COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Chenin Dow, Community Development Director
DATE: August 4, 2026
SUBJECT: Introduction of Ordinance s Amending Various Sections of Title 12 – Zoning, Relating to Child Day Care Centers, Non-taxable Merchandise Limitations, Transitional and Supportive Housing, Density Bonus, and Accessory Dwelling Units.
Description:
The City Council will consider the introduction of two Ordinances amending various Sections of Title 12 – Zoning, relating to Child Day Care Centers, Non -taxable Merchandise Limitations, Transitional and Supportive Housing, Density Bonus, and Accessory Dwelling Units.
Environmental Notice : The proposed ordinance amendments are exempt from the requirements of the Cal ifornia Environmental Quality Act (CEQA) per Public Resources Code Section 21080.17, and CEQA Guidelines Section 15061(b)(3).
RECOMMENDATION:
1. Waive first reading and introduce an Ordinance amending various sections of Title 12-Zoning of the Santa Maria Municipal Code relating to Child Day Care Centers, Non-taxable Merchandise Limitations, Transitional and Supportive Housing, and Density Bonus; and
2. Waive first reading and introduce an Ordinance amending Title 12, Chapter 12-56, Accessory Dwelling Units; and
3. Set for adoption said Ordinances at the next regular City Council meeting.
BACKGROUND:
The proposed amendments include updates to Title 12, Zoning, of the Santa Maria Municipal Code to address recent updates by the State legislature for Accessory Dwelling Units, compliance with the City’s Housing Element Programs addressing Transitional and Supportive Housing and Employee Housing, and added flexibility in the types of uses that are permitted in shopping centers located within commercial zone districts. This item includes two Ordinances; one that includes proposed amendments to various sections of Title 12, and one that is specifically for Accessory Dwelling Units as this Ordinance is required to be reviewed and approved by the State Department of Housing and Community Development following adoption by the City Council . The proposed Ordinances were reviewed by the Planning Commission at a Study Session on May 21, 2026 and at hearing on July 1, 2026 where both were recommended to the City Council for approval.
2 DISCUSSION:
The following is a summary of the proposed ordinance amendments to Title 12, Zoning (see Attachments A and B).
Density Bonus
The proposed ordinance amendments to Chapter 12 -48, Density Bonus, of Title 12 are required for the Municipal Code to comply with Government Code Section 65915, which governs density bonuses and other incentives. The ordinance includes the procedures for density bonus applications including determinations of qualification, development incentives, review p rocedures, and compliance with Objective Design Standards.
Sections that are no longer in compliance with State law or no longer applicable have been removed.
Housing Element Compliance Programs
The City’s Housing Element of the General Plan includes Programs 4.D, and 4.E, requiring the City to permit transitional and supportive housing and employee housing for six or fewer employees as permitted uses in all residential zones. Additionally, Programs
4.F and 4.G state that the City will amend Title 12 to be consistent with the latest regulations for childcare facilities and list these larger facilities as permitted uses. To comply with these programs, the amendments include updating the relevant cha pters of Title 12 for all residential zones to list transitional and supportive housing defined in Government Code Section 65582 and implemented under Health and Safety Code Section 50675.14 as a permitted use. Employee housing defined in Health and Safety Code Section 17021.5 providing accommodation for six or fewer employees is also proposed to be listed as permitted in residential districts.
Child day care centers that currently require a Conditional Use Permit will be listed as a permitted use in al l residential, commercial and industrial zones. These facilities are required to comply with the State licensing provisions and any relevant Title 12 development standards for the zone addressing parking, landscaping, building height, setbacks, etc. The pr oposed ordinance specifies that child day care centers are only permitted in industrial zones when associated with, and integrated into, a facility that is a permitted or conditionally permitted use.
Non-taxable Merchandise Limitations
On October 21, 1997, the City Council adopted Ordinance 97-12, that added the following provision to shopping centers located in the Central Business (C -1) and General Commercial (C-2) districts:
For commercial uses exceeding 90,000 square feet of gross floor area, the non- taxable merchandise floor area shall not exceed eight percent of the total gross floor area of the building occupied by the commercial use. (Ord. 97-12, Enacted, 12/4/97)
The intent was to preserve the City’s existing shopping centers that are generally located along Broadway and Main Street and maintain retail sales tax income for the City. The 3 General Plan Land Use Element was also amended at that time to include this limitation.
In the more than 25 years since this ordinance was adopted, the nature of retail sales and the types of businesses that occupy larger shopping centers has changed. This is in part a result of the popularity of online retail sales with fewer customers purchasing items in person at retail stores. Additionally, larger retail stores such as Costco Wholesale, Winco, Target, Sams Club, and Walmart now include a much wider variety of groceries and food products along with taxable merchandise. Specialty grocery stores like Sprouts, California Fresh, and Whole Foods have also gained in popularity as well as a variety of recreational types of uses that may be appropriate to locate within shopping centers located in commercial districts.
The proposed ordinance includes deleting this provision in both the C-1 and C-2 districts.
Removal of this requirement will provide greater flexibility for the types of uses permitted within shopping centers and avoid situations where vacant buildings cannot be occupied by a use that is permitted but may exceed the eight percent non -taxable limitation. The proposed amendment is also consistent with the City’s recently adopted General Plan which superseded the prior General Plan that included this provision.
Accessory Dwelling Units and Junior Accessory Dwelling Units During the 2025 legislative session, the legislature passed and the Governor signed four new bills (AB 462, AB 1154, SB 9, and SB 543) further amending the State laws regulating ADUs and JADUs. To be consistent with State law, Chapter 12-56 of Title 12 is proposed to be amended to address the following:
A definition of “Livable Space” has been added which is defined as: “A Space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation.”
No replacement parking is required when an attached garage i s converted to a JADU.
Owner occupancy is no longer required for a JADU that has its own sanitation facilities within the unit. If a JADU shares a sanitation facility with the principal dwelling, owner occupancy in either the principal dwelling or JADU is required. Permit processing timelines:
o Within 15 business days – Notification of application completeness or incompleteness.
o Within 60 days from complete application – Permit is approved or denied unless the applicant requests a delay or there is an application to create a new primary dwelling unit on the site.
o Determinations regarding incompleteness or denial may be appealed to the Planning Commission within 14 calendar days following the written determination. Planning Commission is required to provide a final written determination within 60 days after receipt of the appeal.
4 Within 60 days following the adoption of the amended Ordinance by the City Council, the City is required to submit the adopted Ordinance to the California Department of Housing and Community Development ( HCD) for review. The City is required to respond to any questions or comments received following review by HCD within 30 days.
ATTACHMENT(S)
A. Ordinance Amending Various Sections of Title 12
B. Ordinance Amending Title 12, Chapter 12-56, Accessory Dwelling Units