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
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Housing Crisis Act (Senate Bill 330)
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• 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
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• 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
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• 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
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• 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
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Existing Standards Prototype 1 – Ballot Measure – Average Unit Size Development Impact Analysis
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Existing Standards Prototype 2 – Ballot Measure – Fractional Density Unit Development Impact Analysis
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• 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
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• 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
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• 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