population growth in
the City between December 31, 2020, and December 31, 2028.
Pursuant to the California Health and Safety Code (Section 50093, et seq.) the RHNAP divided 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 income groups. As noted earlier in
the element, half of the RHNA number for very low income is assumed to apply to the extremely
low-income category.
Table 4-1 Income Group
Very Low Household income is less than 50% of the County median income.
Low Household income is between 51% and 80% of the County median income.
Moderate Household income is between 81% and 120% of the County median income.
Above Moderate Household income is greater than 120% of the County median income.
Source: 2020 HCD Income Definitions
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4.2 2020–2028 Regional Housing Needs Allocation
As noted, the total number of dwelling units that need to be accommodated during the planning
period for Arroyo Grande is 692 housing units. The four income group categories and their
respective allocation of housing units needed, derived from U.S. Census data and the ACS, are
outlined in Table 4-2. The combined 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 170 24.6%
Low 107 15.5%
Moderate 124 17.9%
Above Moderate 291 42.0%
Total 692 100%
Source: Regional Housing Needs Allocation Plan 2019, San Luis Obispo Council of Governments, U.S. Census/ACS
According to HCD and based upon federal income standards, the median household income for
a family of four in San Luis Obispo County was $97,300 in 2020. Table 4-3 indicates the income
levels for 2020.
Table 4-3 Income Limits, County of San Luis Obispo
Number of
Persons in
Household
1 2 3 4 5 6 7 8
Extremely
low-income $20,400 $23,300 $26,200 $29,100 $31,450 $35,160 $39,640 $44,120
Very low-
income $33,950 $38,800 $43,650 $48,500 $52,400 $56,300 $60,150 $64,050
Low-
income $54,350 $62,100 $69,850 $77,600 $83,850 $90,050 $96,250 $102,450
Median
Income $68,100 $77,850 $87,550 $97,300 $105,100 $112,850 $120,650 $128,450
Moderate
Income $81,750 $93,400 $105,100 $116,750 $126,100 $135,450 $144,750 $154,100
Source: HCD 2020.
Over the period from January 1, 2019 to September 2020, 118 above-moderate income primary
units, 22 accessory dwelling units, and a HASLO low-income housing project comprising 20 deed-
restricted low-income units were constructed or permitted in Arroyo Grande. In addition, two very-
low income units were entitled as part of a project receiving a density bonus. Eleven of the
accessory dwelling units constructed or approved are assumed to be available to low-income
families, while 11 accessory dwelling units constructed or approved are assumed to be moderate-
income units. The affordability assumptions about the accessory dwelling units being counted in
these income categories are included in the subsection later in this section.
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The City continues to 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 or federal financial
assistance.
After accounting for permit and construction activity in the period from January 2018 to
December 2019, the City has a remaining RHNA of 530 units. Of these remaining units, 244 are
lower-income units (see Table 4-4).
Table 4-5 shows the City’s RHNA, units permitted or constructed since January 1, 2019, and the
vacant and non-vacant land available for residential development. The bottom row shows the
RHNA remaining after those units are subtracted. It is important to note that the City is not
responsible for the actual construction of the units in the RHNA. 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.
Table 4-4 City Share of Regional Housing Need 2019–2028
Extremely
Low
Very
Low Low Moderate Above
Moderate
Total
(added across)
2019–2028 RHNA 85 85 107 124 291 692
Units Constructed/
Approved Since 1/1/2019 0 2 20 0 118 140
Accessory Dwelling Units
Constructed/Approved 0 0 11 11 0 22
Remaining 2019–2028 RHNA 244 113 173 530
Source: San Luis Obispo Council of Governments, City of Arroyo Grande 2020
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As Table 4-5 shows, the City can meet all its remaining RHNA with available vacant and non-
vacant sites and accessory dwelling unit development potential. The City has vacant and non-
vacant land available to accommodate 180 units. Of these, 113 units would be located on sites
that can be developed to accommodate the lower-income allocation. Additionally, the City has
identified accessory dwelling unit development potential of 350 units. Vacant and non-vacant
land and accessory dwelling unit potential are discussed in Section 4.3.
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 RHNAP. This analysis is not a
construction quota or an anticipated list of projects that will be constructed, given that the law
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.
Table 4-6 provides a list of vacant and non-vacant sites available for housing construction. Figure
4-1 presents a housing opportunity inventory map with locations for the sites discussed in Table 4-6.
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.
Development standards for the Village Core Downtown (VCD) and Village Mixed-Use (VMU)
districts allow densities of up to 15 dwelling units per acre. Other mixed-use districts include
Gateway Mixed-Use (GMU), Fair Oaks Mixed-Use (FOMU), and Traffic Way Mixed-Use (TMU), Office
Mixed-Use (OMU), Industrial Mixed-Use (IMU), and Highway Mixed-Use (HMU). Development
standards for most of these mixed-use districts have a range of maximum densities from 15 to 25
dwelling units per acre, with the exceptions in the IMU and TMU zoning districts, whose maximum
Table 4-5 Remaining RHNA, 2019–2028
Extremely
Low Very
Low Low Moderate Above
Moderate
Total
(added
across)
Subtotal remaining RHNA 244 113 173 530
Vacant Land Inventory1 56 8 59 123
Non-Vacant Land
Inventory1 57 0 0 57
Accessory Dwelling Unit
Potential 0 0 131 105 114 350
Total Additional Units from
Vacant and Non-Vacant
Land and ADU Potential
244 113 173 530
Surplus 2019–2028 RHNA 0 0 0 0
Notes:
1 Details about these sites are found in Table 4-6
Source: Regional Housing Needs Allocation Plan 2019, San Luis Obispo Council of Governments, City of Arroyo Grande 2020.
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density is subject to discretionary review. Exceptions to minimum density requirements include
GMU and FOMU zoning districts, which have minimum densities set at 75 percent of maximum.
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.
The City recognizes that the state requires land zoned at 20 units per acre or greater to meet the
extremely low, very low-, and low-income housing allocation. With the flexible density for mixed-
use (MU) zoned areas, the City is able to exceed the 20 units per acre, and in some areas only a
small area of the site is required to be commercial, allowing the remaining site to be developed
as residential. The project located at the intersection of Halcyon Road and Fair Oaks Road
achieved a density of 25 units per acre in the OMU zoning district. The project was less than 1-
percent commercial, demonstrating that a nearly 100-percent residential project can be
achieved in the OMU zoning district. Based on this recent project, the development potential is
assumed to be 95-percent residential for the sites included to address extremely low, very low,
and low-income RHNA in the OMU zoning district.
Other recently approved or constructed high-density residential projects in the mixed-use zoning
districts include the 1136 E. Grand project, which will demolish existing structures and construct a
41,000-square-foot development with a 2,220-square-foot medical office structure and twenty-
two residential units, two of which will be deed restricted for very-low income households. The 1214
E. Grand project, which will also demolish an existing commercial structure and construct a 21,700-
square-foot development with a 400-square-foot commercial structure and ten residential units.
Both projects are planned to include the maximum number of residential units allowed for the
zoning district at 25 units per acre. The City has demonstrated that it is flexible in approving higher-
density residential projects and that higher-density residential projects are being developed as
part of mixed-use projects.
Vacant Land
The current vacant land inventory (Table 4-6) identifies the potential for 123 units. Arroyo Grande
has over 70 acres of vacant land in the PD, RR, RS, SF, VMU, and OMU zoning districts. Most of these
sites are expected to accommodate above-moderate-income households. A map showing the
locations of vacant and non-vacant sites is shown as Figure 4-1.
Non-Vacant Land
The City also has non-vacant sites that are underutilized and have potential to redevelop for high
density housing during the planning period. All of the non-vacant sites included in Table 4-6 are
zoned to allow at least 20 units per acre in a mixed use project as described earlier in this section.
HASLO has agreed to a purchase price for the parcels at 700 Oak Park Boulevard listed in Table
4-6. The site includes four parcels, one vacant and three non-vacant. They all have the same
owner. HASLO has proposed a minimum of 56 low-income units, which can be accomplished
through a density bonus. HASLO is also considering an additional 10 housing units that would be
allowed with an 80-percent density bonus for projects that are 100-percent affordable. The site is
in the OMU zoning district, which allows multifamily housing in a mixed-use project at a density of
up to 20 dwelling units per acre with a CUP.
The other four non-vacant parcels are all underutilized and appropriately zoned to allow a mixed
use project with high density residential during the planning period. The precedent projects
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discussed in earlier sections are the type of project that would likely develop on these sites over
the course of the planning period. Details about each site are provided in Table 4-6.
Accessory Dwelling Units
In 2018 and 2019, City planning permit records indicated that an average of 18 accessory dwelling
units were permitted per year. Because of efforts the City is already making to promote and
facilitate ADUs and additional efforts committed to in the programs in this housing element, it is
assumed that an additional 350 accessory dwelling units will be permitted between now and
December 2028. Based on affordability calculations (see Table 3-14) and current rental rates, it is
expected that the accessory dwelling units will be affordable to low-, moderate-, and above-
moderate income households. The total housing units permitted and constructed in 2019 and
2020, together with units identified in the land inventory, will not provide sufficient capacity to
meet the RHNA target without relying on projected accessory dwelling units.
In the fall of 2019, San Luis Obispo County conducted a countywide market study of accessory
dwelling units that included all of the cities and unincorporated areas within the county. The
market study found that accessory dwelling units currently available for rent in San Luis Obispo
County are affordable to a variety of income groups and household sizes. The average market
rate for an accessory dwelling unit ranges from about $800 per month for a 350-square-foot
accessory dwelling unit to up to $1,495 per month for 550-square-foot accessory dwelling unit,
placing many market-rate accessory dwelling units in the affordable range for low-income
households.
In addition, accessory dwelling unit research conducted by the University of California Berkeley’s
(UC Berkeley’s) Center for Community Innovation (Chapple et al. 2017) indicates that 40 percent
of accessory dwelling units are typically rented to family members or friends at either no cost or
below-market rental rates. Based on the combination of the countywide market study and the
Chapple industry research, of the 350 accessory dwelling units projected to be built in Arroyo
Grande between 2020 and 2028, 131 are anticipated to be affordable to low-income households,
105 to moderate-income households, and 114 to above-moderate-income households.
The Arroyo Grande accessory dwelling unit regulations encourage this housing type and allow
flexibility in their development. The regulations may assist homeowners in purchasing a home,
provide security for people living alone, provide quarters for relatives, make more efficient use of
infrastructure, increase the diversity of people living in neighborhoods, and offer an opportunity
for low- and moderate-income renters. Arroyo Grande last updated its regulations for accessory
dwelling units in 2017. Program A.2-1 calls for updates to the accessory dwelling unit regulations
to comply with changes to state law since 2017 and for other efforts to promote and facilitate
ADUs. Programs A.2-2 and A.3-3 also establish programs and efforts related to facilitating and
making ADUs more affordable in Arroyo Grande.
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Table 4-6 Land Inventory
APN Address Site Size
(Acres) Land Use Zoning
District
Maximum
Density
Maximum
Dwelling Units
Realistic
Dwelling Units -
80% of
Maximum Units
Unless Noted
Vacant
or Non-
Vacant
Notes/Site Constraints Income Categories
Affordable To Infrastructure
Low Density Sites
007-019-015 318 Grace Lane 0.67 LD PD 1
unit/parcel 1.0 1 Vacant Per Reso 3732 Above Moderate Yes
007-781-055 Noyes Road 24.53 LD PD 2.5 10.0 8 Vacant Reso 3775 changed land use designation to Very-Low
Density Planned Development Above Moderate Yes
007-781-056 Noyes Road 26.35 LD PD 2.5 11.0 8 Vacant Reso 3775 changed land use designation to Very-Low
Density Planned Development Above Moderate Yes
007-851-034 737 Arabian Circle 0.61 LD PD 0.7 1.0 1 Vacant Per Reso 1745 approving Tract 1149 Above Moderate Yes
007-851-039 791 Arabian Circle 1.43 LD PD 0.7 1.0 1 Vacant Per Reso 1745 approving Tract 1149 Above Moderate Yes
007-015-018 164 Rodeo Drive 0.27 LMD PD 1
unit/parcel 1.0 1 Vacant Per Reso 2133 approving Tract 1390 Above Moderate Yes
007-784-008 252 Via Bandolero 0.58 LMD PD 0.9 1.0 1 Vacant Above Moderate Yes
007-785-022 534 Calle Cuervo 0.74 LMD PD 0.9 1.0 1 Vacant Above Moderate Yes
PD Totals 55.18 22
007-061-004 No address
assigned 0.59 LMD RR 1 0.6 1 Vacant Above Moderate Yes
007-061-010 No address
assigned 0.52 LMD RR 1 0.5 1 Vacant Above Moderate Yes
RR Totals 1.10 2
007-291-033 215 Cindy Way 1.18 LD RS 2.5 2.9 2 Vacant Above Moderate Yes
007-291-038 265 Cindy Way 0.98 LD RS 2.5 2.5 1 Vacant Above Moderate Yes
007-291-039 276 Cindy Way 1.15 LD RS 2.5 2.9 2 Vacant Above Moderate Yes
007-291-042 221 Cindy Way 1.36 LD RS 2.5 3.4 2 Vacant Above Moderate Yes
007-211-007 210 Tally Ho Road 0.59 LMD RS 2.5 1.5 1 Vacant Above Moderate Yes
007-254-062 576 Paseo Street 0.19 LMD RS 2.5 1.0 1 Vacant Above Moderate Yes
007-254-063 582 Paseo Street 0.21 LMD RS 2.5 1.0 1 Vacant Above Moderate Yes
007-471-002 366 Stagecoach
Road 0.29 LMD RS 2.5 1.0 1 Vacant Above Moderate Yes
007-471-029 416 Stagecoach
Road 0.26 LMD RS 2.5 1.0 1 Vacant Above Moderate Yes
007-471-030 410 Stagecoach
Road 0.24 LMD RS 2.5 1.0 1 Vacant Above Moderate Yes
007-471-031 400 Stagecoach
Road 0.24 LMD RS 2.5 1.0 1 Vacant Above Moderate Yes
007-471-033 355 Gularte Road 0.25 LMD RS 2.5 1.0 1 Vacant Above Moderate Yes
007-471-035 323 Gularte Road 0.26 LMD RS 2.5 1.0 1 Vacant Above Moderate Yes
007-471-036 302 Zogata Way 0.25 LMD RS 2.5 1.0 1 Vacant Above Moderate Yes
007-471-037 314 Zogata Way 0.26 LMD RS 2.5 1.0 1 Vacant Above Moderate Yes
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Table 4-6 Land Inventory
APN Address Site Size
(Acres) Land Use Zoning
District
Maximum
Density
Maximum
Dwelling Units
Realistic
Dwelling Units -
80% of
Maximum Units
Unless Noted
Vacant
or Non-
Vacant
Notes/Site Constraints Income Categories
Affordable To Infrastructure
007-471-038 328 Zogata Way 0.26 LMD RS 2.5 1.0 1 Vacant Above Moderate Yes
007-471-039 340 Zogata Way 0.28 LMD RS 2.5 1.0 1 Vacant Above Moderate Yes
007-471-040 346 Zogata Way 0.24 LMD RS 2.5 1.0 1 Vacant Above Moderate Yes
077-013-006 1575 Hillcrest Drive 0.42 LMD RS 2.5 1.1 1 Vacant Above Moderate Yes
RS Totals 8.90 22
077-021-010 1457 Hillcrest Drive 0.36 LMD SF 4.5 1.6 1 Vacant Above Moderate Yes
007-511-002 No address
assigned 0.29 MD SF 4.5 1.3 1
Vacant Above Moderate Yes
007-548-029 No address
assigned 0.75 MD SF 4.5 3.4 2
Vacant Above Moderate Yes
007-548-032 No address
assigned 0.45 MD SF 4.5 2.0 1
Vacant Above Moderate Yes
007-548-038 225 Whitely Street 0.15 MD SF 4.5 1.0 1 Vacant Above Moderate Yes
007-572-014 702 Myrtle Street 0.17 MD SF 4.5 1.0 1 Vacant Above Moderate Yes
077-126-009 1406 Strawberry
Avenue 0.16 MD SF 4.5 1.0 1 Vacant Above Moderate Yes
077-151-014 1278 Cedar Street 0.14 MD SF 4.5 1.0 1 Vacant Above Moderate Yes
077-223-070 185 Wood Place 0.16 MD SF 4.5 1.0 1 Vacant Above Moderate Yes
077-353-014 902 The Pike 0.26 MD SF 4.5 1.2 1 Vacant Above Moderate Yes
077-163-001 Cedar & Aspen
Streets 0.60 MD SF 4.5 2.7 2
Vacant Above Moderate Yes
SF Totals 3.49 13
Low Density
Totals 68.67 59
Medium Density Sites
007-501-036 510 E Branch Street 0.24 VC VMU 15 3.6 2 Vacant Moderate Yes
007-501-037 516 E Branch Street 0.16 VC VMU 15 2.5 1 Vacant Moderate Yes
007-541-004 122 Nelson Street 0.18 VC VMU 15 2.7 2 Vacant Moderate Yes
007-541-025 126 Nelson Street 0.16 VC VMU 15 2.4 1 Vacant Moderate Yes
007-541-040 117 Poole Street 0.23 VC VMU 15 3.5 2 Vacant Moderate Yes
Medium
Density Totals 0.98 8
High Density Sites
077-011-010
through -13
700 Oak Park
Boulevard 2.26 MU OMU 20 42.9 56
One
vacant
and
three
non-
This site is made up of 4 adjacent parcels, one vacant
and 3 non-vacant with the same owner. Multi-family
allowed with CUP in a mixed use project. HASLO is in the
process of purchasing these parcels to build affordable
housing. They are planning to build at a minimum 56 units
(through a density bonus).
Extremely Low, Very
Low, Low Yes
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Table 4-6 Land Inventory
APN Address Site Size
(Acres) Land Use Zoning
District
Maximum
Density
Maximum
Dwelling Units
Realistic
Dwelling Units -
80% of
Maximum Units
Unless Noted
Vacant
or Non-
Vacant
Notes/Site Constraints Income Categories
Affordable To Infrastructure
vacant
parcels
077-204-028 280 S Halcyon 0.83 Office
Professional OMU 20 15.8 12 Non-
Vacant
Multi-family allowed with CUP in a mixed use project. The
property is developed with a small single-family
residence and therefore underutilized. The surrounding
uses include commercial and high density residential
development. The owner has expressed interest in
developing housing on the parcel.
Extremely Low, Very
Low, Low Yes
077-211-022 1125 E Grand 0.85 Mixed Use FOMU 25 20.2 16 Non-
Vacant
Multi-family allowed with CUP in a mixed use project. This
parcel is nearly vacant with a few very small abandoned
structures. The surrounding uses are primarily other similar
commercial uses.
Extremely Low, Very
Low, Low Yes
077-221-031 1019 E Grand 0.75 Mixed Use FOMU 25 17.8 14 Non-
Vacant
Multi-family allowed with CUP in a mixed use project. This
parcel has one single-family house on it with about half
the parcel not built on. The surrounding uses are primarily
commercial uses.
Extremely Low, Very
Low, Low Yes
006-311-063 601 E Grand 1.05 Mixed Use HMU 20 20.0 15 Non-
Vacant
Multi-family allowed with CUP in a mixed use project. This
parcel is underutilized and is mostly paved and unpaved
parking/vacant lot. There is one very small commercial
structure about the size of a coffee stand which is in use
as a locksmith business. The surrounding uses are
commercial.
Extremely Low, Very
Low, Low Yes
High Density
Totals 5.74 113
Totals 75.39 180
Source: City of Arroyo Grande 2020.
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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. To comply with Senate Bill 1087, the City will immediately forward its adopted Housing
Element to its Public Works Department so they can grant priority for water and sewer service
allocations to proposed developments that include units affordable to lower-income households.
Water
The City pumps groundwater and purchases treated surface water. Groundwater is pumped from
two separate basins: the Santa Maria Groundwater Basin and the Pismo Formation. The Santa
Maria Basin is adjudicated, and the City currently has an allocation of 1,323 acre-feet per year
(AFY) from that basin. The Pismo Formation is not adjudicated, and the City has established
appropriative rights. The majority of the City’s supply is from Lopez Lake. The City has a contract
with the County of San Luis Obispo Water Conservation and Flood Control District providing an
entitlement of 2,290 AFY of treated surface water in normal conditions. The City’s current total
water supply is 3,773 AFY.
In calendar year 2019, the City used 2,138 acre-feet of water, which calculates to a per-capita
consumption of 108 gallons per person per day. If the per-capita consumption remains at this
level, the City’s buildout population of 20,000 would require an annual supply of 2,420 acre-feet,
which can be met with the current water supply. In addition to the existing water supply, the
Central Coast Blue project to supplement groundwater is anticipated to provide Arroyo Grande
with 429 acre-feet of water annually. Table 4-7 shows the current and projected water supply
through 2035.
Table 4-7 Current and Projected Water Supply – Acre-feet per year (AFY)
Water Supply Sources 2015 2020 2025 2030 2035
Groundwater – Santa Maria Groundwater Basin 1,323 1,323 1,3231 1,3231 1,3231
Groundwater – Pismo Formation 160 160 2002 2002 2002
County of San Luis Obispo Lopez Reservoir Project 2,290 2,290 2,2903 2,2903 2,2903
Total 3,773 3,773 4,242 4,242 4,242
Notes:
1 This amount will be adjusted lower based on the deep well index and the basin groundwater model during dry years and drought.
2 Well No. 11, planned to be installed in 2021, will provide an additional 40 AFY.
3 The water supply contract currently is undergoing changes that include storage rights to unused water. It is projected the 2,290 AFY entitlement will increase based on additional stored water during normal years.
Source: City of Arroyo Grande 2020.
The City continues to offer free plumbing retrofits, washing machine rebates, and commercial
dishwashing machine rebates to customers. City customers have reduced their per-capita
consumption rate by 34 percent since 2013, conserving 975 AFY. This effort, along with improved
groundwater and surface water management, coupled with the Central Coast Blue recycled
water project, will provide Arroyo Grande with a sustainable water supply for the foreseeable
future.
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The Municipal Code was revised during the 2013-2016 drought to City adopt emergency water
shortage restrictions and regulations, along with permanent water conservation measures. The
water system has increased capacity by building an additional 250,000-gallon storage tank for
the Oro Pressure Zone. This zone now has two tanks storing up to 500,000 gallons. Several water
main projects have been completed, replacing old 4-inch mains with new 8-inch mains. The
current 2015 Urban Water Management Plan and Water System Master Plan provide guidance
on the Capital Improvement Plan five-year document. The water distribution system has a
hydraulic model that can be used to determine capacity issues for new development and
required system upgrades. The water system is operated under a Water Supply Permit issued by
the State Water Resources Control Board. The permit requires monthly and annual reporting of
water quality and system operation.
Sewer
The City operates a sewer collection system of approximately 68 miles of sewer main, 1,300
maintenance holes, and 5 sewer lift stations. The sewer system is operated under a collection
system discharge permit from the State Water Resources Control Board, which includes the
requirement of a Sewer System Management Plan completed every five years.
The sewer system has a hydraulic model that can be used to determine capacity for new
development projects. The Sewer System Master Plan provides recommended capital
improvement projects for the five-year document. The need for the South San Luis Obispo County
Sanitation District’s services is dependent on the land use approvals by the City. The City of Arroyo
Grande anticipates growing at a 1 percent growth rate over the next 20 years. The Sanitation
District facilities are in good condition and a plan to make capital improvements is currently being
implemented.
Public Safety
The City of Arroyo Grande Police Department is responsible for law enforcement, investigations,
and crime prevention programs within 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 fi re department staffing. There are no standards regarding appropriate or
adequate numbers of officers per number of residents. Average response time within 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.
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, three high schools, and New Tech High
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School. With the exception of Nipomo High, recent studies have indicated that most of the schools
were built in the 1950s and 1960s and thus may be subject to needed renovation. Information
provided in the Arroyo Grande General Plan Environmental Impact Report adopted in 1991
indicated that many of the schools were operating at an over capacity level. With the opening
of Nipomo High in 2002, that high school level capacity was resolved. In 2016, voters in the Lucia
Mar School District approved Measure I, authorizing up to $170,000,000 in general obligation (GO)
bond funds, which contributed renovation funds and modernization to Nipomo High Schools,
Lopez High School, and Arroyo Grande High School.
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 housing. HCD identifies and provides
detailed information on the grants and loans available for affordable and workforce housing,
some of which are listed in Table 4-8. HCD and other state agencies identify funding and programs
for housing. Certification of a jurisdiction’s housing element is required for eligibility for many state
funding sources. Table 4-8 Local Financial Resources
Funding Source Description
Affordable Housing and
Sustainable Communities
Program (AHSC)
The AHSC funds land use, housing, transportation, and land preservation
projects that support infill and compact development and reduce
greenhouse gas (GHG) emissions.
CalHome Program
CalHOME makes grants to local public agencies and nonprofit
corporations to assist first-time homebuyers become or remain
homeowners through deferred-payment loans. Funds can also be used
to assist in the development of multiple-unit ownership projects.
California Emergency Solutions
and Housing (CESH)
The CESH Program provides grant funds to eligible applicants for eligible
activities to assist persons experiencing or at risk of homelessness. Eligible
applicants are Administrative Entities (AEs; local governments, non-
profit organizations, or unified funding agencies) designated by the
Continuum of Care (CoC) to administer CESH funds in their service area.
Golden State Acquisition Fund
(GSAF)
GSAF was seeded with $23 million from the Department’s Affordable
Housing Innovation Fund. Combined with matching funds, GSAF makes
up to five-year loans to developers.
Housing Investment
Partnerships Program (HOME)
HOME assists cities, counties, and non-profit community housing
development organizations (CHDOs) to create and retain affordable
housing for lower-income renters or owners. At least 50 percent of the
amount is awarded to rural applicants and 15 percent is set aside for
CHDOs. Funds are available in California communities that do not
receive HOME funding directly from the U.S. Department of Housing and
Urban Development.
Housing for a Health California
(HHC)
HHC provides funding on a competitive basis to deliver supportive
housing opportunities to developers using the federal National Housing
Trust Funds (NHTF) allocations for operating reserve grants and capital
loans.
Housing-Related Parks Program
The Housing-Related Parks Program funds the creation of new park and
recreation facilities or improvement of existing park and recreation
facilities that are associated with rental and ownership projects that are
affordable to very low- and low-income households.
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Funding Source Description
Infill Infrastructure Grant
Program (IIG)
IIG provides grant funding for infrastructure improvements for new infill
housing in residential and/or mixed-use projects. Funds are made
available through a competitive application process.
Joe Serna, Jr., Farmworker
Housing Grant (FWHG)
FWHG makes grants and loans for development or rehabilitation of
rental and owner-occupied housing for agricultural workers with priority
for lower-income households
Local Early Action Planning
(LEAP) Grants
The LEAP program assists cities and counties with planning for housing
through providing over the counter, non-competitive planning grants.
Local Housing Trust Fund
Program (LHTF)
Helps finance local housing trust funds dedicated to the creation or
preservation of affordable housing.
Mobile Home Park Resident
Ownership Program (MPROP)
Funds awarded to mobile-home park tenant organizations to convert
mobile-home parks to resident ownership.
Multifamily Housing Program
(MHP)
MHP makes low-interest, long-term deferred-payment permanent loans
to developers of affordable multifamily rental and transitional housing
projects for lower-income households.
National Housing Trust Fund
National Housing Trust Fund is a permanent federal program with
dedicated source(s) of funding not subject to the annual
appropriations. The funds can be used to increase and preserve the
supply of affordable housing, with an emphasis on rental housing for
extremely low-income households (ELI households, with incomes of 30
percent of area median or less).
No Place Like Home
The No Place Like Home Program will have $2 billion in bond proceeds
to invest in the development of permanent supportive housing for
persons who are in need of mental health services and are
experiencing homelessness, chronic homelessness, or who are at risk of
chronic homelessness.
Pet Assistance and Support
(PAS) Program
Pet Assistance and Support provides funds to homeless shelters for
shelter, food and basic veterinary services for pets owned by individuals
experiencing homelessness.
Predevelopment Loan Program Provide predevelopment capital loans to finance the start of low-
income housing projects.
California Homebuyer’s Down
Payment Assistance Program
(CHDAP)
Collaboration with lenders to offer below market rate down-payment
loans.
Affordable Housing Partnership
Program (AHPP)
This program allows borrowers to combine a CalHFA first mortgage loan
with down payment and/or closing cost assistance from an Affordable
Housing Program Partner.
Housing Enabled by Local
Partnerships (HELP)
HELP Program and other below-market-rate financing and deferred
loans for local government and non-profits producing affordable
housing development.
California Housing Loan
Insurance Fund (CaHLIF)
Provides primary mortgage insurance for hard-to-qualify borrowers,
expanding home ownership opportunities.
California Housing Finance
Agency (CalHFA)
Conventional Loans
Various programs providing lower-cost loans, such as a 30-year fixed,
interest-only PLUS, 40-year fixed
CalHFA Down-Payment
Assistance
Various programs providing loans for down payments, such as California
Homebuyer's Down-payment Assistance Program (CHDAP)
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Funding Source Description
Section 811 Project Rental
Assistance
Section 811 Project Rental Assistance offers long-term project-based
rental assistance funding from the U.S. Department of Housing and
Urban Development (HUD) through a collaborative partnership among
the California Housing Finance Agency (CalHFA), Department of Health
Care Services (DHCS), Department of Housing and Community
Development (HCD), Department of Developmental Services (DDS),
and California Tax Credit Allocation Committee (TCAC).
Self-Help Builder Assistance
Program
Provides a source of financing to nonprofit 501(c)(3) corporations who
use self-help type construction for affordable housing.
Builder-Lock Program
Builders/Developers may purchase forward commitments for
permanent first mortgage financing for CalHFA-eligible borrowers tied
to their construction/marketing program at single-family new-home
developments anywhere in the state.
Mortgage Credit Certificate Federal tax credit for low- and moderate-income homebuyers who
have not owned a home in the past three years.
California Tax Credit Allocation
Committee (CTCAC): Low-
Income Housing Tax Credits
(LIHTCs)
The CTCAC administers the federal and state LIHTC Programs. Both
programs were created to promote private investment in affordable
rental housing for low-income Californians.
California Tax Credit Allocation
Committee (CTCAC): Historic
Rehabilitation Tax Credits
(HRTCs)
CTCAC and the California Office of Historic Preservation also administer
the HRTC program, which provide a 10%–20% one-time, Internal
Revenue Service tax credit on eligible rehabilitation costs for pre-1936
and National Register historic properties.
California Debt Limit Allocation
Committee (CDLAC): Various
Programs
Federal law limits how much tax-exempt debt a state can issue in a
calendar year for private projects that have a qualified public benefit.
This cap is determined by a population-based formula. CDLAC was
created to set and allocate California’s annual debt ceiling and
administer the state’s tax-exempt bond program to issue the debt.
CDLAC’s programs are used to finance affordable housing
developments for low-income Californians, build solid waste disposal
and waste recycling facilities, and finance direct loans used by in-need
college students and their parents.
Assisted-Living Conversion
Program (ALCP)
To provide private nonprofit owners of eligible developments with a
grant to convert some or all the dwelling units in the project into an
Assisted Living Facility (ALF) for the frail elderly.
Community Development
Block Grants (CDBG)
Grant awarded to the City annually on a formula basis to fund housing
and economic development for low- and moderate-income persons.
Emergency Capital Repairs
Program
Provides grants for substantial capital repairs to eligible multifamily
projects that are owned by private nonprofit entities.
HOME Investment Partnership
(HOME) Program Grant program specifically for housing.
Emergency Shelter Grant
Program (ESG)
Grant awarded on an annual formula basis for shelter and services to
homeless persons.
Housing Opportunities for
Persons with AIDS (HOPWA)
Funds available county-wide for supportive services and housing for
persons with HIV/AIDS.
Shelter Plus Care (S+C) Grants for rental assistance, in combination with supportive services
from other sources, to homeless people.
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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 2020,
the fund has a balance of $928,000 available for projects that increase the supply of affordable
housing units
4.6 Administrative Resources
Housing Authority of San Luis Obispo
The Housing Authority of San Luis Obispo (HASLO) was created to provide housing assistance for
the county’s lower-income residents. HASLO administers the Housing Choice Voucher/Section 8
rental assistance program and manages public housing developments. HASLO also administers
the Mortgage Credit Certificate Program, the Security Deposit Program, and other programs.
Currently, the agency provides 194 Section 8 vouchers to low-income households in Arroyo
Grande and maintains a waiting list that is currently closed.
People’s Self-Help Housing
People’s Self-Help Housing (PSHH) is a diverse nonprofit organization committed to furthering
opportunities for decent, safe, affordable housing and support services in San Luis Obispo, Santa
Barbara, and Ventura Counties. PSHH has two primary programs - a Self-Help Homeownership
program and a Rental Housing Development and Construction Services Program. Since its
inception in the 1960s, PSHH has developed more than 1,200 sweat-equity homes and 1,700 rental
units and has assisted in the rehabilitation and repair of more than 3,000 housing units. PSHH
currently owns and operates four affordable housing projects in Arroyo Grande: Courtland Street
Apartments (36 low- and very low-income units), Juniper Street Apartments (14 low- and very low-
income units), Cawelti Court (28 units of housing for Seniors 62+ and Individuals living with
disabilities) and Oak Forest Apartments (24 low and very low-income units).
PSHH also provides free seminars to residents on the Central Coast, including those aimed at first-
time homebuyers and foreclosure prevention.
Community Action Partnership of San Luis Obispo County (CAPSLO)
CAPSLO provides a wide variety of social services in San Luis Obispo County, including Homeless
Services, Head Start, Health Services, and Energy Conservation Services. CAPSLO operates the 40
Prado Road Campus in San Luis Obispo, which provides shelter and services to the county’s
homeless population. They also operate Head Start programs and two health centers in San Luis
Obispo and Arroyo Grande. The Energy Conservation division provides weatherization and home
repairs throughout the county. 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 non-governmental constraints.
5.1 Governmental Constraints
The intent of this section is to analyze governmental constraints that affect housing development,
as well as to identify constraints 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
significant 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 eight distinct elements and requires that the General Plan
be designed as a balanced, integrated document that is internally consistent. The Housing
Element is one of eight distinct General Plan elements and is required to address a number of
specific issues.
The primary means that the City uses to implement the General Plan is its Development Code,
which establishes development standards, intensity of development, and minimum site standards.
Various residential and mixed-use zoning districts are established that are intended to implement
the densities set by the General Plan. Other requirements in the City’s Development Code include
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 to the zoning districts implemented by the Development Code. Table 5-1 also
shows the maximum density per land use designation.
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Table 5-1 Urban Land Use Element and Development Code
General Plan Classification
General Plan
Dwelling Unit
Max. Density
Development Code Consistency
Consistent Zoning Min Lot Size in
Development Code
Agriculture (Ag) 1 du/10 ac.
General, Agricultural
Preserve or Agricultural
Preservation Overlay
10 ac.
Conservation/
Open Space(C/OS)
1 du/20 ac.
1 du/10 ac.
1 du/5 ac.
PF 25,000 sf
Single-Family Residential
Very Low Density (VLD) 1 du/2.5 ac. RE 92,500 sf
Low Density (LD) 1 du/1.5 ac.
1 du/1 ac.
RH
RR
49,000 sf
40,000 sf
Low Medium Density (LM) 2.5 du/1 ac. RS 12,000 sf2
Medium Density (MD) 4.5 du/ac. SF/VR SF – 7,200 sf
VR – 6,750 sf
Multifamily Residential
Multifamily 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
Notes
1 Density Allowed in RR zoning district is 1.0 du/ac
2 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
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 allow 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 zoning development standards are shown in Table 5-4, multifamily
and other zoning development standards are shown in Table 5-5, and Mixed-Use development
standards are shown in Table 5-6.
Multifamily projects of 2 to 4 units and multifamily projects of more than four units in the Multifamily
Very High Density (MFVH) zoning district are permitted subject to an MUP, which is an
administrative process. With these projects, the Architectural Review Committee (ARC) makes a
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recommendation to the Community Development Director. Multifamily projects greater than four
units in all other districts require a 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 (Development
Code);
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 EIR to address the impacts of
development proposed by the plan. The anticipated residential development evaluated in the
General 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.
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Table 5-2 Housing Types Permitted by Zoning District – Residential Zoning District
Residential Uses/Housing Type RE RH RR RS SF VR MF MFA MFVH MHP
Accessory dwelling unit P P P P P P P P P P
Assisted Living (Congregate Care) NP NP NP NP NP NP C C C NP
Boarding/rooming houses NP NP NP NP NP NP C C C NP
Condominium (air space) NP NP NP NP NP NP C C C NP
Convalescent care NP NP NP NP NP NP C C C NP
Emergency shelters NP NP NP NP NP NP NP NP NP NP
Employee housing NP NP NP NP NP NP NP NP NP NP
Home occupations P P P P P P P P P P
Homeless shelters within religious or social organization buildings NP NP NP NP NP NP C C C NP
Live-Work NP NP NP NP NP NP NP NP NP NP
Mobile home parks C C C C C C C C C C
Mobile home subdivisions C C C C C C C C C C
Multiple-family housing (2–4 units) in a mixed-use project NP NP NP NP NP NP (1) (1) (1) NP
Multiple-family attached (5 or more units) in a mixed-use project NP NP NP NP NP NP (1) (1) (1) NP
Multiple-family attached (2–4 units) not in a mixed-use project NP NP NP NP NP NP MUP MUP P NP
Multiple-family attached (5 or more units) not in a mixed-use
project NP NP NP NP NP NP C C MUP NP
Residential care facility, 6 or fewer persons P P P P P P P P P P
Residential care facility, 7 or more persons NP NP NP NP NP NP NP NP NP NP
Senior independent living uses NP NP NP NP NP NP C C C NP
Single-family attached (twin home, triplex, fourplex) NP PUD NP NP PUD NP PUD PUD NP NP
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
Transitional and Supportive Housing P P P P P P P P P P
(1) Determined by the most restrictive requirement among uses.
Legend
P = Permitted C = Permitted subject to issuance of a Conditional-Use Permit PUD = Permitted subject to issuance of a Planned Unit Development Permit
MUP = Minor-Use Permit NP = Not Permitted Source: City of Arroyo Grande Development Code
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Table 5-3 Housing Types Permitted by Zoning District – Mixed-Use Zoning District
Residential Uses 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 PF AG AP Specific Use Standards
Accessory dwelling unit NP NP NP NP NP NP NP NP NP NP C C
Assisted Living (Congregate Care) NP NP CUP CUP CUP/ PED CUP/ PED NP CUP NP CUP NP NP
Boarding/rooming houses NP NP NP NP NP NP NP NP NP NP NP NP
Condominium (air space) NP NP NP NP NP NP NP NP NP NP NP NP
Convalescent care NP NP NP NP NP NP NP NP NP CUP NP NP
Emergency shelter P NP NP NP NP NP P NP NP (5) NP NP
Employee Housing NP NP NP NP NP NP NP NP NP NP C C
Home occupation NP MUP P P P P MUP P NP NP P P 16.16.090
Homeless shelters within religious
or social organization buildings NP NP NP NP NP NP NP NP NP CUP NP NP
Live-Work NP P NP NP NP NP P NP NP NP NP NP
Mobile home parks NP NP NP NP NP NP NP NP NP NP NP NP
Mobile home subdivisions NP NP NP NP NP NP NP NP NP NP NP NP
Multiple-family attached (2 - 4
units) not in a mixed-use project NP NP MUP/ PED MUP CUP/ PED CUP/ PED CUP CUP NP NP NP 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.
Multiple-family attached (5 or
more units) not in a mixed-use
project
NP NP NP CUP CUP/PED CUP/ PED
CUP (on
lots >20,000
square feet
CUP (on lots
>20,000
square feet)
NP NP NP 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.
Multiple-family attached (2 - 4
units) in a mixed use project NP NP MUP/ PED MUP CUP/ PED CUP/ PED CUP CUP NP NP NP 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.
Multiple-family attached (5 or
more units) in a mixed use project NP NP NP CUP CUP/PED CUP/ PED
CUP (on
lots >20,000
square feet
CUP (on lots
>20,000
square feet)
NP NP NP 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 fewer
persons NP NP MUP/ PED MUP MUP/PED MUP NP MUP NP CUP NP NP
Residential care facility, 7 or more
persons NP NP CUP/PED CUP CUP/PED CUP/ PED NP CUP NP CUP NP NP
Senior independent living uses NP NP NP NP NP NP NP NP NP NP NP NP
Single-family residential within a
mixed-use project NP NP NP MUP NP NP NP NP NP NP NP NP
Single-family attached (twin
home, triplex, fourplex) NP NP NP MUP (3) NP NP NP NP NP NP NP NP
Single-family detached NP NP NP MUP (3) NP NP NP NP NP NP P/C (2) P/C (2)
Small lot single-family detached NP NP NP NP NP NP NP NP NP NP NP NP
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Table 5-3 Housing Types Permitted by Zoning District – Mixed-Use Zoning District
Residential Uses 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 PF AG AP Specific Use Standards
Transitional and Supportive
Housing (4) (4) (4) (4) (4) (4) (4) (4) (4) NP NP NP
(1) Size break between large
and small day care differs
between residential and
commercial zoning.
(2) Permitted on conforming
lots; conditional on non-
conforming lots
(3) Within a mixed-use project
only
(4) Subject to the same
restrictions as the same
residential type within this
zone.
(5) See Homeless Shelters within
religious or social
organization buildings
Legend
IMU = Industrial Mixed Use District (El Camino) P = Permitted Use OMU =Office Mixed Use District
TMU = Traffic Way Mixed Use District CUP = Conditional-Use Permit RC = Regional Commercial District
VCD = Village Core Downtown District NP = Not Permitted HCO = Historic Character Overlay District (Design Overlay District 2.4)
VMU = Village Mixed Use District FOMU = Fair Oaks Mixed Use District MUP = Minor-Use Permit
GMU = Gateway Mixed-Use District HMU= Highway Mixed Use District 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 Development Code
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Table 5-4 Residential Site Development Standards Single-Family Zoning Districts
RE RH RR RS SF VR PD
Maximum density (DUs per
gross acre) 0.4 0.67 1.0 2.5 4.5 4.5 -34
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 -34
Minimum lot width3 200 ft. 130 ft. 120 ft. 80 ft. 70 ft. 50 ft. -33, 34
Minimum lot depth 250 ft. 200 ft. 200 ft. 100 ft. 100 ft. 100 ft. -33, 34
Minimum front yard 50 ft. 35 ft. 35 ft. 25 ft. 20 ft. 15 ft. -34
Minimum interior side yard
setback 30 ft. 10% of
lot width
10% of lot
width
5 ft. one side, 10 ft. other side
(For lots <12,000 sq. ft use SF)
5 ft. one side,
10 ft. other side 5 ft. -34
Minimum street side yard
setback 30 ft. 15% of
lot width
15% of lot
width 15 ft. 15 ft. 10 ft. -34
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) -34
Maximum lot coverage4 35% 35% 35% 30% (For lots < 10,000 sq. ft. use SF) 40% 40%
30%, or as
shown on the
Development
Plan
Maximum height for buildings
and structures 30 ft. or 2 stories, whichever is less, 14 ft. for accessory buildings
-34
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. -34
Source: City of Arroyo Grande Development Code
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Table 5-5 Residential Site Development Standards Multiple-Family and Other Zoning Districts
MF MFA MFVH MHP
Maximum density (DUs 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 Zoning Districts
IMU TMU VCD VMU GMU FOMU HMU OMU
Maximum density –
Mixed-Use (DUs per
gross acre)
--8 --8 15 15 2516 2516 2016 2016
Maximum density –
Multifamily housing (DUs
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.
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Table 5-6 Residential Site Development Standards Mixed-Use Zoning Districts
Front Yard Setback 10 ft. 0-15 ft. 25 0-15 ft. 26 0-15 ft. 0-10 ft.18 0-10 ft.18 0-15 ft. 25 0-10 ft. 18
Rear Yard setback 0-15 ft.9 0-15 ft.10 0-15 ft. 0-15 ft.14 0-15 ft. 19 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. 25 0-15 ft.
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
Improvement
District Plan in
Section
16.56.020
Reference
Parking VMU
and HCO in
Section
16.56.020
(C)
--28 --30 --31
Reference
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
Reference
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 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:
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Lot Size Floor Area Ratio (FAR)
0 — 4,000 square feet net 0.35
4,001 — 7,199 square feet net 0.40
7,200 — 11,999 square feet net 0.50
12,000 — 39,999 square feet net 0.45
40,000 + square feet net
The above FARs shall not apply to condominium or planned unit development (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 Uniform Building Code standards.
6 The minimum parcel size within the mobile home district may be reduced to 3,600 square feet with a minimum average width of 40 feet and a minimum frontage of not less than 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 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 6,000 square feet per lot within the subdivision.
(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 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 20 feet measured from the property line shall be required for proposed commercial use.
11 30 feet 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 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.
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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 square feet: 200 square feet of publicly accessible open space is required for every 5,000 square feet 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 are found in Chapter 16.60.
28 See Design Guidelines and Standards. Parking is to be located behind buildings or to the side. Driveways along E. Grand 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-use 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 Policy LU5-11. For mixed-use projects, refer to Section 16.48.065. Additional sign standards are also found in Chapter 16.60.
33 Minimum lot sizes may be reduced by two-thirds if the area reduction is devoted to common area, open space, green belt, or other recreational uses.
34 Per development plan.
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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. 679 in 2016, which amended the Arroyo Grande Municipal Code
Chapter 8.04 and 8.08 related to the adoption of the California Fire Code and International Fire
Code; and amended 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. The 2016 Ordinance also made a local amendment to Section 15.04.024 of the Municipal
Code regarding fire sprinklers. Code enforcement is complaint-based. If an infraction is found, the
enforcement officer provides a list of potential resources to the homeowner. 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). To date, two
very-low income units have been entitled during previous planning periods, but otherwise,
applicants have chosen to pay the in-lieu fee described in the ordinance. To incentivize the
entitlement of affordable units, the City increased the housing in-lieu fee from 1 percent to 5
percent.
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;
• At least 10 percent lower-income units;
• 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.
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 E.1-1 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.
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Vacation Rentals
The City last updated their vacation rental regulations in 2014. These regulations can be found in
Section 16.52.230 and 240 of the Development Code. Vacation rentals and homestays are
permitted with an MUP in the RE, RH, RR, RS, SF, VR D-2.4, MF, and MFA zoning districts and are
prohibited in all other residential zoning districts. They are also permitted in the TMU D-2.11, VCD
HCO D-2.4, VMU D-2.11, HCO D-2.4, GMU, FOMU, HMU, and OMU 1 D-2.20 zoning districts and are
prohibited in all other commercial and mixed-use zoning districts. The property owner is required
to obtain an MUP-Plot Plan Review and a business license from the City. Vacation rental and
homestays must be at least 300 feet from any other vacation rental or homestay on the same
street. Additional performance standards and conditions are found in the Development Code
sections referenced above. The vacation rental and homestay regulations balance housing
needs of long-term residents with the mission of providing accommodations to visitors to the city.
Density Bonus Standards
The City’s density bonus program (Development Code Chapter 16.82) implements the state’s
Density Bonus Law. 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 project. Incentives granted by the City include, but are not limited to:
• Flexibility in development standards;
• Approval of mixed-use zoning in conjunction with the housing project;
• Leniency on parking ratios set forth in Government Code Section 65915; or
• Other regulatory incentives or concessions proposed by the City or developer.
The City updated their density bonus program in 2007 to be consistent with updates to state law
before that year; however, amendments are required to bring regulations into compliance with
the changes made to state law since 2007. Therefore, Program A.10-1 is proposed to bring the
City into complete compliance with current state density bonus law.
Emergency Shelters and Transitional Housing
State legislation SB 2 requires jurisdictions to permit emergency shelters without a 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. Ordinance No. 677 was adopted in April 2016 to amend the Development
Code to comply with state law regarding Emergency Shelters and Supportive and Transitional
Housing. Emergency shelters are allowed without discretionary review in the IMU and HMU zoning
districts. Operational standards for emergency shelters are located in Development Code Section
16.52.091. There are three vacant parcels in the HMU zoning district and the area of these parcels
is approximately 1.65 acres. There are currently no vacant parcels in the IMU zoning district. The
available sites in the overlay provide a sufficient number of options with a sufficient amount of
acreage for shelter beds that could address the needs of the number of homeless persons in the
City. The Emergency Shelter Overlay zoning district is located in areas of the City close to transit
and services.
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Accessory Dwelling Units
In the City’s Development Code, accessory dwelling units are described as 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. Accessory dwelling units can be an important source of
affordable housing because they are smaller than primary units and they do not have direct land
costs. Accessory dwelling units can also provide supplemental income to the homeowner, for
example allowing the elderly to remain in their homes. Accessory dwelling units are permitted in
the RE, RH, RR, RS, SF, VR, MF, MFA, MFVH, and MHP zoning districts. Regulations specific to
accessory dwelling units are found in Development Code Section 16.52.150. The City amended its
zoning in 2017 to comply with updates to state legislation. However, additional legislation was
passed in late 2019 that the City will need to address in an amended accessory dwelling unit
ordinance. Program A.2-1 will bring the City into complete compliance with current state law
regarding accessory dwelling units.
Development Processing and Development Impact Fees
Like most cities in California, Arroyo Grande charges planning, building, and impact fees for
residential developments. Table 5-8 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 according to the types of permits processed under 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 as they place new demands and
impacts on the City’s infrastructure and services. Thus development impact fees must be charged
to cover the development’s costs of the services or infrastructure requirements.
School impact fees that have been imposed by the local school district help cover their costs of
construction needed to support additional school population associated with new 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
accessory dwelling units. Water and sewer fees still apply.
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Table 5-8 Schedule of Typical Fees for Residential Development
Application Type Base Fees
Appeals
From Community Development Director to Planning Commission $ 491
From Planning Commission decision to City Council $ 1,163
Certificate of Compliance $ 3,512
Conditional Use Permit (CUP)
Major (Multi Building) $ 14,347
Minor – (Change of use or as otherwise determined by Director)) $ 6,212
Amendment $ 3,137
Development Agreement $ 24,024
Development Code Amendment
Major (Determined by Director) $ 16,187
Minor (Determined by Director) $ 8,901
EIR/Environmental Studies
Initial Study Fee $ 3,412
Negative Declaration (in addition to Initial Study Fee) $ 554
Mitigated Negative Declaration (in addition to Initial Study Fee) $ 2,318
General Plan Amendment
Major (Determined by Director) $ 16,187
Minor (Determined by Director) $ 8,901
Minor Use Permit
Architectural Review: Major (Determined by Director) $ 5,145
Architectural Review: Minor (Determined by Director) $ 923
Minor Exception $ 999
Plot Plan Review $ 735
Viewshed Review $1,130
Specific Plan
Deposit $ 23,978
Planned Unit Development
Major (Determined by Director) $ 15,261
Minor (Determined by Director) $ 7,301
Pre-Application Review $ 1,228
Planning Commission (per meeting) $ 1,810
Second Dwelling Unit (see CUP)
Tentative Parcel Map (>5 lots)
Base Fee (5–20 lots) $ 15,670
Base Fee (Over 20 lots) $ 18,190
Vesting $ 1,535
Amendment $ 6,879
Tentative Tract Map (<4 lots)
Base Fee $ 9.537
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Table 5-8 Schedule of Typical Fees for Residential Development
Application Type Base Fees
Vesting $ 591
Amendment $ 4,620
Source: City of Arroyo Grande. Community Development Department Application Fees, 2019.
Additionally, the City requires each newly constructed residential project to pay impact fees
related to the cost of providing public services.
Table 5-9 Schedule of Typical Development Impact Fees for Residential Development
Fee Single-Family Home Multifamily Home, Per Unit
Fire Protection $ 2,015 $ 181
Police Facilities $ 126 $ 222
Traffic Signalization $ 741 $ 519
Transportation Facilities $ 2,022 $ 1,415
Community Centers $ 149 $ 110
Park Improvements $ 2,573 $ 1,906
Water Facilities (1") $ 1,746 $ 1,746
School, per square foot $ 3.48 $ 3.48
Source: City of Arroyo Grande. Community Development Department, February 2020.
The total fees charged at Building Permit issuance for the average single family is approximately
$28,594 per unit, which includes building fees and impact fees. For multifamily projects, the
estimated building and impact fees are estimated at approximately $12,475 per unit. These fees
are one of the substantial costs of housing, but as noted above, these fees are either required
consistent with 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 5-10). 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.
Table 5-10 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 $28,594 $12,475
Estimated development cost per unit2 $501,133 $249,697
Estimated proportion of fee cost to overall development cost per unit 5.7% 5.0%
Notes
1 Source: City of Arroyo Grande Application Fees, 2019 and Development Impact Fees, 2020.
Source: City of Arroyo Grande, 2020; Zillow, 2020, based on a one-half acre land cost and the median per-acre cost of land.
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
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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 5-11. These time periods begin when a complete application
is submitted and are extended when additional information is requested by the City. Applications
for building permits are usually submitted within one year once a project is fully entitled. 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 staff.
Table 5-11 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 180 days
Lot Line Adjustment (discretionary) 30 days 90 days
Tentative Parcel Map (discretionary) 30 days 120 days
Tentative Tract Map (discretionary) 30 days 180 days
Development Code Amendment (discretionary) 30 days 180 days
General Plan Amendment (discretionary) 30 days 180 days
Specific Plan (discretionary) 30 days 1 year
Variance (discretionary) 30 days 90 days
Source: City of Arroyo Grande 2020.
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 CUP 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
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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 $82 per linear foot for curb, gutter, and sidewalk for a standard single-family housing
subdivision. The City’s Municipal Code also requires any project that includes the addition of more
than 500 square feet of habitable space to place their utility service connections underground.
Applications for all tract and parcel maps, conditional use permits, and variances shall include
undergrounding all utilities as a condition of approval. 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 5-12 lists applicable
parking space requirements for residential developments. 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. 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.
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Table 5-12 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.
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 5-13 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
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does follow California’s accessibility laws through the implementation of the California Building
Code.
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Table 5-13 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 K.2-1 is proposed to create a reasonable
accommodation procedure 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 zoning districts in the City. Group homes of seven or more are permitted with a CUP
in the VCD, VMU, GMU, FOMU, and OMU mixed-use zoning districts.
Does the City assist in meeting identified needs?
The City works with service providers in the region to address and, if possible, help fund work
that addresses those with identified needs. Program K.1-1 commits the City to continue working
on addressing the needs of those with disabilities, including developmental disabilities.
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 zoning
districts.
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 VCD,
VMU, HCO, GMU, FOMU, and OMU districts with an MUP. Facilities with more than seven
residents are allowed in the VCD, VMU, HCO, GMU, FOMU, and OMU districts with a CUP.
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 units.
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Table 5-13 Constraints on Housing for Persons with Disabilities
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 zoning
districts?
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 CUP 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 multifamily 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 seven residents are allowed in VCD, VMU, HCO, GMU, FOMU, and OMU districts with a
CUP. The CUP 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 California 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? No.
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 K.2-1 is proposed
to create a reasonable accommodation procedure for the City.
Source: City of Arroyo Grande 2020
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5.2 Environmental Constraints and Energy Conservation
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 RHNA adopted for the City, 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/circulation, and air
quality. Thus, findings and statements of over-riding consideration were adopted. These critical
issues are considered constraints on residential development and are discussed herein, along with
other constraints anticipated.
Water Availability
According to the 2015 Urban Water Management Plan, the City used 113 gallons per capita per
day in 2015. In calendar year 2019, the City used 2,138 acre-feet of water, which calculates to a
per-capita consumption of 108 gallons per person per day. If the per-capita consumption remains
at this level, the City’s buildout population of 20,000 would require an annual supply of 2,420 acre-
feet, which can be met with the current water supply. The City continues to offer free plumbing
retrofits, washing machine rebates, and commercial dishwashing machine rebates to customers.
City customers have reduced their per-capita consumption rate by 34 percent since 2013,
conserving 975 AFY. This effort, along with improved groundwater and surface water
management, coupled with the Central Coast Blue recycled water project, will provide Arroyo
Grande with a sustainable water supply for the foreseeable future. It is, therefore, 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 RHNA.
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 would
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 these planned improvements, additional development will cumulatively impact area
roadways and thus is another constraint to continued regional residential development, including
within the City.
Air Quality
Like traffic/circulation, air quality was determined in the General Plan Program EIR to be a
significant impact that cannot be mitigated to less than significant levels. This is a cumulative
impact attributed to additional growth, thus may be considered a significant constraint to
continued residential regional development, including within the City.
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Flooding
Arroyo Grande is 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 with the
cooperation of the San Luis Obispo County Resource Conservation District (RCD) is the creation
of a special zoning district. This RCD zoning district 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.
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. 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 (GHG) emissions. Energy-efficient community design can reduce dependence on
automobiles.
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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 GHG emissions.
In response to legislation on global climate change, local governments are required to implement
measures that cut GHG emissions attributable to land use decisions. Executive Order S-E-05
initiated the first steps in establishing GHG 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 San
Luis Obispo 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 that 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 that 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 the City supports programs for energy conservation in new and existing housing units:
• 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.
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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• 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 accessory dwelling units.
The following opportunities for energy conservation are also available to the City, homeowners,
and developers:
• 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
response programs, renewable energy, and self-generation 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 assists 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, 10-
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 megawatts (MW) by 2017 on homes and businesses, increased use of solar thermal
systems to 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.
• Arroyo Grande will join Central Coast Community Energy to implement community choice
electricity sourcing beginning January 1,2021. Arroyo Grande will join most of the other
cities in the county and much of the rest of the central coast of California to source their
electricity from this company rather than PG&E in order to receive electricity from more
renewable sources. Transmission of electricity will still be via PG&E transmission lines.
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Program L.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 affect 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 a May 2020 survey of vacant parcels listed on Zillow.com, it is estimated that the median
cost per acre of unimproved residential zoned land in the City is $370,000, ranging between $4,248
per acre and $997,417 per acre. Currently, some of these vacant lots are 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 including SB 35), and the difficulty of
building on the site. In Arroyo Grande, expansive soils may necessitate more extensive foundations
for housing units. According to an internet source of construction cost data (www.building-
cost.net) provided by the Craftsman Book Company, a wood-framed single-story four-cornered
home in Arroyo Grande is estimated to cost approximately $268,602 (approximately $134 per
square foot), excluding the cost of buying land. This cost estimate is based on a 2,000-square-foot
house of good quality construction, including a two-car garage and forced air heating.
Availability of Financing
The availability of financing affects the ability to purchase or improve homes. In the Arroyo Grande
area, 430 loan applications for home purchase or improvements were received in 2018, of which,
391 were conventional loans. Of the 391 conventional loan applications, 356 were for home
purchase and 35 were for home improvements. Only 7.7 percent of the 391 conventional loans
were denied, 6.6 percent were withdrawn or not accepted by the applicant, and 58.8 percent
were approved and accepted.
There were 39 applications for government-assisted home purchase or improvement loans (VA,
FHA, FSA/RHS) in 2018. Of these, 18, or 46.2 percent of government-assisted loans were approved
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and accepted by the applicant. Table 5-14 shows the breakdown of loan applications by type,
purpose, and outcome.
Table 5-14 Applications for Loans
Type of Loan Number Percent
Total 430 100.0%
Conventional 391 90.9%
Government-assisted 39 9.1%
FHA-insured 14 35.9%
VA-guaranteed 25 64.1%
Loan purpose
Conventional 391 100.0%
Home Purchase 356 91.0%
Home Improvement 35 9.0%
Government-assisted 39 100.0%
Home Purchase 38 97.4%
Home Improvement 1 2.6%
Loan Outcome
Conventional 391 100.0%
Approved and accepted 230 58.8%
Denied 30 7.7%
Withdrawn or not accepted 26 6.6%
Closed/Incomplete 10 2.6%
Purchased by Institution 60 15.3%
Government-assisted 39 100.0%
Approved and accepted 18 46.2%
Denied 5 12.8%
Withdrawn or not accepted 3 7.7%
Closed/Incomplete 1 2.6%
Purchased by Institution 10 25.6%
Source: Consumer Financial Protection Bureau 2018
Most (79.5 percent) applicants for government-assisted loans had an annual income equivalent
to or greater than the County median income of $71,148 in 2018. Similarly, over 92.6 percent of
conventional loan applicants earned greater than the County median income. Of all originated
loans, 4.4 percent were awarded and accepted by applicants with less than median household
income.
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CHAPTER 6 - REGIONAL VISION FOR HOUSING
In early 2020, local agencies adopted a San Luis Obispo Countywide Regional Compact to
establish a united regional framework to unlock our potential to develop an adequate supply of
housing and infrastructure that support our economic prosperity.
Overview
San Luis Obispo County is a rural coastal county with seven vibrant cities and numerous
unincorporated communities that depend on collaborative relationships between and among
government agencies, community organizations, and residents to solve the region’s significant
issues, including inadequate supply of affordable housing and resilient water, wastewater, and
transportation infrastructure and resources.
The County and all seven cities are working collaboratively to develop the region’s first Regional
Infrastructure and Housing Strategic Action Plan (Regional Plan) that will identify actions to address
these issues. A key component of the Regional Plan is the integration of efforts to address critical
housing and related infrastructure needs. As part of the Housing Element update process,
representatives of the County, seven cities, and San Luis Obispo Council of Governments
(SLOCOG) developed this section to showcase the ongoing commitment of each agency to this
collaborative effort. This section presents a regional vision and policies focused specifically on
fostering regional collaboration to plan and develop housing and supportive infrastructure.
Alignment with Regional Compact
This effort is guided by the San Luis Obispo Countywide Regional Compact (Regional Compact).
The Regional Compact, adopted by each jurisdiction in early 2020, outlines six shared regional
goals to guide collaborative resolution of underlying housing and infrastructure needs:
Goal 1. Strengthen Community Quality of Life – We believe that our Region’s quality of life
depends on four cornerstones to foster a stable and healthy economy for all: resilient
infrastructure and resources, adequate housing supply, business opportunities, and
educational pathways.
Goal 2. Share Regional Prosperity – We believe that our Region should share the impacts
and benefits of achieving enduring quality of life among all people, sectors and interests.
Goal 3. Create Balanced Communities – We believe that our Region should encourage
new development that helps to improve the balance of jobs and housing throughout the
Region, providing more opportunities to residents to live and work in the same community.
Goal 4. Value Agriculture & Natural Resources – We believe that our Region’s unique
agricultural resources, open space, and natural environments play a vital role in sustaining
healthy local communities and a healthy economy, and therefore should be purposefully
protected.
Goal 5. Support Equitable Opportunities – We believe that our Region should support
policies, actions, and incentives that increase housing development of all types, available
to people at all income levels.
Goal 6. Foster Accelerated Housing Production – We believe that our Region must achieve
efficient planning and production of housing and focus on strategies that produce the
greatest impact.
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Policies
It will take regional collaboration and local actions to realize the vision and goals outlined in the
Regional Compact. Below is an initial list of aspirational regional policies that further the Regional
Compact vision, in addition to local policies. By listing these below, it does not mandate any
individual agency to implement actions, but rather offers ways that the County, cities, SLOCOG,
and other partners can consider moving forward together. In addition, and consistent with each
Housing Element cycle, each of the seven cities and the County has the opportunity to choose to
implement local policies and programs that help to support their achievement of its Regional
Housing Needs Assessment (RHNA), and if an agency chooses to, can also support the Regional
Compact vision and goals in a way that works for its jurisdiction and community. Please see
Chapter 2 above for a discussion of the local goals, policies, and programs that Arroyo Grande
anticipates undertaking during this Housing Element cycle.
R-1: Promote awareness and support of regional efforts that further housing and infrastructure
resiliency by using community engagement and consistent and transparent communication.
R-2: Encourage an adequate housing supply and resilient infrastructure, services, and resources
to improve the balance of jobs and housing throughout the region.
R-3: Develop inter-agency partnerships as appropriate to implement goals and policies related to
housing and infrastructure.
R-4: Coordinate state, federal, and other funding opportunities for housing and infrastructure
development throughout the region.
R-5: Encourage developers to sell newly constructed housing units to individuals residing or
employed within the area of the development (a city or the County) first before selling to
individuals from outside the County, to promote local preference.
R-6: Encourage rental units be prioritized for long-term residents rather than short-term users or
vacation rentals.
R-7: Support housing development that is located within existing communities and strategically
planned areas.
R-8: Encourage regional collaboration on a menu of housing types, models, and efforts to support
streamlined approvals for such developments (e.g., Accessory Dwelling Units, etc.).
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Moving Forward
The County, cities, SLOCOG, and other partners engaged in housing and infrastructure
development will continue to collaborate on efforts moving forward – recognizing the benefits of
working together to achieve an enduring quality of life among the region’s people, sectors, and
interests. This ongoing collaboration will include learning from each other and sharing possible
tools, policies, and actions that can allow the collective region to move towards our adopted
Regional Compact vision. Ongoing collaborative efforts will be described in the Regional Plan,
anticipated to be complete in 2021, and related regional efforts will live outside of each individual
agency’s Housing Element.
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Chapter 7 – REVIEW OF THE PREVIOUS HOUSING ELEMENT
This chapter evaluates and reports on the status and implementation of the programs of the 2014–
2019 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 includes the programs identified in the 2014–2019 Housing Element followed by a brief
evaluation or status comment.
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Table 6-1 Review of 2014-2019 Housing Element Programs
Program
Number 2014–2019 Housing Element Programs Status of Program Continue? Amend? Delete in
2020–2028 Housing Element?
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
Timeframe: Ongoing – implemented over the life of the Housing
Element
Funding: General Fund
Expected Outcome: Timeline for implementing Housing Element
programs
Quantified Objective: n/a
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 due to staff constraints. The
City will continue to implement programs
based on the timeframe under each
program. This program is not needed on
top of the information in each program.
Delete.
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
The City reports annually on progress
towards Housing Element implementation
and reaching the Regional Housing Needs
Assessment (RHNA) target.
Delete.
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Table 6-1 Review of 2014-2019 Housing Element Programs
Program
Number 2014–2019 Housing Element Programs Status of Program Continue? Amend? Delete in
2020–2028 Housing Element?
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.
Responsible agency/department: Community Development
Timeframe: Within 1 year of Housing Element adoption
Funding: General Fund
Expected Outcome: Development Code amendment
Quantified Objective: 10 moderate-income units, 10 above
moderate-income units
The City has not amended the
Development Code regarding the
limitations on uses. The densities for the
Traffic Way Mixed-Use District have also not
been amended. This is due to staff
constraints. This program will be continued.
Continue.
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.
The Development Code was updated in
October 2017 regarding accessory
dwelling units for compliance with state law
(Ordinance No. 688). The City has
continued to monitor impacts to accessory
dwelling units from short-term rentals.
Currently, the City provides information
about accessory dwelling units on the City’s
website, including development standards,
procedures, and fees. This program will be
continued and will include further
amendments to the ordinance to address
recent updates to state law.
Amend to address updates in
state law and add additional
City efforts to promote ADUs
and continue.
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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.
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
The Municipal Code has not yet been
amended to include these incentives for
affordable housing projects. However,
impact fees have been reduced for
affordable housing projects. In addition,
the City has received funding through
Senate Bill 2 to revise zoning to streamline
review of affordable housing projects. This
program has not successfully been
implemented due to staff constraints and
will be continued.
Continue.
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.
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
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. The City relies
on the County’s affordable housing
standards, which define extremely low-
income households. This does not need
inclusion in the City’s Development Code.
This program will not be continued.
Delete.
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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.
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
The City has not yet amended the
Development Code regarding additional
incentives for extremely low-income
housing projects. The City continues to
monitor evolving state legislation
associated with housing to ensure this has
not been addressed or preempted. This
program will be continued.
Continue.
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
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
The City has not completed the
Development Code amendment to
comply with recent changes to State
Density Bonus Law due to staff constraints.
The City continues to comply with state law
and offers density bonuses to eligible
projects under state law. This program will
be continued.
Amend to reflect recent
updates to state law and
continue.
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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 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.
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
The Development Code has not been
amended regarding the PUD permit
procedures due to staff constraints. This
program will be addressed as needed
through other programs and will not be
continued.
Delete.
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
Funding: General Fund
Expected Outcome: Remove barrier to construct affordable
housing
Quantified Objective: n/a
The City has not completed the
Development Code amendment to allow
for increased density in the OMU District
due to staff constraints. This program will be
continued.
Continue.
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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
The City maintains a geographic
information system (GIS) database
inventory of vacant and underutilized
“opportunity sites.” This program has been
successfully implemented and will be
continued.
Continue.
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
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 amendment to the
Development Code is not needed to
further affordable housing objectives. This
program will not be continued.
Delete.
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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)
Expected Outcome: Development of a first-time home buyers
program
Quantified Objective: n/a
In the years following the 2008 recession, a
number of the units originally restricted to
families earning a moderate income were
sold at market rate because the formula
used to determine sales price was such that
market rate prices were lower than
income-restricted prices. By default, the
program acted like a first-time home
buyer’s program. However, a formal first-
time home buyer program has not been
established. This program will be continued.
Continue.
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
The City tracks all affordable projects
through a database, inputting any updates
regarding ownership or affordability when
they occur. This program will be continued.
Combine with Programs E.4-1,
I.1-1, and I-2.1, update for
consistency with state law,
and continue.
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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
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
County Housing Trust Fund (SLOCHTF),
which provides ongoing technical
assistance. This program will be continued.
Continue.
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
The Development Code prohibits
homestays and vacation rentals from being
located within 300 feet of an existing
homestay or vacation rental on the same
street. To date, the City has approved 33
homestays and 47 vacation rental
applications. The City has an increased
interest in monitoring rental loss due to state
housing legislation. The City will continue to
monitor the number of permits issued for
homestays and vacation rentals to
determine impacts to housing.
Amend to remove term
workforce and continue.
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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
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
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.
For instance, the Affordable Housing Trust
Fund was used to offset impact fees for a
Habitat for Humanity project approved in
2018. That project will construct eight single-
family residences that will be deed
restricted for very low-income households
and is expected to begin construction in
2020. This program will be continued.
Continue.
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
The City continues to promote the
development of affordable housing
opportunities for people of extremely low,
very low, and low income, including
through its relationships with HASLO and
SLOCHTF. This program will be continued.
Continue.
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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.
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
The City continues to receive local housing
funding through the SLOCHTF. This program
will be continued.
Continue.
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
No specific plans with multiple-family
development have been developed since
adoption of the previous housing element.
Multiple-family developments will continue
to be encouraged through specific plans.
This program will continue to be
implemented.
Continue.
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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
The City will continue to support the
affordable housing agreement of
properties, working with property owners,
as needed, who need to sell deed-
restricted affordable units.
This program will be continued.
Combine with Programs B.1-1,
I.1-1, and I-2.1, update for
consistency with state law
and continue.
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.
Responsible agency/department: Community Development
Timeframe: Within 4 years of Housing Element adoption
The City has not amended the
Development Code regarding the
inclusionary affordable housing
requirements. This program will be
continued.
Combine with Program F-1.3
and continue.
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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
Expected Outcome: Amendments to the inclusionary affordable
housing requirements
Quantified Objective: n/a
The City has not amended the
Development Code eliminating the
inclusion of moderate-income units in the
inclusionary affordable housing
requirements. The City does this in practice
through the subdivision process. Fees are
collected in-lieu of providing deed-
restricted moderate-income units. This
program is no longer needed and will not
be continued.
Delete.
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
The City has not amended the
Development Code due to staff constraints
but has developed a preliminary
methodology to amending this in-lieu fee.
This program will be continued.
Combine with Program F.1-1
and continue.
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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.
Responsible agency/department: Community Development
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Increased public awareness of affordable
housing projects.
Quantified Objective: n/a
The City publishes all meeting materials on
its website and encourages everyone to
sign up for notification when new agendas
are published. The City utilizes its contacts
at HASLO and SLOCHTF to help inform
interested individuals. This program will be
continued.
Continue.
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
The City has updated its accessory dwelling
unit ordinance and will adopt new
amendments consistent with changes in
state law. The City has not developed
incentive-based programs due to staff
constraints. This program will be continued.
This program overlaps with several other
programs and is not needed in the
updated housing element. This program will
not be continued.
Delete.
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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
The City has not amended the
Development Code. This program will be
continued.
Amend and continue.
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
The City coordinates with HASLO regarding
Section 8 housing assistance when
needed.
This program will continue to be
implemented.
Continue.
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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
Quantified Objective: 5 low-income housing units
Opportunities are evaluated on a case-by-
case basis. This program will be continued.
Continue.
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
This is evaluated on a case-by-case basis.
This program will be continued.
Continue.
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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
Responsible agency/department: Community Development
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Preservation of existing affordable units
Quantified Objective: n/a
The City maintains a database of restricted
units that is leveraged to determine when
these situations arise. This program will be
continued.
Combine this program with
Programs B.1-1, E-4.1, and
I-2.1, amend to comply with
state law and continue.
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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
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.
Combine this program with
Programs B.1-1, I.1-1, and
E-4.1, amend to comply with
state law and continue.
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.
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
Within the planning period, a senior living
project consisting of 69 beds was approved
and staff processed a pre-application for
another senior living complex consisting of
120 beds. Staff provided feedback on
constraints of the site. No further
implementation has occurred. The
program will be continued.
Continue.
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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
The City has not amended the
Development Code due to staff
constraints. This program will be continued.
Continue.
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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
The City continues to work with the County
and other relevant agencies in providing
homeless shelters and related services. The
City provides grant funding to the 5 Cities
Homeless Coalition through its allocation of
Community Development Block Grant
federal funds and through the City’s Jim
Guthrie Community Service Grant Program
for homeless services. This program will be
continued.
Continue.
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
Ordinance No. 677 was adopted in April
2016 to amend the Development Code
regarding Emergency Shelters and
Supportive and Transitional Housing. This
program has been implemented.
Delete.
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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 to ensure
that development standards and permit processing will not impede
the approval and/or development of emergency and transitional
housing.
Responsible agency/department: Community Development
Timeframe: Concurrently with Housing Element adoption (per
Government Code Section 65583(a)(4))
Funding: General Fund
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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: 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
Ordinance No. 677 was adopted in April
2016 to amend the Development Code
regarding Emergency Shelters and
Supportive and Transitional Housing. This
program has been implemented.
Delete.
K.2-3. The City may consider implementing an overnight parking program,
or a similar program, 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
An overnight parking program has not yet
been established. This program will be
continued.
Amend and continue.
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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 5 years of Housing
Element adoption
Funding: General Fund
Expected Outcome: Increased access to housing and housing
resources for disabled persons; including information and
services available for developmentally disabled persons
Quantified Objective: 5 low income units
The City has not coordinated with the Tri-
Counties Regional Center. However, the
City will continue to explore models to
encourage development of housing for
persons with disabilities. This program will
continue to be implemented.
Continue.
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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 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
The City has not amended the
Development Code to provide an
opportunity to request reasonable
accommodation for persons with
disabilities due to staff constraints. This
program will be continued.
Continue.
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
Expected Outcome: Greater accessibility for disabled persons
accommodated through project design
Quantified Objective: n/a
The City has not yet made progress
promoting the universal design concept
but discusses the topic with residential
developers when the opportunity presents
itself. Due to limitations on staff resources,
this program will not be continued.
Delete.
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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
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 program provides tools and best
practices for implementing all Climate
Action Plan (CAP) programs, such as the
energy audit and retrofit program. This
program will be updated to reflect current
program information and continued.
Amend and continue.
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
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.
Continue.
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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.
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
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.
Continue.
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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.
Responsible agency/department: Community Development
Timeframe: Ongoing
Funding: General Fund
Expected Outcome: Provide information about housing
programs
Quantified Objectives: n/a
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.
Continue.
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.
Responsible agency/department: Community Development
Timeframe: Within 1 year of updates of the General Plan
Conservation and Safety Elements
Funding: General Fund
Expected Outcome: Consistency between General Plan
elements related to floodplain mapping and associated
constraints.
Quantified Objectives: n/a
The City has not yet amended the General
Plan Conservation and Safety Elements to
comply with Assembly Bill 162 due to staff
constraints. Following any amendments,
the Housing Element will be modified, as
necessary. This program will be
implemented when those elements are
updated but will not be continued as a
Housing Element program.
Delete.
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Item 9.a - Page 142
Item 9.a - Page 143
P.O. Box 1316
San Luis Obispo, California 93406
t 805.457.5557
www.placeworks.com
Item 9.a - Page 144
From:Sam Oakley
To:pc publiccomment
Subject:Housing Project at 700 Oak Park
Date:Tuesday, September 29, 2020 9:17:17 AM
Good morning Commission,
I am writing regarding the large low-income development planned (56 units minimum, up to
66 total) for the vacant lot on the corner of Oak Park and El Camino Real (700 Oak Park). I am
in support of this project and I think that HASLO has performed grreat projects in the past; however, there needs to
be a reduction in scale to the appropriate housing density for this site in addition to other considerations.
This single project provides 50% of the low-income housing units the City plans on providing through 2028. NYU
Furman Center is a research center that is based on housing, neighborhoods, and urban policy. Their definition of a
large-scale development contains 50+ units and they argue that while a large-scale development can be less
expensive to build, smaller and dispersed developments better fit into the character of their neighborhoods, facing
less opposition, and that even in single family neighborhoods, tenants of small-scale developments can integrate
well into the existing housing whereas tenants of large developments do not. The term "large-scale" must be
considered in context, and, in Arroyo Grande, large-scale could be argued to be 20+ units based on existing projects.
https://link.edgepilot.com/s/636e544b/drd44nOuPkGTFHOUC2_JYg?
u=https://www.localhousingsolutions.org/refine/the-pros-and-cons-of-large-scale-small-scale-
and-scattered-site-development-overview/the-pros-and-cons-of-large-scale-small-scale-and-
scattered-site-development/
In terms of density, the proposed project at 700 Oak Park is the only project in table 4-6 of the Housing Element of
the General Plan that has a "Realistic Dwelling Unit" number higher than the maximum. All of the other projects
city-wide have a realistic dwelling unit of 80% of maximum. Following the approach used at every other site, the
realistic number of dwelling units at 700 Oak Park should be 34 (80% of 42.9).
There are additional concerns facing the location of this project that I think by addressing
them will increase the success of the project and improve the neighborhood:
- the project has the potent to increased traffic flow in and around the neighborhood on a
single lane street (Chilton)
- increased traffic density in and around arterial corridor (Oak Park)
- Oak Park-El Camino/Chilton/Sierra intersections have dangerous transitions that need to be
addressed.
- parking is already a concern in the neighborhood due to the condition and size of the streets
and degraded curbs; additional cars would negatively impact the existing lack of street parking
- 56 units would require the height of the building to block existing views on existing
properties. Housing height should be limited to the character of the neighborhood at 2 stories
max.
- 56 units would possibly require the demolition of protected oaks that define the character and
aesthetic of the neighborhood. Protection of the oaks on-site should be of high priority and
will help to scale and screen the new development with and from existing properties.
I respectfully ask you to please consider these items for reducing the scale of the proposed
development at 700 Oak Park. Please let me know if there is anything I can do to help. Thank
you for your consideration.
Respectfully,
ATTACHMENT 2
Item 9.a - Page 145
Sam Oakley
--
~Sam
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Item 9.a - Page 146
Mr. Perez,
I appreciate this opportunity to provide comments on the public draft Housing Element update:
Spatial Distribution of Affordable Housing – the proposed Housing Element Land Inventory does not
include a single High Density Site or housing for Extremely low, Very low, or Low Income categories
east/north of Highway 101. All such sites identified in the Housing Element Land Inventory are
south/west of Highway 101 (see Figure 1 below). The City should include housing opportunities for all
income categories east/north of Highway 101 rather than concentrating them in only half of the City.
Figure 1 – Distribution of High Density/Low Income Housing Inventory
The City missed an opportunity to identify and encourage high density or low income housing east of
Highway 101 by failing to implement Program Number A.1‐3 of the 2014‐2019 Housing Element, which
required the City to “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….The Development Code
shall also be amended to allow residential projects at densities of up to 20 units per acre in the Traffic
Way Mixed Use District” (see Table 6‐1 Review of 2014‐2019 Housing Element Programs, page 103).
The City should revise Section 4.3 Land Availability and Table 4‐6 with the assumption that the housing
density in the Traffic Way Mixed Use District is 20 units per acre, and evaluate opportunities for
Extremely Low, Very Low, and Low Income housing in this zoning.
The City should also conduct the same analysis for other mixed use zoning east of Highway 101 including
Village Mixed Use and Village Core Downtown to identify more opportunities for affordable housing
throughout the City.
Item 9.a - Page 147
Table 4‐6 Land Inventory (page 58) – according to the table and narrative, HASLO is in the process of
purchasing and intends to build up to 66 units on parcels 077‐011‐010 through ‐13. The 66 units at this
location would constitute approximately 50% of the low income housing (66 units/113 high density
totals) and nearly 1/3 (66 units/180 total units) of all housing anticipated in the entire City through the
next 8 years!
The City should not rely on a single project to provide such a high percentage of the anticipated future
community housing resources as it disproportionately impacts adjacent residents and businesses.
Chapter 2 Policy A.5. (page 3) – the City should encourage residential uses for all income categories in
the mixed‐use and village core zoning districts to promote uniform spatial distribution of low income
housing throughout the City.
Chapter 2 Policy A.1‐1 (page 4) – changing the zoning of parcel 077‐011‐010 (700 Oak Park) to
residential use by‐right is not necessary since current zoning allows it to be developed for residential
use. In other words, lack of by‐right zoning isn’t necessarily what’s keeping this site from being
developed. Changing the use to residential use by‐right will make it harder for the City to comply with
Policy G.2 which requires the City to “ensure zoning compatibility when integrating public affordable
housing projects into existing neighborhoods. All impacts relating to neighborhood stability and quality
of life issues shall also be considered…”
Section 3.2 Demographic Overview – reported trends in population age indicate significant increases in
retirement age residents. The City should do more to encourage and retain younger residents and
families in age groups that appear to be leaving the City including ages 25‐34 (‐22%), 45‐54 (‐13%) and
presumably their children under the age of 15 (‐11%) including a first‐time home buyer’s program which
the City acknowledges it has not implemented even though it was included as Program Number A.15‐ of
the 2014‐2019 Housing Element (see Table 6‐1 Review of 2014‐2019 Housing Element Programs, page
108).
Regards,
Ben Oakley
Item 9.a - Page 148
ATTACHMENT 3
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3256
692
6923354
843 369
391
1446
Item 9.a - Page 154
Income Category Income Level
(Percentage of Median
Family Income)
Number of Units
Very Low Income 30% or less 170
Low Income 31% to 50%107
Moderate Income 51% to 80%124
Above Moderate Income 81% to 120%291
Total More than 120%692
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Task 2020 Date
Prepare Administrative Draft Housing Element July 2020
City Review of Administrative Draft August 2020
Prepare Public Draft Housing Element September 2020
Draft Environmental Review Document Sept.-Oct. 2020
Workshop with Planning Commission October 6, 2020
Submit Draft to HCD (60-Day Review)Oct.-Dec. 2020
“Conditional Compliance” from HCD December 2020
Final Housing Element/Final Environmental Document December 2020
Planning Commission and City Council Adoption Hearings December 2020
Submit Adopted Housing Element to HCD (90-Day Review)Dec. 2020-March 2021Item 9.a - Page 163
Item 9.a - Page 164