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Planning Commission recommends City Council adopt SB 9-related development-code amendments, including 60-day shot clock and limits on design standards
Summary
The commission recommended City Council adopt code changes implementing SB 9 (urban lot splits and two-unit developments) and related state bills (SB 450, AB 1061 and SB 543). Staff said changes narrow locally applicable design rules, set a 60-day review clock for complete applications and clarify unit limits for lots created via splits or not.
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The Arroyo Grande City Planning Commission on Nov. 4 voted unanimously to recommend City Council adopt amendments to the municipal code that implement state laws governing urban lot splits and two-unit developments under SB 9 and subsequent state bills.
Planning Manager Andrew Perez summarized the proposed changes and the recent state legislation that prompted them. Key points included:
- SB 9 and related bills: The citys SB 9 implementation ordinance (Ordinance 716, adopted 2022) is being updated to reflect SB 450, which restricts local objective design standards for SB 9 development to those uniformly applicable to other single-family development and limits the citys ability to impose design conditions on urban lot splits. SB 450 also established a 60-day shot clock for the city to act on a complete application. AB 1061 narrows historic-resource protections previously applied to SB 9 and exempts lots that do not contain designated historic resources. SB 543 (discussed in the ADU item) also affects unit-count calculations in combination with ADU rules.
- Unit counts and configurations: For lots created through an urban lot split, the proposed ordinance limits development to two units. For existing lots not created through a split, the ordinance allows up to five units under specified configurations (for example, two attached primary units plus permitted ADUs consistent with state ADU law).
- Application process: The proposed code removes a requirement that applicants submit building permits concurrently with a lot-split application (that practice is no longer allowed under state law). Staff said the city still must assess building permit and inspection fees; however, the calculation of development-impact and school fees under SB 543 requires additional local policy decisions.
Commission discussion focused on practical implementation issues such as fee calculations when modest, previously existing ADUs are combined with new construction, enforcement of owner-occupancy requirements (staff said the city will use notarized affidavits and annual verification for three years), and staff capacity to meet the new 60-day timelines. Commissioners also noted the balance between incentivizing infill housing and the potential for significant neighborhood change.
Motion and outcome: The Planning Commission moved and seconded a resolution recommending City Council adopt the SB 9-related amendments (municipal code sections 16.21.80 and 16.32.06) and find the ordinance categorically exempt from CEQA (Guidelines sections 15060 and 15061); roll-call vote recorded unanimous approval among commissioners present.
Provenance: Staff presentation begins at 00:58:32; commission motion and vote appear at 01:13:22.

