Cities Index.
June-8-Presentation_MAM

Grover Beach City Council
June 8, 2026

Document
June-8-Presentation_MAM
Meeting
June 8, 2026
Body
Grover Beach City Council
Original file
1.3 MB
Text extracted from the city's file for reading and search. Open the original on www.groverbeach.org. That file is the official record.

Citizens Ballot Initiative
Impact Report
GROVERBEACH.ORG
Jennifer Thompson, City Attorney
Megan Martin, Community Development Director
June 8, 2026
Agenda
GROVERBEACH.ORG
• Citizens Ballot Initiative
• State Housing Laws
• City Attorney Partial Analysis
• Housing Crisis Act (2019)
• Housing Element Law
• Development Impact Analysis
• Next Steps
• Limit Building Heights in
Certain Zoning Districts
• Commercial: three stories or 40’
in height
• Industrial: 33’ in height
• Mixed Use Development:
33% Commercial
Requirement
Citizens Ballot Initiative
GROVERBEACH.ORG
Citizens Ballot Initiative
GROVERBEACH.ORG
• February 10th – Intent to Circulate Petition for local ballot measure • Limit building height in certain commercial and industrial zones • Establish a minimum 33% commercial component for mixed-use projects • February 24th – City prepared Ballot Title and Summary • April 20th – 1,249 signatures submitted to the City Clerk • June 8th – City Council may:
• Adopt the Ballot Initiative by Ordinance
• Adopt a Resolution placing the Ballot Initiative on the November 2026 ballot State Housing Law
GROVERBEACH.ORG
Housing Crisis Act (Senate Bill 330)
GROVERBEACH.ORG
• Ballot initiative may violate the HCA.
• Government Code Section 66300 - “an affected city shall not enact a development policy, standard, or condition that would … [c]hang[e] the general plan land use designation, specific plan land use designation, or zoning of a parcel or parcels of property to a less intensive use or reduce[e] the intensity of land use within an existing general plan land use designation, specific plan land use designation, or zoning district in effect at the time of the proposed change … .” “’[R]educing the intensity of land use’ includes, but is not limited to, reductions in height, … or any other action that would individually or cumulatively reduce the site’s residential development capacity. (emphasis added)”
• 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.
• Concurrent Upzoning
• Applicant: 180 days
• City: Immediately
• HCD Communication
No Net Loss
GROVERBEACH.ORG
Housing Element Law
GROVERBEACH.ORG
• Ballot Initiative may violate Housing Element Law.
• City’s must identify enough realistic housing capacity and avoid development standards that function as constraints.
• Reducing height and requiring a specific commercial to residential ratio in mixed-use projects can effectively reduce the residential share, or add constraints that discourage housing production. • Local agencies must maintain sufficient zoning capacity to accommodate housing units across income categories during the 8- year housing cycle.

HCD Enforcement
GROVERBEACH.ORG
• If HCD finds the City in nonconformance, the following may apply:
• $10,000 per month fines
• Attorney General Enforcement
• Builder’s Remedy
• Ineligible for Community Development Block Grant
Projects Exempt from Initiative
GROVERBEACH.ORG
• State Density Bonus Law (DBL) projects
• SB 330 applications
• Vesting Subdivision Maps
• Entitlements deemed complete prior to effective date
• Building Permits submitted prior to the effective date Other Legal Considerations
GROVERBEACH.ORG
• November 2025 Request for Attorney General Opinion
• Does a referendum that decreases the intensity of land use constitute an illegal moratorium or a violation of the Housing Crisis Act? • Assembly Bill 2676
• Amends HCA (2019) to expand prohibitions on local actions that constrain housing development, specifically limiting use of voter initiatives or referenda that would impose moratoria or similar housing restrictions. • Passed in the Assembly (May 28, 2026)
• Ordered to Senate (June 1, 2026)
Development Impact Analysis
GROVERBEACH.ORG
• Prototype Analysis
• Central Business (CB) Zone
• Mixed-use Project
• 10,000 square-foot corner parcel (gross lot area)
• Site Constraint Assumptions:

Development Standards
Lot Size Landscaping Requirement
Floor Area Ratio Parking Requirement
Maximum Height Minimum Residential Area (square-footage) Commercial Ratio Number of Units (minimum required)
Residential Density Commercial Area (in square-footage) Development Impact Analysis
GROVERBEACH.ORG
Existing Standards Prototype 1 – Ballot Measure – Average Unit Size Development Impact Analysis
GROVERBEACH.ORG
Existing Standards Prototype 2 – Ballot Measure – Fractional Density Unit Development Impact Analysis
GROVERBEACH.ORG
• General Plan Land Use Element
• CB/CBO Land Use Category: 62 acres
• Maximum allowed density: 20 du/ac
• Total theoretical density: 1,240 units
• Ballot Measure Effect
• 9, residential units to 5, residential units: 44% reduction • 1,240 units x 44% = theoretical loss of 544 units
• 544 units  136 acres of R1 to R2  approximately 1,000 parcels GROVERBEACH.ORG
GROVERBEACH.ORG
7th Cycle Housing Element Update
GROVERBEACH.ORG
• HCD released Regional Housing units to SLOCOG
• Approximately 14,000 units (across all of SLO County) • Likely doubles Grover Beach RHNA from 6th Cycle – 738 units • Subject to regional formula agreed to by all jurisdictions; 6th cycle formula included population and employment factors.
• SLOCOG Board issued “objection” letter to HCD
• SLOCOG recommends approximately 7,000 units (across all of SLO County)
• HCD has 60 days to respond
• HCD retains authority to establish region’s housing needs HCD Correspondence
GROVERBEACH.ORG
• Staff requested Technical Assistance from the Housing Accountability Unit (HAU) within HCD:
• Potential violations with HCA and Housing Element Law • Upzoning needs to be done “concurrently” (Gov. Code Section 63000(h)) • HCD indicates inquiry submitted from developer regarding the ballot measure.

Fiscal Impact
GROVERBEACH.ORG
• If the Ballot Measure is adopted today, or passed in November:
• $5,000 to add initiative to ballot and voter guide (November ballot only) • City to contract with qualified planning consultant; $500k - $1 million • Scope of work:
• Update General Plan Land Use and Housing Element
• Local Coastal Plan and Implementation Plan
• Development Code
• Objective Design Standards and checklists.
• Environmental Impact Report (EIR) (SB 131 may supersede this) City Council Alternatives
GROVERBEACH.ORG
• Adopt a Resolution adopting the proposed Ordinance, limiting heights in certain zones and establish a minimum commercial component in mixed-use projects; or
• Adopt a Resolution calling an election to submit the initiative measure to the voters at the next general municipal election on November 3, 2026.
• Direct staff to issue a Request for Proposal for qualified consultant to complete the impact analysis and update the applicable planning documents in accordance with the Ballot Measure.

Questions
GROVERBEACH.ORG
• Citizens Ballot Initiative
• State Housing Laws
• City Attorney Legal Analysis
• Housing Crisis Act (2019)
• Housing Element Law
• Development Impact Analysis
• Next Steps

← All documents from this meeting