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Arroyo Grande · Building on your lot

Affordable units in new housing (inclusionary) in Arroyo Grande

Arroyo Grande's own rules on affordable units in new housing (inclusionary), with the code text for every value.

Each rule below links to the section of the Arroyo Grande Municipal Code it was read from, with the code text one click away (checked October 2026). General information, not legal advice.

What Arroyo Grande's code says

Arroyo Grande code What Arroyo Grande's code adds
Exemptions
  • One single-family residence and/or a secondary dwelling on the same existing parcel is exempt.
    § 16.80.030 · code text
    A project consisting of one single-family residence and/or a secondary dwelling on the same existing parcel shall be exempt from the requirements set forth in this chapter.
Fee instead of units
  • Fee follows a schedule set by city council resolution.
    § 16.80.050 · code text
    The amount of the fee shall be calculated using the fee schedule established by resolution of the city council.
  • In-lieu fee set by city council.
    Applies: Projects of 2 to 4 residential units.
    § 16.80.040 · code text
    Notwithstanding the foregoing, a project consisting of two to four residential units may satisfy the inclusionary requirements by payment of an in-lieu fee as established by city council.
Projects it applies to
  • 2 or more housing units.
    Applies: Any new residential project, substantial rehabilitation, or development resulting from specified conversions.
    § 16.80.030 · code text
    This chapter shall apply to the construction of any new residential project of two or more housing units, or the substantial rehabilitation of two or more housing units, and shall also apply to any development that results from the conversion of two or more existing rental housing units to ownership units or from such conversion of two or more existing housing units from an exempt use to a nonexempt use.
Share of affordable units
  • At least 5% very low-income units.
    Applies: One of the options: this, 10% lower-income units, 15% moderate-income units, or an equivalent combination.
    § 16.80.050 · code text
    Provision of affordable housing units of at least five percent very low-income units;
  • At least 10% lower-income units.
    Applies: One of the options: this, 5% very low-income units, 15% moderate-income units, or an equivalent combination.
    § 16.80.050 · code text
    Provision of at least ten (10) percent lower-income units;
  • At least 15% moderate-income units.
    Applies: Projects planned for rental units or units not developed as a common interest development.
    § 16.80.050 · code text
    Provision of at least fifteen (15) percent moderate-income units where the proposed project is planned for rental units or units that are not developed as a common interest development pursuant to Civil Code Section 1351;

Who this affects

HomeownersContractorsDesigners

Frequently asked questions

Does Arroyo Grande require affordable units in new housing?

Arroyo Grande's code: One single-family residence and/or a secondary dwelling on the same existing parcel is exempt. (§ 16.80.030); Fee follows a schedule set by city council resolution. (§ 16.80.050).

General information, not legal advice.

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