HomeMy WebLinkAboutItem 4 - GENP-0217-2020 (Housing Element Update)
PLANNING COMMISSION AGENDA REPORT
SUBJECT: Review of the 6th Cycle Housing Element Update
PROJECT ADDRESS: Citywide BY: Rachel Cohen, Associate Planner
Phone Number: (805) 781-7574
E-mail: rcohen@slocity.org
FILE NUMBER: GENP-0217-2020 & EID-0218-2020 FROM: Tyler Corey, Principal Planner
1.0 RECOMMENDATION
Adopt the attached Planning Commission resolution which recommends that the City Council amend
the Housing Element for updates associated with the 6th Cycle Housing Element Update and adopt
the Negative Declaration of Environmental Impact (Attachment 1).
2.0 SITE DATA
3.0 SUMMARY
Over the last year, the City of San Luis Obispo, as well as the County and other cities within the
County have been in the process of updating their Housing Elements based on the new 6th Cycle
Regional Housing Needs Allocation (RHNA) requirements from the State of California Department
of Housing and Community Development (HCD). The Housing Element has been updated in
response to input received through eight presentations, meetings, online surveys, and a public
workshop, as well as other correspondence over the past year.
On June 10, 2020, the Planning Commission reviewed and commented on proposed modifications to
Chapter 3 – Goals, Policies, and Programs - of the Housing Element. A complete version of the 6th
Cycle Draft Housing Element can be found on the City’s Housing Element website at:
https://www.slocity.org/government/department-directory/community-development/affordable-
housing/housing-element. Staff is proposing revisions to Chapter 3 of the Housing Element, which
sets housing policy and the City’s work program for the next eight years. This chapter contains new
Applicant City of SLO
Representative Rachel Cohen, Associate Planner
Zoning Citywide
General Plan Citywide
Site Area Citywide
Environmental
Status
Negative Declaration of
Environmental Impact
Meeting Date: July 22, 2020
Item Number: 4
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policies and programs, revised policies and programs, and policies and programs that are proposed to
remain without substantive changes. Additions or changes have been recommended where
appropriate to reflect the changing needs, resources, and conditions in the community, and to respond
to changes in housing law. Proposed changes are shown in Attachment 2 as a legislative draft matrix.
Additionally, in coordination with the County, all cities within the County, and San Luis Obispo
Council of Governments (SLOCOG), a new chapter (Chapter 4) is proposed to be added to the
Housing Element. Chapter 4 includes a regional vision and policies focused specifically on fostering
regional collaboration to plan and develop housing and supportive infrastructure (Attachment 3).
4.0 COMMISSION’S PURVIEW
The Planning Commission is responsible for reviewing proposed changes to the General Plan and for
making recommendations to the City Council under Government Code section §65353. The Planning
Commission has two primary roles in the Housing Element update process: 1) provide a forum for
public discussion and consensus building; 2) provide policy and program direction. The 6th Cycle
Draft Housing Element and associated environmental document must be considered by the Planning
Commission in at least one public hearing before final action can be taken on the item. The
Commission’s recommendation will then be forwarded to the City Council for final action on the
Housing Element.
5.0 PROJECT INFORMATION
State law establishes a schedule for cities and counties to periodically update their housing elements
of the General Plan. Under this schedule, the City’s Housing Element update is due December 2020.
As a part of this update, the City is required to develop programs designed to meet their share of the
surrounding region’s housing needs for all income groups, as determined by the region’s council of
governments. The Regional Housing Needs Allocation (RHNA) process ensures that each jurisdiction
accepts responsibility, within its physical and financial capability to do so, for the housing needs of
its residents and for those people who might reasonably be expected to move there. The City has been
allotted a RHNA of 3,354 housing units to plan for in the new 6th Cycle Housing Element. Based on
existing residential capacity, the City can accommodate the RHNA allocation for the planning period
(January 1, 2019 until December 31, 2028) without the need to rezone property.
The 6th Cycle Draft Housing Element Update and appendices (available at:
https://www.slocity.org/government/department-directory/community-development/affordable-
housing/housing-element)) includes information such as updated demographic and residential
capacity information, housing constraints and resources, and implementation. The core of the
Housing Element, however, falls under Chapter 3: Goal, Policies and Programs, which provides
direction and a plan for how the City will achieve the accommodation of 3,354 units as required by
HCD.
Chapter 3 of the Housing Element has been updated in response to input received through eight
presentations, meetings, online surveys, and a public workshop, as well as other correspondence over
the past year (see Section 6.0 below). At the June 10, 2020 Planning Commission meeting, staff
presented the Commission with both new and revised goals, policies and programs based on public
comment, the changing needs, resources, and conditions in the community, and state law. The
Planning Commission provided direction to staff regarding those changes. The Planning Commission
should review the proposed changes to Chapter 3 in response to community input and Commission
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direction and provide any additional comments or direction as appropriate as part of its
recommendation to City Council. Attachment 2 shows legislative changes in red, changes based on
Commission comments in blue, and changes based on community feedback are in green. Where
changes or new policies or programs are proposed, a brief description follows to explain how the
modification or addition better achieves housing goals or state requirements.
5.1 Planning Commission Direction
On June 10, 2020, the Planning Commission provided comments of support, as well as gave direction
on additional modifications to Chapter 3. Below is a summary of the Planning Commission’s
direction from the June 10, 2020 meeting and changes made in response. New language proposed is
shown in italics.
Policy 1.4: (New) Assist owners of older residences with information on ways to repair and upgrade
older structures to meet higher levels of building safety, efficiency, and sustainability. – This is a new
policy that staff added in response to Planning Commission’s comments regarding the older stock of
housing within the City. The new policy highlights the City’s partnership with homeowners to support
improvements to older residential structures.
Program 6.13: (Modified) The language “compatible with surrounding development” was added per
the recommendation by the Planning Commission. The policy now reads, “Consider General Plan
amendments to rezone commercial, manufacturing or public facility zoned areas for higher-density,
infill or mixed-use housing where compatible with surrounding development.”
Goal 7: The Planning Commission provided direction that Goal 7 should retain the language regarding
“neighborhood stability and owner occupancy.” Staff considered this direction and determined that
since the Housing Element supports both renter and owner-occupied housing units throughout all
neighborhoods within the City, Goal 7 should not specify tenure. Additionally, where projects
propose home ownership, Goal 10: Local Preference, outlines policies and programs to support local
home ownership. Therefore, no changes were made to Goal 7.
Policy 7.9: (New) Encourage neighborhood design elements that improve overall health of residents
such as providing safe and convenient opportunities to access food outlets and active places for
recreational exercise. – This policy has been added as recommended by the Planning Commission to
address public health and housing.
5.2 Community Feedback
Policy 8.9: (Modified) Based on community feedback, this policy was revised to highlight that
housing for persons with disabilities or aging in place should include amenities that support those
living within the units. The new policy now reads, “Encourage a variety of housing types that
accommodate persons with disabilities, and promote aging in place, and include amenities such as
visiting space, first floor accessibility, etc.”
5.3 Regional Vision for Housing – Chapter 4
San Luis Obispo County is a rural coastal county with seven cities and numerous unincorporated
communities that depend on collaborative relationships between and among government agencies,
community organizations, and residents to solve the region’s significant issues including inadequate
supply of affordable housing and resilient water, wastewater, and transportation infrastructure and
resources. In early 2020, local agencies adopted a San Luis Obispo Countywide Regional Compact
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to establish a united regional framework to unlock our potential to develop an adequate supply of
housing and infrastructure that support our economic prosperity.
The County and all seven Cities worked collaboratively to develop the region’s first Regional
Infrastructure and Housing Strategic Action Plan (Regional Plan) that identifies actions to address
these issues. A key component of the Regional Plan is the integration of efforts to address critical
housing and related infrastructure needs. As part of the Housing Element update process,
representatives of the County, seven Cities and San Luis Obispo Council of Governments (SLOCOG)
developed Chapter 4 (see Attachment 3, Draft Housing Element) to showcase the ongoing
commitment of each agency to this collaborative effort. Chapter 4 presents a regional vision and eight
policies focused specifically on fostering regional collaboration to plan and develop housing and
supportive infrastructure.
6.0 PUBLIC OUTREACH
Over the past year, the City facilitated eight presentations, meetings, online surveys, and a public
workshop.
• Public Forum and City Council Meeting – April 2, 2019
• Planning Commission Meeting – April 24, 2019
• Association of Realtors – July 23, 2019
• Housing Element Workshop – December 10, 2020
• Online Survey – December 10, 2019 – January 10, 2020
• Chamber of Commerce – April 2, 2020
• Economic Vitality Corporation and the Home Builders Association – May 13, 2020
• Online Survey – June 8, 2020 – June 24, 2020
• Planning Commission Meeting – June 10, 2020
Housing Element Online Survey – June 8, 2020 – June 24, 2020
The City provided an opportunity for the community to give feedback regarding the modifications to
Chapter 3 of the Housing Element. To allow full participation by the community, the City elected to
host an online survey in the place of an in-person public workshop during the COVID-19 restricted
activity period. Participants of the online survey were invited to provide input on the proposed
modifications to the goals, policies, and programs within the Housing Element Update. 337
individuals visited the survey and 78 individuals responded to the questions (this is equivalent to 3.9
hours of public comment at 3 minutes per response).
Question 1 stated, “Is there anything that was missed or needs to be modified?” Many of the
comments identified housing concepts that are included within several goals, policies, and programs
such as:
• Retain the goal of visitability in Policy 8.9
• Promote ADA/special needs housing
• Promote affordable senior housing projects
• Support high density housing developments
• Support local preference
The survey identified, for example, that Policy 8.9 should retain the goal of visitability. As noted in
Section 5.2 above, staff has proposed modifications to this policy that support amenities for those
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living within units designed for persons with disabilities or aging in place.
Question 2 asked, “Are there additional housing topics that should be considered?” Several concepts
were shared in response to this question and are shown below. These concepts are included in various
goals, policies, and programs. For example, Goal 7 addresses Neighborhood Quality and policies 7.3,
7.6, and 7.9 promote walkability, biking, access to schools, parks, grocery stores, places to exercise,
open space, and access to food outlets.
• Infrastructure planning (e.g. pedestrian, bicycle, improvements, etc.)
• Include amenities within housing developments such as: community gardens, common open
space, parks, car share programs, and edible landscaping.
• Affordable housing
• Senior housing
• Homeless/Transition housing
The last question of the survey was, “Do you have ideas regarding how to increase the production
and affordability of housing in the community?” This question is connected to the implementation of
the policies and programs over the course of the 6th Cycle Housing Element Update. Ideas that were
proposed are shown below. Staff will consider these concepts as they move forward with
implementation.
• Update Inclusionary Housing Ordinance
• Reduce setback requirements
• Pre-approved ADU plans
• Reduce parking requirements
• Higher density and taller buildings in Downtown
• Reduce fees
• Round all densities to the nearest 0.5
• Upzone each residential zone to the next highest density
7.0 ENVIRONMENTAL REVIEW
A Negative Declaration of Environmental Impact is recommended for the Housing Element Update
(Attachment 4). No potentially significant or significant impacts were identified. A Negative
Declaration is therefore recommended for adoption in accordance with CEQA Guidelines section
15063(b)(2): “The lead agency shall prepare a negative declaration if there is no substantial evidence
that the project or any of its aspects may cause a significant effect on the environment.” A 30-day
public comment period was opened on July 9, 2020. A Notice of Intent to Adopt was filed with the
County- Clerk Recorder and the State Clearing House.
8.0 ALTERNATIVES
8.1 Modify the Proposed 6th Cycle Housing Element. The Commission may modify the
proposed Housing Element. Specific direction should be given to staff regarding any
modifications.
8.2 Continue the review of the 6th Cycle Housing Element. An action to continue the item
should include direction to staff on pertinent issues.
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9.0 ATTACHMENTS
1. Draft Resolution - recommending that the City Council amend the Housing Element for
updates associated with the 6th Cycle Housing Element Update and adopt the Negative
Declaration of Environmental Impact.
2. Housing Element Chapter 3 Legislative Draft Matrix
3. Draft Housing Element (also available online with appendices at:
https://www.slocity.org/government/department-directory/community-
development/affordable-housing/housing-element)
4. Negative Declaration of Environmental Impact (also available online at:
https://www.slocity.org/government/department-directory/community-
development/documents-online/environmental-review-documents/-folder-2062)
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RESOLUTION NO. XXXX-20
A RESOLUTION OF THE SAN LUIS OBISPO PLANNING COMMISSION
RECOMMENDING THE CITY COUNCIL ADOPT A NEGATIVE
DECLARATION OF ENVIRONMENTAL IMPACT AND AMENDMENTS
TO THE HOUSING ELEMENT OF THE GENERAL PLAN AS
REPRESENTED IN THE PLANNING COMMISSION AGENDA REPORT
AND ATTACHMENTS DATED
JULY 22, 2020 (GENP-0217-2020 & EID-0218-2020)
WHEREAS, State law requires cities and counties to adopt a general plan. The General
Plan includes nine required elements, one of which is the Housing Element. The Housing Element
must be updated every eight (8) years or as otherwise provided by State law; and
WHEREAS, the City’s General Plan Housing Element was last updated on January 20,
2015 in compliance with State law; and
WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a web
based public hearing, on June 10, 2020 for the purpose of considering modifications to the Housing
Element’s goals, policies and programs; and
WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a web
based public hearing, on July 22, 2020, for the purpose of considering the Negative Declaration of
Environmental Impact and amendments to the Housing Element of the General Plan to address the
changing needs, resources and conditions in the community, as required by State law ; and
WHEREAS, said public hearing was for the purpose of formulating and forwarding
recommendations to the City Council of the City of San Luis Obispo regarding the project; and
WHEREAS, notices of said public hearing were made at the time and in the manner
required by law; and
WHEREAS, the Planning Commission has duly considered all evidence, including the
testimony of the applicant, interested parties, and the evaluation and recommendations by staff,
presented at said hearing.
NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of San
Luis Obispo as follows:
Section 1. Findings. Based upon all the evidence, the Commission makes the following
findings:
1. The proposed amendments included in the draft Housing Element are consistent with other
land use goals and policies of the General Plan.
2. The proposed amendments are appropriate and necessary to ensure that the City’s Housing
Element meets State law and the changing needs, resources, and conditions in the
community.
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Planning Commission Resolution No. XXXX-20
6th Cycle Housing Element – GENP-0217-2020 & EID-0218-2020
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3. Achieving Housing Element State certification will promote affordable housing
opportunities and help achieve adopted housing goals by making the City eligible for
various housing grants and financial incentives, and will foster cooperation among local
and state agencies in addressing an urgent need for affordable housing in the City.
Section 2. Environmental Review. The Planning Commission does hereby recommend
the City Council adopt a Negative Declaration of Environmental Impact in accordance with CEQA
Guidelines section 15063(b)(2): “The lead agency shall prepare a negative declaration if there is
no substantial evidence that the project or any of its aspects may cause a significant effect on the
environment.”
Section 3. Action. The Planning Commission does hereby recommend the City Council
adopt the proposed amendments to the Housing Element of the General Plan dated July 22, 2020,
which is incorporated herein by reference.
On motion by__________________________, seconded by________________________ and on
the following roll call vote:
AYES:
NOES:
REFRAIN:
ABSENT:
The foregoing resolution was passed and adopted this day of adopted this 22nd day of July, 2020.
_____________________________
Tyler Corey, Secretary
Planning Commission
ATTACHMENT 1Item 4
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Attachment 2: Housing Element Chapter 3 Legislative Draft Matrix
The matrix below provides a legislative draft of Housing Element Chapter 3: goals, polices, and
programs. Each modification is shown in red; modifications based on Planning Commission
direction and public comment are shown in blue. Policies are highlighted in gray.
# New # Goals Policy/Program Reason for Modification
Goal 1 - Safety: Provide safe, decent shelter for all residents.
1.1 1.1 Safety Assist those citizens unable to obtain safe shelter
on their own.
1.2 1.2 Safety Support and inform the public about fair housing
laws and programs that allow equal housing
access for all city residents.
1.3 1.3 Safety Maintain a level of housing code enforcement
sufficient to correct unsafe, unsanitary or illegal
conditions and to preserve the inventory of safe
housing, consistent with City Council’s code
enforcement priorities.
Updated to be consistent with current
code enforcement priorities.
1.4 Safety Assist owners of older residences with
information on ways to repair and upgrade older
structures to meet higher levels of building safety,
efficiency, and sustainability.
Per Planning Commission (PC)
comments on June 10, 2020, staff is
recommending a new policy that
supports improvements to older
residential structures.
1.4 1.5 Safety Correct unsafe, unsanitary or illegal housing
conditions, improve accessibility and energy
efficiency and improve neighborhoods by
Rehabilitate using Federal, State and local
housing funds, such as Community Development
Block Grant Funds, with the objectives of 30
single-family, 75 multi-family, 10 historic, and
20 mobile homes for extremely low, very low,
low and moderate income homeowners and
renters during the planning period.
Added language from Program 3.9.
The RHNA provides the objectives
for the 6th Cycle Housing Element.
1.5 1.6 Safety Continue code enforcement to expedite the
removal of illegal or unsafe dwellings, to
eliminate hazardous site or property conditions,
and resolve chronic building safety problems.
1.6 ----- Safety Consider a Rental Inspection Program to improve
the condition of the City’s Housing Stock.
In May 2015 the City Council adopted
the Rental Housing Inspection
Ordinance. In March 2017 the City
Council voted to repeal the ordinance.
1.7 1.7 Safety Continue to support local and regional solutions
to homelessness by funding supportive programs
services, and housing solutions. such as the
Maxine Lewis Memorial Shelter and The Prado
Day Center.
Maxine Lewis Memorial Shelter and
the Prado Day Center are now housed
within the 40 Prado Homeless Service
Center.
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# New # Goals Policy/Program Reason for Modification
1.8 ----- Safety Create an educational campaign for owners of
older residences informing them of ways to
reduce the seismic hazards commonly found in
such structures and encouraging them to
undertake seismic upgrades.
Unreinforced masonry buildings have
been retrofitted to meet current
building code requirements. Proactive
education is complete because no
additional structures need seismic
retrofits. Although complete, staff
will continue to have information
available regarding seismic hazards
for those community members
interested in further education.
Goal 2 - Affordability: Accommodate affordable housing production that helps meet the City’s quantified objectives.
2.1 2.1 Affordability Income Levels For Affordable Housing
households. For purposes of this Housing
Element, affordable housing is that which is
obtainable by a household with a particular
income level, as further described in the City’s
Affordable Housing Standards. Housing
affordable to Extremely Low, Very Low, Low,
and Moderate income persons or households
shall be considered “deed-restricted affordable
housing.” Income levels are defined as follows:
❑ Extremely low 30% or less of County Area
median household income
❑ Very low: 31 to 50% of County Area median
household income.
❑ Low: 51% to 80% of County Area median
household income.
❑ Moderate: 81% to 120% of County Area
median household income.
❑ Above moderate: 121% or more of County
Area median household income.
2.2 2.2 Affordability Index of Affordability. The Index of
Affordability shall be based on the City’s
Affordable Housing Standards, updated annually
per the County of San Luis Obispo’s Area
Median Income determined by California
Department of Housing and Community
Development. whether the monthly cost of
housing fits within the following limits:
For extremely low income households, not more
than 25% of monthly income.
For very low- and low-income households, not
more than 25% of monthly income.
For moderate income households, not more than
30% of monthly income.
For above-moderate income households, no
index.
These indices may be modified or expanded if the
State of California modifies or expands its
definition of affordability for these income
groups.
Updated the policy to have the ability
to remain consistent with
standardized County data.
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# New # Goals Policy/Program Reason for Modification
2.3 2.3 Affordability For housing to qualify as “deed-restricted
affordable” under the provisions of this Element,
guarantees must be presented that ownership or
rental housing units will remain affordable for the
longest period allowed by State law, or for a
shorter period under an equity-sharing or housing
rehabilitation agreement with the City.
The Equity Share Program has a 45-
year deed restriction if an owner does
not choose to exercise the equity share
option.
2.4 2.4 Affordability Encourage housing production for all financial
strata of the City's population, as allocated in the
proportions shown in the Regional Housing
Needs Allocation, for the 2014 – 2019 6th cycle
planning period. The number of units per income
category are These proportions are: extremely
low and income /, 12 percent, very low income,
12 percent 825 units; low income, 16 percent 520
units; moderate income, 18 percent 604 units; and
above moderate income, 42 percent 1,405 units.
Updated with the new RHNA under
the 6th Cycle Housing Element.
2.5 2.5 Affordability Continue to manage the Affordable Housing
Fund so that the fund serves as a sustainable
resource for supporting affordable housing
development. The fund shall serve as a source of
both grant funding and below market financing
for affordable housing projects; and funds shall
be used to support a wide variety of housing types
at the following income levels: extremely low,
very low, low, and moderate, but with a focus on
production efficiency to maximize housing
benefits for the City’s financial investment, and
to support high quality housing projects that
would not be feasible without Affordable
Housing Fund support.
2.6 2.6 Affordability Continue to review existing and proposed
building, planning, engineering and fire policies
and standards as housing developments are
reviewed to determine whether changes are
possible that could assist the production of
affordable housing, or that would encourage
preservation of housing rather than conversion to
non-residential uses, provided such changes
would not conflict with other General Plan
policies. Such periodic reviews will seek to
remove regulations that have been superseded,
are redundant or are no longer needed.
2.7 2.7 Affordability Continue to prioritize implement existing
procedures that speed up the processing of
applications, construction permits, and water and
sewer service priorities for affordable housing
projects. City staff and commissions shall give
such projects priority in allocating work
assignments, scheduling, conferences and
hearings. and in preparing and issuing reports and
water and sewer service allocations.
Updated language to be consistent
with City policies and processes.
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# New # Goals Policy/Program Reason for Modification
2.8 ----- Affordability Continue to pursue outside funding sources for
the payment of City impact fees so that new
dwellings that meet the City’s affordable housing
standards can mitigate their facility and service
impacts without adversely affecting housing
affordability.
Reductions have been built into the
new fee structure that was approved as
a part of AB 1600 in 2018.
2.9 ----- Affordability To the extent outside funding sources can be
identified to offset impacts on City funds, exempt
dwellings that meet the moderate income,
Affordable Housing Standards from planning,
building and engineering development review
and permit fees, including water meter
installation fee. Maintain exemptions for
extremely-low, very-low and low-income
households.
Reductions have been built into the
new fee structure that was approved as
a part of AB 1600 in 2018.
2.10 2.8 Affordability Continue to coordinate public and private sector
actions to encourage the development of housing
that meets the City’s housing needs.
2.11 2.9 Affordability Continue to assist with the issuance of bonds, tax
credit financing, loan underwriting or other
financial tools to help develop or preserve
affordable units through various programs.
including, but not limited to: (1) below market
financing through the SLO County Housing Trust
Fund and (2) subsidized mortgages for extremely
low, very-low, low- and moderate income
persons and first-time home buyers, and (3) self-
help or “sweat equity” homeowner housing.
Eliminating the examples allows for
more opportunities and flexibility to
fund affordable housing
opportunities.
2.12 2.10 Affordability Consider updating the Affordable Housing
Standards to include incorporating Homeowners’
Association (HOA) fees and a standard allowance
for utilities in the calculation for affordable rents
and home sales prices.
Added language based on findings
and recommendations from the 2020
Affordable Housing Nexus Study.
2.13 2.11 Affordability In conjunction with the Housing Authority and
other local housing agencies, continue to provide
on-going technical assistance and education to
tenants, property owners and the community at
large on the need to preserve at-risk units as well
as the available tools to help them do so.
2.14 2.12 Affordability In conjunction with local housing providers and
the local residential design community, continue
to Continue to provide technical assistance
planning services as requested by the public,
builders, design professionals and developers
regarding design strategies to achieve affordable
housing and density bonuses.
Updated language to be consistent
with City policies and processes.
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# New # Goals Policy/Program Reason for Modification
2.15 2.13 Affordability Update the Inclusionary Housing Ordinance,
including Table 2A, based on findings and
recommendations in the 2020 Affordable
Housing Nexus Study and conduct further
feasibility analysis in order to Eevaluate the
Inclusionary Housing Ordinance requirements
and the effect of Table 2A on the City’s ability to
provide affordable housing in the proportions
shown in the Regional Housing Needs
Allocation, per Policy 2.4.
Added language based on findings
and recommendations from the 2020
Affordable Housing Nexus Study.
2.16 ----- Affordability The City will evaluate and consider including a
workforce level of affordability in its Affordable
Housing Standards to increase housing options in
the City for those making between 121 percent
and 160 percent of the San Luis Obispo County
median income. This affordability category
cannot be used to meet inclusionary housing
ordinance requirements and is not eligible for
City Affordable Housing Funds.
Creating a workforce level of
affordability was examined and found
that it could not be successfully
implemented on a citywide basis as
there are no existing State standards
for such an income level.
2.17 2.14 Affordability Continue to consider support increasing
residential densities above state density bonus
allowances for projects that provide housing for
extremely low, very low and extremely low
income households.
Reordered wording.
2.15 Affordability Evaluate a flexible density pilot program and
initiate an update of the Zoning Regulations and
Community Design Guidelines to incorporate
flexible density development options in
Downtown and portions of Upper Monterey and
Mid-Higuera Special Focus Areas to support the
production of smaller residential units (150 to
600 square feet).
This program was recommended in
part by input from the community and
the work program associated with the
Housing Major City Goal. The
community and Council identified
that the Downtown and portions of
Upper Monterey and Mid-Higuera
Special Focus Areas could be
appropriate for higher density housing
development.
Goal 3 - Housing Conservation: Conserve existing housing and prevent the loss of safe housing and the displacement
of current occupants.
3.1 3.1 Housing
Conservation
Continue to encourage the rehabilitation,
remodeling or relocation of sound or rehabitable
housing rather than demolition. Demolition of
non-historic housing may be permitted where
conservation of existing housing would preclude
the achievement of other housing objectives or
adopted City goals.
3.2 3.2 Housing
Conservation
Discourage the removal or replacement of
housing affordable to extremely low, very-low,
low- and moderate income households, and avoid
permit approvals, private development,
municipal actions or public projects that remove
or adversely impact such housing unless such
actions are necessary to achieve General Plan
objectives and: (1) it can be demonstrated that
rehabilitation of lower-cost units at risk of
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# New # Goals Policy/Program Reason for Modification
replacement is financially or physically
infeasible, or (2) an equivalent number of new
units comparable or better in affordability and
amenities to those being replaced is provided, or
(3) the project will correct substandard, blighted
or unsafe housing; and (4) removal or
replacement will not adversely affect housing
which is already designated, or is determined to
qualify for designation as a historic resource.
3.3 ----- Housing
Conservation
Encourage seismic upgrades of older dwellings to
reduce the risk of bodily harm and the loss of
housing in an earthquake.
All multi-family structures have been
retrofitted and single-family
residences are exempt from seismic
retrofits. Additionally, any upgrades
to older residential structures is now
covered in the proposed new Policy
1.4.
3.4 3.3 Housing
Conservation
Encourage the construction, preservation,
rehabilitation or expansion of residential hotels,
group homes, integrated community apartments,
and single-room occupancy dwellings.
3.5 3.4 Housing
Conservation
Preserve historic homes and other types of
historic residential buildings, historic districts
and unique or landmark neighborhood features.
3.6 ----- Housing
Conservation
Preserve the fabric, amenities, yards (i.e.
setbacks), and overall character and quality of life
of established neighborhoods.
Moved to Goal 7: Neighborhood
Quality & Design and is now Policy
7.9.
3.7 3.5 Housing
Conservation
Encourage and support creative strategies for the
rehabilitation and adaptation and reuse of
residential, commercial, and industrial structures
for housing.
3.8 ----- Housing
Conservation
Adopt an ordinance that implements policy 3.2 to
discourage removal or replacement of affordable
housing.
Affordable housing units are
protected by the State of California
Housing Accountability Act, SB 330
(see Policy 3.2), and the “no net loss”
requirements of SB 166. An
ordinance is no longer required.
3.9 ----- Housing
Conservation
Correct unsafe, unsanitary or illegal housing
conditions, improve accessibility and energy
efficiency and improve neighborhoods by
collaborating with agencies offering
rehabilitation programs. City will use State or
Federal grants or other housing funds to
implement the program and provide services such
as home weatherization, repair and universal
access improvements.
Consolidated this program by adding
the first sentence to Policy 1.4 which
provides a broader context to support
all housing including the preservation
of existing housing.
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# New # Goals Policy/Program Reason for Modification
3.10 3.7 Housing
Conservation
Continue to encourage the creation of dwellings
in the Downtown Core (C-D Zone) and the
Downtown Planning Area by continuing the "no
net housing loss" program, consistent with
Chapter 17.86 17.142 (Downtown Housing
Conversion Regulations) of the Zoning
Regulations.
Updated to be consistent with Zoning
Regulations update.
3.11 3.8 Housing
Conservation
Continue to identify residential properties and
districts eligible for local, State or Federal
historic listing in accordance with guidelines and
standards to help property owners repair,
rehabilitate and improve properties in a
historically and architecturally sensitive manner.
3.12 3.9 Housing
Conservation
Continue to monitor and track affordable housing
units at-risk of being converted to market rate
housing annually. Provide resources to support
the Housing Authority, and local housing
agencies, purchase and manage at-risk units.
3.13 3.10 Housing
Conservation
Working with non-profit organizations, faith-
based organizations, or the Housing Authority of
the City of San Luis Obispo, the City will
encourage rehabilitation of residential,
commercial or industrial buildings to expand
extremely low, very-low, low or moderate
income rental housing opportunities.
Goal 4 - Mixed-Income Housing. Preserve and accommodate existing and new mixed income neighborhoods and seek
to prevent neighborhoods or housing types that are segregated by economic status.
4.1 4.1 Mixed-Income
Housing
Within newly developed neighborhoods, housing
that is affordable to various economic strata
should be intermixed rather than segregated into
separate enclaves. The mix should be comparable
to the relative percentages of extremely low,
very-low, low, moderate and above-moderate
income households in the City’s quantified
objectives.
4.2 4.2 Mixed-Income
Housing
Include both market-rate and affordable units in
apartment and residential condominium projects
and intermix the types of units. Affordable units
should be comparable in size, appearance, and
basic quality to market-rate units.
4.3 4.3 Mixed-Income
Housing
Extremely-low and very low-income housing,
such as that developed by the Housing Authority
of the City of San Luis Obispo or other housing
providers, may be located in any zone that allows
housing, and should be dispersed throughout the
City rather than concentrated in one
neighborhood or zone.
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4.4 4.4 Mixed-Income
Housing
In its discretionary actions, housing programs and
activities, the City shall affirmatively further fair
housing and promote equal housing opportunities
for persons of all economic segments of the
community.
4.5 4.5 Mixed-Income
Housing
Review new development proposals for
compliance with City regulations and revise
projects or establish conditions of approval as
needed to implement the mixed-income policies.
4.6 4.6 Mixed-Income
Housing
Consider aAmending the City’s Inclusionary
Housing Ordinance and Affordable Housing
Incentives to require that affordable units in a
development be of similar size, number of
bedrooms, character and basic quality as the
nonrestricted units in locations that avoid
segregation of such units including equivalent
ways to satisfy the requirement. Also evaluate
adjusting the City’s allowable sales prices for
deed-restricted affordable units per a variety of
unit types.
Added language based on findings
and recommendations from the 2020
Affordable Housing Nexus Study.
Goal 5 - Housing Variety and Tenure. Provide variety in the location, type, size, tenure, and style of dwellings.
5.1 ----- Housing
Variety
Encourage the integration of appropriately
scaled, special needs housing into developments
or neighborhoods of conventional housing.
AB 101 allows this type of housing in
all zones and there is limited ability
control scale and design.
5.2 5.1 Housing
Variety
Encourage mixed-use residential/commercial
projects in all commercial zones, especially those
close to activity centers. to include live-work and
work-live units where housing and offices or
other commercial uses are compatible.
Combined with Policy 5.3 to form one
policy that encourages mixed-use
development, consistent with the
Zoning Regulations update which no
longer identifies live/work or
work/live units separately from
mixed-use.
5.3 ----- Housing
Variety
Encourage the development of housing above
ground-level retail stores and offices to provide
housing opportunities close to activity centers
and to use land efficiently.
See above.
5.4 5.2 Housing
Variety
New planned In general, housing developments
of twenty (20) or more units should provide a
variety of dwelling types, sizes and styles or
forms of tenure.
5.3 Housing
Variety
Encourage the development of a variety of
“missing middle” housing types.
This new policy is based on
community feedback and the work
program associated with the Housing
Major City Goal to address the need
for more housing. Missing middle
housing types include duplexes,
triplexes, quadplexes, cottages, etc.
Policy 5.4 also replaces Program 2.16
which discusses workforce housing.
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# New # Goals Policy/Program Reason for Modification
5.5 ----- Housing
Variety
Review new developments for compliance with
City regulations and revise projects or establish
conditions of approval as needed to implement
the housing variety and tenure policies.
Updated language to be consistent
with City policies and processes.
5.4 Housing
Variety
Evaluate opportunities for promoting “missing
middle” housing types (e.g. duplex, triplex,
quadplex, cottages, etc) to increase housing
options in the City.
New program to implement new
Policy 5.3.
5.5 Housing
Variety
Consider amending the Zoning Regulations to
streamline the permitting process for mixed-used
projects in commercial zones.
Goal 6 - Housing Production. Plan for Facilitate the production of new housing to meet the full range of community
housing needs.
6.1 6.1 Housing
Production
Consistent with the growth management portion
of its Land Use Element and the availability of
adequate resources, the City will plan to
accommodate up to 3,354 dwelling units for the
6th cycle housing element update in accordance
with the assigned Regional Housing Needs
Allocation.1,144 dwelling units between January
2014 and June 2019 in accordance with the
assigned Regional Housing Needs Allocation.
Updated to be consistent with the 6th
Cycle RHNA.
6.2 ---- Housing
Production
New commercial developments in the Downtown
Core (C-D Zone) shall include housing, unless
the City makes one of the following findings:
Housing is likely to jeopardize the health, safety
or welfare of residents or employees; or
The property’s shape, size, topography or other
physical factor makes construction of new
dwellings infeasible.
Updated to be consistent with Zoning
Regulations update. The Zoning
Regulations require housing as a part
of any development within the
downtown.
6.3 6.2 Housing
Production
If City services must be rationed to development
projects, residential projects will be given priority
over non-residential projects. As required by SB
1087, Housing affordable to lower income
households will be given first priority.
6.4 6.3 Housing
Production
City costs of providing services to housing
development will be minimized. Other than for
existing housing programs encouraging housing
affordable to extremely low, very-low and low
income persons, the City will not make new
housing more affordable by shifting costs to
existing residents.
6.5 6.4 Housing
Production
When sold, purchased, or redeveloped for public
or private uses, City-owned properties within the
urban reserve shall include housing as either a
freestanding project or part of a mixed-use
development where land is suitable and
appropriate for housing.
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# New # Goals Policy/Program Reason for Modification
6.6 ----- Housing
Production
Property located behind the former County
General Hospital shall be designated a “Special
Considerations” zone and may be considered
suitable for residential development after further
analysis and environmental review, provided that
development be limited to site areas with average
slopes of less than 20 percent, that approximately
one-half of the total site area be dedicated for
open space and/or public use, and that an
additional water tank be provided if determined
necessary to serve new development.
Completed as a part of the LUE
update as part of the special focus
areas section; Program 8.6. General
Hospital Site.
6.7 6.5 Housing
Production
Support the redevelopment of excess public and
private utility properties for housing where
appropriately located and consistent with the
General Plan.
6.8 6.6 Housing
Production
Consistent with the City’s goal to stimulate
higher density infill where appropriate in the
Downtown Core (C-D Zone), Upper Monterey,
and Mid-Higuera Special Focus Areas,, the City
shall consider changes to the Zoning Regulations
that would allow for flexible density standards
that support the development of smaller
apartments and efficiency units.
This policy was updated to encourage
additional residential units not only in
Downtown, but in Upper Monterey
and Mid-Higuera Special Focus Areas
consistent with the City’s Major City
Goal work program and new Program
2.15.
6.9 6.7 Housing
Production
Encourage and support employer/employee
financing programs and partnerships to increase
housing opportunities specifically targeted
towards the local workforce.
Revised language allows for more
flexibility and creativity to implement
the policy.
6.10 6.8 Housing
Production
To help meet the 6th cycle RHNA production
targets Quantified Objectives, the City will
support residential infill development and
promote higher residential density where
appropriate.
Updated to be consistent with the 6th
Cycle RHNA.
----- 6.9 Housing
Production
Specific plans for any new area identified shall
include R-3 and R-4 zoned land to ensure
sufficient land is designated at appropriate
densities to accommodate the development of
extremely low-, very low- and low-income
dwellings.
Converted Program 6.14 into a policy.
6.11 6.10 Housing
Production
Maintain the General Plan and Residential
Growth Management Regulations (SLOMC
17.88144) exemption for new housing in the
Downtown Core (C-D zone), accessory dwelling
units (ADUs), and new housing in other zones
that is enforceably for deed-restricted for
extremely-low, very low, low- and moderate
income households, pursuant to the Affordable
Housing Standards.
Updated to be consistent with Zoning
Regulations update.
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# New # Goals Policy/Program Reason for Modification
6.12 6.11 Housing
Production
Continue to allow flexible parking regulations for
housing development, especially in the
Downtown Core (C-D Zone), including the
possibilities of flexible use of city parking
facilities by Downtown residents, where
appropriate, and reduced or no parking
requirements where appropriate guarantees limit
occupancies to persons without motor vehicles or
who provide proof of reserved, off-site parking.
Such developments may be subject to
requirements for parking use fees, use limitations
and enforcement provisions.
6.13 6.12 Housing
Production
Continue to develop incentives to encourage
additional housing in the Downtown, Upper
Monterey, and Mid-Higuera Special Focus Areas
Downtown Core (C-D Zone), particularly in
mixed-use developments. Density based on
flexible density average unit size in a project
should be explored to encourage the development
of smaller efficiency units.
Modified to be consistent with Policy
6.6.
6.14 ---- Housing
Production
Specific plans for any new expansion area
identified shall include R-3 and R-4 zoned land
to ensure sufficient land is designated at
appropriate densities to accommodate the
development of extremely low, very-low and low
income dwellings. These plans shall include sites
suitable for subsidized rental housing and
affordable rental and owner-occupied dwellings,
and programs to support the construction of
dwellings rather than payment of in-lieu housing
fees. Such sites shall be integrated within
neighborhoods of market-rate housing and shall
be architecturally compatible with the
neighborhood.
Converted to Policy 6.9.
6.15 6.13 Housing
Production
Consider General Plan amendments to rezone
commercial, manufacturing or public facility
zoned areas for higher-density, infill or mixed-
use housing where compatible with surrounding
development land development patterns are
suitable and where impact to Low-Density
Residential areas is minimal. For example, areas
to be considered for possible rezoning include,
but are not limited to the following sites:
A. Portions of South Broad Street Corridor and
Little Italy area
B. 1499 San Luis Drive (rezone vacant and
underutilized School District property)
C. 1642 Johnson Avenue (vacant School
District property)
D. 4325 South Higuera Street (former P.G.&E.
yard)
E. 4355 Vachell Lane (vehicle storage)
Updated to remove sites that have
been developed and added new sites
that may be considered for additional
housing development.
New language added per the
recommendation of the PC at the June
10, 2020 meeting.
ATTACHMENT 2Item 4
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# New # Goals Policy/Program Reason for Modification
F. 173 Buckley Road (Avila Ranch)
G. 2143 Johnson Avenue (adjacent to County
Health Department)
H. 3710 Broad Street (Plumbers and
Steamfitters Union)
I. 11950 Los Osos Valley Road (Pacific Beach
High School)
J. 2500 Block of Boulevard Del Campo
(adjacent to Sinsheimer Park)
K. 12165 & 12193 Los Osos Valley Road
(adjacent to Home Depot)
L. 1150 & 1160 Laurel Lane (Atoll Business &
Technology Center)
M. 600 Tank Farm Road (Temporary
Unimproved Parking Area)
6.16 6.14 Housing
Production
Continue to provide resources that support the
SLO County Housing Trust fund’s efforts to
provide below market financing and technical
assistance to affordable housing developers as a
way to increase affordable housing production in
the City of San Luis Obispo.
6.17 6.15 Housing
Production
Encourage residential development through infill
development and densification within City Limits
and in designated expansion areas over new
annexation of land.
6.18 6.16 Housing
Production
Seek opportunities with other public and private
agencies to identify excess, surplus, ans
underutilized parcels for residential development.
and public utilities to identify, assemble, develop,
redevelop and recycle surplus land for housing,
and to convert vacant or underutilized public,
utility or institutional buildings to housing.
Consistent with new State law.
6.19 6.17 Housing
Production
Continue to incentivize affordable housing
development consistent with SLOMC
(Affordable Housing Incentives). with density
bonuses, parking reductions and other
development incentives, including City financial
assistance.
Simplified as the requirements are
outlined in the City’s Municipal
Code. Reference to City financial
assistance was removed because it is
not a “development incentive.”
6.20 6.18 Housing
Production
Continue to financially assist in the development
of housing affordable to extremely low, very-low,
low- or and moderate income households during
the planning period using State, Federal and local
funding sources, with funding priority given to
projects that result in the maximum housing
benefits for the lowest household income levels.
6.21 6.19 Housing
Production
Actively seek new revenue sources, including
State, Federal and private/non-profit sources, and
financing mechanisms to assist with development
of affordable housing affordable to development
for extremely low, very low and low or moderate
income households and first- time homebuyers.
ATTACHMENT 2Item 4
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# New # Goals Policy/Program Reason for Modification
6.22 ---- Housing
Production
Continue to exempt the rehabilitation or
remodeling of up to 4 dwellings of up to 1200
square feet each from Architectural Review
Commission review. New multi-unit housing
may be allowed with “Minor or Incidental” or
staff level architectural review, unless the
dwellings are located on a sensitive or historically
sensitive site.
Implemented. Section 17.106.030 has
been added to the 2018 Zoning
Regulations update which references
SLOMC Chapter 2.48 that includes
language that exempts the
rehabilitation or remodeling of up to 4
dwellings of up to 1,200 square feet
each from Architectural Review
Commission review.
6.23 ----- Housing
Production
Assist in the production of affordable housing by
identifying vacant or underutilized City-owned
property suitable for housing, and dedicate public
property, where feasible and appropriate for such
purposes, as development projects are proposed.
Implemented. Staff completed an
inventory of City-owned property and
found that no City-owned properties
are suitable for housing.
6.24 ----- Housing
Production
Community Development staff will proactively
provide information for properties suitable for
housing as identified in the Land Use and
Housing Elements.
Implemented. Staff actively provides
information regarding any land
identified in the Housing Element or
the Land Use Element that may be
suitable for housing development
possibilities.
6.25 ----- Housing
Production
Evaluate and consider amending the General Plan
to designate the 46 acres associated with the
former County General Hospital as a “Special
Considerations” zone, suitable for housing
development on areas of the site of less than 20
percent average slope, provided that open space
dedication and public improvements are part of
the project.
Completed. The Land Use Element
was updated in 2015 to include
Program 8.6 which identified the
General Hospital site as a Special
Planning Area.
6.26 6.20 Housing
Production
Continue to update the Affordable Housing
Incentives (Chapter 17.90140, SLOMC) and
Zoning Regulations to ensure density bonus
incentives are consistent with State Law.
Updated to be consistent with Zoning
Regulations update.
6.27 ----- Housing
Production
Evaluate and consider increasing the residential
density allowed in the Neighborhood-
Commercial (C-N), Office (O) and Downtown
Commercial (C-D) zoning districts. The City will
evaluate allowing up to 24 units per acre in the C-
N and O zones, and up to 72 units per acre in the
C-D zone, twice the current density allowed in
these areas.
A detailed analysis of increasing the
residential density allowed in various
zoning districts was considered and
evaluated as a part of the zoning
update and determined that it would
need to be part of a larger update to
the Land Use Element (LUE) and
require additional environmental
review.
6.28 ----- Housing
Production
Evaluate how lot patterns (i.e. size, shape, slope)
in the City’s multi-family zones affect the City’s
ability to meet housing production policies. If
warranted, consider setting a minimum number
of dwellings on each legal lot in the R-2, R-3 and
R-4 zones, regardless of lot size, when other
property development standards, such as parking,
height limits and setbacks can be met.
Implemented. In 2018 the Zoning
Regulations were updated to include
minimum number of dwellings on
each legal lot in the R-2, R-3 and R-4
zones, regardless of lot size as long as
the development can meet all property
development standards, such as
parking, height limits and setbacks.
ATTACHMENT 2Item 4
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# New # Goals Policy/Program Reason for Modification
6.29 ----- Housing
Production
Continue to pursue incentives to encourage
development of Secondary Dwelling Units
(SDUs). Possible incentives include SDU design
templates, flexible development standards, fee
reductions or deferrals, or other measures to
encourage the construction of SDUs where
allowed by zoning.
Implemented. The City updated the
Zoning Regulations in 2018 and 2020
to be consistent with State law
regarding SDUs (now called ADUs –
Accessory Dwelling Units). In
addition, the City has also eliminated
impact fees requirements for ADUs.
6.30 6.21 Housing
Production
Evaluate and consider updating adopting the
Subdivision and Zoning Regulations changes to
support small lot subdivisions, ownership
bungalow court development Eliminate the one
acre minimum lot area for PD overlay zoning,
and other alternatives to conventional subdivision
design.
The Zoning Regulations were updated
in 2018 and included a revision to the
PD overlay zoning to allow a
minimum of one-half of a contiguous
acre for a PD (as opposed to a one acre
minimum).
6.31 ----- Housing
Production
Consider scaling development impact fees for
residential development based on size, number of
bedrooms, and room counts.
Completed as a part of the AB 1600
and fee schedule update.
6.32 6.22 Housing
Production
Continue to submit annual the Housing Element
Annual Progress Reports (APR) to the State
Department of Housing and Community
Development and the Governor’s Office of
Planning and Research on or before April 1st of
each year for the prior calendar year, pursuant to
per Government Code Section 65400.
Goal 7 - Neighborhood Quality. Maintain, preserve and enhance the quality of neighborhoods. encourage neighborhood
stability and owner occupancy, and improve neighborhood appearance, function and sense of community.
Modified to provide focus on neighborhood quality, amenities, and access and less on specific tenure. Where projects propose
home ownership, Goal 10: Local Preference, outlines policies and programs to support local home ownership.
7.1 7.1 Neighborhood
Quality
Within established neighborhoods, new
residential development should shall be of
compatible design character, size, density and
quality that respects the existing neighborhood
character, to enhance and maintains the quality of
life for existing and future residents.
Reworded for consistency with state
law.
7.2 7.2 Neighborhood
Quality
Higher density housing should maintain high
quality standards for unit design, privacy,
security, on-site amenities, and public and private
open space. Such standards should be flexible
enough to allow innovative design solutions. in
special circumstances, e.g. in developing mixed-
use developments or in housing in the Downtown
Core.
7.3 ----- Neighborhood
Quality
Within established neighborhoods, housing
should not be located on sites designated in the
General Plan for parks or open space.
Covered by polices within the
Conservation and Open Space
Element and the Land Use Element.
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# New # Goals Policy/Program Reason for Modification
7.4 7.3 Neighborhood
Quality
Within expansion areas, New residential
developments should incorporate be an integral
part of an existing neighborhood or should
establish a new neighborhood, with pedestrian
and bicycle linkages that provide direct,
convenient and safe access to adjacent
neighborhoods, schools, parks, and shopping
areas.
The City no longer has any areas that
are considered “expansion areas.” The
Policy should apply to all new
residential projects.
7.5 7.4 Neighborhood
Quality
Discourage the creation of walled-off or physical
separations between residential enclaves, or of
separate, unconnected tracts to enhance, is
discouraged because physical separations prevent
the formation of safe, walkable, and enjoyable
neighborhoods.
Reworded for clarity.
7.6 7.5 Neighborhood
Quality
Housing should shall be sited to enhance safety
along neighborhood streets and in other public
and semi-public areas.
7.7 7.6 Neighborhood
Quality
The physical design of neighborhoods and
dwellings should promote walking and bicycling
and preserve open spaces and views.
7.8 7.7 Neighborhood
Quality
Continue to encourage strategies and programs
that increase long-term residency and
stabilization in neighborhoods.
7.8 Neighborhood
Quality
Preserve the fabric, amenities, yards (i.e.
setbacks), and overall character and quality of life
of established neighborhoods.
Policy 3.6 was moved to Goal 7 as it
better relates to Neighborhood
Quality than Housing Conservation.
7.9 Neighborhood
Quality
Encourage neighborhood design elements that
improve overall health of residents such as
providing safe and convenient opportunities to
access food outlets and active places for
recreational exercise.
This is a new policy that has been
added as recommended by the
Planning Commission on June 10,
2020, to address public health and
housing.
7.9 7.10 Neighborhood
Quality
Continue to utilize a diverse range of outreach
methoods implement varied strategies, including
such as early notification through email
notifications electronic media, the City’s website
and social media accounts improvements, and
neighborhood outreach meetings, etc., to ensure
residents are aware of and able to participate in
planning decisions affecting their neighborhoods
early in the planning process.
Updated to be consistent with current
requirements and policies.
7.10 7.11 Neighborhood
Quality
Continue to work directly with neighborhood
groups and individuals to address concerns
pertaining to Identify specific neighborhood
needs, problems, trends and opportunities for
physical improvements.
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# New # Goals Policy/Program Reason for Modification
7.11 7.12 Neighborhood
Quality
Continue to fund neighborhood improvements,
including parks, sidewalks, traffic calming
devices, crosswalks, parkways, street trees and
street lighting to improve aesthetics, safety and
accessibility.
7.12 ----- Neighborhood
Quality
Continue to develop and implement
neighborhood parking strategies, including
parking districts, to address the lack of on- and
off-street parking in residential areas.
Implemented. The City has a process
where Neighborhood Parking
Districts can be created. The City has
also been working on the creation of
demand-based parking strategies.
7.13 7.13 Neighborhood
Quality
Continue the City’s Neighborhood Services and
proactive enforcement Code Enforcement
programs to support neighborhood wellness.
Goal 8 - Special Housing Needs. Encourage the creation and maintenance of housing for those with special housing
needs.
8.1 8.1 Special
Housing
Needs
Encourage housing development that meets a
variety of special needs, including large families,
single parents, disabled persons, the elderly,
students, veterans, the homeless, or those seeking
congregate care, group housing, single-room
occupancy or co-housing accommodations,
utilizing universal design.
8.2 8.2 Special
Housing
Needs
Preserve manufactured housing or mobile home
parks and support changes in these forms of
tenure only if such changes provide residents
with greater long-term security or comparable
housing in terms of quality, cost, and livability.
8.3 ----- Special
Housing
Needs
Encourage manufactured homes in Specific Plan
Areas by:
A) When the City considers adopting new
specific plans, including policies that support
owner-occupied manufactured home parks with
amenities such as greenbelts, recreation facilities,
and shopping services within a master planned
community setting. Such parks could be
specifically designed to help address the needs of
those with mobility and transportation
limitations.
B) Establishing lot sizes, setback, and parking
guidelines that allow for relatively dense
placement of manufactured homes within the
master planned neighborhood.
C) Locating manufactured home parks near
public transit facilities or provide public
transportation services to the manufactured home
parks to minimize the need for residents to own
automobiles.
Manufactured homes are allowed in
all residential zones; applicants have
not shown any interest in creating new
manufactured home parks. New,
higher density development is more
efficient and cost effective. The most
recent affordable housing projects
have all been multi-family
apartments.
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8.4 8.3 Special
Housing
Needs
Encourage Cal Poly University to continue to
develop on-campus student housing to meet
existing and future needs and to lessen pressure
on City housing supply and transportation
systems.
8.5 8.4 Special
Housing
Needs
Strengthen the role of on-campus housing by
encouraging Cal Poly University to require
freshmen and sophomore students to live on
campus.
8.6 8.5 Special
Housing
Needs
Locate fraternities and sororities on the Cal Poly
University campus. Until that is possible, they
should be located in Medium-High and High-
Density residential zones near the campus.
8.7 8.6 Special
Housing
Needs
Encourage Cal Poly University to develop and
maintain faculty and staff housing, consistent
with the General Plan.
8.8 8.7 Special
Housing
Needs
Disperse special needs living facilities
throughout the City where public transit and
commercial services are available, rather than
concentrating them in one district.
8.9 8.8 Special
Housing
Needs
Support Continue to support regional efforts to
address homelessness implement the document
“The Path Home: San Luis Obispo County’s 10
Year Plan to End Chronic Homelessness”.
Revised to be consistent with current
activities and SB 101.
8.10 8.9 Special
Housing
Needs
Encourage a variety of housing types that
accommodate persons with disabilities, and
promote aging in place, and include amenities
such as visiting space, first floor accessibility,
etc.including a goal of “visitability” in new
residential units, with an emphasis on first-floor
accessibility to the maximum extent feasible.
Based on community feedback, this
policy was revised to highlight that
housing for persons with disabilities
or aging in place should include
amenities that support those living
within the units.
8.11 ----- Special
Housing
Needs
Encourage changes to City regulations that would
support the special housing needs of disabled
persons, including persons with developmental
disabilities.
Completed. Regulations have been
updated to address special housing
needs. In addition, the building code
is regularly updated to meet State and
Federal requirements.
8.12 8.10 Special
Housing
Needs
Assist the homeless and those at risk of becoming
homeless by supporting shelters, temporary
housing, and transitional housing. and by
facilitating general housing assistance.
The role of the City is not to place
individuals in housing. There are
several local non-profits involved
with helping people find housing. The
City, if contacted, connects people to
these local organizations.
8.13 8.11 Special
Housing
Needs
Continue to provide resources that support local
and regional solutions to meeting the needs of the
homeless and continue to support, jointly with
other agencies, shelters and programs, such as
Housing First and Rapid Rehousing, for the
homeless and for displaced individual and
families. women and children.
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8.14 8.12 Special
Housing
Needs
Continue to enforce the mobile home rent
stabilization program to minimize increases in the
cost of mobile home park space rents.
8.15 8.13 Special
Housing
Needs
Continue to look for Support opportunities in
specific plan areas within the City suitable for
tenant-owned mobile-home parks, cooperative or
limited equity housing, manufactured housing,
self-help housing, or other types of housing that
meets special needs.
8.16 8.14 Special
Housing
Needs
Advocate developing more housing and
refurbishing campus housing at Cal Poly
University.
8.17 8.15 Special
Housing
Needs
Work with Cal Poly University Administration to
secure designation of on-campus
fraternity/sorority living groups.
8.18 8.16 Special
Housing
Needs
Jointly develop and implement a student housing
plan and Continue to support “good neighbor
programs” with Cal Poly State University, Cuesta
College, the City and local City residents. The
program would seek to improve communication
and cooperation between all groups the City and
the schools, set on campus student housing
objectives and establish clear, effective standards
for about student housing in residential
neighborhoods.
Revised for clarity.
8.19 8.17 Special
Housing
Needs
Provide public educational information at various
City Offices, on the City website, and other
electronic media platforms the Community
Development Department public counter on
universal design concepts (i.e. aging in place) for
new and existing residential dwellings.
Revised for clarity.
8.20 8.18 Special
Housing
Needs
Transitional Housing and Supportive Housing:
Continue to allow the establishment of
transitional and supportive housing in all zoning
districts where residential uses are allowed.
Amend the Zoning Regulations to allow
homeless shelters, transitional housing and
supportive housing (low barrier navigation
centers) in all residential zones, areas zoned for
mixed-uses, and nonresidential zones permitting
multifamily uses without a conditional use permit
to be alignment with Government Code Section
65660 (AB 101).
Revised to be consistent with State
law.
8.21 8.19 Special
Housing
Needs
Continue to look for partnership opportunities
with non-profit housing developers and service
providers to that can be acquire vacant, blighted,
or underutilized properties (land, retail or
commercial space, motels, apartments, housing
units, mobile home parks) for and conversion into
affordable permanent and supportive housing and
Revised to broaden the opportunities
for the City to partner with local non-
profit housing developers.
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permanent supportive housing for homeless
persons and families.
8.22 ----- Special
Housing
Needs
Consider addition of an overlay zone to existing
and future mobile home and trailer park sites to
provide constructive notice that additional
requirements, such as rent stabilization and a
mobile home park conversion ordinance may
apply.
The City’s Municipal Code contains a
Mobile Home Park Rent Stabilization
Ordinance that applies citywide to all
mobile home parks. The Ordinance
satisfies this program by protecting
owners and renters of mobile homes
from unreasonable rent increases.
Staff has evaluated that an overlay
zone would not provide any additional
benefit.
8.23 8.20 Special
Housing
Needs
Continue to seek State, Federal, and local funding
sources to encourage the creation and financially
assist the development of housing for persons
with developmental disabilities. The City will
seek grantopportunities for housing construction
and rehabilitation specifically targeted for
persons with developmental disabilities.
Consolidated the wording of this
program. No change in the content.
8.24 ----- Special
Housing
Needs
Continue to coordinate with the County, social
services providers and non-profit organizations
for delivery of existing, improved and expanded
services, including case management, drug,
alcohol, detoxification, and mental health
services.
This program is covered in Program
8.21.
8.25 8.21 Special
Housing
Needs
Continue to coordinate engage with the County
Department of Social Services, Homeless
Services Oversight Council (HSOC), social
services providers, and non-profit organizations
and Friends of Prado Day Center (FPDC) to
identify, evaluate, and implement strategies to
reduce the impacts of homelessness on the City.
Updated language to be consistent
with current organizations and
agencies.
8.22 Special
Housing
Needs
Work with other jurisdictions to advocate for
State legislation that would: 1) provide funding to
help Cal Poly University provide adequate on-
campus student housing, and 2) allow greater
flexibility for State universities and community
colleges to enter into public-private partnerships
to construct student housing.
Relocated Program 10.6.
Goal 9 - Sustainable Housing Site, and Neighborhood Design. Encourage housing that is resource conserving, healthful,
economical to live in, environmentally benign, and recyclable when demolished.
9.1 9.1 Sustainable
Housing, Site
and
Neighborhood
Design
Residential developments should promote
sustainability consistent with the Climate Action
Plan (CAP) and California Building Energy
Efficiency Standards – Title 24 in their design,
placement, and functionality use. Sustainability
can be promoted through a variety of housing
strategies, including the following:
A) Maximize use of renewable, recycled-content,
and recycled materials, and minimize use of
building materials that require high levels of
Updated to be consistent with current
City and State policies. Strategies
were removed because they are
outlined in the CAP and Title 24.
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energy to produce or that cause significant,
adverse environmental impacts.
B) Incorporate renewable energy features into
new homes, including passive solar design, solar
hot water, solar power, and natural ventilation
and cooling.
C) Minimize thermal island effects through
reduction of heat-absorbing pavement and
increased tree shading.
Avoid building materials that may contribute to
health problems through the release of gasses or
glass fibers into indoor air.
D) Design dwellings for quiet, indoors and out,
for both the mental and physical health of
residents.
F) Design dwellings economical to live in
because of reduced utility bills, low cost
maintenance and operation, and improved
occupant health.
G) Use construction materials and methods that
maximize the recyclability of a building’s parts.
Educate public, staff, and builders to the
advantages and approaches to sustainable design,
and thereby develop consumer demand for
sustainable housing.
I) City will continue to refer to a sustainable
development rating system, such as the LEED or
GreenPoint programs when evaluating new
development proposals.
9.2 9.2 Sustainable
Housing, Site
and
Neighborhood
Design
Residential units site, subdivision layouts, and
neighborhood designs amenities should be
coordinated to support make residential
sustainable design work. Some ways to do this
include:
A) Design subdivisions to maximize solar access
for each dwelling and site.
B) Design sites so residents have usable outdoor
space with access to both sun and shade.
C) Streets and access ways should minimize
pavement devoted to vehicular use.
D) Use neighborhood retention basins to purify
street runoff prior to its entering creeks. Retention
basins should be designed to be visually attractive
as well as functional. Fenced-off retention basins
should be avoided.
E) Encourage cluster development with
dwellings grouped around significantly-sized,
shared open space in return for City approval of
smaller individual lots.
F) Treat public streets as landscaped parkways,
using continuous plantings at least six feet wide
and where feasible, median planters to enhance,
Examples were removed as
innovative sustainable designs are
extensive.
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define, and to buffer residential neighborhoods of
all densities from the effects of vehicle traffic.
9.3 ----- Sustainable
Housing, Site
and
Neighborhood
Design
Preserve the physical neighborhood qualities in
the Downtown Planning Area that contribute to
sustainability. Some ways to do this include:
A) Maintain the overall scale, density and
architectural character of older neighborhoods
surrounding the Downtown Core.
B) Encourage the maintenance and rehabilitation
of historically designated housing stock.
The Historic Preservation Ordinance
preserves and protects historic
structures and districts. Additionally,
the Conservation and Open Space
Element includes Policies 3.3.4, 3.3.5,
that direct preservation of historic
buildings, districts, and
neighborhoods. Program 3.6.3 directs
construction within historic districts.
9.4 9.3 Sustainable
Housing, Site
and
Neighborhood
Design
To promote energy conservation and a cleaner
environment, Continue to encourage the
development of dwellings with energy-efficient
designs, utilizing passive and active solar
features, and the use of energy-saving techniques
that exceed minimums prescribed by State law.
9.5 9.4 Sustainable
Housing, Site
and
Neighborhood
Design
Actively Continue to promote water conservation
through housing and site design to help moderate
the cost of housing.
9.6 9.5 Sustainable
Housing, Site
and
Neighborhood
Design
Support programs that provide financing for
sustainable home upgrade projects such as
installation of solar panels, heating and cooling
systems, water conservation and windows to
improve the energy efficiency of the City’s
existing housing stock.
9.7 9.6 Sustainable
Housing, Site
and
Neighborhood
Design
Continue to educate planning and building staff
and citizen review bodies on energy conservation
issues, including the City’s energy conservation
policies and Climate Action Plan. Staff shall
work with applicants to achieve the City’s energy
conservation goals.
9.8 9.7 Sustainable
Housing, Site
and
Neighborhood
Design
Continue to provide assurance of long-term solar
access for new or remodeled housing and for
adjacent properties, consistent with historic
preservation guidelines and revise regulations
found to be inadequate.
9.9 ----- Sustainable
Housing, Site
and
Neighborhood
Design
Continue to implement the Water Quality Control
Board’s “Post-Construction Stormwater
Management Requirements for Development
Projects in the Central Coast Region”, to reduce
the amount of impermeable surface.
Implemented. All development
projects are required to include Post-
Construction Stormwater
Management Requirements as a part
of a project application, which allows
staff to verify that the project is
consistent with the Regional Water
Board’s Requirements.
9.10 9.8 Sustainable
Housing, Site
and
Implement Climate Action Plan programs that
increase the production of “green” housing units
and projects and require use of sustainable and/or
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Neighborhood
Design
renewable materials, water and energy
technologies (such as, but not
limited to solar, wind, or thermal).
9.11 9.9 Sustainable
Housing, Site
and
Neighborhood
Design
Continue to promote building materials reuse and
recycling in site development and residential
construction, including flexible standards for use
of salvaged, recycled, and “green” building
materials. Continue the City’s
construction and demolition debris recycling
program as described in Chapter 8.05 of the
Municipal Code.
9.12 ----- Sustainable
Housing, Site
and
Neighborhood
Design
Consider incentivizing dwelling units to a
minimum size of 150 square feet, consistent with
the California Building Code, by reduced impact
fees and property development standards.
Implemented. The City has
implemented a reduction in the impact
fees for smaller units with AB 1600
and the fee schedule update.
Additionally, ADU requirements
have been revised to be consistent
with state law and impact fees
removed in order to incentivize the
development of this type of smaller
unit.
9.13 9.10 Sustainable
Housing, Site
and
Neighborhood
Design
Continue to support Consider participating in
financing programs for sustainable home
improvements such as solar panels, heating and
cooling systems, water conservation and energy
efficient windows.
Goal 10 - Local Preference. Maximize affordable housing opportunities for those individuals who are employed in
business that are located in geographic areas that are customarily included in the City’s annual jobs -housing balance
analysis who live or work in San Luis Obispo while seeking to balance job growth and housing supply.
Based on community feedback and a need for more housing for local individuals who work in the City or nearby vicinity, Goal
10 has been updated to focus on providing housing for individuals who are employed in business that are located in geographic
areas that are customarily included in the City’s annual jobs-housing balance analysis.
10.1 10.1 Local
Preference
Administer City housing programs and benefits,
such as First Time Homebuyer Assistance or
affordable housing lotteries, to give preference to
individuals as outlined in Policy 10.2. to: 1)
persons living or working in the City or within the
City’s Urban Reserve, and 2) persons living in
San Luis Obispo County.
Revised to be consistent with new
Policy 10.2.
10.2 ----- Local
Preference
Cal Poly State University and Cuesta College
should actively work with the City and
community organizations to create positive
environments around the Cal Poly Campus by:
A) Establishing standards for appropriate student
densities in neighborhoods near Campus;
B) Promoting homeownership for academic
faculty and staff in Low-Density Residential
neighborhoods in the northern part of the City;
and
C) Encouraging and participating in the
revitalization of degraded neighborhoods.
This Policy did not address local
preference. Supporting housing for
employees at Cal Poly, Cuesta, CMC,
etc. is covered in Policy 10.2.
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10.2 Local
Preference
Encourage, and where legally allowed, require
new housing development to give preference in
the following order: 1) individuals who are
employed in business that are located in
geographic areas that are customarily included in
the City’s annual jobs-housing balance analysis,
2) individuals residing in the County, and 3)
finally to individuals from outside the County.
This new policy sets preferences for
new, for-sale housing developments
in the initial offering and sales to
improve the City’s jobs-housing
balance, reduce competition from
outside buyers and allow those that
work in the City the opportunity to
live in the City, thereby reducing
commute times.
10.3 Local
Preference
Continue to work with the County of San Luis
Obispo for any land use decisions that create
significant expansion of employment in the
unincorporated areas adjacent to the City to
mitigate housing impacts on the City.
10.4 Local
Preference
Encourage residential developers to sell or rent
their projects to those residing or employed in the
City first before outside markets.
Covered in Policy 10.2.
10.5 Local
Preference
Work with Cal Poly to address the link between
enrollment and the expansion of campus housing
programs at Cal Poly University to reduce
pressure on the City's housing supply.
This program is covered in Program
8.16.
10.6 Local
Preference
Work with other jurisdictions to advocate for
State legislation that would: 1) provide funding to
help Cal Poly University provide adequate on-
campus student housing, and 2) allow greater
flexibility for State universities and community
colleges to enter into public-private partnerships
to construct student housing.
Relocated under Goal 8 as Program
8.22.
Goal 11 - Suitability. Develop and retain housing on sites that are suitable for that purpose.
Policies and programs within Goal 11 are covered by the other Goals of the Housing Element, the Housing Major City Goal,
the Conservation and Open Space Element, the Land Use Element, and the Safety Element.
11.1 Suitability Where property is equally suited for commercial
or residential uses, give preference to residential
use. Changes in land use designation from
residential to non-residential should be
discouraged.
11.2 Suitability Prevent new housing development on sites that
should be preserved as dedicated open space or
parks, on sites subject to natural hazards such as
unmitigable geological or flood risks, or wild fire
dangers, and on sites subject to unacceptable
levels of man-made hazards or nuisances,
including severe soil contamination, airport noise
or hazards, traffic noise or hazards, odors or
incompatible neighboring uses.
11.3 Suitability The City will continue to ensure the ability of
legal, non-conforming uses to continue where
new development is proposed.
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Draft Housing Element
July 2020
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Community Development Department
MISSION STATEMENT
Our mission is to identify and serve the needs of all people in a positive and courteous manner
and to help ensure that San Luis Obispo remains a healthy, safe, attractive and enjoyable place
to live, work or visit. We help plan the City's form and character, support community values,
preserve the environment, promote the wise use of resources and protect public health and safety.
OUR SERVICE PHILOSOPHY
The City of San Luis Obispo Community Development Department staff provides high-quality
service whenever and wherever you need it. We will:
• Listen to and understand your needs;
• Give clear, accurate and prompt answers to your questions;
• Explain how you can achieve your goals under the City's rules;
• Help resolve problems in an open, objective, and fair manner;
• Maintain the highest ethical standards; and
• Work to continually improve our services.
____________________________________
Front Cover Photo: Top left, Iron Works 100 percent affordable apartments (HASLO); Top middle, Noveno single
family homes; Top right, Common single family home (Photo credit: Community Development Department, 2020.
Bottom - Bishop Street Studios (Transitions-Mental Health Association), 33 units of supported housing for adults
living with a mental illness in San Luis Obispo (Photo credit: Dennis Swanson).
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City of San Luis Obispo
6th Cycle Draft Housing Element
Adopted
SAN LUIS OBISPO CITY COUNCIL
Heidi Harmon, Mayor Carlyn Christianson
Andy Pease Aaron Gomez
Erica A. Stewart
Derek Johnson, City Manager
PLANNING COMMISSION
Hemalata Dandekar, Chair Robert Jorgensen, Vice-Chair
Mike Wulkan Steve Kahn
Michelle Shoresman Nicholas Quincy
Michael Hopkins
COMMUNITY DEVELOPMENT DEPARTMENT
Michael Codron, Director of Community Development
Tyler Corey, Principal Planner
Brian Leveille, Senior Planner
Rachel Cohen, Associate Planner
Cara Vereschagin, Housing Programs Coordinator
Graham Bultema, Planning Intern
Madison Driscoll, Planning Intern
City of San Luis Obispo
919 Palm Street
San Luis Obispo, CA 93401 – 3218
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FOREWORD
This Housing Element updates the 5th Cycle Housing Element and addresses important changes to
State housing law. Like the previous element, it has been prepared to help San Luis Obispo City
residents’ secure safe housing that will meet their personal needs and financial circumstances, and
to meet State law.
The Housing Element is part of the General Plan and is one of nine “elements” or chapters of that
plan. It sets out the City’s goals, policies, and programs for housing over the next eight years
(2020-2028). It works in concert with the other plan elements to help achieve the broad community
goals as expressed in the General Plan Land Use Element. The other elements are Circulation,
Noise, Safety, Conservation and Open Space, Parks and Recreation, and Water and Wastewater.
Housing elements must be updated periodically, according to a State adopted schedule.
The Housing Element is available on the City’s website at www.slocity.org, and copies of the
General Plan are available from the Community Development Department, City of San Luis
Obispo, 919 Palm Street, San Luis Obispo, California 93401-3218. Phone: (805) 781-7170. Fax:
(805) 781-7173.
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City of San Luis Obispo
6th Cycle Draft Housing Element
TABLE OF CONTENTS
Chapter Page
1. INTRODUCTION 1
1.10 Purpose 1
1.20 What is a Housing Element 2
1.30 Consistency with State Law 2
1.40 General Plan Consistency 2
1.50 Citizen Participation 4
2. COMMUNITY FACTORS 5
2.10 Community Overview 5
2.20 Demographic Snapshots 5
2.30 Housing Snapshots 6
2.40 Neighborhood Snapshots 7
3. GOALS, POLICIES, AND PROGRAMS 9
3.10 Overview 9
3.20 Goals, Policies, and Programs 9
3.30 Implementation Tools 24
4. REGIONAL VISION FOR HOUSING 31
4.10 Overview 31
4.20 Alignment with Regional Compact 31
4.30 Policies 32
4.40 Moving Forward 33
5. QUANTIFIED OBJECTIVES 33
5.10 Overview of Quantified Objectives 33
5.20 Regional Housing Needs Allocation (RHNA) Objectives 33
5.30 Rehabilitation and Preservation of At-Risk Units 35
a) Inventory of At-Risk Units 36
b) Potential Financing for Preserving At-Risk Units 38
c) Preservation Successes from 5th Cycle Housing Element 38
5.40 Quantified Objectives Summary 40
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LIST OF TABLES Page
Table 1 Local Resources and Incentives Available for Housing Activities 22
Table 2 State Resources and Incentives Available for Housing Activities 24
Table 3 Federal Resources and Incentives Available for Housing Activities 28
Table 4 6th Cycle Regional Housing Needs Allocation (1/1/19 to 12/31/28) 33
Table 5 RHNA Credit Captured in 2019 (1/1/2019 to 12/31/2019) 34
Table 6 At-Risk Units in San Luis Obispo, 2020-2028 35
Table 7 HASLO RAD 175 Conversion Properties 38
Table 8 Summary of Quantified Objectives, January 2021 - December 2028 39
APPENDICES
APPENDIX A – COMMUNITY PROFILE A1
1. Population Trends and Characteristics A1
a) Age Composition A3
b) Race and Ethnicity A4
2. Employment Trends A6
3. Household Characteristics A8
a) Household Formation and Type A8
b) Household Income A9
4. Housing Inventory and Market Factors A11
a) Housing Stock Profile and Population Growth A11
b) Unit Type A12
c. Unit Size A13
d) Tenure A14
e) Vacancy Rates A14
f) Age of Housing Stock A15
g) Housing Condition A15
h) Housing Costs and Rents A16
i) Affordability Gap Analysis A17
5. Summary and Conclusions A20
APPENDIX B – HOUSING NEEDS B1
1. Regional Housing Needs Assessment B1
a) Existing Housing Needs B1
b) Housing Needs for 2020-2028 B3
c) Extremely Low-Income Households B5
2. Special Housing Needs B7
a) Elderly Persons B7
b) Large Households B10
c) Female-Headed Households B12
d) Disabled Persons B13
e) Developmental Disabilities B14
f) Homeless Persons and Transitional Housing B15
g) Farm Workers B19
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h) Students B20
i) Fraternities and Sororities B21
j) “Shared” Households B22
k) Single Room Occupancy (SRO) B22
3. Conclusions B23
APPENDIX C – HOUSING CONSTRAINTS AND RESOURCES C1
1. Governmental Constraints C1
a) Land Use Controls C1
b) Zoning Regulations and Development Standards C3
c) Specific Plans and Area Plans C8
d) Residential Growth Management Regulations C9
e) Architectural Review C12
f) Building, Zoning, and Municipal Code Enforcement C13
g) Processing and Permit Procedures C15
h) Development Fees C18
i) Infrastructure C21
j) Public Services – Police and Fire C23
k) Schools C24
l) Inclusionary Housing Program C24
2. Non-Governmental Constraints C26
a) Land Costs C26
b) Construction Costs C26
c) Availability and Cost of Financing C27
d) Insurance Costs C27
e) Investment Expectations C28
f) Environmental Constraints C28
g) Economic Constraints C30
APPENDIX D – RESIDENTIAL LAND RESOURCES D1
1. Residential Development Capacity Calculation D1
2. Availability of Adequate Sites for Housing D2
a) Vacant Residential Land D2
b) Underutilized Residential Land D3
c) Land Suitable for Mixed-Use Development D3
d) Possible Rezonings D4
e) Accessory Dwelling Units D5
f) “Pipeline” Projects D6
g) Entitled Projects D7
h) Building Permits Issued D8
3. Residential Densities D8
4. Evaluation of Development Capacity: Identifying Adequate Sites D9
5. Existing and Proposed Incentives to Facilitate Housing Development D15
6. Conclusion D17
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APPENDIX E – RESIDENTIAL CAPACITY INVENTORY E1
1. Purpose E1
2. Definitions E1
3. Survey Methodology E2
a) Development Constraints E3
b) Survey Assumptions E5
c) Survey Organization E6
4. Summary of Residential Capacity E6
a) Development Capacity by Area E6
b) Development Capacity by Zoning Designation E7
c) Development Capacity by Development Status E8
5. Residential Capacity Tables E8
APPENDIX F – AFFORDABLE HOUSING IN SAN LUIS OBISPO F1
1. Purpose F1
2. Definitions F1
3. Housing Type F2
4. Affordable Unit Inventory F3
APPENDIX G – PUBLIC OUTREACH G1
APPENDIX H – REVIEW OF PREVIOUS HOUSING ELEMENT H1
APPENDIX I – IMPLEMENTATION PLAN I1
APPENDIX J – DEFINITIONS J1
APPENDIX K – COUNCIL RESOLUTION K1
APPENDIX L – STATE CERTIFICATION OF HOUSING ELEMENT L1
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APPENDIX LIST OF TABLES
Table A - 1 Population Growth, 2011-2019 A1
Table A - 2 Average Annual Population Growth, 2000-2019 A2
Table A - 3 Pop. Growth in Cities of San Luis Obispo County, 2000-2019 A2
Table A - 4 Population Growth Projections for City, County, and State A3
Table A - 5 Age Distribution, 2017 A3
Table A - 6 Racial Composition for the City, County, and State, 2000-2017 A5
Table A - 7 Ethnic Composition for the City, County, and State, 2000-2017 A5
Table A - 8 Projected Change in Racial and Ethnic Composition, 2015-2035 A5
Table A - 9 Employment by Industry for Residents, 2017 A6
Table A - 10 Labor Force and Unemployment, 2010-2019 A7
Table A - 11 Commuting Patterns in the City: 2000, 2010, and 2017 A8
Table A - 12 Number of Households, 2000, 2010, and 2017 A8
Table A - 13 Household Size, 2000, 2010, and 2017 A9
Table A - 14 Estimated Households by Household Type, 2017 A9
Table A - 15 Estimated Households by Household Size, 2017 A9
Table A - 16 Median Household Income, 2000, 2010, and 2017 A10
Table A - 17 Median Family Income, County Comparison, 2010-2017 A10
Table A - 18 Per Capita Income, 2010-2017 A10
Table A - 19 California Income Category Limits A11
Table A - 20 Estimated Households by Income Categories, 2017 A11
Table A - 21 RHNA Progress - Issued Building Permits, 2014–2019 A12
Table A - 22 Net Change from Completed Construction, 2010–2019 A12
Table A - 23 Composition of Housing Stock by Unit Type, 2010-2019 A13
Table A - 24 Housing Size - Number of Bedrooms by Tenure, 2017 A13
Table A - 25 Estimated Tenure of Occupied Housing Units. 2010-2017 A14
Table A - 26 Housing Vacancy Rates, 2010 & 2017 A14
Table A - 27 Age of Housing Stock, 2017 A15
Table A - 28 Median Residential Real Estate Sales Prices, 2014-2019 A16
Table A - 29 Comparison of Rent Costs, City and County, 2019 A17
Table A - 30 Owner & Renter Vacancy Rates, 2010 & 2017 A17
Table A - 31 Single Family Housing Values, 2017 A17
Table A - 32 Median Monthly Owner Cost, Percent of Household Income, 2017 A18
Table A - 33 Median Housing Costs vs. Median Family Income, 2014-2019 A18
Table A - 34 Median Gross Rent as a Percent of Household Income, 2017 A20
Table A - 35 Affordable Rents by Income Group in San Luis Obispo, 2019 A20
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APPENDIX LIST OF TABLES, CONTINUED
Table B - 1 Residential Overcrowding, 2017 B3
Table B - 2 Average Household Size by Tenure, 2017 B3
Table B - 3 Regional Housing Needs Allocation (RHNA) for
San Luis Obispo County, Jan. 2019 – Dec. 2028 B4
Table B - 4 Household Problems by Tenure and Income Level, 2015 B5
Table B - 5 Elderly Population in San Luis Obispo, 2010-2017 B7
Table B - 6 Elderly Householders by Tenure & Age, 2017 B7
Table B - 7 Elderly Population with Disabilities, 2017 B8
Table B - 8 Elderly Households by Income & Tenure, 2015 B9
Table B - 9 Special Needs Housing and Residential Care Facilities, 2020 B9
Table B - 10 Number of Units by Bedrooms in San Luis Obispo, 2017 B10
Table B - 11 Household Tenure by Bedrooms in San Luis Obispo, 2017 B11
Table B - 12 Large Households by Tenure in San Luis Obispo, 2017 B11
Table B - 13 Household Size by Income in San Luis Obispo, 2015 B11
Table B - 14 Female-Headed Households in San Luis Obispo, 2017 B12
Table B - 15 Persons Reporting Ambulatory or Self-Care Difficulties, 2017 B13
Table B - 16 Disability by Type and Age in San Luis Obispo, 2017 B14
Table B - 17 Developmental Disabilities by Age and Location, 2019 B14
Table B - 18 Developmental Disabilities by Residence Type, 2019 B15
Table B - 19 San Luis Obispo County Homeless Count by City, 2019 B16
Table B - 20 Emergency Shelters and Supportive Housing Facilities, 2019 B18
Table B - 21 San Luis Obispo County Farm Operations, 2017 B19
Table B - 22 Summary of Housing Needs, 2020 B23
Table C - 1 Land Use Categories Allowing Residential Uses, 2019 C2
Table C - 2 Development Standards in Nonresidential Zones, 2019 C3
Table C - 3 Development Standards in Residential Zones, 2019 C4
Table C - 4 Residential Development Standards & Exceptions, 2019 C5
Table C - 5 Estimated Housing Capacity C8
Table C - 6 Development Fee Comparison in San Luis Obispo County, 2019 C19
Table C - 7 Water Resource Availability in San Luis Obispo, 2019 C22
Table C - 8 Water Usage in San Luis Obispo, 2000-2019 C23
Table C - 9 Current Mortgage Rates C27
Table C - 10 Population Change in San Luis Obispo, 1980-2019 C29
Table D - 1 Specific Plan Development Potential in San Luis Obispo D3
Table D - 2 Areas to be Considered for Possible Rezoning, 2019 D4
Table D - 3 “Pipeline” Residential Projects in San Luis Obispo, 2019 D6
Table D - 4 Entitled Residential Projects in San Luis Obispo, 2019 D7
Table D - 5 RHNA Credit Captured in 2019 (1/1/2019 to 12/31/2019) D8
Table D - 6 Maximum Residential Density & Number of Dwellings
Allowed by Right D9
Table D - 7 Residential Densities of Recent Projects on Small Sites D11
Table D - 8 Residential Capacity of San Luis Obispo D17
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APPENDIX LIST OF TABLES, CONTINUED
Table E - 1 Maximum Density by Zone and Slope E5
Table E - 2 Residential Capacity by Parcel and Survey Subarea E9
Table E - 3 Residential Capacity by Parcel and Specific Plan Area E25
Table F - 1 Affordable Housing Units by Income Level, 2020 F2
Table F - 2 Affordable Housing Units by Program, 2020 F2
Table F - 3 Affordable Housing Units by Tenure, 2020 F2
Table F - 4 Inventory of Deed-Restricted Affordable Housing Units, 2020 F3
Table H - 1 Housing Element Program Evaluation, 5th Cycle (2014-2019) H1
Table I - 1 Program Implementation Details I2
APPENDIX LIST OF FIGURES
Figure A - 1 San Luis Obispo Population Pyramid, 2017 A4
Figure A - 2 Residential Sales Prices vs. Median Family Income, 2014-2019 A19
Figure C - 1 General Plan Anticipated Housing and Population Growth C9
Figure C - 2 Citywide Capital Facilities Fee Schedule, 2018 C20
Figure D - 1 Small Sites Example, 2062 Price Street D12
Figure D - 2 Small Sites Example, 577 Branch Street D13
Figure D - 3 Small Sites Example, 3085 McMillan Avenue D14
Figure D - 4 Small Sites Example, 3460 Broad Street D14
Figure D - 5 Small Sites Example, 1166 Higuera Street D15
Figure E - 1 Residential Capacity Survey Subareas E2
Figure E - 2 Residential Capacity by Survey Subarea E7
Figure E - 3 Residential Capacity by Zone E8
Figure F - 1 Map of Affordable Housing Units by Tenure, 2020 F7
Figure F - 2 Map of Affordable Housing Units by Income Level, 2020 F8
Figure F - 3 Map of Affordable Housing Units by Program, 2020 F9
***
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Chapter 1
INTRODUCTION
1.10 Purpose
The City has prepared this document to help its citizen’s secure adequate and affordable housing,
and to meet State law. In addition, this Housing Element update has the following basic objectives:
• To evaluate and quantify community housing needs, constraints and available resources to
effectively satisfy those needs;
• To increase public awareness and understanding of the City's housing situation and its goals
to encourage public participation in addressing those housing needs;
• To provide a comprehensive document that includes goals, policies and programs to help
guide community efforts to meet housing needs through informed decision-making on land
use and housing choices;
• To help develop more affordable housing, and a wider variety of housing, to meet the City's
housing needs for the 6th cycle planning period;
• To track and document the effectiveness of City programs in meeting housing needs, and
to evaluate opportunities for improving those programs;
• To enable the City to secure financial assistance for the construction of affordable housing
for extremely low, very low-, low- and moderate-income persons; and
• To fully integrate environmental sustainability, “smart growth” and conservation strategies
into the City’s housing policy.
Under State law, cities are responsible for planning for the well-being of their citizens. This
Housing Element sets forth the City’s policies and detailed programs for meeting existing and
future housing needs, for preserving and enhancing neighborhoods, and for increasing affordable
housing opportunities for extremely low, very-low, low and moderate income persons and
households. It is the primary policy guide for local decision-making on all housing matters. The
Housing Element also describes the City´s demographic, economic and housing factors, as
required by State law.
1.20 What is a Housing Element
The Housing Element is one of the seven required elements of the General Plan and is the primary
document that local jurisdictions in California use to plan for current and future housing needs.
State Housing Element law, enacted in 1969, mandates that each local government in California
create a Housing Element to adequately plan to meet the existing and projected housing needs of
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all segments of the population. The Housing Element must be consistent with all other elements
of the General Plan and is updated on a regular basis. The law acknowledges that for the private
market to adequately address housing needs and demand, local governments must adopt plans and
regulatory systems that support housing development. As a result, the successful growth of a
community rests largely upon the implementation of local general plans, and in particular, the
Housing Element.
Each jurisdiction’s projected housing need during the Housing Element planning period is
determined through the Regional Housing Needs Allocation (RHNA) process, which is based on
projected Statewide growth in households as determined by the California Department of Housing
and Community Development (HCD). Through the RHNA process, HCD distributes the Statewide
projected housing need among the regions in the State, where each regional council of government
allocates the projected regional growth to local jurisdictions within the region. The total housing
need for each jurisdiction is distributed among income categories, requiring each jurisdiction to
plan to meet the need for housing for households at all income levels. The agency responsible for
distributing the RHNA in San Luis Obispo County is the San Luis Obispo Council of Government
(SLOCOG).
Each city and county in California is required to produce a Housing Element that demonstrates the
jurisdiction’s ability to accommodate the housing need identified in its RHNA during the Housing
Element planning period. This Housing Element covers the 6th cycle Housing Element planning
period, which differs from previous update cycles as a result of recent changes in State Law, which
are discussed below.
1.30 Consistency with State Law
California cities and counties must prepare housing elements as required by State law set forth in
Sections 65580 to 65589.8 of the California Government Code. The law mandates that housing
elements include “identification and analysis of existing and projected housing needs and a
statement of goals, policies, quantified objectives and scheduled programs for the preservation,
improvement and development of housing.” State housing goals rely on the effective
implementation of housing policies at the local level. To ensure local housing policies are
consistent with State law, the State Department of Housing and Community Development (HCD)
reviews local housing elements and reports its written findings to the local government. Housing
elements must also be consistent with the jurisdiction’s other general plan elements and must
address several specific requirements regarding the element’s scope and content.
Within the last several years, new state laws have been approved that impacts housing and
specifically the information that must be contained within the Housing Element. Two of these laws
are discussed below.
SB 375
In an effort to reduce greenhouse gas emissions associated with passenger cars, Senate Bill 375
calls for local jurisdictions and regional planning agencies to better coordinate land use plans with
existing and planned transit investments and to plan for a greater proportion of residential and
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employment growth in areas accessible to transit. One outcome of the effort to coordinate housing
and transit planning has been the eight-year planning period (2020-2028) for the upcoming
Housing Element Update, rather than the five planning period that was used in previous Housing
Element Update cycles, in order to coordinate the timing of the Housing Element Update with the
Regional Transportation Plan.
SB 166 – No Net Loss
SB 166 requires local planning agencies to identify additional low-income housing sites in their
housing element when market-rate housing is developed on a site currently identified for low-
income housing. Appendix E outlines the City’s inventory, including the anticipated location of
affordable and market-rate units. The inventory contains sufficient properties, that if a property is
developed with market rate units instead of low-income units, there are other sites available to
make up the difference. This ensures that there is no net loss of availability of potentially low-
income housing sites.
1.40 General Plan Consistency
The Housing Element is one part of the City of San Luis Obispo General Plan. State law requires
that general plans contain an integrated and internally consistent set of goals or policies. Although
the Housing Element is the primary source of information on housing policies, programs and
resources, other General Plan documents also address or affect housing. By law, new development
projects must be consistent with all elements of the General Plan.
For example, the Land Use Element and Circulation Element set the City's policies for land use
and transportation, which in turn, affect how, when and where the City's housing needs can best
be met. While housing is important, it is but one of many community goals the General Plan
addresses. The other elements contain policies that seek to preserve and enhance the quality of life
San Luis Obispo citizens enjoy. Clean air and water, open space, parks and recreation, preservation
of natural, historic, and cultural resources, public services and safety are also essential community
attributes. These policies are of equal importance with those of the Housing Element.
City Staff has reviewed the goals, policies, and programs of other General Plan Elements and
determined that the Housing Element is consistent with the City’s other General Plan elements.
Additionally, the policies and programs in the Housing Element reflect policies and programs
contained in other parts of the General Plan. As other elements are updated or amended, the
Housing Element will be reviewed to ensure General Plan consistency is maintained.
1.50 Citizen Participation
The Housing Element expresses the community’s housing priorities, goals, values and hopes for
the future. Preparing the Element is a sizable task that involves extensive community input and the
work of many individuals. Under State law, local governments must be diligent in soliciting
participation by all segments of the community in this effort. During preparation of this Element
Update, citizen participation was actively encouraged through the following forums:
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• One public workshop focusing on housing needs, issues, and opportunities in the
community.
• Two online public surveys.
• Three public meetings before the Planning Commission and two public meetings before
the City Council.
• Posted the Draft Housing Element on the City’s website.
• Public notices for meetings, outreach events and online surveys were distributed in local
newspapers and public radio, the City’s website, Twitter, and Facebook.
• Regular e-mail updates to a list of interested parties with a link to the City’s website that
contained links to staff reports, draft housing element and housing resources.
• Presentations and discussions with a variety of stakeholder groups including San Luis
Obispo Association of Realtors, Economic Vitality Corporation, Home Builders
Association, and Chamber of Commerce. Participation in the workshops and meetings
from a variety of residents and stakeholders has resulted in an improved understanding of
existing housing programs and housing issues in the community and increased public
participation in the update process. Input from residents and stakeholder groups has been
instrumental in providing information for program modifications and in providing a better
sense of housing issues for the decision-makers when considering new policies or
programs.
Feedback from the workshops, presentations, and meetings, as well as other correspondence, were
used to inform the changes to the Housing Element Goals, Policies and Programs. The most
frequently repeated comments and suggestions regarding housing were the topics of affordability,
higher density and missing middle housing. Updates to the Housing Element include new and
revised policies and programs that address these topics. These changes include pursuing flexible
density in Downtown and Upper Monterey and Mid-Higuera Special Focus Areas (Program 2.15),
encouraging “missing middle” type housing (Policy 5.4 and Program 5.6) and local preference
(Policy 10.2 and Program 10.4), and updating the Inclusionary Housing Ordinance (Program 2.13).
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Chapter 2
COMMUNITY FACTORS
2.10 Community Overview
San Luis Obispo is a compact urban community blessed with rich ethnic, cultural, and historical
traditions. Its namesake, Mission San Luis Obispo de Tolosa, founded in 1772, stands as the
community’s physical, cultural, and spiritual center. With an estimated 2019 population of 46,802
people, San Luis Obispo is the largest city in terms of population in San Luis Obispo County and
serves as the County seat. Situated in a valley and framed by rolling hills, the City’s setting and
visual character are distinctive. The “morros”, a series of weathered peaks that are the remnants of
ancient volcanoes, transect the City and create the City’s unique skyline. San Luis Obispo is home
to California Polytechnic State University, Cuesta College and Camp San Luis Obispo (California
Army National Guard), and is the retail, business, governmental, and transportation hub of the
County.
In assessing the City’s housing issues and needs, many factors were considered. These factors
became the foundation for the Element’s preliminary goals, policies, and programs. Preliminary
housing goals and policies were then refined through the public review process. An overview of
these factors is described below, including snapshots of the City’s key demographic, economic
and housing characteristics. An analysis of community factors is provided in Appendix A.
2.20 Demographic Snapshots
❑ San Luis Obispo’s population has grown at a slow, steady pace since 1980. Since 2011, the
City’s population has increased slightly at varying rates. During this period, annual
population change never exceeded one percent, and only four times did it change more than
half a percent (see Table A-1, Appendix A).
❑ When compared with California, the most ethnically diverse state in the nation, the City
and County of San Luis Obispo are less ethnically diverse. The 2017 Census1 found that
72 percent of the City is white, about five percent is Asian, with much smaller percentages
of Native Americans, Pacific Islanders, other single races or persons self-identifying with
two or more races. Persons of Hispanic or Latino origin are classified separately under the
2017 Census and can be of any race. About 17 percent of the City’s population is Hispanic,
compared with 22 and 39 percent in the County and State, respectively.
❑ Many segments of the City’s population have difficulty finding affordable housing due to
their economic, physical, or sociological circumstances. These special needs groups may
include the elderly, families, single parent households, people with disabilities, very low
and low-income residents, and the homeless.
❑ In 2017, City households earned less, on the average, than their County and State
1 U.S. Census 2013-2017 American Community Survey 5-Year Estimates
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counterparts. The median household income was $49,640, compared with $67,175for the
County and $76,975Statewide. This reflects the high percentage of student households in
San Luis Obispo. Many students attending California State Polytechnic University (Cal
Poly) and Cuesta College are nominally classified as lower income, although they often
have significant financial resources through parental support.
❑ While median City household incomes were less than many other areas of coastal
California, median City housing costs were higher than both the County and State. Housing
costs in San Luis Obispo have risen sharply in recent years while average household
incomes have risen slowly or remained steady. Despite the housing market’s upturn after
the Great Recession (20078 to 2009), there is a continuing disparity between household
income and housing costs which forces many to seek housing outside the City.
❑ San Luis Obispo contains the largest concentration of jobs in the County. During workdays,
the City’s population increases to an estimated 55,733 persons2 (excluding any overnight
visitors); this is an increase of 8,931 persons each workday.
2.30 Housing Snapshots
❑ The City median housing sales price has increased since the previous housing element in
2015. Since 2015 the median real estate sales price has increased steadily from $546,600
to $693,000 in 2019. By comparison, the median sales price in the County in 2015 was
$478,700, and $585,800 in 2019. This pattern in both the City and County was also seen
in the State, which saw a median sales price of $398,300 in 2015 and $500,500 in 2019.
❑ The City has seen a steady number of building permits for new housing units being issued
each year since 2014. From 2014 to 2018 an average of 125 building permits were issued
each year resulting in a total of 600 multi-family dwellings and 377 new single-family
dwellings over the five years.
❑ The City’s housing tenure is approximately 38 percent owner-occupied and 62 percent
renter occupied. From 2010 to 2017 the City saw a one percent decrease in owner-occupied
housing units. In contrast, the County and State saw increases in renter-occupied housing
units of two percent and six percent, respectively.
❑ San Luis Obispo’s housing market is strongly influenced by Cal Poly University and
Cuesta College enrollment. Owner occupied housing units saw a one percent decrease since
2010 even with the large increase of on-campus student housing at Cal Poly. Cuesta
College does not offer on-campus housing. Most of the area’s students live off campus in
single family or multi-family rental units in the City of San Luis Obispo. Students often
live together in a house and share rental costs. Consequently, college students will out-
2 The estimate uses 2017 & 2018 data from SLOCOG; this number takes the total population and subtracts the number
of people who leave the City throughout the day, and adds both the number of people coming into the City of SLO
during the AM peak period (such as people who work in the city) AND the number of people who are entering the
city during off-peak hours and exiting during peak hour (in order to include short-term visits for shopping, part-time
jobs, etc.).
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compete non-student households for rental housing in areas that were historically single-
family residential neighborhoods.
❑ Approximately 63 percent of the City’s housing stock was built before 1980. Despite its
age, the City’s housing stock is generally in fair to good condition, with little outward
evidence of substandard or blighted conditions. Illegal garage conversions and “bootleg”
second units in low- and medium-density residential neighborhoods, lack of property
maintenance, noise and parking have been the focus of citizen complaints and city code
enforcement actions.
❑ While San Luis Obispo City appears mostly “built out,” significant areas of developable
land remain that could help meet existing and future housing needs. A residential capacity
inventory conducted by the City in 2018 (see Appendix E) indicates that the City has
approximately 540 acres of vacant, underutilized, or blighted property that can
accommodate approximately 3,155 dwelling units. Much of this capacity is located within
the new development areas of San Luis Ranch and Avila Ranch.
2.40 Neighborhood Snapshots
❑ San Luis Obispo became a town in 1856. It has evolved from a small rural village of just
over 2,200 people in 1880 to a vibrant “metropolitan” area. Its diverse neighborhoods
reflect that evolution in terms of land use, population density, street width and appearance,
applicable development codes and architectural style. The oldest neighborhoods are close
to the downtown area, roughly bordered by State Highway 101, the railroad tracks and
High Street. The newest neighborhoods are in the south and southwest areas of the City.
❑ San Luis Obispo has a strong “sense of place.” It began with the founding of Mission San
Luis Obispo De Tolosa in 1772, and before that, was home to a large Chumash settlement,
attracted to the area due to its mild climate and abundant resources. San Luis Obispo has
been shaped by persons of many backgrounds, including: Native Americans, Spanish,
Mexican, Chinese, English, French, German, Irish, Portuguese, Swiss-Italian, Japanese,
Filipino, and many others. The community takes pride in its rich, multi-ethnic, and multi-
cultural heritage, and its many historic homes and commercial buildings. Architectural and
historic preservation are important considerations in many neighborhoods.
❑ San Luis Obispo’s neighborhoods traditionally have been made up mostly of single-family
housing. Low-density, detached single-family housing is still the City’s predominant
residential land use by land area. Of the roughly 8,600 acres of zoned land, residential
zones account for over 41 percent of total zoned land area within City limits. The San Luis
Obispo General Plan provides four residential zones, plus nine zones where housing is
allowed with special approval. Appendix C, Table C-1 shows the land use zones that allow
housing, their existing acreage and the ranges of density allowed.
❑ Code enforcement, neighborhood compatibility and property maintenance complaints in
low- and medium-density residential neighborhoods have remained around the same year
to year. Between 2014 and 2019, Community Development Department staff responded to
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an average of 253 code enforcement cases per year that included building and zoning code
violations, garage conversions, substandard housing, high-occupancy residential uses,
fence height, trailers, noise disturbances, parking and land use violations. Neighborhood
Services code enforcement cases, which include violations such as visible storage, failure
to screen waste containers, dead or overgrown vegetation and yard parking fluctuated
during the last 5 years with an average of 618 cases per year.
❑ Neighborhood preservation is addressed by several City departments. In 2000, the Office
of Neighborhood Services was established as part of the Police Department to address
parking, property maintenance, and noise violations. Police Department SNAP employees
(Student Neighborhood Assistance Program) conduct enforcement in neighborhoods
during evening hours and will issue warnings and citiations. An average of 2,381 parking
citations for violations in residential parking permit districts and 457 Disturbance Advisory
Cards (DACs) were issued. The Police Department is also a part of the SLO Solutions
Program which offers free conflict resolution and mediation to City residents. The program
has served an average of 1,286 residents over the last 5 years.
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Chapter 3
GOALS, POLICIES, AND PROGRAMS
3.10 Overview
This chapter includes the Housing Implementation Plan for the 6th Cycle Regional Housing Needs
Allocation (RHNA) period (2020-2028). The following goals, policies and programs are based on
an assessment of the City’s needs, opportunities, and constraints, and an evaluation of its existing
policies and programs.
3.20 Goals, Policies, and Programs
This chapter describes the City’s housing goals, policies and programs, which together form the
blueprint for housing actions during the Housing Element’s planning period. Goals, policies, and
programs are listed in top-to-bottom order, with goals at the top and being the most general
statements, working down to programs, the most specific statements of intent. Here are how the
three policy levels differ:
❑ Goals are the desired results that the City will attempt to reach over the long term. They
are general expressions of community values or preferred end states, and therefore, are
abstract in nature and are rarely fully attained. While it may not be possible to attain all
goals during this Element's planning period, they will, nonetheless, be the basis for City
policies and actions during this period.
❑ Policies are specific statements that will guide decision-making. Policies serve as the
directives to developers, builders, design professionals, decision makers and others who
will initiate or review new development projects. Some policies stand alone as directives,
but others require that additional actions be taken. These additional actions are listed under
“programs” below. Most policies have a time frame that fits within this Element’s planning
period. In this context, “shall” means the policy is mandatory; “should” or “will” indicate
the policy should be followed unless there are compelling or contradictory reasons to do
otherwise.
❑ Programs are the core of the City’s housing strategy. These include on-going programs,
procedural changes, general plan changes, rezoning or other actions that help achieve
housing goals. Programs translate goals and policies into actions.
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Goal 1: Safety
Provide safe, decent shelter for all residents.
Policies
1.1 Assist those citizens unable to obtain safe shelter on their own.
1.2 Support and inform the public about fair housing laws and programs that allow equal
housing access for all city residents.
1.3 Maintain a level of housing code enforcement to correct unsafe, unsanitary, or illegal
conditions and to preserve the inventory of safe housing, consistent with City Council’s
code enforcement priorities.
1.4 Assist owners of older residences with information on ways to repair and upgrade older
structures to meet higher levels of building safety, efficiency, and sustainability.
Programs
1.5 Correct unsafe, unsanitary, or illegal housing conditions, improve accessibility and energy
efficiency and improve neighborhoods by using Federal, State and local housing funds,
such as Community Development Block Grant Funds
1.6 Continue code enforcement to expedite the removal of illegal or unsafe dwellings, to
eliminate hazardous site or property conditions, and resolve chronic building safety
problems.
1.7 Continue to support local and regional solutions to homelessness by funding supportive
programs services, and housing solutions.
Goal 2: Affordability
Accommodate affordable housing production that helps meet the City’s Quantified
Objectives.
Policies
2.1 Income Levels for Affordable Housing households. For purposes of this Housing
Element, affordable housing is that which is obtainable by a household with a particular
income level, as further described in the City’s Affordable Housing Standards. Housing
affordable to Extremely Low, Very Low, Low, and Moderate-income persons or
households shall be considered “deed-restricted affordable housing.” Income levels are
defined as follows:
• Extremely low : 30% or less of County Area median household income
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• Very low: 31 to 50% of County Area median household income.
• Low: 51% to 80% of County Area median household income.
• Moderate: 81% to 120% of County Area median household income.
• Above moderate: 121% or more of County Area median household income.
2.2 Index of Affordability. The Index of Affordability shall be based on the City’s Affordable
Housing Standards, updated annually per the County of San Luis Obispo’s Area Median
Income determined by California Department of Housing and Community Development.
2.3 For housing to qualify as “deed-restricted affordable” under the provisions of this Element,
guarantees must be presented that ownership or rental housing units will remain affordable
for the longest period allowed by State law.
2.4 Encourage housing production for all financial strata of the City's population, as allocated
in the Regional Housing Needs Allocation, for the 6th cycle planning period. The number
of units per income category are: extremely low and very low income, 825 units; low
income, 520 units; moderate income, 604 units; and above moderate income, 1,405 units.
Programs
2.5 Continue to manage the Affordable Housing Fund so that the fund serves as a sustainable
resource for supporting affordable housing development. The fund shall serve as a source
of both grant funding and below-market financing for affordable housing projects; and
funds shall be used to support a wide variety of housing types at the following income
levels: extremely low, very low, low, and moderate, but with a focus on production
efficiency to maximize housing benefits for the City’s financial investment, and to support
high-quality housing projects that would not be feasible without Affordable Housing Fund
support.
2.6 Continue to review existing and proposed building, planning, engineering and fire policies
and standards as housing developments are reviewed to determine whether changes are
possible that could assist the production of affordable housing, or that would encourage
preservation of housing rather than conversion to non-residential uses, provided such
changes would not conflict with other General Plan policies. Such periodic reviews will
seek to remove regulations that have been superseded, are redundant, or no longer needed.
2.7 Continue to prioritize procedures that speed up the processing of applications, construction
permits, and water and sewer service priorities for affordable housing projects. City staff
and commissions shall give such projects priority in allocating work assignments,
scheduling, conferences and hearings.
2.8 Continue to coordinate public and private sector actions to encourage the development of
housing that meets the City’s housing needs.
2.9 Continue to assist with the issuance of bonds, tax credit financing, loan underwriting or
other financial tools to help develop or preserve affordable units through various programs.
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2.10 Consider updating the Affordable Housing Standards to include Homeowners’ Association
(HOA) fees and a standard allowance for utilities in the calculation for affordable rents and
home sales prices.
2.11 In conjunction with the Housing Authority and other local housing agencies, continue to
provide on-going technical assistance and education to tenants, property owners and the
community at large on the need to preserve at-risk units as well as the available tools to
help them do so.
2.12 In conjunction with housing providers and the residential design community, continue to
provide planning services as requested by the public, builders, design professionals and
developers regarding strategies to achieve affordable housing and density bonuses.
2.13 Update the Inclusionary Housing Ordinance, including Table 2A, based on findings and
recommendations in the 2020 Affordable Housing Nexus Study and conduct further
feasibility analysis in order to evaluate the City’s ability to provide affordable housing in
the proportions shown in the Regional Housing Needs Allocation, per Policy 2.4.
2.14 Continue to support increasing residential densities above state density bonus allowances
for projects that provide housing for extremely low, very low, and low-income households.
2.15 Evaluate a flexible density pilot program and initiate an update of the Zoning Regulations
and Community Design Guidelines to incorporate flexible density development options in
Downtown and portions of Upper Monterey and Mid-Higuera Special Focus Areas to
support the production of smaller residential units (150 to 600 square feet).
Goal 3: Housing Conservation
Conserve existing housing and prevent the loss of safe housing and the displacement of
current occupants.
Policies
3.1 Continue to encourage the rehabilitation, remodeling or relocation of sound or rehabitable
housing rather than demolition. Demolition of non-historic housing may be permitted
where conservation of existing housing would preclude the achievement of other housing
objectives or adopted City goals.
3.2 Discourage the removal or replacement of housing affordable to extremely low, very-low,
low- and moderate income households, and avoid permit approvals, private development,
municipal actions or public projects that remove or adversely impact such housing unless
such actions are necessary to achieve General Plan objectives and: (1) it can be
demonstrated that rehabilitation of lower-cost units at risk of replacement is financially or
physically infeasible, or (2) an equivalent number of new units comparable or better in
affordability and amenities to those being replaced is provided, or (3) the project will
correct substandard, blighted or unsafe housing; and (4) removal or replacement will not
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adversely affect housing which is already designated, or is determined to qualify for
designation as a historic resource.
3.3 Encourage the construction, preservation, rehabilitation or expansion of residential hotels,
group homes, integrated community apartments, and single-room occupancy dwellings.
3.4 Preserve historic homes and other types of historic residential buildings, historic districts
and unique or landmark neighborhood features.
3.5 Encourage and support creative strategies for the rehabilitation and adaptation and reuse of
residential, commercial, and industrial structures for housing.
Programs
3.6 Continue to encourage the creation of dwellings in the Downtown Core (C-D Zone) and
the Downtown Planning Area by continuing the “no net housing loss” program, consistent
with Chapter 17.142 (Downtown Housing Conversion Regulations) of the Zoning
Regulations.
3.7 Continue to identify residential properties and districts eligible for local, State or Federal
historic listing in accordance with guidelines and standards help property owners repair,
rehabilitate and improve properties in a historically and architecturally sensitive manner.
3.8 Continue to monitor and track affordable housing units at-risk of being converted to market
rate housing annually. Provide resources to support the Housing Authority, and local
housing agencies, purchase and manage at-risk units.
3.9 Working with non-profit organizations, faith-based organizations, or the Housing
Authority of the City of San Luis Obispo, the City will encourage rehabilitation of
residential, commercial, or industrial buildings to expand extremely low, very-low, low or
moderate income rental housing opportunities.
Goal 4: Mixed-Income Housing
Preserve and accommodate existing and new mixed-income neighborhoods and seek to
prevent neighborhoods or housing types that are segregated by economic status.
Policies
4.1 Within newly developed neighborhoods, housing that is affordable to various economic
strata should be intermixed rather than segregated into separate enclaves. The mix should
be comparable to the relative percentages of extremely low, very-low, low, moderate and
above-moderate income households in the City’s quantified objectives.
4.2 Include both market-rate and affordable units in apartment and residential condominium
projects and intermix the types of units. Affordable units should be comparable in size,
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appearance, and basic quality to market-rate units.
4.3 Extremely-low and very low-income housing, such as that developed by the Housing
Authority of the City of San Luis Obispo or other housing providers, may be located in any
zone that allows housing, and should be dispersed throughout the City rather than
concentrated in one neighborhood or zone.
4.4 In its discretionary actions, housing programs and activities, the City shall affirmatively
further fair housing and promote equal housing opportunities for persons of all economic
segments of the community.
Programs
4.5 Review new development proposals for compliance with City regulations and revise
projects or establish conditions of approval as needed to implement the mixed-income
policies.
4.6 Amend the City’s Inclusionary Housing Ordinance to require that affordable units in a
development be of similar size, number of bedrooms, character and basic quality as the
non-restricted units in locations that avoid segregation of such units, including equivalent
ways to satisfy the requirement. Also evaluate adjusting the City’s allowable sales prices
for deed-restricted affordable units per a variety of unit types.
Goal 5: Housing Variety
Provide variety in the type, size, and style of dwellings.
Policies
5.1 Encourage mixed-use residential/commercial projects in all commercial zones, especially
those close to activity centers.
5.2 New planned housing developments should provide a variety of dwelling types, sizes and
styles.
5.3 Encourage the development of a variety of “missing middle” housing types.
Program
5.4 Evaluate opportunities for promoting “missing middle” housing types (e.g. duplex, triplex,
quadplex, cottages, etc.) to increase housing options in the City.
5.5 Consider amending the Zoning Regulations to streamline the permitting process for mixed-
used projects in commercial zones.
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Goal 6: Housing Production
Facilitate the production of housing to meet the full range of community housing needs.
Policies
6.1 Consistent with the growth management portion of its Land Use Element and the
availability of adequate resources, the City will plan to accommodate up to 3,354 dwelling
units for the 6th Cycle Housing Element update in accordance with the assigned Regional
Housing Needs Allocation.
6.2 If City services must be rationed to development projects, residential projects will be given
priority over non-residential projects. Housing affordable to lower income households will
be given first priority.
6.3 City costs of providing services to housing development will be minimized. Other than for
existing housing programs encouraging housing affordable to extremely low, very-low and
low income persons, the City will not make new housing more affordable by shifting costs
to existing residents.
6.4 When sold, purchased, or redeveloped for public or private uses, City-owned properties
within the urban reserve shall include housing as either a freestanding project or part of a
mixed-use development where land is suitable and appropriate for housing.
6.5 Support the redevelopment of excess public and private utility properties for housing where
appropriately located and consistent with the General Plan.
6.6 Consistent with the City’s goal to stimulate higher density infill where appropriate in the
Downtown, Upper Monterey, and Mid-Higuera Special Focus Areas,, the City shall
consider changes to the Zoning Regulations that would allow for flexible density standards
that support the development of smaller apartments and efficiency units.
6.7 Encourage and support partnerships to increase housing opportunities specifically targeted
towards the local workforce.
6.8 To help meet the 6th cycle RHNA production targets, the City will support residential infill
development and promote higher residential density where appropriate.
6.9 Specific plans for any new area identified shall include R-3 and R-4 zoned land to ensure
sufficient land is designated at appropriate densities to accommodate the development of
extremely low-, very low- and low-income dwellings.
Programs
6.10 Maintain the General Plan and Residential Growth Management Regulations (SLOMC
17.144) exemption for new housing in the Downtown Core (C-D zone), accessory dwelling
units (ADUs), and new housing in other zones for deed-restricted extremely-low, very low,
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low- and moderate income households, pursuant to the Affordable Housing Standards.
6.11 Continue to allow flexible parking regulations for housing development, especially in the
Downtown Core (C-D Zone), including the possibilities of flexible use of city parking
facilities by Downtown residents, where appropriate, and reduced or no parking
requirements where appropriate guarantees limit occupancies to persons without motor
vehicles or who provide proof of reserved, off-site parking. Such developments may be
subject to requirements for parking use fees, use limitations and enforcement provisions.
6.12 Continue to develop incentives to encourage additional housing in the Downtown, Upper
Monterey, and Mid-Higuera Special Focus Areas, particularly in mixed-use developments.
Density based on flexible density in a project should be explored to encourage the
development of smaller units.
6.13 Consider General Plan amendments to rezone commercial, manufacturing, or public
facility zoned areas for higher-density, infill or mixed-use housing where compatible with
surrounding development. For example, areas to be considered for possible rezoning
include, but are not limited to the following sites:
A) 1499 San Luis Drive (rezone vacant and underutilized School District property)
B) 1642 Johnson Avenue (vacant School District property)
C) 4325 South Higuera Street (former P.G.&E. yard)
D) 4355 Vachell Lane (vehicle storage)
E) 2143 Johnson Avenue (adjacent to County Health Department)
F) 11950 Los Osos Valley Road (Pacific Beach High School)
G) 2500 Block of Boulevard Del Campo (adjacent to Sinsheimer Park)
H) 12165 & 12193 Los Osos Valley Road (adjacent to Home Depot)
I) 1150 & 1160 Laurel Lane (Atoll Business & Technology Center)
J) 600 Tank Farm Road (Temporary Unimproved Parking Area)
6.14 Continue to provide resources that support the SLO County Housing Trust fund’s efforts
to provide below-market financing and technical assistance to affordable housing
developers as a way to increase affordable housing production in the City of San Luis
Obispo.
6.15 Encourage residential development through infill development and densification within
City Limits and in designated expansion areas over new annexation of land.
6.16 Seek opportunities with other public and private agencies to identify excess, surplus, and
underutilized parcels for residential development.
6.17 Continue to incentivize affordable housing development consistent with SLOMC
Affordable Housing Incentives.
6.18 Continue to financially assist in the development of housing affordable to extremely low,
very-low, low- and moderate income households during the planning period using State,
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Federal, and local funding sources, with funding priority given to projects that result in the
maximum housing benefits for the lowest household income levels.
6.19 Actively seek new revenue sources, including State, Federal and private/non-profit
sources, and financing mechanisms to assist with the development of housing affordable
to extremely low, very low and low or moderate income households
6.20 Continue to update the Affordable Housing Incentives (Chapter 17.140, SLOMC) and
Zoning Regulations to ensure density bonus incentives are consistent with State Law.
6.21 Evaluate and consider updating the Subdivision Regulations to support small lot
subdivisions, ownership bungalow court development and other alternatives to
conventional subdivision design.
6.22 Continue to submit the Housing Element Annual Progress Report (APR) to the State
Department of Housing and Community Development and the Governor’s Office of
Planning and Research on or before April 1st of each year for the prior calendar year,
pursuant to Government Code Section 65400.
Goal 7: Neighborhood Quality
Maintain, preserve, and enhance the quality of neighborhoods.
Policies
7.1 Within established neighborhoods, new residential development should be of compatible
design that respects the existing neighborhood character, to enhance the quality of life for
existing and future residents.
7.2 Higher density housing should maintain high quality standards for unit design, privacy,
security, amenities, and public and private open space. Such standards should be flexible
enough to allow innovative design solutions.
7.3 New residential developments should incorporate pedestrian and bicycle linkages that
provide direct, convenient and safe access to adjacent neighborhoods, schools, parks, and
shopping areas.
7.4 Discourage the creation of walled-off or physical separations between residential enclaves,
or of separate, unconnected tracts to enhance, the formation of safe, walkable, and
enjoyable neighborhoods.
7.5 Housing should be sited to enhance safety along neighborhood streets and in other public
and semi-public areas.
7.6 The physical design of neighborhoods and dwellings should promote walking and
bicycling and preserve open spaces and views.
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7.7 Continue to encourage strategies and programs that increase long-term residency and
stabilization in neighborhoods.
7.8 Preserve the fabric, amenities, yards (i.e. setbacks), and overall character and quality of life
of established neighborhoods.
7.9 Encourage neighborhood design elements that improve overall health of residents such as
providing safe and convenient opportunities to access food outlets and active places for
recreational exercise.
Programs
7.10 Continue to utilize a diverse range of outreach methods, including email notifications, the
City’s website and social media accounts, and neighborhood outreach meetings to ensure
residents are aware of and able to participate in planning decisions affecting their
neighborhoods early in the planning process.
7.11 Continue to work directly with neighborhood groups and individuals to address concerns
pertaining to neighborhood needs, problems, trends, and opportunities for physical
improvements.
7.12 Continue to fund neighborhood improvements, including parks, sidewalks, traffic calming
devices, crosswalks, parkways, street trees and street lighting to improve aesthetics, safety
and accessibility.
7.13 Continue the City’s Neighborhood Services and Code Enforcement programs to support
neighborhood wellness.
Goal 8: Special Housing Needs
Encourage the creation and maintenance of housing for those with special housing needs.
Policies
8.1 Encourage housing development that meets a variety of special needs, including large
families, single parents, disabled persons, the elderly, students, veterans, the homeless, or
those seeking congregate care, group housing, single-room occupancy, or co-housing
accommodations, utilizing universal design.
8.2 Preserve manufactured housing or mobile home parks and support changes in these forms
of tenure only if such changes provide residents with greater long-term security or
comparable housing in terms of quality, cost, and livability.
8.3 Encourage Cal Poly University to continue to develop on-campus student housing to meet
existing and future needs and to lessen pressure on City housing supply and transportation
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systems.
8.4 Strengthen the role of on-campus housing by encouraging Cal Poly University to require
freshmen and sophomore students to live on campus.
8.5 Locate fraternities and sororities on the Cal Poly University campus. Until that is possible,
they should be located in Medium-High and High-Density residential zones near the
campus.
8.6 Encourage Cal Poly University to develop and maintain faculty and staff housing,
consistent with the General Plan.
8.7 Disperse special needs living facilities throughout the City where public transit and
commercial services are available, rather than concentrating them in one district.
8.8 Continue to support regional efforts to address homelessness.
8.9 Encourage a variety of housing types that accommodate persons with disabilities and
promote aging in place and include amenities such as visiting space, first floor accessibility,
etc.
8.10 Assist the homeless and those at risk of becoming homeless by supporting shelters,
temporary housing, and transitional housing.
Programs
8.11 Continue to provide resources that support local and regional solutions to meet the needs
of the homeless and continue to support, jointly with other agencies, shelters and programs,
such as Housing First and Rapid Rehousing, for the homeless and for displaced individuals
and families.
8.12 Continue to enforce the mobile home rent stabilization program to minimize increases in
the cost of mobile home park space rents.
8.13 Support opportunities within the City suitable for tenant-owned mobile-home parks,
cooperative or limited equity housing, manufactured housing, self-help housing, or other
types of housing that meets special needs.
8.14 Advocate developing more housing and refurbishing campus housing at Cal Poly
University.
8.15 Work with Cal Poly University Administration to secure designation of on-campus
fraternity/sorority living groups.
8.16 Continue to support “good neighbor programs” with Cal Poly State University, Cuesta
College, the City and local residents. The programs should continue to improve
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communication and cooperation between all groups about student housing in residential
neighborhoods.
8.17 Provide public educational information at various City Offices, on the City website, and
other electronic media platforms on universal design concepts (i.e. aging in place) for new
and existing residential dwellings.
8.18 Amend the Zoning Regulations to allow homeless shelters, transitional housing and
supportive housing (low barrier navigation centers) in all residential zones, areas zoned for
mixed-uses, and nonresidential zones permitting multifamily uses without a conditional
use permit to be alignment with Government Code Section 65660 (AB 101).
8.19 Continue to look for partnership opportunities with non-profit housing developers and
service providers to acquire vacant, blighted, or underutilized properties (land, retail or
commercial space, motels, apartments, housing units, mobile home parks) for conversion
into affordable permanent and supportive housing for homeless persons and families.
8.20 Continue to seek State, Federal, and local funding sources to encourage and financially
assist the development of housing for persons with developmental disabilities.
8.21 Continue to coordinate with the County Department of Social Services, Homeless Services
Oversight Council (HSOC), social service providers, and non-profit organizations to
identify, evaluate, and implement strategies to reduce the impacts of homelessness on the
City.
8.22 Work with other jurisdictions to advocate for State legislation that would: 1) provide
funding to help Cal Poly University provide adequate on-campus student housing, and 2)
allow greater flexibility for State universities and community colleges to enter into public-
private partnerships to construct student housing.
Goal 9: Sustainable Housing
Encourage housing that is resource-conserving, healthful, economical to live in,
environmentally benign, and recyclable when demolished.
Policies
9.1 Residential developments should promote sustainability consistent with the Climate Action
Plan (CAP) and California Building Energy Efficiency Standards (Title 24) in their design,
placement, and functionality.
9.2 Residential units, subdivision layouts, and neighborhood amenities should be coordinated
to support sustainable design.
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9.3 Continue to encourage the development of dwellings with energy-efficient designs,
utilizing passive and active solar features, and the use of energy-saving techniques that
exceed minimums prescribed by State law.
9.4 Continue to promote water conservation through housing and site design to help moderate
the cost of housing.
9.5 Support programs that provide financing for sustainable home upgrade projects such as
installation of solar panels, heating and cooling systems, water conservation and windows
to improve the energy efficiency of the City’s existing housing stock.
Programs
9.6 Continue to educate planning and building staff and citizen review bodies on energy
conservation issues, including the City’s energy conservation policies and Climate Action
Plan. Staff shall work with applicants to achieve the City’s energy conservation goals.
9.7 Continue to provide assurance of long-term solar access for new or remodeled housing and
for adjacent properties, consistent with historic preservation guidelines.
9.8 Implement Climate Action Plan programs that increase the production of “green” housing
units and projects and require use of sustainable and/or renewable materials, water and
energy technologies (such as, but not limited to solar, wind, or thermal).
9.9 Continue to promote building materials reuse and recycling in site development and
residential construction, including flexible standards for use of salvaged, recycled, and
“green” building materials. Continue the City’s construction and demolition debris
recycling program as described in Chapter 8.05 of the Municipal Code.
9.10 Continue to support programs for sustainable home improvements such as solar panels,
heating and cooling systems, water conservation and energy efficient windows.
Goal 10: Local Preference
Maximize housing opportunities for those individuals who are employed in business that are
located in geographic areas that are customarily included in the City’s annual jobs-housing
balance analysis.
Policies
10.1 Administer City housing programs and benefits, such as First Time Homebuyer Assistance
or affordable housing lotteries, to give preference to individuals as outlined in Policy 10.2.
10.2 Encourage, and where legally allowed, require new housing development to give
preference in the following order: 1) individuals who are employed in business that are
located in geographic areas that are customarily included in the City’s annual jobs-housing
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balance analysis, 2) individuals residing in the County, and 3) finally to individuals from
outside the County.
Programs
10.3 Continue to work with the County for any land use decisions that create significant
expansion of employment in the unincorporated areas adjacent to the City to mitigate
housing impacts on the City.
10.4 Continue to work with housing developers to include restrictions in purchase agreements
and CCRs to require for sale units to be restricted to owner-occupants for the first five
years after sale.
3.30 Implementation Tools
Resources and Incentives Available for Housing Activities
A variety of federal, state, and local programs and resources are available to help implement the
City’s housing goals and activities. These include both financial resources, as well as in-kind
incentives that help address housing needs. Tables 1, 2, and 3 list the financial resources,
incentives, and other tools that have been available to help address housing needs. Availability of
the resources is contingent on legislation; Federal, State, and local priorities; and continued
funding, which are all subject to change. At the time of the completion of this document,
facilitating housing development, especially new deed-restricted affordable housing, and reducing
homelessness, are main funding priorities at all governmental levels as evidenced by State of
California 2020 Budget, 2020-25 San Luis Obispo Region Urban County Consolidated Plan, and
the City’s Housing Major City Goal for 2019-21.The following table displays resources and
incentives currently available for housing activities:
Table 1: Local Resources and Incentives Available for Housing Activities
3 “Deed-restricted affordable housing developments” includes senior living facilities, transitional/supportive housing
developments, housing for veterans, etc.
Local Resources
Resources &
Incentives Description Eligible Activities
City of San Luis
Obispo Affordable
Housing Fund
(AHF)
In-lieu fees paid by developers to meet inclusionary housing
requirements.
Any expense in support of affordable
housing development, subject to City
Council approval and adopted
criteria (Res. No. 9263, 2001 Series).
Development
Services Fee
Deferrals
Residential development projects that meet City affordable
housing standards for extremely low, very low- and low-
income households are exempt from all fees related to
planning, engineering and building review, processing and
permits, and water and sewer meter hook-ups. Projects with
a combination of market-rate and affordable units receive
the fee waiver on a per-unit basis.
• Housing projects with deed-
restricted affordable housing3
units
• Mixed-use developments with
affordable units
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Impact Fee
Deferrals
Citywide development impact fees are deferred for
affordable residential units that: 1) exceed the minimum
required under inclusionary housing standards, or 2) are
built, owned and managed by the Housing Authority of the
City of San Luis Obispo, other government agencies, and
non-profit housing agencies.
• Housing projects with deed-
restricted affordable units
• Mixed-use developments with
affordable units
Density Bonus The City allows an increase in residential density which
varies based on the type of affordable housing (extremely
low, very low, low, or moderate income) and the percentage
of total dwellings.
• Housing projects with deed-
restricted affordable units
• Mixed-use developments with
deed-restricted affordable units
Alternative
Incentives
When developers agree to construct extremely low, very
low-, low-, moderate income housing (including senior,
veteran, transitional, etc. housing), the City may negotiate
an alternative incentive of comparable value to the density
bonus, such as exceptions to development standards, direct
financial assistance, or city installation of off-site
improvements.
• Housing projects with deed-
restricted affordable housing
units
• Mixed-use developments with
affordable units
Flexible
Development
Standards
A variety of flexible development standards are available
for deed-restricted affordable housing (including senior
housing, veteran housing, transitional housing, etc.) and for
the preservation and rehabilitation of historic homes and
apartments. These include easing of parking standards and
building setbacks, height and lot coverage exceptions (with
approval of Planned Development rezoning), and
provisions for restoring non-conforming residential
buildings following a fire or other disaster.
• Housing projects with deed
restricted affordable housing
units
• Mixed-use developments with
deed restricted affordable units
• Historic homes and apartments
• Planned residential
developments
• Non-conforming residential
restoration
Human Relations
Commission
Grants-In-Aid
(GIA) Program
The HRC’s GIA program is annually available to
financially support activities addressing homeless
prevention, including affordable and alternative housing,
supportive services, and transitional housing.
• Local non-profit-organizations
including social service and
housing providers
Mills Act Program Reduces property taxes on historic residential and
commercial properties in return for owner’s agreement to
preserve, and in some cases, improve the property.
Minimum 10 years’ participation; up to 10 properties can
be added to the program per year.
• Historic preservation
• Residential rehabilitation
• Mixed-use historic
rehabilitation
San Luis Obispo
County Housing
Trust Fund (HTF)
A nonprofit loan fund created to increase the supply of
affordable housing in San Luis Obispo for very low-, low-
and moderate income households.
• Acquisition of improved or
unimproved sites/buildings
• Construction, conversion, or
rehabilitation
• Project planning and pre-
development
First Time Home
Buyers Program
This program provides down payment assistance to eligible
households through the State of California's BEGIN
program. Under this program, low and moderate income,
first time homebuyers may qualify for a loan in an amount
not to exceed 20% of a property’s purchase price, at 3%
simple interest. Periodic payments are not required during
the term of the loan to insure an affordable monthly
payment for the borrower.
• Low and Moderate-Income
first-time homebuyers
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Table 2: State Resources and Incentives Available for Housing Activities
Technical
Assistance from
City of San Luis
Obispo and non-
profit housing
providers
Technical assistance is available to help renters,
homeowners, housing developers, and non-profit housing
developers find, design, fund or build affordable housing.
• Housing projects with deed-
restricted affordable housing
units
• Market-rate housing
developments
• Housing consumers
State Resources
California Department of Housing and Community Development
Resources &
Incentives Description Eligible Activities
Affordable
Housing and
Sustainable
Communities
Program (AHSC)
The AHSC funds land use, housing, transportation, and
land preservation projects that support infill and compact
development and reduce greenhouse gas (GHG) emissions.
• Affordable Housing
Developments
• Housing-Related Infrastructure
• Sustainable Transportation
Infrastructure
• Transportation-Related
Amenities
• Program Costs
Calhome CalHOME makes grants to local public agencies and
nonprofit corporations to assist first-time homebuyers
become or remain homeowners through deferred-payment
loans. Funds can also be used to assist in the development
of multiple-unit ownership projects
• Predevelopment, site
development, and site
acquisition for development
projects.
• Rehabilitation and acquisition
and rehabilitation of site-built
housing, and rehabilitation,
repair, and replacement of
manufactured homes
• Down payment assistance,
mortgage financing,
homebuyer counseling, and
technical assistance for self-
help
California
Emergency
Solutions and
Housing (CESH)
The CESH Program provides grant funds to eligible
applicants for eligible activities to assist persons
experiencing or at-risk of homelessness. Eligible applicants
are Administrative Entities (AEs) (local governments, non-
profit organizations, or unified funding agencies)
designated by the Continuum of Care (CoC) to administer
CESH funds in their service area.
• Housing relocation and
stabilization services
(including rental assistance)
• Operating subsidies for
permanent housing
• Flexible housing subsidy funds
• Operating support for
emergency housing
interventions
• Systems support for
homelessness services and
housing delivery systems
• Development or updating a
Coordinated Entry System
(CES), Homeless Management
Information System (HMIS),
or Homelessness Plan
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Golden State
Acquisition Fund
(GSAF)
GSAF was seeded with $23 million from the Department’s
Affordable Housing Innovation Fund. Combined with
matching funds, GSAF makes up to five-year loans to
developers
• Acquisition or preservation of
affordable housing
Home Investment
Partnerships
Program (HOME)
HOME assists cities, counties, and non-profit community
housing development organizations (CHDOs) to create and
retain affordable housing for lower-income renters or
owners. At least 50 percent of the amount is awarded to
rural applicants and 15 percent is set aside for
CHDOs. Funds are available in California communities
that do not receive HOME funding directly from the U.S.
Department of Housing and Urban Development.
• Housing rehabilitation, new
construction, and acquisition
and rehabilitation, for single-
family & multifamily projects
• Predevelopment loans to
CHDOs
• Must benefit lower-income
renters or owners
Housing for a
Healthy California
(HHC)
HHC provides funding on a competitive basis to deliver
supportive housing opportunities to developers using the
federal National Housing Trust Funds (NHTF) allocations
for operating reserve grants and capital loans.
• NHTF Applicants:
Organization, agency, or other
entity (including a public
housing agency, a for-profit
entity, or a nonprofit entity)
that is an Owner or Developer
as defined by 24 CFR 93.2
• NHTF Uses: Acquisition
and/or new construction
• SB2 Applicants: Counties
• SB2 Uses: Acquisition, new
construction or reconstruction
and rehabilitation,
administrative costs,
capitalized operating subsidy
reserves (COSR) and rental
subsidies
Housing-Related
Parks Program
The Housing-Related Parks Program funds the creation of
new park and recreation facilities or improvement of
existing park and recreation facilities that are associated
with rental and ownership projects that are affordable to
very low- and low-income households.
• Creation of new park and
recreations facilities or
improvement of existing park
and recreation facilitates
Infill
Infrastructure
Grant Program
(IIG)
IIG provides grant funding for infrastructure improvements
for new infill housing in residential and/or mixed-use
projects. Funds are made available through a competitive
application process.
• New construction,
rehabilitation, demolition,
relocation, preservation, and
acquisition of infrastructure
Joe Serna, Jr.,
Farmworker
Housing Grant
(FWHG)
FWHG makes grants and loans for development or
rehabilitation of rental and owner-occupied housing for
agricultural workers with priority for lower-income
households
• Activities incurring costs in the
development of rental housing
for agricultural workers.
Local Early
Action Planning
(LEAP) Grants
The Local Early Action Planning (LEAP) program assists
cities and counties with planning for housing through
providing over-the-counter, non-competitive planning
grants.
• Reimbursement for activities
that include the preparation
and adoption of planning
documents, process
improvements that accelerate
housing production, and
facilitate compliance in
implementing the sixth cycle
of the regional housing need
assessment (RHNA).
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Local Housing
Trust Fund
Program (LHTF)
Helps finance local housing trust funds dedicated to the
creation or preservation of affordable housing.
• Loans for construction of low-
income affordable housing
projects
Mobile home Park
Resident
Ownership
Program
(MPROP)
Funds awarded to mobile-home park tenant organizations
to convert mobile-home parks to resident ownership.
• Mobile-home park acquisition
and development
Multifamily
Housing Program
(MHP)
MHP makes low-interest, long-term deferred-payment
permanent loans to developers of affordable multifamily
rental and transitional housing projects for lower income
households.
• New construction,
rehabilitation, or acquisition
and rehabilitation of permanent
or transitional rental housing,
and the conversion of non-
residential structures to rental
housing
National Housing
Trust Fund
National Housing Trust Fund is a permanent federal
program with dedicated source(s) of funding not subject to
the annual appropriations. The funds can be used to
increase and preserve the supply of affordable housing, with
an emphasis on rental housing for extremely low-income
households (ELI households, with incomes of 30 percent of
area median or less).
• New construction
No Place Like
Home
The No Place Like Home Program will have $2 billion in
bond proceeds to invest in the development of permanent
supportive housing for persons who are in need of mental
health services and are experiencing homelessness, chronic
homelessness, or who are at risk of chronic homelessness.
• To acquire, design, construct,
rehabilitate, or preserve
permanent supportive housing
for persons who are
experiencing homelessness,
chronic homelessness or who
are at risk of chronic
homelessness, and who are in
need of mental health services.
Pet Assistance and
Support (PAS)
Program
Pet Assistance and Support provides funds to homeless
shelters for shelter, food and basic veterinary services for
pets owned by individuals experiencing homelessness.
• Shelter, food, and basic
veterinary services for pets
owned by individuals
experiencing homelessness,
along with staffing and
liability insurance related to
providing those services
Predevelopment
Loan Program
Provide predevelopment capital loans to finance the start of
low income housing projects.
• Construct, rehabilitate,
convert, or preserve low-
income housing
• Site control, acquisition,
technical studies/reports/plans,
and fees
California Housing Finance Agency
Resources &
Incentives Description Eligible Activities
California
Homebuyer’s
Down payment
Assistance
Program
(CHDAP)
Collaboration with lenders to offer below market rate down-
payment loans.
• Down-payment loans to
moderate-, low-, and very low-
income households
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Affordable
Housing
Partnership
Program (AHPP)
This program allows borrowers to combine a CalHFA first
mortgage loan with down payment and/or closing cost
assistance from an Affordable Housing Program Partner.
• Loans to moderate-, low-, and
very low-income
Housing Enabled
by Local
Partnerships
HELP Program and other below-market-rate financing and
deferred loans for local government and non-profits
producing affordable housing development.
• Low- and moderate income
affordable single- and multi-
family housing
CaHLIF –
California
Housing Loan
Insurance Fund
Provides primary mortgage insurance for hard-to-qualify
borrowers, expanding home ownership opportunities.
• First-time homebuyers
• Low- and moderate- income
homebuyers
• Workforce housing loans
CalHFA
Conventional
Loans
Various programs providing lower cost loans, such as a 30-
year fixed, interest only PLUS, 40-year fixed
• First-time homebuyers
• Low- and moderate- income
home buyers
CalHFA Down-
payment
Assistance
Various programs providing loans for down payments, such
as California Homebuyer's Down-payment Assistance
Program (CHDAP)
• First-time homebuyers
• Low- and moderate- income
home buyers
Section 811
Project Rental
Assistance
Section 811 Project Rental Assistance offers long-term
project-based rental assistance funding from the U.S.
Department of Housing and Urban Development (HUD)
through a collaborative partnership among the California
Housing Finance Agency (CalHFA), Department of Health
Care Services (DHCS), Department of Housing and
Community Development (HCD), Department of
Developmental Services (DDS) and California Tax Credit
Allocation Committee (TCAC).
• Rental assistance for lower
income households
Self-Help Builder
Assistance
Program
Provides a source of financing to nonprofit 501(c)(3)
corporations who use self-help type construction for
affordable housing
• Site acquisition
• Site development,
• Home construction
Builder-Lock
Program
Builders/Developers may purchase forward commitments
for permanent first mortgage financing for CalHFA-eligible
borrowers tied to their construction/marketing program at
single family new-home developments anywhere in the
state.
• Housing construction
Mortgage Credit
Certificate
Federal tax credit for low- and moderate income
homebuyers who have not owned a home in the past three
years.
• First-time homebuyer's
assistance
Office of the State Treasurer
California Tax
Credit Allocation
Committee
(CTCAC): Low-
Income Housing
Tax Credits
(LIHTCs)
The CTCAC administers the federal and state LIHTC
Programs. Both programs were created to promote private
investment in affordable rental housing for low-income
Californians.
• Persons Seeking Housing
• Developers Building Housing
• Owners and Managers of
Existing Tax Credit Projects
•
California Tax
Credit Allocation
Committee
(CTCAC):
Historic
Rehabilitation Tax
Credits (HRTCs)
CTCAC and the CA Office of Historic Preservation also
administer the HRTC program which provide a 10-20%
one-time, IRS tax credit on eligible rehabilitation costs for
pre-1936 and National Register historic properties.
• Rental housing rehabilitation
• Mixed-use projects
• Seismic strengthening
• Ownership housing ineligible
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Table 3: Federal Resources and Incentives Available for Housing Activities
California Debt
Limit Allocation
Committee
(CDLAC):
Various Programs
Federal law limits how much tax-exempt debt a state can
issue in a calendar year for private projects that have a
qualified public benefit. This cap is determined by a
population-based formula. CDLAC was created to set and
allocate California’s annual debt ceiling, and administer the
State’s tax-exempt bond program to issue the debt.
CDLAC’s programs are used to finance affordable housing
developments for low-income Californians, build solid
waste disposal and waste recycling facilities, and finance
direct loans used by in-need college students and their
parents.
• Residential Rental Project
Program
• Single-Family First-Time
Homebuyer Program
Home Improvement and
Rehabilitation Program
Federal Resources
United States Department of Housing and Urban Development
Resources &
Incentives Description Eligible Activities
Assisted-Living
Conversion
Program (ALCP)
To provide private nonprofit owners of eligible
developments with a grant to convert some or all of the
dwelling units in the project into an Assisted Living Facility
(ALF) for the frail elderly.
• Physical conversion of existing
project units, common and
services space
Community
Development
Block Grants
(CDBG)
Grant awarded to the City annually on a formula basis to
fund housing and economic development for low- and
moderate income persons.
• Affordable housing
construction
• Historic preservation
• Property acquisition for
housing
• Housing rehabilitation
• Public services and facilities
• Code enforcement
• Fair housing activities
• Economic development
Emergency
Capital Repairs
Program
Provides grants for substantial capital repairs to eligible
multifamily projects that are owned by private nonprofit
entities.
• Rehabilitation
• Modernization
• Retrofitting
HOME
Investment
Partnership
(HOME) Program
Grant program specifically for housing. • Single- or multi-family housing
acquisition/rehab/construction
• CHDO Assistance
• Administration
Emergency
Shelter Grant
Program (ESG)
Grant awarded on an annual formula basis for shelter and
services to homeless persons.
• Homelessness prevention
• Continuum of care
• Operating expenses
Housing
Opportunities for
Persons With
AIDS (HOPWA)
Funds available county-wide for supportive services and
housing for persons with HIV/AIDS.
• Rental assistance
• Social services
• Housing
Shelter Plus Care
(S+C)
Grants for rental assistance, in combination with supportive
services from other sources, to homeless people.
• Tenant-based rental assistance
• Sponsor-based rental assistance
• Project-based rental assistance
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Chapter 4
REGIONAL VISION FOR HOUSING
In early 2020, local agencies adopted a San Luis Obispo Countywide Regional Compact to
establish a united regional framework to unlock our potential to develop an adequate supply of
housing and infrastructure that support our economic prosperity.
4.10 Overview
San Luis Obispo County is a rural coastal county with seven vibrant cities and numerous
unincorporated communities that depend on collaborative relationships between and among
government agencies, community organizations, and residents to solve the region’s significant
issues including inadequate supply of affordable housing and resilient water, wastewater, and
transportation infrastructure and resources.
The County and all seven Cities are working collaboratively to develop the region’s first Regional
Infrastructure and Housing Strategic Action Plan (Regional Plan) that will identify actions to
address these issues. A key component of the Regional Plan is the integration of efforts to address
critical housing and related infrastructure needs. As part of the Housing Element update process,
representatives of the County, seven Cities and San Luis Obispo Council of Governments
(SLOCOG) developed this Chapter to showcase the ongoing commitment of each agency to this
collaborative effort. This Chapter presents a regional vision and policies focused specifically on
fostering regional collaboration to plan and develop housing and supportive infrastructure.
4.20 Alignment with Regional Compact
This effort is guided by the San Luis Obispo Countywide Regional Compact (Regional Compact).
The Regional Compact, adopted by each jurisdiction in early 2020, outlines six shared regional
goals to guide collaborative resolution of underlying housing and infrastructure needs:
Goal 1. Strengthen Community Quality of Life – We believe that our Region’s quality of life
depends on four cornerstones to foster a stable and healthy economy for all: resilient infrastructure
and resources, adequate housing supply, business opportunities, and educational pathways.
Goal 2. Share Regional Prosperity – We believe that our Region should share the impacts and
benefits of achieving enduring quality of life among all people, sectors and interests.
Goal 3. Create Balanced Communities – We believe that our Region should encourage new
development that helps to improve the balance of jobs and housing throughout the Region,
providing more opportunities to residents to live and work in the same community.
Goal 4. Value Agriculture & Natural Resources – We believe that our Region’s unique agricultural
resources, open space, and natural environments play a vital role in sustaining healthy local
communities and a healthy economy, and therefore should be purposefully protected.
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Goal 5. Support Equitable Opportunities – We believe that our Region should support policies,
actions, and incentives that increase housing development of all types, available to people at all
income levels.
Goal 6. Foster Accelerated Housing Production – We believe that our Region must achieve
efficient planning and production of housing and focus on strategies that produce the greatest
impact.
4.30 Policies
It will take regional collaboration and local actions to realize the vision and goals outlined in the
Regional Compact. Below is an initial list of aspirational regional policies that further the Regional
Compact vision, in addition to local policies. By listing these below, it does not mandate any
individual agency to implement actions, but rather offers ways that the County, cities, SLOCOG,
and other partners can consider moving forward, together. In addition, and consistent with each
Housing Element cycle, each of the seven cities and the County has the opportunity to choose to
implement local policies and programs that help to support their achievement of its RHNA, and if
an agency chooses to, can also support the Regional Compact vision and goals in a way that works
for its jurisdiction and community. See Chapter 3 above for Local Policies and Programs for The
City of San Luis’ anticipated actions during this Housing Element cycle.
R-1: Promote awareness and support of regional efforts that further housing and infrastructure
resiliency by utilizing community engagement, and consistent and transparent communication.
R-2: Encourage an adequate housing supply and resilient infrastructure, services, and resources to
improve the balance of jobs and housing throughout the Region.
R-3: Develop inter-agency partnerships as appropriate to implement goals and policies related to
housing and infrastructure.
R-4: Coordinate State, Federal, and other funding opportunities for housing and infrastructure
development throughout the Region.
R-5: Encourage developers to sell newly constructed housing units to individuals residing or
employed within the area of the development (a city or the County) first before selling to
individuals from outside the County, to promote local preference.
R-6: Encourage rental units be prioritized for long term residents rather than short term users or
vacation rentals.
R-7: Support housing development that is located within existing communities and strategically
planned areas.
R-8: Encourage regional collaboration on a menu of housing types, models, and efforts to support
streamlined approvals for such developments (i.e. Accessory Dwelling Units, etc.).
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4.40 Moving Forward
The County, cities, SLOCOG, and other partners engaged in housing and infrastructure
development will continue to collaborate on efforts moving forward – recognizing the benefits of
working together to achieve an enduring quality of life among the region’s people, sectors and
interests. This ongoing collaboration will include learning from each other and sharing possible
tools, policies and actions that can allow the collective region to move towards our adopted
Regional Compact vision. Ongoing collaborative efforts will be described in the Regional Plan,
anticipated to be complete in 2021, and related regional efforts will live outside of each individual
agency’s Housing Element.
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Chapter 5
QUANTIFIED OBJECTIVES
5.10 Overview of Quantified Objectives
State housing law requires that each jurisdiction identify the number of housing units that will be
planned, built, rehabilitated, and preserved during the Housing Element’s planning period. These
projections are termed “quantified objectives.” Quantified housing objectives allow the
community to evaluate its progress toward meeting key housing needs and help prioritize planning
and funding efforts. They are based on the jurisdiction’s regional housing needs assessment and
corresponding regional housing needs allocation. However, San Luis Obispo cannot guarantee
these objectives will be met, given limited financial resources, costs to provide public facilities to
serve new development, and the growing, statewide gap between housing costs and incomes.
Meeting the City’s quantified housing objectives will depend, in part, upon real estate market
forces, developer & lender financial decisions, and availability of local, State and Federal funding.
5.20 Regional Housing Needs Allocation (RHNA) Objectives
As noted in Chapter 1, Section 2.20, under State law, each city and county in California is required
to develop programs designed to meet their share of the surrounding region's housing needs for all
income groups, as determined by the region’s council of governments. The Regional Housing
Needs Allocation (RHNA) process seeks to ensure that each jurisdiction accepts responsibility,
within its physical and financial capability to do so, for the housing needs of its residents and for
those people who might reasonably be expected to move there. State housing law recognizes that
housing need allocations are goals that jurisdictions seek to achieve; however, they are not
intended as production quotas. These allocations are then included in each jurisdiction’s Housing
Element so that plans, policies, and standards may be created to help meet housing needs within
the element's planning term.
The City participated in regional discussions facilitated by the San Luis Obispo Council of
Governments (SLOCOG) and negotiated allocating the region’s 6th Cycle RHNA distribution of
10,810 housing units amongst all 8 local jurisdictions, as shown in Table 4 below.
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Table 4: 6th Cycle Regional Housing Needs Allocation (1/1/19 to 12/31/28)
Very
Low
Income
24.6%1
Low
Income
15.5%1
Moderate
Income
18.0%1
Above
Moderate
Income
41.9%1
Totals
Percent
Jurisdiction
RHNA to Total
RHNA Number of Units
Arroyo Grande 170 107 124 291 692 6%
Atascadero 207 131 151 354 843 8%
Grover Beach 91 57 66 155 369 3%
Morro Bay 97 60 70 164 391 4%
Paso Robles 356 224 259 607 1,446 13%
Pismo Beach 113 71 82 193 459 4%
San Luis Obispo 825 520 603 1,406 3,354 31%
Unincorp. County 801 505 585 1,365 3,256 30%
Totals 2,660 1,675 1,940 4,535 10,810 100%
Source: San Luis Obispo Council of Governments (SLOCOG), 2019
1Percent of total housing need in each jurisdiction.
The City has a new total RHNA allocation of 3,354 housing units to plan for in the new 6th Cycle
Housing Element. The transition from a 5-year to an 8-year cycle, HCD has allowed the City 10
years to meet the new 6th Cycle RHNA allocation. This means that the City is allowed to count all
issued building permits from January 1, 2019 until December 31, 2028 as credit towards achieving
the 6th Cycle RHNA allocation. These units are then subtracted from the City’s total RHNA
allocation to determine the balance of site capacity that must be identified for housing.
To credit units affordable to lower- and moderate-income households toward the RHNA
requirement, a jurisdiction must demonstrate the units are affordable based on at least one of the
following:
• Subsidies, financing, deed restrictions or other mechanisms that ensure affordability (e.g.,
MHP, HOME, LIHTC financed projects or deed-restricted inclusionary units);
• Actual rents; and
• Actual sales prices.
Table 5 shows the number of new housing units that have been issued a building permit between
January 1, 2019 and December 31, 2019. These units are credited toward meeting the City’s RHNA
during the eight-year planning period from December 31, 2020 to December 31, 2028. The City
has prioritized housing production as a main focus and has a goal to issue building permits to
satisfy all remaining 2,817 housing units left for this 6th RHNA Cycle, as displayed in the Table 5.
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Table 5: RHNA Credit Captured in 2019 (1/1/2019 to 12/31/2019)
Income Level
(% of County
Median
Income)
6th Cycle
RHNA
Building Permitted Units Issued by
Affordability Total Units by
Income Level
Total Units
Remaining
by Income
Level
Year 1
(2019)
Year 2
(2020)
Years 3 – 10
(2021 - 2028)
Extremely Low
& Very Low 825 0 n/a n/a 0 825
Low 520 6 n/a n/a 6 514
Moderate 603 8 n/a n/a 8 595
Above Moderate 1,406 523 n/a n/a 523 883
Total Units 3,354 537 n/a n/a 537
Total Remaining for RHNA
Period: 2,817
Source: Community Development Department, 2019
5.30 Rehabilitation and Preservation of At-Risk Units
Dwellings built with some form of government assistance or subsidy typically must remain
affordable to extremely low, very low, low, or moderate-income households for a specific period.
As part of the housing element update, State law requires an analysis of assisted housing
developments that may lose their affordability provisions during the next 10 years due to
termination of subsidy contracts, mortgage prepayment, or expiration of restrictions on use. These
units are said to be at-risk of conversion to market-rate housing. In addition, jurisdictions also must
describe measures to prevent at-risk from converting to market rate. There are several reasons why
government-assisted housing might convert to market-rate housing, including expiring subsidies,
mortgage prepayments, or most commonly, expiration of affordability and resale restrictions.
The analysis applies to “assisted housing developments”, or multi-family rental housing that was
developed with or that receives governmental assistance under a number of Federal, State or local
housing programs. Such developments may include units receiving funding under a variety of
government programs, such as HUD Section 8, HUD Section 202, IRS Section 42 (Tax Credit
projects), Community Development Block Grants, and local programs using inclusionary housing
requirements, in-lieu fees, and density bonuses.
Appendix F includes an inventory of subsidized or assisted housing developments in San Luis
Obispo. Nevertheless, Housing Element program 3.9, and quantified objectives have been
incorporated into the Housing Element to discourage affordable housing removals and to help
track and preserve these affordable units. Program 3.10 calls for the City to work with the Housing
Authority of the City of San Luis Obispo, non-profit housing agencies and community housing
development organizations to help preserve at-risk units and rehabilitate residential and compatible
commercial buildings to expand affordable housing opportunities and prevent the loss of
affordable housing.
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a) Inventory of At-Risk Units
Based on information provided by the City’s Housing Authority, local non-profit housing
providers, and the State Housing and Community Development Department, there are three
affordable housing developments at risk of losing its affordability restrictions and converting to
market rate between January 2021 and January 2028: the Anderson Hotel and Adriance Court,
further discussion is provided below.
Table 6: At-Risk Units in San Luis Obispo, 2020-2028
Project Housing Type Owner/Property
Manager
Expiration
Date
Assisted
Units
Adriance Court
Low and Moderate
Income, Supportive
Housing
Access Support
Network
(formerly AIDS
Support
Network)
May 2026 9
Anderson Hotel Very Low Income,
Senior, Disabled HASLO March 2021 68
Poinsettia Street
Apartments Low Income HASLO January 2020 20
Total Assisted Units 97
Source: HASLO, City of San Luis Obispo
Adriance Court
Nine units comprise the Adriance Court community, owned and managed by Access Support
Network (ASN). The units were designed specifically to allow Persons Living With AIDS
(PLWA) to remain as independent as possible during the course of their illness while continuing
to reside in the City. All units are affordable to low- and moderate-income individuals, whether
or not they have been diagnosed with HIV/AIDS. For those residents that have been diagnosed
with HIV/AIDS, ASN provides supportive services throughout the course of their illness. In 1996,
the City loaned ASN Community Development Block Grant funding to acquire and operate the
property for no less than 30 years. The affordability covenant is due to expire in May of 2026, but
it is anticipated that this property could be eligible for a tax credit award for rehabilitation, thus
preserving the units.
Anderson Hotel
The Anderson Hotel was remodeled in the 1970’s to convert the original hotel rooms to small
efficiency apartments, each with a bathroom and kitchenette, designed for one or two persons. The
units were made affordable utilizing an ongoing HUD grant program. HASLO master leased the
Anderson Hotel in 2001 to provide affordable rental housing for very-low income persons,
primarily elderly and disabled persons.
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Rents at the Anderson Hotel are made affordable to very-low income elderly and disabled residents
through HUD Section 8 Rental Assistance Vouchers. These vouchers, along with tenant rent
payments (30 percent of their income), and the commercial rent collected on the street level, help
pay for on-going operating costs, and the master lease payments to the property owner, 995
Partnership. Several items place this affordable housing at risk: 1) the property is privately owned
and there is no regulatory
agreement on the property or
long-term commitment assuring
its ongoing use as affordable
housing, 2) the HUD operating
grant funding is awarded
annually, and could be
discontinued or the owner could
opt out, 3) under the master lease
terms, HASLO’s required
payments to the owner, 995
Partnership, are increasing at a
rate that exceeds increases in
grant and tenant rental revenue,
jeopardizing financial
sustainability, 4) the property is
a 1926 building in need of
substantial long-term capital
improvements which are not
covered under the HUD grant,
and not paid by the property
owner under the terms of the
master lease.
However, HASLO anticipates
they can exercise a friendly
eminent domain to acquire the
property at the appraised fair
market value, in order to
continue operating the units as
affordable. HASLO also
anticipates that this process will
have a limited impact for the
current tenants because of HUD
Protection Vouchers already
being utilized by the residents.
Poinsettia Street Apartments
Poinsettia Street Apartments is an older, well-maintained Low-Income Housing Tax Credit
(LIHTC) property consisting of 20 units, managed by HASLO. It had a 30-year LIHTC affordable
regulatory agreement, that expired January 1, 2020; however, the current Section 8 Rent Subsidy
Figure 2: Poinsettia Street Apartments
Source: Community Development Department, 2020
Figure 2: Anderson Hotel
Source: Community Development Department, 2014
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protections were extended to the residents until January 1, 2021. To preserve these units as
affordable, HASLO anticipates applying for another LIHTC award in 2020 to rehabilitate the
property and thus extend the affordability covenant for an additional 55-years. HASLO also
anticipates that they might be able to build more units on this site due to recent state law changes.
b) Potential Financing for Preserving At-Risk Units
Funding sources that could be used for acquisition and rehabilitation of these properties include:
A) City Affordable Housing Funds
B) Countywide Housing Trust Fund
C) Urban County CDBG Funds (City and County of San Luis Obispo funds)
D) Urban County HOME Investment Partnership funds (HOME Program)
E) Low-Income Housing Tax Credits and Historic Housing Tax Credits
F) State Multi-Family Housing Program (low-interest loans and grants)
G) Federal Home Loan Bank Affordable Housing Program grants
Some of the methods for addressing this challenge will be further addressed through Policies and
Programs 2.9, 2.11, 3.2, 3.4, 3.7 and 3.9 that focus on preserving affordable dwellings.
c) Preservation Successes from 5th Cycle Housing Element
A total of 279 affordable housing units were successfully preserved during the past 5th Cycle
Housing Element planning period and are discussed below:
1. Judson Terrace Homes – This affordable housing community is comprised of 107 studio
and one-bedroom apartments exclusively for seniors. The development offers a variety of
resources for their tenants including meals, health services, and educational classes
operated by American Baptist Homes of the West (ABHOW). The owners of the facility
had an expiring 40-year affordability covenant through HUD; thus in 2018, the City
worked with the California Municipal Finance Agency (CMFA) to issue a tax-exempt loan
to help a new owner acquire and rehabilitate the 107-unit property. In doing so, a new 55-
year affordability covenant was executed, and the units were successfully rehabilitated and
preserved.
2. “RAD 175” Conversion Project – In 2019, the Housing Authority of the City of San Luis
Obispo (HASLO) successfully rehabilitated 14 existing public housing sites, thus
preserving a total of 172 affordable housing units and creating 3 new units. HASLO
utilized HUD’s Rental Assistance Demonstration (RAD) program, which is a program
created to give public housing authorities (PHAs) a powerful tool to preserve and improve
public housing properties and address the $26 billion-dollar nationwide backlog of deferred
maintenance. This RAD 175 Conversion allowed HASLO to leverage public and private
debt and equity in order to reinvest in San Luis Obispo’s public housing stock. The 14
properties that were renovated and preserved included:
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Table 7: HASLO RAD 175 Conversion Properties
Current Name of
Facility Location of Property Number of Rental
Housing Units
King-South-Branch 448 South Street, 441 Branch Street, and
2173 King Street 8
Toro Gardens 1600 Toro Street 20
Hathway Apartments 508-520 Hathway Street 22
Highland Apartments 478-480 High Street 11
Palm View Apartments 11650-11690 Los Osos Valley Road 20
Leff Street Apartments 456-493 Leff Street 20
High Street 228 High Street 6
Loma Vista Apartments 2929 Augusta Street 16
Harris 2126 Harris Street 3
Royal Way 1497 Royal Way 8
Southwood 1240 Southwood Drive 3
Upham 711 Upham Street 3
Puerta Del Sol 4280 South Higuera 15
Arbor Place 1172 Leff Street, 1175 Islay Street and
1635 Toro Street 20
TOTAL 175
Source: City of San Luis Obispo, Community Development Department, 2020
5.40 Quantified Objectives Summary
Quantified objectives describe number of units, by income category, to be built, rehabilitated,
preserved (at-risk housing), and conserved; and the number of housing units to receive financial
assistance to ensure affordability. During the Housing Element's 6th cycle planning period, the City
will accommodate a net increase of 3,354 dwellings. The quantified objectives promote the
development of housing that meets affordability standards for the income groups in the same
proportion as the RHNA allocation, and emphasize production of multi-family, higher density
housing, where appropriate. Although not counted toward meeting the City’s RHNA allocation
because it is located just outside city limits, housing developed by Cal Poly University on and
adjacent to the campus on State land has helped and will continue to help meet City housing needs.
Table 6 summarizes all the City’s quantified housing objectives for the eight-year planning period.
Although the quantified objectives are theoretically achievable, they are not specific development
quotas. The City intends to use the financial, planning, and administrative resources at its disposal
to accomplish these objectives, but cannot guarantee they will be achieved given limited financial
resources, economic uncertainty, independent financial decisions regarding housing development,
and the large gap between housing cost and median County residents’ incomes. Achieving the
quantified objectives will hinge largely upon private development decisions and the City’s ability
to leverage additional Federal, State or local funding to meet extremely low, very-low, low- and
moderate-income housing needs.
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City of San Luis Obispo Draft Housing Element, July 2020
39
Table 8: Summary of Quantified Objectives, January 2021 - December 2028
Activity Extremely
Low
Very
Low Low Moderate Total
RHNA PROGRESS
New Construction 825 514 595 883 2,817
REHABILITATION & PRESERVATION
At-risk units rehabbed
& preserved 68 20 9 - 97
FINANCIAL ASSISTANCE
Grant Funds (e.g.
CDBG, HOME) & City
Affordable Housing
Fund (in-lieu fees)
39 67 110 216
Source: City of San Luis Obispo, Community Development Department, 2019.
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CITY OF SAN LUIS OBISPO INITIAL STUDY ENVIRONMENTAL CHECKLIST 2020 PAGE 1
INITIAL STUDY
ENVIRONMENTAL CHECKLIST FORM
For Plan No. EID-0218-2020 & GENP-0217-2020
1.Project Title: General Plan Housing Element Update
2.Lead Agency Name and Address:
City of San Luis Obispo
Community Development Department
919 Palm Street
San Luis Obispo, CA 93401
3.Contact Person and Phone Number:
Rachel Cohen, Associate Planner
(805) 781-7574
4.Project Location:
Citywide, City of San Luis Obispo
5.Project Sponsor’s Name and Address:
City of San Luis Obispo
Community Development Department
919 Palm Street
San Luis Obispo, CA 93401
6.General Plan Designations:
N/A
7.Zoning:
N/A
8.Description of the Project:
The project consists of the 6th Cycle Housing Element Update, an eight-year plan which explains the City’s housing
goals, policies, and programs. It updates the current Housing Element which was adopted in 2015. Once adopted,
the Housing Element becomes part of the General Plan, which guides public and private decisions regarding
housing, development review, land use, City budgets and capital improvement programs. The Draft includes
policies and programs intended to increase housing opportunities for extremely low, very-low, low- and moderate-
income households, while accommodating growth in a manner consistent with goals and policies contained in the
Land Use Element and other elements of the General Plan. The content of housing elements is prescribed und er
State housing law, and this draft has been prepared to include the required sections and information.
The draft update addresses changes in State housing law and in regional housing needs. State, regional and local
housing costs, supply and needs have changed since 2015, as evidenced by current information on real estate prices,
affordable housing, and the widening “gap” between rental and purchase housing costs and consumers’ incomes.
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Although the update retains many of the same policies and programs in the 2015 Housing Element, there are also
new policies and programs that address these changing conditions.
9. Project Entitlements:
General Plan Amendments approving the 6th Cycle Housing Element.
10. Surrounding Land Uses and Settings:
Citywide.
11. Have California Native American tribes traditionally and culturally affiliated with the project area
requested consultation pursuant to Public Resources Code Section 21080.3.1? If so, is there a plan for
consultation that includes, for example, the determination of significance of impacts to tribal cultural
resources, procedures regarding confidentiality, etc.?
The California Native American Heritage Commission (NAHC) supplied a list of local Native America individuals
and/or groups with interests and knowledge about the area. The City did not receive any requests for consultation
from contacted individuals.
12. Other public agencies whose approval is required:
The 6th Cycle Draft Housing Element Update must be referred to the California Department of Housing and
Community Development (HCD) for a determination of consistency with State housing law.
ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED
The environmental factors checked below would be potentially affected by this project, involving at least one impact that is a
“Potentially Significant Impact” as indicated by the checklist on the following pages.
☐ Aesthetics ☐ Greenhouse Gas Emissions ☐ Public Services
☐ Agriculture and Forestry
Resources ☐ Hazards and Hazardous Materials ☐ Recreation
☐ Air Quality ☐ Hydrology and Water Quality ☐ Transportation
☐ Biological Resources ☐ Land Use and Planning ☐ Tribal Cultural Resources
☐ Cultural Resources ☐ Mineral Resources ☐ Utilities and Service Systems
☐ Energy ☐ Noise ☐ Wildfire
☐ Geology and Soils ☐ Population and Housing ☐ Mandatory Findings of
Significance
FISH AND WILDLIFE FEES
☒
The Department of Fish and Wildlife has reviewed the CEQA document and written no effect determination
request and has determined that the project will not have a potential effect on fish, wildlife, or habitat (see
attached determination).
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☐ The project has potential to impact fish and wildlife resources and shall be subject to the payment of Fish and
Game fees pursuant to Section 711.4 of the California Fish and Game Code. This initial study has been
circulated to the California Department of Fish and Wildlife for review and comment.
STATE CLEARINGHOUSE
☒ This environmental document must be submitted to the State Clearinghouse for review by one or more State
agencies (e.g. Cal Trans, California Department of Fish and Wildlife , Department of Housing and Community
Development). The public review period shall not be less than 30 days (CEQA Guidelines 15073(a)).
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DETERMINATION (To be completed by the Lead Agency):
On the basis of this initial evaluation:
I find that the proposed project COULD NOT have a significant effect on the environment, and a NEGATIVE ~ DECLARATION will be prepared .
I find that although the proposed project could have a significant effect on the environment , there will not be a
significant effect in this case because revisions in the project have been made, by or agreed to by the project D
proponent. A MITIGATED NEGATIVE DECLARATION will be prepared.
I find that the proposed project MAY have a significant effect on the environment, and an ENVIRONMENT AL D IMPACT REPORT is required.
I find that the proposed project MAY have a "potentially significant" impact(s) or "potentially significant unless
mitigated" impact(s) on the environment, but at least one effect (I) has been adequately analyzed in an earlier
document pursuant to applicable legal standards, and (2) has been addressed by mitigation measures based on the D
earlier analysis as described on attached sheets. An ENVIRONMENTAL IMPACT REPORT is required, but it
must analyze only the effects that remain to be addressed
I find that although the proposed project could have a significant effect on the environment, because all potentially
significant effects (1) have been analyzed adequately in an earlier EIR or NEGATIVE DECLARATION pursuant
to applicable standards, and (2) have been avoided or mitigated pursuant to that earlier EIR or NEGATIVE D
DECLARATION, including revisions or mitigation measures that are imposed upon the proposed project, nothing
further is required.
s~ Date I
For: Michael Codron
Community Development Director
CITY OF SAN LUIS OBISPO INITIAL STUDY ENVIRONMENTAL CHECKLIST 2020 PAGE 4
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EVALUATION OF ENVIRONMENTAL IMPACTS
1. A brief explanation is required for all answers except “No Impact” answers that are adequately supported by the
information sources a lead agency cites in the parentheses following each question. A “No Impact” answer is
adequately supported if the referenced information sources show that the impact simply does not apply to projects like
the one involved (e.g. the project falls outside a fault rupture zone). A “No Impact” answer should be explained where
it is based on project-specific factors as well as general standards (e.g. the project will not expose sensitive receptors
to pollutants, based on a project-specific screening analysis).
2. All answers must take account of the whole action involved, including off -site as well as on-site, cumulative as well
as project-level, indirect as well as direct, and construction as well as operational impacts.
3. Once the lead agency has determined that a particular physical impact may occur, then the checklist answers must
indicate whether the impact is potentially significant, less than significant with mitigation, or less than significant.
"Potentially Significant Impact' is appropriate if there is substantial evidence that an effect may be significant. If there
are one or more "Potentially Significant Impact" entries when t he determination is made, an EIR is required.
4. “Negative Declaration: Less Than Significant with Mitigation Incorporated” applies where the incorporation of
mitigation measures has reduced an effect from "Potentially Significant Impact" to a "Less than Sign ificant Impact."
The lead agency must describe the mitigation measures, and briefly explain how they reduce the effect to a less than
significant level (mitigation measures from Section 19, "Earlier Analysis," as described in (5) below, may be cross-
referenced).
5. Earlier analysis may be used where, pursuant to the tiering, program EIR, or other CEQA process, an effect has been
adequately analyzed in an earlier EIR or negative declaration (Section 15063 (c) (3) (D)). In this case, a brief
discussion should identify the following:
a) Earlier Analysis Used. Identify and state where they are available for review.
b) Impacts Adequately Addressed. Identify which effects from the above checklist were within the scope of and
adequately analyzed in an earlier document pursuant to applicable legal standards, and state whether such effects
were addressed by mitigation measures based on the earlier analysis.
c) Mitigation Measures. For effects that are “Less than Significant with Mitigation Measures Incorporated,” describe
the mitigation measures which were incorporated or refined from the earlier document and the extent to which
they addressed site-specific conditions for the project.
6. Lead agencies are encouraged to incorporate into the checklist references to information sourc es for potential impacts
(e.g. general plans, zoning ordinances). Reference to a previously prepared or outside document should, where
appropriate, include a reference to the page or pages where the statement is substantiated.
7. Supporting Information Sources: A source list should be attached, and other sources used or individuals contacted
should be cited in the discussion.
8. The explanation of each issue should identify:
a) the significance criteria or threshold, if any, used to evaluate each question; and
b) the mitigation measure identified, if any, to reduce the impact to less than significance
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1. AESTHETICS
Except as provided in Public Resources Code Section 21099, w ould the project:
a) Have a substantial adverse effect on a scenic vista? 2 ☐ ☐ ☐ ☒
b) Substantially damage scenic resources, including, but not
limited to, trees, rock outcroppings, open space, and historic
buildings within a local or state scenic highway?
14, 15 ☐ ☐ ☐ ☒
c) In non-urbanized areas, substantially degrade the existing visual
character or quality of public views of the site and its
surroundings? (Public views are those that are experienced from
publicly accessible vantage point). If the project is in an
urbanized area, would the project conflict with applicable
zoning and other regulations governing scenic quality?
☐ ☐ ☒ ☐
d) Create a new source of substantial light or glare which would
adversely affect day or nighttime views in the area? 2 ☐ ☐ ☒ ☐
Evaluation
a), b) Policies in the Draft Housing Element Update encourage the development of housing in urbanized areas within the City’s
limits and sphere of influence. The Draft Housing Element policies are consistent with Land Use Element (LUE) policies in
directing growth into those areas and sites that can accommodate residential development based on size, shape, topography,
zoning and environmental sensitivity, as well as consistent with the Circulation Element and the Conservation Open Space
Element that outline scenic roadways and vistas. New residential development would be guided by existing development
standards regarding building height, creek and property line setbacks, and avoidance of important site and environmental feat ures
such as historic features or buildings, rock outcroppings, open space, and heritage trees.
c) The General Plan contains goals and policies that address the visual character and quality of new development. Within the
Community Design Guidelines, General Principle 2.1, Site Design, states that each project should be designed with careful
consideration of the site character and constraints and minimize changes to natural features rather than altering a site to
accommodate a stock building plan. The Architectural Review Commission (ARC) uses this, among other policies and
guidelines, to determine if new development is designed in a manner that is consistent with its surrounding structures and
environment. The ARC and the development review process ensure, through required project modifi cations, conditions of
approval or mitigation measures, that development plans are consistent with visual character and quality guidelines prior to
project approvals.
d) Residential development projects are subject to the Night Sky Ordinance, which include s operational and development
standards that mitigate light or glare impacts to a less than significant level.
Conclusion
Less than significant impact.
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2. AGRICULTURE AND FORESTRY RESOURCES
In determining whether impacts to agricultural resources are signifi cant environmental effects, lead agencies may refer to the
California Agricultural Land Evaluation and Site Assessment Model (1997) prepared by the California Dept. of Conservation as
an optional model to use in assessing impacts on agriculture and farmlan d. In determining whether impacts to forest resources,
including timberland, are significant environmental effects, lead agencies may refer to information compiled by the Californi a
Department of Forestry and Fire Protection regarding the state’s inventory of forest land, including the Forest and Range
Assessment Project and the Forest Legacy Assessment project; and forest carbon measurement methodology provided in Forest
Protocols adopted by the California Air Resources Board. Would the project:
a) Convert Prime Farmland, Unique Farmland, or Farmland of
Statewide Importance (Farmland), as shown on the maps
prepared pursuant to the Farmland Mapping and Monitoring
Program of the California Resources Agency, to non -
agricultural use?
5 ☐ ☐ ☐ ☒
b) Conflict with existing zoning for agricultural use, or a
Williamson Act contract? 5 ☐ ☐ ☐ ☒
c) Conflict with existing zoning for, or cause rezoning of, forest
land (as defined in Public Resources Code section 12220(g)),
timberland (as defined by Public Resources Code section 4526),
or timberland zoned Timberland Production (as defined by
Government Code section 51104(g))?
2 ☐ ☐ ☐ ☒
d) Result in the loss of forest land or conversion of forest land to
non-forest use? 5 ☐ ☐ ☐ ☒
e) Involve other changes in the existing environment which, due to
their location or nature, could result in conversion of Farmland,
to non-agricultural use or conversion of forest land to non-forest
use?
1 ☐ ☐ ☐ ☒
Evaluation
a), c), d), e) The City of San Luis Obispo is in the central portion of the County's coastal agricultural region. The City is, for the
most part, urbanized with only a few small areas still engaged in agricultural production and forest land limited to areas zoned
in the City as Open Space. Land Use Element Policy 1.8.1 calls for the preservation of prime agricultural land, productive
agricultural land, and potentially productive agricultural land within the Urban Reserve and City limits. The Draft Housing
Element follows the Land Use Element in terms of where housing should be developed and promotes compact urban form to
reduce urban sprawl and loss of productive agricultural or forest lands. Agricultural and Conservation/Open Space designated
lands allow limited residential use at very low densities of one dwelling per five or more acres, which is only suitable for rural
housing. The Draft Housing Element Update will not result in the conversion of prime or unique farmland or forest land or
involve other changes that would lead to conversion of farmland to non -agricultural uses or loss of forest land or conversion of
forest land to non-forest use because it does not identify any new land that is subject to urbanization, rezoning from agricultural
or forest land use to residential use or expansion of the City’s Urban Reserve Line beyond that already anticipated in the General
Plan.
b) The City has established an Agricultural land use designation (AG) in its General Plan to help preserve important agricultural
land. The General Plan has allocated sufficient land for urban uses to achieve housing goals and meet the Regional Housing
Needs Allocation without expanding the current Urban Reserve Line into agricultural lands in the unincorporated County area.
Draft Housing Element Policy 6.15 states the City will encourage residential development focused on infill development and
densification within City Limits and designated expansion areas over new annexation of residential land to maximize housing
potential in the City. There are no properties within City limits under Williamson Act contracts.
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Conclusion
No impact.
3. AIR QUALITY
Where available, the significance criteria established by the applicable air quality management district or air pollution control
district may be relied upon to make the following determinations. Would the project:
a) Conflict with or obstruct implementation of the applicable air
quality plan?
1, 5, 12,
13 ☐ ☐ ☐ ☒
b) Result in a cumulatively considerable net increase of any criteria
pollutant for which the project region is non -attainment under
an applicable federal or state ambient air quality standard?
12 ☐ ☐ ☐ ☒
c) Expose sensitive receptors to substantial pollutant
concentrations? 1, 2 ☐ ☐ ☐ ☒
d) Result in other emissions (such as those leading to odors)
adversely affecting a substantial number of people? ☐ ☐ ☒ ☐
Evaluation
The project site is located in the South Central Coast Air Basin (the basin), which includes San Luis Obispo, Santa Barbara, and
Ventura Counties. The project site is under the jurisdiction of the San Luis Obispo County Air Pollution Control Dis trict
(SLOCAPCD). As the local air quality management agency, SLOCAPCD is required to monitor air pollutant levels to ensure
that state and federal air quality standards are met and, if they are not met, to develop strategies to meet the standards. D epending
on whether or not the standards are met or exceeded, San Luis Obispo County is classified as being in “attainment” or “non -
attainment.” Under state law, air districts are required to prepare a plan for air quality improvement for pollutants for whi ch the
district is in non-attainment. San Luis Obispo County is designated as non -attainment for the state standards for suspended
particulate matter (PM10) and ozone (California Air Resources Board [CARB] 2017 ). San Luis Obispo County is designated as
attainment or unclassified for all other federal and state standards.
In March 2002, SLOCAPCD adopted the 2001 Clean Air Plan. In July 2005, SLOCAPCD adopted a Particulate Matter Report
in order to update the jurisdiction’s control measures for particulate matter, as required by S.B. 656. In 2015, SLOCAPCD
adopted an Ambient Air Monitoring Network Assessment in order to identify and analyze its historic and current air monitoring
sites. The Ambient Air Monitoring Network Assessment was updated in June 2019. In September 2019, SLOCAPCD adopted
an Ozone Emergency Episode Plan, in compliance with the Federal Clean Air Act, in order to provide the basis for taking actions
when ambient ozone concentrations reach a level that could endanger public health in San Luis Obispo County.
a), b) A significant impact would only occur if the project resulted in a cumulatively considerable net increase of any criteria
pollutant for which the project region is non-attainment. The Draft Housing Element Update will not conflict or obstruct
implementation of SLOCAPCD 2001 Clean Air Plan (CAP). The CAP calls for building compact communities to limit urban
sprawl, mix complementary land uses, such as commercial services with higher density housing, increasing residential and
commercial densities along transit corridors, and increase pedestrian-friendly and interconnected streetscapes, helping to make
alternative means of transportation more convenient. The Draft Housing Element Update is consistent with this plan. Policies
9.1 through 9.5 promote sustainable development that will help reduce greenhouse gas emissions. Housing Element policies 7.4,
7.5, and 7.7 support walkable and bikeable neighborhoods, connected to shopping, schools and other neighborhoods. The
Community Design Guidelines and Noise Element policies requi re setbacks and the installation and use of HVAC systems for
residences located along high traffic corridors. These mitigations also serve to separate residences from potential exposure to
vehicle-related pollutants.
c) The project will not result in a significant impact to air quality. The Housing Element Update anticipates population and
housing growth consistent with the Land Use Element based on household size and dwelling unit potential for this planning
period. The Draft has numerous policies and programs designed to promote compact urban growth, encourage mixed use,
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promote housing within walking or biking distance of employment, and encourage downtown housing close to jobs, services,
government, recreation and cultural opportunities.
d) The Draft Housing Element would not result in other emissions (such as those leading to odors) adversely affecting a
substantial number of people because it does not establish new land uses or propose the development of any specific project .
Individual residential development projects, especially those within a mixed-use project, would be required to comply with the
City’s odor ordinance (SLOMC Chapter 8.22) and be subject to review based on the local Air Pollution Control District regarding
the acceptability of adjacent land uses and addresses compatibility of land uses in mixed-use developments.
Conclusion
Less than significant impact.
4. BIOLOGICAL RESOURCES
Would the project:
a) Have a substantial adverse effect, either directly or through
habitat modifications, on any species identified as a candidate,
sensitive, or special status species in local or regional plans,
policies, or regulations, or by the California Department of Fish
and Game or U.S. Fish and Wildlife Service?
1, 5 ☐ ☐ ☐ ☒
b) Have a substantial adverse effect on any riparian habitat or other
sensitive natural community identified in local or regional plans,
policies, regulations, or by the California Department of Fish
and Game or U.S. Fish and Wildlife Service?
☐ ☐ ☐ ☒
c) Have a substantial adverse effect on state or federally protected
wetlands (including, but not limited to, marsh, vernal pool,
coastal, etc.) through direct removal, filling, hydrological
interruption, or other means?
2 ☐ ☐ ☐ ☒
d) Interfere substantially with the movement of any native resident
or migratory fish or wildlife species or with established native
resident or migratory wildlife corridors, or impede the use of
native wildlife nursery sites?
2 ☐ ☐ ☐ ☒
e) Conflict with any local policies or ordinances protecting
biological resources, such as a tree preservation policy or
ordinance?
5 ☐ ☐ ☐ ☒
f) Conflict with the provisions of an adopted Habitat Conservation
Plan, Natural Community Conservation Plan, or other approved
local, regional, or state habitat conservation plan?
5 ☐ ☐ ☐ ☒
Evaluation
a)b)c) The General Plan Land Use and Conservation and Open Space Elements guide the preservation of biological resources.
These resources include creeks and adjacent riparian corridors, vernal pools, marshes, endangered species or species of special
concern, hillsides, open space and park areas, and Laguna Lake. General Plan Conservation and Open Space Element Policy
7.3.3 says that wildlife habitat and corridors that provide continuous wildlife habitat shall be preserved. The Draft Housing
Element Update is consistent with those documents and anticipates new dwellings only in those areas suitable for residential
development, with adequate guarantees to preserve natural and biological resources as part of new development. It says housing
should be prevented on sites that are unsuitable for development due to the presence of open space resources, or natural or
manmade hazards.
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Individual development projects will be subject to development review by City staff and advisory bodies to ensure compliance
with pertinent creek and wetland policies. Zoning Regulation Section 17.70.030 (Creek Setbacks) says that projects shall be
consistent with the General Plan and require the protection of scenic resources, water quality and natural creekside habitat
including opportunities for wildlife habitation, rest and movement; therefore, all new residential development must comply wi th
the Creek Setback Ordinance and must avoid sensitive site resources. New projects are evaluated for compliance with the Creek
Setback Ordinance and modifications are required through the development review process, conditions of approval or mitigation
measures, as appropriate to ensure that any potential impacts are less than significant.
d) Development projects will be subject to applicable City standards and guidelines, the State and Federal Endangered Species
Act (ESA), the Clean Water Act (CWA) and other local, state and federal regulatory programs to ensur e significant impacts have
mandated mitigation measures. Conservation and Open Space Element Policy 7.7.8 ensures the protection of wildlife corridors.
The City conditions development permits in accordance with applicable mitigation measures to ensure that important corridors
for wildlife movement and dispersal are protected. Important featured corridors include riparian corridors, wetlands, lake
shorelines, and protected natural areas with cover and water.
e) Conservation and Open Space Element Policy 7.5.1 states that significant trees making substantial contributions to natural
habitat or to the urban landscape due to their species, size or rarity shall be protected and their removal will be subject to specific
criteria and mitigation requirements. Additionally, Municipal Code Chapter 12.24 outlines the City’s Tree regulations. Any
housing projects proposed on sites with significant trees will be subject to these regulations and Conservation and Open Space
Element policy and mitigation.
f) The Draft Housing Element does not conflict with any adopted Conservation Plan.
Conclusion
No Impact.
5. CULTURAL RESOURCES
Would the project:
a) Cause a substantial adverse change in the significance of a
historic resource pursuant to §15064.5 ?
14, 15,
16 ☐ ☐ ☐ ☒
b) Cause a substantial adverse change in the significance of an
archaeological resource pursuant to §15064.5 ? 5, 14 ☐ ☐ ☐ ☒
c) Disturb any human remains, including those interred outside of
formal cemeteries? 5, 14 ☐ ☐ ☐ ☒
Evaluation
a) Preservation of cultural resources is an important General Plan goal. The Conservation and Open Space Element (COSE)
Chapter 3 includes policies and programs for the preservation of cultural resources. COSE Policies 3.3.1 and 3.3.5 discuss that
significant historic and architectural resources should be identified, preserved and rehabilitated and that the City shall identify
and protect neighborhoods or districts having historical character due to the collective effect of Contributing or Master Lis t
historic properties. The Draft Housing Element Update is consistent with COSE and any new residential development, additions,
or rehabilitation will have to be reviewed to be consistent with these policies. In addition to compliance with the General Plan,
new residential projects are evaluated for compliance with the Historic Preservation Ordinance (Municipal Code Chapter 14.01)
and the Historic Preservation Program Guidelines through the development review process, conditions of approval or mitigation
measures, as appropriate to ensure that any potential impacts are less than significant.
b) The City has established criteria to identify significant archeological resources and encourage the preservation of these
archaeological resources and sites. The City’s Archaeological Resource Preservation Guidelines are used to determine significant
resources. These guidelines support General Plan COSE Policy 3.5.1 which says the City shall protect known and potential
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archaeological resources. Meeting the community’s housing needs is also a key community goal, and the Draft Housing Element
Update seeks to balance these sometime competing needs. It contains policies addressing the need to rehabilitate rather than
demolishing housing and states that new residential development is to be compatible design with established neighborhoods. As
new housing is developed, the Archaeological Resource Preservation Guidelines state that those features or characteristics that
create or reinforce San Luis Obispo’s “sense of place” are to be preserved. Individual residential development projects will be
evaluated for site-specific cultural resources and where necessary, appropriate mitigation included to protect those resources.
b), c) The City’s Archeological Resource Preservation Guidelines include specific criteria that address the discovery of unique
resources or human remains during construction excavation. Development that is proposed on sensitive sites, which are mapped,
requires a Phase 1 study to determine the likelihood of discoverin g resources during construction. These existing measures,
which are in place for development city-wide, are sufficient to prevent impacts to archeological or paleontological resources, or
any discovered human remains.
Conclusion
No Impact.
6. ENERGY
Would the project:
a) Result in potentially significant environmental impact due to
wasteful, inefficient, or unnecessary consumption of energy
resources, during project construction or operation?
1, 3, 34 ☐ ☐ ☐ ☒
b) Conflict with or obstruct a state or local plan for renewable
energy or energy efficiency? 1, 3, 24 ☐ ☐ ☐ ☒
Evaluation
Pacific Gas & Electric Company (PG&E) has historically been the primary electricity provider for the City. In October of 2018 ,
the City Council committed to joining the Monterey Bay Community Power (MBCP) and since January 2020, MBCP is the
City’s primary electricity provider. MBCP provides 100 percent carbon -free electricity.
The California Building Code (CBC) contains standards that regulate the method of use, properties, performance, or types of
materials used in the construction, alteration, improvemen t, repair, or rehabilitation of a building or other improvement to real
property. The CBC includes mandatory green building standards (CALGreen) for residential and nonresidential structures, the
most recent version includes the 2019 Building Energy Efficiency Standards. These standards focus on four key areas: smart
residential photovoltaic systems, updated thermal envelope standards (preventing heat transfer from the interior to the exter ior
and vice versa), residential and nonresidential ventilation requirements, and non-residential lighting requirements.
The City is currently developing local amendments to the 2019 CBC to encourage all -electric new buildings. When paired with
Monterey Bay Community Power's carbon free electricity supply, all electric new buildings are carbon free and avoid health and
safety issues associated with fossil fuels and GHGs. At its meeting on Tuesday, September 3, 2019, the City Council introduce d
the Clean Energy Choice Program and in June 2020 they voted to adopt the ordinance. Unlike other cities that are banning natural
gas entirely, the proposed Clean Energy Choice Program provide s options to people who want to develop new buildings with
natural gas. New projects wishing to use natural gas will be required to build more efficient and higher performing buildings and
offset natural gas use by performing retrofits on existing buildings or by paying an in-lieu fee that will be used for the same
purpose.
The City COSE establishes goals and policies to achieve energy conservation and increase use of cleaner, renewable, and local ly
controlled energy sources. These goals include increasing the use of sustainable energy sources and reducing reliance on non-
sustainable energy sources to the extent possible and encouraging the provision for and protection of solar access. Policies
identified to achieve these goals include, but are not limited to, use of best available practices in energy conservation,
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procurement, use and production, energy -efficiency improvements, pedestrian- and bicycle-friendly facility design, fostering
alternative transportation modes, compact, high-density housing, and solar access standards.
The City Climate Action Plan also identifies strategies and policies to increase use of cleaner and renewable energy resource s in
order to achieve the City’s greenhouse gas emissions reduction target. These strategies include promoting a wide range of
renewable energy financing options, incentivizing renewable energy generation in new and existing developments, and
increasing community awareness of renewable energy programs.
a) Energy conservation is an important General Plan goal and, as noted above, the COSE outlines goals and policies to achieve
energy conservation and increase use of cleaner, renewable, and locally controlled energy sources. The Draft Housing Element
Update is consistent with COSE and includes Policy 9.1 which supports that new residential projects are consistent with the
City’s CAP and the State’s CalGreen requirements. The Draft Housing Element itself does not establish new land uses or propose
the development of any specific project that would require energy to ope rate or an increase in vehicle trips that would result in a
substantial increase in off-site energy consumption. Individual residential development projects will be evaluated for site-specific
compliance with the CBC, CalGreen, and any other requirements included as part of the City’s Municipal Code, CAP and General
Plan.
b) The Draft Housing Element would not conflict with goals and policies set forth in the City’s CAP or General Plan associated
with renewable energy or energy efficiency and would not res ult in a conflict with or obstruction of a state or local plan for
renewable energy or energy efficiency. The City of San Luis Obispo Climate Action Plan (CAP) was adopted by the City Council
in 2012. The CAP promotes pedestrian- and bicycle-friendly neighborhoods, diverse transportation options, energy efficiency,
reduction in waste and increased recycling, protection of open space, and quantifies the estimated greenhouse gas (GHG)
reductions savings of such programs. Draft Housing Element Policy 7.4 supports new residential developments that incorporate
pedestrian and bicycle linkages that provides direct, convenient and safe access to adjacent neighborhoods, schools, parks, and
shopping areas and Policy 9.1 states that that residential developments should promote sustainability consistent with the Climate
Action Plan (CAP) and CALGreen in their design, placement, and functionality.
Conclusion
No impact.
7. GEOLOGY AND SOILS
Would the project:
a) Directly or indirectly cause potential substantial adverse effects,
including the risk of loss, injury or death involving:
i. Rupture of a known earthquake fault, as delineated on the most
recent Alquist-Priolo Earthquake Fault Zoning Map issued by
the State Geologist for the area or based on other substantial
evidence of a known fault? Refer to Division of Mines and
Geology Special Publication 42.
6, 35, 36 ☐ ☐ ☒ ☐
ii. Strong seismic ground shaking? 6, 35 ☐ ☐ ☒ ☐
iii. Seismic-related ground failure, including liquefaction? 6 ☐ ☐ ☐ ☒
iv. Landslides? 6 ☐ ☐ ☐ ☒
b) Result in substantial soil erosion or the loss of topsoil? 1, 6 ☐ ☐ ☐ ☒
c) Be located on a geologic unit or soil that is unstable, or that
would become unstable as a result of the project, and potentially
result in on- or off-site landslide, lateral spreading, subsidence,
liquefaction or collapse?
6 ☐ ☐ ☐ ☒
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d) Be located on expansive soil, as defined in Table 1802.3.2 of the
California Building Code (2013), creating substantial direct or
indirect risks to life or property?
6 ☐ ☐ ☐ ☒
e) Have soils incapable of adequately supporting the use of septic
tanks or alternative waste water disposal systems where sewers
are not available for the disposal of waste water?
1 ☐ ☐ ☐ ☒
f) Directly or indirectly destroy a unique paleontological res ource
or site or unique geologic feature? 14, 36 ☐ ☐ ☐ ☒
Evaluation
a)b)c)d)e) San Luis Obispo County, including the City of San Luis Obispo, is located within the Coast Range Geomorphic
Province, which extends along the coastline from central California into Oregon. This region is characterized by extensive
folding, faulting, and fracturing of variable intensity. In general, the folds and faults of this province comprise the prono unced
northwest trending ridge-valley system of the central and northern coast of California.
The City Safety Element identifies active, potentially active, and inactive mapped and inferred faults with the potential to affect
the city in the event of rupture. The Los Osos Fault, adjacent to the City of San Luis Obispo, is identified under the State of
California Alquist-Priolo Fault Hazards Act and is classified as active. The West Huasna, Oceanic, and Edna faults are considered
potentially active and present a moderate fault rupture hazard to developments near them. The San Andreas Fault and the offshore
Hosgri Fault, which present the most likely source of ground shaking for San Luis Obispo, have a high probability of producin g
a major earthquake within an average lifespan. The highest risk from ground shaking is found on deep soils that were deposited
by water, are geologically recent, and have many pore spaces among the soil grains. These are typically in valleys.
Faults capable of producing strong ground shaking motion in San Luis Obispo include the Los Oso s, Point San Luis, Black
Mountain, Riconada, Wilmar, Pecho, Hosgri, La Panza, and San Andreas faults. Engineering standards and building codes set
minimum design and construction methods for structures to resist seismic shaking. Based on the Department of Conservation
Fault Activity Map and the City Safety Element Earthquake Faults – Local Area map, the project site is not located within or
within the immediate vicinity of an active fault zone.
The Draft Housing Element Update is consistent with the Safety Element and the 2019 San Luis Obispo County Multi-
Jurisdictional Hazard Mitigation Plan (MJHMP) which includes policies to prevent development on sites with natural hazards,
such as geological or seismic risks, including soil erosion, landslides, or liquefaction. The Draft Housing Element itself does not
establish new land uses or propose the development of any specific project , however individual residential development projects
will be evaluated for site-specific compliance with City policies and regulations. City policies and development standards
encourage housing where appropriately zoned land exists with the necessary public services and infrastructure (or can be served),
and where the land is physically and environmentally suited for residential development. Community Development Department
(planning and building) review of projects will ensure they are developed in a manner that is safe and consistent with City
standards, guidelines and policies.
e) The City maintains a sewer system that has adequate capacity to meet current housing needs, plus residential growth
anticipated during the planning period.
f) The City’s Archeological Resource Preservation Guidelines include specific criteria that address the discovery of un ique
resources or paleontological resources during construction excavation. Development that is proposed on sensitive sites, which
are mapped, requires a Phase 1 study to determine the likelihood of discovering resources during construction. The Draft Hous ing
Element itself does not establish new land uses or propose the development of any specific project, however individual reside ntial
development projects will be evaluated for site-specific paleontological resource or site or unique geologic feature and where
necessary, appropriate mitigation included to protect those resources.
Conclusion
Less than significant impact.
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8. GREENHOUSE GAS EMISSIONS
Would the project:
a) Generate greenhouse gas emissions, either directly or indirectly,
that may have a significant impact on the environment? 12 ☐ ☐ ☒ ☐
b) Conflict with an applicable plan, policy or regulation adopted
for the purpose of reducing the emissions of greenhouse gases? 3, 12, 24 ☐ ☐ ☐ ☒
Evaluation
a), b) Greenhouse gases (GHG) are any gases that absorb infrared radiation in the atmosphere, and are different from the criteria
pollutants discussed in Section III, Air Quality, above. The primary GHGs that are emitted into the atmosphere as a result of
human activities are carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and fluorinated gases. In 2012, the City of San
Luis Obispo established a Climate Action Plan (CAP) that identified measures and implementation strategies in order to achieve
the City’s GHG reduction target of 1990 emission levels by 2020. In addition, the City is currently developing a plan for achieving
carbon neutrality by 2035. The City of San Luis Obispo 2005 Community Wide GHG emissions inventory showed that 50% of
the city’s GHG emissions came from transportation, 22% came from commercial and industrial uses, 21% came from residential
uses, and 7% from waste.
Statewide legislation, rules, and regulations have been adopted to reduce GHG emissions from significant sources. Senate B ill
(SB) 32 and Executive Order (EO) S-3-05 extended the State’s GHG reduction goals and required the California Air Resources
Board (ARB) to regulate sources of GHGs to meet a state goal of reducing GHG emissions to 1990 levels by 2020, 40 percent
below 1990 levels by 2030, and 80 percent below 1990 levels by 2050. Other statewide policies adopted to reduce GHG
emissions include AB 32, SB 375, SB 97, Clean Car Standards, Low Carbon Fuel Standard, Renewable Portfolio Standard,
California Building codes, and the California Solar Initiative.
Plans, policies, and guidelines have also been established at the regional and local levels to address GHG emissions and clim ate
change effects within the city. In March 2012, the SLOAPCD approved thresholds for Greenhous e Gas (GHG) emission impacts,
and these thresholds have been incorporated into the CEQA Air Quality Handbook and updated in 2017 with a clarification
memorandum. The Bright-Line Threshold of 1,150 Metric Tons CO2/year (MT CO2e/year) is the most applicable GHG
threshold for most projects. Table 1-1 in the SLOAPCD CEQA Air Quality Handbook (updated November 2017) provides a list
of general land uses and the estimated sizes or capacity of those uses expected to exceed the GHG Bright Line Threshold of
1,150 Metric Tons of carbon dioxide per year (MT CO2/year). Projects that exceed the criteria or are within ten percent of
exceeding the criteria presented in Table 1-1 are required to conduct a more detailed analysis of air quality impacts. It is important
to note the Bright-Line Threshold of 1,150 MT CO2/year was developed to meet the state goal of reducing GHG emissions to
1990 levels by 2020.
As described in the 2012 CAP, State policies to reduce GHG emissions associated with energy use would reduce anticipate d
emissions associated with future development projects. In addition, the City’s General Plan, Community Design Guidelines, and
Zoning Regulations include policies and standards that reduce energy use from buildings and equipment, including design
standards that maximize passive ventilation and cooling systems and use of natural lighting within buildings, and energy
efficiency performance standards for proposed buildings taller than 50 feet. Development projects within the Draft Housing
Element Update planning period would be required to comply with these existing policies and standards.
The Draft Housing Element Update would result in development consistent with the anticipated growth under the inventory and
assumptions of the 2012 CAP and the 2014 Land Use Element. The Draft includes policies and programs designed to promote
compact urban growth, encourage mixed use, promote housing within walking or biking distance of employment, and encourage s
housing in the Downtown and the Mid-Higuera and Upper Monterey Focus Areas close to jobs, services, government, recreation
and cultural opportunities. Draft program 6.1 5 states the City will encourage residential development focused on infill
development and densification. Policies 9.1 through 9.5 promote sustainable development that will help reduce greenhouse gas
emissions. Policies 7.4, 7.5 and 7.7 support walkable and bikeable neighborhoods, connected to shopping, schools and other
neighborhoods.
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Conclusion
Less than significant impact.
9. HAZARDS AND HAZARDOUS MATERIALS
Would the project:
a) Create a significant hazard to the public or the environment
through the routine transport, use, or disposal of hazardous
materials?
1, 2, 6,
26 ☐ ☐ ☐ ☒
b) Create a significant hazard to the public or the environment
through reasonably foreseeable upset and accident conditions
involving the release of hazardous materials into the
environment?
☐ ☐ ☐ ☒
c) Emit hazardous emissions or handle hazardous or acutely
hazardous materials, substances, or waste within one-quarter
mile of an existing or proposed school?
☐ ☐ ☐ ☒
d) Be located on a site which is included on a list of hazardous
materials sites compiled pursuant to Government Code Section
65962.5 and, as a result, would it create a significant hazard to
the public or the environment?
26 ☐ ☐ ☐ ☒
e) For a project located within an airport land use plan or, where
such a plan has not been adopted, within two miles of a public
airport or public use airport, would the project result in a safety
hazard or excessive noise for people residing or working in the
project area?
25 ☐ ☐ ☒ ☐
f) Impair implementation of or physically interfere with an
adopted emergency response plan or emergency evacuation
plan?
26, 31 ☐ ☐ ☐ ☒
g) Expose people or structures, either directly or indirectly, to a
significant risk of loss, injury, or death involving wildland fires? 3, 6, 26 ☐ ☐ ☐ ☒
Evaluation
a)b)c)d) The General Plan Land Use and Safety Elements are the primary policy documents addressing hazards and hazardous
materials. Within the Safety Element, Policy 5.2 states that new residential projects should minimize people’s exposure to
hazardous materials and substances. Policy 5.3 says the City should avoid using hazardous materials in its own operations to the
greatest extent practical and will follow all established health and safety practices when they are used. In addition, the 2019 San
Luis Obispo County Multi-Jurisdictional Hazard Mitigation Plan (MJHMP) addresses all hazards applicable to the City
including: earthquakes, wildland fires, adverse weather, hazardous materials events, floods, and landslides. The MJHMP also
addresses mitigation strategies to best reduce negative effects from these identified hazards. The Draft Housing Element Update
is consistent with these documents.
e) Airport compatibility issues are of special concern because much of the City’s vacant residential land is located in the southern
part of the City, near the San Luis Obispo County Airport. The Airport Land Use Commission adopted the San Luis Obispo
County Airport Land Use Plan (ALUP) to guide where and what types of land uses are compatible with airport operations.
Generally, residential development is not appropriate within flight approach and take-off areas, and where safety or noise
considerations dictate greater spacing between housing and airport activities. As a part of the 2014 Land Use Element, certain
areas of the City became a part of an Airport Overlay Zone (AOZ) that allows for different residential densities than are outlined
in the ALUP. Zoning Regulations Chapter 17.64 ensures that land uses and development within the airport overlay zone (AOZ)
are compatible with existing and future airport operations, consistent with State Aeronautics Act, State law, Federal Aviation
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Administration Regulations, and guidance of the California Airport Land Use Planning Handbook . Individual developments are
evaluated for their consistency with the ALUP or the AOZ depending on where the project site is located . The anticipated
residential growth, outlined is the Draft Housing Element, is located outside of airport hazard areas, or wi thin areas where
residential use is allowed with appropriate design and safety considerations. There are no private airstrips within the City’s Urban
Reserve line.
f) Fire Code regulations, emergency response and evacuation plans are reviewed with any new residential development to ensure
the safety of the community.
g) Safety Element Policy 3.0 addresses adequate fire services and Policy 3.1 addresses housing and wildland fire safety. It sa ys
that developments should be approved only when adequate fire suppression services and facilities are available. Maintaining
consistency with Fire Department standards will ensure the safety and well -being of the community and exclude development
from areas of “very high” wildland fire hazards. In 2019 the City implemented the Community Wildfire Protection Plan (CWPP).
The CWPP provides a citywide strategic planning level framework for hazardous fuel assessment and reduction within the City
of San Luis Obispo so that structures and assets are provided additional protection, reducing the potential of ignitions and contains
goals of improving fire prevention and suppression efforts, reducing hazardous fuels, restoring fire -adapted ecosystems, and
promoting community assistance. In addition, Chapter 15.04.100 of the City’s Municipal Code (Construction and Fire Prevention
Regulations) provides amendments to the California Fire Code stating specific development standards required for fire safety
and prevention within the City of San Luis Obispo.
Conclusion
Less than significant impact.
10. HYDROLOGY AND WATER QUALITY
Would the project:
a) Violate any water quality standards or waste discharge
requirements or otherwise substantially degrade surface or
ground water quality?
1, 5, 9 ☐ ☐ ☐ ☒
b) Substantially decrease groundwater supplies or interfere
substantially with groundwater recharge such that the project
may impede sustainable groundwater management of the basin?
9, 27 ☐ ☐ ☐ ☒
c) Substantially alter the existing drainage pattern of the site or
area, including through the alteration of the course of a stream
or river or through the addition of impervious surfaces, in a
manner which would:
22, 31 ☐ ☐ ☐ ☒
i. Result in substantial erosion or siltation on or off site; ☐ ☐ ☐ ☒
ii. Substantially increase the rate or amount of surface runoff in a
manner which would result in flooding on- or offsite; ☐ ☐ ☐ ☒
iii. Create or contribute runoff water which would exceed the
capacity of existing or planned stormwater drainage systems or
provide substantial additional sources of polluted runoff; or
☐ ☐ ☐ ☒
iv. Impede or redirect flood flows? ☐ ☐ ☐ ☒
d) In flood hazard, tsunami, or seiche zones, risk release of
pollutants due to project inundation? 28 ☐ ☐ ☐ ☒
e) Conflict with or obstruct implementation of a water quality
control plan or sustainable groundwater management plan? 22 ☐ ☐ ☐ ☒
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Evaluation
a), b) Per Water and Wastewater Management Element (WWME) Policy A 2.2.1, the City utilizes multiple water resources to
meet its water supply needs. Having several sources of water avoids dependence on any one source that may not be available
during a drought or other water supply reduction or emergency. The City has five water sources, including Salinas & Whale
Rock Reservoirs, Nacimiento Reservoir, Recycled Water, and Groundw ater, achieving the goal of diversifying its water supply
portfolio to meet current and future community needs. Per WWME Policy A 3.2.3, the City will continue to use limited amounts
of groundwater for domestic purposes when available, but will not conside r this source of supply as part of its water resources
availability due to limitations for the use of groundwater resources.
c)(i-iv), d) The City is enrolled in the State General Permit National Pollutant Discharge Elimination System (NPDES) permit
program governing stormwater. As part of this enrollment, the City is required to implement the Central Coast RWQCB’s
adopted Post Construction Stormwater Management requirements through the development review process. The primary
objective of these post-construction requirements is to ensure that the permittee is reducing pollutant discharges to the maximum
extent practicable and preventing storm water discharges from causing or contributing to a violation of receiving water quality
standards in all applicable development projects that require approvals and/or permits issued.
New development projects will be in accordance with NPDES as well as Chapter 12.08 of the City’s Municipal Code, which
includes Urban Stormwater Quality Management and Discharge Control, and State, and Federal standards relating to drainage,
runoff, water quality and flood zones. The City’s development review process will ens ure future residential developments will
be in accordance with all applicable standards and requirements.
d) Current code requirements include designing for various FEMA defined flood elevations. Individual projects would require
consistency with these regulations, based on the FIRM, and show that hazardous materials beyond standard cleaning products
would be securely stored in a fully enclosed area per FEMA Flood Plain Management Criteria for Flood Prone Areas. Based on
the San Luis Obispo County Tsunami Inundation Maps, the City of San Luis Obispo site is not located in an area with potential
for inundation by a tsunami. The City of San Luis Obispo is not located within close proximity to a standing body of water with
the potential for a seiche to occur.
e) The project would not deplete groundwater supplies or interfere substantially with groundwater recharge because the Draft
Housing Element is a policy document and does not establish new land uses or propose the development of any specific project.
However individual residential development projects will be evaluated for compliance with stormwater treatment and storage
facilities that do not conflict with the Central Coastal Basin Plan, or other water quality control plans. The Draft Housing Element
would not conflict with SGMA, or other local or regional plans or policies intended to manage water quality or groundwater
supplies.
Conclusion
No Impact.
11. LAND USE AND PLANNING
Would the project:
a) Physically divide an established community? 1, 4 ☐ ☐ ☐ ☒
b) Cause a significant environmental impact due to a conflict with
any land use plan, policy, or regulation adopted for the purpose
of avoiding or mitigating an environmental effect?
4 ☐ ☐ ☐ ☒
Evaluation
a)b) The Draft Housing Element Update includes numerous programs to implement its goals and policies. For example, policies
in the Draft encouraging higher density, infill housing close to jobs and employment centers are consistent with existing pol icies
in the Land Use Element that encourage compact urban form. A few programs that identify non -residential sites as potential
areas to consider residential zoning would be implemented, in part, through changes to the General Plan Land Use Map and
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Zoning Map but do not involve activities that would conflict with a regulation adopted for the purpose of avoiding an
environmental effect. Sites that may be appropriate for multi-family housing are identified in the Draft, with subsequent review
and action needed to evaluate and implement the change, however, no circumstance can be envisioned where an encouraged
project would physically divide an established community.
Conclusion
No Impact.
12. MINERAL RESOURCES
Would the project:
a) Result in the loss of availability of a known mineral resource
that would be of value to the region and the residents of the
state?
1, 5 ☐ ☐ ☐ ☒
b) Result in the loss of availability of a locally-important mineral
resource recovery site delineated on a local general plan,
specific plan or other land use plan?
☐ ☐ ☐ ☒
Evaluation
a), b) There are no known mineral resources of value to the region identified in the General Plan, specific plan or other land
use plan. The Draft Housing Element Update would not result in the loss of a locally -important mineral resource.
Conclusion
No impact.
13. NOISE
Would the project result in:
a) Generation of a substantial temporary or permanent increase in
ambient noise levels in the vicinity of the project in excess of
standards established in the local general plan or noise
ordinance, or applicable standards of other agencies?
7, 31 ☐ ☐ ☐ ☒
b) Generation of excessive groundborne vibration or groundborne
noise levels? 7, 31 ☐ ☐ ☐ ☒
c) For a project located within the vicinity of a private airstrip or
an airport land use plan, or, where such a plan has not been
adopted, within two miles of a public airport or public use
airport, would the project expose people residing or working in
the project area to excessive noise levels?
4, 25 ☐ ☐ ☒ ☐
Evaluation
a), b) The General Plan Noise Element establishes standards and procedures for protecting noise -sensitive uses from stationary
and mobile noise sources. Noise attenuation measures identified in the General Plan include land use limitations, separation
between land uses (i.e. noise buffers), earth berms, and where appropriate and no other feasible measure exists, sound attenuation
walls. New residential development must be consistent with the Noise Element and Noise Ordinance standards. Noise Element
Policy 1.1 says that the City will work to minimize noise exposure based on the established numerical noise standards, or
thresholds, contained in the document. The Draft encourages the production of affordable housing through the development of
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non-conventional housing, including mixed residential-commercial housing and high-density housing above commercial uses in
Downtown and Mid-Higuera and Upper Monterey Special Focus Areas. In these types of housing, special attention must be paid
to use compatibility.
Per the City Municipal Code Chapter 9.12 Noise Control, operating tools or equipment used in construction between weekday
hours of 7:00 p.m. and 7:00 a.m., or any time on Sundays or holidays, is strictly prohibited, except for emergency work of pu blic
service utilities or by exception issued by the Community Development Department. The Municipal Code also states that
construction activities shall be conducted in such a manner, where technically and economically feasible, that the maximum
noise levels at affected properties will not exceed 75 dBA at single-family residences, 80 dBA at multi-family residences, and
85 dBA at mixed residential/commercial uses. Based on the City Municipal Code, operating any device that creates vibration
which is above the vibration perception threshold of an individual at or beyond 150 feet from the source if on a public space or
right-of-way is prohibited (9.12.050.B.7).
Advancements in construction methods, coupled with energy conservation practices, have had a vast performance impact on the
way buildings are constructed today. Interior noise levels are substantially reduced through compliance with existing buildin g
code requirements. At the most conservative level, a typical structure covered with siding will have a Sound Transmission Class
(STC) rating of 39 dBa based on current methods. Basic dual-pane vinyl windows will achieve an STC rating of 28 dBa.
Averaged out, this comes to a combined STC rating of about 33, meaning a typical exterior wall assembly will reduce 33dB of
sound transfer. These numbers are based off of a 2x4 wall cavity with insulation and the rating improves with increased wall
thickness and/ or stucco or other siding materials. In using the example of the previous Noise Element and Noise Guidebook
standards from the 1990s, compliance with current required conventional building standards would double, or even triple, the
noise reduction requirements.
Individual housing projects would be evaluated to ensure compliance with applicable Noise Element policies and the Noise
Ordinance standards.
c) The City’s General Plan and Zoning Regulations are consistent with the standards contained in the San Luis Obi spo County
Regional Airport Land Use Plan (ALUP) and the Airport Overlay Zone (AOZ), which is consistent with State Aeronautics Act,
State law, Federal Aviation Administration Regulations, and California Airport Land Use Planning Handbook. These standards
ensure that uses near the airport are developed in a manner that is safe and compatible with aircraft operations. Noise levels are
one of the key considerations and all development with the Plan area must be developed in a manner that eliminates noise
exposure in excess of the standards, including through the imposition of noise attenuation measures where necessary. There are
no private airstrips within the City’s Urban Reserve line.
Conclusion
Less than significant impact.
14. POPULATION AND HOUSING
Would the project:
a) Induce substantial unplanned population growth in an area,
either directly (for example, by proposing new homes and
businesses) or indirectly (for example, through extension of
roads or other infrastructure)?
1, 4 ☐ ☐ ☒ ☐
b) Displace substantial numbers of existing people or housing,
necessitating the construction of replacement housing
elsewhere?
4 ☐ ☐ ☐ ☒
The City of San Luis Obispo currently has a population of 46,802 residents, and 21,403 housing units (Department of Finance,
2019). The City currently has a residential density of 2.44 persons per household.
Evaluation
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a) General Plan policies seek to achieve a sustainable level of growth through the City’s planned buildout of 2 5,762 dwellings
and 57,200 persons, anticipated to occur by 2035. Land Use Element Policy 1.11.2 says that the City’s housing supply is to grow
no faster than one percent per year, averaged over 5 year increments, based on thresholds established by Land Use Element Table
3, excluding dwellings affordable to residents with extremely low, very low or low incomes as defined by the Housing Element ,
new dwellings in the Downtown Commercial (C-D) zone, and legally established accessory dwelling units (SLOMC, Section
17.144.020). This rate of growth may continue so long as the City's basic service capacity is assured. Table 3 shows the
approximate number of dwellings and residents which w ould result from the one percent maximum average annual growth rate
over the planning period. Approved specific plan areas may develop in accordance with the phasing schedule adopted by each
specific plan provided thresholds established by Table 3 are not exceeded. The City Council shall review the rate of growth on
an annual basis in conjunction with the General Plan annual report to ensure consistency with the City’s gradual assimilation
policy. This will assure population growth does not exceed the City’s ability to assimilate new residents and ensure municipal
services are available for new and existing residents.
As required by State law, the Draft Housing Element Update includes Quantified Objectives showing the number of units the
City expects to accommodate in each income group during the 6th Cycle planning period. Under the Draft, the City would expect
to accommodate up to 3,354 new, in-city dwellings, based on the City’s Regional Housing Need Allocation (RHNA). Of the
total, 58%, or 1,949 units, will be affordable to extremely low, very-low, low- and moderate-income households. The remaining
1,405 units can be constructed within the allowed average residential growth rate and will be credited towards meeting RHNA
by 2028. Regional Housing Needs Plan adopted by the San Luis Obispo Council of Governments, San Luis Obispo’s RHNA
during the planning period is 3,354 dwellings as shown in the table below.
Income Category RHNA need, #
of dwelling units
Extremely Low/Very Low
(<31% - 50% of AMI*) 825
Low
(51% - 80% of AMI) 520
Moderate
(81% - 120% of AMI) 604
Above Moderate
(over 121% of AMI) 1,405
Total 3,354
* Area Median Income
Source: City of San Luis Obispo, Community Development Department
b) San Luis Obispo has evaluated its ability to accommodate the 3,354 dwelling units by 2028 and determined it has sufficient
zoned land, water and infrastructure to accommodate its assigned RHNA without the need to rezone property or annex new land
to the City. New State housing laws have placed greater responsibility on local government to addr ess housing needs, including
SB 166 which does not allow a net loss of housing units. The Draft Housing Element includes updated information, policies and
programs to address new state law regarding housing. Individual housing development projects would be reviewed for
consistency with the Draft Housing Element and state law, and include mitigation, if required, for the displacement of signif icant
number of existing people or housing.
Conclusion
Less than significant impact.
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15. PUBLIC SERVICES
a) Would the project result in substantial adverse physical impacts
associated with the provision of new or physically altered
governmental facilities, need for new or physically altered
governmental facilities, the construction of which could cause
significant environmental impacts, in order to maintain
acceptable service ratios, response times or other performance
objectives for any of the public services:
Fire protection? 1, 38, 39 ☐ ☐ ☒ ☐
Police protection? 1, 38, 39 ☐ ☐ ☒ ☐
Schools? 1, 38, 39 ☐ ☐ ☒ ☐
Parks? 1, 38, 39 ☐ ☐ ☒ ☐
Other public facilities? 1, 38, 39 ☐ ☐ ☒ ☐
Evaluation
a) The Draft Housing Element itself does not establish new land uses or propose the development of any specific project that
would require public services. The City of San Luis Obispo Police Department (SLOPD) provides public safety services for the
city which consists of 85.5 employees, 59 of which are sworn police officers. The SLOPD operates out of one main police station
which is located at 1042 Walnut Street at the intersection of Santa Rosa (Highway 1) and U.S. Highway 101.The City of San
Luis Obispo is located within the San Luis Coastal Unified School District and public parks and recreation trails within the city
are managed and maintained by the City of San Luis Obispo Department of Parks and Recreation. All new residential and non -
residential development within the City is subject to payment of Development Impact Fees, which are administered by and paid
through the Community Development Department. Development Impact Fees provide funding for maintaining City emergency
services, infrastructure, and facilities. For example, fire protection impact fees provide funding for projects such as the r enovation
of the City’s fire stations and the replacement of fire service vehicles and equipment.
Draft Housing Element Update policies and programs call for the City to utilize Federal, State, and local funding sources to assist
in the development of affordable housing. The City has an Affordable Housing Fund that can be used to offset costs and provide
infrastructure and services to affordable housing developments. City utilities, parking and recreation facilities and program s, and
public schools are funded by service users and new development. City fees on new development, including water, wastewater,
traffic, park, affordable housing, and school are collected at the time of construction permit issuance to offset the costs b orne by
the City to meet the service needs of new development.
Fire protection: The City of San Luis Obispo is served by the City of San Luis Obispo Fire Department. While the Draft Housing
Element would not directly result in the need for construction of new fire service facilities, new residential would result i n a
marginal cumulative increase of demand on City services, including fire protection. Individual residential development would
be required to participate in the City’s system of required developer impact fees and dedications established to address dire ct
demand for new facilities associated with new development.
Police protection: The City of San Luis Obispo is served by the City of San Luis Obispo Police Department. The Draft Housing
Element would not result in a direct increase in residents within the City and would b e consistent with the projected population
growth outlined in Section 1.11 of the Land Use Element. Individual residential development projects would be subject to the
developer impact fees and dedications established to address direct demand for new facil ities associated with new development.
Schools: The City is located within the San Luis Coastal Unified School District (SLCUSD). The Draft Housing Element itself
does not establish new land uses or propose the development of any specific project that wou ld require schools. However
individual residential development projects would be subject to payment of SLCUSD developer fees to offset the potential
marginal increase in student attendance in the district’s schools as a result of the project. These fees wo uld be directed towards
maintaining sufficient service levels, which include incremental increases in school capacities.
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Parks: The Draft Housing Element itself does not establish new land uses or propose the development of any specific project.
However individual residential development projects would be subject to park development impact fees, which would offset the
project’s contribution to increased demand on park and recreational facilities. The Parks and Recreation Element of the General
Plan also requires new, large development areas to allocate 10 acres of developed park land for every 1000 residents to ensure
that sufficient parkland is developed along with new residential development.
Other public facilities: The Draft Housing Element itself does not establish new land uses or propose the development of any
specific project that would require other public facilities. However individual residential development projects could result in a
marginal increase in use of other City publ ic facilities, such as roadways and public libraries and that project would be subject
to transportation development impact fees, which would offset the project’s contribution to increased use of City roadways.
Conclusion
Less than significant.
16. RECREATION
a) Would the project increase the use of existing neighborhood and
regional parks or other recreational facilities such that
substantial physical deterioration of the facility would occur or
be accelerated?
1, 8 ☐ ☐ ☒ ☐
b) Does the project include recreational facilities or require the
construction or expansion of recreational facilities which might
have an adverse physical effect on the environment?
1, 8 ☐ ☐ ☒ ☐
Evaluation
a), b) The General Plan Parks and Recreation Element Policy 3.13.1 says the City shall develop and maintain a park system at a
rate of 10 acres of parkland per 1,000 residents. The City monitors the adequacy of its recreational facilities and evaluates each
new residential development to determine if additional service capacity is needed. New development is responsible for providing
funding or facilities in proportion to the need generated by the development project. This w ould help to ensure sufficient open
space and recreational areas are allocated for the community . In addition, each residential development project that includes
recreation facilities would be required to evaluate any adverse impacts the facilities would have on the environment.
Conclusion
Less than significant impact.
17. TRANSPORTATION
Would the project:
a) Conflict with a program, plan, ordinance or policy addressing
the circulation system, including transit, roadway, bicycle and
pedestrian facilities?
4, 29, 30, ☐ ☐ ☐ ☒
b) Conflict or be inconsistent with CEQA Guidelines section
15064.3, subdivision (b)? 1, 14 ☐ ☐ ☒ ☐
c) Substantially increase hazards due to a geometric design feature
(e.g., sharp curves or dangerous intersections) or incompatible
uses (e.g. farm equipment)?
1, 31 ☐ ☐ ☐ ☒
d) Result in inadequate emergency access? 1, 6 ☐ ☐ ☐ ☒
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Evaluation
The City Circulation Element identifies current traffic levels and delays of public roadways and identifies transportation go als
and policies to guide development and express the community’s preferences for current and future conditions. Goals included in
the plan include, but are not limited to, maintaining accessibility and protecting the environment throughout San Luis Obispo
while reducing dependence on single-occupant use of motor vehicles, reducing use of cars by supporting and promoting
alternatives such as walking, riding buses and bicycles, and using car pools, promotion of the safe operation of all modes of
transportation, and widening and extending streets only when there is a demonstrated need and when the projects would cause
no significant, long-term environmental problems.
The City’s 2013 Bicycle Transportation Plan outlines the City’s official policies for the design and development of bikeways
within the City and in adjoining territory under County jurisdiction but within the City’s Urban Reserve and includes specific
objectives for reducing vehicle use and promoting other modes. SLO Transit operates transit service in the City of Sa n Luis
Obispo and San Luis Obispo Regional Transit Authority (SLORTA) operates transit service throughout San Luis Obispo County
and adjacent areas.
In 2013, Senate Bill 743 was signed into law with the intent to “more appropriately balance the needs of c ongestion management
with statewide goals related to infill development, promotion of public health through active transportation, and reduction o f
greenhouse gas emissions” and required the Governor’s Office of Planning and Research (OPR) to identify new metrics for
identifying and mitigating transportation impacts within CEQA. As a result, in December 2018, the California Natural Resource s
Agency certified and adopted updates to the State CEQA Guidelines. The revisions included new requirements related to the
implementation of Senate Bill 743 and identified vehicle miles traveled (VMT) per capita, VMT per employee, and net VMT as
new metrics for transportation analysis under CEQA (as detailed in Section 15064.3 [b]).
On June 16, 2020, the City Council adopted resolutions to replace Level of Service (LOS) with Vehicle Miles Traveled (VMT)
as the City’s performance measure for CEQA analysis of transportation impacts, and approved revisions to the City’s Multimodal
Transportation Impact Study Guidelines. Beginning July 1, 2020, the newly adopted VMT criteria for determining significance
of transportation impacts will be implemented.
a) Using alternative means of transportation is a key way to minimize congestion and reduce health and environmental impacts.
The City’s General Plan discusses transportation with goals that are supported by specific policies to encourage alternative modes
of travel throughout the City. Goal 6 of the Circulation Element includes policies that focus directly on the development and
maintenance of a circulation system that supports all modes of transportation , like complete streets (Policy 6.1.1). Through this
and many other transportation-related policies, transportation impacts due to level of service, vehicle miles traveled, road damage
and traffic capacity can be successfully mitigated.
b) In June 2020, the City Council adopted VMT Thresholds. As t he Draft Housing Element itself does not establish new land
uses or propose the development of any specific project , the project does not trigger new VMT. However individual residential
development projects would be subject to the City’s VMT thresholds . SFR, multi-family and mobile home park projects would
have a threshold of 14.25 VMT per capita. Consistent with State technical guidance, this threshold represents a value 156 percent
below the existing regional (Countywide) average residential VMT per capita. The existing average residential VMT per capita
within the City is 8.51, approximately 40 percent below the City’s adopted residential VMT threshold. Thus, it is likely that most
residential development proposals consistent with the City’s currently adopted land use plans will result in a less-than-significant
VMT impact under CEQA. Mixed-use projects would be evaluated per each use independently. The new Thresholds provide
exceptions for affordable housing. Adding affordable housing to infill locations generally improves jobs -housing balance, in turn
shortening commutes and reducing VMT. A project consisting of a high p ercentage of affordable housing (greater than 50%)
may be assumed to cause a less-than-significant impact on VMT. Other affordable housing projects, or mixed -use projects with
affordable housing components may be screened from detailed VMT analysis if supp orting evidence is provided demonstrating
low VMT-generating characteristics of similar affordable housing sites within the City.
c) The Draft Housing Element does not change the City’s process for evaluating new residential development projects to ensur e
that vehicle circulation is accomplished without creating design hazards or conflicts with incompatible use. Individual resid ential
development projects would be evaluated to ensure that hazards due to design features are reduced or eliminated.
d) Emergency access to a new residential development project would be reviewed through the development review process.
Safety Element Policy 10.1 and Program 10.3 states that the Fire Department has set a response -time objective of four (4)
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minutes. Safety Element Policies 9.20 through 9.23 lists the precautionary measures the City will take when evaluating a
development plan. The City conducts safety inspections for fire safety, including enforcement of fire lanes, for multi -family
residential developments.
Conclusion
Less than significant impact.
18. TRIBAL CULTURAL RESOURCES
Would the project cause a substantial adverse change in the significance of a tribal cultural resource, defined in Public Resources
Code Section 21074 as either a site, feature, place, or cultural landscape that is geographically defined in terms of the size and
scope of the landscape, sacred place, or object with cultural value to a California Native American tribe, and that is:
a) Listed or eligible for listing in the California Register of
Historical Resources, or in a local register of historical resources
as defined in Public Resources Code Section 5020.1(k)?
5, 16 ☐ ☐ ☐ ☒
b) A resource determined by the lead agency, in its discretion and
supported by substantial evidence, to be significant pursuant to
criteria set forth in subdivision (c) of Public Resources Code
Section 5024.1? In applying the criteria set forth in subdivision
(c) of Public Resources Code Section 5024.1, the lead agency
shall consider the significance of the resource to a California
Native American tribe.
5 ☐ ☐ ☐ ☒
Evaluation
On February 25, 2020, NAHC supplied a list of local Native American individuals and/or groups with interests and knowledge
about the area. On April 2, 2020, local Native American tribal groups that have a cultural and traditional affiliation to the area
of the City of San Luis Obispo were formally noticed that an Initial Study of Environmental Review was being completed for
the update of the City’s Housing Element. None of the noticed Tribal Groups requested consultation or identified any Tribal
Cultural Resource (TCR) that would be impacted by the Draft Housing Element.
a) b) The 6th Cycle Draft Housing Element update does not establish new land uses or propose the development of any specific
project. As such, the Draft would not have an impact on any known tribal cultural resources that have been listed or been found
eligible for listing in the California Register of Historical Resources, or in a local register of historical resources as defined in
PRC Section 5024.1. No specific site is under consideration.
Conclusion
No Impact.
19. UTILITIES AND SERVICE SYSTEMS
Would the project:
a) Require or result in the relocation or construction of new or
expanded water, wastewater treatment or storm water drainage,
electric power, natural gas, or telecommunications facilities, the
construction or relocation of which could cause significant
environmental effects?
1, 9 ☐ ☐ ☒ ☐
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b) Have sufficient water supplies available to serve the project and
reasonably foreseeable future development during normal, dry,
and multiple dry years?
9, 27 ☐ ☐ ☐ ☒
c) Result in a determination by the wastewater treatment provider
which serves or may serve the project that it has adequate
capacity to serve the project’s projected demand in addition to
the provider’s existing commitments?
9, 13 ☐ ☐ ☒ ☐
d) Generate solid waste in excess of State or local standards, or in
excess of the capacity of local infrastructure, or otherwise
impair the attainment of solid waste reduction goals?
31 ☐ ☐ ☐ ☒
e) Comply with federal, state, and local management and reduction
statutes and regulations related to solid waste? ☐ ☐ ☐ ☒
Evaluation
The City of San Luis Obispo Utilities Department is the sole water provider within the city, provides potable and recycled wa ter
to the community, and is responsible for water supply, treatment, distribution, and resource planning. The City is served by four
primary water sources, including the Whale Rock Reservoir, Salinas Reservoir, Nacimiento Reservoir, and recycled water (for
irrigation), with groundwater serving as a fifth supplemental source. As of June 2020, both the Salinas Reservoir and Whale
Rock Reservoir are above 82% storage capacity, and Nacimiento is at 48% storage capacity. The City’s Water Treatment Plant
is designed to produce up to 16 million gallons daily.
The City Water Resource Recovery Facility (WRRF) treats all of the wastewater from the City, Cal Poly, and the County airport.
The WRRF treated an average of 3.57 million gallons of wastewater per day in 2019. During times of wet weather, the City’s
wastewater collection system and WRRF experience a significant increase in volume due to storm-related flows. Though not
intended to be conveyed or treated by the wastewater system, stormwater enters wastewater pipes directly through improperly
plumbed drains (inflow) and/or as groundwater that seeps through cracked wastewater pipes (infiltra tion). Significant inflow and
infiltration (I/I) in the collection system can result in sanitary sewer overflows (SSOs). Under these conditions, peak flows to the
City’s WRRF have exceeded 20 million gallons a day (mgd) in a 24 -hour period, where normal flows are under 4 mgd in a 24-
hour period.
A comprehensive flow study completed by the City in 2012 identified multiple locations in the collection system that experience d
flows at a rate of 20 to 30 times of normal flow during wet weather events, with the highest area experiencing flow at a rate of
36.3 times normal flow, due to I/I. These capacity constrained areas are identified in the City’s General Plan Water and
Wastewater Management Element. A wastewater flow offset program was approved in 2019 to mitigate potential environmental
impacts of new or intensified development in capacity constrained areas.
Construction of major upgrades to the WRRF began in 2019 to meet stringent discharge requirements and replace aged
infrastructure. The project will take approximately four years to complete and will increase treatment capacity to 5.4 million
gallons per day (mgd) during average flows.
a) The Draft Housing Element itself does not establish new land uses or propose the development of any specific project that
would require or result in the relocation or construction of new or expanded water, wastewater treatment or storm water drainage,
electric power, natural gas, or telecommunications facilities, the construction or relocation of which could cause significant
environmental effects. Individual projects relocation or expansion of the above-mentioned utilities would be reviewed through
the development review process for environmental effects. Any projects located within an area that has capacity constraints
would be required to comply with offset requirements.
b) Per Water and Wastewater Management Element (WWME) Policy A 2.2.1, the City utilizes multiple water resources to meet
its water supply needs. Having several sources of water avoids dependence on any one source that may not be available during
a drought or other water supply reduction or emergency. The City’s primary water supply is defined as the amount of water
needed to serve the build-out population identified in the General Plan, Land Use Element (2014). Table 3 in the Land Use
Element identifies an urban reserve capacity of 57,200 people. The quantity of water needed for the p rimary water supply is
calculated per WWME Policy A 5.2.2, using 117 gallons per capita per day (gpcd). The City’s 2019 Water Resources Status
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Report states that the City maintains a robust water supply portfolio with greater than five years of water avail able. Per capita
water use (obtained from adding up all water used by visitors, residents, commercial uses, etc.) decreased during the 2019 Wa ter
Year to 91 gallons per capita per day (gpcd) from 100 gpcd during the 2018 Water Year .
c) Per Water and Wastewater Management Element Policy B 2.2.3, new development will only be permitted if adequate capacity
is available within the wastewater collection system and/or WRRF. The City’s current wastewater treatment facility has a design
capacity of 5.1 million gallons per day and will have a design capacity of 5.4 mgd when the construction of the WRRF Project
is complete in 2023. According to the City’s Utility Department, this is adequate capacity to meet current needs, plus residential
growth anticipated during the planning period.
d, e) City of San Luis Obispo’s Municipal Code Chapter 8.05 states the City’s Construction Debris Diversion and Recycling
Ordinance which requires that all new development include a recycling plan to reduce the amou nt of debris disposed of at the
Cold Canyon Landfill, which serves the City. The City’s development review process will ensure future residential development s
will be in accordance with these standards. Cold Canyon Landfill has sufficient capacity to accom modate the City’s anticipated
build-out population.
Conclusion
Less Than Significant Impact.
20. WILDFIRE
If located in or near state responsibility areas or lands classified as very high fire hazard severity zones, would the proje ct:
a) Substantially impair an adopted emergency response plan or
emergency evacuation plan? 1, 40 ☐ ☐ ☒ ☐
b) Due to slope, prevailing winds, and other factors, exacerbate
wildfire risks, and thereby expose project occupants to,
pollutant concentrations from a wildfire or the uncontrolled
spread of a wildfire?
1, 3, 31 ☐ ☐ ☒ ☐
c) Require the installation or maintenance of associated
infrastructure (such as roads, fuel breaks, emergency water
sources, power lines or other utilities) that may exacerbate fire
risk or that may result in temporary or ongoing impacts to the
environment?
4, 9 ☐ ☐ ☒ ☐
d) Expose people or structures to significant risks, including
downslope or downstream flooding or landslides, as a result of
runoff, post-fire slope instability, or drainage changes?
1, 6 ☐ ☐ ☒ ☐
Evaluation
The Draft Housing Element covers the area with the City limits of San Luis Obispo and sphere of influence which is almost all
urbanized. Urban fire hazards result from the materials, size, and spacing of buildings, and from the materials, equipment, and
activities they contain. Additional factors are access, available water volume and pressure, and response time for fire fighters.
Based on the Multi-Jurisdictional Hazard Mitigation Plan, the risk of wildland fires is greatest near the City limits where
development meets rural areas of combustible vegetation. Most of the community is within one mile of a designated High or
Very High Fire Hazard Severity Zone which indicates significant risk to wildland fire.
The City Safety Element identifies four policies to a ddress the potential hazards associated with wildfire, included approving
development only when adequate fire suppression services and facilities are available, classification of Wildland fire hazard
severity zones as prescribed by CAL FIRE, prohibition of new subdivisions located within “Very High” wildland fire hazard
severity zones, and continuation of enhancement of fire safety and construction codes for buildings.
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a) Implementation of the Draft Housing Element Update would not result in a significant temporary or permanent impact on any
adopted emergency response plans or emergency evacuation plans. No breaks in utility service would occur as a result of adoption
of the updated element. Individual residential development projects would be evaluated for impact on emergency services and
would be required to prepare and implement the necessary plans to significantly reduce the safety risks in and around the project
site during construction activities and/or emergency events.
b) The Draft Housing Element itself does not establish new land uses or propose the development of any specific project that
would change the existing topography of the area covered by the document. Individual projects would be evaluated during the
development review process for any project elements that would expose project occupants to pollutant concentrations from a
wildfire or the uncontrolled spread of a wildfire. Projects would be required to meet all applicable standards for fire prevention
within the California Building Code and California Fire Code.
c) The Draft Housing Element itself does not establish new land uses or propose the development of any specific project t hat
would require the installation of new water, emergency water, wastewater, stormwater, and natural gas infrastructure and
connections to City infrastructure. Any new infrastructure components would occur as part of a specific project; the individual
project would be reviewed for compliance with applicable CBC and California Fire Code regulations.
d) The Draft Housing Element would not expose people or structures to significant risks, including downslope or downstream
flooding or landslides, as a result of runoff, post-fire slope instability, or drainage changes because it does not establish new land
uses or propose the development of any specific project. Individual projects would be reviewed for design elements that would
expose people or structures to significant risks, including downslope or downstream flooding or landslides, as a result of runoff,
post-fire slope instability, or drainage changes.
Conclusion
Less than significant impact.
21. MANDATORY FINDINGS OF SIGNIFICANCE
a) Does the project have the potential to substantially degrade the
quality of the environment, substantially reduce the habitat of a
fish or wildlife species, cause a fish or wildlife population to
drop below self-sustaining levels, threaten to eliminate a plant
or animal community, substantially reduce the number or
restrict the range of a rare or endangered plant or animal or
eliminate important examples of the major periods of California
history or prehistory?
☐ ☐ ☐ ☒
The Draft Housing Element would not have the potential to substantially degrade the quality of natural, biological, and cultural
resources because it does not establish new land uses or propose the development of any specific project. Individual developm ent
project would be reviewed for impacts on natural and cultural resources and evaluated and mitigated, consistent with CEQA and
with all General Plan policies. The proposed Draft Housing Element Update does not include any policies or programs that
conflict with City policies on protecting and enhancing biological or cultural resources or preclude the City from achieving
resource protection goals.
b) Does the project have impacts that are individually limited, but
cumulatively considerable? ("Cumulatively considerable"
means that the incremental effects of a project are considerable
when viewed in connection with the effects of past projects, the
effects of other current projects, and the effects of probable
future projects)?
☐ ☐ ☐ ☒
The Draft Housing Element Update would accommodate up to 3,354 in-city dwelling units in an eight-year period. Over half of
these units are targeted to be affordable to extremely low, very-low, low and moderate income households and are exempt from
the Residential Growth Management Regulations. The Draft is consistent with General Plan Land Use policies regarding
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residential growth. Cumulative impacts of General Plan policies and anticipated growth are addressed in the Land Use Element
Final EIR.
c) Does the project have environmental effects which will cause
substantial adverse effects on human beings, either directly or
indirectly?
☐ ☐ ☐ ☒
The Draft Housing Element Update will meet the City’s Regional Housing Needs Allocation for the planning p eriod. There is
no evidence that the Draft Element’s policies and programs will have significant, adverse impacts on humans, either directly or
indirectly.
22. EARLIER ANALYSES
Earlier analysis may be used where, pursuant to the tiering, program EIR, or other CEQA process, one or more effects have been
adequately analyzed in an earlier EIR or Negative Declaration. Section 15063 (c) (3) (D). In this case a discussion should identify
the following items:
a) Earlier analysis used. Identify earlier analyses and state where they are available for review.
Final Environmental Impact Report, Land Use and Circulation Element Updates; available online at:
https://www.slocity.org/government/department-directory/community-development/planning-zoning/general-plan or at the
Community Development Department, 919 Palm Street, San Luis Obispo, CA 93401.
b) Impacts adequately addressed. Identify which effects from the above checklist were within the scope of and adequately
analyzed in an earlier document pursuant to applicable legal standards, and state whether such effects were addressed by
mitigation measures based on the earlier analysis.
Resolution No. 10567 (2014 Series) summarizes the environmental impact, mitigation, monitoring and overriding considerations
for the 2014 Land Use and Circulation Element update:
http://opengov.slocity.org/WebLink/DocView.aspx?id=26033&dbid=0&repo=CityClerk .
c) Mitigation measures. For effects that are "Less than Significant with Mitigation Incorporated," describe the mitigation
measures which were incorporated or refined from the earlier document and the extent to which they address site -specific
conditions of the project.
The Draft Housing Element Update is consistent with the General Plan Land Use Element and must also be guided by the
mitigation that applies to that document.
23. SOURCE REFERENCES
1. Draft Housing Element Update, City of San Luis Obispo, July 2020 .
2. City of San Luis Obispo Zoning Regulations, October 2018.
3. California Building Code, 2019.
4. City of San Luis Obispo Land Use and Circulation Element and Final EIR, last revised December 2014.
5. City of San Luis Obispo Conservation & Open Space Element, 2006.
6. City of San Luis Obispo General Plan Safety Element, July 2000.
7. City of San Luis Obispo Noise Element, 1996
8. City of San Luis Obispo Parks and Recreation Element, 2001.
9. City of San Luis Obispo Water and Wastewater Element, 2018.
10. Noise Guidebook, City of San Luis Obispo, May 1996
11. Community Design Guidelines, City of San Luis Obispo, June 2010 .
12. Clean Air Plan for San Luis Obispo County, Air Pollution Control District, 2001.
13. CEQA Air Quality Handbook, Air Pollution Control District, 2012.
14. City of San Luis Obispo Archaeological Resource Preservation Program Guidelines, October 2009 .
15. Historic Preservation Program Guidelines, City of San Luis Obispo, November 2010 .
16. Historic Preservation Ordinance, City of San Luis Obispo, December 2010 .
17. Regional Housing Needs Plan for San Luis Obispo County, SLOCOG, June 2019.
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18. Building Blocks: A Comprehensive Housing Element Guide, HCD, Accessed June 2020 at:
https://www.hcd.ca.gov/community-development/building-blocks/index.shtml
19. U.S. Census Bureau, Census 2010
20. American Community Survey, U.S. Census Bureau, 2014-2018.
21. City of San Luis Obispo Land Use Inventory and Geographic Information System, current database
22. City of San Luis Obispo Stormwater website, accessed June 2020 at: https://www.slocity.org/government/department-
directory/community-development/engineering-development-review/stormwater
23.
24. City of SLO 2012 Climate Action Plan, August 2012.
25. County of San Luis Obispo Airport Land Use Plan dated May 18, 2005.
26. San Luis Obispo County Multi-Jurisdictional Hazard Mitigation Plan, 2019 (adopted June 2, 2020).
27. 2019 Water Resources Status Report, October 1, 2018 – September 30, 2019. Available at:
https://www.slocity.org/home/showdocument?id=25195
28. Federal Emergency Management Agency, FIRM, Novem ber 16, 2012.
29. 2019 Regional Transportation Plan, June 2019.
30. City of San Luis Obispo Bicycle Transportation Plan, 2013
31. Municipal Code, City of San Luis Obispo
32. Building Blocks for Effective Housing Elements, HCD, 2019
33. General Plan Guidelines, State Governor’s Office of Planning and Research, 2019
34. City of San Luis Obispo Website Community Choice Energy; Accessed November 18, 2019. Available at:
https://www.slocity.org/government/department-directory/city-administration/sustainability/community-choice-energy
35. California Department of Conservation Fault Activity Map of California, 2010.
36. Geologic Map of the San Luis Obispo Quadrangle, San Luis Obispo County, California, 2004
37. San Luis Obispo Valley Groundwater Basin, County of San Luis Obispo Webpage, 2019.
38. City of San Luis Obispo General Plan Annual Report, 2015-2019
39. Community Development Department Development Impact Fees, 2018.
40. Diablo Canyon Emergency Planning Zone Map, accessed November 2019
Attachments
1. 2020 Draft Housing Element
ATTACHMENT 4Item 4
Packet Page 332
6th Cycle Housing
Element Update
1
July 22, 2020
Commission Purview
The PC has two primary roles in the Housing Element
update process:
1)provide a forum for public discussion and
consensus building;
2)provide policy and program direction.
2
Recommendation
That the City Council amend the Housing Element for
updates associated with the 6th Cycle Housing Element
Update and adopt the Negative Declaration of Environmental
Impact.
3
Public Outreach
4
Public Forum and City Council Meeting –April 2, 2019
Planning Commission Meeting –April 24, 2019
Association of Realtors –July 23, 2019
Housing Element Workshop –December 10, 2020
Online Survey –December 10, 2019 –January 10, 2020
Chamber of Commerce –April 2, 2020
Economic Vitality Corporation and the Home Builders
Association –May 13, 2020
Online Survey –June 8, 2020 –June 24, 2020
Planning Commission Meeting –June 10, 2020
Background
The 6th Cycle Housing Element update is due
December 2020.
Required to include programs designed to meet our
share of the surrounding region’s housing needs for all
income group;known as RHNA.
The City has been allotted a RHNA of 3,354 housing
units.
The inventory shows that the City can accommodate
the RHNA allocation without rezoning property.
5
Background
Chapter 3 of the Housing Element has been updated in
response to input from the public over the past year.
On June 10,2020,the Planning Commission reviewed
new and revised goals,policies and programs based
on public comment,the changing needs,resources,
and conditions in the community,and state law.
The Planning Commission provided direction to staff
regarding those changes.
6
Planning Commission Direction
Policy 1.4:Assist owners of older residences with
information on ways to repair and upgrade older
structures to meet higher levels of building safety,
efficiency,and sustainability.
New policy added address the older stock of housing
within the City.
7
Planning Commission Direction
Program 6.13:Consider General Plan amendments to
rezone commercial,manufacturing or public facility
zoned areas for higher-density,infill or mixed-use
housing where compatible with surrounding
development.
The language “compatible with surrounding
development”was added per the recommendation by
the Planning Commission.
8
Planning Commission Direction
Goal 7:Retain the language “neighborhood stability and
owner occupancy.”
The Housing Element supports both renter and owner-
occupied housing throughout all neighborhoods within
the City and Goal 7 should not specify tenure.
Goal 10 outlines policies and programs to support local
home ownership.
No changes were made to Goal 7.
9
Planning Commission Direction
Policy 7.9:Encourage neighborhood design elements
that improve overall health of residents such as
providing safe and convenient opportunities to access
food outlets and active places for recreational exercise.
New policy that has been added to address public
health and housing.
10
Community Feedback
Policy 8.9:Encourage a variety of housing types that
accommodate persons with disabilities,and promote
aging in place,and include amenities such as visiting
space,first floor accessibility,etc.
11
Regional Vision for Housing
San Luis Obispo depends on collaborative relationships
between and among government agencies,community
organizations,and residents to respond to the region’s
issues.
Early this year,local agencies adopted a San Luis Obispo
Countywide Regional Compact.
Development of the Regional Infrastructure Plan (Regional
Plan).
Chapter 4 presents a regional vision and eight policies
focused specifically on fostering regional collaboration to
plan and develop housing and supportive infrastructure.
12
Regional Vision for Housing
R-1:Promote awareness and support of regional efforts that further housing and infrastructure resiliency by
utilizing community engagement,and consistent and transparent communication.
R-2:Encourage an adequate housing supply and resilient infrastructure,services,and resources to improve
the balance of jobs and housing throughout the Region.
R-3:Develop inter-agency partnerships as appropriate to implement goals and policies related to housing and
infrastructure.
R-4:Coordinate State,Federal,and other funding opportunities for housing and infrastructure development
throughout the Region.
R-5:Encourage developers to sell newly constructed housing units to individuals residing or employed within
the area of the development (a city or the County)first before selling to individuals from outside the County,to
promote local preference.
R-6:Encourage rental units be prioritized for long term residents rather than short term users or vacation
rentals.
R-7:Support housing development that is located within existing communities and strategically planned areas.
R-8:Encourage regional collaboration on a menu of housing types,models,and efforts to support streamlined
approvals for such developments (i.e.Accessory Dwelling Units,etc.).
13
Environmental Review
A Negative Declaration of Environmental Impact is
recommended for the Housing Element Update
because the there is no substantial evidence that the
project or any of its aspects may cause a significant
effect on the environment (CEQA Guidelines section
15063(b)(2)).
A 30-day public comment period is open from July 9,
2020 to August 7,2020.
14
Housing Element Next Steps
Receive comments from HCD’s review of the Housing
Element Update.
City Council review of the Housing Element Update on
September 1, 2020.
Send Final Draft of the Housing Element Update to HCD
for certification (Fall 2020).
15
Recommendation
That the City Council amend the Housing Element for
updates associated with the 6th Cycle Housing Element
Update and adopt the Negative Declaration of Environmental
Impact.
16
17
Land Use Element
Program 8.12.LOVR Creekside Area.This area is heavily constrained by
flood potential along the western boundary as well as limited circulation
access to the site given its proximity to the proposed LOVR /Highway
101 interchange and its limited frontage on LOVR.Flooding and access
issues must be resolved prior to developing Medium High Density
Residential (in areas adjacent to existing residential uses).Agricultural
Designations must be maintained along the west side of site.As part of
future development,compatibility with adjacent residential areas to the
east will be required.Permanent protection of the adjacent San Luis
Obispo Creek will need to be addressed as part of proposed
development.The south side of the site will also need to accommodate
relocation of LOVR right-of-way and changes related to the planned
Highway 101 interchange.
18