Chapter 17.26 — RESIDENTIAL GROWTH MANAGEMENT SYSTEM

Prior legislation: Ords. 1460 NCS, 1446A, 1426, 1389, 1343, 1321.

It is the intent of this growth management system to assure that residential development, remains within the

limits established by the Petaluma General Plan as amended from time to time. It provides a mechanism for the

city council to set growth-related development objectives including but not limited to maintaining a reasonable

ratio of eastside to westside growth, encouraging inZll and a mix of housing types, and assuring that essential

public facilities and services are properly matched to proposed development. Furthermore, it is the intent of this

chapter to improve the e\ciency of the development review process and establish tentative map approval, Znal

map approval (for subsequent project phases) or other appropriate development approval (for residential projects

not requiring a land division) as the point at which allotments have been exercised. (Ord. 1716 NCS §1, 1988.)

A. This growth management system represents a reZnement of and not a departure from the city’s long

standing and legally-tested growth management system, Zrst adopted in 1972 and in continuous operation since

then.

B. The residential allocation pool for nonexempt units established by the 19872005 Petaluma General Plan and

incorporated in this ordinance, an average of Zve hundred units allocated per year, no more than one thousand

units allocated in one year and no more than one thousand Zve hundred units allocated in three consecutive

years, provides the [exibility to modulate residential growth over time and prevent overburdening local services,

while accommodating future residential development at a rate consistent with historic trends.

C. The growth management system serves the public interest and protects the public health, safety and welfare

by implementing residential growth parameters upon which future planning for land use and major city facilities

(such as city sewer and water systems) is based.

The Petaluma Municipal Code is current through Ordinance 2916 NCS, passed December 1, 2025.

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D. The growth management system is a key implementation measure of the 1987-2005 general plan and

essential to attaining the following general plan goals:

1. Preserve and strengthen the quality of life in Petaluma (Goal 2, Community Character);

2. Maintain Petaluma as separate and distinct from nearby communities (Goal 1, Land Use and Growth

Management);

3. Preserve existing open space lands outside of Petaluma but within the Petaluma Planning Referral Area

(Goal 3, Conservation, Open Space and Energy);

4. Preserve and protect agricultural use on lands surrounding Petaluma in the Petaluma Planning Referral

Area (Goal 4, Conservation, Open Space and Energy).

E. The growth management system will not prevent the city from attaining its regional fair share of housing

needs as determined by the Association of Bay Area Governments (ABAG) because the system permits exemptions

for senior housing and very low/low income housing developments.

F. The housing chapter of the 1987-2005 Petaluma General Plan has been certiZed by the State Department of

Housing and Community Development based on the city’s ability to satisfy regional housing needs while

maintaining its growth management system.

(Ord. 1795 NCS §1, 1990; Ord. 1716 NCS §1, 1988.)

For the purpose of this chapter, the words set out in this section shall have the following meanings:

A. "Allocation" means the right, granted by the city council, to make application to create a residential lot or

build a residential unit. An allocation is not a guarantee of receiving approval for the requested number of lots or

units proposed by the residential development application. The actual number of lots or units approved shall be

determined by the planning commission and city council through the development review process.

B. Allotment. See "Allocation." For purposes of this chapter, the terms "allotment" and "allocation" are used

interchangeably.

C. "Annual allocation pool" means the numerical total of allocations as set by the city council and available for

distribution to qualifying projects in a given year.

D. Application, Complete. "Complete application" means a determination made by the director of community

development or his/her designee that all of the required information submitted by an applicant for a development

project is correct and ready for processing. For projects requiring an environmental determination (negative

declaration, focused studies, an environmental impact report), an application will not be deemed complete until

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su\cient information has been provided by the applicant for the city, as lead agency, to make a determination of

the extent of the environmental review.

E. Application, Development. "Development application" means all information required of the applicant in order

to initiate the development review process.

F. "Development objective" means a statement, made annually by the city council, and approved by resolution,

expressing the council’s priorities with respect to desired future conditions of residential development for the

coming building year. These priorities may include, but are not limited to, consideration of such factors as tra\c,

schools and housing type and location. Those projects which, in the opinion of the city council, su\ciently satisfy

one or more development objectives may be given all, some, or none of its allocation request while other projects

may only receive a lesser percentage of or none of, its allocation request. Although development objectives are

not binding on a speciZc project or projects; the city council shall consider a project’s e]orts to meet the

development objectives when granting allocations in years when the number of allocations requested exceeds the

number of available annual allocations. The city council shall use the development objectives in addition to

general plan policy as criteria for distributing allocations to individual projects.

G. "Development review process" means all of the various steps required to receive city approval for a

development project. For purposes of this chapter, the development review process shall include all steps leading

up to and including the approval of a tentative map by the city council; approval of a rezoning by the city council

(for residential projects not requiring a land division); or SPARC approval (for residential projects not requiring a

land division or rezoning). It also includes all steps leading up to and including certiZcation of any environmental

documents. For projects that must be phased to comply with the provisions of this chapter, the development

review process shall also mean all steps leading up to and including Znal map approval by the city council, or the

issuance of building permits by the chief building o\cial (for residential projects not requiring a land division).

H. "Exemption" means projects not subject to all of the provisions of this chapter. There are two kinds of

exemptions. The Zrst type, which applies to one hundred percent senior and lower income housing, exempts the

subject development from both the allocation process and from being counted as part of the annual allocation

pool set by the city council. The second type, which applies to projects on Zve acres or less and creating no more

than thirty units or lots, are exempt from the application procedure for an allocation; however, these unit/lots are

counted as part of the annual allocation pool established by the city council. These non-senior or non-lower

income inZll projects shall be phased so that no more than Zfteen units or lots are created per year.

I. "General plan" means the 1987-2005 Petaluma General Plan as amended.

J. Lower Income Housing. General referring to housing for some combination of low and very low income

households.

K. "Low income housing" means housing a]ordable to those households meeting the low income standards as

deZned by the U.S. Department of Housing and Urban Development.

A low income household has an annual income of not more than eighty percent of the Sonoma County median

household income by household size.

The Petaluma Municipal Code is current through Ordinance 2916 NCS, passed December 1, 2025.

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L. "Notice of intent to develop" means a form required to be completed by an applicant seeking allocations for a

given year.

M. "Preliminary review" means a procedure, required of all projects subject to this chapter, whereby the

department of community development reviews and evaluates the project prior to the Zling of a development

application. The intent of preliminary review is to provide the applicant with an assessment of potential areas of

concern about the project, applicable conditions of approval and an opportunity to discuss these with city sta]

before an application is Zled.

N. "Reservation" means the commitment of the city council to grant future allocations. Reservations are

intended to provide the applicant with a measure of certainty that allotments will be available for a subsequent

project phase. An applicant may only request and the council approve reservations for the year immediately

following the calendar year for which allotments are requested. The total number of reservations shall be

subtracted from the number of allocations in the same category available for the year for which the reservations

are made.

O. "Senior housing" means any multiple-family attached housing units for rent with city approved restrictions

that limit tenancy such that at least one member of the household is Zfty-Zve years of age or older.

P. "SPARC" means the site plan and architectural review committee of the city.

Q. "Supplementary allocation" means an additional procedure by which applicants may request allocations if it is

determined by the city council that there is su\cient capacity remaining in the annual allocation pool after

allocations have been initially granted to all applicable projects.

R. "Unit" means a residential lot or dwelling unit created in accordance with the Subdivision Map Act, or

otherwise legally created, or a residential unit in a project not requiring a land division.

S. "Very low income housing" means housing a]ordable to those households meeting the very low income

standards as deZned by the U.S. Department of Housing and Urban Development. Very low income households

are those earning less than Zfty percent of the Sonoma County median household income by household size.

T. "Three year period" means any three consecutive years, i.e., 1990, 1991, 1992 followed by 1991, 1992, 1993.

U. "Secondary allocation pool." The secondary pool is comprised of allocations from any previous years that

were: 1) forfeited due to an applicant’s failure to meet the requirements of the growth management system, 2) not

issued from a set pool, or 3) issued but not utilized by the approved project (i.e., where the allocations issued

exceeded the number of units approved). The secondary pool’s allocations are counted separately from those of

the annual allocation pool.

(Ord. 1841 NCS §§1,7,8, 1991; Ord. 1839 NCS §§ 3,5,6, 1991; Ord. 1795 NCS §§ 2-4, 1990; Ord. 1716 NCS § 1, 1988.)

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A. This chapter applies to all residential development projects having more than thirty units.

B. Senior housing projects and lower income housing projects shall be exempt from the provisions of this

chapter.

C. Projects with no more than thirty units shall be exempt from the allocation procedures as described in

Section 17.26.050, below. However, projects of this type, unless otherwise exempted as senior or lower income

housing shall have their units covered as part of the annual allocation established by the city council. Furthermore,

said nonsenior or lower income housing projects shall be limited to phasing the project at Zfteen parcels, or units

construction, or less per year.

D. Projects on parcels of Zve acres or less and no more than thirty units shall be exempt from the allocation

procedure as described in Section 17.26.050, below. However, projects of this type, unless otherwise exempted as

senior or lower income housing, shall have their units counted as part of the annual allocation established by the

city council. Furthermore, said non-senior or lower income housing projects shall be limited to phasing the project

at Zfteen parcels, or units constructed, or less per year.

E. An applicant may not request allocations for more than one hundred units for a single project or project

phase for a given year unless the city council authorizes the additional allocations by means of a development

agreement.

F. Reservations for allotments in a given year shall be limited to a total of two hundred Zfty units for all projects.

G. Applications for development approval (either tentative map or other applicable approval for residential

projects not requiring a land division) may be submitted for an entire project, even if it exceeds one hundred units.

However, the city shall require a project to be phased so that no single phase shall exceed the allocation limit set

forth in subsection (E) of this section, nor shall any single phase exceed the number of allotments granted to that

project for a given year. When phasing of a project is required in order to satisfy the provisions of this chapter, one

or more of the following shall apply:

1. Approval of the tentative map or other applicable approval for residential projects not requiring a land

division shall constitute the point at which allocations for the Zrst phase of the project have been exercised;

2. For subsequent phases of a project with an approved tentative map, Znal map approval shall be the

point at which allocations have been exercised. Each Znal map application must conform to the number of

allocations granted in a given year;

3. For subsequent phases of an approved residential project not requiring a land division, issuance of

building permits shall be the point at which allocations have been exercised. Building permits shall only be

issued for that number of units equal to the number of allocations granted in a given year.

The Petaluma Municipal Code is current through Ordinance 2916 NCS, passed December 1, 2025.

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H. The department of community development shall develop and maintain as current a "user’s guide" to the

requirements set forth in this chapter. Said guide shall be made available to all interested persons and, especially,

to those with applicable projects. The city council shall adopt and amend the guide by resolution.

I. The city council may at its discretion create a secondary allocation pool, not to exceed two hundred

allocations for special projects meeting a particular segment of the housing market as deZned by the city council’s

development objectives. Unless otherwise speciZed in this chapter, the same application and approval procedures

shall apply to this secondary pool. The criteria for eligibility for the secondary pool shall be set by the city council at

the time the pool is created.

J. There shall be no reservations for the secondary allocation pool.

K. Residential projects ultimately subject to the Residential Growth Management System may proceed with

other necessary approvals not directly resulting in the division of land or construction of residential units, (i.e.,

general plan amendment, rezoning, environmental review, annexation, etc.) as determined by the director of

community development. The processing of such applications not directly resulting in the division of land or

construction of dwelling units is not a commitment by the city that the proposal will ultimately receive allocations.

Prior to said application(s) being considered complete, the applicant shall acknowledge in writing that the

processing and approval of said application(s) is not to be interpreted as a commitment by the city to grant

allocations to the project in future years.

Residential projects not requiring land division to construct individual units, unless exempt from the growth

management system, may not process any applications directly resulting in the right to create residential units,

such as SPARC approval, prior to the project being granted allotments.

(Ord. 2038 NCS §§1,2, 1996; Ord. 1841 NCS §§ 2,8,9, 1991; Ord. 1839 NCS §§1,4, 1991; Ord. 1716 NCS §1, 1988.)

A. Development Objectives.

1. In January of each year, the city council shall begin the allocation application procedure by setting

development objectives for the following calendar year and, if appropriate, succeeding years. Development

objectives shall be set by resolution of the city council. If a secondary allocation pool is to be created for that

year, the council shall also set development objectives and eligibility requirements for the secondary pool.

2. Development objectives are intended as an indication to the development community of the city’s

expectations for a given year and may include, but are not limited to issues such as housing mix (types and

a]ordability); east/west development ratio; needed public facilities; infrastructure improvements; and inZll

areas where development might be encouraged.

3. Development objectives will be based on assessment of the future residential development as provided

by general plan policy, service capacities (including tra\c considerations), capital improvement plan

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recommendations, city council goals, past development history, environmental constraints and other

pertinent data.

B. Notice of Intent to Develop.

1. In January of each year (following the council establishing development objectives), the department of

community development shall make available "notice of intent to develop" forms. Said forms will be sent to

all known local developers, and the availability of the forms will be advertised to other potential developers

through Bay Area housing and development newsletters and other means of outreach. The forms will be

accompanied by a narrative describing the council’s development objectives and shall serve as the vehicle by

which allocations are requested for a given year.

2. Notice of intent to develop forms shall be required for each residential project subject to the growth

management system and seeking development approval in the calendar year speciZed on the form.

Developers intending to apply for more than one project must complete a separate form for each;

applications for development approval will not be accepted unless a notice has been returned to community

development and planning department within the designated time period.

3. Completed notice of intent to develop forms must be returned to the department of community

development by March 31st signed by the property owner or his/her authorized agent and shall contain the

following information:

a. Project size (number of units and acreage) and type (single-family, multifamily, etc.);

b. Phasing (geographic and/or chronologic if over more than the applicable calendar year);

c. Numbers of bedrooms/unit (e.g., a Zfty-unit project may have twenty-Zve three-bedroom units and

twenty-Zve four-bedroom units);

d. Anticipated price or rental range;

e. Project amenities (private or public);

f. Public improvements (on and o]-site);

g. Estimated development application submittal date:

h. Date speciZc project application approval and development time line;

i. Number of allocations requested;

j. Reservations requested;

k. A brief narrative describing how the proposed project satisZes applicable development objectives;

l. Statement of whether the application is for the annual pool or secondary allocation pool for special

projects;

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m. Any other information considered pertinent by the director of community development.

In addition, developers will be asked to provide a two-year projection (i.e., two years beyond the year for

which the form is being Zled) of their development activity in Petaluma in terms of numbers and types of

units and general location of projects. This information will be used by the city’s department of community

development sta] to assess future development trends.

4. Applicants requesting allotments or reservations for subsequent phases of already approved projects

need only return the notice of intent to develop form with the allocation and/or reservation request portion

completed, as long as the project phase for which allocations are being requested is substantially similar to

that described in the initial notice form for the project. At any time, however, the director of community

development may require that additional information be included on the subsequent notice forms.

5. The number of allocations or reservations requested on the notice of intent to develop form should not

be construed as a guarantee that the applicant will either receive that number of allotments from the city

council or that the project will be approved for that number of units.

6. In any given year, an applicant may request partial allocations from both the annual allocation pool or

the secondary pool for a single project; however, allocations for any unit may not be requested from both

pools.

(Ord. 1841 NCS §§ 3,4,5,7,8, 1991; Ord. 1716 NCS § 1, 1988.)

A. By the end of April of each year, the city council shall meet to consider setting the annual allocation pool, and,

if desired, the secondary allocation pool, to estimate the limits on projected development activity for the

succeeding two years; and to grant allocations for the coming calendar year and reservations for the year

following. The annual allocation pool may be less than, equal to or greater than the total number of allocations

requested for that year on the notice of intent to develop forms. However, the annual allocation pool must not

exceed limits set by the general plan: an average of Zve hundred units per year, no more than one thousand units

in any one year, and no more than one thousand Zve hundred units over three consecutive years. Allocations in

the secondary pool shall count against the year in which they were originally set in an annual pool.

The granting of allocations to a speciZc project is not a commitment in any way that the council will eventually

approve the project, nor is it a commitment by council to grant additional allotments to said project in future years

(unless reservations have been granted pursuant to this chapter). Projects receiving allocations and no

reservations must be designed to be constructed as a complete unit with no requirement that future allotments

be granted to complete the project.

B. In the event anticipated development for a given year will exceed the established allocation pool, the city

council may exercise one or more of the following options:

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1. It may increase the annual pool by "borrowing" from future years allotment capacity. However, the city

council shall not borrow ahead more than two succeeding years beyond the year in which the limit is being

increased (Year Y) and it shall be limited to borrowing no more than two hundred units from the Zrst

succeeding year (Y + 1) and no more than one hundred units from the year following (Y + 2). At no time shall

the allocation pool be permitted to exceed one thousand units in a year or one thousand Zve hundred units

in three consecutive years as established by the general plan. Allotments may not be borrowed from future

years for the secondary allocation pool.

Allocations secured by previously approved development agreements between the city and applicant shall

not be counted as allocations borrowed from future years. Said allocations secured by a development

agreement shall be counted as part of the total number of allocations annually awarded.

2. It may choose to grant allocations only for a speciZed percentage of the project units requested. This

percentage will apply to projects intending to develop in the calendar year in question and shall be set by the

city council based on a project’s ability to satisfy the city’s development objectives. Percentages, therefore,

may vary from project to project, but shall be set so all eligible projects may proceed within the established

number of allocations. Units not receiving allocations as a result of the council’s decision are not

automatically approved for the next year, but must be re-applied for through the notice of intent to develop

process and considered in light of that year’s available allocations and development objectives.

C. The city council may annually borrow from future years allotment capacity a minimum of forty-Zve units per

year to accommodate projects on parcels of less than Zve acres (unless otherwise exempted as senior or lower

income housing). These forty-Zve units shall be added to the annual allocation pool set by the city council. The

number of units borrowed for projects of this type may be annually adjusted higher by the city council based on

information provided by the department of community development.

D. Should allocation requests fall short of available annual allocations, the city council may determine that a

supplementary allocation can be made. In making that determination, the council shall direct sta] to send out

notice of intent to develop forms immediately, to be returned by prospective developers by May 15th. The

supplementary allocation will be made by May 31st or the earliest available council meeting.

E. The city council shall grant allocations and reservations by resolution.

F. Any portion of the annual allocation pool left unallocated (i.e., allocations not granted to speciZc projects

through either the primary allocations process or the supplementary allocation process) shall not be carried over

and added to the total allocations available in the next succeeding calendar year, except that such allocations may

be added to future secondary allocation pools for special projects.

G. Should any project with allotments fail to either have its application deemed complete or achieve the

necessary approvals within the time frames set forth in Sections 17.26.070(F) and (G), those allotments shall be

forfeited and may be returned to the pool of available allotments for the next allocation period or to the

secondary allocation pool.

H. Allotments borrowed to accommodate projects of Zve acres or less but left unallocated may be returned to

the pool of available allotments for the next allocation period or to the secondary allocation pool.

The Petaluma Municipal Code is current through Ordinance 2916 NCS, passed December 1, 2025.

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I. The city council, when establishing the annual allocation pool, as described under Section 17.26.060, A, of this

chapter, may establish an annual allocation pool of less than Zve hundred for any given year based on Zndings of

fact demonstrating a detrimental impact with respect to the general plan or to the health, safety and welfare of

the citizens of Petaluma.

The city council shall adopt Zndings of fact when awarding part or none of the requested allocations to a speciZc

proposed project. Said Zndings of fact shall be based on the proposed projects ability to meet the annual

development objectives and general plan policies.

(Ord. 1841 NCS §§6, 8, 10, 1991; Ord. 1839 NCS §2, 1991; Ord. 1795 NCS §§5-7, 1990; Ord. 1716 NCS §1, 1988.)

A. All residential projects not exempted from the growth management system shall apply for and complete a

preliminary review process; preliminary review will be done by the department of community development.

B. Preliminary review includes analysis of: compliance with applicable provisions of general plan and zoning

ordinance, site compatibility, potential environmental impacts, and ability to satisfy established development

objectives.

C. The developer shall submit the following material as application for preliminary review: environmental impact

questionnaire; site plan showing lot sizes, layout, street pattern and public facilities and improvements; project

phasing; typical [oor plans and architecture; and any other data considered pertinent by the planning director.

D. Preliminary review applications will be accepted by the city any time.

E. At the completion of preliminary review, the developer will receive written notiZcation to proceed with

application for development approval (tentative map, rezoning, design review, etc.) and a determination as to the

extent of environmental review required.

F. All projects subject to the growth management system must have a complete application by December 31st

of the calendar year preceding the year for which allocations have been granted or said allocations shall be

forfeited.

G. Once an application has been deemed complete, a project must complete the development review process

and certiZcation of any environmental documents on or before December 31st of the year for which the

allotments have been granted or said allotments shall be forfeited.

H. For subsequent phases of a project with an approved tentative map, Znal map approval must be completed

(i.e., approved by resolution of the city council) on or before December 31st of the year for which allotments have

been granted or said allotments shall be forfeited.

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I. For subsequent phases of a residential project not requiring a land division, building permits must be issued

on or before December 31st of the year for which allotments have been granted or said allotments shall be

forfeited.

J. At its earliest available meeting in November of each year, commencing in 1989, the city council shall review

the status of projects with allocations for that year. The city council may, at its discretion, and with appropriate

Zndings, extend the December 31st deadline for project approval and forfeiture of allotments.

K. Projects completing the development review process within the appropriate time frame set forth above shall

be considered by the city to have exercised their allotments for that year.

(Ord. 1841 NCS §8, 1991; Ord. 1716 NCS §1, 1988.)

An applicant may appeal to the city council discretionary decisions of the department of community development

made pursuant to this chapter by Zling a written notice of appeal with the city clerk within fourteen calendar days

of the decision. The city clerk shall place the matter on an agenda for a regular meeting within two regularly

scheduled meetings, at which time the council will hear the applicant or his/her representative and such other

person or persons as may wish to testify before the council in the determination of the matter of an appeal. The

council may a\rm or modify the decision and its decision shall be Znal and conclusive. (Ord. 1841 NCS §8, 1991;

Ord. 1716 NCS §1, 1988.)