Planning Commission recommends City Council adopt ADU ordinance updates to comply with state law and HCD findings

The Arroyo Grande City Planning Commission on Nov. 4 voted to recommend City Council adopt amendments to Title 16 of the Arroyo Grande Municipal Code to bring the citys accessory dwelling unit (ADU) regulations into compliance with recent state legislation and to address issues raised by the State Department of Housing and Community Development (HCD).

Planning Manager Andrew Perez told the commission the city's ADU ordinance was updated in December 2024 (Ordinance No. 733) and that the new package responds to three bills signed by the governor this year: AB 462, AB 1154 and SB 543. Staff said the changes are intended to keep the local ordinance in force and to avoid nullification from noncompliance with state law. Perez summarized the major effects:

- AB 462 (certificate-of-occupancy timing): permits local agencies to issue a certificate of occupancy for an ADU before a certificate for the primary dwelling when the county is under a state of emergency and the primary dwelling was damaged or destroyed by the event, provided the ADU has passed all required inspections and obtained the necessary permits.

- AB 1154 (junior ADU owner-occupancy and short-term rentals): owner occupancy is now required only for junior ADUs that share sanitation facilities with the primary unit; the law expressly prohibits junior ADUs from being used as short-term rentals.

- SB 543 (unit-size and fee rules): defines unit size for regulatory and fee purposes by interior livable space (instead of gross square footage) and exempts ADUs under 500 square feet from school fees; it also clarifies combinations of ADU types that can coexist on single-family and multifamily properties and establishes timelines for application completeness and appeal of completeness determinations.

Perez also briefed the commission on a findings letter from HCD that requested the city remove a subjective local standard that had prohibited ADUs within 500 feet of a historic resource from being visible from the public right of way. Staff proposed deleting that standard to comply with state law.

Commissioners asked clarifying questions about the limited areas where the city can retain local control and about timing. Perez said the proposed ordinance would be taken to City Council on Nov. 25 with possible adoption as early as Dec. 9 and an effective date roughly 30 days after council adoption, in January.

Public comment: A member of the public urged commissioners to consider village character and design compatibility when applying state-directed changes. Perez noted the citys village design guidelines and said ADU materials and colors must be compatible with the primary dwelling; he also promised to send links to the proposed ordinance and staff report.

Motion and outcome: The Planning Commission moved and seconded a resolution recommending City Council adopt the ADU amendments and find the action statutorily exempt under Public Resources Code section 21080.17. Roll-call vote recorded unanimous approval among commissioners present.

Provenance: Staff presentation and legal summary begin at 00:38:57 in the transcript; the commission motion and vote appear at 00:57:21.