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Arroyo Grande moves to align local rules with new state housing laws on lot splits, ADUs

November 26, 2025 | Arroyo Grande City, San Luis Obispo County, California


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Arroyo Grande moves to align local rules with new state housing laws on lot splits, ADUs
At a pair of hearings Tuesday night, Arroyo Grande staff presented and the council introduced updates to the city's SB 9 implementing ordinance and to its accessory dwelling unit (ADU) regulations to comply with multiple bills recently signed into state law.

Planning Manager Andrew Perez said the proposed SB 9 amendments respond to SB 450 (limiting local design standards when not uniformly applicable), AB 1061 (narrowing historic-resource protections so only parcels with a designated historic resource are ineligible for SB 9), and SB 543 (clarifying unit counts for split and non-split parcels). "For parcels created through an urban lot split, they're simply limited to two units on each parcel," Perez said; non-split parcels may be limited to up to five units depending on configuration and ADU rules.

Perez also summarized ADU changes prompted by AB 462, AB 1154 and SB 543: the law now allows an ADU to obtain a certificate of occupancy before the primary dwelling in certain narrow emergency circumstances; AB 1154 amends junior ADU owner-occupancy rules and prohibits JADUs as short-term rentals; and SB 543 clarifies the number and combinations of ADUs allowed on single-family and multifamily properties. Staff removed a subjective standard previously limiting ADU visibility from the right-of-way in response to a Department of Housing and Community Development (HCD) finding.

Council members debated neighborhood character, owner‑occupancy practicalities for vacant-lot splits and enforcement challenges under state rules. Several council members said they support updating local ordinances to retain as much local control as possible while complying with state mandates. Both ordinances were introduced by council vote for final adoption at a later hearing.

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