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Atascadero council adopts ADU ordinance updates with 5‑foot allowance for sloped lots

January 14, 2026 | Atascadero City, San Luis Obispo County, California


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Atascadero council adopts ADU ordinance updates with 5‑foot allowance for sloped lots
Atascadero — The City Council on Jan. 12 adopted a suite of updates to the city’s accessory dwelling unit code intended to bring local rules into compliance with recent state guidance and legislative changes.

Planning staff told the council the changes respond to Housing and Community Development (HCD) comments and recent state law. Community Development Director Mister Dunsmore said the amendments ‘‘reflect compliance with housing and community development’’ and staff recommended the council adopt the ordinance with minor local modifications.

The most significant changes include allowing ADUs regardless of the site’s density, conforming side and rear setbacks to the state minimum of four feet, removing certain deed‑restriction language and clarifying that constructing an ADU will not force a primary residence to add sprinklers if it does not already have them. Planning Manager Kelly said the state also permits up to eight detached ADUs on some multifamily parcels under a proportional formula and described options for addressing ADU height on sloped parcels.

Council members focused on two practical issues: fire‑safety/egress implications of a four‑foot setback and how to measure ADU height on sloped lots. Mayor Pro Tem Dares and Council member Funk pressed staff on scenarios that could limit window placement and egress. Staff advised that a four‑foot setback could constrain openings and that where openings are required the city could require a five‑foot setback or fire‑rated openings. On height, staff presented two options and recommended retaining the city’s existing measurement methodology and adding a five‑foot allowance for lots with slopes of 20% or greater.

‘‘Adding additional height does create that allowance for buildings on sloped lots,’’ Kelly said. ‘‘It also allows for units to have roof form. When you have an extreme height limitation ... sometimes people put flat roofs on their buildings.’’

In public comment, Joe Fosland asked whether ADUs may be served by septic, whether school fees apply and whether an ADU could exceed the height of an existing primary residence. Staff answered that septic rules remain in place (typically requiring larger lot sizes for septic service), that school‑fee exemptions are governed by state law and that any height allowance for an ADU cannot exceed the underlying zone’s maximum height for a new primary unit.

Council member Funk moved to approve the ordinance as recommended by staff with the inclusion of the 5‑foot height allowance for slopes ≥20%; Mayor Pro Temdares seconded. Roll call showed four votes in favor and none opposed; Council member Peake was absent.

The ordinance update also clarifies that certain deed‑notification language will be restated as informational deed notices rather than restrictive covenants, and it aligns local code language with state statutory references and HCD interpretations. The council did not adopt new development‑feeper exemptions beyond those set by state law.

The ordinance is intended to align Atascadero’s ADU rules with state requirements while preserving discretion on design and fire‑safety accommodations at the local level.

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