HomeMy WebLinkAboutItem 16 - COUNCIL READING FILE_e_Revised Draft Housing Element
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City of San Luis Obispo
2020-2028
Housing Element
City of San Luis Obispo Draft Housing Element, October 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, Noveno single family homes; Top right, View of the City of SLO; Middle bottom left,
Single family home; Middle bottom right, Iron Works 100 percent affordable apartments (HASLO); Very 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).
City of San Luis Obispo Draft Housing Element, October 2020
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City of San Luis Obispo
6th Cycle 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
City of San Luis Obispo Draft Housing Element, October 2020
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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.
City of San Luis Obispo Draft Housing Element, October 2020
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City of San Luis Obispo
6th Cycle 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 3
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 23
4. REGIONAL VISION FOR HOUSING 30
4.10 Overview 30
4.20 Alignment with Regional Compact 30
4.30 Policies 31
4.40 Moving Forward 32
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) Preservation vs. Replacement 38
c) Potential Financing for Preserving At-Risk Units 38
d) Preservation Successes from 5th Cycle Housing Element 39
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 A17
i) Affordability Gap Analysis A18
5. Summary and Conclusions A21
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) Farmworkers B19
h) Students B20
i) Fraternities and Sororities B21
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j) “Shared” Households B22
k) Single Room Occupancy (SRO) B22
l) Reasonable Accommodations B23
m) Fair Housing B23
n) Affirmatively Further Fair Housing B24
3. Conclusions B24
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 C98
d) Residential Growth Management Regulations C119
e) Development Review C152
f) Building, Zoning, and Municipal Code Enforcement C163
g) Processing and Permit Procedures C195
h) Development Fees C2118
i) Infrastructure C2421
j) Public Services – Police and Fire C273
k) Schools C274
l) Inclusionary Housing Program C274
2. Non-Governmental Constraints C296
a) Land Costs C296
b) Construction Costs C296
c) Availability and Cost of Financing C3027
d) Insurance Costs C3027
e) Investment Expectations C3128
f) Environmental Constraints C3128
g) Economic Constraints C3330
APPENDIX D – RESIDENTIAL LAND RESOURCES D1
1. Residential Development Capacity Calculation D1
2. Availability of Adequate Sites for Housing D2
a) Vacant Residential Land D32
b) Underutilized Residential Land D3
c) Land Suitable for Mixed-Use Development D43
d) Possible Rezonings D4
e) Accessory Dwelling Units D65
f) “Pipeline” Projects D76
g) Entitled Projects D87
h) Building Permits Issued D98
3. Residential Densities D108
4. Evaluation of Development Capacity: Identifying Adequate Sites D119
5. Existing and Proposed Incentives to Facilitate Housing Development D2015
6. Conclusion D2217
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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) Previously Identified Nonvacant and Vacant Sites E4
c) Development Capacity Calculation E5
d) Survey Assumptions E65
e) Survey Organization E76
4. Summary of Residential Capacity E76
a) Development Capacity by Area E76
b) Development Capacity by Zoning Designation E87
c) Development Capacity by Development Status E98
5. Residential Capacity Tables E98
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 Housing Condition Survey Summary – September 2020 A16
Table A - 2928 Median Residential Real Estate Sales Prices, 2014-2019 A17
Table A - 3029 Comparison of Rent Costs, City and County, 2019 A17
Table A - 3130 Owner & Renter Vacancy Rates, 2010 & 2017 A187
Table A - 3231 Single Family Housing Values, 2017 A187
Table A - 3332 Median Monthly Owner Cost, Percent of Household Income, 2017 A198
Table A - 3433 Median Housing Costs vs. Median Family Income, 2014-2019 A198
Table A - 3534 Median Gross Rent as a Percent of Household Income, 2017 A210
Table A - 3635 Affordable Rents by Income Group in San Luis Obispo, 2019 A210
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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 B24
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 C98
Table C - 6 Residential Growth Rates, 2015-2019 C13
Table C - 7 Common Planning Application Fees, Effective July 1, 2020 C22
Table C - 8 Capital Facilities and Impact Fees, Effective July 1, 2020 C23
Table C - 97 Water Resource Availability in San Luis Obispo, 2019 C252
Table C - 108 Water Usage in San Luis Obispo, 2000-2019 C263
Table C - 119 Current Mortgage Rates C3027
Table C - 1210 Population Change in San Luis Obispo, 1980-2019 C3229
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APPENDIX LIST OF TABLES, CONTINUED
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 D76
Table D - 4 Entitled Residential Projects in San Luis Obispo, 2019 D87
Table D - 5 RHNA Credit Captured in 2019 (1/1/2019 to 12/31/2019) D98
Table D - 6 Maximum Residential Density & Number of Dwellings
Allowed by Right D109
Table D - 7 Recent Residential Developments in San Luis Obispo D121
Table D - 8 Recent Residential Developments on Small Sites D15
Table D - 98 Residential Capacity of San Luis Obispo D2217
Table E - 1 Maximum Density by Zone and Slope E65
Table E - 2 Residential Capacity by Parcel and Survey Subarea E109
Table E - 3 Residential Capacity by Parcel and Specific Plan Area E2825
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 A20
Figure C - 1 General Plan Anticipated Housing and Population Growth C129
Figure C - 2 Citywide Capital Facilities Fee Schedule, 2018 C20
Figure D - 1 Small Sites Example, 2062 Price Street D172
Figure D - 2 Small Sites Example, 577 Branch Street D183
Figure D - 3 Small Sites Example, 3085 McMillan Avenue D194
Figure D - 4 Small Sites Example, 3460 Broad Street D194
Figure D - 5 Small Sites Example, 1166 Higuera Street D2015
Figure E - 1 Residential Capacity Survey Subareas E2
Figure E - 2 Residential Capacity by Survey Subarea E87
Figure E - 3 Residential Capacity by Zone E98
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
***
City of San Luis Obispo Draft Housing Element, October 2020
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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.
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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
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.
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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
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.
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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:
• 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.
1 U.S. Census 2013-2017 American Community Survey 5-Year Estimates
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❑ In 2017, City households earned less, on the average, than their County and State
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
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.).
City of San Luis Obispo Draft Housing Element, October 2020
7
live together in a house and share rental costs. Consequently, college students will out-
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.
City of San Luis Obispo Draft Housing Element, October 2020
8
❑ 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
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 citations. 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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9
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.
City of San Luis Obispo Draft Housing Element, October 2020
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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 Continue to IimproveCorrect unsafe, unsanitary, or illegal housing conditionss, improve
barriers to accessibility, and energy efficiency, andor unsafeimprove neighborhoodss
annually, by: 1) using Federal, State, and local housing funds, such as Community
Development Block Grant Funds, and 2) proactively promoting neighborhood wellness
through Code Enforcement’s Neighborhood Service Program.
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. Code Enforcement staff shall continue to provide property owners and tenants
with information on how to rectify violations, who to contact in Code Enforcement for
assistance, and other resources that may be pertinent to the citation.
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:
City of San Luis Obispo Draft Housing Element, October 2020
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• 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 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, at a minimum, 4 new affordable housing developments during the
planning period. 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 rReview existing and proposed building, planning, engineering and fire
policies and standards every year 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 on an annual basis within 2-6 months 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 cCoordinate an annualyearly public and private sector actions meeting to
discuss and encourage the development of housing that meets the City’s housing needs.
City of San Luis Obispo Draft Housing Element, October 2020
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2.9 Continue to aAssist with the issuance of tax-exempt bonds, tax credit financing, loan
underwriting or other financial tools to help develop or preserve at least 20 affordable units
annually through various programs.
2.10 Consider uUpdateing 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 within two years of adopting the Housing Element.
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 density bonuses for residential projects densities above the
state density bonus allowance of 35%s for projects that provide housing forto promote the
development of units 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 Core and portions of Upper Monterey and Mid-Higuera Special Focus Areas
to support the production of 50 smaller residential units (150 to 600 square feet) per year
during the planning period.
2.16 Create and make available to interested parties an informational packet that explains SB
35 streamlining provisions and eligibility within two years of Housing Element adoption.
2.17 In order to provide adequate sites for lower income households on non-vacant and vacant
sites previously identified in the Housing Element (Table E-2), the City will, within one
(1) year of the adoption of the Housing Element Update, allow developments (including
mixed-use projects) that include at least 20 percent of the residential units as affordable to
lower income households, by right (no discretionary review).
2.18 Utilize objective design standards to allow residential uses by right (no discretionary
review) for those developments (including mixed-use projects) that include at least 20
percent of the residential units as affordable to low income households.
City of San Luis Obispo Draft Housing Element, October 2020
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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
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 and verify that tenants are properly noticed and aware of their rights.
Provide resources to support the Housing Authority, and local housing agencies, purchase
and manage at-risk units.
City of San Luis Obispo Draft Housing Element, October 2020
14
3.9 Work annuallying with non-profit organizations, faith-based organizations, or the Housing
Authority of the City of San Luis Obispo, the City will to encourage rehabilitation of
residential, commercial, or industrial buildings to expand extremely low, very-low, low or
moderate income rental housing opportunities.
3.10 In order to mitigate the loss of affordable housing units, replacement housing units shall be
provided for sites identified in the site inventory when any new development (residential,
mixed-use or non-residential) occurs on a site that has been occupied by or restricted for
the use of lower-income households at any time during the previous five years. This
requirement applies to: non-vacant sites and vacant sites with previous residential uses that
have been vacated or demolished (see Government Code, section 65583.2, subdivision
(g)(3), and Government Code, section 65915, subdivision (c)(3)).
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,
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
City of San Luis Obispo Draft Housing Element, October 2020
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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.
4.7 The City shall support Affirmatively Further Fair Housing (AFFH) by:
• Facilitating public education and outreach by providing informational flyers on fair
housing and reasonable accommodation at public counters and on the City’s
website. Information will be included with utility billing at least once per year.
• Training staff, elected officials, and appointees on issues of disparity, structural
racism, and inequality.
• Implementing language standards and procedures for providing equal access to City
services and programs to all residents, including persons with limited proficiency
in English.
• Deed-restricting units to provide affordability and reduce displacement.
• Supporting new technologies and/or products such as modular housing construction
to reduce costs and increase access to housing.
• Distributing information regarding tenant rights and Fair Housing resources as part
of Code Enforcement’s response to housing code enforcement issues.
4.8 Continue to distribute information regarding Fair Housing by providing up to date
information online and brochures at the front counter, providing educational materials to
tenants, property owners and property managers, and making public service
announcements (including but not limited to the City’s News page, social media sites, and
newspaper ads) every year.
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 where compatible with existing and planned surrounding
development.
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 promotingand implement “missing middle” housing types (e.g.
duplex, triplex, quadplex, cottages, etc.) to increase housing options in the City within three
years of adopting the Housing Element..
5.5 Consider amending the Zoning Regulations to streamline the permitting process for mixed-
City of San Luis Obispo Draft Housing Element, October 2020
16
used projects in commercial zones.
5.5 Update the Zoning Regulations to allow mixed-use development within Service
Commercial (C-S) and Manufacturing (M) zones by right without a use permit within three
one years of the adoption of the Housing Element.
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.
City of San Luis Obispo Draft Housing Element, October 2020
17
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,
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 evaluate, every two to three years within the planning period, opportunities to
develop and implement 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, as projects are proposed, to rezone commercial,
manufacturing, or public facility zoned areas for higher-density, infill or mixed-use
housing, where compatible with surrounding development. Group requested rezones so
that as many as possible can be considered consistent with Government Code §65358, that
allows a general plan to be amended more frequently than four times during any calendar
year.. AFor 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)
K) 12500 Los Osos Valley Road (053-141-013) (Agricultural fields and San Luis Creek)
J) L) Los Osos Valley Road (053-161-020) (Agricultural fields and San Luis Creek)
6.14 Continue to provide City resources, including $40,000 annually for operational support,
thatto support the SLO County Housing Trust Ffund’s efforts to provide below-market
financing and technical assistance to affordable housing developers as a way to increaseto
construct or preserve five affordable housing units per yearproduction in the City of San
City of San Luis Obispo Draft Housing Element, October 2020
18
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.
6.156 Seek opportunities Meet every other year during the planning period withwith other public
and private agencies to identify excess, surplus, and underutilized parcels for residential
development.
6.167 Continue to iIncentivize 20 affordable housing developments per year during the planning
period consistent with SLOMC Affordable Housing Incentives.
6.178 Continue to fFinancially assist in the development of 20 housing units per year that are
affordable to extremely low, very-low, low- 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.
6.189 Actively seek and collaborate with non-profit housing providers to (jointly) apply for three
new revenue sources each year during the planning period, including State, Federal and
private/non-profit sources, and financing mechanisms to financially assist with the
development of housing affordable to extremely low, very low and low or moderate income
households.
6.1920 Continue to update theReview the Affordable Housing Incentives (Chapter 17.140,
SLOMC) and Zoning Regulations every two years during the planning period and update
to ensure density bonus incentives are consistent with State Law.
6.201 Evaluate and consider updateing the Subdivision Regulations, within three years of
Housing Element adoption, to support small lot subdivisions, ownership bungalow court
development and other alternatives to conventional subdivision design.
6.212 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.
6.22 Update the City’s municipal code to expand objective design standards within one year of
the adoption of the Housing Element Update.
6.23 Update the development review process and expand the thresholds of each review level
(minor, moderate, and major) to eliminate or reduce the number of public hearing required
for housing projects within one year of adopting the Housing Element.
Goal 7: Neighborhood Quality
Maintain, preserve, and enhance the quality and livability of neighborhoods.
City of San Luis Obispo Draft Housing Element, October 2020
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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.
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 healthy food and attractive 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
City of San Luis Obispo Draft Housing Element, October 2020
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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.
7.14 Encourage new developments with 10 or more residential units be reviewed and scored by
the Healthy Communities Work Group prior to submitting a planning application to the
City.
7.145 Evaluate and update the Community Design Guidelines to provide site design standards
for Encourage developments with 110 or more residential units to include outdoor
amenities such as the following: outdoor visiting and gathering spaces, places to exercise
or recreate, and spaces reserved for edible landscape or community gardens.
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
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.
City of San Luis Obispo Draft Housing Element, October 2020
21
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
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 Review Amend the Zoning Regulations and amend the Zoning Regulations within one year
of Housing Element adoption to ensure compliance with: 1) the Supportive Housing
Streamlining Act (AB 2162) to allow supportive housing a use-by-right in zones where
multi-family and mixed uses are permitted, including nonresidential zones permitting
multifamily uses, if the proposed development meets specified criteria; and 2) AB 101, to
allow to allow homeless shelters, transitional housing and supportive housing (lLow
Bbarrier Nnavigation Ccenters) by-right in all residential zones, areas zoned for mixed-
uses, and nonresidential zones permitting multifamily uses. without a conditional use
permitto be alignment with Government Code Section 65660 (AB 101).
City of San Luis Obispo Draft Housing Element, October 2020
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8.19 Continue to look for partnership opportunities with non-profit housing developers and
service providers to acquire four vacant, blighted, or underutilized properties (land, retail
or commercial space, motels, apartments, housing units, mobile home parks) during the
planning period for conversion into affordable permanent and supportive housing for
homeless persons and families.
8.20 Actively Continue to seek and collaborate with non-profit housing providers to (jointly)
apply for two revenue sources each year during the planning period, for State, Federal, and
local funding sources to encourage and financially assist with the development of housing
for persons with developmental disabilities.
8.21 Continue to coordinate monthly 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.
8.23 Update Zoning Regulations, within two years of Housing Element adoption, to be
consistent with the Employee Housing Act; including: 1) an update of Table 2-1 to allow
single-unit dwellings without a Conditional Use Permit within the Open Space and
Conservation (C/OS) zone and employee housing consisting of no more than 36 beds in a
group quarters, or 12 units or separate rooms or spaces designed for use by a single-family
or household within the C/OS and AG zones, and 2) remove Chapter 17.148 - High-
Occupancy Residential Use Regulations.
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.
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.
City of San Luis Obispo Draft Housing Element, October 2020
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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
balance analysis, 2) individuals residing in the County, and 3) finally to individuals from
outside the County.
Programs
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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
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
• Housing projects with deed-
restricted affordable units
• Mixed-use developments with
City of San Luis Obispo Draft Housing Element, October 2020
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built, owned and managed by the Housing Authority of the
City of San Luis Obispo, other government agencies, and
non-profit housing agencies.
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
Technical
Assistance from
City of San Luis
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
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Table 2: State Resources and Incentives Available for Housing Activities
Obispo and non-
profit housing
providers
• 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).
City of San Luis Obispo Draft Housing Element, October 2020
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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
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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(CHDAP)
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
•
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Table 3: Federal Resources and Incentives Available for Housing Activities
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
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
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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.
City of San Luis Obispo Draft Housing Element, October 2020
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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.).
City of San Luis Obispo Draft Housing Element, October 2020
34
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.
City of San Luis Obispo Draft Housing Element, October 2020
35
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.
City of San Luis Obispo Draft Housing Element, October 2020
36
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.
City of San Luis Obispo Draft Housing Element, October 2020
37
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 Pprogram 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. Housing Authority of the City of San Luis Obispo
(HASLO) and Peoples’ Self-Help Housing Corporation are local private nonprofit corporations
known to the local government that have the legal and managerial capacity to acquire and manage
affordable housing developments. Program 3.10 calls for the City to work with the Housing
Authority of the City of San Luis Obispo (HASLO), Peoples’ Self-Help Housing Corporation, and
other 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. In addition, the City
may also utilize HCD’s List of Qualified Entities that includes 480 organizations with experience
City of San Luis Obispo Draft Housing Element, October 2020
38
inthat preservinge affordable units (available at: https://www.hcd.ca.gov/policy-
research/docs/HPD-00-01.xlsx).
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, the
Anderson Hotel, and Poinsettia Street Apartments. Ffurther 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.
City of San Luis Obispo Draft Housing Element, October 2020
39
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 is negotiating
with the owners and considering
use of eminent domain to
acquire the property at the
appraised fair market value
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. However,
given the owners estimate of the value, their active solicitation of purchase offers from large
downtown developers, and the extensive capital improvements that will be needed, HASLO is
concerned that the loss of the housing is a real possibility. Although HASLO also anticipates that
this process will have a limited impact for the current tenants because of is attempting to obtain
HUD Protection Vouchers already being utilized byfor the existing the residents, loss of 68
affordable housing units would diminish the City’s current inventory.
Figure 2: Poinsettia Street Apartments
Source: Community Development Department, 2020
Figure 1: Anderson Hotel
Source: Community Development Department, 2014
City of San Luis Obispo Draft Housing Element, October 2020
40
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
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) Preservation vs. Replacement
The cost of preserving assisted housing units is generally estimated to be significantly lower than
replacing units through new construction. Preserving units entails covering the difference between
market rental prices and subsidized rental prices. New construction is less cost efficient in San
Luis Obispo because of the expensive land costs and labor prices, which tend to frequently be
barriers when developing new deed-restricted affordable housing. To maintain the existing
affordable housing stock, the City may either work to preserve the existing affordable at-risk units
or replenish by building new units.
HASLO recently built 34 new units in the City ( Bishop Street Studios), which cost roughly
$400,000 per unit. Using that cost as a baseline metric for this analysis, it would cost roughly
$8.2M more to replace the 68 units in the Anderson Hotel, and $4.4M to replace the 20 units
Poinsettia Street Apartments. Thus, it proves to be extremely more cost efficient to preserve the
existing units in these existing developments:
Anderson Hotel Poinsettia Street
Apartments
Project Total
(68 units)
Per Unit Total
(1 unit)
Project Total
(20 units)
Per Unit Total
(1 unit)
Purchase Price $11,000,000 $161,765 $2,000,000 $100,000
Rehab/Improvement Cost + $8,000,000 + $117,647 + $1,600,000 + $80,000
Est. Cost to Preserve $19,000,000 $279,412 $3,600,000 $180,000
Est. Cost to Replace $27,200,000 $400,000 $8,000,000 $400,000
Est. Cost to Replace
Rather Than Preserve $8,200,000 $120,588 $4,400,000 $220,000
c) 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
City of San Luis Obispo Draft Housing Element, October 2020
41
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.
dc) 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:
City of San Luis Obispo Draft Housing Element, October 2020
42
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
City of San Luis Obispo Draft Housing Element, October 2020
43
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.
Table 8: Summary of Quantified Objectives, January 2021 - December 2028
Activity Extremely
Low
Very
Low Low Moderate Total
RHNA PROGRESS
New Building Permit
Issuance & Construction 825 514 595 883 2,817
REHABILITATION & PRESERVATION
At-risk units rehabbed
& preservedUnits for
Rehabilitation
680 20 9 - 9729
CONSERVATION/PRESERVATION
Units in Historic
Structures 680 0 0 - 680
FINANCIAL ASSISTANCECONSERVATION
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.
City of San Luis Obispo Draft Housing Element, October 2020
A1
Appendix A
Community Profile
______________________________________________________________________________
To understand San Luis Obispo’s housing needs, a demographic profile of the community is
essential. Statistical information provided in this appendix forms the basis for the goals, policies,
and programs in Chapter 3, and for establishing quantified housing objectives in Chapter 5 4, as
required by State law. Social, economic, and housing characteristics are analyzed to determine
how these factors affect housing needs, costs, and availability. Main sources of statistical data in
this community profile include the 2010 U.S. Decennial Census, the 2013-2017 American
Community Survey (ACS) 5-year estimates, the California Department of Finance, and the City
of San Luis Obispo 2020 Affordable Housing Nexus Study completed by David Paul Rosen &
Associates (DRA).
1. Population Trends and Characteristics
The City of San Luis Obispo is located in San Luis Obispo County in the Central Coast region of
California. As shown in Table A-1, the City's estimated population in 2019 was 46,802 (California
Department of Finance, January 1, 2019). The population of the County is estimated to be 280,393.
Thus, around 17 percent of County residents lived in San Luis Obispo in 2019.
Table A - 1: Population Growth, 2011-2019
Year
City of San Luis Obispo County of San Luis Obispo State of California
Population Rate of
Change (%) Population Rate of
Change (%) Population Rate of
Change (%)
2011 45,286 - 271,644 - 37,594,781 -
2012 45,303 0.04 272,357 0.63 37,971,427 1.00
2013 45,558 0.56 274,144 0.66 38,321,459 0.92
2014 45,950 0.86 276,248 0.77 38,622,301 0.79
2015 46,331 0.83 277,219 0.35 38,952,462 0.85
2016 46,363 0.07 278,405 0.43 39,214,803 0.67
2017 46,705 0.74 279,538 0.41 39,504,609 0.74
2018 46,741 0.08 280,048 0.18 39,740,508 0.60
2019 46,802 0.13 280,393 0.12 39,927,315 0.47
Source: California Department of Finance (DOF), 2019
SLOCOG 6th Cycle Data Package 2019, Table 1; California Dept. of Housing & Community Development (HCD)
The City’s long-term population growth rate has reflected slow, steady growth. From 2011-2019,
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.
Comparatively over the same period, the population of the County grew at rates ranging from 0.12
to 0.77 percent, and the State’s population grew annually at rates ranging from 0.47 to 1.00 percent.
Table A-2 shows the average annual growth rate in population for the City, County, and State
City of San Luis Obispo Draft Housing Element, October 2020
A2
between 2000, 2010, and 2019. There was relatively slow growth for the City between 2000 and
2010, when the City population increased only 0.2 percent. The average annual growth rate for the
County and the State were higher during this period at 0.9 and 1.0 percent per year respectively.
From 2010-2019, the average annual growth rate for the City increased compared to the 2000-
2010 period, while the average annual growth rate for the State decreased slightly and the County
decreased noticeably.
Table A - 2: Average Annual Population Growth, 2000-2019
Year
City of San Luis Obispo County of San Luis Obispo State of California
Population
Average
Annual
Growth
Rate (%)
Population
Average
Annual
Growth
Rate (%)
Population
Average
Annual
Growth
Rate (%)
2000 44,174 - 246,681 - 33,871,648 -
2010 45,119 0.2 269,637 0.9 37,253,956 1.0
2019 46,802 0.4 280,393 0.4 39,927,315 0.8
Source: U.S. Census, 2000, 2010; California Department of Finance (DOF), 2019
San Luis Obispo is one of the seven incorporated cities located within San Luis Obispo County,
and has the largest population. Table A-3 shows population growth trends for cities in the County
from 2000-2019. From 2000-2010, coastal cities such as Pismo Beach, Morro Bay, and Grover
Beach stagnated in growth, while inland cities such as Paso Robles, Atascadero, and Arroyo
Grande experienced strong growth. From 2010-2019, coastal cities experienced more growth than
the previous decade, while the growth of inland cities leveled off. San Luis Obispo’s growth was
relatively consistent compared to neighboring cities during these periods of time.
Table A - 3: Pop. Growth in Cities of San Luis Obispo County, 2000-2019
2000
Population
2010
Population
Change,
2000-2010 2019
Population
Change.
2010-2019
Number Percent Number Percent
SLO City 44,174 45,119 945 2.1 46,802 1,683 3.7
Arroyo Grande 15,851 17,252 1,401 8.8 17,876 624 3.6
Grover Beach 13,067 13,156 89 0.7 13,533 377 2.9
Pismo Beach 8,551 7,655 -896 -10.5 8,239 584 7.6
Morro Bay 10,350 10,234 -116 -1.1 10,439 205 2.0
Atascadero 26,411 28,310 1,899 7.2 30,405 2,095 7.4
Paso Robles 24,297 29,793 5,496 22.6 31,244 1,451 4.9
SLO County 246,681 269,637 22,956 9.3 280,393 10,756 4.0
Source: U.S. Census, 2000, 2010; California Department of Finance (DOF), 2019
The California Department of Finance predicts that between 2015 and 2035, the State’s population
will grow by over 6 million and result in over 45 million residents. This is a projected annual
growth rate of 0.72 percent. As part of its regional planning functions, the San Luis Obispo Council
City of San Luis Obispo Draft Housing Element, October 2020
A3
of Governments (SLOCOG) develops and publishes regional population, employment, and
housing forecasts for the County and its communities. Table A-4 shows SLOCOG growth
projections for the City and County prepared by Beacon Economics, and Department of Finance
projections for the State.
Table A - 4: Population Growth Projections for City, County, and State
Year SLO City SLO County CA State
2015 45,950 276,375 39,076,128
2020 47,214 286,657 40,467,295
2025 48,601 297,095 42,066,880
2030 49,759 305,692 43,631,295
2035 50,659 312,346 45,128,459
Annual Growth Rate 0.49% 0.61% 0.72%
Source: Regional Growth Forecast for San Luis Obispo Council of Governments, 2017;
California Department of Finance, 2019
SLOCOG projections for the County show an annual growth rate of 0.61 percent. This annual
growth rate is their middle-range projection. For the City, SLOCOG projects a 0.49 percent annual
growth rate to 2035. The General Plan Land Use Element (LUE) includes policies to accommodate
an eventual City population of 57,200. At a 0.49 percent growth rate, the City’s anticipated
residential capacity would be reached by the year 2060.
a) Age Composition
San Luis Obispo’s age profile is shown in Table A-5 and graphically in the form of a population
pyramid in Figure A-1. When compared with the County and State, San Luis Obispo has lower
percentages of teenagers, middle-aged adults, and older working adults. The City is relatively
representative of state demographics for percentages of young children and for senior citizens.
Table A - 5: Age Distribution, 2017
Age City of San Luis Obispo County of San Luis Obispo State of California
Population Percent Population Percent Population Percent
Under 5 1,761 4 13,648 5 2,493,545 6
5-17 4,267 9 37,118 13 6,621,175 17
18-24 16,446 35 43,550 16 3,917,309 10
25-44 10,375 22 62,255 22 11,002,942 28
45-64 8,358 18 72,886 26 9,799,428 25
65 + 5,790 12 50,662 18 5,148,448 13
Source: U.S. Census; 2013- 2017 American Community Survey 5-Year Estimates
Due to the concentration of students attending Cuesta College and California Polytechnic State
University, San Luis Obispo, young adults age 18-24 are by far the largest age group in the City.
The City’s component of residents age 18-24 is orders of magnitude greater than the County and
State. With 35 percent of residents being age 18-24, the City has over double the percentage of
young adults compared to the County, and over triple the percentage compared to the State. As
City of San Luis Obispo Draft Housing Element, October 2020
A4
discussed in Appendix B, this demographic trend has significant implications for the San Luis
Obispo area housing market in terms of housing type, tenure, and demand.
Figure A - 1: San Luis Obispo Population Pyramid, 2017
Source: U.S. Census; 2013-2017 American Community Survey 5-Year Estimates
b) Race and Ethnicity
As shown in Tables A-6 and A-7, San Luis Obispo City and County are less diverse racially and
ethnically than the State as a whole. In 2017, roughly 85 percent of the residents in the City and
County identified as White. Asian and Pacific Islanders have consistently been the second largest
racial population group in the City from 2000 to 2017.
By census definitions, Hispanic or Non-Hispanic origin is an ethnic characteristic independent of
race. Consistently since 2000, the population identifying as Hispanic or Latino origin has increased
for the City, County, and State, with the City’s Hispanic population rising to about 17 percent of
the population by 2017.
City of San Luis Obispo Draft Housing Element, October 2020
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Table A - 6: Racial Composition for the City, County, and State, 2000-2017
Race City of San Luis Obispo County of San Luis Obispo State of California
2000 2010 2017 2000 2010 2017 2000 2010 2017
White 84.1 84.5 84.7 84.6 82.6 85.9 59.5 57.6 60.6
Black /
African-American 1.5 1.2 2.2 2.0 2.1 1.9 6.7 6.2 5.8
American Indian /
Alaska Native 0.6 0.6 0.5 0.9 0.9 0.7 1.0 1.0 0.7
Asian or
Pacific Islander 5.4 5.4 5.6 2.8 3.3 3.8 11.3 13.4 14.5
Some Other Race 4.8 4.4 3.5 6.2 7.3 4.2 16.8 17.0 13.7
Two or More Races 3.6 4.0 3.6 3.4 3.8 3.5 4.7 4.9 4.7
Source: U.S. Census 2000, 2010, 2013-2017 American Community Survey 5-Year Estimates
Table A - 7: Ethnic Composition for the City, County, and State, 2000-2017
Ethnicity City of San Luis Obispo County of San Luis Obispo State of California
2000 2010 2017 2000 2010 2017 2000 2010 2017
Not Hispanic or Latino Origin 88.3 85.3 82.9 83.7 79.2 77.8 67.6 62.4 61.2
Hispanic or Latino Origin 11.7 14.7 17.1 16.3 20.8 22.2 32.4 37.6 38.8
Source: U.S. Census 2000, 2010, 2013-2017 American Community Survey 5-Year Estimates
Table A-8 shows the projected change in racial and ethnic composition of San Luis Obispo County
from 2015 to 2035. According to the California Department of Finance (DOF), the projections
show that growth in the Hispanic population is expected to continue. By 2035, the DOF projects
that almost one quarter of the County’s population will be Hispanic. The Asian and Pacific Islander
population is projected to be the second fastest growing population while the White population is
projected to declinebe the most rapidly declining group.
Table A - 8: Projected Change in Racial and Ethnic Composition, 2015-2035
Year
Total
San Luis
Obispo
County
Population
White
(Non-Hispanic)
Black /
African-American
(Non-Hispanic)
American Indian /
Alaska Native
(Non-Hispanic)
Asian or
Pacific Islander
(Non-Hispanic)
Hispanic or
Latino*
Number
of
persons
Percent
of total
Number
of
persons
Percent
of total
Number
of
persons
Percent
of total
Number
of
persons
Percent
of total
Number
of
persons
Percent
of total
2015 276,859 194,257 70.2 5,106 1.8 1,443 0.5 8,994 3.2 60,670 21.9
2020 282,744 195,385 69.1 5,293 1.9 1,492 0.5 9,443 3.3 64,346 22.8
2025 290,341 198,776 68.5 5,365 1.8 1,540 0.5 9,944 3.4 67,518 23.3
2030 296,782 200,780 67.7 5,441 1.8 1,573 0.5 10,506 3.5 70,863 23.9
2035 302,046 201,550 66.7 5,530 1.8 1,602 0.5 11,004 3.6 74,327 24.6
Source: California Department of Finance, 2019
*Persons of Hispanic or Latino origin may be of any race
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2. Employment Trends
Due to its centralized location, early settlement history and transportation links via the Southern
Pacific Railroad and State Highways 101, 1 and 227, San Luis Obispo historically has served as
the County’s governmental, retail, and cultural hub. City and County economies historically were
based largely on agricultural activities. Table A-9 shows that in 2017, the educational services,
health care, and social assistance industry was the largest employer of City and County residents
with 26.8 and 23.46 percent respectively. Other major employment industries in the City and
County with double digit employment shares in 2017 included the Arts, entertainment, recreation,
accommodation, and food services industries, the professional, scientific, and management, and
administrative and waste management services industries, and the retail trade industry.
Table A - 9: Employment by Industry for Residents, 2017
Industry
City of San Luis Obispo County of San Luis Obispo State of California
Number
of Jobs Percent Number
of Jobs Percent Number
of Jobs Percent
Agriculture, forestry, fishing
and hunting, and mining 269 1.1 4,480 3.5 415,522 2.3
Construction 886 3.7 10,235 7.9 1,095,245 6.1
Manufacturing 1,585 6.5 8,841 6.8 1,711,597 9.5
Wholesale trade 509 2.1 2,820 2.2 532,171 3.0
Retail trade 3,044 12.6 14,851 11.5 1,944,607 10.8
Transportation and
warehousing, and utilities 731 3.0 5,845 4.5 894,568 5.0
Information 457 1.9 2,012 1.6 529,359 2.9
Finance and insurance, and real
estate and rental and leasing 846 3.5 5,842 4.5 1,108,073 6.2
Professional, scientific, and
management, and
administrative and waste
management services
2,879 11.9 13,821 10.7 2,378,080 13.2
Educational services, and health
care and social assistance 6,486 26.8 30,501 23.6 3,766,488 20.9
Arts, entertainment, and
recreation, and accommodation
and food services
4,292 17.7 16,229 12.6 1,877,141 10.4
Other services, except public
administration 1,281 5.3 6,676 5.2 952,898 5.3
Public administration 948 3.9 7,124 5.5 788,166 4.4
Civilian employed population
16 years and over 24,213 100 129,277 100 17,993,915 100
Source: U.S. Census 2013-2017 American Community Survey 5-Year Estimates
SLOCOG 6th Cycle Data Package 2019, Table 2; California Dept. of Housing & Community Development (HCD)
City of San Luis Obispo Draft Housing Element, October 2020
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According to the ACS, the City’s total work force (civilian employed persons 16 years or older)
was estimated at 24,213 in the 2017. In 2010, the total workforce was 22,858, reflecting an increase
of 1,355 persons, or 6.1 percent, during the decade. San Luis Obispo’s economy is relatively stable,
mainly due to the large number of public sector employees, and private sector employers that
receive government funds in the City and nearby unincorporated County, including the County of
San Luis Obispo, California Polytechnic State University, Cuesta College, the California State
Department of Forestry, the California Department of Transportation, the California Army
National Guard, the California Men’s Colony, San Luis Coastal Unified School District and the
City of San Luis Obispo. Large private sector employers include P.G.&E., the Cal Poly
Corporation, Sierra Vista Regional Medical Center, French Hospital Medical Center, Economic
Opportunity Commission, and Madonna Inn.
At the peak of the recent Great Recession, the unemployment rate in the City reached up to 10.9
percent in 2010. The City has seen a steady decrease in annual unemployment rates since the height
of the recession, with unemployment falling to 2.1 percent in 2019, as shown in Table A-10.
Table A - 10: Labor Force and Unemployment, 2010-2019
Year
City of San Luis Obispo Labor Force Unemployment
Rate, (%) Employed Unemployed Total
2010 24,900 3,000 27,900 10.9
2011 25,200 2,900 28,100 10.3
2012 26,300 2,600 28,800 8.9
2013 26,300 2,100 28,400 7.3
2014 24,100 1,500 25,600 5.9
2015 24,200 1,300 25,500 5.0
2016 24,400 900 25,300 3.6
2017 24,700 800 25,500 3.0
2018 24,900 600 25,500 2.5
2019 25,000 500 25,500 2.1
Source: California Employment Development Department, 2019
Note: Unemployment rate is unemployed labor force divided by total size of labor force.
Those who choose not to work or have given up searching for work typically are not
calculated as members of the labor force.
As seen in Table A-11, about 61 percent of the San Luis Obispo’s residents work within the City,
a decrease from 2010 when 64 percent of residents worked in the City. In 2017, 39 percent of
residents worked outside the City. However, the total number of residents working outside the City
increased by about 17 percent from 7,920 workers in 2010 to 9,256 workers in 2017. Since 2000,
commuting patterns have not changed much, although the percentage of workers traveling between
15 and 30 minutes to work has increased slightly from 23 percent in 2000 to 27 percent in 2017.
The majority of workers, 56 percent, commuted for 15 minutes or less to their jobs in 2017.
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Table A - 11: Commuting Patterns in the City: 2000, 2010, and 2017
Commuting Pattern 2000 2010 2017
Number Percent Number Percent Number Percent
Total Workers in SLO City 21,684 --- 22,265 --- 23,690 ---
Workers in the City 12,901 60 14,345 64 14,434 61
Workers outside of the City 8,783 40 7,920 36 9,256 39
Commute Time to Work
0-15 Minutes 13,149 61 12,921 58 13,158 56
15-30 Minutes 5,014 23 5,863 26 6,333 27
30-45 Minutes 1,587 7 1,952 9 2,000 8
Over 45 Minutes 922 4 725 3 976 4
Worked At Home 1,012 5 804 4 1,223 5
Mean Travel Time to Work
(minutes) 15.4 - 14.7 - 15.2 -
Source: U.S. Census; 2013- 2017 American Community Survey 5-Year Estimates
3. Household Characteristics
Household formation and characteristics are key factors shaping housing need. Following is an
analysis of household size, growth, income, tenure, and household trends. By definition, a
“household” consists of all the people occupying a dwelling unit, whether or not they are related.
For example, a single person living in an apartment, four students in an apartment, a couple with
two children, and an unrelated tenant living in the same dwelling are all considered households.
a) Household Formation and Type
As shown in Table A-12, the 2010 Census identified 19,193 occupied housing units in the City of
San Luis Obispo. In 2017, there were 18,728 occupied housing units with a decrease of 2.5 percent.
As shown in Table A-13, during this same period, the average household size increased from 2.29
persons per household to 2.44 persons per household. This increase of 6.6 percent in household
size was much larger than the change for the County and State during the same time period.
Table A - 12: Number of Households, 2000, 2010, and 2017
Number of
Households in
2000
Number of
Households in
2010
Change,
2000-2010
Number of
Households in
2017
Change.
2010-2017
Number Percent Number Percent
SLO City 18,653 19,193 540 2.9 18,728 - 465 - 2.5
SLO County 92,739 102,016 9,277 10.0 105,044 3,028 2.9
CA State 11,502,870 12,577,498 1,074,628 9.3 12,888,128 310,630 2.4
Source: U.S. Census 2000, 2010, U.S. Census 2013-2017 American Community Survey 5-Year Estimates
The U.S. Census differentiates between a “household” and a “family.” As used here, the term
“family” means two or more related persons living together as a unit. This may include single
parents, children, and extended family members (e.g., grandparents). A “household” includes
unrelated persons (e.g., single persons, roommates, and unmarried persons who live together), as
well as households falling under the “family” definition.
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Table A - 13: Household Size, 2000, 2010, and 2017
Average No. of
persons per
household in 2000
Average No. of
persons per
household in 2010
Change,
2000-2010
Average No. of
persons per
household in 2017
Change,
2010-2017
Number Percent Number Percent
SLO City 2.27 2.29 0.02 0.9 2.44 0.15 6.6
SLO County 2.49 2.48 -0.01 -0.4 2.51 0.03 1.2
CA State 2.87 2.90 0.03 1.1 2.96 0.06 2.1
Source: U.S. Census 2000, 2010, U.S. Census 2013-2017 American Community Survey 5-Year Estimates
Tables A-14 and A-15 both show household patterns in 2017. When compared with the County,
there is a higher percentage of non-family households in the City at about 59 percent. Non-family
households and one person households are more common in the City of San Luis Obispo than
family households due to the student population in the City.
Table A - 14: Estimated Households by Household Type, 2017
Family
Households
Non-Family
Households
Single Male
Households
Single Female
Households Total
# of
persons Percent # of
persons Percent # of
persons Percent # of
persons Percent # of
persons Percent
SLO City 5,787 30.9 11,077 59.1 627 3.3 1,237 6.6 18,728 100
SLO County 53,415 50.9 38,579 36.7 4,280 4.1 8,770 8.3 105,044 100
Source: U.S. Census 2013-2017 American Community Survey 5-Year Estimates
Table A - 15: Estimated Households by Household Size, 2017
Source: U.S. Census 2013-2017 American Community Survey 5-Year Estimates
b) Household Income
Both Tables A-16 and A-17 compare data from the U.S. Census, for median household and family
incomes in the City, County, State, and other nearby counties. There has been significant growth
in household income in the last decade in both the City and County. As shown in Table A-16, in
2010, the City's median household income was $42,461, or about 75 percent of the County’s 2010
median household income of $56,967. In 2017, the City's median household income increased to
$49,640, still about 75 percent of the County’s 2017 median household income of $67,175.
1- Person
Household
2- Person
Household
3- Person
Household
4- Person
Household
5- Person
Household
6- Person
Household
# of
persons Percent # of
persons Percent # of
persons Percent # of
persons Percent # of
persons Percent # of
persons Percent
SLO City 5,895 31.5 6,354 33.9 3,035 16.2 2,240 12.0 938 5.0 143 0.8
SLO County 27,366 26.1 41,553 39.6 15,069 14.3 12,244 11.7 5,894 5.6 1,863 1.8
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Table A - 16: Median Household Income, 2000, 2010, and 2017
Median
Household
Income, 2000
Median
Household
Income, 2010
Change in Income
2000-2010
Median
Household
Income, 2017
Change in Income
2010-2017
$ $ Amount ($) Percent $ Amount ($) Percent
SLO City 31,926 42,461 10,535 33 49,640 7,179 17
SLO County 42,428 56,967 14,539 34 67,175 10,208 18
Source: U.S. Census 2000, U.S. Census 2010, U.S. Census 2013-2017 American Community Survey 5-Year Estimates
Table A-17 shows family income from 2010-2017 increased 18 percent in the City and 17 percent
in the County over the past decade and is higher than the median household incomes in Santa
Barbara County, Monterey County, Los Angeles County, and the State.
Table A - 17: Median Family Income, County Comparison, 2010-2017
Median Family
Income, 2010
Median Family
Income, 2017
Change in Income,
2010-2017
$ $ Amount ($) Percent (%)
San Luis Obispo City 74,239 87,635 13,396 18.0
San Luis Obispo County 70,987 83,084 12,097 17.0
Santa Barbara County 68,723 78,481 9,758 14.2
Monterey County 61,688 69,222 7,534 12.2
Los Angeles County 60,857 68,272 7,415 12.2
California 67,874 76,975 9,101 13.4
Source: U.S. Census 2010, U.S. Census 2013-2017 American Community Survey 5-Year Estimates
Another income measure is per capita income, as shown in Table A-18. In 2010, the per capita
income in the City was $26,204, compared with a per capita income in the County of $29,790. In
2017, the per capita income in the City was $29,748, compared with a per capita income in the
County of $33,972. In 2017, the per capita income for California residents was $33,128.
Table A - 18: Per Capita Income, 2010-2017
Per Capita
Income, 2010
Per Capita
Income, 2017
Change in Income,
2010-2017
$ $ Amount ($) Percent (%)
San Luis Obispo City 26,204 29,748 3,544 14
San Luis Obispo County 29,790 33,972 4,182 14
California 29,188 33,128 3,940 13
Source: U.S. Census 2010, U.S. Census 2013-2017 American Community Survey 5-Year Estimates
The State of California defines four income categories for the purposes of determining housing
affordability and need in communities. These categories are based on the percentage of income
earned compared to the County’s Area Median Income (AMI) as shown in Table A-19. This
method is consistent with definitions of extremely low & very low, low, moderate, and above
moderate income households as used in most Federal and State housing programs; however, HUD
City of San Luis Obispo Draft Housing Element, October 2020
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(U.S. Department of Housing and Urban Development) applies different standards for Community
Development Block Grant, Section 202, and other Federal grant programs.
Table A - 19: California Income Category Limits
Income Category Percent of County Area Median Income
Extremely Low & Very Low Income 50% or less of AMI
Low Income 51% to 80% of AMI
Moderate Income 81% to 120% of AMI
Above Moderate Income 121% or higher of AMI
Source: California State Department of Housing and Community Development
Table A-20 shows the estimated number of households by income categories in the City of San
Luis Obispo within varying income categories. The table indicates that in 2017, approximately 50
percent of the City’s households fell into the less than $49,999 income category. While the large
number of households with incomes below $49,999 may be in part due to the large student
population in San Luis Obispo, it is evident that housing affordability may be an issue for several
of these income categories in the City.
Table A - 20: Estimated Households by Income Categories, 2017
Income Categories Income Limits Number of
Households1
Percent of
Total
Households
Extremely Low & Very Low2 Income < $49,999 9,401 50%
Low Income $50,000 - $74,999 2,755 15%
Moderate Income $75,000 - $99,999 1,837 10%
Above Moderate Income > $100,000 4,735 25%
Total 18,728 100%
Source: U.S. Census 2013-2017 American Community Survey 5-Year Estimates
1 Assumed a 4-person household; this is consistent with how HCD determines Income Limits every year.
2 Government Code 65583(a)(1) says agencies may assume that 50% of very low is extremely low.
4. Housing Inventory and Market Factors
a) Housing Stock Profile and Population Growth
In 2010, the City housing stock grew to 20,553 housing units, an increase of 1,213 units, with a
vacancy rate of 6.6 percent. In 2017, the City housing stock grew to 21,403, an increase of 850
units, with a vacancy rate of 6.3 percent. From 2010-2019, the population grew from 45,119 to
46,802, an average annual increase of 187 persons, or 0.41 percent. Table A-21 shows the number
of building permits and units issued each year from 2014 to 2019, otherwise referred to the City’s
5th Cycle RHNA Progress. In 2019, building permits were issued for a total of 537 units, which
was the largest number of annual residential development since 2014. In the 5th RHNA Cycle,
single family and multifamily development was about equal, with about 56% of building permits
being multifamily units and 44% for single family homes.
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Table A - 21: RHNA Progress - Issued Building Permits, 2014–2019
Year Single Family Units Multi-Family Units Total Residential Units
2014 79 126 205
2015 124 48 172
2016 62 72 134
2017 113 101 214
2018 124 162 286
2019 185 352 537
TOTAL 687 861 1,548
Source: City of San Luis Obispo, Community Development Department, 2019
Table A-22 shows the net change in the number of dwellings due to completed construction
between 2010 and 2019. During this period, an average of 99 units were built each year. During
the same period, 600 multi-family units were constructed, compared to 377 single-family units.
Multi-family units typically provide a wider range of affordability than single family housing.
Table A - 22: Net Change from Completed Construction, 2010–2019
*Represents the 10-year average growth rate
Source: City of San Luis Obispo, Community Development Department, 2018 General Plan Annual Report
b) Unit Type
San Luis Obispo’s housing stock includes a wide range of dwellings, including “Victorian-style,”
single-family houses near downtown, mobile home parks, duplexes, detached single-family
housing, condominiums, and large, high-density apartment complexes. Many of the City’s older
neighborhoods contain a mix of single houses, houses with attached and detached ADUs, and small
duplexes or triplexes. Table A-23 summarizes the City’s housing stock in 2010 and 2019.
Year
Single Family Units Multi-Family Units Annex
Units
Total
Units
Net
Market
Rate
Growth
Rate Market
Rate Affordable Market
Rate Affordable
2010 32 0 23 34 0 89 55 0.27%
2011 0 2 23 42 18 85 41 0.20%
2012 17 0 17 0 0 34 34 0.17%
2013 16 3 63 10 0 92 79 0.38%
2014 67 0 25 22 0 114 92 0.45%
2015 28 0 34 11 0 73 62 0.30%
2016 72 2 63 52 0 189 135 0.65%
2017 46 0 65 20 0 131 111 0.53%
2018 73 0 11 46 0 130 84 0.40%
2019 184 0 27 38 0 249 211 1.00%
10-yr
Total 535 7 351 275 18 1,186 904 0.56%*
City of San Luis Obispo Draft Housing Element, October 2020
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Table A - 23: Composition of Housing Stock by Unit Type, 2010-2019
Unit Type
2010 2019 Percent
Change, 2010-
2019
Number
of Units
Percent
of Total
Number
of Units
Percent
of Total
Single-Family Detached 9,541 46% 9,882 46% 4%
Single-Family Attached 1,379 7% 1,403 7% 2%
Multi-Family (2-4 units) 2,627 13% 2,723 13% 4%
Multi-Family (5+ units) 5,524 27% 5,912 27% 7%
Mobile Homes, Other 1,482 7% 1,482 7% 0%
Total 20,553 100% 21,403 100% 4%
Source: California Department of Finance (DOF), 2010, 2019
SLOCOG 6th Cycle Data Package 2019, Table 9; California Dept. of Housing & Community Development (HCD)
As shown in the Table A-23, in 2010, the City’s housing stock consisted of 53 percent single-
family units (both attached and detached), 40 percent multi-family units (both structures containing
2-4 units and 5 or more units), and 7 percent mobile home units. From 2010 to 2019, the housing
stock for the City did not change significantly, with the largest increase in units being a 7 percent
increase of multi-family dwellings of 5 units or more.
c) Unit Size
Unit size is commonly described in terms of the number of bedrooms in a residence. As seen in
Table A-24, the City’s housing stock in 2017 consisted of 6 percent studio units, 16 percent one-
bedroom units, 35 percent two-bedroom units, 29 percent three-bedroom units, and 15 percent
four-bedroom units and over. Under the City’s Affordable Housing Standards, estimated
occupancy is based on the number of bedrooms in a unit, as follows:
• Studio unit: one-person household
• One-bedroom unit: two-person household
• Two-bedroom unit: three-person household
• Three-bedroom unit: four- and five-person household
• Four-bedroom unit: six-person household
Table A - 24: Housing Size - Number of Bedrooms by Tenure, 2017
Housing Size
0 bedrooms 1 bedroom 2 bedrooms 3 bedrooms 4+ bedrooms
Tenure Total
Units
# of
Units Percent # of
Units Percent # of
Units Percent # of
Units Percent # of
Units Percent
Owner-occupied 7,167 38 < 1% 354 2% 1,875 10% 3,312 18% 1,588 8%
Renter-occupied 11,561 1,036 6% 2,561 14% 4,641 25% 2,105 11% 1,218 7%
Totals 18,728 1,074 6% 2,915 16% 6,516 35% 5,417 29% 2,806 15%
Source: U.S. Census 2013-2017 American Community Survey 5-Year Estimates
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d) Tenure
Tenure refers to whether householders rent or own their dwelling. Table A-25 shows that in 2017,
11,561 occupied housing units, or 62 percent, of City units were renter-occupied, a significantly
higher proportion than in the County and State. Between 2010 and 2017 the City saw a 1 percent
decrease in renter-occupied housing units. In contrast, the County and State saw increases in
renter-occupied housing units of 2 percent and 6 percent respectively.
Table A - 25: Estimated Tenure of Occupied Housing Units. 2010-2017
2010 2017 Change
Number Percent Number Percent Number Percent
Owner-occupied 7,547 39% 7,167 38% -380 -5%
Renter-occupied 11,646 61% 11,561 62% -85 -1%
Total 19,193 100% 18,728 100% -465 -2%
Source: U.S. Census 2013-2017 American Community Survey 5-Year Estimates
SLOCOG 6th Cycle Data Package 2019, Table 5; California Dept. of Housing & Community Development
e) Vacancy Rates
The housing vacancy rate is one measure of general housing availability. A low vacancy rate, less
than five percent, suggests that households will have difficulty finding housing within their price
range. Conversely, a high vacancy rate may indicate a high number of housing units that are
undesirable for occupancy, a high number of seasonal units, or an oversupply of housing. By
maintaining a “healthy” vacancy rate of between five and eight percent, housing consumers have
a wider choice of housing types and prices to choose from. As vacancy rates drop, shortages
generally raise housing costs and limit choices. Table A-26 shows that the City’s vacancy rate has
been around 3 percent for both 2010 and 2017. By comparison, the vacancy rate for the County
was roughly the same as the City in 2010, but had decreased to less than 2 percent by 2017. The
State’s vacancy rate was about 4 percent in 2010 and about 2 percent in 2017. The City’s low
vacancy rate reflects the high demand for student housing near Cuesta College & Cal Poly.
Table A - 26: Housing Vacancy Rates, 2010 & 2017
Year Percent Vacancy Rate
SLO City SLO County CA State
2010 3.1 2.8 3.9
2017 2.8 1.9 2.1
Source: U.S. Census 2013-2017 American Community Survey 5-Year Estimates
f) Age of Housing Stock
Housing age is one measure of identifying housing stock condition and the need for rehabilitation.
Older units often do not meet current building or zoning standards, and without proper
maintenance, are more likely to need major repairs. Generally, dwellings over 30 years of age fall
into this category. Table A-27 shows the age of the City’s housing stock in 2017.
City of San Luis Obispo Draft Housing Element, October 2020
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Table A - 27: Age of Housing Stock, 2017
Year Built Number of Units Percent of Units
2010 or later 464 2%
2000-2009 1,767 9%
1990-1999 2,259 11%
1980-1989 3,190 16%
1970-1979 4,911 24%
1960-1969 3,010 15%
1950-1959 1,970 10%
1940-1949 787 4%
Before 1939 1,974 10%
Total Housing Units 20,332 100%
Source: U.S. Census Bureau, 2013-2017 American Community Survey
According to the U.S. Census Bureau, 2013-2017 American Community Survey (ACS), only 10
percent of the City’s housing stock was built before 1939 and 23 percent of the housing stock was
built before 1960. In contrast, about 40 percent was built between 1960 and 1979, and 27 percent
was built between 1980 and 1999. Collectively, about 63 percent was built before 1980.
g) Housing Condition
In September 2020, a windshield survey was conducted within the City of San Luis Obispo to
examine a sample of the City’s housing stock and analyze housing conditions. A windshield survey
is a type of fieldwork conducted from a car toand provides a visual overview of a community. A
sample of 500 housing structures were randomly selected to be visually inspected in the field by
City staff as part of the survey. A sample size of 500 units out of 20,332 units was selected to
provide a confidence level of 95% and a margin of error under 5%. This sample of housing
structures included housing from all neighborhoods within the City and a variety of housing types
such as single family, townhomes, duplexes, multi-family units, and mobile homes. Based on
guidance from the California Department of Housing and Community Development (HCD)
regarding best practices for housing stock surveys & analysis, five categories were evaluated to
determine the overall condition of the housing structures: foundation, roofing, siding, windows,
and exterior electrical systems. City staff evaluated and graded each structure in the field during
the survey based on these features according to the following scale:
• A – Great: no poor conditions, building in great condition
• B – Fair: one or two poor conditions, building in fair condition.
• C – Poor: three or more poor conditions, building in poor condition.
Overall, the City’s housing stock is in good condition. As shown in Table A-28, The majority of
the sample of housing structures surveyed (around 87 percent) were found to be in great condition
and were not in need of rehabilitation. Approximately 13 percent of the housing structures
surveyed were in fair condition, needing only minor or moderate rehabilitation. The most
frequently noted exterior conditions needing rehabilitation of the housing structures surveyed were
peeling paint and to a lesser degree, roofs in need of minor replacement (old or missing shingles).
City of San Luis Obispo Draft Housing Element, October 2020
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None of the housing structures within the housing stock sample that was evaluated as part of this
survey were in poor condition. Although no residential units were identified in the survey as being
in poor condition, the City assumes that there are units that fall into this category and the Housing
Element includes Programs 1.5 and 1.6 that call out supporting safe and decent shelter for all
residents.
Table A - 28: Housing Condition Survey Summary – September 2020
Unit Type A - Great Condition B - Fair Condition Total
Single-Family 339 29 368
Townhome 22 2 24
Duplex 12 2 14
Multi-Family 44 20 64
Mobile Home 19 11 30
Total 436 64 500
Percent 87.2% 12.8% 100.0%
Source: City of San Luis Obispo, Community Development Department, 2020
The City’s housing stock was also analyzed, using Census data, to evaluate substandard conditions.
Housing is considered substandard when conditions are below the minimum standards of living as
defined by Section 1001 of the Uniform Housing Code. Households living in substandard housing
may be exposed to health or safety threats, which, in turn, could adversely affect the safety and
quality of life of neighborhoods. Such households are considered in need of housing assistance to
correct any serious health or building safety problems, such as structural, plumbing, mechanical
or electrical problems, and presence of unhealthful conditions or materials, e.g. asbestos and lead-
based paint.
In addition to structural problems (sagging roofs, walls or porches, lack of or failing building
foundation, termite infestation, etc.), the lack of certain basic facilities may also indicate
substandard conditions. The United States Department of Housing and Urban Development
(HUD) includes the lack of kitchen facilities and lack of plumbing facilities as two out of four
housing problems in their Comprehensive Housing Affordability Strategy (CHAS) data.
According to the 2017 American Community Survey (ACS) 5-Year Estimates, there were 46 units
in the City that lacked complete plumbing facilities. Of these, 32 were renter occupied. For Census
purposes, complete plumbing facilities included: (1) hot and cold piped water; (2) a flush toilet;
and (3) a bathtub or shower. All three must be located inside a housing unit to be recognized as
having full plumbing facilities. According to the 2017 ACS data, 380 units lacked complete
kitchen facilities, and of these, 363 units were renter-occupied. The U.S. Census defines a complete
kitchen as a unit with a sink & faucet, a stove, and a refrigerator. There were 901 units with no
heating source, and 250 units that relied on heating oil, kerosene, coal, wood, or other heating fuel.
City of San Luis Obispo Draft Housing Element, October 2020
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h) Housing Costs and Rents
Existing and New Housing Sales Price Trends
Following a trend throughout much of California, the City of San Luis Obispo experienced a strong
economy in the late 1990s pushed housing costs up, with increased employment, higher Cal Poly
enrollment and greater housing demand. The early 2000s saw a nationwide economic slowdown,
yet local housing demand remained strong, buoyed by record low mortgage interest rates and the
region’s attractiveness to retirees from both Southern and Northern California. Housing prices
continued to increase until the Great Recession in 2007 which resulted in a decline in sales prices.
In 2013, housing prices finally began a trend upwards that has continued to 2019.
Table A - 29: Median Residential Real Estate Sales Prices, 2014-2019
Year
SLO City SLO County CA State
Median Price ($) Percent
Change Median Price ($) Percent
Change Median Price ($) Percent
Change
2014 $594,200 --- $441,300 --- $374,200 ---
2015 $546,600 -8.0 $478,700 8.5 $398,300 6.4
2016 $602,800 10.3 $502,300 4.9 $415,100 4.2
2017 $611,900 1.5 $532,200 6.0 $435,800 5.0
2018 $655,500 7.1 $573,100 7.7 $482,800 10.8
2019 $693,000 5.7 $585,800 2.2 $500,500 3.7
Change,
2014-2019 $98,800 16.6 $144,500 32.7 $126,300 33.8
Source: Zillow, 2010-2019
Table A-29 shows the median sales prices of residential real estate in the City, County, and State
from 2014-2019. Over this 5-year period, median sale prices were consistently higher in the City
than in the County and State. In 2019, the median sales price in the City was $693,000. This was
approximately 18 percent higher than the County median price of $585,800 and 38 percent higher
than the State median price of $500,500. The median sales price in the County has also consistently
been higher than the State over the same time period.
Rental Costs
As of 2019, the average rent prices in the City for one-bedroom and two-bedroom apartments were
$1,445 and $2,094 respectively. In comparison, the Fair Market Rents (FMRs) for San Luis Obispo
County in 2019 as determined by the United States Department of Housing and Urban
Development (HUD) for one-bedroom and two-bedroom apartments were $1,196 and $1,542
respectively. The average rent prices in the City are noticeably higher than the fair market rents
for these units. Table A-30 shows the average rents by unit type for the City and County in 2019.
City of San Luis Obispo Draft Housing Element, October 2020
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Table A - 30: Comparison of Rent Costs, City and County, 2019
Unit Type SLO City SLO County Fair
Market Rent (HUD)1
Percentage difference
between City & County
average rents Average Rent ($) Average Rent ($)
1-Bedroom $1,445 $1,196 21%
2-Bedroom $2,094 $1,542 36%
Source: Rentcafe.com, 2020 Affordable Housing Nexus Study
1From HUD FY 2019 Fair Market Rent Documentation System for the SLO-Paso Robles-Arroyo Grande MSA
A possible contributing factor to high rents in the City is low rental vacancy rates as shown in
Table A-31. In 2010, the City, County, and State had rental vacancy rates of 3.7, 4.1, and 5.9
respectively. In 2017, the City’s rental vacancy rate increased to 4.0 while the County and State
rental vacancy rates decreased to 2.8 and 3.5 respectively. A balanced vacancy rate for an area is
typically around five percent. Vacancy rates lower than five percent favor landlords and can signal
a shortage of choice for renters, while vacancy rates above five percent favor renters.
Table A - 31: Owner & Renter Vacancy Rates, 2010 & 2017
Year
Percent Vacancy Rate
SLO City SLO County CA State
Owner Renter Owner Renter Owner Renter
2010 2.2 3.7 2.0 4.1 2.2 5.9
2017 0.7 4.0 1.3 2.8 1.0 3.5
Source: U.S. Census 2010, 2017 American Community Survey 5-Year Estimates
SLOCOG 6th Cycle Data Package 2019, Table 10; California Dept. of Housing & Community Development (HCD)
i) Affordability Gap Analysis
Ownership Units
Table A-32 shows the values of owner-occupied, single family housing in 2017 for the City of San
Luis Obispo and for San Luis Obispo County in 2017.
Table A - 32: Single Family Housing Values, 2017
Price Range $ SLO City SLO County
Units Percent of Total Units Percent of Total
Less than 50,000 321 4.5 2,199 3.5
50,000 - 99,999 331 4.6 1,310 2.1
100,000 - 149,999 165 2.3 1,037 1.6
150,000 - 199,999 233 3.3 1,237 2.0
200,000 - 299,999 259 3.6 5,142 8.2
300,000 - 499,999 1,264 17.6 20,622 32.7
500,000 - 999,999 4,212 58.8 26,351 41.8
1,000,000 or more 382 5.3 5,154 8.2
Total 7,167 100 63,052 100
Source: U.S. Census 2013-2017 American Community Survey 5-Year Estimates
City of San Luis Obispo Draft Housing Element, October 2020
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In 2017, very few homes in the City and County were valued at below $300,000, with the City
only having 18 percent and the County only having 17 percent of the total respectively. According
to Zillow, in 2019 the median home value in the City was $774,800, about a 4 percent increase
from the 2015 median value of $666,100.
Table A - 33: Median Monthly Owner Cost, Percent of Household Income, 2017
Median Monthly Owner Cost, Percent of Household Income
With Mortgage Without Mortgage
City of San Luis Obispo 25.5 10.0
County of San Luis Obispo 26.4 10.7
State of California 25.9 11.0
Source: U.S. Census 2013-2017 American Community Survey 5-Year Estimates
Although the total price of a home is an important indicator of affordability, the primary
affordability determinant is the monthly payment. Lenders typically require homebuyers to
demonstrate that the total monthly loan payment, consisting of loan principal, interest, taxes, and
insurance will not exceed 30 percent of gross monthly household income. Table A-33 compares
the monthly median income and housing costs in the City, County, and the State in 2017.
In 2017, mortgaged median-priced houses in the City, County, and State were all below the 30
percent threshold. While median family incomes have increased since 2010, it has not kept pace
with the growth in house prices. Table A-34 and Figure A-2 compare the median sales costs and
median family income in the County from 2014 to 2019. The median family income data comes
from the California Department of Housing and Community Development’s Official Median
Incomes for four person households. From 2014 to 2019, median family income in the County
grew over 13 percent. However, this is not nearly as large an increase as the 16 percent increase
in median sales prices of homes during this time.
Table A - 34: Median Housing Costs vs. Median Family Income, 2014-2019
Year Median City
Sales Price ($)
Percent
Change from
Previous Year
Median
Family
Income ($)1
Percent
Change from
Previous Year
Income
Required To
Afford ($)2
% of Median
Income Needed
To Afford
2014 $594,200 --- $77,000 --- $121,200 157
2015 $546,600 -8.0 $77,100 0.1 $111,520 145
2016 $602,800 10.3 $77,100 0.0 $122,960 159
2017 $611,900 1.5 $83,200 7.9 $124,840 150
2018 $655,500 7.1 $83,200 0.0 $133,720 161
2019 $693,000 5.7 $87,500 5.2 $141,360 162
Change,
2014-2019 $98,800 16.6 $10,500 13.6 $20,160 4
Source: Zillow, 2014-2019
1Based on HCD Official Income Limits for a four-person household.
2Income required to afford is annual income such that 30 percent of gross monthly income is the monthly mortgage payment for a
median priced home. Mortgage payments are derived assuming 30-year fixed rate loan, at 5% interest, with a 5% down payment
City of San Luis Obispo Draft Housing Element, October 2020
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Figure A - 2: Median Residential Sales Prices vs.
Median Family Income, 2014-2019
Table A-34 compares the area median income to the average median sales prices within the City
since 2014. It also derives the minimum amount of income required to afford the average unit sold
in that year. The median sales price includes all unit types. The income required to afford the
median sales price assumes that the monthly mortgage payment will be no more than 30 percent
of the monthly income, which is an affordability standard set by HUD. Since 2014, the income
needed to afford a median mortgage has been well over the City’s actual area median family
income. In 2019, the income required to afford a $693,000 median-priced home in the City was
162 percent of the actual area median family income of $87,500. The gap between the median
income and the median sales price has continued to grow over the past 5 years.
Figure A-2 shows the data from Table A-34 in a graphic form. The graph compares median family
incomes with median sales prices from 2014 to 2019. The median family income axis is labeled
on the left side of the graph, while the median sales price axis is labeled on the right side of the
graph. The graph shows that the median sales price has gone up at a faster rate than median family
incomes have over the 5 year period from 2014 to 2019.
Source: Zillow, 2014-2019
Incomes Based on HCD Official Income Limits for a four person household
Rental Units
Table A-35 shows the median gross rent as a percentage of household income in 2017. As
previously shown in Table A-33, homeowners were spending about 25 percent of their income for
housing costs in 2017. However, Table A-35 shows that renters spent considerably more. The
median renter was spending 45.7 percent of their income on rent in 2017, suggesting overpayment
for rental housing is common in San Luis Obispo.
City of San Luis Obispo Draft Housing Element, October 2020
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Table A - 35: Median Gross Rent as a Percent of Household Income, 2017
Median Renter Cost,
Percent of Income
City of San Luis Obispo 45.7
County of San Luis Obispo 32.6
State of California 33.1
Source: U.S. Census 2013-2017 American Community Survey 5-Year Estimates
The amount of rent different income groups can afford, using a 30 percent affordability standard,
is shown below in Table A-36. As seen earlier in Table A-30, the average rents of one-bedroom
and two-bedroom apartments in the City were $1,445 and $2,094 respectively. The average one-
bedroom apartment would only be considered affordable for low- and moderate-income
households. The average two-bedroom apartment would only be considered affordable to
moderate income households.
Table A - 36: Affordable Rents by Income Group in San Luis Obispo, 2019
Income Group Percent of Median
Income Earned
Income Earned
(4 person household) Affordable Rent*
Extremely Low 30 or less < $26,950 $459 - $761
Very Low 31-50 $26,950 - $44,950 $766 - $1,269
Low 51-80 $44,950 - $71,900 $919 - $1,523
Moderate 81-120 $71,900 - $105,000 $1,276 - $2,115
*Affordable is defined as 30 percent or less of gross income spent on rent
Source: HCD 2019; based on median income of four-person household, which is $87,500.
5. Summary and Conclusions
Appendix A describes the following demographic factors affecting the City’s housing market:
Population and household growth: Population growth has slowed in the City from 2010 to
2019. Over this period, City population has grown by only 1,683 persons to 46,802, which is
an average annual growth rate of 0.4 percent. By 2035, the San Luis Obispo Council of
Governments (SLOCOG) projects that the City population will grow slightly more to 50,659.
SLOCOG projects that during this period, the average annual growth rate of the City will
remain relatively unchanged at 0.49 percent.
Age Distribution: Both the City and the County have significantly higher proportions of young
adults compared to the State due to the presence of the California Polytechnic State University
and Cuesta College. In the City, over one third of the population is between 18-24 years old,
which is consistent with the large college student populations. When compared with the
County and State, the City has significantly lower percentages of school age children aged 5
to 17, middle-aged adults, and older working adults. The City is relatively representative of
State demographics for percentages of young children and for senior citizens aged 65 and over.
City of San Luis Obispo Draft Housing Element, October 2020
A22
Race and Ethnicity: The 2013-2017 American Community Survey (ACS) 5-year estimates
indicate that almost 15 percent of the City’s population was non-White, compared to 39 percent
of the State. While not approaching the State distribution, the City is gradually becoming more
ethnically diverse. The California Department of Finance projects that by 2035, about one third
of the County’s population will be non-white with the most rapid growth coming in Hispanic
and Asian/Pacific Islander populations.
Employment: The City has seen a steady decrease in annual unemployment rates since the
height of the recession in 2010, when the unemployment rate peaked at 10.9 percent. The
unemployment rate been steadily decreasing since that time. As of 2019, the unemployment
rate in the City was 2.1 percent. In 2019, the three industries offering the most jobs in the City
were educational services and healthcare and social assistance, arts entertainment and
recreation and accommodation, and retail trade.
Household size and type: The City’s average household size has been declining since the
1990s. As the average household size grows smaller, the existing housing stock accommodates
fewer people. In 2017, non-family households were almost 60 percent of all households, while
family households were about 40 percent.
Household and family income: The City of San Luis Obispo and the County’s median family
incomes continue to exceed other Central Coast counties’ median family incomes as well as
the State median family income. However, as of 2017, over 50 percent of household incomes
are still less than $50,000, which is considered very low income.
Housing Unit Size: Just over one-third of the City’s housing stock consists of two-bedroom
units, with three-bedroom units accounting for almost 30 percent and studio/one-bedroom units
accounting for over 20 percent of the housing stock. Housing units with four bedrooms or more
account for 15 percent of the housing stock. It is interesting to note that the percentage of
owner-occupied and renter-occupied units varies distinctly by the number of bedrooms. For
example, two-bedroom renter-occupied units make up 25 percent of all rental units compared
to the 10 percent of all owner-occupied two-bedroom unit. This flips for three-bedroom units,
with owner-occupied units consisting of 18 percent and renter-occupied units making up only
11 percent. Overall, renter-occupied units comprise the majority of the City’s housing stock.
Housing Inventory and Market Factors: Housing units added increased faster than population
rate. Between 2010 and 2019, there were 850 housing units added, compared to 1,683 people
added. Between 2010 and 2019, there were 600 multi-family dwelling units constructed
compared to 333 of single-family dwellings constructed. In 2017, there were 22% more renters
than owners in the City.
Housing Affordability: Many people who live in San Luis Obispo overpay for housing, and
many who work here cannot afford to live here. Median housing costs have outpaced incomes,
between 2014 and 2019, median sales prices increased 16.6 percent while the median income
only increased by 13.6 percent.
City of San Luis Obispo Draft Housing Element, October 2020
B1
Appendix B
Housing Needs
______________________________________________________________________________
Appendix B describes housing needs relative to various segments of the population, including
groups with special housing needs. Several factors shape the type and amount of housing demand
in San Luis Obispo. The main factors driving housing need during the planning period are:
• Population and job growth, both in the City and in the County;
• Increased rate of household formation due to smaller households;
• Inability of extremely low, very low, low, and moderate income working adults to find
suitable affordable housing near jobs;
• Growth of special needs groups such as the elderly, single-parent households, households
with disabled persons, and homeless individuals and families.
Analysis of the City’s demographic factors suggests that while almost all income households will
continue to have difficulty finding suitable affordable housing, the largest gap between housing
supply and need will be for residents in the extremely low, very low, and low income categories.
1. Regional Housing Needs Assessment
Under State law, each city and county are to develop programs designed to meet its share of the
region’s housing needs for all income groups, as determined by the region’s council of
governments. The State Department of Housing and Community Development (HCD) identifies
housing needs for all regions of the State. Councils of governments then apportion the regional
housing need among their member jurisdictions. 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.
The allocations are included in each jurisdiction’s Housing Element so that plans, policies , and
standards may be created to help meet housing needs within this element's planning term.
a) Existing Housing Needs
Households Overpaying for Housing
Overpayment refers to households paying more than 30 percent of their gross income to secure
adequate shelter. This is also the classification that the U.S. Department of Housing and Urban
Development (HUD) defines as “cost burden.” Cost burden is most common for lower income
households, although in high-cost housing markets such as San Luis Obispo, even moderate and
above moderate income households are often cost burdened as well.
High housing costs impact lower-income households more because lower-income households
City of San Luis Obispo Draft Housing Element, October 2020
B2
must use a disproportionately higher percentage of their incomes for housing and typically have
the least financial flexibility to meet other basic needs. For these individuals, the eventual result
may be a series of financial problems leading to housing deterioration, as limited funds must be
used for more immediate needs, or the result may be an entire loss of housing. For the community,
it could mean overcrowding as households seek to maximize income to meet housing costs, a
visible decline in housing conditions, neighborhood parking issues, and other related problems.
Within San Luis Obispo County, very low- and low-income households also have had a higher
frequency of overpaying for housing, with many paying more than one-half of their incomes for
housing, a level referred to by HUD as “severe cost burden.” For some, overpaying is a choice to
secure a certain type of housing. For many others, it is a necessity to meet basic housing needs.
Overpayment for rental housing has been a continuing problem in the City of San Luis Obispo.
The Census indicates that in 2010, 66 percent of the City’s 11,702 renter households overpaid for
housing. The figures also show that 32 percent of the City’s 7,229 owner-occupied households
overpaid for housing in 2010. This translates into an estimated 9,977 of City households who were
cost burdened, paying more than 30 percent of their gross income for housing in 2010. These
households consisted of over half of the total households within the City. In 2010, household
overpayment was down from 2000, when 61 percent of households overpaid for housing.
The American Community Survey (ACS) indicates that in 2017, 6,445 of the City’s 11,425 renter
households, or 56 percent, were overpaying for housing. Of the City’s 6,620 owner-occupied
households, 775 households, 12 percent of all owner-occupied households, were overpaying for
housing. In total, 7,220 households in San Luis Obispo were cost burdened, spending more than
30 percent of their gross income on housing in 2017. These households consisted of 40 percent of
the total households within the City. The number of households and the overall percentages of
households that were cost burdened and overpaying for housing decreased from 2010 to 2017.
In San Luis Obispo, overpayment figures may be misleading. The percentage of households
overpaying may significantly understate the problem, since high housing costs force many to seek
affordable housing outside the City. Those unable to afford any housing in San Luis Obispo are
not reflected in the figures. However, the data may also overstate the problem due to the fact that
many renters in the City are students. Most student households, including families headed by
students, are nominally in the lower income categories but have significant financial resources due
to parental support, loans or savings that is not reflected in their current income levels.
Nevertheless, rising housing costs and relatively slow income growth are well documented,
affirming that overpayment is an ongoing issue in the City.
Overcrowding
High housing prices often force lower-income households to accept smaller housing units,
resulting in overcrowding. Overcrowding can have serious housing and neighborhood
consequences. It places additional demands on housing facilities, neighborhood parking,
community infrastructure and services, and can contribute to deterioration of the housing stock.
Table B-1 below compares overcrowding figures for the City and County of San Luis Obispo and
City of San Luis Obispo Draft Housing Element, October 2020
B3
the State of California in 2017. Census data indicate that the percentages of overcrowded rental
units in the City and County have declined since 2010, from 5.4 and 6.5 percent to 3.7 and 6.2,
respectively. City and County figures for overcrowding remain relatively low compared to the
State. In San Luis Obispo, among the 11,561 renter households in 2017, an estimated 423
households were overcrowded. For owner-occupied housing, San Luis Obispo has fewer people
per room than the State, with over 99 percent of owner households averaging one person or fewer
per room. About 48 of the City’s 7,167 owner-occupied households were overcrowded.
Table B - 1: Residential Overcrowding, 2017
Percent of all renter-occupied housing
units, by number of occupants per room
Percent of all owner-occupied housing
units, by number of occupants per room
1.00 person
or fewer
Moderate
Overcrowding
(1.01- 1.50)
Severe
Overcrowding
(1.51+)
1.00 person
or fewer
Moderate
Overcrowding
(1.01- 1.50)
Severe
Overcrowding
(1.51+)
SLO City 96.3% 1.8% 1.9% 99.3% 0.6% 0.1%
SLO County 93.7% 4.0% 2.2% 98.5% 1.0% 0.5%
CA State 86.7% 8.2% 5.0% 96.0% 3.0% 1.0%
Sources: U.S. Census 2010; 2013- 2017 American Community Survey 5-Year Estimates;
SLOCOG 6th Cycle Data Package 2019, Table 11; California Dept. of Housing & Community Development (HCD)
Another measure of residential overcrowding is the number of persons per occupied housing unit,
or average household size. The average household size in the City of San Luis Obispo increased
from 2010 to 2017. The ACS reports that the average household size in the City for 2017 was 2.44.
In 2010, the U.S. Census reported an average household size of 2.29 in the City, compared with
2.51 and 2.83 in the County and State, respectively. Table B-2 compares average household size
between the City, County and State in 2017.
Table B - 2: Average Household Size by Tenure, 2017
Renter Occupied
(persons)
Owner Occupied
(persons)
Average
(persons)
City of San Luis Obispo 2.51 2.33 2.44
County of San Luis Obispo 2.55 2.48 2.51
State of California 2.91 3.00 2.96
Source: U.S. Census 2013- 2017 American Community Survey 5-Year Estimates
b) Housing Needs for 2020-2028
In San Luis Obispo County, the San Luis Obispo County Council of Governments (SLOCOG) is
charged with allocating the region’s assigned housing needs among seven cities and the
unincorporated County area. The numbers supplied by the State's Department of Housing and
Community Development (HCD) are “goal numbers” and are not intended as production quotas.
State law recognizes that a jurisdiction’s ability to meet regional housing needs within the planning
period may be constrained by several factors. Government Code Section 65583 states:
“It is recognized that the total housing needs identified pursuant to subdivision (a) may exceed
available resources and the community’s ability to satisfy this need within the content of the
City of San Luis Obispo Draft Housing Element, October 2020
B4
general plan requirements outlined in Article 5 (commencing with Section 65300). Under
these circumstances, the quantified objectives need not be identical to the total housing
needs.”
Jurisdictions must accommodate the RHNA numbers in their Housing Elements or explain why
their quantified housing objectives differ and identify actions the jurisdiction will take to remove
constraints to achieving the RHNA number. These numbers apply to the planning term from
January 2019 through June 2028. Each jurisdiction’s total need is broken down by income group.
These needs are included in each jurisdiction’s housing element as residential growth objectives
for which plans and policies are established to be accomplished within the planning term.
On October 2, 2019, the San Luis Obispo Council of Governments approved the County’s
Regional Housing Needs Plan incorporating the HCD’s housing needs determination of 10,810
total County units, significantly higher than the 2014 RHNA of 4,090 units. The approved RHNA
Plan is shown in Table B-3.
Table B - 3: Regional Housing Needs Allocation (RHNA)
for San Luis Obispo County, Jan. 2019 – Dec. 2028
Very
Low
Income
24.6%1
Low
Income
15.5%1
Moderate
Income
18.0%1
Above
Moderate
Income
41.9%1
Totals Percent
City 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%
Unincorporated 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.
A jurisdiction’s housing need allocation is the number of additional dwellings necessary to
accommodate expected growth in the number of households, and to: 1) replace expected
demolitions and conversions to non-residential use, 2) achieve an ideal vacancy rate (five to eight
percent) that allows adequate housing choice, and 3) avoid concentrating lower-income housing
in areas that already have disproportionately high proportions of lower income households. Total
housing need is broken down by household income categories used in State and Federal programs:
extremely low, very-low, low, moderate, and above-moderate income. As shown in Table B-3,
San Luis Obispo’s allocation is 3,354 dwellings, 31 percent of the County’s total allocation.
City of San Luis Obispo Draft Housing Element, October 2020
B5
c) Extremely Low-Income Households
Local governments have typically used four different income categories to describe and plan for
housing needs: very-low, low, moderate, and above moderate-income levels. State law requires
quantification and analysis of existing and projected housing needs of extremely low income (ELI)
households. ELI is defined as 30 percent of area median income and below. Table B-4 shows the
relationship of the four household income categories, projected number of households in each
category and the percentage of households paying more than 30 percent of their income for
housing. This table identified extremely low-income renter occupied households as one of the most
cost burdened income categories, with 84 percent of households paying more than 30 percent of
their monthly income on housing.
Table B - 4: Household Problems by Tenure and Income Level, 2015
Renter
Households
Owner
Households
Total
Households
Extremely Low Income Households
(<= 30% median family income) 4,275 420 4,695
Percent with any housing problems 84% 70% 83%
Percent with cost burden (>30% of income) 84% 69% 82%
Percent with severe cost burden (>50% of income) 79% 62% 78%
Very Low Income Households
(30% - 50% median family income) 1,740 430 2,170
Percent with any housing problems 92% 58% 85%
Percent with cost burden (>30% of income) 89% 58% 83%
Low Income Households
(50% - 80% median family income) 2,125 655 2,780
Percent with any housing problems 64% 36% 57%
Percent with cost burden (>30% of income) 62% 36% 56%
Total Households 11,425 6,620 18,045
Source: HUD Comprehensive Housing Affordability Strategy (CHAS), 2011-2015
SLOCOG 6th Cycle Data Package 2019, Table 4; California Dept. of Housing & Community Development (HCD)
In 2019, San Luis Obispo County’s median income for a four-person household was $87,500. For
extremely low-income households, this results in an income of $26,950 or less for a four-person
household or $18,900 or less for a one-person household. Households with extremely low incomes
have a variety of housing situations and needs. For example, most families and individuals
receiving public assistance, such as social security insurance (SSI) or disability insurance, are
considered extremely low-income households.
Existing Needs
In 2015, approximately 4,695 extremely low-income households resided in the City, representing
26 percent of the total households. Most (91 percent) extremely low-income households are renters
and experience a high incidence of housing problems. According to 2011-2015 HUD
City of San Luis Obispo Draft Housing Element, October 2020
B6
Comprehensive Housing Affordability Strategy (CHAS) data, 83 percent of extremely low-income
households faced housing problems (defined as a housing cost burden greater than 30 percent of
income and/or overcrowding and/or without complete kitchen or plumbing facilities) and 82
percent spent over 30 percent of their income on housing. A total of 48 percent of all households
across all income categories paid more than 30 percent of their income for housing.
Projected Needs
To calculate the projected housing needs, the City assumed one-half of its assigned very low-
income regional housing need is comprised of extremely low-income households. As a result, from
the very low income need of 825 units, the City has a projected need of 412 units for extremely
low-income households. Many extremely low-income households will be seeking rental housing
and most likely facing an overpayment, overcrowded or substandard housing condition. To address
this need, the City employs a diversified strategy including promoting construction of a variety of
housing types (veteran’s housing, transitional housing, 100% deed-restricted affordable
development projects, etc.) and preservation of extremely low and very low-income housing.
Extremely low-income households often need supportive housing and are particularly vulnerable
to becoming homeless due to local high housing costs and limited incomes. Supportive housing is
generally defined as permanent and affordable housing with on-site services, such as childcare,
after-school tutoring, and career counseling. These services help residents transition into safer and
more stable living conditions. City regulations allow supportive and transitional housing by right
in all zones. To address the housing needs of extremely low-income households, the City will
continue to identify opportunities to work with developers and non-profit builders who specialize
in developing affordable projects and supportive housing.
The goals of the City’s efforts to develop affordable and supportive housing include:
• Build a long-term partnership with development groups;
• Gain access to specialized funding sources, including funding sources that support deeper
subsidies for ELI housing;
• Identify the range of local resources and assistance needed to facilitate the development of
housing for extremely low-income households, and
• Promote a variety of housing types, including higher density, multifamily supportive,
single room occupancy, and shared housing.
As described in Program 3.13, the City will work with its nonprofit partners to develop housing
for extremely low-income households. Possible activities include organization capacity building,
assisting with site identification and acquisition, providing local financial resources (Affordable
Housing funds and CDBG funds), issuing impact and development fee deferral loans, prioritizing
and streamlining planning entitlements, and utilizing flexible development standards & incentives.
2. Special Housing Needs
Certain segments of the population may have more difficulty finding decent, affordable housing
due to their specific circumstances. In San Luis Obispo, this may include elderly persons, large
families, female-headed households, the disabled, homeless and farm workers.
City of San Luis Obispo Draft Housing Element, October 2020
B7
a) Elderly Persons
Elderly residents are classified as being 65 years of age or older. The 2010 Census shows that
elderly populations accounted for 12 percent, 5,431 residents, of the City’s total population. In
2017, elderly populations still made up 12 percent, 5,790 residents, of the City’s total population.
As seen in Table B-5, the elderly population in the City has not changed significantly since 2010.
Table B - 5: Elderly Population in San Luis Obispo, 2010-2017
Age
2010 2017 Percent
Change,
2010-2017
Elderly
Population
Percent of Total
Population that
is Elderly
Elderly
Population
Percent of Total
Population that
is Elderly
65 to 74 years 2,381 5 3,077 7 29
75 to 84 years 1,787 4 1,702 4 -5
85 years and over 1,263 3 1,011 2 -20
Total Elderly Population 5,431 12 5,790 12 7
Source: U.S. Census, 2013-2017 American Community Survey 5-Year Estimates
As seen in Table B-6, according to the 2017 ACS, there are 2,953 owner-occupied elderly
householders in the City and 978 renter-occupied elderly householders. Households with persons
age 65 years or older comprise over 20 percent of the total occupied households.
Table B - 6: Elderly Householders by Tenure and Age, 2017
Householder Age Owners Renters Total
65 to 74 years 1,686 397 2,083
75 to 84 years 769 401 1,170
85 years and over 498 180 678
Total 65 years and over 2,953 978 3,931
Total (all ages) 7,167 11,561 18,728
Source: U.S. Census, 2013-2017 American Community Survey 5-Year Estimates
SLOCOG 6th Cycle Data Package 2019, Table 13; California Dept. of Housing & Community Development (HCD)
Elderly persons may need regular medical care, special residential access features, home medical
equipment or trained medical care, transportation, and opportunities to socialize. Those with
moderate or above moderate incomes can usually afford to accommodate those needs. However,
many elderly citizens have fixed or low incomes and do not own a home. They must compete for
rentals with other small households that may have greater financial resources or may have the
potential for greater income in the future.
Low-income elderly people who do own homes may have difficulty affording property
maintenance costs, or meeting special accessibility or mobility needs such as ramps, handrails,
door widths, counters and cupboard height and design. Due to limited mobility or health issues,
elderly people may have a more difficult time meeting their personal needs, such as shopping,
health, or other errands, making their housing locations especially important. Table B-7 shows that
of 1,877 elderly city residents, 34 percent of residents age 65 or older, have disabilities such as
hearing difficulties, vision difficulties, cognitive difficulties, ambulatory (mobility) difficulties,
City of San Luis Obispo Draft Housing Element, October 2020
B8
self-care difficulties, and independent living difficulties.
Table B - 7: Elderly Population with Disabilities, 2017
Disability Type
Males Females Total
Population
Percent of
Total
Elderly
Population
Population
Percent of
Total
Elderly
Population
Population
Percent of
Total
Elderly
Population
Total Elderly Population
(>65 years old) 2,332 42 3,264 58 5,596 100
With a hearing difficulty 412 50 405 50 817 15
With a vision difficulty 131 40 194 60 325 6
With a cognitive difficulty 92 21 345 79 437 8
With an ambulatory difficulty 425 39 658 61 1,083 19
With a self-care difficulty 176 44 227 56 403 7
With an independent
living difficulty 273 28 695 72 968 17
Total Elderly Population
with a Disability 813 43 1,064 57 1,877 34
Source: U.S. Census, 2013-2017 American Community Survey 5-Year Estimates
SLOCOG 6th Cycle Data Package 2019, Table 13; California Dept. of Housing & Community Development (HCD)
Elderly residents who own their homes are in relatively good positions financially. Given the high
cost of housing in the area, some could sell their homes for a profit and use it to purchase a smaller
apartment or condominium, or for a residential care facility if needed. However, seniors on fixed
incomes with few assets have a more difficult time securing housing. Based on requests to the
City’s Housing Authority for housing affordable to the elderly, there is a clear need for more
subsidized elderly housing in the City. With the aging of the so-called “baby-boom” generation
born in the 1950’s, and with longer life expectancies, the need for suitable housing and related
services is expected to grow.
As seen in Table B-8, according to the U.S. Department of Housing and Urban Development
(HUD), 555 elderly San Luis Obispo households had incomes below the poverty threshold within
the extremely low income category in 2015. Of these 555 households, 325 were renter households
and 230 were owner households. Over 40 percent of all elderly households in the City were within
the low, very low, or extremely low-income categories in 2015.
City of San Luis Obispo Draft Housing Element, October 2020
B9
Table B - 8: Elderly Households by Income & Tenure, 2015
Income Category Owner
Households
Renter
Households
Total
Households
Extremely Low Income Households
(<= 30% median family income) 230 325 555
Very Low Income Households
(30% - 50% median family income) 290 335 625
Low Income Households
(50% - 80% median family income) 345 230 575
Moderate Income Households
(80% - 100% median family income) 210 90 300
Above Moderate Income Households
(>100% median family income) 1,840 225 2,065
Total Elderly Households 2,915 1,205 4,120
Source: HUD Comprehensive Housing Affordability Strategy (CHAS), 2011-2015
Residential Care Facilities
San Luis Obispo has a limited number of residential care facilities and special housing geared
toward the elderly. Residential care homes may also serve youths, adults, and persons with
disabilities. As of 2019, the City had 20 facilities providing housing for these special needs groups.
Table B-9 summarizes these special housing facilities.
Table B - 9: Special Needs Housing and Residential Care Facilities, 2020
Facility
Total
Capacity
(# of Beds)
Disabled
Housing
Senior Independent &
Assisted Living Shelter
40 Prado Homeless Center 100 ✓
StandStrong Safe House 14 ✓
Anderson Hotel 68 ✓ ✓
Brizzolara Street Apts. 30 ✓
Bishop Street Studios 34 ✓
Del Rio Terrace 41 ✓
Judson Terrace Lodge 33 ✓
Judson Terrace Homes 107 ✓
Marvin Gardens 24 ✓
Pismo Station 10 ✓
Broad Street Apartments 6 ✓
Carmel Street Apartments 19 ✓
Avila Senior Living 39 ✓
Vista Rosa 6 ✓ ✓
Vista Rosita 19 ✓ ✓
Las Brisas 110 ✓
Bella Vista Transitional Care 162 ✓ ✓
Mission View Health Center 65 ✓ ✓
City of San Luis Obispo Draft Housing Element, October 2020
B10
Facility
Total
Capacity
(# of Beds)
Disabled
Housing
Senior Independent &
Assisted Living Shelter
The Village at Sydney Creek 84 ✓ ✓
The Village at The Oaks 50 ✓
The Village at The Palms 128 ✓
The Village at Garden Creek 72 ✓
Total 1,221 11 16 2
Source: City of San Luis Obispo, Community Development Department 2020
Large Households Total Capacity equation: Total large family households multiplied by 5 persons.
b) Large Households
According to the 2017 ACS, 1,204 households, or six percent of San Luis Obispo's households,
consist of “large families.” Large families are defined as households with five or more persons, at
least two of which are related by blood, marriage, or adoption. Large families are included as a
special needs group because they typically require larger dwellings with more bedrooms than
typically needed by most households. Large families require dwellings with five or more rooms,
and of these, three or more are probably bedrooms.
Table B - 10: Number of Units by Bedrooms in San Luis Obispo, 2017
Bedroom Type Units
No Bedroom 1,329
1 Bedroom 3,154
2 Bedrooms 7,089
3 Bedrooms 5,853
4 Bedrooms 2,273
5 or more Bedrooms 634
Total Units 20,332
Source: U.S. Census, 2013-2017 American Community Survey 5-Year Estimates
Table B-10 above highlights the City's housing stock as of 2017, which contained 634 large
dwellings with five or more rooms, or three percent of the housing stock. Large families face the
dual challenge of finding an adequately sized dwelling at a cost that they can afford. These families
often have the largest affordability gap in securing housing among the special needs groups. This
is especially true for renter households, since most of the City’s larger dwellings are owner
occupied. As shown in Table B-11 below, of the City’s roughly 8,800 dwellings with three or more
bedrooms (consisting of about 8,200 households), 60 percent are owner occupied. The remaining
40 percent (about 3,500 large rental housing units) are often priced for the student housing market.
Reinforcing the data from Table B-11, Table B-12 shows household sizes by tenure in the City. In
2017, large households consisting of 5 or more persons consisted of 27 percent owner households
and 73 percent renter households. This reinforces the demand for large rental housing units to
accommodate large households, the majority of which are renters. It is evident from the census
data that there are a sufficient number of large dwellings to accommodate the numbers of large
families in the City. However, data also shows that lower-income households are priced out of
City of San Luis Obispo Draft Housing Element, October 2020
B11
both the ownership and rental housing markets for that type of housing. Moderate income families
may be able to afford rental costs for large dwellings; however, a tight student-housing market
coupled with relatively low vacancy rates (averaging about three percent) make it more difficult
for families to secure large dwellings.
Table B - 11: Household Tenure by Bedrooms in San Luis Obispo, 2017
Bedroom Type Owner Households Renter Households Total Number Percent Number Percent
No Bedroom 38 4 1,036 96 1,074
1 Bedroom 354 12 2,561 88 2,915
2 Bedrooms 1,875 29 4,641 71 6,516
3 Bedrooms 3,312 61 2,105 39 5,417
4 Bedrooms 1,330 61 842 39 2,172
5 or more Bedrooms 258 41 376 59 634
3 or more Bedrooms 4,900 60 3,323 40 8,223
Total Households 7,167 38 11,561 62 18,728
Source: U.S. Census, 2013-2017 American Community Survey 5-Year Estimates
Table B - 12: Large Households by Tenure in San Luis Obispo, 2017
Tenure 1 - 4 Persons 5+ Persons Total
Number Percent Number Percent Number Percent
Owner Households 6,845 39 322 27 7,167 38
Renter Households 10,679 61 882 73 11,561 62
Total Households 17,524 --- 1,204 --- 18,728 ---
Source: U.S. Census, 2013-2017 American Community Survey 5-Year Estimates
SLOCOG 6th Cycle Data Package 2019, Table 7; California Dept. of Housing & Community Development (HCD)
As seen in Table B-13, according to the U.S. Department of Housing and Urban Development,
100 large households of 5 or more persons were in the low, very low, or extremely low-income
categories in 2015. This consisted of around 20 percent of all large households in 2015, and 30
percent if including moderate income households. Market-rate housing options for large families
includes overcrowded multi-family units and older single-family homes. The development of more
on-campus student housing may help make more housing available for large families.
City of San Luis Obispo Draft Housing Element, October 2020
B12
Table B - 13: Household Size by Income in San Luis Obispo, 2015
Income Category 1 – 4 Persons 5+ Persons Total
Number Percent Number Percent Number Percent
Extremely Low Income Households
(≤ 30% AMI) 580 12 30 6 610 11
Very Low Income Households
(30% - 50% AMI) 440 9 15 3 455 8
Low Income Households
(50% - 80% AMI) 745 15 55 11 800 15
Moderate Income Households
(80% - 120% AMI) 335 7 59 11 394 7
Above Moderate Income Households
(>120% AMI) 2,890 58 360 69 3,250 59
Total Households 4,990 --- 519 --- 5,509 ---
Source: HUD Comprehensive Housing Affordability Strategy (CHAS), 2011-2015
c) Female-Headed Households
In 2010, females headed 7 percent of the City’s households, or an estimated 1,336 households with
no husband present. About 6 percent of county households and 8 percent of State households were
female-headed in 2010. By comparison, females headed 1,237 households, still 7 percent of all
households in the City in 2017 as seen in Table B-14. Female-headed households also consisted
of 8 percent of county households and 13 percent of state households in 2017. Although the actual
number of female-headed households did not necessarily increase for the City, County, and State
from 2010 to 2017, the percentage of female-headed households increased slightly in this period.
Female-headed households are included as a special needs group because of their low rate of
homeownership, lower average incomes, and relatively high poverty rates. This group’s housing
needs are similar to those of the elderly in that affordability, limited income and access to services
are key concerns. Female-headed households have space needs similar to two-parent households
but are at a distinct disadvantage in competing for suitable housing with the financial resources of
only one adult. Often, the single parent must settle for a small dwelling that does not meet the
household’s needs or must spend an excessively large share of the household's monthly income on
housing and childcare.
Housing close to employment, schools and services tends to be more desirable and therefore more
expensive. In their search for affordable housing, families are often forced to trade the convenience
of proximity for affordability. As the distances between work, school, daycare, and the grocery
store increase, so is the time spent connecting the stops, leaving less time for the family to spend
together, a particularly difficult situation for single-parent families. Table B-14 shows the number
of female-headed households in 2017. Of the total female-headed households, 284 were listed as
having incomes under the poverty level.
City of San Luis Obispo Draft Housing Element, October 2020
B13
Table B - 14: Female-Headed Households in San Luis Obispo, 2017
Household Type Number Percent
Total City households 18,728 100%
Total Female-headed households 1,237 7%
Female-headed households with children under 18 589 3%
Female-headed households without children under 18 648 3%
Total households under the poverty level 529 3%
Female-headed households under the poverty level 284 2%
Source: U.S. Census, 2013-2017 American Community Survey 5-Year Estimates
SLOCOG 6th Cycle Data Package 2019, Table 8; California Dept. of Housing & Community Development (HCD)
Affordable housing needs of female-headed households can be addressed through rent assistance,
low- and moderate-income housing production, shared equity/down payment assistance and group
housing. Housing opportunities also can be improved through city policies calling for the provision
of affordable childcare, and by locating family-oriented housing developments close to major
employment areas, transportation facilities and shopping.
d) Disabled Persons
As shown in Tables B-15 and B-16, 4,210 people, or 9 percent of all City residents, reported some
type of disability in the 2017 ACS, with 2,520 residents reporting ambulatory (mobility) and self-
care disabilities. Access and affordability are two major issues that may limit housing choices for
disabled people. This group is included as a special housing needs group because people with
disabilities often need facilities not typically provided in conventional housing.
Depending on the disability, special accommodations may include specially designed interior
features and accessibility provisions outside the unit. California Administrative Code Title 24 sets
access and adaptability requirements for persons living with disabilities, and these apply to most
new residential and commercial developments. The regulations require special architectural
features to meet the needs of disabled persons, including access ramps, accessible restrooms and
appropriately designed interior features. These requirements do not apply to single-family
residential construction.
Table B - 15: Persons Reporting Ambulatory or Self-Care Difficulties, 2017
Ambulatory
Difficulty Only
Self-Care
Difficulty Only Total Percent of Total
Population
Persons Ages 5-17 23 78 101 0.2
Persons Ages 18-64 708 225 933 2.1
Persons Ages 65+ 1,083 403 1,486 3.3
Total Persons 1,814 706 2,520 5.6
Source: U.S. Census, 2013-2017 American Community Survey 5-Year Estimates
SLOCOG 6th Cycle Data Package 2019, Table 13; California Dept. of Housing & Community Development (HCD)
City of San Luis Obispo Draft Housing Element, October 2020
B14
Other adults, who need less medical attention than is provided by a convalescent home, are
accommodated by an increasing number of small group homes (discussed below). Those with
multiple or severe disabilities, usually both physical and mental, require group living arrangements
where care and supervision can be provided. The demand for such accommodations is expected to
grow at about the same rate as the overall population. Sites for large facilities of this type are
limited in number, although moderate-sized and smaller facilities could be accommodated in many
residential areas throughout the City.
Table B-16 shows the number of City residents that live with disabilities such as hearing, vision,
cognitive, ambulatory (mobility), self-care, and independent living difficulties. Persons with
mental or physical disabilities who do not need medical supervision but are not able to live
independently can usually be accommodated in large or small group homes. Small residential care
facilities typically accommodate between six and 12 people, and provide beds, meals and 24-hour
assistance by caregivers. According to Access Support Network of San Luis Obispo, there are
estimated to be 130 persons in the city suffering from HIV/AIDS and other illnesses. Those
suffering from HIV/AIDS have specific housing needs. The main housing problems for this group
is housing affordability, since in many cases, these patients can no longer hold down a job and do
not have independent means of transportation and are dependent upon public transit.
Table B - 16: Disability by Type and Age in San Luis Obispo, 2017
Disability Type Youth
(Ages 5 - 17)
Adults
(Ages 18 - 64)
Seniors
(Ages 65 +) Total
With a hearing difficulty 37 489 817 1,343
With a vision difficulty 51 349 325 725
With a cognitive difficulty 113 1,015 437 1,565
With an ambulatory difficulty 23 708 1,083 1,814
With a self-care difficulty 78 225 403 706
With an independent living difficulty --- 564 968 1,532
Total individuals with a disability 231 2,102 1,877 4,210
Source: U.S. Census, 2013-2017 American Community Survey 5-Year Estimates
SLOCOG 6th Cycle Data Package 2019, Table 13; California Dept. of Housing & Community Development (HCD)
e) Developmental Disabilities
State law (SB 812) requires that the Housing Element discuss the housing needs of persons with
developmental disabilities. As defined by federal law, “developmental disability” means a severe,
chronic disability of an individual that is attributable to a mental or physical impairment or
combination which manifested before the age of 22 and is likely to continue indefinitely. The
disability results in substantial functional limitations in three or more of the following areas of
major life activity: a) self-care; b) receptive and expressive language; c) learning; d) mobility; e)
self-direction; f) capacity for independent living; or g) economic self- sufficiency. The disability
would also reflect the individual’s need for a combination and sequence of special,
interdisciplinary, or generic services, individualized supports, or other forms of assistance that are
City of San Luis Obispo Draft Housing Element, October 2020
B15
of extended duration and are individually planned and coordinated.
Many developmentally disabled persons can live and work independently within a conventional
housing environment. More severely disabled individuals require a group living environment
where supervision is provided. The most severely affected individuals may require an institutional
environment where medical attention and physical therapy are provided. Because developmental
disabilities exist before adulthood, the first issue in supportive housing for the developmen tally
disabled is the transition from the person’s living situation as a child to an appropriate level of
independence as an adult.
Table B - 17: Developmental Disabilities by Age and Location, 2019
Zip Code Ages 0 - 17 Ages 18+ Total
93401 98 147 245
93405 49 107 156
Total 147 254 401
Source: California Department of Developmental Services, 2019
SLOCOG 6th Cycle Data Package 2019, Table 14; California Dept. of Housing & Community Development (HCD)
The Census does not record developmental disabilities. According to the California Department
of Developmental Services, approximately 401 developmentally disabled residents live in the two
San Luis Obispo zip codes of 93401 and 93405 in 2019. Table B-17 shows that 147 people, or 37
percent, of developmentally disabled residents are less than 17 years of age while 254, or 63
percent, of developmentally disabled residents are over the age of 18. Policy 8.9 and Program 8.20
in the Housing Element address the housing needs of persons with developmental disabilities.
Table B - 18: Developmental Disabilities by Residence Type, 2019
Zip
Code
Home of
Parent /
Guardian
Independent
/ Supported
Living
Community
Care Facility
Intermediate
Care Facility
Foster
Home Other Total
93401 137 92 <11 <11 <11 <11 >229
93405 74 17 <11 61 <11 <11 >152
Source: California Department of Developmental Services, 2019
SLOCOG 6th Cycle Data Package 2019, Table 15; California Dept. of Housing & Community Development (HCD)
Table B-18 highlights that of the approximately 381 developmentally disabled residents in San
Luis Obispo, 55 percent reside in the home of parents or guardians, 29 percent reside in
Independent/Supportive Living scenarios and 19 percent live in Intermediate Care Facilities.
f) Homeless Persons and Transitional Housing
Homeless Persons
The City has been a long-standing supporter of service provision to those who are experiencing
homelessness. Implementing strategies and programs that help transition people out of
City of San Luis Obispo Draft Housing Element, October 2020
B16
homelessness has been a regional effort. The City adopted a Housing Major City Goal which
includes supporting the development of housing for unhoused (homeless) people as a top priority
in the 2019-2021 Financial Plan. In 2014, the City updated the Zoning Regulations to allow
Homeless Shelters by right without a conditional use permit within the Public Facility (PF) zone.
Approximately 16 acres within the PF zone could accommodate a Homeless Shelter. These sites
range in size from 0.84 acres to 4.98 acre (average lot size of 3.08 acres); all sites are underutilized
with two having surface parking lots and the others having over 50 percent of the site undeveloped.
Each parcel is located with ¼ mile of a bus stop along one of the City’s arterial roads which allows
for convenient access to social services and other services that might be needed by these
individuals. As further discussed below, a new homeless services center was opened in 2018 and
was specifically designed to accommodate the services needed by the homeless within the center,
as well as located within walking distance of Social Services and local and regional bus stops.
The City’s role in addressing homelessness includes the following:
1. Politically support and strategically supplement efforts lead by the County.
2. Financially support housing and service agencies whose mission it is to develop
programs for the City’s homeless population.
3. Provide funding assistance from Community Development Block Grant (CDBG),
Grants-In-Aid (GIA), and General Fund monies to social service programs, such as
the 40 Prado Homeless Services Center.
4. Leverage grant and loan opportunities and allocate City Affordable Housing Fund
awards to assist with the development and preservation of affordable housing.
Table B - 19: San Luis Obispo County Homeless Count by City, 2019
Region Number Percent of Total Homeless
Counted
Arroyo Grande 30 2%
Atascadero 173 12%
Grover Beach 67 5%
Morro Bay 94 6%
Paso Robles 239 16%
Pismo Beach 5 0%
City of San Luis Obispo 482 33%
Sheltered 326 22%*
Unsheltered 156 11%*
Unincorporated County 393 27%
Total Point in Time Homeless Count 1,483 100%
Source: 2019 San Luis Obispo County Homeless Point-in-Time Census & Survey
*Percent of City of San Luis Obispo Total Homeless counted on January 28, 2019.
Homelessness is inherently difficult to quantify because it is often a transitional situation,
dependent upon a household’s or individual’s changing economic condition or location. Lacking
City of San Luis Obispo Draft Housing Element, October 2020
B17
permanent housing, homeless persons are often missed in census surveys. Table B-19 summarizes
the 2019 San Luis Obispo County Homeless Point-in-Time Census and Survey Report, which
includes a total count of homeless individuals and families on January 28, 2019. According to the
report, 1,483 homeless persons were living in San Luis Obispo County in 2019, of which 482
persons, or 33 percent, were based in the City of San Luis Obispo. Approximately 174, or about
12 percent of the County’s total homeless persons counted, were under the age of 18. In the County,
32 percent of homeless persons are female. In terms of sleeping arrangements, of the County’s
total number of homeless persons observed and interviewed, 29 percent regularly slept on the
street, 26 percent slept in a car, van, RV, or other vehicle, and 22 percent in encampment areas.
The largest facility providing homeless services in the County is located in San Luis Obispo: 40
Prado Homeless Services Center. In October 2018, Community Action Partnership of San Luis
Obispo (CAPSLO) finished construction and opened the 40 Prado Homeless Services Center
which provides all homeless services in one place. The Center is a 365 days per year facility that
helps individuals and families improve their health and stability and move them towards self-
sufficiency. Services available to all participants include: overnight shelter (up to 100 beds), meals,
showers, laundry, mail/phone services, access to case management, primary medical care, animal
kennels, secured bicycle parking, a safe parking program and a community garden. The Center
also serves as the Warming Center location for the City of San Luis Obispo during times of
inclement weather. In 2019, an average of about 200 individual homeless persons per month
received one or more nights of emergency shelter in the City. In addition, Stand Strong, formerly
the Women’s Shelter of San Luis Obispo County, is headquartered in the City, and provides
services, programs, and facilities for homeless, displaced, and abused individuals.
The 2019 homeless enumeration data also shows that significant numbers of homeless persons are
living in cars, campers, city creeks and open space areas and do not avail themselves of the
homeless shelters. Homeless service providers require that homeless persons not be under the
influence of drugs or alcohol in order to receive services. For these reasons, many homeless people
in San Luis Obispo remain invisible in terms of their numbers and the services provided to them.
Transitional Housing and Supportive Services
A primary goal is to help homeless individuals and families achieve a measure of stability and
enable them to transition to safe, secure housing. Transitional housing gives homeless people a
stable environment while they seek employment or learn life skills towards self-sufficiency. San
Luis Obispo public and non-profit agencies, including CAPSLO, Transitions-Mental Health
Association (TMHA), and San Luis Obispo County Social Services use a “continuum of care”
approach” that places clients in supportive housing in San Luis Obispo City, serving a range of
residents including homeless persons, disabled persons, and persons with substance abuse issues.
To help homeless persons transition from emergency to permanent shelter, the City collaborates
with local nonprofit housing providers to develop transitional housing in the City. Transitional
Housing includes a broad range of housing types and typically includes a resident manager with
visiting staff providing counseling, health care, education, and other services. Table B-20 lists
homeless and transitional facilities in the City San Luis Obispo.
The Consolidated Plan is a five-year strategic planning document for the Urban County of San
Luis Obispo that establishes the goals for the Urban County’s community development and
City of San Luis Obispo Draft Housing Element, October 2020
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affordable housing activities. The U.S. Department of Housing and Urban Development (HUD)
requires that San Luis Obispo Urban County outline a vision for an effective and coordinated
community development strategy. Eligible state and local governments receive annual block grants
for affordable housing and community development from HUD. These grants include the
Community Development Block Grant (CDBG), the Emergency Solutions Grant (ESG), and the
HOME Investment Partnerships program (HOME). On May 5, 2020, the Board of Supervisors
adopted a Consolidated Plan for the time period of July 1, 2020 through June 30, 2024, which
identified five priority areas to consider future Federal funding, including increasing and
maintenance of affordable housing, and decreasing homelessness.
The Urban County utilizes a Continuum of Care (CoC) approach for addressing homelessness on
a regional basis. Each participating jurisdiction, including the City of San Luis Obispo, is
encouraged to collaborate with social service providers to provide a range of homeless services,
including rapid rehousing, outreach and assessment, basic emergency shelter, emergency services,
counseling and case management, and transitional and permanent housing. The San Luis Obispo
County CoC received a total of $105,588 for the 2019 Fiscal Year and is estimated to receive
$119,621 for the 2020 Fiscal Year from HCD.
Table B - 20: Emergency Shelters and Supportive Housing Facilities, 2019
Name /Agency Number
of People Population Served
40 Prado Homeless Services Center
(Community Action Partnership of SLO County) 100 Homeless adults, families & children
Safe House – Stand Strong
(formerly the Women’s Shelter of SLO County) 14
Abused adults as well as children who
are either homeless or at risk of
becoming homeless
Marianne Court Transitional Housing
(Stand Strong) 17 Abused, low income, single adults,
and legally emancipated minors
70Now Supportive Permanent Housing - TMHA 17 Disabled persons and chronically
homeless individuals and families
HUD Permanent Supportive Housing - TMHA 20 Disabled persons and chronically
homeless individuals
Community Housing Program - TMHA 40
Adults with an open mental health
case with the SLO County Behavioral
Health Department
Full Service partnership Housing - TMHA 15
Adults with an open mental health
case with an intensive Full Service
Partnership team
Homeless Outreach Partnership Housing - TMHA 4
Adults with an open mental health
case with a Full Service Partnership
team, priority for Homeless Outreach
Team clients
City of San Luis Obispo Draft Housing Element, October 2020
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Name /Agency Number
of People Population Served
Nipomo Street Studios - TMHA 8
Adults with an open mental health
case with the SLO County Behavioral
Health Department, priority goes to
residents experiencing homelessness
Broad Street Bungalows - TMHA 2
Adults with an open mental health
case with the SLO County Behavioral
Health Department
Bishop Street Studios - TMHA 33
Adults with an open mental health
case with the SLO County Behavioral
Health Department
Adult Transitional Program - TMHA 12
Intensive, 24-hour treatment for
adults, aged 18-59, with an open
mental health case with SLO County
Behavioral Health Department
Youth Treatment Program -TMHA 6
Intensive, 24-hour treatment program
for youth, ages 12-17, with an open
mental health case with SLO County
Behavioral Health Department
Total People Served 288
Source: Transitions-Mental Health Association, 2020; Community Development Dept. 2020
Homeless Shelters, Transitional Housing and Supportive Housing Allowed By Right
Assembly Bill 101 outlines that Homeless Shelters, Transitional Housing and Supportive Housing
developments (Low Barrier Navigation Centers) be a use by right within those zones that allow
for mixed-use and residential uses. The law defines the term “use by right” in this context to mean
that the local government’s review of the Low Barrier Navigation Center development may not
impose certain requirements, such as a conditional use permit or other discretionary review or
approval. The City allows, by right, the development of Homeless Shelters, Transitional Housing
and Supportive Housing within specific zones, but not in all zones that allow mixed-use or
residential development. As such, the Housing Element includes revised Program 8.18 that states,
“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).” This is identified as a high priority program to
be implemented by July 2021 (see Appendix I).
g) Farmworkers
The City of San Luis Obispo is in the County's central coast agricultural region. The City is mostly
urbanized with only a few small farms agricultural operations (family and non-profit) still engaged
in agricultural production. According to the 2017 ACS, about 1.1 percent of the City’s labor force
over 16 years of age work in the agriculture, forestry, fishing, hunting, and mining industries, or
approximately 269 persons. Since less than two percent of the City’s labor force works in
City of San Luis Obispo Draft Housing Element, October 2020
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agriculture, it follows that few farm workers actually work or live in the City; thus not stimulating
a critical housing need for the City.
Table B - 21: San Luis Obispo County Farm Operations, 2017
Farmworkers Farms
Farm operations with less than 10 employees
Permanent (150 days or more) 1,049 465
Seasonal (less than 150 days) 1,260 485
Total 2,309 950
Farm operations with 10 or more employees
Permanent (150 days or more) 3,686 85
Seasonal (less than 150 days) 5,421 103
Total 9,107 188
Source: USDA Agriculture Census, 2017
SLOCOG 6th Cycle Data Package 2019, Table 17; California Dept. of Housing & Community Development (HCD)
Agriculture is one of San Luis Obispo County’s primary industries; however, it is difficult to
determine how many farmworkers live in the County or City because it is surrounded by land
devoted to agricultural uses. It is likely that farmworkers are housed on site at agricultural
operations outside City limits. Some are permanent residents and others are seasonal migratory
workers. The US Department of Agriculture’s (USDA) Census compiles farm employment
information. Table B-21 shows farmworkers and farms in San Luis Obispo County by size of farm
operations. In 2018, the Board of Supervisors directed County Planning staff to create an ordinance
to incentivize and remove barriers for the development of agricultural worker housing for these
larger farms.
The Employee Housing Act (Government Code Section 17021.5 and 17021.6) requires that any
employee housing occupied by six or fewer employees shall be considered a single-family
structure with a residential land use, and must be treated the same as a single-family dwelling of
the same type in the same zone. In addition, employee housing consisting of no more than 36 beds
in a group quarters, or 12 units or separate rooms or spaces designed for use by a single-family or
household, must be considered an agricultural land use and be treated the same as any other
agricultural activity in the same zone.
Sections of the City’s Zoning Regulations are consistent with the Employee Housing Act and
others require revisions to comply. Table 2-1 (Uses allowed by zone) identifies that “Single-Unit
Dwellings, Detached” and “Caretakers Quarters” are a permitted residential uses, where no
Conditional Use Permit (CUP) is required, in Agricultural (AG) and Residential (R-1, R-2, R-3,
and R-4) zones and thus employee housing is allowed in these zones. To address conflicts of the
City’s code and the Employee Housing Act, the City is including new Program 8.23 that requires
an update to the Zoning Regulations including: 1) An update of Table 2-1 to allow single-unit
dwellings without a CUP within the Open Space and Conservation (C/OS) zone and allow
employee housing consisting of no more than 36 beds in a group quarters, or 12 units or separate
rooms or spaces designed for use by a single-family or household within the C/OS and AG zones,
and 2) Removal of Chapter 17.148 - High-Occupancy Residential Use Regulations.
City of San Luis Obispo Draft Housing Element, October 2020
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h) Students
It is estimated that Cal Poly State University and Cuesta College students comprise more than one
third of the City's population. As a result, students strongly influence the City’s housing supply
and demand. Although often grouped into low-income categories statistically, many students can
spend more on housing than income data suggests because of parental support or larger household
sizes. By pooling their housing funds, groups of students can often afford more expensive housing.
This contributes to higher rents in San Luis Obispo compared to other parts of the County.
Cal Poly’s total enrollment was 21,812 students in fall 2018. In fall 2018, Cal Poly had on-campus
housing available for 7,758 students, with about one third of the Cal Poly student population
housed on campus. In fall 2018, 14,050 Cal Poly students, or about two-thirds of the University’s
total student body, lived off-campus within the City of San Luis Obispo or other nearby areas
within the County. According to the 2018 Cal Poly Campus Transportation Survey, approximately
7 percent of students living off campus reside outside the City within the County, which is about
980 students. Subtracting out these students who live outside city limits, the remaining estimated
number of Cal Poly students who live in city limits is about 13,070 students.
According to Cuesta College, the enrollment of the Cuesta campus north of San Luis Obispo for
the fall 2019 semester was 7,224 students. Historically, half of the student body of the main campus
has lived within City limits, which would be about 3,600 Cuesta students living in San Luis Obispo
in 2019. Overall in 2019, about 16,670 college students were estimated to be living in San Luis
Obispo, about 36 percent of the City’s population. Cuesta College has no on-campus housing.
Student housing preferences sometimes result in competition and conflicts with other segments of
the City's population. Student housing complexes close to Cal Poly State University have, since
the late 1990s, experienced high occupancy rates, prompting many students to seek alternative
housing arrangements outside the immediate campus area. Many students choose to find
apartments or condominiums elsewhere in the City, and increasingly, students choose to share
houses in single-family neighborhoods. The presence of students renting houses in neighborhoods
sometimes leads to complaints from surrounding property owners due to lifestyle conflicts, parking
congestion, noise, and property maintenance concerns.
A central theme of the Cal Poly 2035 Master Plan is to create several on-campus student residential
communities and provide faculty and staff housing to accommodate 25,000 students and over
3,900 staff and faculty members on campus, a 20 percent increase for the planning period of 2015-
2035. As of 2018, Cal Poly had the largest on-campus housing program in the California State
University system with over 7,700 students living on-campus. Recent student and faculty housing
facilities built to help meet expanding enrollment are highlighted below:
1) Cal Poly Lofts – 32 student apartments for Cal Poly business students, located downtown
above retail stores along Monterey Street and across the street from Mission Plaza,
housing a total of 35 students. The Cal Poly Lofts opened in 2016.
2) Yakʔitʸutʸu - 696 freshmen student housing units on the Cal Poly campus, containing 3 to
4 beds in each unit and housing a total of 1,475 students. Yakʔitʸutʸu opened in 2018.
City of San Luis Obispo Draft Housing Element, October 2020
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The 728 recently built student housing units developed by Cal Poly will help reduce pressure on
the City’s housing market and help moderate rental cost increases by providing additional housing
options. In addition to Cal Poly affiliated development, there has been other private housing
development that has helped house students in the City. One example is the high-density housing
development “The Academy Chorro” located at 22 Chorro Street which opened in 2018 and has
27 housing units, including four very low-income units. Another recently completed student
housing project is located at 71 Palomar Avenue and has 33 units, 4 of which are very low-income
units. A mixed-use project at 790 Foothill Boulevard is anticipated to start construction in the fall
and will have and 78 units, 12 of which will be very low-income units.
Although these new housing units will help to address housing needs generated by Cal Poly
enrollment growth during the planning period, they will not fully address the existing shortage of
student housing. Student housing will continue to be a major housing need in the City. As of 2020,
Cal Poly is in the process of finalizing their 2035 Master Plan, which guides future student
enrollment and on campus student housing. According to the Master Plan, Cal Poly is planning for
the development of 7,200 more beds by 2035 to accommodate for the future student population.
i) Fraternities and Sororities
Another important concern is meeting the housing needs of student fraternities and sororities.
“Greek” houses are allowed in medium-high- and high-density residential zones, with a Planning
Commission use permit. As of 2019, there are 10 sororities and 15 fraternities that hold fraternal
events and maintain a presence in San Luis Obispo, most of which occupy fraternal “houses”
owned or rented by the organizations. According to Cal Poly, in 2019, over 4,000 students or about
18 percent of Cal Poly students were members of a fraternity, sorority, or other Greek organization.
As part of Greek activities, many Cal Poly fraternities and sororities actively participate in
beneficial university and community programs and events. In addition, they often host meetings,
recruitment activities and social events that can have a negative impact on their neighbors. For
example, on-street parking is affected, and noise and traffic levels often increase due to frequent
visits by students attending fraternal activities. When Greek housing is located close to non-student
housing, compatibility conflicts sometimes arise.
There are few large sites available that could accommodate a new fraternity or sorority house and
still satisfy parking and group meeting needs without posing neighborhood conflicts. Conflicts
between these sororities and fraternities and other citizens have occurred, in part, because there
has never been a shared community consensus on a plan to guide the University, fraternities and
sororities, neighbors and the City on how and where to meet the need for Greek housing. The
solution may be, at least in part, to identify appropriate locations for additional Greek housing on
or near the Cal Poly campus. The Cal Poly 2035 Master Plan briefly discusses this, but states that
further analysis must be done regarding this option in the future before it becomes more realistic.
j) “Shared” Households
San Luis Obispo encourages a variety of housing types to meet varied lifestyles and needs. Many
people are looking for alternative ways to limit the amount of income they spend on housing.
Census figures for 2017 show that more unrelated adults are sharing houses than ever before. In
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the City, the percentage of non-family households (households with one or more non-relatives,
and not including living alone) is 27 percent. In addition to saving money, sharing a house also
provides the benefits of companionship and security. There appears to be substantial community
interest in shared-housing opportunities such as cooperatives or co-housing. Co-housing allows
residents to live in their own private spaces and share centralized dining and recreation facilities.
One local shared housing service in the City of San Luis Obispo is the HomeShareSLO prog ram
provided by SmartShare Housing Solutions. The HomeShareSLO program matches homeowners
with empty rooms, with people seeking housing. Rooms are rented at affordable prices, and owners
and tenants are “matched” based on their compatibility. SmartShare Housing Solutions has found
that the majority of the matches have been lower-income seniors. Some of the obstacles to
providing co-housing in the City are availability of sites, public acceptance, and the possible need
for exceptions to current development standards.
k) Single Room Occupancy (SRO)
A single room occupancy dwelling (more commonly called an “SRO”) houses one or two people
in an individual room (sometimes one room plus separate bathroom or half bathroom) in a multi-
unit building – often a former hotel or boarding house. SRO tenants may share bathrooms and/or
kitchens, while some SRO tenants have individual kitchenettes, bathrooms, or half-baths. SROs
are typically rental dwellings with floor areas of 150 to 450 square feet. They provide a viable
housing option for lower income persons, including extremely low income, very low and low
income, and others who do not desire or require large dwellings or private domestic appliances.
Their small size and limited amenities generally make SROs an affordable housing option,
especially in downtown areas with high land values. They also can serve as transitional housing
to provide an entry point into the housing market for formerly homeless people.
San Luis Obispo allows single room occupancy dwellings in all zoning districts where residential
uses are allowed. The City has two SRO buildings downtown: the historic Anderson Hotel
(discussed in Chapter 5) and the Wineman Hotel. The Anderson Hotel is operated by the Housing
Authority of the City of San Luis Obispo and has 68 units serving very-low and low income
persons, many of whom are elderly or disabled. The Wineman Hotel is privately owned and
managed, and has 48 units serving moderate, low- and very-low income persons under an
affordability agreement with the City.
The Housing Element includes a new program (2.15) to encourage the development of new SROs
and small units:
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).
l) Reasonable Accommodations
The City has adopted a Reasonable Accommodation Ordinance (Ordinance 650 §3) to implement
state law and Housing Element programs. The Ordinance provides a fair and reasonable procedure
City of San Luis Obispo Draft Housing Element, October 2020
B24
for disabled persons to request flexibility in the application of land use and zoning regulations to
ensure equal access to housing. The Ordinance establishes a process where the Community
Development Director reviews requests for developing housing to accommodate disabilities as
defined in the fair housing laws. If the requested accommodation is necessary to overcome a barrier
to housing, the Director may grant the request. For a full discussion on the City’s Reasonable
Accommodations process, please refer to Appendix C, page C4.
m) Fair Housing
The Fair Housing Act of 1988 was adopted to safeguard against illegal housing discrimination.
The Law protects a person's right to own, sell, purchase, or rent housing of his or her choice without
fear of unlawful discrimination. The City of San Luis Obispo does business in accordance with the
Federal Fair Housing Law and provides resources for those that feel they have been discriminated
against. Information is provided on the City’s website (slocity.org/government/department-
directory/community-development/affordable-housing/fair-housing-act) and is also distributed by
code enforcement as a part of their interaction with tenants, property owners and property
managers. The City encourages those that have been discriminated reach out to the U.S.
Department of Housing and Urban Development or California Rural Legal Assistance (CRLA), a
local, non-profit legal organization. The Housing Element includes Program 4.8 which calls for
the continuance of providing information regarding Fair Housing by providing up to date
information online and brochures at the front desk, providing educational materials to tenants,
property owners and property, and making public service announcements (including but not
limited to the City’s News page, social media sites, and newspaper ads) every year.”
n) Affirmatively Further Fair Housing
The City Council has made a commitment to make San Luis Obispo a welcoming, inclusive, and
safe community for everyone, and to promoting free thought and speech, while condemning
racism, hate speech, bigotry, violence, and prejudice. In June 2020, the City Council approved and
created the Diversity, Equity, and Inclusion Task Force. This commitment extends into furthering
fair housing within the community for all persons regardless of race, religion, sex, marital status,
ancestry, national origin, color, familial status, or disability, and other characteristics protected by
the California Fair Employment and Housing Act. The City has addressed affirmatively furthering
fair housing in the Housing Element by focusing on the prevention of neighborhoods or housing
types that are segregated by economic status. Policies 4.1, 4.2, 4.3 and 4.4 all focus on providing
housing for all persons, making sure that housing is equable in size, location, and affordability
throughout the City. Policy 4.4 states, “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.” Through program 4.5 the City will
continue to 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 4.1,
4.2, 4.3 and 4.4.
3. Conclusions
Appendix B describes various segments of the population that have varying housing needs and
City of San Luis Obispo Draft Housing Element, October 2020
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challenges they face due to those needs. Table B-22 summarizes the total number of individuals
that require specific housing needs.
Table B - 22: Summary of Housing Needs, 2020
2014-2019 Housing Needs (RHNA)
Remaining and Total Units Special Needs Groups
Extremely Low income 412 (412) Elderly households 5,790 (2017)
Very Low income 413 (413) Disabled persons 4,210 (2017)
Low income 514 (520) Large households 1,204 (2017)
Moderate income 595 (603) Female-headed 1,237 (2017)
Above Moderate 883 (1,406) Farmworker households 269
TOTAL 2,8171 (3,354) Homeless 482
TOTAL 13,192
Overpaying Households Overcrowding
Renters 11,425 (2017) Renters 423 (2017)
Owners 6,620 (2017) Owners 48 (2017)
TOTAL 18,045 (2017) TOTAL 471 (2017)
1Remaining new housing need after credit for dwellings permitted between January 1, 2019 and December 31, 2019.
Source: City of San Luis Obispo Community Development Department, 2020
The main findings of the needs analysis are:
• Overpayment. In 2017, 40 percent of all City households overpaid for housing. Among
low, very low, and extremely low income households, 12 percent of owner households
overpaid, and 56 percent of renters overpaid for housing.
• Overcrowding. Overcrowding has continued to decline in San Luis Obispo since 2010. less
than four percent of rental units and less than one percent of owner-occupied units were
overcrowded in 2017.
• Elderly Households. According to the 2017 U.S. Census, elderly individuals (age 65 and
above) make up seven percent of the total population (5,790 persons) and 1,877 of those
individuals have a disability.
• Disabled Persons. 2,102 individuals within the City aged 18-64 have a disability. The
Census does not record developmental disabilities, however according to the California
Department of Developmental Services, approximately 401 developmentally disabled
residents (all ages) live in the two San Luis Obispo zip codes of 93401 and 93405 in 2019.
• Large Families. In 2017, about six percent of City households, or 1,204 households, were
“large families” with five or more members, at least two of which were related. Large
dwellings with three or more bedrooms made up about 44 percent of the City’s housing
stock, or 8,223 units. The majority of these units were owner-occupied.
City of San Luis Obispo Draft Housing Element, October 2020
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• Female-headed Households. Female-headed households comprised seven percent of the
City’s 18,728 households, or about 1,237 households in 2017. Of these, about one-half
include children less than 18 years of age.
• Farmworkers. Less than two percent of the City’s labor force works in agriculture (269
persons) and very few farm workers work or live in the City.
• Homeless. Homelessness is inherently difficult to quantify. The 2019 San Luis Obispo
County Homeless Point-in-Time Census & Survey reported 482 individuals that were
homeless within the City of San Luis Obispo.
• Regional Housing Needs. San Luis Obispo’s assigned regional housing need for the 6th
Cycle planning period is 3,354. 537 residential units have received building permits in
2019, leaving a remaining total of 2,817.
City of San Luis Obispo Draft Housing Element, October 2020
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Appendix C
Housing Constraints & Resources
______________________________________________________________________________
1. Governmental Constraints
Governmental constraints are the policies, standards, requirements, actions, or fees imposed by
local, State or Federal governments to guide land use and development. Their purpose is to ensure
communities are well planned, and to protect the health, safety, and wellbeing of all residents.
Within the City of San Luis Obispo, local building and zoning regulations are the primary
regulatory tools guiding development. Some regulations, such as the Uniform Building Code and
the California Environmental Quality Act, are State-mandated policies and standards implemented
at the local level. Although State and Federal agencies do play a role in the imposition of
government constraints, these agencies are generally beyond the influence of local government
and are not analyzed in this document.
As further described below, land use, development, economic stability, and construction standards
can affect the type, location, number, and cost of new dwellings. In general, these standards are
intended to protect public health, welfare and safety and are necessary to carry out state, federal or
local law. In achieving these public purposes, government rules may serve to constrain the
construction rate, amount, or design of new housing. State law requires that governmental
constraints on housing be addressed in the Housing Element, with the goal of removing or
modifying such constraints where possible to encourage suitable housing. Program 2.6 calls for
the City to evaluate code requirements and development standards to remove unnecessary
constraints to housing while still protecting public health, welfare, and safety. Such evaluation is
on-going, as part of the preparation, review, or amendment of local development regulations, or as
needed to address specific issues raised by decision makers or the public.
a) Land Use Controls
General Plan
By State law, all California cities must have a general plan to guide land use, transportation,
housing, and other important facets of the community. The general plan is the foundation of all
local land use controls and embodies the community’s vision for the future. Seven mandated
elements, or chapters, make up the general plan, plus optional elements adopted by the jurisdiction
to address special community concerns. Among these elements, the land use element identifies the
location, nature, distribution, and character of land uses in the City.
To implement the General Plan, the City uses a number of planning tools including Zoning
Regulations, Specific Plans, Subdivision Regulations, Community Design Guidelines, Historic
Preservation Guidelines, and Parking & Driveway Standards. Property owners, architects, and
developers use these standards in designing new housing developments. The standards help
explain the City’s requirements and expectations and are used to review development proposals.
City of San Luis Obispo Draft Housing Element, October 2020
C2
Policies outlined in the Land Use Element stipulate the amount, type, and location of housing.
They also help establish the prevailing housing patterns and population density. Four residential
zones account for over 32 percent of total zoned land area within City limits. The City’s General
Plan also includes nine other zones where housing is allowed as part of a mixed-use project or with
special approval. Table C-1 shows the land use zones that allow housing, their existing acreage
and the ranges of density allowed. On average, projects that that include residential units utilize
the maximum density allowed for the site (shown in Table C-1) unless they are located within an
airport safety zone (further discussion on airport compatibility can be found in Section d below).
Table C - 1: Land Use Categories Allowing Residential Uses, 2019
Zone Description Acres in 2019 Max. Allowed Density
(Density Units/Net Acre)1
R-1 Low-density Residential 1,712 7
R-2 Medium-density Residential 631 12
R-3 Medium-high-density Residential 213 20 (18 for properties within
the Airport Safety Zone)
R-4 High-density Residential 220 24
C / OS Conservation / Open Space 2,501 One dwelling per 5 acres2
AG Agricultural 52 One dwelling per 5 acres3
C-C Community Commercial 94 36
C-D Downtown Commercial 49 36
C-R Retail Commercial 200 36
C-N Neighborhood Commercial 39 12
C-T Tourist Commercial 119 12
C-S Commercial Service4 451 24
M Manufacturing4 240 24
O Office 194 12
Source: City of San Luis Obispo, Community Development Department, 2019
1Density Unit is equivalent to a two-bedroom dwelling. Other sized dwellings: studio dwelling, 0.5 DU; one-bedroom dwelling,
0.66 DU; three-bedroom, 1.5 DU; four or more bedrooms, 2.0 DUs. Net acre refers to site area minus dedicated right-of-way.
2 The minimum parcel size may be required to be larger than 5 acres as designated by the zone suffix. For example, C/OS40
requires a minimum parcel size of 40 acres.
3Each legal lot of record may have one dwelling and the minimum parcel size may be required to be larger than 5 acres as designated
by the zone suffix. For example, AG-20 requires a minimum parcel size of 20 acres.
4In combination with Mixed-Use (MU) overlay zone, up to 24 DU/acre allowed. 12 DU/acre considered average density.
General Plan policies encourage infill development to avoid sprawl, and also designate major
residential expansion areas outside city limits and within the Urban Reserve, the City’s anticipated
urban limits at build out. The policies seek to balance residential development with open space
preservation and availability of urban services. According to the Land Use Element, a total of
25,762 dwellings are anticipated within the City by the year 2035, accommodating approximately
56,686 persons. As of January 2019, the State Department of Finance reported 21,403 dwellings
in San Luis Obispo, housing a total of 46,802 persons.
City of San Luis Obispo Draft Housing Element, October 2020
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b) Zoning Regulations and Development Standards
Zoning Regulations implement the City's General Plan land use policies. They establish specific
development standards, allowable land uses, performance standards and the permit process
necessary for the City’s orderly development. Zoning regulations control development by
regulating allowed uses, and by development standards that set density, building setbacks, building
height, lot area and parking requirements. The regulations apply equally to traditional housing,
mobile homes, and manufactured housing. Tables C-2 and C-3 summarize residential zoning
development standards for San Luis Obispo. The standards are comparable to other communities’
requirements and help ensure quality of life for all people in the City.
Table C - 2: Development Standards in Nonresidential Zones, 2019
Zone
Minimum
Lot Area
(sq. ft.)
Max. Lot
Coverage
Max. Bldg.
Height (ft)
Min. Front
Setback (ft)
Min. Other
Setback (ft)
Car Parking
Required
(number of spaces)
Use Permit
Required?
C/OS 5 acres 3 - 5% 35 20 20 Same as R-1 Yes
AG 5 acres 3 - 5% 35 20 20 Same as R-1 No
O 5,000 60% 35 15 5 – 10 Same as R-2 No
C-N 6,000 75% 35 10 5 – 10 Same as R-2 No1
C-R 9,000 100% 45
As provided
in zone of
adjacent lot
As provided in
zone of
adjacent lot
Same as R-2 No1
C-C 6,000 75% 35 5
As provided in
zone of
adjacent lot
Same as R-2 No1
C-D 3,000 100% 502
As provided
in zone of
adjacent lot
As provided in
zone of
adjacent lot
Half of R-2
requirement No1
C-T 9,000 75% 45 10
As provided in
zone of
adjacent lot
Same as R-2 No1
C-S3 9,000 75% 35 10 – 15
As provided in
zone of
adjacent lot
Same as R-2 Yes
M3 9,000 75% 35 10 – 15
As provided in
zone of
adjacent lot
Same as R-2 Yes
BP 9,000 75% 45 10 - 15
As provided in
zone of
adjacent lot
Same as R-2 No
Source: City of San Luis Obispo, Community Development Department, 2019
1Housing allowed by right as part of mixed-use developments.
2Additional building height up to 75 feet may be approved if specific standards are met (SLO Mun. Code Ch. 17.42)
3Mixed-use projects only.
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Table C - 3: Development Standards in Residential Zones, 2019
Zone
Minimum
Lot Area
(sq. ft.)
Max. Lot
Coverage
Max. Bldg.
Height (ft)
Min. Front
Setback (ft)
Min. Other
Setback (ft)
Car Parking
Required
(number of spaces)
Use Permit
Required?
R-1 6,000 40% 251 20 5 – 15
2 parking spaces for
the first 4 bedrooms,
0.75 spaces for each
extra bedroom, plus 1
guest space per 5 units
in a large residential
development
No
R-2 5,000 50% 35 20 5 – 15
0.75 spaces per
bedroom (no less than
1 space per dwelling
unit), plus 1
guest space per 5 units
or 2 spaces for the first
4 bedrooms, 0.75
spaces for each extra
bedroom if single
family dwelling
No
R-3 5,000 60% 35 10 5 – 10 Same as R-2 No
R-4 5,000 60% 35 10 5 – 10 Same as R-2 No
Source: City of San Luis Obispo, Community Development Department, 2019
1Up to 35 feet with Administrative Use Permit
Exceptions to Development Standards
Several exceptions or variance procedures are possible for Planned Developments and Specific
Plans. They allow flexibility in site planning and building design to encourage the development of
housing for special needs groups, and to provide density bonuses for projects which include
affordable housing which meets or exceeds City standards. Table C-4 shows the City’s residential
development standards and exceptions as of 2019.
Additionally, the City has adopted a Reasonable Accommodation Ordinance (Ordinance 650 §3)
to implement state law and Housing Element programs. The Ordinance provides a fair and
reasonable procedure for disabled persons to request flexibility in the application of land use and
zoning regulations to ensure equal access to housing. Examples of accommodations may include
such things as yard area modifications for ramps, handrails or other such accessibility
improvements; hardscape additions, such as widened driveways, parking areas or walkways;
building additions for accessibility; or reduced off-street parking where the disability clearly limits
the number of people operating vehicles.
The Ordinance establishes a process where the Community Development Director (or other review
authority if the request is submitted for concurrent review with another discretionary land use
application) would determine that the individual making the request for accommodation has a
disability as defined in the fair housing laws or is developing housing for individuals with such
disabilities. As part of the application requirements, the applicant would need to establish that,
City of San Luis Obispo Draft Housing Element, October 2020
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because of the disability, the requested accommodation is necessary to overcome a barrier to
housing. If the individual has established the need for the accommodation based on the disability,
the Director may grant the request, subject to findings and applicable conditions, unless granting
the request would be an undue financial or administrative burden to the City or would result in a
fundamental alteration in the City’s land use and zoning programs.
Table C - 4: Residential Development Standards & Exceptions, 2019
Development Feature Flexible Standard Potential Uses
Residential Density Bonuses
35% density bonus automatically allowed if
11% of project units affordable to very-low
income. Other standards and negotiable
density bonuses allowed
Extremely low, very-low, low- and moderate-
income housing, elderly housing.
Non-Conforming Lots
Lots that were legally created but do not meet
current size or dimension standards may be
individually developed
Residential lots less than 5,000 square feet.
Non-Conforming Structures
Dwellings that are non-conforming in terms
of density, yards, coverage or parking may be
rebuilt as previously existing if involuntarily
destroyed
Legal, non-conforming single- and multi-
family dwellings that are legal, non-
conforming and are involuntarily damaged or
destroyed
Density Transfer
Residential density may be transferred within
areas covered by a planned development
rezoning (PD)
Hillside or creekside lots where development
capacity transferred to cluster development
Where a portion of a lot is within a zone or
zones that allow residential use and the rest of
the lot is in a C/OS zone, and the portion
within the C/OS zone is not large enough to
allow one dwelling.
The fractional dwelling unit potential from
the C/OS zone may be transferred to the other
portion of the lot, without planned
development rezoning
Street or Other Yard Setbacks
Street yards may be reduced to 10’ for
buildings, and Other Yards reduced to 0’ with
minor use permit (MUP) approval
Additions/remodels of legal, non-conforming
dwellings; zero-lot line developments
Tandem Parking
Required spaces may be arranged in tandem
(1 space behind another) subject to Director’s
review and approval of Director’s Action.
Dwellings with garage conversions and for
additional parking for single dwellings
Shared Parking
Where a shared parking facility serving more
than one use will be provided, the total
number of required parking spaces may be
reduced by up to 20 percent with Director
approval via a Director’s Action
Mixed-use developments where compatible
residential and commercial uses share parking
Parking for Elderly and Low-Income
Housing
½ space/unit required for elderly housing; 1
car space plus 1 bicycle space/unit for very-
low/low income
In combination with density bonus, allows
efficient utilization of site for special needs
housing
Parking and Driveway Requirements
Parking and driveway standards (width,
design, materials) variable with Director
approval
Allows more creative design of housing;
especially useful on small sites or for older
neighborhoods
Building Height
Components of solar energy systems,
chimneys, mech. equipment, vents, steeples,
and antenna may extend up to 10 ft. beyond
allowed building height
Housing with solar energy systems, roof-
mounted mechanical equipment, or
telecommunications facilities.
Downtown Building Height
Additional building height (to 75 ft.) where 50
ft. normally allowed if affordable housing is
included
SROs, extremely low, very low, low, and
moderated income housing in denser, urban
setting
Source: Community Development Department, 2019
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Energy Conservation and Climate Action
The City continues to seek ways to support energy conservation and climate action in a variety of
ways. The California Building Code (CBC) contains standards that regulate the method of use,
properties, performance, or types of materials used in the construction, alteration, improvement,
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 exterior and vice versa), residential and
nonresidential ventilation requirements, and non-residential lighting requirements. All new
structures, including new residential units, are required to comply with the CBC resulting in
reduced energy demands.
The City’s Conservation and Open Space Element, Subdivision and Zoning Regulations promote
energy-conserving design and placement of buildings. Additionally, in 2018, the City committed
to developing a plan to achieve carbon neutrality by 2035. This effort is one of the most ambitious
in the nation and will require collaboration throughout the community. Along with this effort, the
City is anticipating the adoption ofadopted an updated Climate Action Plan (CAP) in August 2020
and implementation of a REACH code. The REACH code would amend the Energy Section of the
California Building Code and require new construction to be all electric or provide a carbon offset
for new mixed-fuel buildings. In December of 2018, the City joined Monterey Bay Community
Power (MBCPCentral Coast Community Energy (3CE). MBCP 3CE is an existing community
choice energy program that serves the counties of Santa Cruz, San Benito, and Monterey and
provides 100 percent carbon free electricity with a rate savings relative to PG&E. Programs 9.10
and 9.11 will continue to support the creation and implementation of incentives to promote “green”
housing construction and the reuse and recycling of materials through the architectural
development review process, implementation of the City’s updated CAP, and other Climate Action
goals.
Mixed Residential and Commercial Uses
Mixing residential and commercial uses is encouraged to promote housing development close to
jobs and employment centers, to exploit affordable infill housing opportunities and to promote a
compact, pedestrian- and transit-friendly urban structure. Mixed-use projects are allowed by right
in all commercial zones except for Service-Commercial and Manufacturing zones, which require
Director approval and Planning Commission approval respectively. Program 5.5 has been added
to the Housing Element to update the Zoning Regulations to allow mixed-use development within
Service Commercial (C-S) and Manufacturing (M) zones without a use permit within three years
of the adoption of the Housing Element.streamline the permitting process for mixed-used projects
in commercial zones. Mixed-use development refers to the vertical or horizontal mixing of
commercial and residential uses on the same parcel. There is no minimum commercial floor area
or number of dwellings established. Typical mixed-use developments include one to two
residential floors above commercial uses on the ground level, and mixed-use development is
allowed on parcels as small as 3,000 square feet. The Downtown Commercial zone ideal for
mixed-use development and the Zoning Regulations have been updated include a requirement that
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all new commercial developments in the C-D zone shall include housing (Section 17.32.030.C).
Program 6.12 calls for additional incentives to encourage mixed-use developments in the
Downtown, Upper Monterey, and Mid-Higuera Special Focus Areas including flexible density,
use, height, or parking incentives.
Parking Requirements
San Luis Obispo’s residential vehicle parking requirements are shown in Tables C-2 and C-3. The
type and number of parking spaces varies by zone. The City’s parking standards allow variety in
parking locations, layouts, and design in order to promote more efficient and attractive use of
residential sites. Bicycle, motorcycle, and electric vehicle charging spaces are also required for
multi-family housing; the bicycle parking requirement is 2 spots per unit, plus 1 guest spot per
every 5 units and the motorcycle parking requirement is 1 motorcycle space per 20 car spaces.
Parking for affordable housing units can utilize affordable housing incentives. Zoning Regulations
Chapter 17.140: Affordable Housing Incentives, Section 17.140.040 (k) provides the parking
requirements for affordable units:
1. Upon the request of the developer, parking ratios that meet the criteria outlines in Chapter
17.140, inclusive of handicapped and guest parking, shall be as follows:
a. Studio to one bedroom: one onsite parking space per unit.
b. Two to three bedrooms: two onsite parking spaces per unit.
c. Four or more bedrooms: two and one-half parking spaces per unit.
d. Senior housing: 0.5 spaces per bedroom
2. Housing developments occupied exclusively by extremely low, very low, or low-income
households, as defined by the State, may provide one car and one bicycle space per
dwelling unit.
3. If the total number of parking spaces required for a development is other than a whole
number, the number shall be rounded up to the next whole number.
4. For purposes of this Chapter, a development may provide onsite parking through tandem
or uncovered parking, but not through on-street parking.
5. An applicant may request additional parking incentives or concessions beyond those
provided in this Chapter.
Parking requirements indirectly constrain housing because the Zoning Regulations require that
parking be provided on the same site as the use, this reduces the amount of land available for
residential development. While excessive parking requirements can unduly constrain housing,
insufficient parking can adversely affect residents’ safety, quality of life and neighborhood
compatibility. The City’s standards seek to establish a balance by allowing flexible requirements
that can be tailored to specific site conditions where necessary. Program 6.11 calls for continued
flexibility in parking regulations for housing development, especially in the Downtown (C-D
zone), which allows a base residential density of 36 density units per acre with reduced or no
parking requirements in conjunction with payment of an in-lieu fee.
Although the C-D zone allows the highest base residential density housing in the City, housing is
difficult to build, in part, because of the difficulty in providing parking. The long-term strategy is
to build public parking facilities on the edges of Downtown to encourage infill and intensification,
City of San Luis Obispo Draft Housing Element, October 2020
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increase public transit opportunities and design a more “pedestrian friendly” Downtown. ACS data
shows that in 2017, 8.3% of the households in San Luis Obispo did not own a car. For those without
cars, or those who use cars infrequently, Downtown provides an alternative housing choice near
schools, shopping, nightlife, jobs, and services. For those who do need cars, the City offers the
Downtown Residential Overnight Parking Program (DROP). The overnight parking option is
available, for a fee, within two of the parking structures located downtown and is limited to
downtown residents only. Additional flexibility to allow very low or no parking requirements for
residents without cars and with adequate guarantees tied to occupancy, could help expand housing
opportunities in this important and desirable location.
Subdivision Regulations
Subdivision regulations determine how land is subdivided and sets requirements for facilities such
as public streets and utility lines that serve the new subdivisions. Special limits and requirements
are often set by the City Council when approving individual subdivisions. The minimum lot size
of most residential zones is 5,000 square feet, with minimum widths of 50 feet; however,
exceptions to lot size and dimensions are possible with City Council approval. As a special type
of attached, ownership housing, the Condominium Regulations set minimum standards for open-
space recreation, laundry facilities, solar heating and storage that are higher than those applied to
rental housing.
Lot Sizes
Lot sizes and established neighborhood patterns influence the types of housing within a
community. Historically, most residential lots in San Luis Obispo ranged in size from 5,000 to
7,500 square feet, with about 6,000 square feet being common in newer subdivisions. The
subdivision of land into parcels of 6,000-10,000 square feet, regardless of allowed density, has
encouraged the development of low-density, detached housing. Reducing the minimum lot size is
often recommended as a means of increasing housing density and thereby reducing land cost per
unit of housing. It does not necessarily follow, however, that small lots will result in more
affordable housing. There are many coastal resort communities in California with high-priced
cottages on small lots. In high-density residential areas, small lots may encourage the construction
of detached, rather than multi-family housing. Large parcels in medium-high and high-density
residential zones offer the best opportunities to encourage affordable housing.
San Luis Obispo allows relatively small lots of 6,000 square feet in the R-1 zone, and 5,000 square
feet in all other residential zones. San Luis Obispo has the second highest residential density of
the County’s cities (after Grover Beach) with about 4,500 persons per square mile. It remains,
however, one of the most expensive housing markets in the County. Clearly, market demand
strongly influences housing costs. And while the City’s lot pattern has been established in most
areas, lot patterns in new specific plan areas encourage a mix of residential densities and lot sizes.
For example, the San Luis Ranch Specific Plan contains minimum lot size of 3,200 square feet
compared to the typical low-density residential lot size of 6,000 square feet. Reducing lot areas
with a resultant reduction in house size is one strategy to reduce housing costs for those desiring
“starter housing,” such as working couples and small families just entering the housing market.
The Housing Element includes Program 6.20 that sets up a plan to update the Subdivision
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Regulations, within three years of Housing Element adoption, to support small lot subdivisions, as
well as ownership bungalow court development and other alternatives to conventional subdivision
design.
Program 6.22 implements this strategy by encouraging new subdivision standards that promote
small lot subdivisions, bungalow court developments and other innovative development concepts.
c) Specific Plans and Area Plans
As the name implies, specific plans guide the development of a defined area to implement the
General Plan and guide development in expansion areas. Such plans can vary widely in terms of
geographic area covered, degree of specificity, and land uses addressed.
Table C - 5: Estimated Housing Capacity
in Specific Plan Areas, 2019
Specific Plan Areas Dwelling Unit Capacity
Orcutt Area 979
Margarita Area 868
Avila Ranch 720
San Luis Ranch 580
Froom Ranch 174
TOTAL 3,321
Source: Community Development Department, 2019
As shown in Table C-5, The City has five development areas that are planned to accommodate,
when fully developed, could potentially add 3,329 dwellings. Each area’s phasing is determined
by the plan itself or through a development agreementwill be determined, in part, by the
affordability of the dwellings, and by other public benefits such as open space. Each of the specific
plan areas are committed to producing the largest number of dwellings affordable to very low-,
low-, and moderate income residents. Descriptions of the land available and suitable for housing,
including higher density, multi-family rental and ownership housing within the next eight years,
are available in Appendix E Residential Capacity Inventory. Details and discussions about each
specific plan or development area are provided below.
Orcutt Area Specific Plan
Nestled at the base of the Santa Lucia foothills, the Orcutt Area Specific Plan (OASP) provides a
variety of scenic resources for residents of the area and travelers along Orcutt Road and Tank Farm
Road, including views of Righetti Hill, Islay Hill and the Santa Lucia foothills. Located along the
southwestern edge of the city limits of San Luis Obispo and bounded by Orcutt Road, railroad and
Tank Farm Road, the area encompasses 230 acres of land at the base of Righetti Hill.
The Orcutt Area Specific Plan calls for a residential neighborhood with up to 979 residential units
within a variety of housing types. The OASP includes a wide range of zoning to accommodate
single-family and multi-family residential units, as well as market rate and moderate-income units
and low and very low-income units. The Capacity Inventory in Appendix E identifies the various
City of San Luis Obispo Draft Housing Element, October 2020
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sites and their affordability based on projects under review or the density allowed by the zone. It
is not unreasonable to expect low and very low-income units to be developed on the parcels
identified because a similar project was approved in this area for a 68-unit housing project on 1.85
acres for very low and low income individuals (APN 053-061-057).
Margarita Area Specific Plan
The Margarita Area is located in southern San Luis Obispo and is bound by South Higuera Street,
Broad Street, Tank Farm Road, and the ridge of the South Hills. Primarily envisioned for
residential development with another 68 acres slated for residential and business park uses.
Proposals for the Margarita area thus far have included mainly single-family homes with portions
of open space and pedestrian network advancing.
The Margarita Area is ideally suited to accommodate San Luis Obispo’s planned residential
growth for the near future as the area provides convenient access for residents to employment,
shopping and recreation. Community goals for this area include up to 868 homes in a wide range
of housing types. The Capacity Inventory in Appendix E identifies the various sites and their
affordability based on projects under review or the density allowed by the zone. It is not
unreasonable to expect low and very low-income units to be developed on the parcels identified
because two similar projects were approved in this area; a 36-unit housing project on 1.39 acres
and 38-unit project on 1.21 acres.
Airport Area Specific Plan - Avila Ranch Development Plan
On September 19, 2017, the City Council approved the Avila Ranch project to enable the
development of 720 residential units and 15,000 square feet of neighborhood commercial uses on
a 150-acre site north of Buckley Road within the boundaries of the Airport Area Specific Plan
(“AASP”). The project also includes 18 acres of parks and 53 acres of designated open space
within the project boundaries.
The project will address housing affordability in several ways, most notably through the design
itself, which includes cluster development and many medium and high-density housing units (197
R-3 units and 125 R-4 units), as well as R-2 units that have floor areas that are well below the
typical average for single-family detached units in the community. In addition, the project includes
design and development strategies that serve to provide lower cost housing by providing for a
range of housing sizes and types, greater number of deed restricted units, workforce housing
incentive program, and down payment assistance. These are contractual requirements of the
Affordable and Workforce Housing Plan in the Council-adopted Development Agreement
pursuant to Ordinance No. 1639 (2017 Series) and are reflected in the Capacity Inventory
(Appendix E).
San Luis Ranch Specific Plan
The San Luis Ranch Specific Plan project includes a mix of 580 residential units that will be
located along Madonna Road, just south of Laguna Lake Park. The project implements the
development parameters set forth in the Land Use and Circulation Elements with the provision of
housing, commercial floor space, hotel/visitor serving uses, and preservation of agricultural area.
In 2019, the site was annexed into the City and the final map for the overall specific plan was
approved. Similar to Avila Ranch, the project includes design and development strategies that
City of San Luis Obispo Draft Housing Element, October 2020
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serve to provide lower cost housing by providing for a range of housing sizes and types , a greater
number of deed restricted units, workforce housing incentive program, and down payment
assistance. These contractual requirements of the Development Agreement are reflected in the
Capacity Inventory (Appendix E).
Madonna on LOVR Specific Plan (Froom Ranch Specific Plan)
On September 15, 2020, the City Council approved the Froom Ranch Specific Plan. A major
component of the Froom Ranch Specific Plan is a Life Plan Community (LPC) known as
Villaggio, which would provide a variety of independent and assisted senior living units, memory
care beds; skilled nursing beds; and a wellness center and ancillary services. In addition to the
LPC, the Specific Plan anticipates: 174 multi-family units; 100,000 square feet of commercial
retail uses; a three-acre trailhead park, and 59 acres of land designated for conservation/open space.
The Froom Ranch Specific Plan is currently located just outside the City’s Limits, but within the
City’s Urban Reserve Line and was specifically planned for in the 2014 Land Use Element Update
(Program 8.1.5. SP-3, Madonna on LOVR Specific Plan Area). The project approval includes a
condition of approval that requires the project to be annexed into the City within one year of the
project approval. This condition supports the planning and construction of the multi-family units,
identified in the Capacity Inventory (Appendix E), to be completed during the planning period of
this Housing Element.
d) Residential Growth Management Regulations
The Housing Crisis Act (Government Code §66300, subsection (b)(1)(D) states:
(b) (1) Notwithstanding any other law except as provided in subdivision (i), with respect to land
where housing is an allowable use, an affected county or an affected city shall not enact a
development policy, standard, or condition that would have any of the following effects:
(D) Except as provided in subparagraph (E), establishing or implementing any provision that:
(i) Limits the number of land use approvals or permits necessary for the approval and
construction of housing that will be issued or allocated within all or a portion of the affected
county or affected city, as applicable.
(ii) Acts as a cap on the number of housing units that can be approved or constructed either
annually or for some other time period.
(iii) Limits the population of the affected county or affected city, as applicable.
(E) Notwithstanding subparagraph (D), an affected county or affected city may enforce a limit
on the number of approvals or permits or a cap on the number of housing units that can
be approved or constructed if the provision of law imposing the limit was approved by
voters prior to January 1, 2005, and the affected county or affected city is located in a
predominantly agricultural county. For the purposes of this subparagraph, “predominantly
agricultural county” means a county that meets both of the following, as determined by the
most recent California Farmland Conversion Report produced by the Department of
Conservation:
(i) Has more than 550,000 acres of agricultural land.
(ii) At least one-half of the county area is agricultural land.
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The City of San Luis Obispo resides within a county that has over 550,000 acres of agricultural
land and at least one-half of the county area is agricultural land. The City’ Residential Growth
Management Regulations were adopted in October 1999 and amended in October 2004.
The Residential Growth Management Regulations (outlined in the City’s General Plan says that
“the City’s housing supply shall grow no faster than one percent per year.” This policy was
amended in 2020 to an average of one percent per year over the eight-year Housing Element
planning period. The policy change responds to slow residential growth trends combined with the
phasing and financing plans incorporated into recent development plans. The Residential Growth
Management Regulations requires each specific plan area to adopt a phasing schedule for
residential growth to ensure that established thresholds in the Land Use Element are not exceeded.
It is important to note that capacity that is not utilized in one year, rolls over to the next year. As
shown in Table A-22 in Appendix A, annual increases in the number of dwellings have averaged
0.56 percent over the past ten years. Additionally Uunits that are enforceably restricted (e.g. deed-
restricted) as affordable to extremely low, very low, low, and moderate income households are not
factored into the Growth Management Schedule because they are exempt from the Growth
Management Ordinance along with residential units built in Downtown and Accessory Dwelling
Units (ADUs). Quantified objectives anticipate the construction of 3,354 in-city dwellings during
the planning period. Of these, 58 percent, or 1,948 dwellings, will be affordable to lower income
households, consistent with the percentages of housing affordability in the City’s RHNA number
and would not be affected by the Residential Growth Management Regulations.
Figure C-1 shows the housing and population growth anticipated in the Land Use Element. General
Plan policies promote a balance of land uses to create a healthy, sustainable, and resilient economic
basis, protect the natural environment, and promote housing that can accommodate all income
groups. The Land Use Element states that population growth should not increase more than one
percent per year, until it reaches a build out population of 56,707 persons in 2035. Based on
Source: City of San Luis Obispo General Plan Land Use Element, California Department of Finance, 2019
Figure C - 1: General Plan Anticipated Housing and Population Growth
City of San Luis Obispo Draft Housing Element, October 2020
C13
residential construction permit data, the City has a five-year average annual growth rate of 0.47
percent per year as shown in Table C-6. And as noted above, capacity that is not utilized in one
year, rolls over to the next year.
Table C - 6: Residential Growth Rates, 2015-2019
Year New Units Total Units Growth Rate (%)
2015 53 20,946 0.25
2016 120 21,066 0.57
2017 92 21,158 0.43
2018 53 21,211 0.25
2019 180 21,391 0.84
Five-Year Average Annual Growth Rate 0.47
Source: 2019 Building Permits Finaled, Community Development Dept.
The Airport Land Use Plan and the Airport Overlay Zone
The San Luis Obispo County Airport has a major influence on the community, particularly the
southern part of San Luis Obispo’s urban area where most of the City’s residential growth is
planned. Under State law, a countywide, independent Airport Land Use Commission (ALUC)
adopts a plan identifying land uses that are compatible with present and future airport noise and
safety conditions. The area subject to this Airport Land Use Plan (ALUP) includes land under City
and County jurisdictions.
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 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. The ALUP limits
overall residential density per acre well below densities targeted by City plans.
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 Administration Regulations, and guidance of
the California Airport Land Use Planning Handbook. Residential projects are evaluated for their
consistency with the ALUP or the AOZ depending on where the project is located and those that
fall under the AOZ are have the ability to provide a higher number of dwellings than otherwise
would have been allowed under the ALUP. Reductions based on the ALUP and the AOZ have
been included in the Residential Capacity Inventory in Appendix E.
Density Bonus
The City continues to support and encourage the use of density bonuses as part of residential
projects. Between 2018 to June 2020, the City has supported over 15 requests for density bonuses.
The Affordable Housing Incentives allow a residential density bonus of at least 20 percent for
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developers who build five or more dwellings with at least 5 percent of those units sold or rented at
prices affordable to very-low income households or 10 percent of those units sold or rented at
prices affordable to low income households. Housing developments with at least 20 percent of the
units targeted for persons 55 years or older also qualify for a 20 percent density bonus. Additional
incentives and concessions, including density bonuses greater than 35 percent, reduction in site
development standards and waiver of application and development review processing fees are
available upon request by the developer.
Accessory Dwelling Units
Consistent with state legislation passed in 2016 and 2019 (Section 65852.2 of State Housing
Element law), the City’s Zoning Regulations allow the creation of accessory dwelling units
(ADUs) with ministerial approvals in all zones that allow residential structures or where a
residential structure is existing or proposed. Under the law, cities may establish property
development standards for ADUs, including, but not limited to height, setback, and architectural
design. San Luis Obispo’s accessory dwelling units ordinance allows the approval of an ADU
without discretionary review. ADUs must conform to applicable zoning regulations such as height,
setback and are limited to a maximum floor area of 1,200 square feet. ADUs are treated as an
additional unit but are not taken into consideration when calculating total allowed density on a site.
The County of San Luis Obispo conducted a market study for ADUs, including information from
the City of San Luis Obispo, and found that approximately 50 percent of the ADUs constructed
meet low income housing rental costs(additional discussion is provided in Appendix D). Rental
costs for ADUs are not typically listed separately in local classified ads and rental listings, however
ADUs are likely to rent at prices similar to or slightly higher than apartments.
ADU construction rates in San Luis Obispo have been increasing in recent years (averaging about
30 units per year from 2017 through 2019). The City recently updated its impact fee rate structure
(July 2018) and eliminated impact fees for ADUSs. ADUs are also now an option for additional
units on multifamily properties (starting in January of 2020). As a result, the City expects that
ADU construction will continue to increase during the Housing Element Planning Period.
Manufactured and Modular Housing, Mobile Homes and Mobile Home Parks
Manufactured, modular and mobile homes offer economical alternatives to conventional, “stick-
built” housing. Manufactured homes are those built entirely in a factory under Federal building
codes administered by the U.S. Department Housing and Urban Development (HUD).
Manufactured homes are then transported to the site as single- or multi-section homes and installed
on site. On-site additions, such as garages, decks, and porches, add to the attractiveness of the
homes and must be built to local building codes.
Modular housing describes factory-built homes manufactured specifically to the State, local or
region al construction code requirements wherever the home will be located. As with manufactured
housing, the modular homes are transported to their sites and installed. Mobile home is the term
used for factory-built housing produced before June 15, 1976, when the HUD construction codes
took effect. Other types of manufactured housing include panelized and pre-cut homes, in which
factory-built homes are shipped to the site in panels or as pre-cut “kits” for site assembly.
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Industry advances in quality and design, as well as affordability, dramatically increased the
popularity of these housing types in the late 1990s. According to the Manufactured Housing
Institute in 2018, 22 million Americans (almost seven percent of the U.S. population) lived fulltime
in 8.5 million manufactured homes. Those who live in manufactured housing have a median
household income of just under $30,000 per year. A manufactured home can cost anywhere from
one-third to one-half the cost of a conventional house. Architecturally, manufactured homes
include details and features that make the homes compatible with most residential neighborhoods.
The City has enacted policies to promote mobile homes, such as Policy 8.2 focuses on preserving
mobile home parks and support the development of creative housing solutions such as
manufactured homes on individual lots. In 2019 California Department of Finance figures show
that San Luis Obispo had 1,483 mobile homes, or about 6.9 percent of the City’s housing stock.
This data shows that there is a continued demand for mobile home housing in the City. Mobile
homes, placed on permanent foundations and located outside mobile home parks, and
manufactured housing are treated the same as conventional site-built housing under the City's
zoning, subdivision, and architectural review requirements. Therefore, all residentially zoned land
is available for some type of manufactured housing. Mobile-home parks are also allowed in all
residential zones.
e) Development Review
Development review is required for all residential developments, except individual built, single-
family dwellings (Zoning Regulations Section 17.106.030 identifies cases in which this exception
does not apply for single-family dwellings). In 2018, the Zoning Regulations were updated and
installed three tiers of developmental review: 1) minor, 2) moderate, and 3) major. Fees for each
review under each of these Tiers is provided in Table C-7). The review process was revised to
streamline the review process, especially for moderate level projects that include residential units.
Developmental review is based on the City’s Zoning Regulations and Community Design
Guidelines. The Guidelines describe the community’s expectations and preferences for the quality
and character of new developments and encourage design variety and innovation and are intended
to preserve San Luis Obispo’s distinctive character and sense of history.
• Tier 1 (Minor) is a staff-level review process with no public hearing required and includes
up to 4 new single-unit residences and additions to an existing single-unit residence. This
review has minor fees and takes four to six weeks.
• Tier 2 (Moderate) is a discretionary Director-level review process with a public hearing
conducted as required by the applicable advisory body or review authority and includes the
review of multi-unit residential developments or new single-unit subdivisions of 5 to 10
units. This process streamlines the review process by focusing the advisory body on
making a recommendation to the Community Development Director and not requiring a
project to be re-reviewed by the advisory body. This process takes about 8-10 weeks.
• Tier 3 (Major) is a discretionary Planning Commission review process with a public
hearing and includes the review of residential projects that are 11 units or more. Major
projects usually include various entitlements such as rezoning, use permits, subdivisions,
architectural review, etc. and often more extensive environmental review which can make
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the process time longer, especially if an Initial Study or EIR is required. Process times for
these projects range from 8 weeks to 6 months. To streamline this process, architectural
review is completed by the Architectural Review Commission with a recommendation to
the Planning Commission. This allows the final project approval to be considered by one
advisory body (Planning Commission), reducing ability to appeal a project multiple times.
As discussed above, depending upon the type and scale of the project, development review can
add, on the average, from two to four months of review time, including study, public hearings, and
revisions. The additional holding time, from a development standpoint, adds to development costs
(interest costs, design/architectural fees, construction delays) that are then passed through to
housing buyers. For large residential projects, this cost impact on an individual dwelling is
lessened; however, on small projects, the cost can be a significant factor in the overall purchase
price of a home.
Most of the City’s neighborhoods are an eclectic mix of architectural styles and character. In many
cases, small residential infill projects of four units or less can be integrated into neighborhoods on
lots already zoned for residential use, without posing significant architectural design or
compatibility issues. The City exempts smaller residential projects and ADUs from architectural
review, which improves the economic feasibility of constructing small detached or attached
dwellings. On historic properties, or where site constraints such as creeks, steep hillsides or lot
shape require special consideration, architectural review of the “sensitive site” may be appropriate.
Most of these developments would be eligible for less costly and time-consuming staff level
architectural review.
To streamline the Development Review process, the 6th Cycle Housing Element includes new
programs that eliminate the need for most housing projects to be reviewed through a discretionary
process. Programs 2.17 and 2.18 provide a plan to allow developments (including mixed-use
projects) that include at least 20 percent of the residential units as affordable to lower income
households, to be submitted through a building permit without discretionary review. Even more
specific to the development review process is the inclusion of Program 6.23. This program sets the
plan to update the development review process and expand the thresholds of each review level
(minor, moderate, and major) to eliminate or reduce the number of public hearing required for
housing projects. Implementing these programs will assist in improving the economic feasibility
of constructing housing within the City.
f) Building, Zoning, and Municipal Code Enforcement
Code enforcement focuses on addressing violations of zoning, building, housing, property
maintenance and related municipal code provisions that adversely affect public health, safety, or
aesthetics in order to promote the preservation of the City’s neighborhoods and business districts.
In addition to ensuring that new development is designed and constructed in conformance with
City standards for quality and safety, the Community Development Department also ensures that
property and land uses conform to those standards over time. The Department enforces municipal
and state codes through its Code Enforcement Program. This program includes education,
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mitigation, and prosecution aspects, and has two components: 1) reactive code enforcement, and
2) proactive code enforcement (neighborhood services).
The reactive or complaint-based program primarily responds to complaints from citizens. Upon
receipt of a complaint, a Code Enforcement Officer (CEO) makes a preliminary site visit to verify
the existence of a violation. If a violation exists, a Notice of Violation (NOV) is issued to the
property owner and the necessary steps are taken to resolve the problem. CEOs work with the
property owner to rectify the identified issues (including connecting them with other City
Departments, outside resources, etc.). In some cases, the property owner is unable to make the
necessary corrections and the City will work with a receivership, often utilizing equity in the unit,
to address the code violations. If compliance is not obtained as a result of the NOV, Administrative
Citations and fines may be accessed. More complicated cases are set for abatement proceedings
or, in some cases, criminal prosecution.
The proactive code enforcement program is primarily focused on enforcement of the City’s
property maintenance standards in residential areas of the City. Neighborhood Services Specialists
patrol the City’s neighborhoods and address property maintenance violations in visible yard areas.
Typical violations addressed by this program include debris or furniture in yards, overgrown weeds
or unmaintained landscaping, inoperable vehicles, unscreened trash receptacles, peeling paint, and
vehicle parking in front yards. In both reactive and proactive code cases, property owners are
notified by letter that they are in violation. The letter provides the steps on how to rectify the
violation and who to contact in Code Enforcement for assistance.
Construction Codes
San Luis Obispo’s construction codes are uniform codes enacted by the State legislature and used
throughout the State, with the exemption of additional requirements within the City’s Clean
Energy Choice Program (https://www.slocity.org/government/department-directory/city-
administration/office-of-sustainability/climate-action/carbon-neutral-buildings). The Clean
Energy Choice Program for New Buildings encourages clean, efficient, and cost effective all-
electric new buildings through incentives and local amendments to the California Energy Code.
These construction codesy set forth health and safety standards for structures, plumbing, electrical
and fire prevention. The cost of meeting State construction codes, laws intended to make new
housing safer, stronger, more energy efficient and resistant to fire and earthquake hazards, is
ultimately passed on to housing consumers. In the long term, many building standards can reduce
housing costs through lower utility bills and reduced insurance premiums.
Site Improvement Requirements
Depending on the location of the residential project, the City may require on- or off-site
improvements such as streets, utilities, traffic signals and landscaping as a condition of use permit,
variance, subdivision, or other land-use approval. Dedication of right-of-way, public transit
facilities, easements or access rights also may be required. These improvements add costs that are
usually passed on to the housing consumer. In 2018, the City adopted a fee schedule update based
on an AB 1600 fee study that reduced fees and minimized costs of added requirements on housing
projects beyond those required by State law, or necessary for public health, safety or welfare.
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Americans with Disabilities Act and Housing for Disabled Persons
The Fair Housing Act of 1998 and the Americans with Disabilities Act (ADA) are Federal laws
intended to help provide safe and accessible housing. The City is responsible for enforcing State
accessibility regulations (California Building Standards Code, Part 2, Title 24) when evaluating
new construction. Accessibility requirements of the California Building Code are similar to
Federal regulations and mandate that new developments be designed to ensure full accessibility
and use by the physically disabled. Single-family houses are exempt from these regulations.
San Luis Obispo is committed to removing architectural barriers to persons with disabilities and
implements these laws through its building and planning programs. The City actively enforces
compliance with California Disabled Access Requirements which, in most respects, require a
higher level of adaptable or accessible building design than federal standards. The City has used
Community Development Block Grants to remove architectural barriers in City streets and
facilities, and allocated additional CDBG funds to support the private, non-profit development of
housing that is both accessible and affordable to very-low income elderly or disabled residents.
Compliance with building code requirements may increase the cost of multi-family housing
production and rehabilitation. However, these regulations set the minimum standards that the City
and developers must comply with to ensure safety and the appropriate levels of accessibility in
new developments. As previously discussed, the City’s Reasonable Accommodation Ordinance
provides a fair and reasonable procedure for disabled persons to request flexibility in the
application of land use and zoning regulations to ensure equal access to housing.
Under State law, housing elements must analyze the potential and actual government constraints
on the development of housing for persons with disabilities. They must also demonstrate efforts to
remove governmental constraints on the development of housing for persons with disabilities, such
as accommodating procedures for the approval of group homes. The City has analyzed its
development standards and procedures to identify possible constraints, such as policies, local
building, and planning requirements. The City’s General Plan policies and building and planning
procedures strongly encourage accessibility in new and remodeled housing. In general, City
permitting procedures do not differentiate between housing specially designed for disabled persons
and other types of housing, and City procedures encourage retrofitting existing housing for
accessibility. For example, retrofitting most single-family dwellings with basic accessibility
improvements, such as access ramps, path-of-travel widening, kitchen, and bathroom
modifications can be done with approval of an expedited “over the counter” building permit. This
reduces the time and cost involved in retrofitting for accessibility, since plan check routing and
fees are waived. No planning approvals are required.
More extensive retrofits to bring multi-family dwellings into compliance with the Americans with
Disabilities Act typically would require only a building permit. Minor modifications may be
approved “over the counter” by the City’s permit coordinator. Significant exterior changes to
multi-family housing or to a historically designated property to provide accessibility, such as new
exterior ramps or building façade changes, typically require architectural review and can add about
four to six weeks to the approval process. City zoning and development standards include
provisions that add flexibility and incentives for housing for persons with disabilities and seniors.
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For example, handicapped access ramps up to 30 inches in height may be located by right
anywhere within required building setback areas, and housing occupied by persons aged 62 or
older may provide one-half parking space per dwelling unit or one space per four occupants in
group quarters. Both provisions can substantially reduce the cost and difficulty of providing
housing for persons living with disabilities.
Several group housing developments in San Luis Obispo provide accessible housing for very-low
and low-income persons with disabilities. City zoning regulations allow residential care facilities
of six or fewer residents by right in all residential zones, on upper floors within three commercial
zones, and on the ground floor in four commercial zones with a minor use permit. Additionally,
the zoning regulations allow large care facilities of seven or more individuals with a minor use
permit in all residential zones and within three commercial zones. Residential care facilities in the
City are not subject to residential density limits, and are treated like single-family homes in setting
their parking requirements. Initial construction requires a building permit and must comply with
the usual development standards, such as building setbacks, and may require architectural review.
Housing Element Policy 8.1 encourages housing developments which meet special needs,
including disabled and elderly persons. Policy 8.10 encourages a variety of housing types that
accommodate persons with disabilities. Program 8.23 continues the City’s efforts of seeking grant
opportunities for housing construction and rehabilitation specifically targeted for persons with
developmental disabilities. The City does not have a definition for “family” and does not require
any distance requirements of group homes from one another or any other type of residential
accommodations. In addition, the City does not allow short-term rentals within the City.
Non-conforming Uses and Structures
Some dwellings are subject to premature deterioration and demolition because of their legal, non-
conforming status. A legal, non-conforming use or structure is one that was established with
permits but is no longer allowed and could not be replaced under the current zoning regulations.
Examples include housing as a principal or primary use in the Manufacturing and Service-
Commercial zones. Traditionally, lenders and insurance carriers avoid lending or insuring project
improvements for such non-conforming dwellings.
g) Processing and Permit Procedures
The development review process adds time and costs to a building project. The City's development
review procedures are designed to protect public health and safety, to simplify and expedite the
review process whenever possible, and to ensure that new development meets State and local
development standards within time limits set by State law. The Permit Streamlining Act requires
final City action within 60 days of the date of adopting a negative declaration or categorical
exemption for a project, and within 180 days of the date that a final Environmental Impact Report
(EIR) is certified for a project.
For most minor or relatively simple items which are exempt from environmental review, such as
minor use permits, minor or incidental architectural review, minor subdivisions, and lot line
adjustments, the processing time from submittal to final action lasts approximately four to six
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weeks. More complex planning projects such as new commercial, industrial, and residential
projects, conditional use permits, variances, planned development/rezoning or standard
subdivisions items requireing initial environmental studies typically eight to 12 weeks to process
environmental and such as architectural development reviewof new commercial, industrial, and
residential projects, conditional use permits and variances (Planning Commission), planned
development/rezoning or standard subdivisions typically require eight to 12 weeks. The City’s
most complex planning items include general plan amendments, rezoning, annexations, and zoning
regulations text amendments. Any development project that requires an EIR can take six months
or longer from the date an application is filed to final City action.
Development review procedures, such as public notices, hearings, and environmental reviews, are
mandated by State law and also add to the time needed for the approval of new housing projects.
The City continually evaluates its zoning and subdivision requirements to simplify and speed up
development approvals. For housing developers, time is money. Efforts to reduce the time required
to process development applications can result in lower costs to the housing consumer. Examples
of permit streamlining actions the City has taken include:
• Clear development standards, guidelines, and checklists available conveniently on-line.
• Applicants can apply for minor projects online.
• Minor housing additions and remodels may be approved by City staff as “minor or
incidental” architectural review or through the building permit process.
• When architectural review is required for a project with 10 units or less, the Community
Development Director may grant exceptions to development standards along with
architectural approvals.
• The City’s Housing Programs Coordinator assists housing developers with processing
inclusionary housing requirements and where possible, project funding.
Individually built single family dwellings are allowed by right in all residential zones and in
Agriculture and Conservation/Open Space zones. These need only building permit approval prior
to construction – typically an eight to twelve-week approval process for such projects. To
encourage small residential projects and infill development, the City's zoning regulations exempt
the construction, relocation, rehabilitation, or remodeling of up to four dwellings of 1,200 square
feet floor area from Architectural Review Commission review. Such housing may be allowed with
“minor or incidental” architectural review, a less costly and expedited review process taking about
four to six weeks for approval. Residential developments of five or more units typically require
more extensive planning review, including environmental review, architectural review, and
subdivision or land use review.
Other residential development, whether single-family subdivisions, townhomes, duplexes or other
larger multi-family projects are allowed in specific residential zones and require various levels of
review. Single-family residential developments of more than four units are allowed by right in all
residential zones, subject to City development standards, state and local subdivision standards and
compliance with the California Environmental Quality Act. R-1 zones are typically developed with
market rate housing affordable to moderate- and above-moderate income households. Residential
developments such as duplexes, triplexes, fourplexes or other multifamily projects are allowed by
right in the R-2, R-3, R-4, and Office (O) zones. A majority of the extremely low, very low, and
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low-income units are constructed as a part of a multi-family development.
The number of units within a project and the project location dictate the level of review and time
necessary for project approval. Larger residential development projects, such as standard
residential subdivisions and condominium developments typically require three levels of review:
design review and recommendation by the Architectural Review Commission, tentative tract (or
parcel) map and environmental review and recommendation by the Planning Commission and final
project approval by the City Council. In historic districts or on historically designated properties,
Cultural Heritage Committee review may be required for a new residential development. Average
permit processing time for a 100-lot residential subdivision is about six months to one year for
planning approvals, plus an additional six months for building plan check and permit issuance.
Smaller residential developments can complete planning review and permit processing in one year
or less if an environmental impact study is not required.
Processing and permit procedures for multi-family residential projects are similar to those for
single-family developments of more than four units (such as standard residential subdivisions and
planned developments with detached, single-family houses or condominiums). Multi-family
residential developments are allowed by right in the R-2, R-3, R-4, and office zones or as part of
a mixed-use development in the commercial retail, community commercial, neighborhood
commercial, tourist commercial, and downtown commercial zones and are conditionally allowed
in manufacturing and service commercial zones.
Depending on the specific zone, residential density ranges between 12 to 36 density units per acre.
Density is based on the total site area and not just on the vacant portion of the site utilized by
commercial or industrial uses. The processing and permit procedures are similar to multi-family
housing developments. Average permit processing time for a multi-family or mixed-use residential
development project is about six to eight months for planning approvals, plus six months for
building plan check and permit issuance. As with single-family residential, development review
typically involves a single application combining all approval requests, such as environmental
review, architectural approval and (if required) subdivision and use permit approvals. Building
plans for housing projects are typically submitted within six months to one year after receiving
planning entitlements.
Time Extensions
Securing planning approvals and construction permits involves significant time and expense by a
developer as well as the permitting agency. Expiration of approvals or permits can substantially
increase project costs by requiring repayment of fees, additional review time and uncertainty, and
in some cases, project redesign. Normally, planning approvals expire in one year after the date of
approval. Construction permit applications and permits also expire in one year after submittal or
approval, respectively. The City allows multiple time extensions for projects that request an
extension. Such extensions are handled administratively, with a three year limit on entitlement
approvals and no limit on the number of building permit extensions provided that project site
conditions have not changed, the building code has not changed, and there are no public health or
safety concerns posed by a time extension.
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h) Development Fees
Application and Permit Fees
Local governments levy fees and assessments to cover the cost of processing development
applications and permits, and to cover the cost of services. These fees help ensure high-quality
housing development and the provision of adequate public facilities and services. Development
costs, including application and permit fees, are typically passed through to the consumer in the
form of higher rents or sales prices for new housing where possible within prevailing rent and sales
prices. Consequently, City fees can increase development costs and affect housing affordability.
In most cases, City development fees assume full cost recovery for actual costs to deliver the
planning, building, and engineering services. The City reviews and updates service charges on an
ongoing basis to ensure that they keep pace with changes in the cost-of-living and changes in
methods or levels of service delivery. State law generally provides that fees for services cannot
exceed the reasonable actual costs for providing services. In implementing this provision, the City
adopted the goal of comprehensively analyzing service costs at least every five years, with interim
adjustments annually based on changes in the consumer price index. In 2016, the City contracted
with NBS Government Finance Group (NBS) and initiated the process to review and update the
City’s user and regulatory fees. In 2017, the City Council adopted a resolution amending the City’s
Master Fee Schedule based on the fee study prepared by NBS. City policies exempt extremely
low, very low- and low-income housing from most development review fees.
One method of evaluating whether San Luis Obispo’s fees are excessive or pose barriers to housing
development is to compare its fees to those in other nearby jurisdictions. The City surveyed
development fees for the County’s seven cities, and for San Luis Obispo County. The City also
compared fees that the various jurisdictions would charge for a new 2,000-square-foot house with
a 500- square-foot garage. The survey showed that for some development fees, San Luis Obispo
is generally higher than the other county jurisdictions. A comparison of the 2019 development fees
are summarized in Table C-7. The City also evaluated development fee costs for typical, multi-
family housing development in San Luis Obispo and compared those costs to total development
costsDevelopment fees include planning application fees, building plan check and permit fees, and
Fire and Public Works Departments’ plan check and inspection fees and impact fees. Common
planning application fees for the City of San Luis Obispo are provided in Table C-7 below. These
fees, depending on the project, apply to both single family and multifamily residential projects.
Once a project receives its planning entitlement (if required), then they submit for building permits.
Residential building permit fees can range depending on the project. Building permit fees for a
1,500 square foot single family unit are approximately $18,000 per unit and fees for a 1,500 square
foot multi-family are approximately $2,700 per unit. This includes all plan check, inspection, and
basic fees (e.g. addressing, etc.).
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Table C - 7: Common Planning Application Fees, Effective July 1, 2020
Common Planning Applications Fees Charged ($)
Development Projects - Major $17,733
Development Projects - Moderate $13,269
Development Project - Minor $4,570
Certificate of Compliance $2,556
Condominium Conversion $16,448
Environmental Impact Report (EIR) Consultant cost + 30% admin2
Environmental Review / Initial Study $6,8012
General Plan Amendment
Map (includes rezoning) $18,4611
Text $17,910
Specific Plan Amendment $17,6971
Annexation $24,3281
Historic Preservation Review (CHC) $0
Lot Line Adjustment $3,343
Lot Merger $856
Planned Development Rezoning $17,4101
Planned Development Plan Amendment $4,8341
Pre-Application Review $994
Pre-Application Review with Site Visit $1,249
Rezoning Map Amendment $13,038
Rezoning Text Amendment $9,259
Tentative Subdivision Maps
1 - 4 lots $7,052
5 - 10 lots $12,226
11 - 20 lots $16,383
21+ lots $27,4151
Minor Use Permit (MUP), Administrative $3,377
Conditional Use Permit (CUP), PC $7,028
Variance $3,222
Source: City of San Luis Obispo, 2020
Notes: Table does not list all planning fees. Only those fees applicable to common residential development are
included. Fees rounded.
1 Fees will be set on a deposit basis and debited by the amount of staff time and other materials required to provide
services or Consultant Fee plus 30% Admin Fee.
2 Separate Fish and Game fees may apply, as set by the State of California
Development Impact Fees
Like many California cities, San Luis Obispo charges impact fees to recover the cost of services
and facilities serving new development. San Luis Obispo policies state that existing residents
should not bear the costs of new development. Impact fees ensure that development projects pay
their fair share of the cost of constructing the water and sewer facilities, streets and other
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improvements necessary to serve new residents. Impact fees are based solely on the capital costs
attributable to new development.
In 2018 the City Council adopted Ordinance 1646 to establish and implement the Capital Facilities
Fee Program (CFFP) consistent with AB 1600. The CFFP established development impact fees
which are imposed as a condition of approval upon all development projects for which a building
permit is issued on or after the effective date of the ordinance. The City does not charge the
maximum fees to ensure that development remains feasible, and to incentivize the construction of
smaller, more affordable housing units. Figure C-2Table C-8 provides the Citywide CFFP and
Impact Fees. It should also be noted that the San Luis Ranch and the Los Osos Valley Road
Subareas have separate fee schedules and are covered in Ordinance 1646.
Table C - 8: Capital Facilities and Impact Fees, Effective July 1, 2020
Fee Category Single Family
(1,500 square feet)
Multi-family
(1,500 square feet)
Transportation1 $9,828.00 $7,636.00
Parks2 $6,031.00 $4,343.00
Police $668.00 $481.00
Fire $569.00 $410.00
Water $12,416.14 $12,416.14
Wastewater $11,531.37 $11,531.37
Total Estimated
Impact Fees $41,043.51 $36,817.51
Note: The City's development impact fees are subject to annual increases and are subject to an additional 1.75%
administrative charge.
(1) The transportation fees shown are for Citywide sites. Site located in the San Luis Ranch and Los Osos Valley Road
subareas have a separate fee schedule.
(2) Fees shown reflect Parkland In-lieu Fees authorized by the Quimby Act (single family residential uses only) and
Park Development Impact Fees authorized by the Mitigation Fee Act (single family and multifamily residential uses).
Development in the MASP, OASP, Avila Ranch or San Luis Ranch areas will meet park and recreation obligations
per the terms of applicable Specific Plans and/or Development Agreements
The total fees for a building permit, CFFP, and impact fees for a 1,500-square-foot single family
unit would be approximately $59,000 and approximately $39,500 for a 1,500 square foot multi-
family unit.
i) Infrastructure
The City is committed to living within its resources, while planning to meet the resource needs of
its citizens. Residential development requires that adequate roads, drainage, water, sewer, fire
protection and other public services are available. Generally, the developer provides facilities
within or next to the development site, while the City is responsible for the facilities that serve a
larger area. For example, the City provides arterial streets, a wastewater reclamation facility and
sewer lift stations, water supplies, a water treatment plant, and major water distribution facilities.
When an area is subdivided, the subdivider installs local roads and utility lines. Historically, the
costs of extending municipal services to support new development were offset by utility customers
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and taxpayers. Like many cities, San Luis Obispo requires developers to pay for the increased
capacity of citywide facilities needed to serve development.
Most sites within the City have streets and utility lines nearby, so they can be developed without
significant extensions. However, areas at the edge of the City will need service extensions. A
specific plan is required for each major development area, and a development plan for each minor
area. These plans will address phasing of development and services.
Water Available for Development
Per Water and Wastewater Element (WWE) 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, achieving the goal of diversifying its water supply
portfolio to meet current and future community needs.
Water Supply Sources
Salinas & Whale Rock Reservoirs
Salinas and Whale Rock Reservoirs have served as the City’s primary water supplies for over 50
years. The County of San Luis Obispo Flood Control and Water Conservation District provides
the oversight, operations, and maintenance of the Salinas Dam and water delivery facilities for the
benefit of the City. The City pays the County for the associated costs for these services.
The City provides the oversight, operations, and maintenance of the Whale Rock Reservoir for the
benefit of the Whale Rock Commission. The Whale Rock Commission is a joint powers agency
made up of Cal Poly State University, California Men’s Colony, and the City. The City draws
water from these two reservoirs in a coordinated manner to maximize the long-term water supply
available from these two sources. As of 2019, the safe annual yield of the two reservoirs is 4,910
acre-feet. In addition, the City has adopted policies in the WWE to account for reductions in
storage capacity at each lake resulting from siltation.
Nacimiento Reservoir
Water deliveries from the Nacimiento Reservoir began on January 5, 2011. As of 2019, the City
has a contractual right to 5,482 acre-feet per year. The County operates and maintains the project
that delivers water from Nacimiento Reservoir to participating agencies. The Nacimiento Project
Commission, which is made up of representatives from each of the four agencies’ governing
boards and County Representative (i.e. County Board of Supervisors), provides oversight to
project operations, maintenance, and the project budget.
Recycled Water
Recycled water use for calendar year 2019 totaled approximately 244 acre-feet, a 44 percent
increase from 165 acre-feet in 2012.
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Groundwater
Per WWE Policy A 3.2.3, the City will use groundwater for domestic purposes when available,
but will not consider this source of supply as a part of its water resources availability due to
limitations for the use of groundwater resources. The City has one domestic well located on Los
Osos Valley Road near Pacific Beach school. The City also maintains a non-potable well at the
City’s Corporation Yard for construction activity use and two non-potable wells at the City’s
Laguna Lake Golf Course for a portion of the golf course irrigation (additional golf course
irrigation demand is met with recycled water).
Water Resource Availability
Table C-9 summarizes the Water Resource Availability, to serve community water demand.
Calendar Year 2019 water availability totaled 10,136 Acre-Feet.
Table C - 9: Water Resource Availability in San Luis Obispo, 2019
Water Resources Acre Feet Description
Salinas & Whale Rock Reservoirs 4,910 Safe Annual Yield1
Nacimiento Reservoir 5,482 Dependable Yield2
Recycled Water 244 2017 Annual Usage3
Siltation from 2010 to 2060 (500) WWE Policy A 4.2.2 4
Total 2019 Availability 10,136
Source: WWE, 2019
1. Quantity of water which can be withdrawn every year while operating both reservoirs in coordinated operations under
critical drought conditions. Safe Annual Yield determined from computer model, which accounts for siltation loss
through 2010 (per WWE Policy A 4.2.2)
2. Dependable Yield is the contractual amount of water the City has rights to from Nacimiento Reservoir.
3. The quantity of recycled water included is the actual prior year’s recycled water usage per WWE Policy A 7.2.2
4. Reservoir siltation is a natural occurrence that reduces storage capacity over long periods, resulting in reduction of safe annual yield.
Table C-10 shows the City’s water supply from 2000 to 2019. As the table shows, is evident that
water usage by City residents has slowly decreased over the past 17 years, even with an increase
in population. Per capita water use in 2019 was at an all-time low of 91 gallons per capita per day.
As of 2019, City residents are using less than half of the City’s water availability. The City’s 2019
Water Resources Status Report states that the City has a robust water supply with over five years
of water availability.
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Table C - 10: Water Usage in San Luis Obispo, 2000-2019
Year Population Total Water Use
(acre feet)
Per Capita Water Use
(gallons / capita / day)
2000 44,179 6,121 124
2001 44,347 5,886 118
2002 44,482 6,032 121
2003 44,357 5,968 120
2004 44,298 6,239 126
2005 44,687 6,098 122
2006 44,559 5,999 120
2007 44,433 6,493 130
2008 44,579 6,359 127
2009 44,829 6,134 122
2010 45,119 5,489 109
2011 45,269 5,285 104
2012 45,312 5,541 109
2013 45,541 5,338 105
2015 45,802 4,990 97
2016 46,117 4,731 92
2017 46,424 4,975 95
2018 46,548 5,225 100
2019 46,802 4,762 91
Average Per Capita 2000-2019 113.4
Sources: City of San Luis Obispo WWE, 2019
Wastewater Treatment (Sewer)
The City's current wastewater treatment facility has a design capacity of 5.1 million gallons per
day (mgd). According to the City’s Utility Department, this is adequate capacity to meet current
needs, plus residential growth anticipated during the 6th Cycle planning period. A comprehensive
upgrade to the City’s Water Resource Recovery Facility is now underway as part of a project called
SLO Water Plus and will support improved water resource recovery, flood protection for critical
infrastructure, increased treatment capacity to accommodate population growth and process
redundancy for increased resilience. Planning for SLO Water Plus began in 2015 and started
construction in 2019. The project will increase the design capacity of the wastewater treatment
facility from 5.1 mgd to 5.4 mgd. The project is planned to be completed by 2023.
j) Public Services – Police and Fire
Police and Fire
The police department has assigned personnel in innovative ways to enhance connectivity with the
community. The department has a Neighborhood Officer Program where officers proactively work
within their assigned neighborhood as community liaisons to address concerns and mutually share
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in the problem-solving process. The Community Action Team (CAT) is a partnership between a
police officer and a social worker whose specific function is to address adverse behaviors through
law enforcement and cooperative outreach with mental health, social services, and other involved
stakeholders. Many of their cases involve the unsheltered individuals within the community and
help them connect to local resources.
The City of San Luis Obispo has a full-service fire department that protects the lives and property
of its residents and visitors from the adverse effects of fires, medical emergencies and other
dangers caused by man or nature. The fire department offers fire suppression, specialty rescue,
hazardous materials mitigation, and paramedic advanced life support. Approximately 60% of all
SLO City Fire emergency responders are cross trained as Paramedics. Operating from four fire
stations and with a response time goal of 4 minutes or less travel time to 95% of all emergencies,
the San Luis Obispo fire crews are focused on serving the community, which includes the Cal Poly
San Luis Obispo campus. The San Luis Obispo City Fire Department has an Insurance Services
Office (ISO) Public Protection Class 2 rating. This rare rating is only achieved by about 2% of the
fire departments evaluated in America. The rating is considered by many insurance companies
when deciding the rates on insurance premiums for homeowners and businesses.
k) Schools
Grade school enrollment in San Luis Obispo has declined in recent years. According to the
California Department of Education, San Luis Coastal Unified School District’s enrollment in San
Luis Obispo schools in 2018-2019 was 7,813 students. Due to district budget constraints, new
dwellings will have serious adverse consequences for school staffing, facilities, and programs
unless new development adequately mitigates the adverse impact on school facilities. Mitigation
is generally in the form of school fees associated with issuance of construction permits. School
district fees are collected by the City and used by the District to fund school infrastructure needs.
l) Inclusionary Housing Program
Adopted in 1999 and amended in 2004, the Inclusionary Housing Program implements two core
housing programs of the General Plan – that of providing affordable housing for extremely-low, very-
low, low, and moderate income households, and establishing a housing trust fund. The program
requires that most new development projects help meet affordable housing needs by: 1) building
affordable dwellings as part of a development project, 2) dedicating real property for development of
affordable housing by the City’s Housing Authority or by a non-profit housing provider, 3) paying an
in-lieu fee which is used to fund affordable housing throughout the City, or 4) Use a combination of
the above methods, to the approval of the Community Development Director.
To date, more than 850 deed-restricted or otherwise secured affordable dwellings have been planned
for, entitled, or built since the adoption of the Inclusionary Housing Ordinance in 1999. Additionally,
the City has granted, loaned, or committed $10,450,954 of affordable housing in-lieu funds to assist
with the development of 464 new deed-restricted affordable housing units. To qualify as affordable,
dwellings must have guarantees that they remain affordable for at least 45 years for ownership units,
and 55 years for rental units.
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The Inclusionary Housing Program is one of several tools, including incentives (e.g. parking
reductions, density bonuses, flexible development standards and affordable housing fund) that the
City uses to achieve its affordable housing objectives. The program applies to most new
development, including residential and commercial development. Some types of development are
exempt from the requirement: 1) residential developments of four dwelling units or less; 2) new
commercial developments of less than 2,500 square feet gross floor area; 3) residential and
commercial additions, repairs or remodels, so long as such work does not increase the number of
dwellings by more than four units or increase gross floor area by 2,500 or more; 4) the conversion of
less than five dwelling units to condominiums within a five-year period; 5) commercial condominium
conversions which do not result in the creation of new dwellings; 6) affordable housing projects; 7)
emergency projects; or projects which the City Council determines are necessary to protect public
health and safety 8) projects which provide educational, social or related community services and
proposed by public or non-profit agencies, foundations or similar organizations; 9) projects which
replace or restore a structure damaged or destroyed by fire, flood, earthquake or natural disaster; and
10) projects for which an approved, unexpired tentative map or vesting tentative map exists.
There are two different approaches to maintaining affordability over time: 1) the property owner
agrees to maintain the designated dwelling unit(s) as affordable for at least 45/55 years depending on
the tenure of the unit(s); 2) the property participates in the “shared equity purchase program.” Under
the equity sharing program, the buyer of an affordable unit enters into an agreement with the City
which upon resale of the property, eventually returns a share of the property’s accrued equity to the
City for use in other citywide affordable housing developments. The affordability of the ownership
units is maintained by a promissory note valued at the below market benefit of the particular unit,
which is evidenced by a second trust deed recorded on the property at time of sale.
To assist housing development and partially offset the effects of the inclusionary housing
requirements and other development exactions, the City has used flexible development standards,
streamlined review and permit processing, and affordable housing funds to reduce development costs
and improve economic feasibility. For example, the City assisted with the development of Bishop
Street Studios (featured on the cover of the Housing Element), a 34-unit affordable housing project,
consisting of the rehabilitation of the historic Sunny Acres Orphanage building and three newly
constructed buildings. The City made a substantial financial contribution to the project in the amount
of $1,595,500, including an Affordable Housing Fund Loan, development impact free deferral loan,
and CDBG loan. Additionally, the City provided streamlined review and permit processing, and
completed over 153 building inspections during construction. This development now contains 33
single room occupancy rental units (plus one manager’s unit), of which are permanently affordable
to extremely low, very low, and low-income adults with a diagnosed mental illness.
2. Non-Governmental Constraints
a) Land Costs
Land is the largest component in the cost of new housing, accounting for over 60 percent of
development costs. Because land costs are so high, it is difficult to build affordable housing if the
project involves purchasing land at today's prices. Land costs directly affect the cost of housing.
In turn, land values are determined by a number of factors. In terms of residential constraints, the
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most important of these is land availability and permitted residential density. As land becomes
scarcer, prices increase. The more residential units allowed, the higher the land value.
In 2019, the cost of an average-sized single-family residential lot in San Luis Obispo (based on
closed sales) was estimated by members of the Board of Realtors’ multiple listing service to be
between $306,000 and $607,000, depending on its size and location. In contrast, in 2014 the cost
of a typical single-family residential lot in San Luis Obispo ranged from $200,000 to $450,000.
The demand for residential real estate continues to be very high. Land suitable for residential
development within City limits and in expansion areas adjacent to the City is typically priced to
reflect its “highest and best use.”
b) Construction Costs
Technological advances in home building have increased efficiency and reduced the proportional
costs of labor and materials. Nationally, labor and materials accounted for 69 percent of the cost
of a new home in 1949. By 1989, that percentage had dropped to 53 percent (National Association
of Home Builders (NAHB)). The NAHB conducted a construction cost survey in September 2017
to collect information from builders on the various components that go into the sales price of a
typical single-family home. The 2017 survey showed that, on average, 55.6 percent of the final
sales price goes to construction costs, 21.5 percent to finished lot costs, and 10.7 percent to builder
profit. Construction cost includes all the costs paid by a builder, including costs of materials, labor,
and subcontractors.
According to the 2020 Nexus Study completed by David Paul Rosen and Associates (DRA), the
construction value of an average wood frame single-family residential construction in 2019 is $150
per square foot for living space and parking construction. For a typical, 2,000 square foot detached
house with a garage on a standard-sized lot in San Luis Obispo, total development cost in 2019
would be approximately $300,000 for construction only. When incorporating the average price of
land at $425,200 and construction costs – the approximate cost for a new single-family home is
$725,200 plus City fees. Land cost accounts for approximately 58.6 percent of the total cost of a
single-family residence.
c) Availability and Cost of Financing
Mortgage interest rates significantly affect housing affordability. As interest rates increase, fewer
buyers can afford to purchase a home. As rates decrease, the number of potential homebuyers
increases. As seen in Table C-11, interest rates for a conventional, 30-year fixed loan range are as
low as 3.625 percent and 15-year and adjustable rate mortgages are around 3.125 percent.
Table C - 11: Current Mortgage Rates
Interest Rate APR
30-Year Fixed 3.625% 3.738%
15-Year Fixed 3.125% 3.288%
5-Year Fixed 3.00% 3.925%
Source: Wells Fargo, August 2019
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A wide variety of loan packages and terms are available, making financing accessible for most
home buyers with good credit and moderate- to above-moderate incomes. Although low interest
rates have made housing more affordable than in recent years, the necessary down payment still
can pose an insurmountable obstacle, particularly to first-time homebuyers. Lenders typically
prefer a 20-percent down payment on a mortgage loan. Prospective buyers, who might be able to
support an 80-percent loan, often do not have the financial resources to make the required down
payment. A median-priced home in San Luis Obispo costs $$693,000 (June 2019 Zillow.com),
requiring an $138,600 down payment to get into a new house. Lenders will sometimes loan up to
90 percent of the asking price, but an applicant's credit is much more closely scrutinized, and
monthly payments and monthly income requirements are significantly higher. Consequently,
financing can pose a major obstacle for first-time or moderate income homebuyers, even for those
who might otherwise qualify for a standard loan.
Interest rates are determined by national economic policies and conditions, and there is little that
local governments can do to affect interest rates. Cities may, however, offer interest-rate buy-
downs, gap financing or other programs to expand home ownership opportunities for low- and
moderate income and first-time homebuyers.
d) Insurance Costs
Insurance costs have become an important constraint to building affordable housing. Construction
liability insurance, needed by builders and required by lenders, has become difficult to obtain in
California and when available, is extremely expensive. According to the Home Builders
Association of the Central Coast, liability insurance costs can equal up to about two percent of a
unit’s selling price. In part, insurance cost increases resulted from unprecedented construction
defect litigation, particularly in California, in the 1990s. Most of that litigation focused on
residential condominiums. Condominium construction, a major type of new housing in San Luis
Obispo in the 1980s, is one of the most effective approaches for providing higher-density,
ownership housing for moderate income buyers. Condominium construction fell dramatically in
the 1990s. There appears to be renewed builder and consumer interest in residential condos, and
city housing policies promote this housing type.
e) Investment Expectations
Investment expectations also can add to the cost of housing. Nationally, Americans place a high
value on home ownership because it provides a hedge against inflation and allows us to build
substantial equity in a relatively short period of time. Ironically, the favorable tax treatment
established to protect home ownership has helped push the cost of housing beyond its value as
shelter alone and has created a competitive market for real estate as a commodity or financial
investment. Home ownership has become an elusive goal for many first-time buyers, as prices
increased in response to market expectations. Renters find themselves paying a larger and larger
share of their income for housing, as rental properties are resold to a succession of landlords.
Many homeowners and owners of rental property benefit from significant tax advantages.
Mortgage interest on loans for both a principal home and a second home is usually deductible for
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taxpayers, and interest on home equity loans also is usually deductible. In addition, homeowners
can defer capital gains resulting from the sale of a house so long as another home is purchased at
the same or higher cost, and may avoid paying taxes on capital gains from the sale of a home after
the age of 55. Owners of rental property can deduct expenses such as property taxes, mortgage
interest payments and maintenance costs. Also, since rental property theoretically depreciates in
value over time, owners can deduct part of a property’s value each year from their taxable income.
While depreciation allowances provide an investment benefit for each successive property owner,
they also offer a strong incentive to resell a property once the largest share of depreciation has
been taken. The new, higher sales price is then offset by increased rents. Sales commissions,
typically ranging from four to six percent of the sales price, also affect housing costs.
f) Environmental Constraints
Environmental constraints can reduce the number of dwellings that can be developed on a given
site. Slope, natural and manmade hazards, creeks and other natural features reduce the developable
area of a site and often require special site grading, building or landscape design to mitigate
impacts of development. Given its valley setting, ringed by hills and interspersed with five ancient
volcanic peaks (“morros”) and numerous perennial creeks, San Luis Obispo must balance
environmental preservation with orderly, well-designed development. Measures to protect the
environment are integrated with development standards. For example, a site’s residential
development capacity is based on: 1) the size of the property, 2) zoning, 3) average slope, and 4)
existence of natural features, such as creeks or significant native trees. The Creek Setback
Ordinance limits development near creeks to reduce potential impacts to riparian habitats. The
required setback in most areas is limited to 20 feet from the creek bank, and this limitation reduces
development capacity on sites bordering a creek.
In evaluating the City’s residential development capacity, staff analyzed the general environmental
constraints affecting development for each property. Properties with significant environmental
constraints, such as steeply sloping sites, or sites located on prime agricultural soils were either
excluded from the inventory or were assigned much lower development capacities based on
environmental constraints. Consequently, Appendix D reflects the “realistic” or reasonably
achievable development capacity of sites based on natural and manmade environmental
constraints, rather than on their maximum residential capacity under zoning laws. Further
discussion of this analysis can be found in the Housing Element Update’s Initial Study of
Environmental Review (EID-0218-2020).
Besides natural environmental constraints, manmade constraints may also limit the development
capacity of residential land. For example, the number of dwellings that can be built may be limited
by San Luis Obispo County Airport compatibility, noise limits, or by the 100-year flood hazard
zone. The extent to which these factors affect development varies by location and the City’s
residential capacity estimates take these factors into account. Most of the land affected by airport
safety areas zones consists of service and manufacturing land uses and do not affect the City’s
ability to meet its quantified housing objectives. Within the Downtown core, the majority of the
residential development is mixed-use, therefore the residential component is above existing
commercial structures and not precluded by the flood zone that affects Downtown’s location.
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The Housing Element update’s potential environmental effects have been fully evaluated and
documented in the Initial Study of Environmental Review (EID-0218-202). Based on that
evaluation, the updated Element’s policies, programs, and anticipated housing growth are not
anticipated to have significant adverse environmental impacts and are consistent with the City’s
General Plan and overall growth projections.
Table C - 12: Population Change in San Luis Obispo, 1980-2019
Year Population Annual Change
(%)
5-year Annual
Average Change (%)
*1980 34,143 --- ---
1985 37,378 --- 1.83
*1990 41,958 --- 2.35
1995 42,125 --- 0.07
*2000 44,179 --- 0.97
2005 44,630 --- 0.20
*2010 45,046 --- 0.19
2011 45,286 0.53 0.36
2012 45,303 0.04 0.39
2013 45,558 0.56 0.40
2014 45,950 0.86 0.45
2015 46,331 0.83 0.56
2016 46,363 0.07 0.47
2017 46,705 0.74 0.61
2018 46,741 0.08 0.51
2019 46,802 0.13 0.37
Average,
2010-2019 --- 0.43 0.46
Source: City of San Luis Obispo, Community Development Department, 2019
*U.S. Census figures; all others California Department of Finance.
Population changes are shown in Table C-12. As with housing construction, population growth
rates tend to correspond to regional and national economic cycles and show an average annual
growth rate of 0.43 percent from 2010 to 2019.
g) Economic Constraints
Housing development, unemployment, and properties values have improved over the last several
years for the City of San Luis Obispo. As of 2019, the City had an unemployment rate of 2.5%
and the job market increased by 1.3% from 2018 to 2019. The County’s median home price in
May 2019 was $640,000, up about $1,300 from May 2018, according to the California Association
of Realtors, and the median home only spent 19 days on the market. The low interest rates in the
last year have elevated housing demand as monthly mortgage payments have become more
manageable to home buyers in general. In a 2019 comparison to other Central Coast Counties, the
County of San Luis Obispo ranked in the middle of the pack. Santa Cruz County had a median
price of $935,000, Monterey County at $606,455 and Santa Barbara County at $1,134,649. While
completed foreclosures are on the decline for the State of California, the County of San Luis
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Obispo foreclosures have increased 9 percent in the last year according to Attom Data Solutions.
However, countywide, notices of default are still lower than their peak in mid-2009. Overall
residential construction activity has also increased in recent years. From 2016 to 2019, the number
of residential units issued a building permit annually increased for both single family and
multifamily units, which is illustrated in Table A-21 in Appendix A.
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Appendix D
Residential Land Resources
______________________________________________________________________________
To adequately meet housing needs, it is essential to understand and quantify the City’s residential
land resources. In 2019, the Community Development Department conducted an inventory of
vacant and underutilized land in two geographic areas: 1) within City limits, and 2) outside City
limits but within the Urban Reserve. The inventory also identified properties that contained
“blighted” dwellings to the extent this was apparent from public streets. Survey information was
derived from aerial photography, City permit records, and windshield surveys. The residential
capacity inventory is included as Appendix E. This appendix derived from that inventory.
This appendix, along with Appendix E, addresses the requirements of Government Code Sections
65583 and 65583.2 requiring a parcel-specific inventory of appropriately zoned, available, and
suitable sites that can provide realistic opportunities for the provision of housing to all income
levels within the community. The City’s share of the regional housing need will be met through
the implementation of a variety of strategies (e.g., available and appropriately zoned land, units
built since the beginning of the 6th Cycle RHNA planning period, implementation of specific plans,
and infill development). Pursuant to AB 375, the City’s residential growth strategy promotes a
balanced approach of residential infill and expansion area development to meet its housing needs
and achieve a compact, sustainable community. The adequate sites requirement is addressed
through the identification of available vacant and non-vacant sites that are suitable and
appropriately zoned.
1. Residential Development Capacity Calculation
In estimating residential development capacity, the City evaluated each parcel based on land
area, average slope, zoning, existing conditions , and potential for redevelopment. Parcels in all
zones were evaluated, including residential and non -residential zones. Estimated residential
capacity does not represent the maximum capacity possible. Instead, estimates have been
adjusted to take into account “realistic capacity.” Development capacity was determined by
taking the maximum allowed density in units per a cre and multiplying by the developable lot
area to find the maximum capacity based on zoning regulations. A conservative estimate of 75
percent of the maximum residential capacity was then applied, with the recognition that some
properties do not develop to their maximum build out potential. A full discussion on the Survey
Methodology is provided in Appendix E, Section 3. Parcels with residential capacity are listed
by assessor’s parcel number in Appendix E, Tables E-2 and E-3.
2. Availability of Adequate Sites for Housing
The City’s evaluation of adequate sites began with a listing of individual parcels by zone and
general plan designation. The site suitability analysis identifies those sites that are currently
available and unconstrained so as to provide realistic housing development opportunities prior
to the end of the 6th Cycle planning period. To demonstrate the realistic development viability
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of the sites, the analysis also addressed conditions which may constrain development, such as :
(1) whether appropriate zoning is in place, (2) the effect of development standards and their
impact on projected development capacity and affordability, (3) existing constraints including
environmental concerns, and (4) availability of utilities, infrastructure, and services.
The residential land inventory resulted in not only an identification of sites, but also an estimate
of potential residential development capacity for these sites. The majority of the land available
for residential development is located in: (1) older residential neighborhood s and certain higher
density commercial zones, including the Downtown area, and (2) specific plans that have been
approved for development.
The inventory includes both small and large residentially and non -residentially zoned parcels
and parcels that are vacant or underutilized and could be developed with additional dwellings .
Parcels zoned to allow higher residential densities, include R-3, R-4, C-C, C-D, C-R C-S, and
M, can be developed at densities of at least 20 dwellings per acre and therefore, s uitable for the
development of housing affordable to lower income households. For further discussion on the
housing types, especially for special needs , allowed in each zone, see Appendix B . Except for
some parcels within Specific Plan areas and minor annexation areas, all parcels with residential
capacity are already served by streets, all utilities and public services including police, fire,
emergency medical services and public schools.
By having this connection to services , most underutilized or blighted (and the few vacant) sites
qualify for an exemption from CEQA (Class 32) because the sites are 5 acres or less in size;
residential development is consistent with the General Plan (i.e. Community Plan) and zoning
requirements; an underutilized or blighted site has no value as habitat for endangered, rare or
threatened species ; approval of a residential project would not result in any significant eff ects
relating to traffic, noise, air quality, or water quality and the site can adequately be served by
all required utilities and public services. An exemption from CEQA assists in streamlining the
approval process for a residential project which reduces overall time and cost for the project.
Appendix E, Figure E-3 summarizes in -city development potential by zone, outside city
development potentia l, as well as properties which are not yet zoned, as of June 2020.
According to the estimates for vacant and underutilized properties, there is a total development
capacity within city limits of 3,1554,240 density units , equivalent to 3,1554,240 two-bedroom
dwellings. Opportunities for housing development include:
a. Vacant land zoned for residential use;
b. Underutilized parcels zoned for residential use where lot coverage and density are less than
that allowed by the Zoning Regulations and where infrastructure needs for additional
development can be met;
c. Vacant or underutilized land suitable for mixed-use residential/commercial development;
d. Vacant or underutilized land outside city limits, within the City’s Urban Reserve, including
designated residential expansion areas.
City of San Luis Obispo Draft Housing Element, October 2020
D3
a) Vacant Residential Land
This category includes vacant, developable parcels in the R-1, R-2, R-3, and R-4 zones. There are
115330 acres of vacant residentially zoned land in the City, with 55280 acres located in specific
plan areas and the remaining 6050 acres consisting of vacant lots throughout the City with a
development potential of 336164 dwelling units. Table D-1 summarizes residential development
in specific plan areas in the City. The specific plan areas discussed in this table are the Margarita
Area Specific Plan, the Orcutt Area Specific Plan, San Luis Ranch, and the Avila Ranch Planning
Area, and the Froom Ranch Specific Plan. Within these specific plan areas, there is 319280 acres
of land planned for residential development, with a total of 3,3213,155 dwelling units planned for
development. Of that total, 2,3201,955 of the units are planned for currently vacant or
underutilized land within the specific plan areas. Of the total vacant and underutilized land in these
areas, 8040 acres are zoned R-3 or R-4 and can be developed at densities of at least 20 dwellings
per acre. Therefore, these 8040 acres are considered suitable for the development of housing
affordable to lower income households.
Table D - 1: Specific Plan Development Potential in San Luis Obispo
Specific Plan Areas Total
Acres
Residential
Acres
Total Planned
Units
Units within Vacant &
Underutilized Land
Orcutt Area Specific Plan 152 111 979 400168
Margarita Area Specific Plan 74 74 868 446525
San Luis Ranch Specific Plan 131 40 580 580
Avila Ranch Planning Area 121 55 720 720
Froom Ranch Specific Plan 110 39 174 174
Total Units 588479 319280 3,3213,155 2,3201,955
Source: Community Development Department, 2019
b) Underutilized Residential Land
Underutilized residential land consists of parcels in the R-1, R-2, R-3, and R-4 zones that could
accommodate additional housing based on lot area, slope, and zoning. The total amount of
underutilized residential land is 4248 acres, with a development potential of 192227 dwelling units.
c) Land Suitable for Mixed-Use Development
There are 7671 acres of vacant and underutilized land that could accommodate mixed commercial
and residential uses. Of the total, 6258 acres can be developed at densities of at least 20 dwellings
per acre and therefore, considered suitable for affordable housing development. City policies
encourage a mix of residential and commercial uses (mixed-use). Mixed-use is allowed by right in
the C-C, C-D, C-R, C-N, C-T and O zones, and by use permit in the C-S and M zones. Mixed-use
is also allowed in the PF zone with rezoning to PF-MU. City policies encourage mixed-use in
commercially-zoned areas, particularly in the Downtown Core. The Downtown Core is an area
that historically had many apartments located above ground-floor commercial uses and General
Plan polices encourage housing rehabilitation and intensification this area. Housing production is
also encouraged in areas zoned for Retail Commercial (C-R) and Community Commercial (C-C),
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D4
which allow 36 density units per acre. Other commercial zones allow 24 density units per acre for
mixed-use development, such the Service Commercial (C-S) and Manufacturing (M) zones.
d) Possible Rezonings
Table D-2 identifies parcels which may be appropriate for rezoning to accommodate housing
development within the 6th Cycle planning period. All of these properties have residential
development capacity and are served by streets, utilities, and public services; however, their
additional residential capacity with rezoning is not included in the City’s total residential capacity
at this time and may be included in the future if determined necessary and appropriate to achieve
housing objectives. Most of these areas are suitable for higher residential density development
(R-3 and R-4) or mixed use.
Through zoning, the City sets the range of allowed uses, residential and commercial density,
building height, and other development standards. At the request of citizens, landowners or
developers, or the Planning Commission, the City Council may consider changing the General
Plan and rezoning property up to four times each year. Such changes must be consistent with
General Plan policies on land use, circulation, noise, and other factors governing land use
suitability. Where sites are appropriate for multiple uses, including residential, the City’s General
Plan emphasizes housing development over development of non-residential uses.
Table D - 2: Areas to be Considered for Possible Rezoning, 2019
Address Land Use / Status / Area Existing/ Possible Zoning Estimated Number
of Dwellings2
A) 1499 San Luis
Drive (rezone vacant
and underutilized
School District
property)
The site is 4.36 acres, part of
approximately 65 acres occupied
in by San Luis High School. The
area is surrounded by housing with
a significant amount of office
space uses.
The site is zoned Public Facility. It
may be suitable for R-3 upzone.
Based on allowed
residential density in
the R-3 zone, the
parcel could
accommodate 65
dwellings units.1
B) 1642 Johnson
Avenue (vacant
School District
property)
The vacant parcel is a little less
than 1 acre in size (.77) and is
adjacent to 1499 San Luis Drive.
The location of the site will allow
the two sites to work in
combination to create one
development plan.
The site is zoned R-2 and could be
combined with 1499 San Luis Drive
designated for both low- and
medium- density housing in the
General Plan. The site may be
suitable for rezoning to R-3.
Total units are
combined with 1499
San Luis Drive above.
C) 4325 South
Higuera Street
(PG & E yard)
The parcel is approximately 10.5
acres at the southern end of
Higuera Street. The area is less
developed with manufacturing to
the east with housing nearby.
The site is zoned Service Commercial
and is located within the Airport Area
Specific Plan (AASP).
Based on the allowed
residential density in
the Airport Land Use
Plan (ALUP) the site
could accommodate 50
new dwelling units3
D) 4355 Vachell Lane
(vehicle storage)
The vacant 9-acre parcel is located
next to 4325 South Higuera near
the southern end of town. The
same area and status applies to this
site as stated above.
The area is zoned Manufacturing and
is located within the AASP.
Based on allowed
residential density
within the ALUP the
site would be suitable
to accommodate 40
new dwelling units3.
City of San Luis Obispo Draft Housing Element, October 2020
D5
Address Land Use / Status / Area Existing/ Possible Zoning Estimated Number
of Dwellings2
E) 2143 Johnson
Avenue (adjacent to
County Health
Department)
The vacant parcel is approximately
5 acres and located next to the
County Health Department. Single
Family households, townhomes
and apartments are all designations
within the vicinity of the site.
The site is zoned Public Facility.
There are residential developments
along Johnson Street that are
increased density. There could be the
possibility to increase density to R-2
or R-3.
Up zoning the parcel to
R-3 will allow
approximately 75
dwelling units.
F) 11950 Los Osos
Valley Road (Pacific
Beach High School)
The parcel is approximately 5.4
acres and occupied by Pacific
Beach High School. Houses and
apartments are nearby with the
Costco across the street and the
Prefumo Creek Commons (Target)
located to the east.
The site is zoned Public Facility.
There is opportunity for growth in
this area with the proposed adjacent
development and centralized
location. Land use classifications
within the vicinity would make this
parcel suitable for an up zone to R-3.
Increasing the density
to R-3 will allow 80
new dwelling units.
G) 2500 Block of
Boulevard Del
Campo (adjacent to
Sinsheimer Park)
The area abuts Sinsheimer
Elementary School and is adjacent
to a cul-de-sac of housing.
The site zoning is public facility;
however, it seems only possible for
R-1 single family lots to the area
based on the location and single
family lots across the street.
Approximately 6
single-family houses.
H) 12165 & 12193
Los Osos Valley Road
These parcels make up 111 acres
that include the remnants of the
historic Froom Ranch, and consists
mostly of hillsides and Prefumo
Creek drainage area.
Approximately 20 acres are located
within Urban Reserve and designated
for General Retail. The 2014 Land
Use Element (LUE) update identified
the site as the “Madonna on LOVR
Specific Plan Area.”
According to the LUE,
the site is to have a
minimum of 200
dwelling units.
I) 1150 & 1160
Laurel Lane
(Atoll Business &
Technology Center)
This parcel is 17-acres located just
west of the Union Pacific Railroad
and south of Sinsheimer Park.
This site is currently split zoned for
Manufacturing and Office and
contains an 11,747 s.f. commercial
structure and surface parking lots.
Adjacent zoning includes Office,
Manufacturing and R-3. This site
would be suitable for the whole parcel
to be zoned Manufacturing.
The site could support
a mixed-use project
with approximately
300 dwelling units.
J) 600 Tank Farm
Road (vehicle storage
and temporary
parking)
An 11.7-acre parcel located within
the Airport Area Specific Plan,
north of the San Luis Obispo
County Airport and south of the
Damien Garcia Sports Fields.
The site is currently zoned Business
Park and contains an unimproved
temporary parking lot and vehicle
storage areas. Adjacent zoning
includes Service Commercial and
Public Facility. The site would be
suitable to be rezoned to Service
Commercial and allow mixed-use
development.
The site could support
a mixed-use project
with approximately
210 dwelling units.
K) 12500 Los Osos
Valley Road (053-
141-013)
This parcel is 9.93 acres. The site
is identified in the LUE as a
Special Focus – Special Planning
Area called LOVR Creekside Area
(Program 8.12) and is composed of
agricultural fields and San Luis
Creek.
Approximately 6.8 acres is zoned R-
2 (SP) and the remainder is zoned
C/OS. The site is heavily constrained
by flood potential, limited circulation
access due to the site’s proximity to
the proposed LOVR / Highway 101
interchange, and limited frontage
along LOVR. The site would be
suitable for medium-high density (R-
3) as described in LUE Program 8.12.
The site could support
a residential project
with 102 dwelling
units.
City of San Luis Obispo Draft Housing Element, October 2020
D6
Address Land Use / Status / Area Existing/ Possible Zoning Estimated Number
of Dwellings2
L) Los Osos Valley
Road (053-161-020)
This parcel is 13.25 acres. The site
is identified in the LUE as a
Special Focus – Special Planning
Area called LOVR Creekside Area
(Program 8.12) and is composed of
agricultural fields and San Luis
Creek.
Approximately 7.3 acres is zoned R-
1 (SF) and the remainder is zoned
C/OS. The site would be suitable for
medium-high density (R-3) as
described in LUE Program 8.12. The
site is heavily constrained by flood
potential, limited circulation access
due to the site’s proximity to the
proposed LOVR / Highway 101
interchange, and limited frontage
along LOVR. The site would be
suitable for medium-high density (R-
3) as described in LUE Program 8.12.
The site could support
a residential project of
approximately 109
dwelling units.
Total Potential Dwelling Units 1,2371,026
Source: Community Development Department, 2019
1A dwelling unit is equivalent to a two-bedroom unit or 1 density unit (d.u.). Studios and one-bedrooms (either under 600 square
feet) are the equivalent of 0.5 d.u.
2Calculated number of potential dwelling units for each property takes into consideration 75 percent development efficiency if units
are not taken directly from a proposed development plan and assumes each dwelling unit is equivalent to 1 density unit, or 2-
bedroom dwelling unit, unless otherwise stated
3Likely to require additional approval from the Airport Land Use Commission (ALUC) because the site is located in the ALUP.
e) Accessory Dwelling Units
The City’s Zoning Regulations allow accessory dwelling units (ADUs) with ministerial approvals
in all zones that allow residential structures where a residential structure is existing or proposed.
Section 65583.1 of State housing element law allows local governments to identify realistic
capacity for ADUs in addressing a locality’s share of the regional housing need. The identification
of realistic capacity should be based on the development trends of ADUs in the previous housing
element planning period and other relevant factors. At this time, the City has not identified ADUs
as a housing unit that will count toward its Regional Housing Needs Allocation (RHNA)
ADU construction rates in San Luis Obispo have increased in recent years, averaging about 30
units per year from 2017 through 2019. As a result, the City expects that 270 new ADUs will be
constructed during the 6th Cycle Housing Element planning period (30 units per year). The County
of San Luis Obispo conducted a Countywide market study on ADUs and found, using data from
all the jurisdictions (including the City of San Luis Obispo), that approximately 50 percent of the
ADUs constructed meet the requirements for low income housing. Based on this market analysis,
50 percent (or 135) of those units qualify as low income. The City has counted these units towards
its Regional Housing Needs Allocation (RHNA) (see Table D-5). However, the County of San
Luis Obispo conducted a Countywide study on ADUs and found, using data from all the
jurisdictions (including the City of San Luis Obispo), that approximately 50 percent of the ADUs
constructed meet the requirements for low income housing. ADU construction rates in San Luis
Obispo have been increasing in recent years (averaging about 30 units per year from 2017 through
2019). As a result, the City expects that ADU construction will continue to increase during the 6th
Cycle Housing Element planning period. Additional discussion on ADUs is provided in Appendix
C, Section d.
City of San Luis Obispo Draft Housing Element, October 2020
D7
f) “Pipeline” Projects
The City has a number of residential projects in the early planning stages. These are termed
“pipeline projects” because they are going through the planning review process but have not yet
received entitlements and are not yet counted toward RHNA. These residential projects are
included in the Residential Capacity Inventory (Appendix E, Table E-2). A total of 995 dwelling
units are proposed for development in upcoming pipeline projects. Table D-3 summarizes pipeline
residential development projects as of December 2019.
Table D - 3: “Pipeline” Residential Projects in San Luis Obispo, 2019
Address Zone Acres
Max
Density
per acre
Maximum
Capacity,
Density Units
Proposed
Number of
Dwellings
Proposed # of
Affordable
Units
545 Higuera C-D 0.37 36 13 56 0
1144 Chorro C-D 0.38 36 14 50 13 M
564 Higuera C-D 0.50 36 18 36 2 VL
956 Monterey C-D 0.15 36 5 20 0
2690 Victoria C-R 0.39 36 14 32 32 L
3049 Broad C-R 0.21 36 8 10 1 L
650 Tank Farm C-S 12.72 24 305 249
13 VL,
6 L,
20 M
600 Tank Farm C-S 11.69 24 280 280 0
3720 Broad C-S 1.36 24 33 40
29 VL,
10 L,
1 M
830 Orcutt C-S 0.56 24 13 15 2 L
1030 Orcutt C-S 0.49 24 12 15 0
279 Bridge M 2.19 24 53 18 2 L
1042 Olive C-T 0.52 12 6 15 4 VL
1137 Peach R-2 0.86 12 10 5 0
1034 Mill O 0.26 12 3 5 0
3580 Bullock R-3, C-C 10.73 20 224 192 2 L,
5 M
3700 Ranch House R-3 1.39 20 28 40 5 L,
3 M
3065 Lucca R-2 1.21 12 15 38 38 VL
12165 LOVR R-4 1.80 24 44 44 27 L
12165 LOVR R-3 37.30 20 746 130 0
Total “Pipeline” Units Proposed 1,290995 215184
Source: Community Development Department 2020
City of San Luis Obispo Draft Housing Element, October 2020
D8
g) Entitled Projects
The City has a number of residential projects that have received planning approval but have not
received building permits. These are considered “entitled” projects and the units have not been
counted toward the 6th Cycle RHNA progress in 2019 and will not count until building permits
have been issued. As with “pipeline projects,” these residential projects are not included in the
Residential Capacity Inventory (Appendix E, Table E-2).These units are deducted from the RHNA
number for each income category to establish the City’s housing construction RHNA objectives
(see Table D-5). There is a total of 729 dwelling units proposed as part of entitled residential
projects. Table D-4 summarizes these projects as of December 2019, including the number of
affordable units planned.
Table D - 4: Entitled Residential Projects in San Luis Obispo, 2019
Address Zone Acres
Max
Density
per acre
Maximum
Capacity,
Density Units
Proposed
Number of
Dwellings
Proposed # of
Affordable
Units
790 Foothill C-C 1.30 36 47 78 12 VL
590 Marsh,
581 Higuera C-D 0.30 36 11 52 5 L
667 Monterey C-D 0.43 36 15 30 0
797 Caudill C-R 0.26 36 9 8 0
3249 Broad C-R 0.85 36 31 32 4 M
774 Caudill C-S 0.13 24 3 33 3 VL
3825 S. Higuera M 5.40 24 130 30 0
3750 Bullock R-3 2.12 20 42 68
29 VL,
38 L,
1 M
3750 Bullock R-3, C-C 2.37 20 35 35 0
1241 Laurel C-N 0.40 12 5 22 0
1121 Montalban C-T 0.17 12 2 15 2 VL
3214 Rockview R-2 0.55 12 7 10 1 VL
3810 Bullock R-2 4.08 12 49 32 0
3761 Orcutt R-2 2.95 12 35 43 9 M
3725 Orcutt R-2 8.58 12 103 42 5 M
1355 Orcutt R-2 5.96 12 72 32 0
3987 Orcutt R-1, R-2, R-3 35.83 7 272 45 0
3987 Orcutt R-1, R-2, R-3 35.83 7 272 122 0
Total Entitled Units Proposed 729 109
Source: Community Development Department 2020
City of San Luis Obispo Draft Housing Element, October 2020
D9
h) Building Permits Issued
In 2019, the City issued a total of 537 building permits for new residential units. As allowed by
State Law, the City’s RHNA is adjusted based on the number of dwelling units that have received
a building permit during the 6th Cycle Housing Element Planning Period (see Table D-5). The City
is also allowed to adjust the RHNA number to account for entitled projects as well as for projected
development of Accessory Dwelling Units (ADUs) within the planning period. Since 2019, the
City has 1,266 units that have been entitled and projects that 270 ADUs will be developed within
the planning period, with half of those being low income units (see discussion under section (e)
above). All Extremely Low, Very Low, Low and Moderate Income housing units within the City
that are counted towards RHNA are enforceably restricted housing. Enforceably Restricted refers
to housing that is deemed affordable under the City’s Affordable Housing Standards and that is
subject to deed restrictions, affordable housing agreements or other mechanisms to ensure the
housing remains affordable for a specified period of time (typically 55 years). This is the
mechanism the City uses to ensure that the units that are reported as Extremely Low, Very Low,
Low and Moderate Income housing remain affordable. These units are deducted from the RHNA
number for each income category to establish the City’s housing construction objectives. 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.
Table D - 5: RHNA Credit Captured since 2019
Income Level
(% of County
Median Income)
6th Cycle
RHNA
Year 1
Building
Permits
(2019)
Year 1
Entitled
Projects
(2019)
ADUs
(projected
planning
period)
Total Units
Remaining by
Income Level
Extremely Low &
Very Low 825 0 47** - 778
Low 520 6* 43** 135*** 336
Moderate 603 8* 19** - 576
Above Moderate 1,406 523 620 135 128
TOTAL UNITS 3,354 537 729 270
Total Remaining RHNA: 1,818
Source: Community Development Department, 2020
*These units have been deed restricted through a recorded agreement with the City.
**These units are promised to be deed restricted as a part of the project’s conditions of approval. During the building
permit process, an agreement will be completed and recorded
***50 percent of ADUs, per the San Luis Obispo market study, meet anticipated low income rental prices.
City of San Luis Obispo Draft Housing Element, October 2020
D10
3. Residential Densities
State law has established “by right” minimum densities to use as a basis for determining land
suitability for developing housing for lower income households. City zoning regulations measure
residential density in “density units”. Table D-6 below describes the relationship between
residential density units and the number of dwellings that can be built on a site. In all zones except
the R-1 zone, the number of dwellings that can be built is determined by the number of bedrooms
per dwelling unit, the lot size and slope, and zone. For example, as shown in Table D-6, a one acre
property, with average slope of 15 percent or less and zoned R-2 (medium-density residential) can
be developed to a maximum density of 12 density units per net acre, equivalent to 12 two-bedroom
dwellings. By constructing dwellings with fewer bedrooms per unit, the number of dwellings that
can be built increases. For example, using the same site in the above example, a development could
contain 24 units made up of 24, one-bedroom or studio dwellings (600 square feet or less).
In San Luis Obispo, the minimum density has been established at 12 or more density units per acre
and is equivalent to a minimum of 24 studio/one bedroom (dwelling units) per acre. Eleven City
zones allow base residential densities (before a density bonus) of 24 or more dwellings per net acre
and therefore, are suitable for meeting low-income housing needs. An analysis of the City’s
residential development trends shows that the default density target for lower income housing
development is most commonly achieved in six specific zone districts: R-3, R-4, C-C, C-D, C-R
and C-S zones. These zones allow base densities of 20 to 36 density units per acre, with a total
range of dwelling units from 36 up to 72 dwellings per acre. Consistent with Government Code
Section 65583.2(c)(3)(B), those sites identified in the inventory as having the potential for
residential development at densities of at least 20 dwelling units (du)/acre are considered
appropriate to accommodate housing for lower-income households.
Table D - 6: Maximum Residential Density & Number of Dwellings Allowed by Right
Zones General Plan Land Use
Designations
Maximum
allowed density
units1 / acre
Maximum allowed
number of
dwellings2/ acre
Allows densities
greater than 20
dwellings / acre
R-1 Low-Density Residential 7 7 No
R-2,
C-N,
C-T, O
Medium-Density Residential,
Neighborhood Commercial,
Tourist Commercial, Office
12 24 Yes
R-3 Medium-High Density Residential 20 40 Yes
R-4 High Density Residential 24 48 Yes
C-R,
C-D,
C-C
Retail Commercial,
Downtown Commercial,
Community Commercial
36 72 Yes
C-S,
M
Service Commercial,
Manufacturing 24 48 Yes
Source: City of San Luis Obispo, Community Development Department, 2019
1For average site slope of 15% or less.
2Based on development of studio & one-bedroom dwellings 600 sq. ft. or less equivalent to 0.50 density unit / dwelling.
City of San Luis Obispo Draft Housing Element, October 2020
D11
4. Evaluation of Development Capacity: Identifying Adequate Sites
State law requires that housing elements include an inventory of land “suitable for residential
development” and that the inventory “identify sites that can be developed for housing within the
planning period and that are sufficient to provide for the jurisdiction’s share of the regional housing
need for all income levels pursuant to Section 65584 (Government Code 65583.2(a).” In this
context, land suitable for residential development includes all of the following:
• Vacant sites zoned for residential use.
• Vacant sites zoned for non-residential use that allows residential development.
• Residentially zoned sites that are capable of being developed at higher density.
• Sites zoned for non-residential use that can be redeveloped for and as necessary, rezoned
for residential use.
To accomplish this, jurisdictions must conduct an inventory of land suitable for residential
development, analyze sites’ availability and suitability for housing (e.g. development capacity),
and identify adequate sites to meet its regional housing need, in total and by income group, within
the planning period. Appendix E describes the methodology and results of the City’s land
inventory, addressing vacant, underutilized, and blighted properties, both within and outside city
limits but within urban growth boundaries, that have residential development potential.
Site Development of Infill Properties
Development of parcels allowing at least 50-80 dwellings is desirable in terms of construction
economies and effective use of State or Federal grants. However older, compact cities like San
Luis Obispo do not have the in-city supply of larger lots suitable for residential development. Most
of San Luis Obispo was subdivided into relatively small lots in the early 20th century, with vacant
parcels of 2 to 5 acres in size now rare. Residential development on smaller vacant, underutilized,
and blighted sites have been, and continue to be, a key component of the City’s housing production.
San Luis Obispo is located in a valley, mostly surrounded by and interspersed with hills or
“morros” that limit the extent of outward urban expansion. Since 1994, the City has emphasized
infill development on suitable sites already in the City, close to utilities, public transportation, and
services. When properly designed, various sites in the R-2, R-3, R-4, O, C-C, C-D, C-R, C-N, C-
T, C-S and M zones meet State HCD’s “minimum density” of at least 20 dwellings per acre (to
support the development of low and very low income units) and be compatible with scale and
character of their surroundings. With these zoning and policies in place, developers have been
developing housing on sites that are smaller or currently developed with existing structures .
These housing projects are not limited to market rate units but include a number of mixed -income
and 100 percent affordable low-income projects.
Table D-7 provides examples of these sites that have been entitled or developed over the last
three years. Table D-7 provides the actual number of dwelling units on each site, the maximum
density based on density units (see density calculation discussion in Section 3 above), affordability,
and condition of the site prior to project approval and construction.
City of San Luis Obispo Draft Housing Element, October 2020
D12
Table D - 7: Recent Residential Developments in San Luis Obispo
Address Zone Lot Size
(Acres)
Max.
number of
density
units**
Total
number of
dwelling
units
Percentage
dwelling
units based
on density
Market
&
Moderate
Very
Low &
Low
Percent
of Project
Low &
Very Low
Commercial
S.F.
Condition of the site
at project submittal
1150 Laurel
M-
MU &
O-S
17.04 409.0 98 24% 97 1 1%
Existing Warehouse with only a
small portion of the building
occupied for commercial use. Site
also contains large surface parking
lots and landscaping. The project
proposes utilizing the existing
warehouse space for residential
units. (Note: this is the first phase of
residential development. The owner
is interested in other opportunities
for additional residential
development in the future).
279 Bridge M 2.82 67.7 18 27% 18 0 0% 10,621 Vacant
3720 Broad C-S-S 1.36 32.6 40 123% 0 39 97.5% 1,250 Vacant.
790
Foothill
C-C-
SF 1.34 48.2 72 149% 66 12 16.6% 6,805
Parking lot, 1 occupied & 1 vacant
commercial building, and 2 attached
residential units. Project includes the
removal of existing structures on
site.
2450
Victoria
C-R-
SF 1.78 64.1 43 67% 42 1 2%
San Luis Garbage Corporate site
included a yard and several metal
vehicle sheds. Project includes
removal of all structures on the site
and dedication of a roadway.
City of San Luis Obispo Draft Housing Element, October 2020
D13
Address Zone Lot Size
(Acres)
Max.
number of
density
units**
Total
number of
dwelling
units
Percentage
dwelling
units based
on density
Market
&
Moderate
Very
Low &
Low
Percent
of Project
Low &
Very Low
Commercial
S.F.
Condition of the site
at project submittal
1241 Laurel C-N 2.16 25.9 22 85% 22 0 0%
Single family detached unit,
shopping center and associated
surface parking lot. Project includes
the removal of the single-family
structure.
950 Orcutt M 2.00 48.0 78 163% 77 1 1% 6,800
Small commercial structure, parking
lot and storage yard. Project includes
removal of all the existing structures.
791 Orcutt
R-4-
PD &
C-C-
PD
5.19 86.5 104 120% 102 2 2% 3,488
Vacant. Site is located between two
creeks and the project must meet
creek setback requirements.
2120 Santa
Barbara C-S-H 1.62 38.9 69 177% 65 4 5.7% 3,000
Accessory structures, retail space
and surface parking. Project also
includes removal of existing
structures.
650 Tank
Farm
C-S-
SP 12.75 306.0 249 81% 228 21 8.4% 17,500
Half the site is a mobile home park
with 35 coaches. Half of the site is
used for RV and other vehicle
storage. The mobile home park is
being decommissioned and the
project includes removal of all the
coaches and any accessory structures
on the site. The site is also located
between two creeks and must
comply with creek setback
requirements. The site is also located
in the airport safety zone.
City of San Luis Obispo Draft Housing Element, October 2020
D14
Address Zone Lot Size
(Acres)
Max.
number of
density
units**
Total
number of
dwelling
units
Percentage
dwelling
units based
on density
Market
&
Moderate
Very
Low &
Low
Percent
of Project
Low &
Very Low
Commercial
S.F.
Condition of the site
at project submittal
71 Palomar R-4 1.32 31.7 33 104% 29 4 12%
Master List Historic residential
structure. The project includes the
preservation of the historic structure
and the construction of 33 new units
around the structure on the site.
3682 Broad C-S-S 1.62 38.9 55 141% 9 46 83% Vacant.
Source: City of San Luis Obispo, Community Development Department, 2019
**Maximum density based on density units (see density calculation discussion in Section 3 for more details).
City of San Luis Obispo Draft Housing Element, October 2020
D15
Small Sites Analysis
Development of parcels allowing at least 50-80 dwellings is desirable in terms of construction
economies and effective use of State or Federal grants. However older, compact cities like San
Luis Obispo may not have the in-city supply of larger lots suitable for residential development.
Most of San Luis Obispo was subdivided into relatively small lots in the early 20th century, with
vacant parcels of 2 to 5 acres in size now rare. Residential development on sites of one acre or less
have been, and continue to be, a key component of the City’s housing production. San Luis Obispo
is located in a valley, mostly surrounded by and interspersed with hills or “morros” that limit the
extent of outward urban expansion. Since 1994, the City has emphasized infill development on
suitable vacant or underutilized sites already in the City, close to utilities, public transportation,
and services. When properly designed, one-acre sites in the R-2, R-3, R-4, O, C-C, C-D, C-R, C-
N, C-T, C-S and M zones can meet State HCD’s “minimum density” of at least 20 dwellings per
acre, and importantly, be compatible with scale and character of their surroundings.
To evaluate the feasibility of the residential development on smaller sites 1 acre or less under 2
acres, the City reviewed recent development projects on small sites, as shown in Table D-87. The
review revealed that residential projects approved within the last two years showed high density
development in several zones and often on sites that would be described as underutilized. Table
D-8 provides the actual number of dwelling units on each site, the maximum density based on
density units (see density calculation discussion in Section 3 above), affordability, and condition
of the site prior to project approval and construction. . Overall, there hasve been a wide range of
smaller multi-family projects (1-10 units) being developed fromat 20 -24 dwelling units per acreto
36 , while medium and larger sized multifamily residential projects (11+ units) have been typically
built-out at 26-32 dwelling density units per acre. Higher density development for larger projects
is likely the result of increased fiscal and regulatory incentives for projects subject to inclusionary
housing requirements and including affordable housing, including density bonuses pursuant to
Government Code Section 65915.
To further support maximum development on small lots, the City updated the Zoning Regulations
in October 2018 and set a minimum number of dwellings units on legal lots within the R-2, R-3,
R-4 and Office zones. To help improve residential development efficiency and increase housing
production, the City has revised its development standards to provide more regulatory flexibility
and additional incentives, as described in Appendix C, Table C-4. In addition, the City is looking
at the possibility of flexible density provisions within the Downtown, Upper Monterey, and Mid-
Higuera planning area (Program 6.12). Flexible parking standards, including an in-lieu parking
program in the Downtown and parking reductions with a parking demand study, provide incentives
for denser development Downtown and in residential and commercial zones outside the City core.
The City is considering several additional incentives to residential development, including waiving
parking requirements for some Downtown dwellings, and allowing leased residential parking in
Downtown public parking facilities. Housing Element programs 6.11 and 6.12 target additional
changes to increase housing production and residential development efficiency, including possible
flexible density and a reduction in or no parking requirements.
City of San Luis Obispo Draft Housing Element, October 2020
D16
Table D - 7: Residential Densities of Recent Projects on Small Sites
Address Zone Acres
Number of
Dwelling Units
Constructed
Density Units
Allowed Per
Parcel
Meets/Exceeds
Default Density,
20 units/acre?
3063 Rockview R-2 / C-OS 1.01 8 8 No
950 Orcutt M 2.03 78 48 Yes
791 Orcutt C-C / R-4 4.00 90 96 Yes
2120 Santa Barbara C-S 1.64 69 39 Yes
1148 Fernwood R-3 0.29 5 5.5 No
435 Marsh C-R 0.22 8 7.5 Yes
1121 Montalban C-T 0.34 15 4 Yes
1241 Laurel C-N 2.16 22 25.5 No
790 Foothill C-C-SF 1.34 78 48 Yes
774 Caudill C-R-SF / C-S-SF 0.51 33 18.5 Yes
3720 Broad C-S-S 1.62 40 38.5 Yes
3049 Broad C-R-SF 0.21 12 7.5 Yes
2450 Victoria C-R-SF 1.78 43 64 Yes
71 Palomar R-4 1.43 41 34 Yes
1750 Bishop R-1 / R-2 / C-OS 1.34 34 16 Yes
3680 Broad C-S-S 1.36 46 32.5 Yes
625 Toro R-4 0.45 14 11 Yes
3214 Rockview R-2-S 0.55 10 6.5 No
215 Bridge M 2.82 8 67.5 No
Source: City of San Luis Obispo, Community Development Department, 2019
The results of the Residential Capacity Survey indicated that small properties under one acre size
throughout the city had a total capacity of 403458 dwelling units. The survey identifies a total of
123142 properties under one acre, with an average development potential of 3.27 units per site. Of
these 123142 properties, 6165 are vacant, accounting for 113118 of the 403458 potential “small
site” dwelling units. The remaining 290340 units would be located on 6277 underutilized and/or
blighted properties. 11 Pipeline project sites are under one acre (a combined total of 5 acres) and
propose to accommodate 259 units.
City of San Luis Obispo Draft Housing Element, October 2020
D17
Table D - 8: Recent Residential Developments on Small Sites
Address Zone Lot Size
(Acres)
Max.
number
of density
units**
Total
number of
dwelling
units
Percentage
dwelling
units based
on density
Market
&
Moderate
Very Low
& Low
Percent of
Project
Low &
Very Low
Commercial
S.F.
Condition of the site
at project submittal
3510
Broad* C-S 1.00 24.0 6 25% 6 0 0%
Existing commercial building
in use. Project includes an
addition to the commercial for
residential units.
2690
Victoria* C-R-SF 0.39 14.0 33 235% 0 33 100% 1,400
Existing single-family house.
Project includes the removal of
the existing residential
structure.
830 Orcutt* C-S 0.56 13.4 15 112% 15 0 0% 1,714
Existing single-family house.
Project includes the removal of
the existing residential
structure.
956
Monterey* C-D-H 0.15 5.4 20 370% 20 0 0% 4,000
Existing, vacant, 1 story
commercial building
downtown. Project includes
modification to the existing
structure.
207
Higuera*
C-S-
MU 0.23 5.5 16 290% 14 2 12.5% 390
Existing commercial building.
Project includes removing the
commercial structure for the
new structure.
1144
Chorro C-D-H 0.38 13.7 50 365% 50 0 0% 30,000
1 story, vacant commercial
building with mezzanine and
basement.
1137 Peach R-2 0.86 10.3 10 97% 5 0 0%
Site has 5 contributing historic,
single family detached units.
Project includes adding 5 more
single family detached units to
the site.
City of San Luis Obispo Draft Housing Element, October 2020
D18
Address Zone Lot Size
(Acres)
Max.
number
of density
units**
Total
number of
dwelling
units
Percentage
dwelling
units based
on density
Market
&
Moderate
Very Low
& Low
Percent of
Project
Low &
Very Low
Commercial
S.F.
Condition of the site
at project submittal
1030 Orcutt C-S 0.49 11.8 15 128% 14 1 6.6%
Existing self-wash car wash
and commercial space. Project
includes removal of all
structures except one.
545
Higuera /
486 Marsh
C-D 0.76 27.4 56 205% 56 0 0% 5,209
Existing office buildings.
Project includes removal of the
existing structures.
564
Higuera C-D 0.50 18.0 36 200% 33 3 8.3% 68 Surface parking lot.
1034 Mill O 0.26 3.1 5 160% 5 0 0%
1 existing single-family house
(used as a commercial office
space). Project includes
removal of existing structure.
3049 &
3099 Broad C-R-SF 0.55 19.8 10 51% 10 0 0% 6,000
1 site vacant, one site with
single family detached unit.
Project includes removal of the
existing structure.
3214
Rockview R-2-S 0.55 6.6 14 212% 9 1 7% 4 existing residential units.
Project adding 10 more units to
the site.
797 Caudill C-R-SF 0.26 9.4 8 85% 8 0 0% Vacant
774 Caudill
C-R-SF
& C-S-
SF
0.51 18.4 33 180% 30 3 9% 3,150
2 single family units and a
small commercial structure.
Project includes removal of
existing structures on site.
1121
Montalban C-T 0.34 4.1 15 368% 12 3 20% 430 Single family detached unit.
435 Marsh C-R 0.31 11.2 8 72% 8 0 0% 1,100
3 commercial buildings (car
repair shop) (one was an old
single-family house
converted). Project included
removal of existing structures.
City of San Luis Obispo Draft Housing Element, October 2020
D19
Address Zone Lot Size
(Acres)
Max.
number
of density
units**
Total
number of
dwelling
units
Percentage
dwelling
units based
on density
Market
&
Moderate
Very Low
& Low
Percent of
Project
Low &
Very Low
Commercial
S.F.
Condition of the site
at project submittal
22 Chorro C-C-SF 0.47 16.9 27 160% 23 4 14.8% 1,600 Vacant.
San Luis
Square C-D 0.98 35.3 52 147% 47 5 9.6% 14,000
1 single-family residence
converted to an office, 3
commercial structures, and
surface parking lots. Project
includes removal of all the
structures on site. Adjacent to a
Master List historic structure.
Source: City of San Luis Obispo, Community Development Department, 2019
**Maximum density based on density units (see density calculation discussion in Section 3 for more details).
City of San Luis Obispo Draft Housing Element, October 2020
D20
Small Site Development Examples
Below are examples of potential small site residential developments, typical of many small sites
in San Luis Obispo. These include underdeveloped or blighted properties that can accommodate
at least one additional dwelling unit, and underdeveloped or blighted properties that can
accommodate new or additional higher density development of 20 or more dwelling units per acre.
1) Sites that can accommodate one additional dwelling unit are typical of 2062 Price Street, a
7,500 square foot site zoned R-2 and developed with a small two-bedroom home located at the
rear of the site (Figure D-1).
2) Another example is located at 577 Branch St, an 8,280 square-foot, R-2-zoned property
developed with a small home located on the front side of the property (Figure D-2).
Properties such as these that are identified in the capacity survey can accommodate one or more
additional dwelling units during the 6th Cycle RHNA period. Continuing high property values and
high rents, due in part to the high housing demand from Cuesta College and Cal Poly students,
makes continued infill development likely. In addition, these sites are also good candidates for an
ADU, which may be more feasible for the property owner in both time and expense. There are
many examples of similarly underdeveloped properties that were redeveloped with additional units
during the 5th Cycle RHNA planning period. These types of properties are expected to be some of
the first to redevelop because of low infrastructure costs and the ease of permitting small housing
developments within the City.
Figure D - 1: Small Sites Example, 2062 Price Street
City of San Luis Obispo Draft Housing Element, October 2020
D21
Underdeveloped or Blighted Site Opportunities Examples
Another category of key sites evaluated in the capacity survey is underdeveloped or blighted
properties that can accommodate new or additional high density development of over 20 dwelling
units per acre. Representative sites are evaluated below, with one site highlighted to show a recent
development on a small site.
1) 3085 McMillan Avenue (Figure D-3) is a 40,000 square-foot site, zoned M (Manufacturing)
that is developed with surface parking. The site is adjacent to service-commercial land uses and
suitable for mixed use development with medium-high density housing and the City strongly
encourages mixed use development in this area, as evidenced by planning entitlements and
development projects in the vicinity. The site is part of the South Broad Street Area Plan (approved
in 2014) that encourages higher-density, mixed-use infill development and redevelopment.
Figure D - 2: Small Sites Example, 577 Branch Street
City of San Luis Obispo Draft Housing Element, October 2020
D22
2) 3460 Broad Street is a 98,550 square-foot site (2.26 acre), zoned M, that is partially developed
with four commercial structures on only half the lot. With 49,275 square feet (1.13 acre) (half of
the property not currently being used) and no residential development yet on the site, the capacity
survey estimates that 27 additional units could be developed on the project site as part of a mixed-
use development (current zoning would allow for 54 density units for the entire parcel).
Figure D - 4: Small Sites Example, 3085 McMillan Avenue
Figure D - 3: Small Sites Example, 3460 Broad Street
City of San Luis Obispo Draft Housing Element, October 2020
D23
3) Another example of an underdeveloped or blighted property that can accommodate new or
additional high-density development is 1166 Higuera Street (Figure D-5). The property is zoned
Commercial-Retail, C-R, over 25,000 square feet in size, and has a density of 36 units per acre
(which could allow between 20 to 40 residential units). Mixed-use development is allowed by right
in the C-R zone, and the only entitlement necessary to develop this property with residential units
is architectural review of the proposed site and building designs. Additionally, the site is located
within the Upper Monterey Area that the 2014 Land Use Element update identified as an area of
redevelopment (Policy 8.2.2).
5. Existing and Proposed Incentives to Facilitate Housing Development
The City uses a combination of regulatory and financial incentives to facilitate housing
development. As described in Appendix C, dwellings are allowed in 14 of the City’s 16 zones,
and Zoning Regulations include density bonuses and relaxed parking requirements for affordable
housing development. Dwellings destroyed by fire, flood, or other catastrophic events may be
rebuilt at the same density and up to the same size, provided that new construction meets current
building and zoning code requirements. Dwellings can be built on any existing, legal non-
conforming lot, regardless of density requirements, provided they meet building setback, height,
and other property development standards. In the Downtown Commercial zone, the City allows
up to 36 density units per acre (equivalent to 36 two-bedroom dwellings and 72 studio or one-
bedroom units (600 square feet or less) on one acre), 100 percent lot coverage, reduced parking, a
baseline height allowance of 50 feet, a baseline floor area ratio of 3.0. As an incentive for mixed-
use housing development, Downtown buildings may extend up to 75 feet in height with approval
of a use permit, provided that 15% of the building’s new dwelling are affordable to low and
moderate income households, and that it meets other community objectives including pedestrian
amenities, view access, economic benefits, historic preservation, and energy efficiency.
Figure D - 5: Small Sites Example, 1166 Higuera Street
City of San Luis Obispo Draft Housing Element, October 2020
D24
As listed in Appendix C, Table C-4; the City offers a range of incentives and exceptions to
developers of affordable housing. One example is a density bonus. When a developer agrees to
construct housing for deed restricted affordable units for very-low, low or moderate income
households, or qualifying senior households, the City offers a range of “by right” incentives and
alternative or additional incentives. For housing developments of five or more units, if at least 10
percent of the proposed units are dedicated for low income affordable housing, or 5 percent
dedicated to very low income, the developer shall be entitled to receive a density bonus starting at
20 percent and increasing for every additional affordable unit, with a maximum density bonus of
35 percent (a developer may request higher than a 35% density bonus with Planning Commission
approval). Per Program 6.20, density bonus provisions will be remain consistent with State law.
In addition, the City defers the payment of planning, engineering, building application, and permit
fees, as well as the payment of development impact fees for 100% affordable housing projects and
for those that exceed the inclusionary housing requirement or inclusionary housing “in-lieu” fees
until issuance of certificate of occupancy rather than at construction permit issuance, thereby
allowing “soft” development costs to be paid for through proceeds from unit sales or rent. As part
of the Inclusionary Housing requirement, developers may choose to pay a fee in-lieu of building
affordable units into their projects. This is a preferred option for most commercial projects. In-lieu
fees are then used to help fund land acquisition and construction of affordable housing in the City.
The 6th Cycle Housing Element continues to support housing incentives that encourage housing
development, including:
• Program 3.10 calls for the City to partner with faith-based organizations, non-profits, or
the City’s Housing Authority to expand rental housing for extremely-low, very-low, low
and moderate income households.
• Program 6.20 calls for continued updates to density bonus incentives consistent with State Law.
• Program 6.21 would consider possible changes to Subdivision Regulations to facilitate
small lot residential subdivisions, ownership bungalow court developments and other
alternatives to conventional residential subdivision design.
• Program 2.17 provides a plan to incentivize the development of affordable development
by eliminating discretionary review for projects located on properties identified in the
Housing Element (Table E-2) that include at least 20 percent of the residential units as
affordable to lower income households.
• Program 2.18 is similar to Program 2.17 but would apply the non-discretionary review
process to other properties in the City (and not just limited to Table E-2).
City of San Luis Obispo Draft Housing Element, October 2020
D25
6. Conclusion
Based on the analysis of City land resources with residential development potential and issued
permits, there is sufficient zoned land that is suitable and available to meet the City’s RHNA need
of 3,354 dwellings for this element’s planning period. As allowed by State law, the City’s 6th cycle
RHNA has been adjusted based on dwelling units that have been issued a building permit between
January 1, 2019 and December 31, 2019. Table D-5 above, shows that 537 dwelling units received
building permits, 729 dwelling units have received entitlements, and 270 ADUs are projected to
be developed in the City within the planning period, reducing the total RHNA to 1,818 units.
Table D-8 consolidates the potential number of units that the City can accommodate through
vacant, underutilized, and blighted properties, including “Pipeline” projects. entitled projects,
pipeline projects, specific plan areas, and vacant, underutilized, and blighted properties within the
City. Appendix E provides a comprehensive inventory of land available within the City to
accommodate 4,1403,155 dwelling units.
Table D - 8: Residential Capacity of San Luis Obispo
Acres No. of Units
Estimated Residential Capacity
(including “Pipeline” Projects)
“Pipeline” Projects 72.87 995
Entitled Projects 107.51 729
Estimated Residential Capacity 198.5 1,200
Estimated Residential Capacity within
Specific Plan Areas 160.8 1,955
Total Residential Capacity 539.68 3,155
Remaining RHNA 2,817
Source: City of San Luis Obispo, Community Development Department, 2019
Table D - 9: Residential Capacity of San Luis Obispo
Income Level
(% of County
Median Income)
6th
Cycle
RHNA
Remaining
RHNA
(Table D-5)
Residential
Capacity
(Table E-2)
Specific Plan
Capacity
(Table E-3)
Total
Residential
Capacity
Remaining
RHNA
Ext. Low & Very Low 825 778 497 803 1,300 0 Low 520 336
Moderate 603 576 403 400 803 0
Above Moderate 1,406 128 920 1,117 2,037 0
TOTAL UNITS 3,354 1,818 1,820 2,320 4,140 0
Source: City of San Luis Obispo, Community Development Department, 2019
City of San Luis Obispo Draft Housing Element, October 2020
D26
The inventory of vacant, underutilized, and blighted properties showed a capacity of 1,820 units,
which includes 846 “Pipeline” projects. The inventory of vacant, underutilized, and blighted
properties within Specific Plan areas showed a capacity of 2,320 units, which includes 444
“Pipeline” projects. The City’s total residential capacity is 4,140, which is well over the remaining
RHNA of 1,818 calculated in Table D-5, as well as over the City’s initial RHNA of 3,354 units.
In particular, the inventories show capacity for 1,300 low and very low incomelow-income units,
which satisfies and exceeds the remaining RHNA need of 1,114 units. With the adjusted RHNA
total, the City has met its RHNA housing need.
With this Housing Element, the City continues to support policies and programs that promote the
production of all housing types, for a wide variety of individuals, groups, and families. The City
seeks to encourage and implement housing objectives that support the construction of affordable
housing, especially for lower income households.
City of San Luis Obispo Draft Housing Element, October 2020
E1
Appendix E
Residential Capacity Inventory
______________________________________________________________________________
1. Purpose
This survey lists properties within the City Limits and properties located within the Urban
Reserve Line with additional housing development potential. The purpose of the survey is to
document the City’s residential land capacity to meet its Regional Housing Needs Allocation
(RHNA). The RHNA is the number of h ousing units that California cities and counties must
accommodate in their housing elements and is specific to each jurisdiction. Properties were
determined to have capacity for additional housing development if they were vacant,
underutilized, or blighted and had zoning to support residential development. By documenting
residential development potential, the Planning Commission and City Council can assess the
City’s housing stock and make informed decisions about housing needs for the 6th Cycle General
Plan Housing Element update.
2. Definitions
For the purposes of this survey, the following definitions were used:
1. “Vacant” refers to a property with no structures other than signs, walls, or fences.
2. “Underutilized” means a property with only minor accessory buildings, such as garages
or sheds, or if developed, where less than 40 percent of the lot was covered with buildings
(excluding properties in the Downtown Core, C -D Zone).
3. “Blighted” properties are identified by one or more of the following co nditions:
a. damaged, sagging, or failed roof, walls, foundation, stairs or porch;
b. broken, missing, or extremely weathered siding (stucco, wood, asbestos tile);
c. broken, boarded, or missing windows, torn window screens;
d. badly damaged or missing doors;
e. exterior; outdated plumbing.
4. “Property,” “lot,” “site,” and “parcel” are used interchangeably and refer to one or more
adjacent lots of record under common ownership.
5. “Urban Reserve Line” or URL refers to the area which encompasses urban land and can
be inside or outside of the City Limits.
6. “In-City properties” include only those properties located within the City Limits.
7. “Outside-City properties” are outside of City limits, but within the Urban Reserve Line.
City of San Luis Obispo Draft Housing Element, October 2020
E2
3. Survey Methodology
As part of the data collection and analysis phase of the Housing Element update, Community
Development staff worked over a period of several months to document the condition of the
housing stock and identify sites with residential development or redevelopm ent potential.
This involved three steps:
1. Establish survey areas
2. Identify and document vacant, underutilized, or blighted properties
3. Determine potential for additional residential development
The City has been divided into 28 survey areas (See Figure E-1), including land outside of the
City limits but within the Urban Reserve Line (URL). Survey area boundaries generally follow
major circulation routes, natural barriers, and neighborhood boundaries.
Figure E - 1: Residential Capacity Survey Subareas
City of San Luis Obispo Draft Housing Element, October 2020
E3
City staff conducted “windshield survey s” in which staff dr ove to specific areas and sites,
reviewed recent aerial maps and recently approved building permits to determine if a property
was vacant, underutilized, or blighted. After completing the review of each survey area, staff
documented the correct address , County Assessor’s Parcel number (APN), General Plan and
zoning designation, and total square footage of each property u sing the City’s permitting
software. Once each area was surveyed and documented, staff summarized the number of vacant,
underutilized, or blighted properties and their acreages for each area and then for the entire City.
Staff added properties that had bee n annexed or were found to have changed status since the last
Housing Element .
a) Development Constraints
Under State law, the site inventory analysis must include an estimate of the number of housing
units that can be accommodated on each site identified in the land inventory within the planning
period. The element must describe the methodology used to estimate the realistic capacity. The
element should not estimate unit capacity based on the theoretical maximum build -out allowed
by the zoning. Development capacity estimates must consider:
1. Applicable land-use controls and site improvement requirements. The analysis must
consider the potential impact or burden of the City’s development standards on the
residential capacity of the inventory sites. When establishing realistic unit capacity
calculations, the jurisdiction must consider existing development trends as well as the
cumulative impact of standards such as maximum lot coverage, height, open space,
parking, and FARs;
2. Existing Uses: The inventory must consider the impact of existing development when
calculating realistic development capacity. For example, to demonstrate the unit capacity
of underutilized sites, the analysis should describe and explain the factors that make
developing additional residential units feasible (within the planning period). Consider the
following example: A one-acre parcel zoned for 20 dwelling units per acre and developed
with a single-family home. The element must de monstrate the local government has a
track record of facilitating and supporting the intensification of sites, and describe the
incentives the local government would offer (through a specific program) to attract and
assist developers; and
3. Small Sites (less than one acre): The element should include an analysis of the number
of units projected for small sites. The analysis should consider development trends on
small sites as well as policies or incentives to facilitate such development. For example,
many local governments provide incentives for lot consolidation. In addition, while it
may be possible to build housing on small lot s, the development standards needed to
construct the units often render the provision of affordable housing infeasible. To utilize
small sites to accommodate the jurisdictions share of the regional housing need for lower -
income households, the element must consider the impact of constraints associated with
small lot development on the ability of a developer to produce affordable housing.
City of San Luis Obispo Draft Housing Element, October 2020
E4
In the process of creating the inventory, staff checked the status propert ies for development
changes. Vacant or underutilized properties that had been developed to their full potential were
removed from the survey and vacant properties that we re partially developed were then
considered underutilized. For blighted properties, the condition of the structure was re -evaluated.
If the property was rebuilt or repaired to a point that it no longer met the definition of blight, the
property was removed from the survey.
Properties were also added to the survey in one of four different ways:
1. If the property was not included in the previous Housing Element;
2. If the property had been annexed since the previous planning period ;
3. If the property had become vacant or underutilized due to the demolition of buildings;
4. If a property had become sufficiently deteriorated to meet the definition of blight .
b) Previously Identified Nonvacant and Vacant Sites
Government Code §65583.2 (c) states in part:
“The inventory shall specify for each site the number of units that can realistically be
accommodated on that site and whether the site is adequate to accommodate lower income
housing, moderate-income housing, or above moderate -income housing. A nonvacant site
identified pursuant to paragraph (3) or (4) of subdivision (a) in a prior housing element and a
vacant site that has been included in two or more consecutive planning periods that was not
approved to develop a portion of the locality’s housing need sha ll not be deemed adequate to
accommodate a portion of the housing need for lower income households that must be
accommodated in the current housing element planning period unless the site is zoned at
residential densities consistent with paragraph (3) of t his subdivision and the site is subject
to a program in the housing element requiring rezoning within three years of the beginning of
the planning period to allow residential use by right for housing developments in which at least
20 percent of the units a re affordable to lower income households .”
“(3) For the number of units calculated to accommodate its share of the regional housing need for lower
income households pursuant to paragraph (2), a city or county shall do either of the following:
(A) Provide an analysis demonstrating how the adopted densities accommodate this need. The
analysis shall include, but is not limited to, factors such as market demand, financial feasibility,
or information based on development project experience within a zone or zones that provide
housing for lower income households.
(B) The following densities shall be deemed appropriate to accommodate housing for lower
income households:
(i) For an incorporated city within a nonmetropolitan county and for a nonmetropolitan
county that has a micropolitan area: sites allowing at least 15 units per acre.
(ii) For an unincorporated area in a nonmetropolitan county not included in clause (i):
sites allowing at least 10 units per acre.
(iii) For a suburban jurisdiction: sites allow ing at least 20 units per acre.
(iv) For a jurisdiction in a metropolitan county: sites allowing at least 30 units per acre.”
City of San Luis Obispo Draft Housing Element, October 2020
E5
The site inventory includes sites that were previously identified in a prior Housing Element and
vacant sites that were identified in two or more con secutive planning periods . Those sites that
have not been in the Housing Element previously are indicated within the inventory tables below
with two asterisk symbols (**) next to the assessor’s parcel number of the property. Sites that
are zoned R-3, R-4, C-C, C-D, C-R, C-S, and M (see Table C-1 in Appendix C) allow densities
of 20 or more units per acre and according to the Government Code are adequate for lower-
income households. Additional discussion on how the City calculates density, please see
Appendix D, Section 3. Lower-income units are identified on sites that are zoned with the
appropriate density (20 units per acre or more ) and with the implementation of Program 5.5 each
zone will allow residential development without a use permit.
cb) Development Capacity Calculation
After reviewing the survey sheets for each property, the potential for development on each
property was calculated by applying the following rules.
Development Potential was calculated by the following methodology :
1. Determining the maximum allowed density in units per acre according to average slope
and land use zone designation (See Table E-1).
2. Determining the maximum number of density units allowed on the property by
multiplying the developable lot in acres (excluding creek setbacks, street right -of-ways
or plan-lines, and designated open space areas, or areas outside of the Urban Reserve
Line) by the maximum allowed density units per acre. Recent housing projects within
the City indicate that a higher percentage of properties that allow residential
development build to the maximum density or more with a density bonus . However, not
every site builds to the maximum density and w ith this knowledge, the City has applied
a conservative estimate of 75 percent of the maximum residential capacity, to all
properties within the survey (max allowed density x .75 = surveyed capacity)
3. Vacant property potential was calculated by applying the “75 percent rule .”
4. If the property was considered both underutilized and blighted, it was assumed that the
property would be redeveloped, in its entirety, and would then follow the vacant property
“75 percent rule.”
5. If a property was underutilized, but not blighted, the percentage of the property that was
developed was subtracted from the developable lot area and the remainder (anything not
developed) was multiplied by 75 percent. For example, a 20,000 square foot pro perty,
with a building footprint of 5,000 square feet, has a total of 15,000 square feet that can
be developed. The remaining 15,000 square feet would then be multiplied by the
maximum density and by 75 percent ((total area -developed area) x (max density x .75)).
6. Those properties located within the Airport Area Land Use Plan (ALUP) or the Airport
Overlay Zone (AOZ) were calculated using the “75 percent rule” and the more restrictive
base density allowed for sites within these areas (see Appendix C, Section d).
City of San Luis Obispo Draft Housing Element, October 2020
E6
6.7. “Pipeline” projects are indicated in italicized font within the inventory tables
below with an asterisk (*) next to the assessor’s parcel number of the property. These
sites have a planning application in process and capacity for the site has been determined
by the project description.
7.8. Blighted properties were considered to have development potential and likely to
be redeveloped to their existing capacity if the buildings had structural issues (damaged,
sagging, or failed roof, wall, foundation, or porch degradation). In these cases, the
properties were not assigned additional development capacity, but were flagged as
properties with the potential for redevelopment or rehabilitation.
8.9. Vacant properties with the potential for mixed -use (commercial/residential)
development were calculated following the sa me residential capacity method, as the City
allows mixed use properties to meet both the residential and commercial maximum
capacities determined by lot size.
9.10. Where site features, such as lot orientation, natural features or the presence of
historic buil dings, warranted a further reduction from the maximum residential capacity,
an adjustment factor was applied on a case -by-case basis.
Table E - 1: Maximum Density by Zone and Slope
Average Cross
Slope in %
Maximum Density Allowed (density units per acre)
R-1 R-2, O,
C-N, C-T R-3 R-4 C-R, C-D,
C-C C-S, M
0 - 15 7 12 20 24 36 24
16 - 20 4 6 9 12 36 24
21 - 25 2 4 6 8 36 24
26 + 1 2 3 4 36 24
Source: City of San Luis Obispo Zoning Code, 2019
db) Survey Assumptions
The following assumptions were made to determine development capacities for each property:
1. Downtown (C-D zone) properties had development potential if they had:
a. Less than 100 percent building lot coverage;
b. An approved or proposed development plan;
c. Had not undergone seismic retrofit or significantly modified in the last 5 years.
2. If a property had a proposed development plan (planning approval or building permit),
development capacity was assumed to equal the number of approved dwelling units, less
the number of existing units.
3. For single properties with multiple zoning designations, the development potential was
calculated for the area of the property in each zone and then added together.
City of San Luis Obispo Draft Housing Element, October 2020
E7
4. Housing capacity for propert ies within specific plan areas utilized the numbers outlined
in the specific plan document s to calculate housing capacity. The specific plan areas
within the City are the Orcutt Area, Margarita Area, San Luis Ranch, Froom Ranch, and
Avila Ranch Development Plan .
5. Accessory dwelling units (ADUs) are not included because there are too many available
sites within the City that can accommodate an ADU. Appendix D , Section (e) provides
a detailed discussion on the anticipated number of ADU units the City expects to be built
during the planning period and the impact on RHNA (see Table D -5).
6. Property development capacity is based on existing zoning, except in limited cases
where rezoning is anticipated based on a pending application or Planning Commission
or City Council action.
7. Properties with restrictions that prohibit further subdivision and density were not
included in the inventory.
ec) Survey Organization
Once the development potential for each property was calculated, the information was organized
in three different ways: by survey area, zoning designation, and development status (vacant,
underutilized, blighted). The final survey results are split into tw o separate tables, with Table E-
2 showing all City properties not within a specific plan or planning area and Table E-2 showing
properties within a specific plan or planning area. These survey results provide City staff with
valuable information regarding which types of properties are best suited for future growth.
4. Summary of Residential Capacity
The results of the inventory update indicate that the City has approximately 176 acres of vacant,
underutilized, or blighted properties throughout the City that can accommodate 1,840 dwelling
units, which also includes “pipeline” projects mentioned in Appendix D. The City also has vacant
and underutilized land located within the Margarita Area Specific Plan, the Orcutt Area Specific
Plan, the San Luis Ranch Specific Plan, the Avila Ranch Planning Area , and the Froom Ranch
Specific Plan . There is approximately 213 acres of vacant and underutilized land in these specific
plan areas, which can accommodate approximately 2,400 dwelling units. Combining the specific
plan capacity with the residential capacity of other vacant and underutilized properties
throughout the City, the inventory indicates a total residential capacity of 4,240 dwelling units.
a) Development Capacity by Area
Organizing the inventory by survey area gives staff, the Planning Commission, and City Council
a better geographic idea of where to expect or plan for residential growth over the next eight
years. Figure E-2 shows the realistic number of dwelling units that could be accommodated
within the planning period by survey area on vacant, underutilized, and blighted properties. This
survey has determined that the City has the potential to accommodate 4,140 additional dwelling
City of San Luis Obispo Draft Housing Element, October 2020
E8
units within the City based on existing available land and the current condition of any existing
structures on the site. Areas which account for the majority of the City’s housing capacity are
Areas 18, 20, 21, 23, and 26, which consist of the following specific plans: the Margarita Area
Specific Plan , the San Luis Ranch Specific Plan, the Orcutt Area Specific Plan, the Avila Ranch
Planning Area , and the Froom Ranch Specific Plan .
b) Development Capacity by Zoning Designation
Organizing the City’s development capacity by zoning designation rather than subarea gives a
better idea of what types of density and housing the City can accommodate. Only properties within
city limits have zoning designations and are included in Figure E-3 below. While zones R-1, R-2,
R-3, and R-4 zones are specifically intended for residential use, the City’s commercial, office,
public facility, and manufacturing zones also allow residential development as part of mixed use
development or freestanding use when compatible with onsite and surrounding uses.
The zones with the most potential for accommodating additional residential units located outside
of specific plan areas include mixed-use development potential in the service commercial (C-S),
retail commercial (C-R), and downtown commercial (C-D) zones, as well as residential
development potential in low density residential (R-1) and medium density residential (R-2) zones.
The residential capacities of the C-R and C-D zones in the City are 283 units and 208 units
respectively, while the residential capacities of the R-1 and R-2 zones are 157 units and 101 units
respectively. Figure E-3 shows residential development potential by zone. For the purpose of this
survey, properties with overlay zoning districts, such as R-2-H (Medium Density Residential with
Historic District Overlay), were not separated from the primary zoning designation.
Source: City of San Luis Obispo Community Development Department 2020
*Specific Plan Areas (18 - Margarita, 20 - San Luis Ranch, 21 - Orcutt, 23 - Avila Ranch, 26 – Froom Ranch)
Figure E - 2: Residential Capacity by Survey Subarea
City of San Luis Obispo Draft Housing Element, October 2020
E9
c) Development Capacity by Development Status
Properties were sorted by development status into three groups: vacant, underutilized, and
blighted. This was to allow an examination of the condition of housing and to identify sites with
infill development and redevelopment opportunities. In some cases, a property was categorized as
underutilized and blighted, when it met the characteristics of both definitions.
5. Residential Capacity Tables
Tables E-2 and E-3 summarize the number of potential density units for each subarea and the total
acreage available for future development. Table E-2 summarizes the City’s residential capacity for
vacant and underutilized parcels throughout the City and Table E-3 summarizes the residential
capacity of vacant and underutilized parcels within the City’s specific plan areas. Within these
tables, “Pipeline” projects are shown in italics. All parcels listed in Tables E-2 and E-3 are
available for development within this Housing Element’s planning period, and except for parcels
within Specific Plan areas and minor annexation areas, are served by streets, utilities , and public
services including police, fire, emergency medical serv ices and public schools.
Figure E - 3: Residential Capacity by Zone
Source: City of San Luis Obispo Community Development Department 2020
City of San Luis Obispo Draft Housing Element, October 2020
E10
Table E - 2: Residential Capacity by Parcel and Survey Subarea Subarea Zone General Plan
Land Use
Assessor’s
Parcel Number
*Pipeline project
**New site for
inventory Vacant Under-Utilized Blighted Avg.
Slope
Square Feet Acres Density
units
per
acre
Max.
Res.
Capacity
, density
units
Constraints to Development /
Existing Conditions
Realistic
# of
Dwelling
Units
Income
Category
1 R-1 Low Density
Residential
052-433-015** X < 15% 15,900 0.365 7 2.54 Vacant site 1 Above Moderate
1 R-1 Low Density
Residential
052-496-001 X < 15% 222,900 5.117 7 35.82 1 SFR and ranch, needs curb,
gutter, sidewalk, and driveway
10 Moderate
10 Above Moderate
1 R-1-PD Low Density
Residential
052-520-063 X < 15% 61,250 1.406 7 9.80 Vacant developable flag lot,
driveway access, requires
creek setbacks for new
development
1 Moderate
1 R-1-PD Low Density
Residential
052-521-013 X > 26% 44,300 1.017 1 1.02 Vacant developable lot
1 Moderate
Subtotal – Subarea 1 344,350 7.905 49.18 23
2 R-1 Low Density
Residential
052-022-025 X X < 15% 17,470 0.401 7 2.80 SFR on large lot 1 Above Moderate
2 R-1-PD Low Density
Residential
052-311-020 X 16-
20%
16,510 0.379 4 1.50 Vacant developable lot 1 Above Moderate
2 R-1-PD Low Density
Residential
052-312-004 X < 15% 29,710 0.682 7 4.76 Vacant developable lot 1 Moderate
2 R-1-PD Low Density
Residential
052-312-005 X 16-
20%
21,210 0.487 4 1.95 Vacant developable lot on
sensitive site
1 Above Moderate
2 R-1 Low Density
Residential
052-382-032 X < 15% 17,030 0.391 7 2.74 SFR on large lot 1 Above Moderate
Subtotal – Subarea 2 101,930 2.340 13.75 5
City of San Luis Obispo Draft Housing Element, October 2020
E11 Subarea Zone General Plan
Land Use
Assessor’s
Parcel Number
*Pipeline project
**New site for
inventory Vacant Under-Utilized Blighted Avg.
Slope
Square Feet Acres Density
units
per
acre
Max.
Res.
Capacity
, density
units
Constraints to Development /
Existing Conditions
Realistic
# of
Dwelling
Units
Income
Category
3 R-1 Low Density
Residential
001-012-026 X < 15% 49,610 1.139 7 7.97 SFR covering half of lot,
requires common driveway for
vacant portion of the lot,
requires subdivision for
additional development
4 Moderate
3 R-1 Low Density
Residential
001-016-008** X 16-
20%
193,280 4.437 4 17.75 5 Existing residential units,
sloped lot, subdivision
required for more development
10 Moderate
3 R-1 Low Density
Residential
052-061-005 X 16-
20%
33,930 0.779 4 3.12 SFR on half of lot, suitable for
more development, requires
subdivision, sloped lot
2 Moderate
3 R-1 Low Density
Residential
052-061-030** X < 15% 42,210 0.969 7 6.78 SFR on large lot, requires
creek setbacks for new
development and requires
subdivision for additional
development
3 Moderate
3 R-1 Low Density
Residential
052-061-035 X 16-
20%
18,030 0.414 4 1.66 Vacant developable lot, land-
locked
1 Above Moderate
3 R-1 Low Density
Residential
052-061-041 X < 15% 15,810 0.363 7 2.54 Vacant developable flag lot
and requires subdivision for
additional development
2 Above Moderate
3 R-1 Low Density
Residential
052-061-043** X 16-
20%
31,320 0.719 4 2.88 SFR on half of lot, suitable for
development, subdivision
required for new development
2 Moderate
3 R-1 Low Density
Residential
052-156-009 X X < 15% 34,930 0.802 7 5.62 3 Residential units on large
property
2 Moderate
3 R-1 Low Density
Residential
052-163-021 X < 15% 9,500 0.218 7 1.53 Vacant developable flag lot 1 Above Moderate
3 R-1-S,
C/OS-5
Low Density
Residential,
Open Space
052-341-002 X 21-
25%
121,970 2.800 2 5.60 Steep, vacant, hillside lot with
114,000 sf for development,
requires a subdivision
4 Moderate
Subtotal – Subarea 3 550,600 12.640 55.45 31
City of San Luis Obispo Draft Housing Element, October 2020
E12 Subarea Zone General Plan
Land Use
Assessor’s
Parcel Number
*Pipeline project
**New site for
inventory Vacant Under-Utilized Blighted Avg.
Slope
Square Feet Acres Density
units
per
acre
Max.
Res.
Capacity
, density
units
Constraints to Development /
Existing Conditions
Realistic
# of
Dwelling
Units
Income
Category
4 R-1 Low Density
Residential
001-014-024 X < 15% 8,320 0.191 7 1.34 Vacant developable lot 1 Above Moderate
4 R-1 Low Density
Residential
001-014-062 X < 15% 9,410 0.216 7 1.50 Vacant developable lot 1 Above Moderate
4 R-1 Low Density
Residential
001-021-012 X < 15% 6,360 0.146 7 1.00 Vacant developable lot 1 Above Moderate
4 R-1 Low Density
Residential
001-091-042 ** X 16-
20%
20,170 0.463 4 1.85 Vacant developable lot 1 Above Moderate
4 C-T Tourist
Commercial
001-111-013 X < 15% 12,070 0.277 12 3.32 SFR on half of lot. Suitable for
more development; creek
setback required.
2 Above Moderate
4 C-T Tourist
Commercial
001-112-006* X 22,450 0.515 12 6.18 Mixed use residential project
currently under review
4 Low & Very Low
11 Above Moderate
4 R-1-S Low Density
Residential
002-272-010 X 16-
20%
72,750 1.670 4 6.68 SFR on large lot with driveway
access for additional units,
subdivision required for
additional development
3 Moderate
4 R-1-S Low Density
Residential
002-272-018 X 16-
20%
34,110 0.783 4 3.13 Vacant developable lot
1 Moderate
4 R-1-S Low Density
Residential
002-272-026 X 16-
20%
46,700 1.072 4 4.30 Vacant developable lot
1 Moderate
4 O Office 052-175-012** X < 15% 97,010 2.227 12 26.72 Existing commercial structure
on half the lot. Other half
vacant and suitable for
redevelopment.
8 Moderate
Subtotal – Subarea 4 329,350 7.560 56.02 34
5 C-T Tourist
Commercial
001-206-014 X X < 15% 23,960 0.550 12 6.60 Existing deteriorated triplex,
suitable for redevelopment.
5 Moderate
5 O Office 052-192-001 X < 15% 24,870 0.571 12 6.85 SFR with space for additional
development.
4 Moderate
5 O Office 052-192-002 X < 15% 17,250 0.396 12 4.75 SFR on half the lot, other half
vacant. suitable for more dev.
2 Above Moderate
Subtotal – Subarea 5 66,080 1.517 18.20 11
City of San Luis Obispo Draft Housing Element, October 2020
E13 Subarea Zone General Plan
Land Use
Assessor’s
Parcel Number
*Pipeline project
**New site for
inventory Vacant Under-Utilized Blighted Avg.
Slope
Square Feet Acres Density
units
per
acre
Max.
Res.
Capacity
, density
units
Constraints to Development /
Existing Conditions
Realistic
# of
Dwelling
Units
Income
Category
6 R-1 Low Density
Residential
052-031-004 X < 15% 15,070 0.346 7 2.42 SFR on front of lot; deep lot
development possible
1 Above Moderate
6 R-1 Low Density
Residential
052-072-002 X < 15% 17,770 0.408 7 2.86 SFR on half of the lot, suitable
for additional development
1 Above Moderate
6 R-1 Low Density
Residential
052-072-003 X < 15% 17,250 0.396 7 2.77 SFR at front of lot; deep lot
development possible
1 Above Moderate
6 R-4 High Density
Residential
052-082-008 X < 15% 11,670 0.268 24 6.43 Existing SFR. Space for
additional development.
4 Moderate
6 R-4 High Density
Residential
052-082-036 X < 15% 10,720 0.246 24 5.90 Vacant developable lot,
adjacent to creek.
4 Moderate
6 R-1-S Low Density
Residential
052-136-019 X > 26% 26,140 0.600 1 0.60 Vacant developable lot 1 Moderate
6 R-1-S Low Density
Residential
052-136-035 X > 26% 14,810 0.340 1 0.34 Vacant developable lot 1 Above Moderate
6 R-1-S Low Density
Residential
052-136-052** X > 26% 19,170 0.440 1 0.44 Vacant developable lot 1 Above Moderate
6 R-1-S Low Density
Residential
052-136-053** X > 26% 17,420 0.400 1 0.40 Vacant developable lot 1 Above Moderate
6 R-1-S Low Density
Residential
052-136-054** X > 26% 15,250 0.350 1 0.35 Vacant developable lot 1 Above Moderate
6 R-1-S Low Density
Residential
052-271-007 X 16-
20%
100,620 2.310 4 9.24 Vacant developable lot on
sensitive site; near Hwy 101
noise concerns, subdivision
required for new development
7 Moderate
6 R-1-S Low Density
Residential
052-271-010 X > 26% 96,270 2.210 1 2.21 Vacant developable lot,
requires subdivision for more
dev.
2 Moderate
6 R-1 Low Density
Residential
052-322-012 X < 15% 8,970 0.206 7 1.44 Vacant developable lot 1 Above Moderate
Subtotal – Subarea 6 371,090 8.520 35.40 26
City of San Luis Obispo Draft Housing Element, October 2020
E14 Subarea Zone General Plan
Land Use
Assessor’s
Parcel Number
*Pipeline project
**New site for
inventory Vacant Under-Utilized Blighted Avg.
Slope
Square Feet Acres Density
units
per
acre
Max.
Res.
Capacity
, density
units
Constraints to Development /
Existing Conditions
Realistic
# of
Dwelling
Units
Income
Category
7 R-1-S Low Density
Residential
001-082-007 X > 26% 14,590 0.335 1 0.34 Vacant developable lot 1 Above Moderate
7 R-1-S Low Density
Residential
001-082-008 X 16-
20%
6,270 0.144 4 0.58 Vacant developable lot 1 Above Moderate
7 R-1-S Low Density
Residential
001-082-024 X > 26% 5,270 0.121 1 0.12 Vacant developable lot 1 Above Moderate
7 R-1-S Low Density
Residential
001-082-026 X 21-
25%
3,830 0.088 2 0.18 Vacant developable lot,
steep hillside lot
1 Above Moderate
7 R-1 Low Density
Residential
001-132-003 X < 15% 8,190 0.188 7 1.31 vacant developable lot 1 Above Moderate
7 R-2 Medium
Density
Residential
001-135-012 X < 15% 9,410 0.216 12 2.59 One SFR with room for
additional development.
1 Above Moderate
7 R-2 Medium
Density
Residential
001-136-001 X < 15% 7,450 0.171 12 2.05 Corner lot with R-2 portion
vacant and developable
1 Above Moderate
7 C-R-S General
Retail
001-137-013 X < 15% 9,280 0.213 36 7.67 Vacant developable lot. 6 Moderate
7 R-2 Medium
Density
Residential
001-137-015 X < 15% 14,030 0.322 12 3.86 Commercial development with
parking lot and vacant portion
suitable for development along
Palm Street frontage.
2 Above Moderate
7 R-2 Medium
Density
Residential
001-141-013 X < 15% 7,670 0.176 12 2.11 One SFR with room for more
development at back of lot.
1 Above Moderate
7 R-2 Medium
Density
Residential
001-141-014 X < 15% 7,670 0.176 12 2.11 One SFR with room for more
development at back of lot.
1 Above Moderate
7 R-1-S Low Density
Residential
001-270-002 X 21-
25%
22,300 0.512 2 1.02 Vacant developable lot on
sensitive site
1 Moderate
7 R-1-S Low Density
Residential
001-270-004 X 21-
25%
15,290 0.351 2 0.70 Vacant developable lot on
sensitive site
1 Above Moderate
Subtotal – Subarea 7 131,250 3.013 24.64 19
City of San Luis Obispo Draft Housing Element, October 2020
E15 Subarea Zone General Plan
Land Use
Assessor’s
Parcel Number
*Pipeline project
**New site for
inventory Vacant Under-Utilized Blighted Avg.
Slope
Square Feet Acres Density
units
per
acre
Max.
Res.
Capacity
, density
units
Constraints to Development /
Existing Conditions
Realistic
# of
Dwelling
Units
Income
Category
8 R-2 Medium
Density
Residential
001-214-001 X < 15% 10,750 0.247 12 2.96 One SFR on half of corner lot
with room for additional
development.
1 Above Moderate
8 R-2 Medium
Density
Residential
002-316-005* X < 15% 37,500 0.860 12 10.32 Infill project for 5 new SFR on
large lot with 5 existing SFR
currently under review
5 Above Moderate
8 R-2-H Medium
Density
Residential
002-316-016 X < 15% 13,330 0.306 12 3.67 Contributing historic property,
half vacant and developable.
2 Above Moderate
8 O Office 002-331-017 X < 15% 5,970 0.137 12 2.00 Surface parking lot suitable for
additional development.
1 Above Moderate
8 C-R General
Retail
002-436-005,
002-436-008
X < 15% 25,120 0.577 36 20.77 Large surface parking lot with
small commercial buildings.
Located in Upper Monterey
Special Focus Area that is
identified for high density
residential development.
15 Low & Very Low
8 C-R General
Retail
002-437-028 X < 15% 42,080 0.966 36 34.78 Commercial building &
parking lot
26 Low & Very Low
8 R-2 Medium
Density
Residential
002-455-002 X < 15% 10,980 0.252 12 3.02 One SFR with room for
additional development at back
of lot.
2 Above Moderate
Subtotal – Subarea 8 132,400 3.039 73.85 50
9 R-4 High Density
Residential
002-297-046 X < 15% 6,010 0.138 24 3.31 Vacant developable lot. 3 Moderate
9 O Office 002-313-013 X < 15% 7,620 0.175 12 2.10 One SFR on rear of lot, space
for more development in front.
1 Above Moderate
9 O Office 002-314-026** X < 15% 11,300 0.260 12 3.12 Three story residential project
currently under review
5 Above Moderate
9 C-D General
Retail
002-322-040** X < 15% 6,500 0.150 36 5.40 Mixed use residential project
currently under review
20 Above Moderate
City of San Luis Obispo Draft Housing Element, October 2020
E16 Subarea Zone General Plan
Land Use
Assessor’s
Parcel Number
*Pipeline project
**New site for
inventory Vacant Under-Utilized Blighted Avg.
Slope
Square Feet Acres Density
units
per
acre
Max.
Res.
Capacity
, density
units
Constraints to Development /
Existing Conditions
Realistic
# of
Dwelling
Units
Income
Category
9 R-2-S Medium
Density
Residential
002-392-011 X < 15% 31,190 0.716 12 8.60 Vacant developable lot 8 Moderate
9 R-1-S Low Density
Residential
002-392-028 X 16-
20% 9,630 0.221 4 0.88 Vacant developable lot 2 Above
Moderate
9 C-R General
Retail
002-402-029 X < 15% 23,170 0.532 36 19.15 SFR with duplex and parking
lot, structures over 50 years
old.
14 Low & Very Low
9 C-D General
Retail
002-402-034 X < 15% 17,770 0.408 36 14.69 Commercial building with two
parking lots.
7 Moderate
9 C-D General
Retail
002-402-048* X < 15% 21,800 0.500 36 18.00 Large residential project
downtown currently under
review
2 Low & Very Low
34 Above Moderate
9 C-D-H General
Retail
002-415-008 X < 15% 10,060 0.231 36 8.32 Historic structure and site
(Ah Louis Store). Subject to
Mills Act Preservation.
4 Moderate
9 C-D General
Retail
002-427-012** X < 15% 16,600 0.380 36 13.68 Large mixed-use residential
project downtown currently
under review
13 Moderate
37 Above Moderate
9 C-D-H General
Retail
002-432-009 X < 15% 8,760 0.201 36 7.24 Surface parking lot. Creek
setback requirements.
4 Moderate
9 C-D-H General
Retail
002-432-012 X < 15% 5,270 0.121 36 4.36 Surface parking lot behind 2
story office/retail structure.
3 Moderate
9 C-D General
Retail
002-435-023 X < 15% 12,600 0.289 36 10.40 Parking lot. Creek setback
required for new development.
7 Moderate
9 C-R General
Retail
002-511-022 X < 15% 9,280 0.213 36 7.67 Vacant lot. Creek setback
required for new development.
4 Moderate
9 C-R General
Retail
003-511-005 X < 15% 14,290 0.328 36 11.80 SFR with duplex and surface
parking lot.
3 Moderate
City of San Luis Obispo Draft Housing Element, October 2020
E17 Subarea Zone General Plan
Land Use
Assessor’s
Parcel Number
*Pipeline project
**New site for
inventory Vacant Under-Utilized Blighted Avg.
Slope
Square Feet Acres Density
units
per
acre
Max.
Res.
Capacity
, density
units
Constraints to Development /
Existing Conditions
Realistic
# of
Dwelling
Units
Income
Category
9 C-D General
Retail
003-511-009,
003-511-027
X < 15% 21,560 0.495 36 17.82 Adjacent commercial buildings
with small parking lot
12 Moderate
9 C-D General
Retail
003-511-033** < 15% 16,100 0.370 36 13.32 Large mixed-use residential
project currently under review
56 Above Moderate
Subtotal – Subarea 9 239,450 5.497 161.54 235
10 C-S Service &
Manufacturing 002-503-008 X < 15% 17,210 0.395 24 9.48 3 SFR on half the lot. Space
for additional development.
4 Moderate
10 C-S Service &
Manufacturing 002-503-014,
002-503-016**
X <15% 12,110 0.278 24 6.67 Surface parking lot on adjacent
parcels
5 Moderate
10 C-S Service &
Manufacturing
002-505-006 X < 15% 21,350 0.490 24 11.75 Master list historic structure
with large surface parking lot.
6 Moderate
10 C-D General
Retail
003-525-003,
003-525-012
X < 15% 21,040 0.483 36 17.39 Surface parking lot on adjacent
parcels
13 Moderate
10 O Office 003-525-005,
003-525-011
X < 15% 17,820 0.410 12 4.90 Commercial building with
surface parking lot,
developable
3 Above Moderate
10 O Office 003-528-022 X < 15% 12,500 0.287 12 3.44 Historic structure on half of
lot. suitable for more
development
2 Above Moderate
10 R-2-H Medium
Density
Residential
003-534-011 X < 15% 7,320 0.168 12 2.02 Vacant developable lot 2 Above Moderate
10 R-2-H Medium
Density
Residential
003-538-014 X < 15% 7,620 0.175 12 2.10 Contributing historic structure
on rear of property
1 Above Moderate
10 R-2-H Medium
Density
Residential
003-542-001 X < 15% 6,140 0.141 12 2.00 Contributing historic structure,
lot corner is developable
1 Above Moderate
10 R-3-H Medium High
Density
Residential
003-542-006 X < 15% 5,490 0.126 20 3.00 Contributing historic structure
on corner lot. Space for more
dev.
2 Moderate
City of San Luis Obispo Draft Housing Element, October 2020
E18 Subarea Zone General Plan
Land Use
Assessor’s
Parcel Number
*Pipeline project
**New site for
inventory Vacant Under-Utilized Blighted Avg.
Slope
Square Feet Acres Density
units
per
acre
Max.
Res.
Capacity
, density
units
Constraints to Development /
Existing Conditions
Realistic
# of
Dwelling
Units
Income
Category
10 R-3-H Medium High
Density
Residential
003-551-011 X < 15% 38,770 0.890 20 17.80 Large property with over half
of the property developed as a
non-conforming service use,
suitable for mixed-use Zoned
for Medium-high density
residential development and
appropriate for Low income
development. A Ccreek runs
under site and, has contributing
historic structures on site. See
Table D-7 in Appendix D for
other housing projects that
have added affordable housing
units to a site with historic
resources..3 SFR on creek site,
contributing historic structures
on site.
13 Low & Very Low
10 R-2 Medium
Density
Residential
003-625-015 X < 15% 36,420 0.836 12 10.03 Non-conforming commercial
use w/ outdoor storage,
developable
8 Moderate
10 C-S Service &
Manufacturing 003-748-016 X < 15% 14,810 0.340 24 8.16 Three commercial structures
with space for redevelopment.
5 Moderate
Subtotal – Subarea 10 165,500218,
600
3.8005
.018 76.4598.
75 5365
11 R-2 Medium
Density
Residential
003-722-011 X < 15% 13,630 0.313 12 3.76 SFR on property with rear lot
street access
2 Above Moderate
11 R-2 Medium
Density
Residential
003-724-013 X < 15% 4,530 0.105 12 2.00 Surface parking lot. 1 Above Moderate
11 R-2 Medium
Density
Residential
003-732-013 X < 15% 22,400 0.514 12 6.17 SFR on corner lot, suitable for
additional development
3 Moderate
11 R-2 Medium
Density
Residential
003-732-016 X < 15% 10,300 0.236 12 2.83 SFR on corner lot, suitable for
additional development
1 Above Moderate
11 R-2 Medium
Density
Residential
003-733-010 X < 15% 7,540 0.173 12 2.08 SFR at rear of lot, suitable for
additional development
1 Above Moderate
City of San Luis Obispo Draft Housing Element, October 2020
E19 Subarea Zone General Plan
Land Use
Assessor’s
Parcel Number
*Pipeline project
**New site for
inventory Vacant Under-Utilized Blighted Avg.
Slope
Square Feet Acres Density
units
per
acre
Max.
Res.
Capacity
, density
units
Constraints to Development /
Existing Conditions
Realistic
# of
Dwelling
Units
Income
Category
11 R-2 Medium
Density
Residential
003-735-001 X X < 15% 6,880 0.158 12 2.00 SFR on corner lot, suitable for
redevelopment
1 Above Moderate
11 R-2 Medium
Density
Residential
003-739-001 X < 15% 9,270 0.213 12 2.56 SFR on lot w 2 street
frontages, suitable for more
development
2 Above Moderate
11 R-2 Medium
Density
Residential
003-739-003,
003-739-027
X < 15% 13,720 0.315 12 3.78 Vacant developable lot 3 Above Moderate
11 R-2 Medium
Density
Residential
003-739-029 X < 15% 8,020 0.184 12 2.21 SFR on lot w 2 street
frontages, suitable for more
development
1 Above Moderate
11 R-2 Medium
Density
Residential
003-741-017 X < 15% 7,540 0.173 12 2.08 SFR at rear of lot, suitable for
additional development
1 Above Moderate
11 C-N Neighborhood
Commercial 003-743-001 X X < 15% 19,650 0.451 12 5.40 SFR and commercial structure
on property.
3 Above Moderate
11 R-2 Medium
Density
Residential
003-749-032 X < 15% 9,150 0.210 12 2.52 SFR on lot w 2 street
frontages, suitable for more
development
1 Above Moderate
11 C-T-S,
C/OS-
20
Tourist
Commercial,
Open Space
004-511-001 X < 15% 253,950 5.830 12 69.96 vacant/open space - Madonna
Event Space
20 Moderate
30 Above Moderate
11 C-R-
MU
General Retail 004-741-001 X < 15% 18,770 0.431 36 15.52 1 SFR & commercial
structures next to creek,
developable
12 Moderate
11 C-R-
MU
General Retail 004-741-008 X < 15% 17,700 0.406 36 14.62 5 units on site with creek,
suitable for more development.
4 Moderate
11 C-R-
MU
General
Retail
004-511-020 X < 15% 36,500 0.838 24 20.11 Caltrans site suitable for mixed
use development. Identified in
the Land Use Element as a
special focus area for
redevelopment, mixed-use
with high density residential.
Building heights adjustments
can be considered with mixed-
use development.
15 Low & Very Low
Subtotal – Subarea 11 459,550 10.550 157.60 101
City of San Luis Obispo Draft Housing Element, October 2020
E20 Subarea Zone General Plan
Land Use
Assessor’s
Parcel Number
*Pipeline project
**New site for
inventory Vacant Under-Utilized Blighted Avg.
Slope
Square Feet Acres Density
units
per
acre
Max.
Res.
Capacity
, density
units
Constraints to Development /
Existing Conditions
Realistic
# of
Dwelling
Units
Income
Category
12 R-1 Low Density
Residential
002-352-014 X < 15% 56,150 1.289 7 9.02 SFR on large lot, suitable for
more development, requires
subdivision for more dev.
3 Moderate
12 R-1 Low Density
Residential
002-352-021 X <15% 31,150 0.715 7 5.01 Vacant developable lot,
requires subdivision for more
dev.
4 Moderate
12 R-1-S Low Density
Residential
002-354-009 X 16-
20%
28,050 0.644 4 2.58 Vacant lot in subdivided tract 1 Moderate
12 R-1-S Low Density
Residential
002-354-016 X 21-
25%
15,550 0.357 2 0.71 Vacant lot in subdivided tract 1 Above Moderate
12 R-1 Low Density
Residential
003-591-003 X 16-
20%
101,700 2.335 4 9.34 1 SFR surrounded by a large
undeveloped lot
8 Moderate
12 C/OS,P
F
R-1, R-
2
Public
Facilities, Open
Space,
Low &Medium
Density Res.
003-601-007** X < 15% 144,600 3.320 7 23.24 County owned property,
suitable for development
8 Moderate
10 Above Moderate
12 R-1 Low Density
Residential
003-602-003 X < 15% 7,100 0.163 7 1.14 Vacant lot in subdivided tract 1 Above Moderate
12 R-1 Low Density
Residential
003-602-004 X < 15% 7,550 0.173 7 1.20 Vacant lot in subdivided tract 1 Above Moderate
12 R-1 Low Density
Residential
003-602-005 X 16-
20%
60,070 1.379 4 5.50 Vacant lot in subdivided tract 1 Moderate
Subtotal – Subarea 12 451,920 10.375 57.77 38
13 R-1 Low Density
Residential
003-703-064 X < 15% 7,900 0.182 7 1.25 Vacant developable lot 1 Above Moderate
13 R-1 Low Density
Residential
003-703-068,
003-703-069
X < 15% 30,700 0.705 7 4.95 Vacant developable lot 2 Moderate
13 R-1 Low Density
Residential
003-771-011 X < 15% 35,250 0.809 7 5.65 Vacant developable lot,
requires subdividing of lot
3 Moderate
City of San Luis Obispo Draft Housing Element, October 2020
E21 Subarea Zone General Plan
Land Use
Assessor’s
Parcel Number
*Pipeline project
**New site for
inventory Vacant Under-Utilized Blighted Avg.
Slope
Square Feet Acres Density
units
per
acre
Max.
Res.
Capacity
, density
units
Constraints to Development /
Existing Conditions
Realistic
# of
Dwelling
Units
Income
Category
13 R-1 Low Density
Residential
004-392-024 X 21-
25%
12,200 0.280 2 0.55 Vacant developable lot 1 Above Moderate
13 R-1 Low Density
Residential
004-392-025 X 16-
20%
12,400 0.285 4 1.15 Vacant developable lot 1 Above Moderate
13 R-1 Low Density
Residential
004-392-034 X 21-
25%
56,750 1.303 2 2.60 SFR on lot with creek, with
room for more development,
requires subdivision of lot
1 Moderate
13 R-1 Low Density
Residential
004-523-016 X < 15% 25,050 0.573 7 4.03 SFR on lot with room for
additional development and
requires subdivision for
additional development
2 Moderate
13 R-1 Low Density
Residential
004-523-024 X < 15% 7,950 0.183 7 1.27 Vacant developable lot 1 Above Moderate
13 R-1-S Low Density
Residential
004-751-010 X 16-
20%
221,450 5.084 4 20.35 Vacant developable lot,
requires subdividing of lot
2 Moderate
13 R-1 Low Density
Residential
004-993-001,
004-993-002
X < 15% 62,450 1.434 7 10.05 Surface parking, suitable for
future development, requires
subdivision for development
5 Moderate
Subtotal – Subarea 13 472,100 10.840 51.85 19
14 R-2-S Medium
Density
Residential
003-571-014 X < 15% 46,250 1.062 12 12.74 SFR on lot, creek setback will
be required, suitable for
additional development
6 Moderate
14 R-2 Medium
Density
Residential
003-653-018 X < 15% 15,250 0.350 12 4.20 2 Shed structures, suitable for
development
3 Above Moderate
14 R-2-S Medium
Density
Residential
003-656-009 X X < 15% 7,580 0.174 12 2.09 Blighted SFR, suitable for
redevelopment
1 Above Moderate
City of San Luis Obispo Draft Housing Element, October 2020
E22 Subarea Zone General Plan
Land Use
Assessor’s
Parcel Number
*Pipeline project
**New site for
inventory Vacant Under-Utilized Blighted Avg.
Slope
Square Feet Acres Density
units
per
acre
Max.
Res.
Capacity
, density
units
Constraints to Development /
Existing Conditions
Realistic
# of
Dwelling
Units
Income
Category
14 R-2-S Medium
Density
Residential
003-656-010 X X < 15% 8,760 0.201 12 2.41 Blighted SFR, suitable for
redevelopment
1 Above Moderate
14 R-1 Low Density
Residential
003-661-025 X X 16-
20%
17,400 0.399 4 1.60 Blighted SFR, suitable for
redevelopment
1 Above Moderate
14 R-2 Medium
Density
Residential
003-664-023 X 21-
25%
11,000 0.252 4 2.00 Vacant developable lot 1 Above Moderate
14 PF Public
Facilities
003-682-042 X < 15% 154,510 3.547 12 42.56 County health building on half
of lot. Undeveloped half of the
site suitable for development.
10 Moderate
12 Above Moderate
14 R-2 Medium
Density
Residential
003-682-043 X < 15% 26,950 0.619 12 7.43 Surface parking lot, suitable
for additional development
6 Moderate
14 R-1 Low Density
Residential
004-972-069** X < 15% 15,380 0.353 7 2.47 Vacant developable lot 1 Above Moderate
Subtotal – Subarea 14 303,070 6.957 77.50 40
15 R-2 Medium
Density
Residential
004-961-061** X < 15% 76,650 1.760 12 21.10 Vacant lot (former site of a
building which has burned
down), suitable for future
development
5 Moderate
10 Above Moderate
15 C-S Service &
Manufacturing 004-962-028** X < 15% 21,350 0.490 24 11.75 New apartment project
currently under review
15 Above Moderate
Subtotal – Subarea 15 98,000 2.250 32.85 30
16 C-R-
SF
General
Retail
004-921-010 X < 15% 8,500 0.195 24 4.68 ConstructionSurface parking
lot and temporary trailer
4 Moderate
16 C-S-
SF
Service &
Manufacturing 004-923-015 X < 15% 11,150 0.256 24 6.14 One commercial building on
site with room for more
development
5 Moderate
City of San Luis Obispo Draft Housing Element, October 2020
E23 Subarea Zone General Plan
Land Use
Assessor’s
Parcel Number
*Pipeline project
**New site for
inventory Vacant Under-Utilized Blighted Avg.
Slope
Square Feet Acres Density
units
per
acre
Max.
Res.
Capacity
, density
units
Constraints to Development /
Existing Conditions
Realistic
# of
Dwelling
Units
Income
Category
16 C-R General
Retail
004-924-013* X < 15% 17,000 0.390 36 14.04 Mixed use residential project
with all low income units
currently under review
32 Low & Very Low
16 C-R-
SF
General
Retail
004-925-012,
004-925-014
X < 15% 17,600 0.404 24 9.70 SFR with room for additional
development
6 Moderate
16 C-S-
SF, C-
R-SF
Service &
Manufacturing,
General Retail
053-195-003 X < 15% 46,570 1.069 24 25.66 1 structure onsite, large
parking area. Suitable for
development.
17 Low & Very Low
16 C-S-
SF, C-
R-SF
Service &
Manufacturing,
General Retail
053-196-004 X < 15% 54,500 1.251 24 30.02 1 commercial structure,
parking lot, and vacant
developable area
23 Low & Very Low
16 M Service &
Manufacturing
053-201-012 X < 15% 40,350 0.926 24 22.22 Surface parking lot, suitable
for development.
17 Low & Very Low
16 M Service &
Manufacturing
053-202-014 X < 15% 40,120 0.921 24 22.10 One SFR, suitable for
additional development.
12 Low & Very Low
16 C-S Service &
Manufacturing 053-202-025 X < 15% 16,600 0.381 24 9.14 Commercial structure with
large surface parking area.
5 Moderate
16 C-S Service &
Manufacturing 053-202-026** X < 15% 24,400 0.560 24 13.44 Mixed use residential project
currently under review
2 Low & Very Low
13 Above Moderate
Subtotal – Subarea 16 276,790 6.353 157.14 136
17 R-2-S Medium
Density
Residential
004-582-006 X < 15% 74,840 1.718 12 20.62 SFR on a hillside lot with
street access
5 Moderate
10 Above Moderate
City of San Luis Obispo Draft Housing Element, October 2020
E24 Subarea Zone General Plan
Land Use
Assessor’s
Parcel Number
*Pipeline project
**New site for
inventory Vacant Under-Utilized Blighted Avg.
Slope
Square Feet Acres Density
units
per
acre
Max.
Res.
Capacity
, density
units
Constraints to Development /
Existing Conditions
Realistic
# of
Dwelling
Units
Income
Category
17 C-R General
Retail
004-583-052** X < 15% 9,150 0.210 36 7.56 Mixed use residential project
currently under review
1 Low & Very Low
9 Above Moderate
17 R-2-S Medium
Density
Residential
004-584-011 X 16-
20%
40,730 0.935 6 5.60 Vacant developable lot 4 Moderate
17 M Service &
Manufacturing 004-811-036* X < 15% 95,400 2.19 24 52.56 Mixed use residential project
currently under review
2 Low & Very Low
16 Above Moderate
17 M,
C/OS-
40
Service &
Manufacturing,
Open Space
004-881-002 X < 15% 148,060 3.399 24 81.60 Commercial structure, creek
on site, suitable for more dev.
41 Low & Very Low
17 R-1 Low Density
Residential
004-903-023 X < 15% 7,140 0.164 7 1.15 Vacant developable lot 1 Above Moderate
17 R-1-
PD
Low Density
Residential
004-945-024 X 21-
25%
5,010 0.115 2 0.23 Vacant developable lot, steep
hillside lot
1 Above Moderate
Subtotal – Subarea 17 38,350 8.731 169.32 90
21 M Service &
Manufacturing
053-063-014 X < 15% 12,370 0.284 24 6.82 Vacant developable lot. 3 Moderate
City of San Luis Obispo Draft Housing Element, October 2020
E25 Subarea Zone General Plan
Land Use
Assessor’s
Parcel Number
*Pipeline project
**New site for
inventory Vacant Under-Utilized Blighted Avg.
Slope
Square Feet Acres Density
units
per
acre
Max.
Res.
Capacity
, density
units
Constraints to Development /
Existing Conditions
Realistic
# of
Dwelling
Units
Income
Category
21 C-S-S Service &
Manufacturing
053-221-018,
053-221-027
X < 15% 35,500 0.815 24 19.55 Underdeveloped. One SFR,
site developable, limitations
for development b/c of creek
setbacks (creek through site).
9 Low & Very Low
21 C-S-S Service &
Manufacturing
053-221-037** X < 15% 21,300 0.489 24 11.74 Underdeveloped 1 SFR
suitable for dev., limitations
for dev. b/c of creek setbacks
(creek on site)
4 Moderate
21 M-S Service &
Manufacturing
053-231-015 X < 15% 98,530 2.262 24 54.29 4 commercial structures on
half of lot, developable
27 Low & Very Low
21 C-S Service &
Manufacturing
053-231-044** X < 15% 49,220 1.130 24 27.12 Unimproved parking lot,
suitable for development.
20 Low & Very Low
21 C-S Service &
Manufacturing
053-231-048** X < 15% 59,240 1.360 24 32.64 Mixed use residential project
currently under review
39 Low & Very Low
1 Moderate
Subtotal – Subarea 21 276,140 6.340 152.14 103
22 R-1-
SP
Low Density
Residential
053-411-012 X X < 15% 20,900 0.480 7 3.36 Blighted SFR structure,
suitable for dev., requires
subdivision
2 Above Moderate
22 R-1-
SP,
C/OS-
10
Low Density
Residential,
Open Space
053-411-013** X < 15% 72,300 1.660 7 11.62 1 SFR, dev. will require creek
setbacks and subdividing
6 Moderate
22 C-S Service &
Manufacturing 053-411-017 X < 15% 6,650 0.153 24 3.67 Vacant developable lot. New
dev. requires creek setbacks.
3 Moderate
22 R-1
SP
Low Density
Residential
053-411-018,
053-411-014
X X < 15% 152,050 3.490 7 24.43 3 SFRs & 2 storage structures,
developable, requires
subdivision
8 Moderate
10 Above Moderate
Subtotal – Subarea 22 251,900 5.783 43.08 29
23 C-S Service &
Manufacturing
053-421-005** X < 15% 554,100 12.720 24 305.30 Very large mixed use
residential project currently
19 Low & Very Low
20 Moderate
City of San Luis Obispo Draft Housing Element, October 2020
E26 Subarea Zone General Plan
Land Use
Assessor’s
Parcel Number
*Pipeline project
**New site for
inventory Vacant Under-Utilized Blighted Avg.
Slope
Square Feet Acres Density
units
per
acre
Max.
Res.
Capacity
, density
units
Constraints to Development /
Existing Conditions
Realistic
# of
Dwelling
Units
Income
Category
under review, the existing use
is a mobile home park
210 Above Moderate
23 C-S-
SP
Service &
Manufacturing
053-421-002,
053-421-006**
X < 15% 509,100 11.690 24 280.00 Very large mixed use project
currently under review
280 Above Moderate
Subtotal – Subarea 23 1,063,200 24.410 585.30 529
24 O-SF Service &
Manufacturing
053-041-078** X X < 15% 94,900 2.178 12 26.14 Currently non-conforming
junk yard with 4 SFR.
Identified in the Land Use
Element update for mixed-use
development.
5 Moderate
10 Above Moderate
24 C-S Service &
Manufacturing
053-051-060,
lots 060 -–
065**
X < 15% 61,000 1.400 24 33.60 Site contains 11 units,
driveways & parking lots, and
vacant areas. Suitable for
development.
15 Low & Very Low
Subtotal – Subarea 24 155,900 3.580 59.75 30
25 R-2-
SF,
C/OS-
20
Medium
Density
Residential,
Open Space
053-141-013 X < 15% 296,200 6.800 12 81.60 Residentially zoned part of site
suitable for future
development. Site
considerations include flood
mitigation, creek preservation,
agricultural preservation, and
traffic circulation. See Land
Use Element for more
information.
20 Moderate
20 Above Moderate
25 R-1-
SF,
C/OS-
10
Low Density
Residential,
Open Space
053-161-020** X < 15% 319,400 7.332 7 51.32 Inside urban reserve, suitable
for future development.
Site considerations include
flood mitigation, creek
preservation, agricultural
preservation, and traffic
circulation. See Land Use
Element for more information.
12 Moderate
Subtotal – Subarea 25 615,600 14.132 132.92 52
26 R-1-S Low Density
Residential
053-116-032 X < 15% 10,260 0.236 7 1.65 Vacant developable lot 1 Above Moderate
City of San Luis Obispo Draft Housing Element, October 2020
E27 Subarea Zone General Plan
Land Use
Assessor’s
Parcel Number
*Pipeline project
**New site for
inventory Vacant Under-Utilized Blighted Avg.
Slope
Square Feet Acres Density
units
per
acre
Max.
Res.
Capacity
, density
units
Constraints to Development /
Existing Conditions
Realistic
# of
Dwelling
Units
Income
Category
26 R-1-S Low Density
Residential
053-116-034 X < 15% 12,550 0.288 7 2.02 Vacant developable lot 1 Above Moderate
26 R-1-S Low Density
Residential
053-116-035 X < 15% 11,290 0.259 7 1.80 Vacant developable lot 1 Above Moderate
26 R-1-S Low Density
Residential
053-116-047 X < 15% 9,570 0.220 7 1.53 Vacant developable lot 1 Above Moderate
26 C-R General
Retail
053-510-012 X < 15% 318,700 7.320 36 263.40 Vacant lot behind Home
Depot.
132 Low & Very Low
Subtotal – Subarea 26 362,370 8.323 270.40 136
Vacant - Low & Very Low 367,900 8.5 290.5 152
Vacant - Moderate & Above 2,287,020 52.5 347.7 184
Underutilized - Low & Very Low 766,520 17.6 448.3 345
Underutilized - Moderate & Above 4,177,450 95.9 1,425.6 1,139
Total 7,598,890 174.5 2,512.1 1,820
City of San Luis Obispo Draft Housing Element, October 2020
E28
Table E - 3: Residential Capacity by Parcel and Specific Plan Area Subarea Zone General Plan
Land Use
Assessor’s
Parcel
Number
*Pipeline
project Vacant Under-Utilized Blighted Avg.
Slope
Square Feet Acres Density
units
per
acre
Max. Res.
Capacity,
density
units
Constraints to Development /
Existing Conditions
Realistic
# of
Dwelling
Units
Income
Category
18 R-3-SP Medium High
Density
Residential
053-431-002 X <15% 305,800 7.020 20 140.40 Underutilized, mostly vacant land
with 4 residential structures.
60 Low & Very Low
18 C-N-SP Neighborhood
Commercial
053-431-002 X <15% 135,900 3.120 12 37.45 Underutilized, mostly vacant land
with 4 residential structures.
10 Moderate
23 Above Moderate
18 O-SP Office 053-431-002 X <15% 65,350 1.500 12 18.00 Underutilized, mostly vacant land
with 4 residential structures.
5 Moderate
10 Above Moderate
18 R-2-SP Medium
Density
Residential
053-431-002 X <15% 919,550 21.110 12 253.30 Underutilized, mostly vacant land
with 4 residential structures.
78 Moderate
150 Above Moderate
18 R-1-SP Low Density
Residential
053-431-002 X <15% 237,850 5.460 7 38.20 Underutilized, mostly vacant land
with 4 residential structures.
10 Moderate
24 Above Moderate
18 C-R-SP General Retail 053-431-003 X <15% 39,650 0.910 36 32.75 Underutilized, mostly vacant land
with 1 residential structure.
16 Low & Very Low
18 R-3-SP Medium High
Density
Residential
053-431-003 X <15% 25,250 0.580 20 11.60 Underutilized, mostly vacant land
with 1 residential structure.
5 Low & Very Low
18 R-2-SP Medium
Density
Residential
053-431-003 X <15% 83,650 1.920 12 23.00 Underutilized, mostly vacant land
with 1 residential structure.
5 Moderate
12 Above Moderate
18 R-2-SP Medium
Density
Residential
varies* X <15% 52,700 1.210 12 14.50 Vacant properties with an
affordable housing project
currently in the development
review process.
38 Low & Very Low
Subtotal – Margarita Area Specific Plan (Area 18) 1,865,700 42.830 569.20 446
City of San Luis Obispo Draft Housing Element, October 2020
E29 Subarea Zone General Plan
Land Use
Assessor’s
Parcel
Number
*Pipeline
project Vacant Under-Utilized Blighted Avg.
Slope
Square Feet Acres Density
units
per
acre
Max. Res.
Capacity,
density
units
Constraints to Development /
Existing Conditions
Realistic
# of
Dwelling
Units
Income
Category
20 R-4-SP High Density
Residential
067-121-022 X <15% 479,150 11.000 24 264.00 Vacant developable lot. 246 Low & Very Low
20 R-2-SP Medium
Density
Residential
067-121-022 X <15% 318,000 7.300 12 87.60 Vacant developable lot. 30 Moderate
74 Above Moderate
20 R-1-SP Low Density
Residential
067-121-022 X <15% 936,550 21.500 7 150.50 Vacant developable lot. 75 Moderate
155 Above Moderate
Subtotal – San Luis Ranch Specific Plan (Area 20) 1,733,700 39.800 502.10 580
21 R-2-SP Medium
Density
Residential
004-705-003 X <15% 35,950 0.825 12 9.90 Underutilized lot with 2
residential structures.
2 Moderate
6 Above Moderate
21 R-2-SP Medium
Density
Residential
004-705-004 X <15% 47,800 1.097 12 13.15 Underutilized lot with 1
residential structure.
4 Moderate
7 Above Moderate
21 R-3-SP Medium High
Density
Residential
004-705-005* X <15% 60,500 1.390 20 27.80 Residential project currently in
the development review process
5 Low & Very Low
3 Moderate
32 Above Moderate
21 R-2-SP Medium
Density
Residential
004-705-006 X <15% 87,050 1.998 12 24.00 Underutilized lot with 3
residential structures.
6 Moderate
12 Above Moderate
21 R-1-SP Low Density
Residential
004-705-007 X <15% 43,600 1.001 7 7.00 Underutilized lot with 2
residential structures.
2 Moderate
2 Above Moderate
21 R-3-SP,
C-C-SP
Medium High
Density
Residential,
Community
Commercial
004-705-009,
053-061-056*
X <15% 467,400 10.730 20 214.60 Residential project currently in
the development review process
2 Low & Very Low
5 Moderate
185 Above Moderate
21 R-3-SP Medium High
Density
Residential
004-705-010,
004-705-011
X <15% 237,400 5.450 20 109.00 Underutilized lot with 2
residential structures.
82 Low & Very Low
21 R-1-SP Low Density
Residential
004-706-003 X <15% 596,200 13.687 7 95.80 Underutilized lot with 3
residential structures.
15 Moderate
30 Above Moderate
Subtotal – Orcutt Area Specific Plan (Area 21) 1,575,900 36.178 501.25 400
City of San Luis Obispo Draft Housing Element, October 2020
E30 Subarea Zone General Plan
Land Use
Assessor’s
Parcel
Number
*Pipeline
project Vacant Under-Utilized Blighted Avg.
Slope
Square Feet Acres Density
units
per
acre
Max. Res.
Capacity,
density
units
Constraints to Development /
Existing Conditions
Realistic
# of
Dwelling
Units
Income
Category
23 R-4-SP High Density
Residential
053-259-008,
053-259-011,
053-259-012
X <15% 191,650 4.400 24 106.00 Vacant developable lot. 125 Low & Very Low
23 R-3-SP Medium High
Density
Residential
053-259-008,
053-259-011,
053-259-012
X <15% 470,450 10.800 20 216.00 Vacant developable lot. 197 Low & Very Low
23 R-2-SP Medium
Density
Residential
053-259-008,
053-259-011,
053-259-012
X <15% 1,189,200 27.300 12 327.60 Vacant developable lot. 110 Moderate
187 Above Moderate
23 R-1-SP Low Density
Residential
053-259-008,
053-259-011,
053-259-012
X <15% 557,500 12.800 7 89.60 Vacant developable lot. 40 Moderate
61 Above Moderate
Subtotal – Avila Ranch Planning Area (Area 23) 2,408,800 55.300 739.20 720
26 R-3-SP Medium High
Density
Residential
067-241-030,
067-241-031*
X <15% 1,624,800 37.300 20 130.00 Multifamily residential project
currently in the development
review process
130 Above Moderate
26 R-4-SP High Density
Residential
067-241-030,
067-241-031*
X <15% 78,400 1.800 24 44.00 Multifamily residential project
currently in the development
review process
27 Low & Very Low
17 Above Moderate
Subtotal – Froom Ranch Planning Area (Area 26) 1,703,200 39.100 174.00 174
Vacant - Low & Very Low 662,100 15.2 322.0 322
Vacant - Moderate & Above 1,746,700 40.1 417.2 398
Underutilized - Low & Very Low 1,218,360 28.0 616.3 481
Underutilized - Moderate & Above 5,660,140 129.9 1,130.3 1,119
Total 9,287,300 213.2 2,485.8 2,320
City of San Luis Obispo Draft Housing Element, October 2020
F1
Appendix F
Affordable Housing
______________________________________________________________________________
1. Purpose
The City has prepared this document to describe and quantify the supply and location of affordable
housing within the City of San Luis Obispo. Affordable dwellings are summarized according to
affordability level, affordability program and occupancy types.
2. Definitions
Affordability Level
This document lists dwellings deemed affordable under City standards to extremely-low, very-
low, low, and moderate-income persons. Income level categories are based on the percentage of
the county median income, as follows:
• Extremely Low: 30% or Less
• Very Low: 31 to 50%
• Low: 51% to 80%
• Moderate: 81% to 120%
• Above Moderate: 121% or Higher
Affordability Program
Affordability program refers to the organization/program used to create or manage the affordable
housing unit. The various affordability programs in the City include Building Equity and Growth
in Neighborhoods (BEGIN), Housing Authority of San Luis Obispo (HASLO), U.S. Department
of Housing and Urban Development (HUD), City Inclusionary Housing and State/Federal Tax
Credit projects. The affordability term varies depending on the organization/program used to create
or manage the affordable housing unit.
Occupancy Type
Inclusionary housing units are those units that have been created due to inclusionary housing
requirements imposed upon developments of five or more units. According to the terms of
inclusionary housing agreements, these units typically must remain affordable for a certain period
time before they may be sold at market rate prices. Some of the City’s older agreements have a
30-year deed restriction, but the most recent agreement terms are 45-years for for-sale (including
equity share) and 55 years for rentals. These regulations were implemented in order to create and
maintain more affordable units within the community. The affordability term was established to
preserve a unit’s affordability over the longest period possible to maximize public benefits from
the Inclusionary Program.
City of San Luis Obispo Draft Housing Element, October 2020
F2
3. Housing Type
For ease of mapping, housing types were classified as either owner or rental. Ownership units
typically include single-family residences and condominiums. Rental units typically include
apartments and group housing. Descriptions of each housing type are as follows:
• Single Family Residences (SFRs) are individually owned dwelling units intended to be
occupied by a single household.
• Condominiums (condos) are complexes of individually owned dwelling units within a larger
building occupied by more than one household, where common areas are jointly owned.
• Apartments are characterized as complexes of dwelling units rented out to tenants within a
larger building occupied by more than one household.
• Group Housing includes dwelling units where groups of non-related persons reside together.
The following tables provide a summary of the City’s affordable housing units broken down by
income level, program type and tenure. As of June 2020, there are 1,306 affordable housing units
in the City. Figures F-1, F-2, and F-3 below show the locations these affordable housing units.
Table F - 1: Affordable Housing Units by Income Level, 2020
Affordability Level Number of Units
Extremely Low 29
Very Low 256
Low 929
Moderate 92
Total Units 1,306
Source: Community Development Department 2020
Table F - 2: Affordable Housing Units by Program, 2020
Affordable Program Number of Units
HASLO 697
HUD 345
Inclusionary 264
Total 1,306
Source: Community Development Department 2020
Table F - 3: Affordable Housing Units by Tenure, 2020
Tenure Number of Units
Owner 79
Renter 1,227
Total 1,306
Source: Community Development Department 2020
City of San Luis Obispo Draft Housing Element, October 2020
F3
4. Affordable Unit Inventory
Table F - 4: Inventory of Deed Restricted Affordable Housing Units, 2020
ID APN Units Program Affordability
Level
Occupancy
Type Address
1 004-982-041 16 HASLO Low Renter 2929 AUGUSTA
2 003-601-006 34 HASLO Multi Renter 1600 BISHOP
3 003-739-031 8 HASLO Low Renter 441 BRANCH
4 002-304-032 9 HASLO Low Renter 649 BRANCH
5 002-304-032 30 HASLO Low Renter 611 BRIZZOLARA
6 053-231-047 46 HASLO Multi Renter 3680 BROAD
7 003-513-019 19 HASLO Low Renter 1312 CARMEL
8 003-682-041 41 HASLO Low Renter 1325 ELLA
9 003-736-014 3 HASLO Low Renter 2126 HARRIS
10 001-043-031 20 HASLO Low Renter 508 HATHWAY
11 003-612-032 6 HASLO Low Renter 228 HIGH
12 003-625-016 8 HASLO Low Renter 478 HIGH
13 002-427-001 30 HASLO Multi Renter 849 HIGUERA S
14 053-263-091 15 HASLO Low Renter 4280 HIGUERA S
15 004-951-021 20 HASLO Multi Renter 860 HUMBERT
16 053-091-029 20 HASLO Low Renter 1102 IRONBARK
17 003-555-027 20 HASLO Low Renter 1175 ISLAY
18 004-961-047 24 HASLO Low Renter 1105 LAUREL
19 004-972-036 1 HASLO Low Renter 1480 LAUREL
20 003-622-016 18 HASLO Low Renter 456 LEFF
21 004-422-033 20 HASLO Low Renter 11650 LOS OSOS
VALLEY
22 053-182-027 21 HASLO Low Renter 210 MARGARITA
23 002-431-005 68 HASLO Low Renter 955 MONTEREY
24 052-012-025 1 HASLO Low Renter 147 PATRICIA
25 002-454-017 11 HASLO Low Renter 1363 PISMO
26 053-083-002 20 HASLO Low Renter 4035 POINSETTIA
27 053-102-026 8 HASLO Low Renter 1497 ROYAL
28 003-659-008 21 HASLO Low Renter
1820 SANTA
BARBARA
Units 201-211, 301-
311
29 004-811-039 43 HASLO Multi Renter 313 SOUTH
City of San Luis Obispo Draft Housing Element, October 2020
F4
ID APN Units Program Affordability
Level
Occupancy
Type Address
30 004-962-020 34 HASLO Very Low Renter 1045 SOUTHWOOD
31 004-573-003 3 HASLO Low Renter 1240 SOUTHWOOD
32 004-784-005 1 HASLO Very Low Renter 1379 SYDNEY
33 003-562-007 20 HASLO Low Renter 1600 TORO
34 003-644-014 3 HASLO Low Renter 711 UPHAM
35 053-433-051 36 HASLO Multi Renter 3175 VIOLET
36 004-981-019 107 HUD Low Renter 3000 AUGUSTA
37 004-972-064 32 HUD Very Low Renter 3042 AUGUSTA
38 002-392-017 5 HUD Very Low Renter 537 BRIZZOLARA
39 004-845-009 41 HUD Multi Renter 2240 EMILY
40 053-034-065 28 HUD Multi Renter 3071 HIGUERA S
41 003-544-017 9 HUD Multi Renter 1062 ISLAY
42 053-102-025 120 HUD Low Renter 1550 MADONNA
43 004-583-059 1 HUD Very Low Owner 3208 ROCKVIEW
44 004-583-060 1 HUD Very Low Owner 3210 ROCKVIEW
45 004-583-061 1 HUD Very Low Owner 3212 ROCKVIEW
46 004-985-003 1 Inclusionary Moderate Renter 3051 AUGUSTA
Unit #17
47 003-749-005 6 Inclusionary Low Renter 527 BRANCH
48 004-812-003 1 Inclusionary Moderate Owner 215 BRIDGE
49 004-583-055 1 Inclusionary Low Renter 3077 BROAD
50 004-583-034 8 Inclusionary Low Renter 3229 BROAD
51 053-234-019 1 Inclusionary Very Low Renter 3592 BROAD
52 053-234-022 1 Inclusionary Very Low Renter 3594 BROAD
53 053-234-025 1 Inclusionary Moderate Owner 3596 BROAD
54 053-061-057 68 Inclusionary Multi Renter 3750 BULLOCK
55 004-921-026 3 Inclusionary Very Low Renter 774 CAUDILL
56 052-174-052 4 Inclusionary Very Low Renter
22 CHORRO
Units 210, 211, 310,
311
57 053-514-029 1 Inclusionary Moderate Owner 1963 DEVAUL
RANCH
58 053-514-030 1 Inclusionary Moderate Owner 1965 DEVAUL
RANCH
59 003-663-030 1 Inclusionary Very Low Owner 1043 ELLA
Unit #8
City of San Luis Obispo Draft Housing Element, October 2020
F5
ID APN Units Program Affordability
Level
Occupancy
Type Address
60 003-663-032 1 Inclusionary Very Low Owner 1043 ELLA
Unit #10
61 003-663-015 1 Inclusionary Moderate Owner 1075 ELLA
Unit #3
62 003-663-019 1 Inclusionary Moderate Owner 1079 ELLA
Unit #7
63 053-511-035 1 Inclusionary Moderate Owner 1582 ETO
64 053-511-033 1 Inclusionary Moderate Owner 1586 ETO
65 053-511-032 1 Inclusionary Moderate Owner 1588 ETO
66 053-511-031 1 Inclusionary Moderate Owner 1590 ETO
67 053-511-029 1 Inclusionary Moderate Owner 1594 ETO
68 053-511-028 1 Inclusionary Moderate Owner 1596 ETO
69 053-511-027 1 Inclusionary Moderate Owner 1598 ETO
70 053-514-008 1 Inclusionary Moderate Owner 1724 FARRIER
71 003-566-028 1 Inclusionary Moderate Renter 1717 FIXLINI
72 052-041-084 12 Inclusionary Very Low Renter 790 FOOTHILL
73 053-513-013 1 Inclusionary Moderate Owner 1645 FOREMAN
74 053-513-025 1 Inclusionary Moderate Owner 1664 FOREMAN
75 053-513-024 1 Inclusionary Moderate Owner 1680 FOREMAN
76 004-611-032 2 Inclusionary Very Low Renter 1469 GALLEON
77 003-731-005 4 Inclusionary Very Low Renter 345 HIGH
78 052-443-009 1 Inclusionary Low Owner 214 HIGHLAND
79 053-034-063 2 Inclusionary Low Renter 3053 HIGUERA S
80 053-034-063 1 Inclusionary Moderate Renter 3053 HIGUERA S
81 004-953-026 28 Inclusionary Multi Owner 851 HUMBERT
82 053-198-043 1 Inclusionary Moderate Owner 811 LAWRENCE
83 053-198-031 1 Inclusionary Moderate Owner 913 LAWRENCE
84 003-512-019 2 Inclusionary Moderate Renter 475 MARSH
Units 353 & 358
85 003-551-001 3 Inclusionary Low Renter 1604 MORRO
Units 1, 4 & 6
86 003-522-001 8 Inclusionary Low Renter 1306 NIPOMO
87 053-222-007 3 Inclusionary Multi Renter 791 ORCUTT
88 053-203-002 1 Inclusionary Moderate Renter 950 ORCUTT
89 004-712-080 10 Inclusionary Multi Renter 1299 ORCUTT
City of San Luis Obispo Draft Housing Element, October 2020
F6
ID APN Units Program Affordability
Level
Occupancy
Type Address
90 004-705-005 5 Inclusionary Moderate Both 3725 ORCUTT
91 002-442-013 1 Inclusionary Very Low Renter 1321 OSOS
Unit #230
92 001-223-008 1 Inclusionary Very Low Renter 1314 PALM
Unit #104
93 001-124-025 1 Inclusionary Very Low Owner 1320 PHILLIPS
94 001-124-026 1 Inclusionary Very Low Owner 1324 PHILLIPS
95 001-133-014 1 Inclusionary Moderate Renter 1435 PHILLIPS
Unit E
96 003-661-027 1 Inclusionary Moderate Owner 940 RACHEL
97 004-588-020 1 Inclusionary Moderate Owner 2975 ROCKVIEW
Unit #19
98 004-587-015 1 Inclusionary Moderate Owner 3090 ROCKVIEW
99 053-235-003 1 Inclusionary Moderate Owner
3591
SACRAMENTO
Unit #10
100 053-234-068 1 Inclusionary Moderate Owner
3591
SACRAMENTO
Unit #59
101 003-743-009 1 Inclusionary Low Renter 564 SANDERCOCK
Unit #5
102 052-136-034 1 Inclusionary Moderate Renter 2302 SANTA YNEZ
Unit A
103 053-514-041 1 Inclusionary Moderate Owner 1712 SINGLETREE
104 004-966-033 1 Inclusionary Moderate Renter 1023 SOUTHWOOD
Unit C
105 004-967-048 1 Inclusionary Moderate Renter 1037 SOUTHWOOD
Unit B
106 053-513-042 1 Inclusionary Moderate Owner 1800 SPOONER
107 001-042-022 1 Inclusionary Low Renter 1340 TAFT
Unit #130
108 053-067-032 2 Inclusionary Moderate Owner 980 TARRAGON
109 053-067-033 2 Inclusionary Moderate Owner 984 TARRAGON
110 053-513-031 1 Inclusionary Moderate Owner 1651 TONINI
111 053-513-033 1 Inclusionary Moderate Owner 1683 TONINI
112 053-513-041 25 Inclusionary Multi Renter 1704 TONINI
113 053-513-035 1 Inclusionary Moderate Owner 1715 TONINI
City of San Luis Obispo Draft Housing Element, October 2020
F7
ID APN Units Program Affordability
Level
Occupancy
Type Address
114 053-514-042 1 Inclusionary Moderate Owner 1773 TONINI
115 053-514-043 1 Inclusionary Moderate Owner 1775 TONINI
116 053-514-054 13 Inclusionary Multi Renter 1796 TONINI
117 053-514-053 1 Inclusionary Moderate Owner 1799 TONINI
118 053-198-007 1 Inclusionary Moderate Owner 2862 VICTORIA
119 001-207-027 1 Inclusionary Moderate Owner 1144 WALNUT
Unit #7
Source: City of San Luis Obispo Community Development Department Inventory 2020
City of San Luis Obispo Draft Housing Element, October 2020
F8
Figure F - 1: Map of Affordable Housing Units by Tenure, 2020
Source: Community Development Department, 2020
City of San Luis Obispo Draft Housing Element, October 2020
F9
Figure F - 2: Map of Affordable Housing Units by Income Level, 2020
Source: Community Development Department, 2020
City of San Luis Obispo Draft Housing Element, October 2020
F10
Figure F - 3: Map of Affordable Housing Units by Program, 2020
Source: Community Development Department, 2020
Appendix G
Public Outreach
______________________________________________________________________________
Updating the Housing Element has been a community effort, involving public participation
solicited through workshops, online surveys, newspaper legal notices, email lists, website
information, stakeholder meetings, and public hearings. Over the past year, the City conducted
wide-ranging public outreach to identify housing needs, issues and opportunities in the
community. The primary goals of the outreach effort were to:
1. Actively engage the diverse populations of the City in discussions about housing needs.
2. Ensure that affected residents, housing providers, homeless services providers, and funding
entities have opportunities to be actively involved in the process.
The City facilitated eight presentations, meetings, online surveys, and a public workshop over the
past year. The Housing Element’s policies and programs represent a wide range of community
perspectives on housing, including residents, housing consumers, non-profit housing
organizations, developers, realtors, chamber of commerce, downtown businesses, health
organizations, and many others. Below is a list of specific groups that were notified about the
Housing Element update. Outside of these specific groups, an interested parties list was created
and updated throughout the Housing Element Update process (April 2019 – October 2020). Emails
were sent to these individuals as well as the stakeholder groups regarding updates on any Housing
Element related events and hearings.
Stakeholder List
County of San Luis Obispo Planning Dept.
Cities of Paso Robles, Atascadero, Morro Bay,
Pismo, Grover Beach and Arroyo Grande Planning
Depts.
Transitions Mental Health Association
Home Builders Association
Housing Authority of San Luis Obispo (HASLO)
HEAL SLO – Healthy Community Working Group
Local Tribes
People's Self-Help Housing Corporation
SLO Chamber of Commerce
SLOCOG
SLO County Air Pollution Control District
SLO Association of Realtors
Local Realtors
Economic Vitality Corporation
Various Interested Community Members
Notices to the public were made through emails, City’s e-news, local newspaper (The New Times),
Twitter, Facebook, public radio and a Housing Element website, which was kept up to date with
links to surveys, staff reports, meeting dates, and other information regarding the Housing Element
Update.
Community Outreach Events and Public Comments
Public Forum and City Council Meeting #1 – April 2, 2019
The City hosted a public Housing Forum to kick off the Housing Element Update. Information
regarding State housing law, Housing Element & RHNA, housing production, and the City’s
City of San Luis Obispo Draft Housing Element, October 2020
G2
Inclusionary Housing program was
provided to all who attended. The
Forum also provided an
opportunity to collect names and
contact information from
individuals and organizations who
were interested in being contacted
about Housing Element update
events. At the City Council
meeting, City staff shared about the
Forum and comments shared by
those who attended and provided
detailed information regarding the
City’s housing programs, including
a status report on the Housing
Major City Goal, State housing
law, Housing Element and required
update, housing production and
housing affordability.
Planning Commission Meeting #1
– April 24, 2019
City staff provided the Planning
Commission with detailed
information regarding the City’s
housing programs, including a status report on the Housing Major City Goal, State housing law,
Housing Element and required update, housing production, and housing affordability. Public
comment was received during the Planning Commission Meeting regarding growth management,
housing production, funding for affordable housing, lack of overall housing, and lack of affordable
housing.
Stakeholder Outreach #1: Association of Realtors – July 23, 2019.
A presentation was given to the Association of Realtors of San Luis Obispo regarding the Housing
Element. The agenda consisted of Housing Element background information including
demographics, employment information and an explanation of the Regional Housing Needs
Allocation. No public comments were expressed during this meeting.
Public Outreach #1: Housing Element Workshop – December 10, 2020 & Online Survey
(December 10, 2020 – January 10, 2020)
Participants of the community workshop and the online survey (provided on the City’s Open City
Hall platform) were invited to provide input on housing needs, issues, and opportunities for
consideration in the update process. Below are word clouds that highlight the comments from
participants regarding each question. Approximately 100 individuals participated in the in-person
workshop and online survey.
Figure 1: An example of the notice included in emails, on the City’s
website, Twitter, and Facebook.
City of San Luis Obispo Draft Housing Element, October 2020
G3
NEEDS: WHAT TYPE OF HOUSING IS NEEDED MOST IN OUR
COMMUNITY?
ISSUES: WHAT HOUSING ISSUES EXIST IN THE COMMUNITY?
City of San Luis Obispo Draft Housing Element, October 2020
G4
Below is a summary of the key themes from each of these questions:
Housing Issues
• Affordable housing
• Insufficient number of housing units to rent or purchase
• Not enough diversity in the types of housing
• Not enough high-density housing
Housing Needs
• Affordable housing
• Workforce (missing middle) housing
• Housing for families
• Student housing
• Senior housing
• Housing near employment
Housing Opportunities
• Increase residential densities where appropriate, such as downtown
• Provide more student housing on campus
• Rehabilitate existing housing resources
• ADUs
OPPORTUNITIES: WHERE ARE OPPORTUNITIES TO INCREASE
AVAILABLE HOUSING OPTIONS?
City of San Luis Obispo Draft Housing Element, October 2020
G5
Staff asked workshop participants to indicate on the City’s Zoning Map potential areas for
additional housing. Participants marked where they thought more housing could go and some even
indicated where a change in zoning could benefit increased housing production (see Figure 2).
Stakeholder Outreach #2: Chamber of Commerce - April 2, 2020
A presentation was given to the Chamber of Commerce of San Luis Obispo regarding the Housing
Element. The agenda consisted of Housing Element background information including
demographics, employment information, an explanation of the Regional Housing Needs
Allocation and a summation of the public comment thus far.
Figure 2: Zoning Map with participant comments
City of San Luis Obispo Draft Housing Element, October 2020
G6
Stakeholder Outreach #3: Economic Vitality Corporation and the Home Builders Association –
May 13, 2020
A presentation was given to the Economic Vitality Corporation with guests from the Home
Builders Association regarding the Housing Element. The agenda consisted of Housing Element
background information including demographics, employment information, an explanation of the
Regional Housing Needs Allocation and a summation of the public comment thus far.
Public Outreach #2: Housing Element Online Survey – June 8, 2020 – June 24, 2020
In order 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 the
goals, policies, and program 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). The questions and summary of themes from the survey are
as follows:
1. Is there anything that was missed or needs to be modified?
• Retain the goal of visitability in Program 8.9
• Promote ADA/special needs housing
• Promote affordable senior housing projects
• Support high density housing developments
• Support local preference
2. Are there additional housing topics that should be considered?
• 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.
• Expand funding for affordable housing.
• Affordable housing
• Senior housing
• Homeless/Transition housing
3. Do you have ideas regarding how to increase the production and affordability of housing in the
community?
• 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
City of San Luis Obispo Draft Housing Element, October 2020
G7
Planning Commission Meeting #2 – June 10, 2020
The second Planning Commission meeting included review of modifications to goals, policies,
and programs within Chapter 3 of the Housing Element. There were six individuals who provided
public comment (via correspondence, voicemail or at the meeting) as well as comments from
various Commissioners. The following is summary of comments received:
1. A request to include more specific language to support and incentivize the development of
moderate-income affordable housing.
2. Support for Policy 5.4 and Program 5.5, which encourages the development of “missing
middle” type housing such as duplexes, triplexes, quadplexes, cottages, etc.
3. Suggested replacing Program 6.13 language “…where low-density residential areas is
minimal…” with “…where compatible with surrounding development…”
4. Suggested that the language in Goal 7 regarding neighborhood stability and owner
occupancy be retained.
5. Recommended a new policy be added under Goal 7 regarding public health and housing.
The recommended policy states, “Encourage neighborhood design elements that improve
overall health of residents by including safe convenient opportunities to access healthy
food, clean air, and active places for recreational exercise.”
6. Concern regarding the older stock of housing within the City and being able to provide
education and incentives to homeowner to sustain these older homes and make them safer.
7. Support for Policy 6.6 and Program 6.12 regarding the idea of flexible density within the
Downtown, and the Upper Monterey and Mid-Higuera special focus areas.
8. Support for the policies and programs that encourage housing production.
9. Concern that housing that is planned to be affordable by design or is a missing middle
housing type will not actually be affordable when it comes on the market.
10. Several concerns were raised about: climate change and the pandemic on future housing
design and functionality, preservation of historic structures and districts, flexible density,
streamlining the review process for mixed-used development projects, protecting parks and
open space, and a need for more specific neighborhood outreach.
Planning Commission Meeting #3 – July 22, 2020
The third Planning Commission meeting included review of draft Housing Element update. There
were four individuals who provided public comment (via correspondence and at the meeting) as
well as comments from various Commissioners. The following is summary of comments received
and incorporated into the draft Housing Element:
City of San Luis Obispo Draft Housing Element, October 2020
G8
1. Amend Appendix D, Table D-2 and Program 6.13 to include two additional properties,
12500 Los Osos Valley Road (APN: 053-141-013) and APN: 053-161-020 (Los Osos
Valley Road), for areas to be considered for rezone.
2. Amend Policy 7.9: Remove “outlet,” add “healthy” in front of “food,” and replace “active”
with “attractive.” [ With the changes, Policy 7.9 reads, “Encourage neighborhood design
elements that improve overall health of residents including safe and convenient
opportunities to access healthy food and attractive places for recreational exercise.”]
3. Directed staff to work on the wording of two new programs to support Policy 7.9 based on
the language provided by the Planning Commission.
4. Add “Core” after “Downtown” in Policy 2.15.
5. Amend Policy 5.1: Adding the language “where compatible with existing and planned
surrounding development.” [ With the changes, Policy 5.1 reads, “Encourage mixed- use
residential/ commercial projects in all commercial zones, especially those close to activity
centers, where compatible with existing and planned surrounding development.”]
6. Amend Goal 7: Add “and livability.” [ With the changes, Goal 7 reads, “Maintain, preserve
and enhance the quality and livability of neighborhoods.”]
City Council Meeting #2 – September 1, 2020
The City Council reviewed the draft Housing Element update at one of their regular public
meetings. There were three individuals who provided public comment (via correspondence and at
the meeting) and comments received from the Council members. The following is summary of
comments received:
1. Adjust Policy 7.9 and Programs 7.14, and 7.15 for more clarity.
2. Work with the City’s Attorney on the language of Policy 10.2.
3. Consider opportunities to include programs regarding:
a. Historic resource inventory
b. Zoning for microbusinesses
c. CC&R reform
d. Gray water systems.
Housing Summit Series (hosted by the Chamber of Commerce) – September 10, 2020
The 2020 Housing Summit provided a virtual three-part series exploring policies, practices, and
potential solutions to address the housing crisis within the County of San Luis Obispo.
Representatives from the City, as well as from the County and other cities within the County of
San Luis Obispo, took part in the last part of the series and provided the diverse audience with
highlights of the key programs that are included within each jurisdictions 6th Cycle Housing
City of San Luis Obispo Draft Housing Element, October 2020
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Element.
Public Outreach #3: Recirculation of the Revised Housing Element: October 29, 2020 –
November 17, 2020
The City provided public notice regarding the Revised Housing Element Update requesting
comments on the draft document prior to City Council review. Notification was provided via the
City’s website and social media accounts (Facebook and Twitter), in the New Times local
newspaper (in both Spanish and English) and an email was sent to the interested parties list, the
stakeholder group listed on page G-2 above, plus the additional following groups:
Local Non-profits
Community Action Partnership of SLO (CAPSLO)
SLO Farm Bureau
Californian Rural Legal Assistance (CRLA)
The Coalition of Labor Agriculture and Business (COLAB) SLO
California Women for Agriculture (CWA)
United Way of San Luis Obispo County
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Appendix H
Review of Previous Housing Element
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Table H - 1: Housing Element Program Evaluation, 5th Cycle (2014-2019)
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Goal 1 - Safety: Provide safe, decent shelter for all residents.
1.4 Safety 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
On-going. In 2017, $95,588 of CDBG
funds were used to rehabilitate the
Estella Court Housing Facility owned
by Family Care Network. In 2018-19,
the City collaborated with HASLO and
the HumanGood organization to
rehabilitate 279 affordable multi-family
housing units. A total of 15 affordable
housing communities received upgrades
with State tax-exempt conduit
financing.
In the past five years of the CDBG
program, the City has primarily received
and awarded requests for real property
acquisition for new affordable housing
projects, rather than rehabilitation
projects. Regardless, the program has
been effective in addressing
accessibility and life safety
improvements for very-low and low-
income apartments.
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1.5 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.
On-going. The City continues to
support its code enforcement and
neighborhood preservation
programs. Staffing is based on the
services being provided and now
includes a Code Enforcement
Supervisor along with two Code
Enforcement Officers and one Code
Enforcement Technician. Staff
addresses mainly reactive (complaint
based) issues, but also provides
proactive enforcement through the
Neighborhood Services Program. These
programs serve to promote
neighborhood wellness and prevent
neighborhood deterioration and blight
by eliminating identified substandard
building, housing, fire and life-safety,
and property maintenance violations.
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1.6 Safety Consider a Rental Inspection Program
to improve the condition of the City’s
Housing Stock.
Implemented. In May 2015, the City
Council adopted the Rental Housing
Inspection Ordinance. In March 2017,
the City Council voted to repeal the
ordinance.
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1.7 Safety Continue to support local and regional
solutions to homelessness by funding
programs such as the Maxine Lewis
Memorial Shelter and The Prado Day
Center.
On-going. The City continues to
support homeless service providers by
providing financial means for various
local and regional programs. In October
2018, the new 40 Prado Homeless
Services Center opened in the City,
offering over 100 beds for homeless
families and individuals and services
previously offered at the Maxine Lewis
Memorial Shelter and Prado Day
Center. Since 2015, the City has
provided over $1.3M through the CDBG
program and General Fund to support
programs and projects to help the
homeless.
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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.
Implemented. 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.
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Goal 2 - Affordability: Accommodate affordable housing production that helps meet the City’s quantified
objectives.
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
Ongoing. This program has been
successful in furthering affordable
housing construction and rehabilitation
in the City. Since 2009, the City has
either loaned, granted, or committed
over $10M in City AHFs for affordable
housing development for extremely-
low, very low, and low income families.
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would not be feasible without
Affordable Housing Fund support.
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.
On-going. Council adopted changes to
the City’s Zoning Regulations that
allows certain number of residential
units by right on a residentially zoned
legal lot, revised parking standards, and
expanded the Accessory Dwelling Unit
(ADU) ordinance to be consistent with
State law, allowing ADUs as a part of
single family and multi-family
developments, and eliminated impact
fees for those units.
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2.7 Affordability Continue to 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.
On-going. Procedures are in place to
streamline affordable housing projects
consistent with State law. Several
recent affordable housing projects have
financially benefitted from receiving
expedited processing and permitting,
including Bishop Street Studios which
required over 150 building inspections
from City staff.
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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.
Implemented. Reductions have been
built into the new fee structure that was
approved as a part of AB 1600 in 2018.
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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.
Implemented. Reductions have been
built into the new fee structure that was
approved as a part of the AB 1600 in
2018.
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2.10 Affordability Continue to coordinate public and
private sector actions to encourage the
development of housing that meets
the City’s housing needs.
On-going. The City coordinates
regularly with developers and local
agencies to provide housing
opportunities.
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2.11 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.
On-going. Since 1985, the City has
conducted 13 TEFRA hearings to allow
for the issuance of tax-exempt financing
for affordable housing projects,
including veteran, senior, and family
housing. Through this program, a total
of 493 units have been developed and
162 units have been preserved.
Additionally, the City has continued to
provide second mortgages for lower
income homebuyers and provide down
payment assistance loans for first-time
homebuyers.
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2.12 Affordability Consider incorporating HOA fees and
a standard allowance for utilities in
the calculation for affordable rents
and home sales prices.
On-going. Staff has completed a Nexus
Study and researched other local
jurisdictions in their approach to
incorporate HOA fees and a standard
allowance for utilities. However, staff
has not yet finalized a methodology for
incorporating an allowance into the
City’s Affordable Housing Standards.
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2.13 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.
On-going. The City’s Housing Program
Coordinator provides technical
assistance and education to tenants,
property owners and the community on
preserving at risk affordable housing
being converted to market rate. The City
also works with the Housing Authority
of San Luis Obispo (HASLO) who
offers informational workshops on
various affordable housing
opportunities within the City and
surrounding County.
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2.14 Affordability In conjunction with local housing
providers and the local residential
design community, continue to
provide technical assistance as
requested by the public, builders,
design professionals and developers
regarding design strategies to achieve
affordable housing.
On-going. The City has a website
dedicated to housing and published a
brochure detailing City policies and
incentives to developers and owners on
affordable housing. The City’s Housing
Programs Coordinator and Planners also
provide on-going technical assistance to
the public, property managers,
developers and realtors regarding design
strategies to achieve affordable housing.
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2.15 Affordability Evaluate 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.
On-going. Staff has completed a Nexus
Study and determined there is a nexus to
update the City’s Inclusionary Housing
Ordinance (IHO). Additional evaluation
is needed to determine the most
effective changes that need to be made
to Table 2A and the rest of the IHO to
produce affordable housing that is
consistent with the current development
in the City.
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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.
Done. 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. Staff is exploring
a new approach to providing workforce
housing through a variety of “missing
middle” housing types such as duplexes,
triplexes, quadplexes, cottages, etc.).
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2.17 Affordability Continue to consider increasing
residential densities above state
density bonus allowances for projects
that provide housing for low, very low
and extremely low income
households.
On-going. This has been implemented
on a variety of projects including:
Victoria Crossing, 860 On The Wye
(HASLO), Iron Works (HASLO), 1121
Montalban, Tiburon Place (Peoples’
Self-Help Housing), and Courtyard at
Serra Meadows (HASLO), all which
exceed the 35% base density bonus. The
City also continues to support and
encourage residential densities for
eligible housing developments up to
80% as allowable by AB 1763.
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Goal 3 - Housing Conservation: Conserve existing housing and prevent the loss of safe housing and the
displacement of current occupants.
3.8 Housing
Conservation
Adopt an ordinance that implements
policy 3.2 to discourage removal or
replacement of affordable housing.
Not Done. With the implementation of
State law such as, the Housing
Accountability Act, the Housing Crisis
Act, Permit Streamlining Act, and the
No Net Loss Law, the ability for the
removal or replacement of affordable
housing is very limited. As such, the
City no longer needs a separate
ordinance to discourage the removal or
replacement of affordable housing.
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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.
On-going. The City continues its code
enforcement program to address unsafe
and substandard buildings and
neighborhood reservation.
Approximately 332 cases identified for
unsafe or substandard housing
conditions were corrected.
In December of 2018, the City joined
Monterey Bay Community Power
(MBCP). MBCP is an existing
community choice energy program that
serves the counties of Santa Cruz, San
Benito, and Monterey and provides 100
percent carbon free electricity with a
rate savings relative to PG&E. In
addition, the City continues to require
that new construction meets California’s
Building Energy Efficiency Standards
(Title 24) and CALGreen.
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odify
(moved to
Policy 1.4)
3.10 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 (Downtown
Housing Conversion Regulations) of
the Zoning Regulations.
On-going. The City continues to
implement this program on a case-by-
case basis when new projects are
proposed in the Downtown to ensure
that there is a no net housing loss
consistent with the Zoning Regulations
Chapter 17.142. Additionally staff
reviews that projects are consistent with
SLOMC Chapter 17.32 that states “All
new commercial developments in the C-
D Zone shall include housing” unless
the housing is likely to jeopardize the
health, safety, or welfare of residents or
employees; or it meets the qualifications
for a variance.
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3.11 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.
On-going. The City continues to update
its list of historic resources on an annual
basis. The Historic Preservation
Program Guidelines and staff assist
property owners with guidance on
improvements to their properties
(repairs, additions, etc.) that are
consistent with the Historic Preservation
Ordinance. In addition, the City
manages the Mills Act program to
encourage rehabilitation of historic
buildings, which has been highly
successful, with numerous property
owners using the program's property tax
savings to upgrade their homes and
improve neighborhoods.
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3.12 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.
Ongoing. The City continues to
maintain an affordable housing
inventory with all agreements and term
expiration dates and implemented an
affordable housing monitoring program.
The monitoring program has been
successful in organizing affordable
housing agreements and ensuring deed-
restricted units are in compliance with
the City’s Affordable Housing
Standards. The City has a Condominium
Conversion Ordinance that provides for
affordability requirements when rental
apartment projects are proposed to be
converted to ownership units.
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3.13 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.
On-going. The City works alongside
HASLO and other non-profit housing
developers to expand affordable rental
opportunities. In this 5th Housing
Element Cycle, the City granted TMHA
$330,000 of Affordable Housing Funds
to acquire and rehabilitate an existing 6-
unit property for new rental housing
affordable to adults living with mental
illness.
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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.
4.5 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.
On-going. Development projects that
trigger the City’s Inclusionary Housing
Ordinance are reviewed by the Project
Planner and the Housing Programs
Coordinator for compliance with mixed-
income policies.
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4.6 Mixed-Income
Housing
Consider amending the City’s
Inclusionary Housing Ordinance and
Affordable Housing Incentives to
require that affordable units in a
development be of similar number of
bedrooms, character and basic quality
as the nonrestricted units in locations
that avoid segregation of such units.
On-going. Development projects that
trigger the City’s Inclusionary Housing
Ordinance are reviewed by the Project
Planner and the Housing Programs
Coordinator for compliance with the
requirement that affordable units are of
a similar number of bedrooms, character
and basic quality. In addition, staff took
the first steps in evaluating the
Inclusionary Housing Ordinance by
conducting an Affordable Housing
Nexus Study.
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Goal 5 - Housing Variety and Tenure. Provide variety in the location, type, size, tenure, and style of dwellings.
5.5 Housing
Variety and
Tenure
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.
Implemented. Through the
development review process, any
projects that trigger the City’s
Inclusionary Housing Ordinance (IHO)
are reviewed by the Project Planner and
the Housing Programs Coordinator for
compliance with housing variety and
tenure policies.
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Goal 6 - Housing Production. Plan for new housing to meet the full range of community housing needs.
6.11 Housing
Production
Maintain the General Plan and
Residential Growth Management
Regulations (SLOMC 17.144)
exemption for new housing in the
Downtown Core(C-D zone), and new
housing in other zones that is
enforceably restricted for extremely-
low, very low, low- and moderate
income households, pursuant to the
Affordable Housing Standards.
On-going. The City’s Residential
Growth Management Regulations
exempt dwellings affordable and
enforceably restricted to residents with
extremely-low, very low-, low-, and
moderate- income households as well as
new dwellings in the Downtown Core
(C-D) zone and all ADUs.
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6.12 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.
On-going. The City continues to allow
flexible parking regulations in the
Downtown for dwellings by allowing a
range of parking options including
paying in-lieu fees and reduced parking
requirements as compared to other
zones. The City also continues to
support the Downtown Residential
Overnight Parking Program (DROP)
which allows for overnight residential
parking within City parking facilities.
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6.13 Housing
Production
Continue to develop incentives to
encourage additional housing in the
Downtown Core (C-D Zone),
particularly in mixed-use
developments. Density based on
average unit size in a project should
be explored to encourage
the development of smaller efficiency
units.
On-going. The City has a variety of
development incentives available to
encourage housing in the Downtown.
Mixed use projects are allowed by right
in the Downtown with residential
densities up to 36 DU/acre in
combination with commercial uses.
Commercial development does not
impact or reduce a site’s residential
density. Additionally the Zoning
Regulations were updated in 2018 and
Section 17.32.030.C. states that “All
new commercial developments in the C-
D Zone shall include housing, unless the
City makes one of the following
findings: 1. Housing is likely to
jeopardize the health, safety, or welfare
of residents or employees; or 2. All of
the findings listed for Variances in
Section 17.114.040 (Required
Findings).”
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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.
Ongoing. The City’s expansion areas
are subject to Inclusionary Housing
Ordinance provisions. These provisions
require that at least 5% low and 10%
moderate income affordable housing be
provided in each development project.
Affordable housing must be
constructed; payment of in-lieu fees is
not allowed in expansion areas.
San Luis Ranch and Avila Ranch are
two new specific plan and planning
areas that were approved that both
include for sale and rental housing units.
Both projects also include areas zoned
for medium-high and high-density
housing and are required to provide deed
restricted affordable housing. Avila
Ranch includes 10.84 acres of Medium-
High Density (R-3 (20 units per acre))
that will support 185 units and 4.39
acres of High Density (R-4 (24 units per
acre)) that will support 125 units. San
Luis Ranch has 6.8 acres of Medium
Density (23 units per acre) that will
support 100 units and 10.4 acres of High
Density (30 units per acre) that will
support 200 units. Both plans include
density bonuses as well.
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6.9
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6.15 Housing
Production
Consider General Plan amendments
to rezone commercial, manufacturing
or public facility zoned areas for
higher-density, infill or mixed-use
housing where 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)
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 Los Osos Valley Road
(adjacent to Home Depot)
On-going. With the update to the Land
Use Element in 2015, the City adopted
the South Broad Street plan which
rezoned portions of South Broad and the
Little Italy area. Since the approval of
this plan, several new mixed-use
housing projects have been approved
and are under construction (The Yard,
Victoria Crossing, & Victoria and
Caudill Development). Additionally,
Avila Ranch Development plan was
approved in 2017. At 3710 Broad Street
HASLO has constructed 46 units and
Peoples’ Self-Help Housing has
received approval for a 40-unit mixed-
use affordable housing project.
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6.16 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.
On-going. The SLO County Housing
Trust Fund (HTF) is a private nonprofit
corporation that provides financing and
technical assistance to help private
developers, non-profit organizations,
and government agencies to produce
and preserve homes that working
families, seniors on fixed incomes and
persons with disabilities can afford to
rent or buy. Annually, the City provides
funding assistance to support the HTF’s
operating expenses. Since 2005, the
HTF has provided more than $2.3
million in loans to support projects
located in the City.
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6.17 Housing
Production
Encourage residential development
through infill development and
densification within City Limits and
in designated expansion areas over
new annexation of land.
On-going per the Land Use Element.
Infill development accounts for many of
the housing applications received in the
last five years. Such infill projects that
were approved since 2014 include:
1) Bishop Street Studio (34 units)*
2) 2120 Santa Barbara (69 units)
3) The Connect (78 units)
4) Twin Creeks (94 units)*
5) 71 Palomar (41 units)*
6) San Luis Square (52 units)
7) 790 Foothill (78 units)*
8) Broad Street Collection (32 units)*
9) Iron Works (46 units)*
10) 22 Chorro (27 units)*
Those marked with an (*) include deed-
restricted affordable units.
Additionally, San Luis Ranch was
entitled and annexed into the City; the
plan includes 580 residential units.
Avila Ranch was also approved (part of
the Airport Area Specific Plan) and
includes 720 residential units.
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6.18 Housing
Production
Seek opportunities with other public
agencies 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.
On-going as opportunities emerge.
The City worked with HASLO and
Transitions-Mental Health Association
(TMHA) to develop the 34-unit Bishop
Street Studios project. This project has
been completed and provides housing
for extremely low, very low and low-
income adults with behavior and/or
mental health needs.
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6.19 Housing
Production
Continue to incentivize affordable
housing development with density
bonuses, parking reductions and other
development incentives, including
City financial assistance.
Ongoing. The City has provided
numerous incentives including density
bonuses, parking reductions,
concessions to development standards,
and financial assistance on several
projects that include deed-restricted
affordable housing units. Some of these
projects include:
1) Bishop Street Studios – parking
reduction, City AHFs
2) 790 Foothill – height and setback
concession
3) Broad Street Collection – parking
reduction
4) Iron Works – height and parking
concession, City AHFs
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5) 22 Chorro – height and parking
concession
6) Courtyard at the Meadows – street
yard reduction, City AHFs
6.20 Housing
Production
Continue to financially assist in the
development of housing affordable to
extremely low, very-low, low- or
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.
On-going. The City has facilitated the
development of affordable housing
using State, Federal and local funding
sources. Projects that either received
planning entitlements or were
constructed in the 5th Cycle Housing
Element include:
• Broad Street Place (40 units)
• Tiburon Place (68 units)
• Courtyard at the Meadows (36
units)
• Bishop Street Studios (34 units)
• Iron Works (46 units)
• Broad Street Apartments (6 units)
Program has been extremely effective,
and the City will continue to implement
the program by leveraging its
Affordable Housing Fund in
conjunction with other State, Federal
and local funding sources to increase the
production of affordable housing.
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6.21 Housing
Production
Actively seek new revenue sources,
including State, Federal and
private/non-profit sources, and
financing mechanisms to assist
affordable housing development for
extremely low, very low and low or
moderate income households and
first- time homebuyers.
On-going as opportunities emerge.
During the past 5th Housing Element
Cycle, the City collaborated with
various non-profit housing developers
on new revenue sources for housing
development, including HCD’s
Affordable Housing Sustainable
Communities grant program. The City
also continues to support and
collaborate with the SLO County HTF.
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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.
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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 underutilized and vacant
City-owned property and found that no
City-owned properties were suitable for
housing development.
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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.
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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.
Done. The Land Use Element was
updated in 2015 to include Program 8.6
which identified the General Hospital
site as a Special Planning Area. The
program identifies that the old hospital
building will remain as an office /
treatment facility and lands behind the
hospital building that are inside the
City’s Urban Reserve line will be
designated as Public and a range of
residential uses will be allowed (Low
Density and Medium Density
Residential, residential care use,
transitional care use, and other
residential uses consistent with the
adjacent area). With future
development, the City will seek to
secure permanent protection of the open
space outside of the urban reserve line.
The undeveloped portion of this site on
the southwest side of Johnson Avenue
will remain designated for Public uses.
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6.26 Housing
Production
Continue to update the Affordable
Housing Incentives (Chapter 17.90,
SLOMC) and Zoning Regulations to
ensure density bonus incentives are
consistent with State Law.
On-going. The City’s Affordable
Housing Incentives were updated in
2013 to be consistent with State law.
The City also continues to support and
encourage residential densities for
eligible housing developments up to
80% as now allowable by AB 1763. As
more changes occur, the City will
continue to ensure affordable housing
incentives and Zoning Regulations are
updated accordingly.
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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.
Not Done. 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. Until the LUE is updated, this
program is not for the Housing Element.
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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.
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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 through the AB 1600 fee
study.
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6.30 Housing
Production
Evaluate and consider adopting
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.
On-going. 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).
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6.31 Housing
Production
Consider scaling development impact
fees for residential development
based on size, number of bedrooms,
and room counts.
Done. Completed as a part of the AB
1600 and fee schedule update.
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6.32 Housing
Production
Continue to submit annual Housing
Element progress reports to the State
Department of Housing and
Community Development per
Government Code Section 65400.
On-going. Staff continues to submit the
Housing Annual Progress Report to
HCD by April 1st.
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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.
7.9 Neighborhood
Quality
Continue to implement varied
strategies, such as early notification
through electronic media, website
improvements, 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.
On-going. City follows public noticing
procedures that provide public notice,
including legal notices, sign postings on
the project site, and direct mail. In
addition, the City has implemented e-
notifications where residents,
stakeholders and other interested parties
can voluntarily sign up to receive email
notices for any public meeting of their
choice. The City exceeds State
requirements by contacting individuals
directly who are part of our “interested
party” mailing lists, posting information
at local businesses, posting information
on the City’s website, and Twitter,
Facebook and Instagram accounts, and
using local media such as newspapers,
TV and radio.
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7.10 Neighborhood
Quality
Continue to work directly with
neighborhood groups and individuals
to address concerns. Identify specific
neighborhood needs, problems, trends
and opportunities for improvements.
On-going. The Neighborhood Wellness
Program includes proactive
enforcement of property maintenance
standards, enforcement of the City’s
noise ordinance, and parking
enforcement in the City’s residential
neighborhoods. The enforcement of
property maintenance standards is
handled by one full-time Code
Enforcement Technician within the
Building & Safety Division of the
Community Development Department
that patrols residential neighborhoods
and address observable violations. The
Police Department is responsible for the
enforcement of the noise and unruly
gathering ordinances and the Parking
Division of the Public Works
Department enforces parking
requirements. An important aspect of
the Neighborhood Wellness Program is
a focus on community outreach and
education. Staff participates in various
outreach and education efforts with
neighborhood, student, and business
groups.
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7.11 Neighborhood
Quality
Continue to fund neighborhood
improvements, including sidewalks,
traffic calming devices, crosswalks,
parkways, street trees and street
lighting to improve aesthetics, safety
and accessibility.
On-going. Over the last 5 years, the
City has invested over $6 million within
the areas of Multimodal Transportation
Facilities, Roadway Improvements,
Creek and Flood Protection, Transit and
Transportation Management, Parks and
Recreation, and Open Space. Projects
covered include curb ramps, sidewalk
repairs and replacement, street trees,
graffiti removal, playground, and
crosswalks.
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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 established
ten Neighborhood Parking Districts.
The City has been working on the
creation of demand-based parking
strategies and has plans to update the
2011 Access & Parking Management
Plan. The 2011 plan addresses
neighborhood parking issues and
includes strategies to mitigate the lack of
on and off-street parking.
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7.13 Neighborhood
Quality
Continue the City’s Neighborhood
Services and proactive enforcement
programs to support neighborhood
wellness.
On-going. The City continues to
proactively enforce property
maintenance standards, and respond to
calls regarding the City’s noise
ordinance, and parking in the City’s
residential neighborhoods.
Additionally, City staff host an annual
Neighborhood Forum to update the
public on various topics regarding
neighborhood needs, problems, trends,
and opportunities.
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Goal 8 - Special Housing Needs. Encourage the creation and maintenance of housing for those with special
housing needs.
8.13 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 women and children.
On-going. In October 2018 the 40 Prado
Homeless Services Center (HSC)
opened. The HSC offers all the services
that were previously provided at the
Maxine Lewis Shelter and the Prado
Day Center. Since 2015, $428k of
CDBG monies and $873k of City
General Fund dollars have been
allocated to CAPSLO for ongoing
operational programs to support the
homeless.
City representatives actively participate
on the Homeless Services Oversight
Council (HSOC) which acts as an
advisory body to the County Board of
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Supervisors that serves as a planning
and policy forum on homeless
initiatives, collaboration, support, and
funding.
In 2018 with collaboration from TMHA
and the County Dept. of Social Services,
the City’s Police Department also hired
a social worker to focus on outreach and
preventative engagement with the City’s
most vulnerable populations.
The City continues to host the Homeless
Solutions webpage. This page is
dedicated to keeping the public updated
with all the latest homeless program
initiatives. It includes a donations link to
the United Way website and information
on local homeless programs, services
and documents.
8.14 Special Housing
Needs
Continue the mobile home rent
stabilization program to minimize
increases in the cost of mobile home
park rents.
On-going. The program continues to be
successful in minimizing the mobile
home space rents. Mobile homes are one
of the City's forms of affordable
housing.
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8.15 Special Housing
Needs
Continue to look for opportunities in
specific plan areas suitable for tenant-
owned mobile-home parks,
cooperative or limited equity housing,
manufactured housing, self-help
housing, or other types of housing that
meet special needs.
On-going. The City continues to
support the development of Mobile
Home Parks within all residentially
zoned parcels. The City is currently
collaborating with an applicant to
develop an “aging in place” type
housing development within the Froom
Ranch Specific Plan.
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8.16 Special Housing
Needs
Advocate developing more housing
and refurbishing campus housing at
Cal Poly University.
On-going. The City supports Cal Poly
constructing housing units for students
on campus. In 2018 Cal Poly completed
the construction of a new student
housing development with 1,475 new
beds. Cal Poly's housing programs have
expanded significantly; however
additional on-campus housing is still
needed. The City is currently working
with Cal Poly on their new Master Plan
which includes more on-campus student
housing.
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8.17 Special Housing
Needs
Work with Cal Poly University
Administration to secure designation
of on-campus fraternity/sorority
living groups.
On-going. A draft of the Cal Poly
Master Plan 2035 states that there is an
opportunity to provide specialized
housing for groups such as fraternities,
sororities or other social or academic
organization. The City is currently
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working with Cal Poly on their new
Master Plan.
8.18 Special Housing
Needs
Jointly develop and implement a
student housing plan and "good
neighbor program" with Cal Poly
State University, Cuesta College and
City residents. The program would
seek to improve communication and
cooperation between the City and the
schools, set on campus student
housing objectives and establish clear,
effective standards for student
housing in residential neighborhoods.
On-going. The Student Community
Liaison Committee was established in
1987 and continues to meet monthly.
The Committee, which brings together
Cal Poly, Cuesta College, City and
County staff and community
organizations to promote positive
relations, mutual respect, and improved
quality of life.
As part of the Neighborhood Wellness
Program, City staff from Code
Enforcement, Police, Fire,
Administration, Parking, Utilities, Parks
and Recreation, and Planning meet
quarterly to discuss various topics to
highlight to the community.
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8.19 Special Housing
Needs
Provide public educational
information at the Community
Development Department public
counter on universal design concepts
(i.e. aging in place) for new and
existing residential dwellings.
On-going. The City has a variety of
information available at the Community
Development Department public
counter and online regarding a universal
design concepts. Additionally, City staff
provide public education on a daily basis
through in-person meetings, phone
calls, and email.
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8.20 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.
On-going. Staff continues to support
transitional and supportive housing
facilities in all zones that allow the
development of residential units.
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8.21 Special Housing
Needs
Continue to look for opportunities
(land, retail or commercial space,
motels, apartments, housing units,
mobile home parks) that can be
acquired and converted to affordable
permanent housing and permanent
supportive housing for homeless
persons and families.
On-going. The City continues to work
with its regional partners and local non-
profits to identify vacant, blighted, or
underutilized properties (land, retail or
commercial space, motels, apartments,
housing units, mobile home parks, etc.)
for conversion into affordable
permanent and supportive housing for
homeless persons and families. Staff is
currently collaborating with HASLO on
developing a vacant site for a new
transitional housing project. The site
used to be the location of the Maxine
Lewis Memorial Shelter.
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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.
Not Done. 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.
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8.23 Special Housing
Needs
Encourage the creation of housing for
persons with developmental
disabilities. The City will seek grant
opportunities for housing construction
and rehabilitation specifically
targeted for persons with
developmental disabilities.
On-going. Bishop Street Studios was
completed in 2019 and provides 100%
affordable, stable, permanent housing
and services for adults living with
mental illness. Also, in 2019, the City
granted $330,000 of AHFs to help
TMHA acquire and rehabilitate an
existing 6-unit property to serve as
housing for six of their clients.
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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.
On-going. In October 2018, the 40
Prado Homeless Services Center (HSC)
opened. The HSC combines all the
services that were provided at the
Maxine Lewis Shelter and the Prado
Day Center. In addition, the County is
developing a Medically Assisted
Withdrawal Management (detox) center
adjacent to the HSC. The new facility is
being constructed primarily via the one-
time State Homeless Emergency Aid
Program (HEAP) funding.
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8.25 Special Housing
Needs
Continue to engage the Homeless
Services Oversight Council (HSOC)
and Friends of Prado Day Center
(FPDC) to identify, evaluate, and
implement strategies to reduce the
impacts of homelessness on the City.
On-going. The City continues to
actively participate on the HSOC and
the new Friends of 40 Prado fundraising
group that replaced the FPDC.
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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.
9.6 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.
On-going. The City continues to
support any programs that support
upgrading residential units to be more
sustainable and energy efficient.
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9.7 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.
On-going. The City continues to
educate staff and the public through the
update of the Climate Action Plan
(CAP). Staff anticipates the updated
CAP will be adopted in 2020. During
this process advisory bodies (i.e.
Planning Commission and City
Council) and the public have provided
feedback on the proposed revisions.
Additionally, all projects must comply
with the CALGreen and energy
efficiency standards that are a part of
Title 24 of the California Building Code
(CBC). As part of the application,
applicants are required to fill out a
checklist that identifies energy
conservation measures included in their
projects. The program has been
successful in raising staff and public
awareness and knowledge regarding
energy conservation.
In December of 2018, the City joined
Monterey Bay Community Power
(MBCP). MBCP is an existing
community choice energy program that
serves the counties of Santa Cruz, San
Benito, and Monterey and provides 100
percent carbon free electricity with a
rate savings relative to PG&E.
Continue
9.8 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.
On-going. The City requires solar
shading plans for projects that request
height and/or setback exceptions to
ensure that sufficient solar access is
available to surrounding properties.
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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.
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9.10 Sustainable
Housing, Site
and
Neighborhood
Design
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).
On-going. The 2012 Climate Action
Plan (CAP) includes programs that
incentivize projects that exceed Title 24
energy efficiency standards, requires
new developments to install energy-
efficient appliances, and another that
involves amending the Community
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Design Guidelines to promote various
LID strategies.
Additionally, in December of 2018, the
City joined Monterey Bay Community
Power (MBCP). MBCP is an existing
community choice energy program that
serves the counties of Santa Cruz, San
Benito, and Monterey and provides 100
percent carbon free electricity with a
rate savings relative to PG&E.
9.11 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.
On-going. The Utilities Department
requires that all new construction
projects, that are not exempt, comply
with California’s Green Building
Standards Code: Title 24 Chapter 11
which requires that all permitted
construction projects must recycle
and/or salvage at least 65 % of the waste
generated from the project.
Exempt projects include: Residential
projects under $50,000 and 1,000 square
feet, roofing projects, window
installation, foundation repair, new
pool, hazardous waste cleanup, seismic
ties, and electrical only.
The City also requires that those
structures that are proposed to be
demolished be advertised in the
newspaper and encourages citizens to
either move the structure to a new
location for reuse or use the structure as
salvaged material.
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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.
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9.13 Sustainable
Housing, Site
and
Neighborhood
Design
Consider participating in financing
programs for sustainable home
improvements such as solar panels,
heating and cooling systems, water
conservation and energy efficient
windows.
Ongoing. The City continues to seek
opportunities to support financing
programs to assist homeowners with
improving energy efficiency and reduce
the generation of greenhouse gases in
residential units.
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# Goals Objective (quantified/
qualified) Progress and Evaluation
Continue,
Modify or
Delete
Goal 10 - Local Preference. Maximize affordable housing opportunities for those who live or work in San Luis
Obispo while seeking to balance job growth and housing supply.
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.
On-going. The City and County have a
Memorandum of Understanding
regarding development review of
projects in the unincorporated County
on the City's urban fringe. This MOU
outlines the review process and City
comments regarding impacts to housing
stock with expansion of commercial
projects in areas adjacent to the City.
Modify and
ContinueDe
lete
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.
Implemented/Ongoing. The City
continues to encourage developers to
rent and sell to those who work or live
in the City first before advertising in
outside markets. San Luis Ranch and
Avila Ranch are examples of projects
where the developers, through a
Development Agreement, specified
ways in which they would sell units to
locals first.
Modify and
ContinueDe
lete
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.
On-going. Cal Poly has expanded on-
campus housing and helped offset off-
campus student housing needs. In 2018,
Cal Poly completed the yakʔitʸutʸu
housing community complex. The $198
million project in located on 12-acres at
the south entrance to the campus and
consists of seven three- to five-story
residential buildings containing a total
of 1,475 beds, an adjacent four-level
parking structure, outdoor space for
activities, and laundry facilities.
Delete
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.
On-going. City continues to support Cal
Poly’s efforts to enter public-private
housing partnerships.
Modify and
ContinueDe
lete
Goal 11 - Suitability. Develop and retain housing on sites that are suitable for that purpose.
City of San Luis Obispo Draft Housing Element, October 2020
H23
Prog.
# Goals Objective (quantified/
qualified) Progress and Evaluation
Continue,
Modify or
Delete
11.3 Suitability The City will continue to ensure the
ability of legal, non-conforming uses
to continue where new development is
proposed.
Implemented. The City continues to
uphold the Zoning Regulation
provisions that allow the continued use
of residential on sites that are zoned for
other purposes.
Delete
City of San Luis Obispo Draft Housing Element, October 2020
I1
Appendix I
Implementation Plan
______________________________________________________________________________
This appendix describes the programs that the City will implement during the timeframe of this
Housing Element. The programs are designed to achieve goals and carry out policies listed in
Chapter 3, and to address housing needs and issues described elsewhere in the document. Each
program identifies specific actions to be accomplished, the responsible party, implementation
timeframe, potential resources, and comments on expected results or methodology.
The Implementation Plan addresses a wide range of housing needs and represents a commitment
by the City to address those needs in a responsible manner. The programs are intended to build
upon one another; no single program is perceived as a solution to meeting the City’s housing needs.
The most effective approach is to combine a variety of programs or “tools” to provide incentives
and resources, secure financial and technical assistance, and remove unnecessary impediments to
housing to the maximum extent feasible.
These are uncertain times for cities and counties. The economic resources necessary to implement
some of the more ambitious housing programs may be extremely limited. To the extent such funds
are available; the City intends to use state and federal grants, loans, technical assistance, or other
forms of assistance in combination with local resources. The City intends to implement the
programs in the timeframes outlined below; however, these timeframes must remain somewhat
flexible, allowing earlier or later implementation in response to changing housing needs, resources,
and opportunities.
Appendix I includes a numerical listing of all goals followed by the housing programs to be
implemented to help achieve that goal. The symbol “n/a” is applied to programs that can generally
be implemented as part of regular City staffing and operations, without the need for outside
funding.
City of San Luis Obispo Draft Housing Element, October 2020
I2
Table I - 1: Program Implementation Details
No. Program Responsible
Agency
Priority/
Time
frame
Potential
Resources
Goal 1: Safety
1.5
Continue to IimproveCorrect unsafe,
unsanitary, or illegal housing conditionss,
improve barriers to accessibility, and
energy efficiency, andor unsafeimprove
neighborhoodss annually, by: 1) using
Federal, State, and local housing funds,
such as Community Development Block
Grant Funds, and 2) proactively promoting
neighborhood wellness through Code
Enforcement’s Neighborhood Service
Program.
Community
Development
Department
(CDD): Building
Division &
Housing
Coordinator
On-going
Affordable Housing
Fund, State Grants,
Federal CDBG
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. Code Enforcement staff
shall continue to provide property owners
and tenants with information on how to
rectify violations, who to contact in Code
Enforcement for assistance, and other
resources that may be pertinent to the
citation.
CDD: Code
Enforcement;
City Attorney
On-going General Fund
1.7
Continue to support local and regional
solutions to homelessness by funding
supportive programs services and housing
solutions.
CDD; County
Dept. of Social
Services
On-going
County Emergency
Solutions Grant,
CDBG, General
Fund, Continuum of
Care (CoC) Funds
Goal 2: Affordability
2.5 Continue to manage the Affordable
Housing Fund so that the fund serves as a
sustainable resource for supporting, at a
minimum, 4 new affordable housing
developments during the planning period.
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.
CDD: Housing
Coordinator;
Finance
Department
On-going Affordable Housing
Fund
City of San Luis Obispo Draft Housing Element, October 2020
I3
No. Program Responsible
Agency
Priority/
Time
frame
Potential
Resources
2.6 Continue to rReview existing and proposed
building, planning, engineering and fire
policies and standards every year 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 on an annual basis
within 2-6 months that have been
superseded, are redundant, or no longer
needed.
CDD: Planning
Division
On-going,
annually
make updates
within 2-6
months of
reviewing the
regulations
General Fund
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.
CDD; Public
Works; Utilities
Departments
(Community
Services Branch)
On-going General Fund
2.8 Continue to cCoordinate an annualyearly
public and private sector actions meeting to
discuss and encourage the development of
housing that meets the City’s housing
needs.
CDD: Housing
Coordinator
On-going
annually General Fund
2.9 Continue to aAssist with the issuance of
tax-exempt bonds, tax credit financing, loan
underwriting or other financial tools to help
develop or preserve at least 20 affordable
units annually through various programs.
CDD: Housing
Coordinator;
Finance
Department
On-going
annually
State and Federal
funding programs,
CalHFA
2.10 Consider uUpdateing 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 within two years of adopting the
Housing Element.
CDD: Housing
Coordinator &
Planning
Division
High - July
2022 General Fund
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.
CDD: Housing
Coordinator &
Planning
Division
On-going
Affordable Housing
Fund, State &
Federal funding
programs
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
CDD: Planning
Division On-going General Fund
City of San Luis Obispo Draft Housing Element, October 2020
I4
No. Program Responsible
Agency
Priority/
Time
frame
Potential
Resources
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.
CDD: Planning
Division &
Housing
Coordinator
High – July
2022
General Fund, State
and Federal
Funding Sources
2.14 Continue to support increasing density
bonuses for residential projects densities
above the state density bonus allowance of
35%s for projects that provide housing forto
promote the development of units for
extremely low, very low, and low-income
households.
City Community
Services Branch On-going General Fund
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 Core
and portions of Upper Monterey and Mid-
Higuera Special Focus Areas to support the
production of 50 smaller residential units
(150 to 600 square feet) per year during the
planning period.
CDD: Planning
Division
High – July
2022 SB 2 Grant Funding
2.16 Create and make available to interested
parties an informational packet that
explains SB 35 streamlining provisions and
eligibility within two years of Housing
Element adoption.
CDD: Planning
Division
Medium –
July 2023 General Fund
2.17 In order to provide adequate sites for lower
income households on non-vacant and
vacant sites previously identified in the
Housing Element (Table E-2), the City will,
within one (1) year of the adoption of the
Housing Element Update, allow
developments (including mixed-use
projects) that include at least 20 percent of
the residential units as affordable to lower
income households, by right (no
discretionary review).
CDD: Planning
Division
High –
January 2022 General Fund
2.18 Utilize objective design standards to allow
residential uses by right (no discretionary
review) for those developments (including
mixed-use projects) that include at least 20
percent of the residential units as affordable
to low income households.
CDD: Planning
Division
Medium –
July 2023 General Fund
City of San Luis Obispo Draft Housing Element, October 2020
I5
No. Program Responsible
Agency
Priority/
Time
frame
Potential
Resources
Goal 3: Housing Conservation
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.
CDD: Planning
Division On-going General Fund
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 architecturally
sensitive manner.
CDD: Planning
Division;
Cultural
Heritage
Committee
On-going
Mills Act program,
Historic Surveys &
Historic
Rehabilitation Tax
Credits
3.8 Continue to monitor and track affordable
housing units at-risk of being converted to
market rate housing annually and verify that
tenants are properly noticed and aware of
their rights. Provide resources to support the
Housing Authority, and local housing
agencies, purchase and manage at-risk
units.
CDD: Housing
Coordinator On-going General Fund
3.9 Work annuallying with non-profit
organizations, faith-based organizations, or
the Housing Authority of the City of San
Luis Obispo, the City will to encourage
rehabilitation of residential, commercial, or
industrial buildings to expand extremely
low, very-low, low or moderate income
rental housing opportunities.
CDD: Housing
Coordinator &
Planning
Division
On-going
annually
State and Federal
Grant Sources&
Affordable Housing
Fund
3.10 In order to mitigate the loss of affordable
housing units, replacement housing units
shall be provided for sites identified in the
site inventory when any new development
(residential, mixed-use or non-residential)
occurs on a site that has been occupied by
or restricted for the use of lower-income
households at any time during the previous
five years. This requirement applies to: non-
vacant sites and vacant sites with previous
residential uses that have been vacated or
demolished (see Government Code, section
65583.2, subdivision (g)(3), and
Government Code, section 65915,
subdivision (c)(3)).
CDD: Housing
Coordinator &
Planning
Division
On-going General Fund
City of San Luis Obispo Draft Housing Element, October 2020
I6
No. Program Responsible
Agency
Priority/
Time
frame
Potential
Resources
Goal 4: Mixed-Income Housing
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.
CDD: Planning
Division;
Planning
Commission;
City Council
On-going General Fund
4.6 Amend the 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.
CDD: Housing
Coordinator &
Planning
Division
High – July
2022
State and Federal
Funding Sources,
General Fund
4.7 The City shall support Affirmatively
Further Fair Housing (AFFH) by:
•Facilitating public education and outreach
by providing informational flyers on fair
housing and reasonable accommodation at
public counters and on the City’s website.
Information will be included with utility
billing at least once per year.
•Training staff, elected officials, and
appointees on issues of disparity, structural
racism, and inequality.
•Implementing language standards and
procedures for providing equal access to
City services and programs to all residents,
including persons with limited proficiency
in English.
•Deed-restricting units to provide
affordability and reduce displacement.
•Supporting new technologies and/or
products such as modular housing
construction to reduce costs and increase
access to housing.
•Distributing information regarding tenant
rights and Fair Housing resources as part of
Code Enforcement’s response to housing
code enforcement issues.
CDD: Planning
Division; City
Administration
On-going General Fund
4.8 Continue to distribute information
regarding Fair Housing by providing up to
date information online and brochures at the
front desk, providing educational materials
to tenants, property owners and property
managers, and making public service
announcements (including but not limited
CDD: Planning
Division
On-going
annually General Fund
City of San Luis Obispo Draft Housing Element, October 2020
I7
No. Program Responsible
Agency
Priority/
Time
frame
Potential
Resources
to the City’s News page, social media sites,
and newspaper ads) every year.
Goal 5: Housing Variety and Tenure
5.4 Evaluate opportunities for promotingand
implement “missing middle” housing types
(e.g. duplex, triplex, quadplex, cottages,
etc.) to increase housing options in the City
within three years of adopting the Housing
Element..Evaluate and implement “missing
middle” housing types (e.g. duplex, triplex,
quadplex, cottages, etc.) to increase housing
options in the City within three years of
adopting the Housing Element.
CDD: Planning
Division
Medium –
July 2023
State and Federal
Funding Sources,
General Fund
5.5 Update the Zoning Regulations to allow
mixed-use development within Service
Commercial (C-S) and Manufacturing (M)
zones by right without a use permit within
three one year of the adoption of the
Housing Element. Consider amending the
Zoning Regulations to streamline the
permitting process for mixed-used projects
in commercial zones.
CDD, Planning
Division
HighMedium
– Januaryuly
20223
General Fund
Goal 6: Housing Production
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,
low- and moderate income households, pursuant
to the Affordable Housing Standards.
CDD: Planning
Division;
Planning
Commission;
City Council
On-going General Fund
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.
CDD: Planning
Division; Public
Works: Parking
Division
On-going General Fund
6.12 Continue to evaluate, every two to three
years within the planning period,
opportunities to develop and implement
incentives to encourage additional housing
in the Downtown, Upper Monterey, and
Mid-Higuera Special Focus Areas,
CDD: Planning
Division
High – July
2022Ongoing
every two to
three years
SB 2 Grant
Funding, General
Fund
City of San Luis Obispo Draft Housing Element, October 2020
I8
No. Program Responsible
Agency
Priority/
Time
frame
Potential
Resources
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, as
projects are proposed, to rezone
commercial, manufacturing, or public
facility zoned areas for higher-density, infill
or mixed-use housing, where compatible
with surrounding development. Group
requested rezones so that as many as
possible can be considered consistent with
Government Code §65358, that allows a
general plan to be amended more frequently
than four times during any calendar year
CDD: Planning
Division;
Planning
Commission;
City Council
On-going General Fund
6.14 Continue to provide City resources,
including $40,000 annually for operational
support, thatto support the SLO County
Housing Trust Ffund’s efforts to provide
below-market financing and technical
assistance to affordable housing developers
as a way to increaseto construct or preserve
five affordable housing units per
yearproduction in the City of San Luis
Obispo.
CDD: Housing
Coordinator On-going
Affordable Housing
Fund, State and
Federal Funding
Sources
6.15 Seek opportunities Meet every other year
during the planning period withwith other
public and private agencies to identify
excess, surplus, and underutilized parcels
for residential development.
CDD: Housing
Coordinator &
Planning Division
On-going
annually
State and Federal
Funding Sources,
Affordable Housing
Fund
6.16 Continue to iIncentivize 20 affordable
housing developments per year during the
planning period consistent with SLOMC
Affordable Housing Incentives.
CDD: Planning
Division; Planning
Commission
On-going General Fund
6.17 Continue to fFinancially assist in the
development of 20 housing units per year that are
affordable to extremely low, very-low, low- 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.
CDD: Housing
Coordinator On-going
State and Federal
Funding Sources,
Affordable Housing
Fund
6.18 Actively seek and collaborate with non-profit
housing providers to (jointly) apply for three
new revenue sources each year during the
planning period, including State, Federal and
private/non-profit sources, and financing
mechanisms to financially assist with the
development of housing affordable to extremely
low, very low and low or moderate income
households.
CDD: Housing
Coordinator
On-going
annually
State and Federal
Funding Sources,
Affordable Housing
Fund
City of San Luis Obispo Draft Housing Element, October 2020
I9
No. Program Responsible
Agency
Priority/
Time
frame
Potential
Resources
6.19 Continue to update theReview the Affordable
Housing Incentives (Chapter 17.140, SLOMC)
and Zoning Regulations every two years during
the planning period and update to ensure density
bonus incentives are consistent with State Law.
CDD: Planning
Division On-going General Fund
6.20 Evaluate and consider updateing the Subdivision
Regulations, within three years of Housing
Element adoption, to support small lot
subdivisions, ownership bungalow court
development and other alternatives to
conventional subdivision design
CDD: Planning
Division
Medium -
July 2023
State Funding
Sources, General
Fund
6.21 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.
CDD: Housing
Coordinator On-going General Fund
6.22 Update the City’s municipal code to expand
objective design standards within one year
of the adoption of the Housing Element
Update.
CDD: Planning
Division
High -
January 2022 General Fund
6.23 Update the development review process and
expand the thresholds of each review level
(minor, moderate, and major) to eliminate
or reduce the number of public hearing
required for housing projects within one
year of adopting the Housing Element.
CDD: Planning
Division
High -
January 2022 General Fund
Goal 7: Neighborhood Quality
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.
CDD;
Administration
Department:
City Clerk
Office
On-going General Fund
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.
CDD: Planning
Division & Code
Enforcement;
Police
Department
On-going General Fund
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.
CDD: Public
Works; Parks
and Recreation
Departments
On-going
State and Federal
Funding Sources,
Local Revenue
Measures, General
Fund
7.13 Continue the City’s Neighborhood Services
and Code Enforcement programs to support
neighborhood wellness.
CDD: Code
Enforcement;
Police Dept.:
Neighborhood
On-going General Fund
City of San Luis Obispo Draft Housing Element, October 2020
I10
No. Program Responsible
Agency
Priority/
Time
frame
Potential
Resources
Outreach
Coordinator
7.14 Evaluate and update the Community Design
Guidelines to provide site design standards
for Encourage developments with 110 or
more residential units to include outdoor
amenities such as the following: outdoor
visiting and gathering spaces, places to
exercise or recreate, and spaces reserved for
edible landscape or community gardens.
CDD: Planning
Division On-going General Fund
Goal 8: Special Housing Needs
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 displaced individuals and families.
CDD: Housing
Coordinator;
County Dept. of
Social Services;
City Homelessness
Task Force
On-going CDBG, ESG, CoC
Funding, State and
Federal Funding
Sources, General
Fund
8.12 Continue to enforce the mobile home rent
stabilization program to minimize increases in
the cost of mobile home park space rents.
City Attorney On-going General Fund
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.
CDD; Public
Works &
Utilities
Department
On-going General Fund
8.14 Advocate developing more housing and
refurbishing campus housing at Cal Poly
University.
CDD: Planning
Division;
Administration
Department
On-going General Fund
8.15 Work with Cal Poly University Administration
to secure designation of on-campus fraternity /
sorority living groups.
CDD: Planning
Division;
Administration
Department
On-going General Fund
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 communication and
cooperation between all groups about student
housing in residential neighborhoods.
CDD: Code
Enforcement;
Police Dept.:
Neighborhood
Outreach
Coordinator &
Officers
On-going General Fund
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.
CDD On-going General Fund
8.18 Review Amend the Zoning Regulations and
amend the Zoning Regulations within one
year of Housing Element adoption to ensure
compliance with: 1) the Supportive
Housing Streamlining Act (AB 2162) to
allow supportive housing a use-by-right in
zones where multi-family and mixed uses
CDD: Planning
Division
High -
Januaryuly
20221
General Fund
City of San Luis Obispo Draft Housing Element, October 2020
I11
No. Program Responsible
Agency
Priority/
Time
frame
Potential
Resources
are permitted, including nonresidential
zones permitting multifamily uses, if the
proposed development meets specified
criteria; and 2) AB 101, to allow to allow
homeless shelters, transitional housing and
supportive housing (lLow Bbarrier
Nnavigation Ccenters) by-right in all
residential zones, areas zoned for mixed-
uses, and nonresidential zones permitting
multifamily uses. without a conditional use
permitto 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
four vacant, blighted, or underutilized
properties (land, retail or commercial space,
motels, apartments, housing units, mobile
home parks) during the planning period for
conversion into affordable permanent and
supportive housing for homeless persons
and families.
CDD: Housing
Coordinator
On-going General Fund
8.20 Actively Continue to seek and collaborate
with non-profit housing providers to
(jointly) apply for two revenue sources each
year during the planning period, for State,
Federal, and local funding sources to
encourage and financially assist with the
development of housing for persons with
developmental disabilities.
CDD: Housing
Coordinator On-going
Affordable Housing
Fund, State and
Federal Funding
Sources
8.21 Continue to coordinate monthly 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.
CDD: Housing
Coordinator;
Police
Department
On-going
monthly General Fund
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.
CDD: Planning
Division On-going General Fund
8.23 Update Zoning Regulations, within two years of
Housing Element adoption, to be consistent with
the Employee Housing Act; including: 1) an
update of Table 2-1 to allow single-unit
dwellings without a Conditional Use Permit
within the Open Space and Conservation (C/OS)
zone and employee housing consisting of no
more than 36 beds in a group quarters, or 12 units
or separate rooms or spaces designed for use by
a single-family or household within the C/OS
CDD: Planning
Division
High – July
2022 General Fund
City of San Luis Obispo Draft Housing Element, October 2020
I12
No. Program Responsible
Agency
Priority/
Time
frame
Potential
Resources
and AG zones, and 2) remove Chapter 17.148 -
High-Occupancy Residential Use Regulations.
Goal 9: Sustainable Housing
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.
CDD: Planning &
Building
Divisions;
Administration
Department,
Office of
Sustainability
On-going General Fund
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.
CDD: Planning
Division On-going General Fund
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).
CDD: Planning &
Building
Divisions;
Administration
Department,
Office of
Sustainability
On-going General Fund
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.
CDD: Building
Division;
Utilities
Department
On-going General Fund
9.10 Continue to support programs for sustainable
home improvements such as solar panels,
heating and cooling systems, water
conservation and energy efficient windows.
CDD: Building
& Planning
Divisions; Office
of Sustainability
On-going General Fund
Goal 10: Local Preference
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.
CDD: Planning
Division; County:
Planning and
Building
On-going n/a
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.
CDD: Planning
Division On-going n/a
City of San Luis Obispo Draft Housing Element, October 2020
L1
Appendix J
Definitions
______________________________________________________________________________
Affordable Housing [“Deed Restricted”]. Housing that meets the rental or sales price standards
as established by the City and published annually in the Affordable Housing Standards. Such
housing is made available for very-low, low and moderate income persons or households, and
subject to deed restrictions or other instrument that ensure the housing remains affordable for a
predetermined period.
Accessory Dwelling Unit (ADU). An attached or detached dwelling unit that provides complete
independent living facilities for one or more persons and is located on a lot with another primary,
single-unit dwelling. An ADU includes permanent provisions for living, sleeping, eating, cooking
and sanitation on the same lot as the primary unit. An ADU may be structured as one efficiency
unit, as defined in of the Health and Safety Code Section 17958.1, and/or (2) a manufactured home,
as defined in of the Health and Safety Code Section 18007, among other formats.
Accessory Dwelling Unit, Attached. An ADU that is either attached to (by a minimum of one
shared wall), or completely contained within, the primary existing space of the single-unit
dwelling unit or existing accessory structure.
Accessory Dwelling Unit, Detached. An ADU that provides new residential square footage
not attached or sharing any walls with the primary existing single-unit dwelling.
Assisted Housing. Housing units, including multi-family or single-family, whose construction,
financing, sales prices, or rents have been subsidized by Federal, State, or local housing programs,
and units developed pursuant to local inclusionary housing and density bonus programs.
Below-market-rate Housing. Housing that is sold or rented at prices less than the fair market
value or prevailing market rent for the unit, and the financing of housing at less than prevailing
interest rates.
Boarding House. A boarding house is a residence or dwelling, other than a motel or hotel, wherein
two or more rooms, with or without individual or group cooking facilities, are rented to three or
more individuals under separate rental agreements or leases, either written or oral, whether or not
an owner, agent or rental manager is in the residence. Meals may also be included. This use type
includes convents, monasteries, and student dormitories, but does not include “Fraternities and
Sororities,” which are separately defined, nor does it include a fraternity or sorority that is not in
good standing with the California Polytechnic University. Notwithstanding this definition, no
single-unit dwelling operated as a group home pursuant to the Community Care Facilities Act,
which is otherwise exempt from local Zoning Regulations, shall be considered a boarding house.
Building. Any structure used or intended for sheltering or supporting any use or occupancy.
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Build-out. That level of urban development characterized by full occupancy of all developable
sites within the City’s Urban Reserve, in accordance with the General Plan; the maximum level of
development anticipated by the General Plan by the year 2035. Build-out does not assume that
each parcel is developed with the maximum floor area or dwelling units possible under zoning
regulations.
Community Development Block Grant (CDBG). A grant program administered by the U.S.
Department of Housing and Urban Development (HUD) on a formula basis for entitlement
communities and urban counties, and by the State Department of Housing and Community
Development (HCD) for non-entitled jurisdictions. CDBG funds are used by cities and counties
for land purchase, housing rehabilitation and community development, public services and
facilities, economic development, and other purposes that primarily benefit persons or households
with incomes less than 80 percent of County median income.
Covenants, Conditions and Restrictions (CC&Rs). Restrictions or requirements that are placed
on a property and its use by a property owner, usually as a condition of subdivision approval.
CC&Rs are a deed restriction and “run with the land,” and are legally binding.
Density Bonus. An increase in the allowed base density applied to a residential development
project. The increase allows the development of more dwellings than a property’s zoning would
otherwise allow and is usually in exchange for the provision or preservation of affordable housing
or housing amenity.
Developmental Disability. A disability that originates before an individual becomes 18 years old,
continues, or can be expected to continue indefinitely, and constitutes a substantial disability for
that individual.
Density, Residential. The number of permanent dwellings per net acre, measured in Density
Units, as further described in Chapter 17.70.040 of the Zoning Regulations.
Density Unit
A density unit is defined as a two-bedroom dwelling. In the AG, C/OS and R-1 zones, each
dwelling, of any number of bedrooms, counts as one density unit. In all other zones, dwellings
with different bedroom numbers have density unit values as follows:
a. Studio and one-bedroom dwellings less than 600 square feet = 0.50 unit;
b. One-bedroom dwellings between 601 and 1,000 square feet = 0.66 unit;
c. Two-bedroom dwelling = 1.00 unit;
d. Three-bedroom dwelling = 1.50 units;
e. Dwelling with four or more bedrooms = 2.00 units
Director. The Director of the City’s Community Development Department, or another staff
person authorized by the Director to act on his or her behalf.
Dormitory. A building used as a group quarters for students, as an accessory use for a college,
university, boarding school, or other similar institutional use.
City of San Luis Obispo Draft Housing Element, October 2020
L3
Downtown Core. The City’s central business district, comprising the most diverse mix of
residential, commercial, governmental, and public uses, and defined by the “C-D” zone boundary
as shown in the Zoning Map.
Downtown Planning Area. The central area of the City generally defined by the boundaries
formed by State Highway 101, the Union Pacific Railroad Right-of-Way, and High Street, and the
intersections thereof, as described in the General Plan Land Use Element.
Elderly or Senior Housing. Housing designed to meet the needs of and enforceably restricted to
occupancy by persons 62 years of age and older or, if more than 150 units, persons 55 years of age
and older.
Enforceably Restricted. Refers to housing that is deemed affordable under the City’s Affordable
Housing Standards and that is subject to deed restrictions, affordable housing agreements or other
mechanisms to ensure the housing remains affordable for a prescribed period.
Expansion Area. An area located outside City limits but within the Urban Reserve and designated
for future urban development, as further described in the General Plan Land Use Element text and
map.
Fair Market Rent. The rent, including utility allowances, determined by the United States
Department of Housing and Urban Development (“HUD”) for purposes of administering the
Section 8 Housing Choice Voucher Program.
Fraternity House (or Sorority House). A residence for college or university students who are
members of a social or educational association, and where such an association holds meetings or
gatherings.
Granny Flat. See “Accessory Dwelling Unit.”
Historic Property. A property, including land and building, determined by the City to have
archaeological, historical, or architectural significance as described in the Historic Preservation
Program Guidelines, and listed on the Contributing Properties List or Master List of Historic
Resources.
Homeless Shelter. A church, public building, or quasi-public facility that provides emergency or
temporary shelter for more than 31 days in any six-month period to homeless individuals and/or
groups. These accommodations may include temporary lodging, meals, laundry facilities, bathing,
counseling, and other basic support services.
Household. All persons, including those related by birth, marriage or adoption and unrelated
persons, who occupy a single dwelling.
Housing or “Dwelling” Unit. A building, a modular home, a mobile home, a cooperative, or any
other residential use considered real property under State law and on a permanent foundation, with
provisions for sleeping, cooking and sanitation, and with permanent connections to utilities.
City of San Luis Obispo Draft Housing Element, October 2020
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Infill Housing. Development of housing on vacant lots within the City limits on property zoned
for such uses.
Jobs-Housing Balance. A ratio describing the number of jobs compared with dwelling units in a
defined geographic area, and a measure of the adequacy of the housing stock to meet community
needs.
Live-Work or Work-Live Unit. An integrated housing unit and working space, occupied and
utilized by a single household in a structure, either single-unit or multi-unit, and may include only
commercial activities and pursuits that are compatible with the character of a quiet residential
environment. May be designed or structurally modified to accommodate joint residential
occupancy and work activity, and which includes: (1) complete kitchen space and sanitary
facilities in compliance with the City building code and (2) working space reserved for and
regularly used by one or more occupants of the unit.
Low Barrier Navigation Centers. Housing First, low-barrier, service-enriched shelter focused
on moving people into permanent housing that provides temporary living facilities while case
managers connect individuals experiencing homelessness to income, public benefits, health
services, shelter, and housing (California Gov. Code §65660).
Mixed-Use Development. A development that combines both nonresidential and residential uses,
where the residential component may be live/work and is typically located above or behind the
commercial.
Multi-family Dwelling. A dwelling that is part of a structure containing one or more other
dwellings, or a non-residential use. An example of the latter is a mixed-use development where
one or more dwellings are part of a structure that also contains one or more commercial uses (retail,
office, etc.). Multi-family dwellings include: duplexes, triplexes, fourplexes (buildings under one
ownership containing two, three or four dwellings, respectively, in the same structure); apartments
(five or more units under one ownership in a single building); and townhouse development (three
or more attached dwellings where no unit is located above another unit. It does not include
Accessory Dwelling Units).
Municipal project. A development project designed, funded, or carried out by the City of San
Luis Obispo and described as a “capital project” in the City’s Financial Plan.
Parcel. An area of land defined by boundaries set by the Tax Assessor of the County of San Luis
Obispo, roughly equivalent to the meaning of a “lot” for development purposes.
Regional Housing Needs Allocation (RHNA). A determination of a locality’s housing needs by
the local Council of Government and based on State law, that takes into account various factors
such as population growth, employment growth, vacancy rates, housing removals, and
concentration of poverty.
City of San Luis Obispo Draft Housing Element, October 2020
L5
Rehabilitation. The repair, preservation, and or improvement of housing; and for historically
designated structures, work done according to rehabilitation standards established by the U.S.
Secretary of the Interior and described in the Secretary of the Interior’s Standards for the Treatment
of Historic Properties and related documents.
Residential. Land designated in the General Plan and Zoning Regulations for dwellings and
accessory uses.
Sensitive Site. A site determined by the Community Development Director, Planning or
Architectural Review Commission, or City Council, to have special characteristics or limitations,
such as historic significance, creekside location, or visual prominence, requiring more detailed
development review than would otherwise be required for other similarly zoned lots nearby.
Single-family Dwelling, Detached. A dwelling occupied or intended for occupancy by only one
household, and that is structurally and physically separate from any other such dwelling.
Single Room Occupancy (SRO) Unit. A single-room dwelling, typically 80-250 square feet in
floor area, with a sink and a closet, with communal or individual facilities for cooking and
sanitation.
Supportive Housing. A dwelling unit occupied by a target population, with no limit on length of
stay, that is linked to onsite or off-site services that assist the supportive housing resident(s) in
retaining the housing, improving their health status, and maximizing their ability to live and, when
possible, work in the community (California Gov. Code §65582[f]).
Tenure. The mode or status of residency, whether by renting or owning real property.
Tiny House - Moveable. A residential dwelling unit that is accessory to a principal residential
dwelling unit located on the same parcel of land, which provides complete independent living
quarters for one household, and meets the following conditions:
1. Is towable by a bumper hitch, frame-towing hitch, or fifth-wheel connection and is
designed not to and cannot move under its own power;
2. Is no larger than allowed by California State law for movement on public highways; and
3. Is a detached self-contained residential dwelling unit which includes facilities and
functional areas for living, sleeping, eating, cooking, and sanitation.
Transitional Housing. Buildings configured as rental housing developments, but operated under
program requirements that require the termination of assistance and recirculating of the assisted
unit to another eligible program recipient at a predetermined future point in time that shall be no
less than six months from the beginning of assistance (California Gov. Code §65582[h]).
Underutilized Site. A site that has the land area capacity to accommodate additional dwelling
unit(s) while meeting all General Plan policies and all zoning regulations, including setbacks,
building height and lot coverage requirements without the application of variances.
Universal Design. Universal design is the design of products and environments to be usable by
City of San Luis Obispo Draft Housing Element, October 2020
L6
all people, to the greatest extent possible without the need for adaptation or specialized design.