New Zoning Changes to Support Infill Housing (May 2025)

The City updated its zoning regulations to encourage residential development in select commercial areas north and south of Downtown. These changes aim to make “infill” housing—such as adding residential units above existing commercial buildings—more feasible by removing key regulatory barriers.

Applies to: C-N, C-1, and SLV zoning districts

Key Updates below. For complete details, please refer to Ordinance No. 1712 at the bottom of this page. Planning staff are available during our posted counter hours to answer questions and review your property.

• Building Setbacks: Residential development now follows the same setback standards as commercial uses:
  • Front yard: 5 feet
  • Side and rear yards: None required (unless adjacent to a different zone)
    
    
• Open Space: No additional open space required for residential units
• Location of Residential Uses:
  • Allowed on any floor
  • Ground-floor residential must be located behind a commercial use fronting the highway
  • Previous limits on the amount of residential floor area have been removed

• Parking Requirements:
  • Units ≤700 sq. ft. and within ¼-mile walking distance of transit: 0.5 spaces per unit
  • All other units: 1 space per unit
  • The parking may be provided as covered or uncovered
  • As an alternative to provide off-street parking spaces, the owner may request to purchase in-lieu parking certificates
  • Parking requirements may also be satisfied by securing off-site parking, if a property within 600 feet has surplus parking available
    
    
• Development Standard Exceptions (for residential units that will not be converted to short-term rentals):
  • Waiver of upper-floor “additional building setback” (Section 25.50.004(D)) if at least 50% of units are ≤700 sq ft
  • Residential additions that are classified as a major remodel due to the size of the floor area addition can maintain the existing non-conforming conditions associated with the non-residential use, including parking

• Affordable Housing:
  • Only required if the development will result in 10 or more residential units 
    
    
• Entitlements:
  • Conditional Use Permits are no longer needed for residential uses
  • Design review and coastal development permits still apply when applicable