CITY OF GROVER BEACH
HOUSING AND
DEVELOPMENT UPDATE
GROVERBEACH.ORG
Special Meeting Joint City Council and Planning Commission March 31, 2026
Agenda
GROVERBEACH.ORG
• State Housing Laws
• Local Regulatory Framework and Development Activity
• Key Policy Issues for Council and Commission Discussion • Mixed-Use Development Commercial Usage
• Objective Design Standards
• Building Heights
• Affordable Housing
• Protecting Coastal Viewsheds
State Housing Law Summary
GROVERBEACH.ORG
Housing Crisis Act (Senate Bill (SB) 330)
GROVERBEACH.ORG
• SB 330 prevents local agencies from reducing housing capacity. • Local agencies cannot adopt new development standards that would reduce residential capacity below what was allowed January 1, 2018.
• Limits ability of cities to downzone or adopt standards that reduce allowable housing density.
Housing Accountability Act
GROVERBEACH.ORG
“It is the policy of the State that this section should be interpreted and implemented in a manner to afford the fullest possible weight to the interest of and the approval and provision for housing.”
• Ensures housing projects that comply with objective standards can proceed.
• Local agencies cannot deny or reduce the density of housing development projects unless specific findings are made. • Limits local discretion to deny or modify housing projects that comply with objective development standards.
Housing Element Law
GROVERBEACH.ORG
• Requires local agencies to plan for housing needs across all income levels.
• Local agencies must adopt a Housing Element identifying adequate sites and programs to accommodate RHNA.
• Local agencies must maintain sufficient zoning capacity to accommodate housing units across income categories during the 8-year housing cycle.
State Density Bonus Law
GROVERBEACH.ORG
• Encourages affordable housing production through incentives. • Developers may receive additional density, incentives, and waivers from standards when a project includes affordable housing units.
• Local agencies must grant density bonuses and may be
required to waive development standards that would otherwise prevent the project from achieving the permitted density.
Questions & Comments
GROVERBEACH.ORG
• Housing Crisis Act (HCA; SB 330)
• Housing Accountability Act
• Housing Element Law
• State Density Bonus Law
Housing and Development Activity to Date
GROVERBEACH.ORG
2017 Economic
Development Strategy
2020-2028 6th Cycle
Housing Element
2011 West Grand Avenue
Master Plan
2022 Development
Code Update
6th Cycle Housing Element Implementation
GROVERBEACH.ORG
• Streamline Permit Processing
• Align with State housing law
• Remove barriers and facilitate housing production
• Housing policies and zoning updates
• By-right residential development
• Increase in building height along WGA
• Reduce parking standards for mixed-use projects along WGA • Objective Design Standards
• State Density Bonus Law
• Fractional Density Ordinance
• Pre-designed Accessory Dwelling Units (ADUs)
• Urban Lot Splits (SB-9)
Results by the Numbers
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New Residential Units Permitted Development Applications Submitted GROVERBEACH.ORG
Questions & Comments
GROVERBEACH.ORG
• Grover Beach Planning Documents
• 2004 Visioning Project
• 2011 West Grand Avenue Master Plan
• 2017 Economic Development Strategy
• 2020-2028 6th Cycle Housing Element
• 2022 Development Code Update
• 6th Cycle Housing Element Implementation
• Results by the Numbers
GROVERBEACH.ORG
Emerging Policy Topics
Mixed-Use
Commercial
Ratio
Objective Design
Standards
Building
Heights
Affordable
Housing
Coastal
Viewsheds
Mixed-Use Development
GROVERBEACH.ORG
• Mixed Use Project: A project that combines both residential and commercial uses on the same site (Chapter 9 – Definitions) • Broadly defined to maximize flexibility in site design • No discussion during 2022 Update on commercial requirement • Planning policies instead focus commercial on ground floor, 15’ ceiling height, residential in rear and above
• Key issue: Are projects providing enough commercial space? • Planning Commission recommends Council prioritize this issue. • Proposed ballot initiative would require 33% min. commercial use.
Commercial vs. Residential Balance
Mixed-Use Commercial Ratio
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• Legal & Policy Constraints
• State law – Housing Crisis Act (SB 330), Housing Accountability Act, Density Bonus Law • Standards may not apply to density bonus projects
• Ratios that limit housing feasibility carry legal risk. • If standards reduce housing capacity, “No Net Loss” (Gov. Code Section 65863) • Potential Council Considerations
• Direct staff to evaluate impacts of the initiative on achieving density, project feasibility (pro-forma), site design and unit configuration. • Consider tying commercial to frontage or lot size, avoid strict ratios to avoid hindering housing.
• Take no action; staff will continue to process applications consistent with the Development Code requirements.
Commercial vs. Residential Balance
Objective Design Standards
GROVERBEACH.ORG
• ODS adopted in 2022 to implement Housing Element goals • Objective, flexible, menu-based design options
• Single and urban dwelling units, multi-unit attached, multi-unit detached, mixed- use project checklists • ODS is reviewed for compliance by staff at the time of application and during Pre-Application PC review.
• Key Issue: Limited architectural variety, dominated by modern/contemporary designs
• Planning Commission recommends the Council prioritize this issue. • Incentivize range of architectural styles and expressions Flexibility and Community Character
Objective Design Standards
GROVERBEACH.ORG
• Legal & Policy Constraints
• ODS must remain objective, measurable, consistently applied. • ODS cannot be subjective, reduce allowable density (HAA, HCA). • Density Bonus projects may request waivers from design standards. • Potential Council Considerations
• Direct staff to evaluate options as part of the 7th Cycle Housing Element. • Take no action; staff will continue to encourage variety of architectural styles and design elements with each new development application as well as pre- application meetings in front of the Commission for feedback on design.
Flexibility and Community Character
Building Heights
GROVERBEACH.ORG
• Maximum allowed height by zone:
• CB, CBO, VS, CVS – 55 feet
• Industrial (CIC, CI, I) – 40 feet
• Height directly influences achievable density.
• Key Issues: Are these maximum allowable heights too much for Grover Beach?
• Ballot initiative – Reduce heights to 40’ (Commercial), 33’ (Industrial); add 3 story cap, new height measurement would include architectural appurtenances.
Capacity & Policy Implication
Building Heights
GROVERBEACH.ORG
• Legal & Policy Constraints
• Reduction in height may impact realistic housing capacity. • Housing Element and RHNA implications
• No Net Loss (Gov. Code Section 65863)
• HAA/HCA limit reducing development potential
• SB 330 locks standards at application submittal
• DBL projects may request height waivers to achieve allowed density • Potential Council Considerations:
• Direct staff to evaluate impacts of the initiative on maximum density (including interaction with floor area ratio, setbacks, parking, lot coverage), legal constraints (i.e., continued Housing Element compliance, HCA, HAA, and No Net Loss, ). • Take no action.
Capacity & Policy Implication
Affordable Housing
GROVERBEACH.ORG
• City has achieved 98% of its RHNA; 78 units by December 2028 • Cleaver & Clark Commons – 53 deed-restricted units
• City provides incentives for affordable housing projects including deferred impact fees, density bonus program, development incentives for open space, lot coverage, parking, and others.
• Key Issues: Majority of development is market-rate; Should the City limit or stop market-rate housing, City should require more affordable units. • Market-rate housing is still a critical part of overall housing supply; market-rate relieves market pressure.
• City does not have an inclusionary housing ordinance to require affordable units in private projects (rely on DBL); can place a financial burden on developers of market-rate housing. • Inclusionary Housing Ordinance cannot produce all the affordable units that may be in demand or that may be required by the State RHNA targets.
Local Authority & Strategy
Affordable Housing
GROVERBEACH.ORG
• Legal & Policy Constraints
• Property owners may develop their property consistent with State law and Development Code. • Cities cannot mandate affordability, except with Inclusionary Housing Ordinance. • Inclusionary programs carry legal risk (City of SLO)
• Existing tools:
• Fractional Density Program – Encourages additional units and smaller housing types • Density Bonus Program – Incentivizes deed-restricted affordable units • Development Impact Fee (DIF) Program – Defer DIFs for qualifying affordable housing projects • Potential Council Considerations:
• Direct staff to evaluate feasibility of inclusionary housing ordinance or other incentive-based programs.
• Take no action; staff will continue to implement the Development Code and existing programs, recommending construction of affordable units where appropriate.
Local Authority & Strategy
Coastal Viewsheds
GROVERBEACH.ORG
• Current Local Coastal Program (LCP) Framework:
• No designated scenic corridors, public viewing areas, mapped viewsheds. • LCP does identify 9 Visual Resource Areas; subjective policies for visual compatibility.
• Coastal Zone largely characterized by transportation
infrastructure, industrial development, commercial, residential, and visitor-serving uses.
• In most resource areas, the City’s LCP reflects the built environment vs. preservation of specific view corridors.
Policy Interest & LCP Framework
Coastal Viewsheds
GROVERBEACH.ORG
• Key Issues: New development impacts coastal viewsheds; community desire to designate scenic corridors/viewsheds. • Multi-step process to amend the LCP:
• Visual resource study
• Identify and map corridors and viewsheds
• Extensive Public engagement
• Develop measurable visual impact criteria
• Establish objective view protection standards
• LCP Amendment
• Planning Commission and City Council hearings
• Coastal Commission Certification
Policy Interest & LCP Framework
Coastal Viewsheds
GROVERBEACH.ORG
• Considerations:
• Significant staff and consultant resources
• Estimated ~$200,000; includes visual simulations, policy development, environmental review.
• Standards must be objective and defensible, evidence-based impacts • Final authority – Coastal Commission approval.
• Potential Council Considerations:
• Direct staff to pursue LCP amendments for coastal views. • Take no action; staff will continue to evaluate visual impacts of new development consistent with the existing policies outlined in the Development Code and certified LCP.
Policy Interest & LCP Framework
Questions & Comments
GROVERBEACH.ORG
Mixed-Use
Commercial
Ratio
Objective Design
Standards
Building
Heights
Affordable
Housing
Coastal
Viewsheds