A proposed Grover Beach ballot measure that would limit building heights and commercial development could conflict with California housing law, according to a letter from the state's Department of Housing and Community Development.
The letter, presented during Monday night's City Council meeting, says Measure F-26 would likely reduce the city's ability to build housing in the future.
The citizen-led initiative that's expected to make its way onto the November ballot, would cap most commercial buildings at three stories and require at least one-third of mixed-use developments to remain commercial.
Measure F-26 grew out of a citizen-led campaign organized by the group Save Grover Beach. Supporters say they launched the initiative because taller mixed-use developments approved in recent years were changing the city's character and reducing commercial space.
But according to the letter from state officials, the measure will likely reduce the city's ability to build future housing.
Under state law, Grover Beach would have to make room for the same number of unit requirements somewhere else through zoning changes. If it doesn't, the state says the measure could not be enforced.
Mayor Kassi Dee said the state's response fundamentally changed the council's discussion.
"We want to talk with you all about height limits, about commercial space requirements. We are completely in concurrence with that," Dee said. "But HCD is saying that this item would be void."
Councilmember Kathy McCorry-Driscoll said the council has a responsibility to respect both voters and state law.
“We can do our best to support a measure, but in doing so, we have to honor the oath that we swore, every single one of us up here, to abide by certain laws,” McCorry-Driscoll said. “And it's not just federal law. It is California state law.”
Some residents criticized the state's warning.
Kelvin Coveduck, with Save Grover Beach, spoke during public comment. Coveduck accused state officials of using scare tactics and urged the city to continue supporting the initiative.
"There's 1,256 people tonight that are probably really upset," Coveduck said. "Those are the people that signed the initiative. This isn't over."
The letter from the state housing department also warns that if the city does not follow state housing law, it could face legal action and face financial penalties starting at $10,000 per month, along with attorney's fees.
The City Council voted to pause further study of the measure after discussing the state's concerns. The council plans to continue the discussion during the city's next Housing Element update.
