Planning commission recommends City Council approve code amendments to allow supportive and transitional housing and low‑barrier navigation centers

The Arroyo Grande Planning Commission on Sept. 2 voted unanimously to recommend that the City Council adopt development code amendments to implement the city’s housing element provisions for supportive housing, transitional housing and low‑barrier navigation centers.

Andrew Perez, the city’s planning manager, told commissioners the amendments implement programs J0.2-2 and J0.2-3 from the housing element (certified May 2021) and state legislation requiring changes in land‑use treatment. Perez said Assembly Bill 2162 (2018) requires cities to treat supportive and transitional housing as residential uses for permitting purposes, and Assembly Bill 101 (2019) established low‑barrier navigation centers as a use that must be allowed by right in residential and mixed‑use zones that permit multifamily housing.

Perez summarized key definitions and standards that the proposed code section would place in the municipal code. He said supportive housing is “housing for the target population with no limit of stay,” while transitional housing is a subset intended to be temporary — typically a minimum of six months — with on‑site support services and the goal of moving residents to permanent housing. Perez said, as required by state law, a development proposing supportive or transitional housing need not be exclusively dedicated to that use but must restrict either the greater of 25 percent of units or 12 units to the target population and ensure all units in the development are restricted to low‑income households except a manager’s unit.

Perez also described minimum submittal expectations for service plans: applicants must identify the service provider’s name, funding sources and intended staffing levels, and building plans must designate dedicated administrative or service area(s). For developments of 12 units or fewer, staff said at least 90 square feet must be dedicated for administration.

On low‑barrier navigation centers, Perez said the state defines them as “housing first, low barrier, service enriched shelter” that provide temporary living facilities, case managers, storage for possessions and accommodations for partners and pets. He added that navigation centers must operate with the coordinated entry system and provide on‑site services that connect clients to permanent housing solutions.

Perez told the commission the proposed code consolidates definitions into a new code section, updates the land‑use tables to reference that section and carries forward other code edits for consistency. Staff recommended the commission adopt a resolution recommending that the City Council adopt the ordinance. Perez said staff determined the amendment is exempt from CEQA under state guidelines sections 15060(c)(2) and 15061(b)(3).

Commissioners asked whether these housing types exist in the city now; Perez replied that they do not, although the city does have an emergency shelter operated by the 5 Cities Homeless Coalition on East Grand Avenue. Commissioners also asked about likely barriers to establishing such uses; Perez said funding for services and staffing and the availability of suitable sites or structures are likely constraints. Commissioners inquired about vetting service providers; Perez said the government code provides limited guiding language, and the city could evaluate proposals in consultation with legal counsel and via submittal requirements that document services and funding.

A commissioner moved the recommendation that the Planning Commission adopt the resolution recommending the City Council adopt the proposed ordinance and include the CEQA exemption finding; a second followed and the commission passed the motion on a unanimous roll call vote (Vice Chair Martin: yes; Commissioner Buchanan: yes; Commissioner Sackerson: yes; Commissioner Worthen: yes; Chair Roof: yes).

Staff said next steps include transmitting the recommended ordinance to the City Council for public hearings and final action. No public commenters spoke on the item during the hearing.

Key provisions described by staff include the by‑right requirement for supportive/transitional housing and navigation centers in zones that permit residential uses; required documentation of service providers (name, funding, staffing), minimum dedicated administrative area sizing for small developments, and operation within the coordinated entry system for navigation centers.