HomeMy WebLinkAboutItem 7a. Regional Housing and Infrastructure Plan Item 7a
Department: Community Development
Cost Center: 4008
For Agenda of: 7/11/2023
Placement: Business
Estimated Time: 30 minutes
FROM: Derek Johnson, City Manager
Prepared By: Teresa McClish, Housing Policy and Programs Manager
SUBJECT: REGIONAL HOUSING AND INFRASTRUCTURE PLAN
RECOMMENDATION
It is recommended that the City Council provide support and receive and file Regional
Housing and Infrastructure Plan (HIP) as an ongoing commitment to be engaged in the
2020 San Luis Obispo Countywide Regional Compact previously referenced as part of
the City’s General Plan 6th Cycle Housing Element.
REPORT-IN-BRIEF
The Regional Housing and Infrastructure Plan (HIP) (Attachment A, Summary;
Attachment B, Full Text) is intended to help accelerate housing development where it
makes the most sense given regional conditions and community readiness. The HIP
creates an inventory of infrastructure projects needed to enable housing, identifies
funding opportunities to implement infrastructure priorities, studies housing affordability
in the region, and develops foundational information for the future 2027 Regional Housing
Needs Assessment (RHNA) and other future regional programs. The HIP is the next
necessary collaborative action between the seven Cities, County and SLOCOG along the
region’s path to addressing the region’s growing housing and infrastructure needs.
POLICY CONTEXT
The proposed Regional Housing Infrastructure Plan (HIP) is in alignment with the City’s
Major City Goal for Housing and Homelessness in that it promotes accessibly connected
housing production and the expansion of housing options:
Housing and Homelessness - Support the expansion of housing options for
all, and continue to facilitate the production of housing, including the
necessary supporting infrastructure, with an emphasis on affordable and
workforce housing as well as accessibly connected development.
Collaborate with local non-profit partners, non-governmental agencies, the
county, the state, and federal governments to advocate for increased
funding and implementation of comprehensive and effective strategies to
prevent and reduce homelessness.
Page 333 of 465
Item 7a
Additionally, chapter four of the City’s 6th Cycle General Plan Housing Element includes
the San Luis Obispo Countywide Regional Compact adopted by each jurisdiction in the
county in 2020. It includes a series of regional goals to unlock potential for an adequate
supply of housing and infrastructure that supports economic prosperity of the region .
The regional compact (also included in Attachment B4) includes eight policies from which
to choose to support the Regional Compact vision and goals in a way that works for its
jurisdiction and community:
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. A ccessory
Dwelling Units, etc.).
The HIP is intended to signify another milestone on a path to regional collaboration and
fulfilling the Regional Compact that’s included in the City’s General Plan 6th Cycle Housing
Element.
DISCUSSION
Page 334 of 465
Item 7a
Background
Meeting the housing needs of the San Luis Obispo region is a challenge shared by all
eight local land use jurisdictions (the seven Cities and County of San Luis Obispo
(County), San Luis Obispo Council of Governments (SLOCOG), organizations who
develop and build housing, as well as local community members. This challenge is larger
than any one entity can solve alone and will require the collective actions of all local
partners. With this great challenge also comes an opportunity for regional collaboration.
Regional partners recognized the need to work collaboratively to solve the critical
shortage of infrastructure resources and housing attainability in the region. And so, in
2019, the County allocated resources to launch a new regional collaborative initiat ive.
Since its inception, the Regional Housing & Infrastructure Plan (HIP) has been part of a
phased approach intended to address three major goals:
● Foster regional collaboration (action taken in 2020);
● Align land use planning documents that support the City’s General Plan (action
taken in 2020); and
● Create the HIP (draft under review via today’s item).
Components of the Reginal Housing Infrastructure Plan (HIP)
The full summary of the process and components of the HIP are included in Attachments
A and B. Table 1 below includes what each component is and potential uses for agencies
depending on individualized budgets and goals. The HIP data included in components
1-4 in Attachments A and B, include Housing Highlights, Project Inventories, a mapping
tool and Housing Efficiency Analysis, and demonstrate that for the City of San Luis
Obispo, significant progress in housing projection continues, balancing access, and water
and wastewater capacity for the community and in satisfying state RHNA goals.
Table 1 HIP Components
HIP Components What Each Component Is Possible Individual
Agency Use
1. Housing Highlights
Communication tool:
Understanding the need for
housing, affordability, and
opportunities
Voluntary use of a
communication tool to
convey housing challenge
and community call to action
2. Data and Project
Inventory
Infrastructure barriers to
housing
Recognizes community’s
needs and connects to
regional inventory
3. HIP Mapping Tool
Living strategic analysis
tool used to show the
interrelation between
housing and infrastructure
Visual tool connecting each
community’s plans to overall
regional scale
Page 335 of 465
Item 7a
HIP Components What Each Component Is Possible Individual
Agency Use
4. Housing Efficiency
Analysis
Housing Efficient Areas in
HIP
Recognizes community’s
plans and serves as
leverage for future
infrastructure funding
sources
5. Infrastructure
Prioritization
Region’s highest priority
projects to unlock housing
Identify importance of
community’s needs in
supporting regional housing
supply
6. Funding Strategies
Assessment
Funding the region could
pursue for priority
infrastructure projects
Identifies possible funding
sources that each
community or partners could
pursue to cover funding gaps
7. Affordable-by-Design
Study
Menu of possible policies to
increase housing
attainability
Voluntary use of menu of
options for possible policies
to implement
Significantly, HIP Component 5 provides a comprehensive prioritization of regional
infrastructure projects (transportation and water and wastewater capacity projects) that
would accelerate new housing development. Eighty infrastructure projects are identi fied
and ranked as high, medium or low priority throughout the region based on three factors:
1) If the project is needed for new housing;
2) Benefit/cost (i.e., investment cost per additional potential housing units served);
3) Whether there are significant barriers to development.
Notably, a total of 26 projects are included and ranked for the City of San Luis Obispo to
promote housing supply: 23 projects are prioritized as High, and an additional 3 projects
are ranked as Medium given the regional criteria as shown in Attachment B1. None of
the City’s listed projects are ranked as Low. All of the projects are transportation related
except for one water/wastewater project ranked High: addressing capacity constraints on
sewer conveyance network, additional water storage tanks and water transmission main
needed.
HIP component 6 describes a funding strategies assessment underway that would
identify funding sources that would reasonably implement the prioritized projects.
Agencies are encouraged to review the assessment and consider the project’s benefit for
housing production and contribution to regional housing efforts.
Page 336 of 465
Item 7a
Finally, HIP component 7 includes preliminary findings of an Affordable-by-Design study
that was undertaken to evaluate housing affordability characteristics for each of the seven
cities and unincorporated areas to identify the persistent and prevalent question if units
can be built to meet low or moderate income categories without being income or rent -
restricted.
Initial findings from the study include:
● Design helps, but does not guarantee affordability.
● Market rate rental housing is close to affordability targets in some areas, but
regulatory changes are necessary for most areas of the county.
● Only manufactured housing met target price points for new for-sale housing.
● Factors that make for-sale housing more affordable in other areas may not
translate to this region’s current market.
Each component is described in more detail in Attachments A and B.
It should be noted that while each agency can plan for housing and remove housing
barriers, agencies do not build or develop housing. Nothing in the HIP mandates action
by any of the jurisdictions or commits a jurisdiction to change its General Plan. However,
voluntary opportunities for action that could accelerate the development of needed
housing in the regional are discussed and identified, some examples of which are
included below. The City, through previous and continuing implementation of the major
city goal for housing and homelessness has implemented many of the actions identified
and through continuing work programs (including those for missing middle housing) and
the capital improvement program, additional progress is anticipated.
● Agency(ies) may consider pursuing funding opportunities (i.e. grants) identified for
a priority infrastructure project to cover funding gaps.
● Agency(ies) may consider implementation of affordable -by-design policies
appropriate to each unique community and its needs.
● Agency(ies) may consider programmatic changes to improve approval process
timelines such as directing staff to identify ways to improve response time for
housing project approval or coordinating with other agencies to align and
streamline processes.
● Agency(ies) may consider updating its analysis approach to prioritizing the
community’s needed infrastructure projects in order to most impactfully increase
housing supply.
● Agency(ies) may consider using the HIP to help justify the benefit of a community’s
priority infrastructure project towards increasing the region’s future housing supply,
making it more competitive in a number of State and Federal funding programs.
● SLOCOG and agencies may consider using the HIP as a foundation for negotiating
where the region’s housing needs are best met (e.g. future RHNA cycle
allocations).
Page 337 of 465
Item 7a
Importantly, the last two bullets listed above relate to use of the HIP for increasing the
competitiveness of projects for state and federal funding, and in proactively planning for
the next RHNA allocations that will start in the next couple of years. In this way, the
acknowledgement of City progress to date as well as high prioritization ranking of many
projects in the City, is considered beneficial going forward as the City continues to
implement City goals for housing and homelessness in response to the housing c risis.
Previous Council or Advisory Body Action
On March 17, 2000, City Council adopted Resolution No. 11100 (2020 Series) endorsing
the San Luis Obispo Countywide Regional Compact.
On November 17, 2020, the City Council adopted Resolution No. 11190 (2020 Series)
approving and adopting a Negative Declaration of Environmental Impact and the General
Plan 6th Cycle Housing Element.
Public Engagement
Public Engagement for the HIP is described in detail in Attachment C that describes the
Stakeholder Process implemented for the HIP.
CONCURRENCE
On June 13, 2023, a presentation was made by the REACH/Koble Collaborative, Inc.
team to the City’s staff leadership team who received the presentation, who had the
opportunity to ask questions and make comments on the plan . While staff assessment
of the HIP, including the currently ranked projects, is underway, Public Works, Parks and
Recreation Community Development and Utilities staff concur with recommending City
Council’s support of the HIP and its objectives.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in
this report because the action does not constitute a “Project” under CEQA Guidelines
Sec. 15378.
FISCAL IMPACT
Budgeted: Yes/No Budget Year: 2023-24
Funding Identified: Yes/No
Page 338 of 465
Item 7a
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ $ $ $
State
Federal
Fees
Other:
Total $0 $0 $0 $0
There is no fiscal impact for stating support of the HIP. As noted above, the City has
already taken action to accelerate the production of housing. Further actions by the City
may have financial impacts, and those will be considered and described in future agenda
reports, as necessary.
ALTERNATIVES
1. Receive presentation and provide comments supporting the Regional Housing
and Infrastructure Plan as a recommitment to the 2020 San Luis Obispo Countywide
Regional Compact, and direct staff to return to the Council in the fall of 2023 to discuss
implementation of components of the plan.
2. Receive presentation and provide comments not in support of the Regional
Housing and Infrastructure Plan.
ATTACHMENTS
A - Summary of Regional Housing and Infrastructure Plan
B - Draft Regional Housing and Infrastructure Plan (HIP)
B1 – HIP Appendix A: Draft List of HIP Infrastructure Priorities
B2 – HIP Appendix B: Affordable-by-Design Study Preliminary Information
B3 – HIP Appendix C: Funding Strategies Assessment Preliminary Information
B4 – HIP Appendix D: Regional Compact and Housing Element Regional Chap ter
C - HIP Stakeholder Process
Page 339 of 465
Page 340 of 465
ATTACHMENT A – SUMMARY OF SAN LUIS OBISPO COUNTYWIDE
REGIONAL INFRASTRUCTURE PLAN (HIP)
This staff report is organized into three main sections:
1. Prior Actions to Formalize Regional Collaboration for Housing
2. Creation of the Regional Housing and Infrastructure Plan
3. Today’s Action & Future Growth Steps
Section 1. Prior Actions to Formalize Regional Collaboration for Housing
1.1. Fostering Regional Collaboration: Regional Compact (2020)
The seven Cities, County and SLOCOG adopted the San Luis Obispo Cou ntywide
Regional Compact in early 2020 (see Appendix A4). The Regional Compact is an
aspirational document that sets goals for future recommended plans and actions among
the local agencies. It “establishes a united regional framework to unlock the potential to
develop an adequate supply of housing and resilient infrastructure that support our
economic prosperity.” By adopting the Regional Compact, the seven Cities, County and
SLOCOG embraced six shared regional goals listed below and supported aligning
resources and policies to make progress towards acting on them.
Table 1. Regional Compact Goals
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
We believe that our Region’s unique agricultural resources,
open space, and natural environments play a vital role in
Page 341 of 465
Resources sustaining healthy local communities and a healthy economy,
and therefore should be purposefully protected.
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.
These six regional goals created a path for compatibility among the eight local land use
planning agencies’ Housing Elements, built a basis for the HIP, and drove future
recommendations for collaborative actions. Signatories to the Regional Compact
committed to acting as partners in aligning actions with these regional goals and agreed
to develop the first HIP. By taking collaborative actions to further these goals, this region
can solve critical issues and become a statewide leader in sustaining vibrant
communities.
1.2 Aligning Land Use Planning Documents: Housing Elements (2020)
The eight local land use planning agencies (the seven Cities and County) were each
required to update their jurisdiction's Housing Elements to reflect how local communities
are planning for the State’s 6th Cycle Regional Housing Needs Allocations (2020 - 2028).
The Housing Elements were submitted to the Housing and Community Development
(HCD) by December 2020. As a step towards the regional goal of aligning land use
planning documents, each agency’s Housing Element included a regional chapter that
included an initial list of aspirational regional policies that, if implemented, could further
the Regional Compact goals (see Appendix A4). The regional chapter also recognized
the importance of ongoing collaboration moving forward and pointed to future
collaborative efforts to be identified in the HIP. It was the first time all eight land use
planning agencies included a regional chapter in the Housing Elements –an important step
for aligning land use planning documents.
Section 2. Creation of the Regional Housing and Infrastructure Plan
The final goal of the regional collaborative initiative was developing the HIP. Due to
emergency response needs, the County put the HIP on hold during t he COVID-19
Pandemic. In June 2022, the HIP was revived with the establishment of a Memorandum
of Understanding between the County and SLOCOG, under which SLOCOG took over
as the project manager of the effort and sub -recipient of the County’s Senate Bill 2
Page 342 of 465
Planning Grant Program funding award for HIP development. With Senate Bill 2 grant
funding sunsetting in September 2023, the HIP needed to move at an accelerated pace.
Making progress on the region’s strategic goals for addressing housing and infrastructure
needs can only be achieved through the actions of many stakeholders; therefore,
communication and stakeholder engagement were critical pieces of the HIP development.
SLOCOG contracted with REACH and Koble Collaborative, Inc. to conduct the HIP’s
communications and stakeholder engagement. The primary outreach goals were:
● Foster ongoing collaboration and buy-in among private and public stakeholders
● Remind government of the Regional Compact, laying the groundwork for HIP effort
● Build public sentiment in support of solutions and regional planning efforts
The stakeholder groups and meetings were designed to convene diverse perspectives
and have honest conversations about what each organization can and needs to do to
realize those goals, across sectors and industries. Key stakeholder groups included:
Regional
Managers /
Key Staff
Housing
Action Team
Builders &
Developers
Housing
Advocacy
Group
City & County
Elected Officials
30 attendees,
3 meetings
15-20
attendees,
monthly
meetings
20-35
attendees,
3 meetings
15-20
attendees,
2 meetings
40 elected
officials
1 meeting per
agency
County of SLO,
7 Cities (+
Santa Maria),
SLOCOG
Leadership
County of SLO,
7 Cities,
SLOCOG
Planning/Com
m Dvpmt. Staff
Builders,
Engineers,
Developers,
Econ. Dvpmt.,
Architects,
Real Estate,
etc.
Nonprofit
builders,
Home Builders
Assoc,
Chambers,
etc.
Seven City
Councils
County of SLO
Board
SLOCOG Board
HIP Steering Committee
10 attendees, 3 meetings
City Manager, Elected Officials, County Regional Planner, Developer, Low Income
Lender, Architect, Engineer, Advocate, Water Resources and Cal Poly met
collaboratively to consider ways to integrate feedback from all stakeholder perspectives
Page 343 of 465
These stakeholder groups helped to review and shape the HIP. On May 19, 2023,
SLOCOG published the Draft Regional HIP, including Appendices (Attachments A and
A1-A4) and a Draft HIP Mapping Tool. There are seven major components of the HIP
(listed in Table 2 and further described below). These components intertwine and build
upon one another. As with each prior phase of the regional collaborative efforts to address
the housing and infrastructure shortage, stakeholder engagement was key.
Table 2. HIP Components
HIP Components What Each Component Is Possible Individual Agency
Use
1. Housing Highlights
Communication tool:
Understanding the need for
housing, affordability, and
opportunities
Voluntary use of a
communication tool to
convey housing challenge
and community call to action
2. Data and Project
Inventory
Infrastructure barriers to
housing
Recognizes community’s
needs and connects to
regional inventory
3. HIP Mapping Tool
Living strategic analysis
tool used to show the
interrelation between
housing and infrastructure
Visual tool connecting each
community’s plans to overall
regional scale
4. Housing Efficiency
Analysis
Housing Efficient Areas in
HIP
Recognizes community’s
plans and serves as
leverage for future
infrastructure funding
sources
5. Infrastructure
Prioritization
Region’s highest priority
projects to unlock housing
Identify importance of
community’s needs in
supporting regional housing
supply
6. Funding Strategies
Assessment Funding the region could
pursue for priority
Identifies possible funding
sources that each
community or partners could
Page 344 of 465
HIP Components What Each Component Is Possible Individual Agency
Use
infrastructure projects pursue to cover funding gaps
7. Affordable-by-Design
Study
Menu of possible policies to
increase housing
attainability
Voluntary use of menu of
options for possible policies
to implement
2.1 HIP Component 1–Housing Highlights
A communication tool designed to unify the region’s focus on the challenges and
successes that local agencies, the building and development community and other
stakeholders face related to the housing supply needs. This document will serve to
reinforce the commitment to the Regional Compact and expand on opportunities each
stakeholder has to address housing needs within their area of control and span of
influence. The draft Housing Highlight document will be available by June 28, 2023. The
final document will be included with the final HIP in July 2023.
2.2 HIP Component 2–Data and Project Inventory
The HIP analyzes the transportation, water and wastewater infrastructure barriers to
housing development. This HIP element included compiling infrastructure and housing
data from across individual agencies as briefly described in Table 3 below:
Table 3. Major HIP Inputs
Housing
Data
Proposed residential developments of all income categories were
collected from Planning and Community Development staff of the seven
Cities and the County in 2021. This data includes specific plans,
proposed residential and mixed-use projects projected to be built
between now and 2045. Residential development that has been
completed or is near completion was removed from the HIP analysis.
Transportati
on Data
The 2023 Regional Transportation Plan included a list of 350+
transportation investments submitted by Public Works staff of the seven
Cities and County and transit providers. Transportation infrastructure
was studied using the Transportation Efficiency Analysis (TEA). The
TEA identified transportation barriers to housing production and was
used in the HIP analysis.
Page 345 of 465
Water/
Wastewater
Data
The HIP inventory is based on responses from 44 water and wastewater
agencies, local capital improvement project lists, 2021 Regional Water
Infrastructure Resiliency Plan findings, and information from the
County’s Water Resources team. Available, detailed GIS based data
was limited. However, to the extent needs are known, key infrastructure
projects, estimated costs and timing were included in the HIP analysis.
Additional
Contextual
Data
The HIP analysis provides the data that connects infrastructure and
housing on a regional scale for the first-time. When planning for
housing, land conditions are carefully considered. To provide a fuller
picture, flood risk, sensitive habitat, open space, prime farmland, and
fire risk were all included as additional reference information.
However, these additional datasets were not used to remove or
prioritize infrastructure projects from the HIP list, but simply to provide
additional context.
The HIP is a living tool and can adapt as new information becomes available. Future
updates to the HIP may incorporate two key datasets:
● Water data update: The County’s Master Water Report update is underway, which
may be leveraged to provide updated water capacity information for a future HIP
update.
● Economic data: It is anticipated that a future HIP update will incorporate economic
data. A concurrent effort, led by REACH, is underway which may be leveraged to
provide economic/jobs information for a future HIP update.
2.3 HIP Component 3–HIP Mapping Tool
The HIP Mapping Tool was created to display the GIS analysis and foster future
collaboration. It is an interactive tool, compiling the complex data and inventoried projects
from across the region. The mapping tool makes it easier to visualize connections
between infrastructure and housing, see project priorities, and quickly access more
information about each community’s priority projects and housing efficient areas, within a
regional context. This component is completed and included in the draft HIP.
2.4 HIP Component 4–Housing Efficiency Analysis
The Housing Efficiency Analysis looks at three efficiency factors: (1) transportation
access, (2) water capacity and (3) wastewater capacity. By analyzing these efficiency
factors, housing efficient areas were identified as efficient, potential or limited. Any
infrastructure projects located in an area deemed “efficient” or “potential” moved on to the
Infrastructure Prioritization element. All projects located in areas deemed “limited”
Page 346 of 465
housing efficiency were removed from further analysis. There were 440 infrastructure
projects collected as part of the data inventory. Of those, 18% (80 projects) were located
within Housing Efficient Areas (i.e. areas deemed “efficient” or “potential”). This
component is completed and included in the draft HIP.
2.5 HIP Component 5–Infrastructure Prioritization
The premise of the HIP is to help accelerate new housing development, so the current
prioritization factors relate solely to the amount of proposed housing that benefits from a
community’s infrastructure project. The 80 infrastructure projects identified through the
processes described in HIP Components 2-4 were ranked as high, medium or low priority
based on three factors: (1) if the project is needed for new housing, (2) benefit/cost (i.e.
investment cost per additional potential housing units served), and (3) whether there are
significant barriers to development. The total estimated cost for all 80 HIP projects is over
$1 billion, as shown in Table 4.
Table 4: Draft HIP Priority Projects Summary
Estimate
($ Millions)
Projects
Estimate for all HIP Projects $ 1,015 80
High $ 348 54
Medium $ 385 10
Low $ 281 16
This component is completed and included in the draft HIP. Details of each community’s
infrastructure priorities can be found in the HIP’s Appendix A (Attachment A1). Table 5
includes a summary of infrastructure priority projects summarized by sub-region.
Page 347 of 465
Table 5. Priority Projects by Subregion
2.6 HIP Component 6–Funding Strategies Assessment
SLOCOG contracted with BKF Engineers to conduct a Funding Strategies Assessment.
The Funding Strategies Assessment is currently underway and seeks to identify funding
sources that can reasonably implement water, wastewater and transportation
infrastructure priorities included in the HIP (for all high, medium and low priorities). This
component is underway, but not completed yet. The HIP’s Appendix C (Attachment A3)
includes preliminary information; however, the draft assessment is expected in July 2023
will include a project-by-project detailed breakdown covering funding requirements,
potential funding sources, projected grant funding, and residual funding gap.
Local agencies will be encouraged to review the assessment and pursue funding
opportunities for priority infrastructure projects in order to voluntarily contribute to the
regional housing effort in a manner that best fits within their agency’s goals.
2.7 HIP Component 7–Affordable-by-Design Study
SLOCOG contracted with ECONorthwest to conduct the Affordable-by-Design (ABD)
Study. The ABD Study is currently underway and will evaluate housing affordability
characteristics for the seven Cities as well as unincorporated areas. The intent is to
identify whether housing units in this region can be built to meet low to moderate income
RHNA categories (as rentals or for-purchase) without being income- or rent-restricted.
Initial findings include:
● Design helps, but does not guarantee affordability.
● Market rate rental housing is close to affordability targets in some areas, but
regulatory changes are necessary for most areas of the county.
● Only manufactured housing met target price points for new for-sale housing.
● Factors that make for-sale housing more affordable in other areas may not
translate to this region’s current market.
The ABD Study notes that there are generally four factors that come together in the
housing market to produce lower-cost housing, including: (1) simple design with lower-
Page 348 of 465
cost materials, (2) lower cost locations, (3) efficient production, and (4) smaller units with
higher density. Due to the limited findings of housing affordability, the ABD Study includes
development of a simple menu of policy options that could help to incentivise ABD units
in the region. This component is underway, but not completed. The HIP’s Appendix B
(Attachment A2) includes preliminary information; however, the draft study is expected in
July 2023.
Recognizing that there is no single solution to the challenge of affordability, the
forthcoming menu of policy options will be provided for each local agency to consider.
Local agencies will be encouraged to adopt what fits their community’s needs in order to
voluntarily contribute to the regional housing effort in a manner that best fits within their
agency’s goals.
Section 3. Today’s Action & Future Growth Steps
On June 7, 2023, the SLOCOG Board of Directors directed SLOCOG staff (via the HIP
engagement consultant team, REACH and Koble Collaborative, Inc.) to present this item
to member jurisdictions for comment and seek general support of regional collaboration
moving forward. The seven City Councils and County Board of Supervisors will receive a
presentation on the HIP and provided an opportunity to support the HIP between June 27
- August 8, 2023. SLOCOG Board of Directors will consider adoption of the HIP on August
2, 2023.
3.1 Recommended Action
Today’s recommended action signifies a recommitment to the Regional Compact by
taking the next step in its implementation, creation of the HIP. Pending discussion today,
it is recommended that the City Council support the HIP.
It is worth emphasizing that the recommended action recognizes that there is no “one
size fits all” when it comes to this region’s planning and that while local agencies plan for
housing, they do not build or develop housing. Therefore, nothing in the HIP mandates
action by any of the Cities or the County, it simply offers voluntary opportunities for action
that could accelerate the development of needed housing in the region. Implementation
relies on each agency’s voluntary actions moving forward, such as:
● Agency(ies) may consider pursuing funding opportunities identified for a priority
infrastructure project to cover funding gaps.
Page 349 of 465
● Agency(ies) may consider implementation of affordable-by-design policies
appropriate to each unique community and its needs.
● Agency may consider programmatic changes to improve approval process
timelines such as directing staff to identify ways to improve response time for
housing project approval or coordinating with other agencies to align and
streamline processes.
● Agency may consider updating its analysis approach to prioritizing the
community’s needed infrastructure projects in order to most impactfully increase
housing supply.
● Agency may consider using the HIP to help justify the benefit of a community’s
priority infrastructure project towards increasing the region’s future housing supply,
making it more competitive in a number of State and Federal funding programs.
● SLOCOG and agencies may consider using the HIP as a foundation for negotiating
where the region’s housing needs are best met (e.g future RHNA cycle
allocations).
3.2 Future of the HIP
Since 2019, this region’s stakeholders have taken incremental steps to build a strategic,
unified regional collaboration to address housing and infrastructure needs. These
incremental steps led to the draft HIP before the City Council today.
As stated before, the housing, infrastructure and economic challenges that the region
faces are larger than any one entity can solve alone and will require the collective actions
of all local partners. The HIP is the first of its kind, and it is intended to be a living
document. The HIP’s future implementation and use are wholly dependent on the
voluntary actions of many–the seven Cities, County, SLOCOG, organizations who
develop and build housing, as well as local community members.
Pending adoption of the HIP, SLOCOG is committed to: updating the data in the HIP
Mapping Tool in sync with the Regional Transportation Plan/Sustainable Community
Strategies development’s public processes; using the HIP as a factor in future grant
programming cycles; and leveraging the HIP as a foundational tool during the next RHNA
cycle.
As stated throughout Section 2, the HIP offers tools and information related to strategic
actions and priorities that can make the largest impact on accelerating housing supply.
The City of San Luis Obispo City Council is encouraged to take voluntary actions aligned
Page 350 of 465
with the HIP, considering what will best fit their unique community’s vision and this
agency’s goals. Through these voluntary actions, this agency, along with other key
stakeholders, can voluntarily contribute to fulfilling the Regional Compact goals and
creating a more vibrant and livable region.
Page 351 of 465
Page 352 of 465
Page 353 of 465
1 | H I P
ACKNOWLEDGEMENTS PAGE
Page 354 of 465
2 | H I P
CONTENTS
HIP Summary .................................................................................................................................................... 4
Data and Project Inventory ........................................................................................................................... 6
Housing ..................................................................................................................................................... 7
Water & Wastewater .............................................................................................................................. 7
Transportation ......................................................................................................................................... 7
Bonus Layers ............................................................................................................................................ 8
Housing Efficiency Analysis ............................................................................................................................ 8
Infrastructure Prioritization ........................................................................................................................... 8
Findings ........................................................................................................................................................ 10
Future Data Considerations ................................................................................................................ 12
HIP Mapping Tool .......................................................................................................................................... 14
Affordable-By-Design Study ........................................................................................................................ 15
Rental Preliminary Findings ................................................................................................................ 16
For-Sale Preliminary Findings ............................................................................................................. 18
Market Conditions ................................................................................................................................. 19
Funding Strategies Assessment ................................................................................................................. 20
Housing Highlights ........................................................................................................................................ 21
Stakeholder Engagement Strategy ........................................................................................................ 21
Regional Housing Success Stories ......................................................................................................... 23
Next Steps ....................................................................................................................................................... 23
Appendix .......................................................................................................................................................... 23
Appendix A: Draft List of HIP Infrastructure Priorities ........................................................................ 23
Appendix B: Affordable-by-Design Study Preliminary Information ................................................ 23
Appendix C: Funding Strategies Assessment Preliminary Information ........................................ 23
Appendix D: Regional Compact & Housing Element Regional Chapter ....................................... 23
Appendix E: Additional Housing Data July 2023 ................................................................................. 23
Page 355 of 465
3 | H I P
FIGURES
Figure 1: HIP Elements ................................................................................................................................... 5
Figure 2: Draft HIP Priority Projects Summary .......................................................................................... 5
Figure 3: Data Inventory Sources ................................................................................................................. 6
Figure 4: HIP Mapping Process .................................................................................................................... 8
Figure 5: HIP Analysis Process ...................................................................................................................... 9
Figure 6: Draft HIP List Summary ............................................................................................................... 10
Figure 7: Priority Projects by Community ................................................................................................. 11
Figure 8: Multijurisdictional Projects by Priority ..................................................................................... 11
Figure 9: Priority Projects by Subregion ................................................................................................... 12
Figure 10: Future Data Considerations by Community ........................................................................ 13
Figure 11: Future Data Considerations by Subregion ........................................................................... 13
Figure 12: San Luis Obispo County’s Rent and Sale Price Limits (May 2022) .................................. 15
Figure 13: Feasibility of Rental Prototypes by Subregion ..................................................................... 17
Figure 14: Key Takeaways from Financial Feasibility Analysis (Rental) .............................................. 17
Figure 15: Market Conditions for Lower-Cost Housing ........................................................................ 19
Figure 16: Public Sector and ABD Market Conditions ............................................................................ 20
Figure 17: HIP Stakeholder Process ........................................................................................................... 22
Page 356 of 465
4 | H I P
HIP SUMMARY
The Regional Housing & Infrastructure Plan (HIP) is a collaborative action plan between nine
local jurisdictions in response to the San Luis Obispo region’s growing housing and
infrastructure shortage. The HIP is intended to help accelerate housing development where it
makes the most sense given regional conditions and readiness. The HIP inventories
infrastructure barriers to housing, identifies funding to implement infrastructure needs, and
develops foundational information for the future 2027 Regional Housing Needs Assessment
(RHNA).
In 2018, the County of San Luis Obispo recognized the need to work regionally in solving the
critical shortage of infrastructure resources and housing attainability in San Luis Obispo
County. This challenge is larger than any one jurisdiction can solve alone. In January 2019 the
County Board of Supervisors approved the kick off of this effort. Since inception, the HIP has
always been a phased approach with the goals of regional collaboration, strategic action
planning, and aligning land use planning documents.
The Regional Compact (April 2020)
The County, seven Cities, and San Luis Obispo Council of Governments (SLOCOG) approved
the first major milestone of the HIP - the San Luis Obispo Countywide Regional Compact. The
Regional Compact is an aspirational document that sets the tone and goals for future
recommended plans and actions among the local agencies. It establishes a united regional
framework to unlock the potential to develop an adequate supply of housing and resilient
infrastructure that support our economic prosperity. It recognizes that people, water,
transportation, connectivity, and housing form the foundation of the San Luis Obispo region’s
healthy, livable communities and thriving economic opportunity.
Housing Element Alignment (June 2020)
The County and the seven Cities were each required to update their jurisdiction's Housing
Elements to reflect how local communities are planning for the State’s 6th Cycle Regional
Housing Needs Allocations through 2028. The Housing Elements were submitted to the
Housing and Community Development (HCD) in December 2020. As part of the Housing
Element update process, the regional approach section was developed to showcase the
ongoing commitment of each agency to the HIP collaboration. This section presents a regional
vision and policies focused specifically on fostering regional collaboration to plan and develop
housing and supportive infrastructure. It was the first time all seven jurisdictions included a
regional approach chapter in their required housing elements.
Regional Housing and Infrastructure Plan (2022-2023)
Put on hold during the Pandemic, the HIP was revived in June 2022 with the establishment of a
Memorandum of Understanding between the County of San Luis Obispo and SLOCOG.
SLOCOG became the project manager of the effort. With Senate Bill 2 funding sunsetting in
September 2023, the HIP began moving at an accelerated pace. There are seven elements of
Page 357 of 465
5 | H I P
the HIP and they are listed in Figure 1: HIP Elements. These elements intertwine and build
upon one another.
Figure 1: HIP Elements
HIP Element Informs
Data and Project Inventory Infrastructure barriers to housing
Housing Efficiency Analysis Housing Efficient Areas in HIP
Infrastructure Prioritization Region’s highest priority projects to unlock housing
HIP Mapping Tool Living strategic analysis tool used to show the interrelation
between housing and infrastructure
Affordable-by-Design Study Menu of possible policies to increase housing attainability
Funding Strategies Assessment Funding the region could pursue for priority infrastructure
Housing Highlights Communication tool: Understanding the need for housing,
affordability, and opportunities
There were 430 infrastructure projects collected as part of the data inventory. Of those, 18%
(78 projects) were located within Housing Efficient Areas. The 78 projects were ranked using a
three-tiered prioritization process based on potential new housing units served. The estimated
cost for all 78 HIP projects is a little under one billion dollars. About one third of the projects
are water related with the remaining being transportation improvements. The estimates for
each prioritized category are relatively similar around $300 million.
Figure 2: Draft HIP Priority Projects Summary
Estimate
($ Millions) Projects
Estimate for all HIP Projects $ 919 78
High $ 323 53
Medium $ 315 9
Low $ 281 16
HIP 2023+
The HIP is the first of its kind, and it is intended to be a living document. For the last five years,
collaboration has continued to build, and these incremental steps have allowed the region to
make progress in addressing the monumental challenges of the housing and infrastructure
shortage. Next steps to follow stakeholder guidance during Summer 2023 Outreach.
Page 358 of 465
6 | H I P
DATA AND PROJECT INVENTORY
The HIP analyzes the transportation, water, and wastewater infrastructure barriers to housing
development. Figure 3: Data Inventory Sources, provides the source details on the data used in
the HIP analysis.
Figure 3: Data Inventory Sources
Data Inputs
Transportation
Housing
Water &
Wastewater
Flood Risk
Sensitive Habitat
Open Space
Prime Farmland
Fire Risk
7 Cities & County Planning Staff (Land Use
Model, 2022 Transportation Efficiency Analysis
(TEA), 2020 Housing Elements, Developer
Updates
Data Sources
44 water & wastewater entities surveyed,
Community Improvement Plans reviewed
7 Cities & County Public Works Staff, 2023 RTP
Projects List, 2022 TEA
Federal Emergency Management Agency’s
“Flood Insurance Rate” map
California Department of Fish and Wildlife
“Biogeographic Information Observation
System (BIOS)”
California Protected Areas Database and the
California Conservation Easement Database,
2023
Farmland Mapping and Monitoring Program
(FMMP) 2018
CALFIRE High Fire Hazard Severity Zones
(2023), Local Jurisdictions GIS teams
Page 359 of 465
7 | H I P
Housing
Proposed residential developments within the seven cities and unincorporated county were
collected from planning staff in 2021. This data includes specific plans, proposed residential
and mixed-use projects projected for to be built between now and 2045. Residential
development that has been completed or near completion was removed from the HIP analysis.
Water & Wastewater
In early January 2023, SLOCOG staff contacted the 44 water and wastewater agencies found in
the 2021 Regional Water Infrastructure Resiliency Plan. Five initial questions were asked to the
agencies:
1. Is your agency fulfilling its water/wastewater service demand?
2. Do you have capacity to serve additional housing units?
3. Is your agency experiencing any infrastructure limitations or does it have any
infrastructure needs?
4. Have they been planned for?
5. Is there a cost estimate for these improvements?
The data collected includes the findings of the 2021 Regional Water Infrastructure Resiliency
Plan, agency responses, local capital improvement project lists, and information from the
County of San Luis Obispo’s Water Team. Water and wastewater service districts were used as
water boundaries. Detailed GIS based data from these agencies is limited and water capacity
data will be informed by the County’s Master Water Report Update. However, infrastructure
projects, estimated costs, and timing were all collected. In 2023, forty-five water and
wastewater projects were collected from the agencies.
Transportation
Transportation infrastructure was studied in the Transportation Efficiency Analysis (TEA) which
the SLOCOG Board approved in April 2022. The TEA identified transportation barriers to
housing production which resulted in a list of transportation projects that were prioritized as
either land use necessitated or land use beneficial. Land use necessitated projects were
transportation projects required for new housing development. These projects are considered
TEA priority projects because they are needed to accelerate housing development. Land use
beneficial projects are transportation projects that are not required for housing development
but improve the transportation efficiency of an area. Of the 350+ transportation investments
contained within in the 2023 Regional Transportation Plan (RTP), 64 transportation
investments were identified as TEA projects. The San Luis Obispo Regional Transit Authority
(RTA) provided details on transit projects and additional improvements needed to best serve
additional housing development. The transportation infrastructure list was further refined in
the HIP analysis and prioritized differently.
Page 360 of 465
8 | H I P
Bonus Layers
The HIP analysis provides the data that connects infrastructure and housing on a regional scale
for the first-time. The 2023 effort is also the first phase of the analysis. When planning for
housing, land conditions carefully considered. To provide a fuller picture, flood risk, sensitive
habitat, open space, prime farmland, and fire risk were all included as additional reference
information. These were not used to remove infrastructure projects from the HIP list but are
there to provide additional context.
HOUSING EFFICIENCY ANALYSIS
The HIP Infrastructure Analysis looks at three efficiency factors: transportation access, water
capacity, and wastewater capacity. By combining the three efficiency factors, housing efficient
areas were identified. This is graphically represented in Figure 4: HIP Mapping Process. Any
infrastructure projects located in the “efficient” or “potential” mapped areas moved on to the
prioritization phase. All areas and projects that were considered “limited” were removed from
further analysis. The Communities of Shandon, Avila Beach, and Cambria were removed from
HIP analysis since they did not meet the efficiency criteria.
Figure 4: HIP Mapping Process
There were 430 infrastructure projects collected as part of the data inventory. Of those, 18%
(78 projects) were located within a Housing Efficient Area. The 78 projects moved on to the
prioritization phase. The flow of the analysis can be seen in Figure 5: HIP Analysis Process
INFRASTRUCTURE PRIORITIZATION
After stakeholder outreach in February and March 2023, a three-tiered approach was selected
to prioritize projects. Projects were labeled as high, medium, or low depending on three
factors: if the project supports new housing, the benefit/cost (project cost per total potential
Page 361 of 465
9 | H I P
housing units within community), and barriers to development. Barriers to development
include instances such as a building moratorium. These barriers are outside the controls of the
HIP and slow housing development. The entire analysis and prioritization process can be seen
in Figure 5.
Figure 5: HIP Analysis Process
LIMITED
Missing 2 of the 3
efficiency factors –
limited capacity for
housing acceleration
Located in Job Cluster
Include any Infrastructure
Needs in HIP
Future Add-ins:
•Job clusters data
•Master Water Report data
•Transportation
Access Factors:
•1 mile from
interchange
•½ mile from a bike way
•½ mile from bus stop
•Has water capacity
•Has wastewater
capacity
EFFICIENT POTENTIAL
Future Add-ins:
•Job clusters data
•Master Water Report
data
Missing 1 of the 3
efficiency factors
High Medium
Needed to support
new housing
Limited barriers to
development
Low
Outside barriers to
development that
would likely delay or
prohibit
development
Low Benefit/Cost
Needed to support
new housing
Limited barriers to
development
Located in Jobs Cluster
Housing Efficient Areas (HEA) Analysis
Considers 3 efficiency factors: (1) transportation access, (2) water capacity, (3) wastewater capacity
High Benefit/Cost Moderate Benefit/Cost
Needed to support
new housing
Combine HIP Projects from Efficient & Potential HEA
into one list and prioritize
HIP Project Prioritization
Considers: (1) if project is needed for new housing, (2) Benefit/Cost (investment cost per additional
potential housing units served), (3) barriers to development
Include any
infrastructure needs
that would help make
area efficient
Page 362 of 465
10 | H I P
WATER
$296M
TRANSPORTATION
$618M
Infrastructure projects were divided into two lists, water and transportation, and then
prioritized. It was concluded that transportation projects, in general, could be built at various
stages of housing development. Whereas, housing cannot be built without adequate water
distribution and collection infrastructure. Each list was sorted by highest benefit/cost. The total
funding need for the list was divided by three to categorize projects as high, medium, or low.
The premise of the HIP is to help accelerate housing development, so the current prioritization
factors relate solely to the total amount of proposed housing. In the future, other factors like
jobs-housing balance factors and proposed housing unit type could be considered.
Findings
The draft HIP list contains 78 infrastructure projects with an estimated cost of nearly one
billion dollars in need. As seen in Figure 6: Draft HIP List Summary, about one third of the
needed infrastructure investments are water-related (supply & wastewater) and two-thirds are
transportation-related. Interestingly, each priority category (high, medium, low) are relatively
similar at around $300 million. However, the cost of nine medium ranked projects is equivalent
to 53 high priority projects.
Figure 6: Draft HIP List Summary
Figure 7: Priority Projects by Community breaks down the total number of HIP priority projects,
the total investment needed for each proposed housing unit, and the total estimate
investment needed by community. Within the 78 total projects, three are listed as
multijurisdictional projects including Central Coast Blue, the Regional Transit Authority
Cashless Fare System Conversion, and the North County Transit Charging Facility. In Figure 7,
these are listed as a separate row and are not included individually in the "HIP Projects"
column for each community. However, multijurisdictional project costs are included in the
community's total investment needed. The number of multijurisdictional projects by priority
can be seen in Figure 8.
Estimate
($ millions) Projects
Total Estimate $ 919 78
High $ 323 53
Medium $ 315 9
Low $ 281 16
WATER $ 301 19
TRANSPORTATION $ 618 59
Page 363 of 465
11 | H I P
Figure 7: Priority Projects by Community
Community
Total
Proposed
Dwelling
Units
HIP
Projects High Medium Low
Total Investment
needed per
proposed unit
Total Estimated
Investment
Needed ($
millions)
Multijurisdictional* 3 2 1 $ 95
Arroyo Grande 600 1 1 $ 227,254 $ 136
Atascadero 722 2 1 1 $ 23,734 $ 17
Grover Beach 624 4 3 1 $ 85,920 $ 54
Morro Bay 120 1 1 $ 183,368 $ 22
Paso Robles 4,959 17 16 1 $ 37,055 $ 184
Pismo Beach 297 $ 61,179 $ 18
San Luis Obispo 6,171 26 23 3 $ 43,197 $ 267
County 2,221 22 6 3 13 $ 77,286 $ 172
Cayucos 7 2 1 1 $ 1,185,714 $ 8
Los Osos - 3 3 $ - $ 15
Nipomo 1,351 6 4 1 1 $ 25,171 $ 34
Oceano 4 1 1 $ 950,000 $ 4
San Miguel 152 1 1 $ 269,737 $ 41
Santa
Margarita 514 1 1 $ 2,918 $ 2
Templeton 193 7 1 1 5 $ 341,647 $ 66
Cal Poly 2,780 2 2 $ 17,986 $ 50
Total Projects 15,714 78 53 9 16 $ 58,547 $ 920
Priority Category Total Cost Estimate ($
millions) $ 323 $ 315 $ 281
Figure 8: Multijurisdictional Projects by Priority
Community Multijurisdictional HIP
Projects High Medium Low
Arroyo Grande1,2 2 1 1
Atascadero2,3 2 2
Grover Beach1,2 2 1 1
Morro Bay2 1 1
Paso Robles2,3 2 2
Pismo Beach1,2 2 1 2
San Luis Obispo2 1 1
County2,3 2 2
The 3 multijurisdictional projects include the following: Central Coast Blue1, Cashless Fare System Conversion2, North
County Charging Facility3
Page 364 of 465
12 | H I P
Ninety-nine percent of the region’s population lives in four out of five subregions: North
County, Central County, North Coast, and South County. Both North and Central County have
29 HIP projects. Even though projects in these two regions make up the majority of the HIP list,
North County and Central County combined make up 81% of the proposed new housing units
in the region.
Figure 9: Priority Projects by Subregion
Subregion Total Proposed
Dwelling Units
HIP
Projects High Medium Low
Total Investment
needed per
proposed unit
Total
Estimated
Investment
Needed
($ millions)
North County 6,540 29 20 3 6 $ 47,401 $ 310
Central County 6,171 29 25 3 1 $ 51,693 $ 319
North Coast 127 6 0 1 5 $ 354,331 $ 45
South County 2,876 13 7 2 4 $ 85,535 $ 246
The draft list can be viewed in Appendix A: HIP Project List.
Future Data Considerations
Creating balanced communities is one of the six 2020 Regional Housing Compact goals. The
2023 Sustainable Communities Strategy defines a jobs-housing balanced community as
A community where residents can both live and work. With jobs and housing in
close proximity, vehicle trips and commute times reduce and active transportation
and transit use increase. These balanced communities also provide a broad mix of
housing options to accommodate households with a range of incomes.
As a proactive measure, the jobs-housing balance of communities was analyzed using live/work
percentages. A live/work percentage is the total number of employees living and working in the
city or community boundaries divided by the total workers living in that boundary. In future
iterations of the HIP, jobs-housing balance could be integrated through the live/work
percentage and additional job cluster data as mentioned in Figure 5: HIP Analysis Process. The
data displayed in
Figure 10 and Figure 11 was not used to prioritize projects in the 2023 HIP. The information is
for reference purposes only. This information is included since it relates to goals found in the
2020 Regional Housing Compact, HIP stakeholder interest, and or relates to the 2023
Affordable-by-Design Study. The 2023 Affordable-By-Design Study has shown that units within
the multi-family category are more aligned units in the low- and moderately-priced income
Page 365 of 465
13 | H I P
categories. Understanding the proposed multi-family percentage of each community provides
better insight on how the region will fulfill the needs of working households.
Figure 10: Future Data Considerations by Community
Community
Number of Total
Proposed
Dwelling Units
% of Multi-
family units
proposed
Live Work
Percentage
Arroyo Grande 600 18% 14%
Atascadero 722 75% 21%
Grover Beach 624 81% 9%
Morro Bay 120 47% 21%
Paso Robles 4,959 42% 28%
Pismo Beach 297 30% 12%
San Luis Obispo 6,171 58% 41%
County 2,221 25%
Cayucos 7 0% 13%
Los Osos - 0% 11%
Nipomo 1,351 34% 9%
Oceano 4 100% 4%
San Miguel 152 0% 3%
Santa Margarita 514 10% 2%
Templeton 193 19% 12%
Total 15,714
Source: Longitudinal Employer-Household Dynamics (LEHD) 2019, SLOCOG GIS
Figure 11: Future Data Considerations by Subregion
Subregion
Number of Total
Proposed
Dwelling Units
% of Multi-family
units proposed
Live Work
Percentage
North County 6,540 42% 40%
Central County 6,171 58% 44%
North Coast 127 44% 27%
South County 2,876 41% 27%
Source: Longitudinal Employer-Household Dynamics (LEHD) 2019, SLOCOG GIS
Page 366 of 465
14 | H I P
HIP MAPPING TOOL
The HIP Mapping Tool was created to display GIS analysis and foster future collaboration. The
tool was created using ArcGIS Experience Builder, ArcGIS Online, and ArcGIS Storymaps. Users
have the ability to pan around the map in the "Explore" tab and turn map layers on and off.
The "Project List" tab allows the user to browse through HIP projects categorized by
transportation or water projects and is color coded by priority category. When a project is
selected on the list, the map will zoom to the project. The user may also click on projects from
the map to view a pop-up showing the name, description, and estimated cost. The "Story" tab
of the tool gives a summary of the HIP and provides the four-step process of how the analysis
was carried out in GIS. Individual layers are shown along with project tables.
Page 367 of 465
15 | H I P
AFFORDABLE-BY-DESIGN STUDY
The Affordable-by-Design (ABD) Study evaluates housing affordability characteristics for the
seven incorporated Cities and unincorporated San Luis Obispo County. The intention of the
ABD study is to show certain units (built without financial assistance or deed restrictions) as
either low- or moderate-income units in annual Housing and Community Development RHNA
reports. For purposes of the ABD Study, “affordable by design” (ABD) is defined as new housing
that is not income- or rent-restricted, but where typical market rents or sales prices would be
affordable to low or moderate-income households (earning 50-120% of Area Median Income).
The San Luis Obispo County’s published rent and sale price limits by income level define the rent
and price range affordable at this income level as seen in Figure 12.
Figure 12: San Luis Obispo County’s Rent and Sale Price Limits (May 2022)
Page 368 of 465
16 | H I P
The ABD Study includes the following approach:
1. Identify common physical characteristics for ABD housing
2. Interviews with local housing developers
3. Consider whether ABD housing examples from other regions could meet ABD
criteria in SLO County’s market
4. Financial feasibility analysis of illustrative “prototypical” development examples
5. Identify regulatory barriers to development to ABD housing
6. Highlight potential policy measures to support ABD housing
EcoNorthwest used development “prototypes” to highlight characteristics of housing that could
potentially meet the Study’s ABD definition. These are prototypical developments informed by (or
extrapolated from) actual development. Each development prototype is a specific combination of
key characteristics, such as number of units and configuration (e.g., detached, attached side-by-
side, stacked), Lot size / density, height, unit size and parking. In May 2023, preliminary findings
were presented to five stakeholder groups. The following information provides a brief summary
and more preliminary information can be viewed in Appendix B: Affordable-by-Design Study
Preliminary Information. The final report will be completed in July for SLOCOG Board
consideration in August.
Rental Preliminary Findings
On the rental side of new development (within the last 5 years), some new apartments are
affordable at a moderate-income level. This may include some mixed-income buildings but 1-
bedroom units are most likely to be affordable whereas no 3-bedroom units are categorized as
affordable. Design helps but does not guarantee affordability. Most of the buildings that fit
within the ABD definition are 3-story, they have a smaller average unit sizes, but not all small
units are affordable to moderate-income households.
EcoNorthwest looked at examples from other housing markets within California, Washington,
and Oregon to add a few possibilities to a financial feasibility analysis. These protypes included:
A. 3-story walk-up apartments—standard
• Larger units (~880 sf average)
• Typical density, parking ratio, and landscaping
B. 3-story walk-up apartments—compact
• Smaller units (~620 sf average)
• Higher density, lower parking ratio, less landscaping
C. 4-story micro-unit apartments
• Very small units (~300 sf, shared kitchens, individual kitchenettes)
• Very high density, no parking, no landscaping
Page 369 of 465
17 | H I P
Figure 13: Feasibility of Rental Prototypes by Subregion
The financial feasibility analysis uses a metric called “return on cost” (ROC), which reflects the
income potential of the completed development0F
1 divided by the total cost of development.
This ratio is often used as an initial indicator of development feasibility for rental
developments, as it provides a preliminary indication of whether the completed property will
provide competitive financial returns that could attract investors and meet loan underwriting
requirements. More data on the Market Assumptions can be found in Appendix B: Affordable-
by-Design Study Preliminary Information.
Figure 14: Key Takeaways from Financial Feasibility Analysis (Rental)
1 Net Operating Income (NOI), the revenue after accounting for vacancy and operating expenses.
Page 370 of 465
18 | H I P
For-Sale Preliminary Findings
In the last five years, only manufactured housing in manufactured home parks met target price
points for new for-sale housing using County calculations. This does not factor in the lot cost
associated with manufactured home parks. There are few small detached homes that came
close and could potentially meet the City of San Luis Obispo’s affordability standards since they
calculate income limits differently. Looking at examples from other housing markets:
A. Small detached units
• ~350-800 square feet units
• Shared yards with clustered parking
• Smallest units may be affordable at close to 120% of AMI in that market
• Affordability: Comparable Units in SLO region exceed target price
B. Small condo units
• ~325-600 square feet units
• Little or no on-site parking
• Can be affordable to Moderate Income households in portions of some high-
cost regions
• Feasibility: May not be viable in SLO region’s market
C. Simple condo development
• ~600-1000 square feet units
• Little or no on-site parking with few shared amenities
• Can be affordable to Moderate Income households in portions of some high-
cost regions.
• Feasibility: May not be viable in SLO region’s market
D. Smaller townhouse units
• ~1,000-1,600 square feet units
• Can be affordable to Moderate Income households in portions of some high-
cost regions
• Affordability: Comparable units in SLO region exceed target price
E. Smaller single-detached homes
• 3BR, ~1200-1500 square feet units
• Can be affordable to moderate-income households in moderate-cost areas (e.g.,
Central Valley)
• Affordability: Comparable units in SLO region exceed target price
San Luis Obispo’s regional market conditions do not support new for-sale housing at prices
affordable to moderate-income households, with the possible exception of manufactured
homes in housing parks. A few developments have attempted to produce ABD for-sale
housing, but even with very small homes, prices are still too high for the moderate-income
target price range. Factors that make for-sale housing more affordable in other areas may not
translate to the SLO County market (lower land cost, no parking, few amenities, micro units).
Page 371 of 465
19 | H I P
Market Conditions
In summary, the rental market is close and regulatory change could help with smaller units in
cost-effective developments. The market is not close in the for-sale side and a longer-term
approach is needed. Increasing the housing production overall can help bring supply and
demand into balance and make ABD achievable over the longer term. These preliminary findings
are not surprising but sobering. Looking at a wide-angle view, ECONorthwest looked at what
conditions make for lower-cost housing.
Figure 15: Market Conditions for Lower-Cost Housing
As seen in Figure 15: Market Conditions for Lower-Cost Housing, there are four factors that
have to come together in the housing market to product lower-cost housing including simple
design with lower-cost materials, lower cost locations, efficient production, and smaller units with
a higher density.
A primary deliverable for the ABD Study is to create a menu of policy change options that will
incentivize ABD units in the region. Figure 16 depicts how the public sector impacts the
conditions for ABD. ECONorthwest interviewed six developers that work within the San Luis
Obispo Region. Those interviews provided four market barrier themes to ABD Development
including land cost, demand for high-end housing, construction costs, and demand for parking.
They also identified six regulatory barrier themes to ABD development including: discretionary
review, density caps, minimum unit sizes, parking requirements that exceed market demand,
impact fees and inclusionary zoning, and required infrastructure improvements. More of these
details will be made available in July.
Page 372 of 465
20 | H I P
Figure 16: Public Sector and ABD Market Conditions
In coordination with HIP stakeholders, ECONorthwest identified potential policies and incentives
that local governments in the region could implement to support ABD housing development. In
the next few months, the consultant will identify relevant case studies from jurisdictions that
have implemented programs or policies similar to the relevant incentives, and, where possible,
the impact they have had on housing production for ABD housing.
FUNDING STRATEGIES ASSESSMENT
The Funding Strategies Assessment seeks to identify funding and financing sources that can
reasonably implement the water, wastewater, and transportation infrastructure needs of the
HIP. BKF Engineering has drafted a grant inventory that connects each specific HIP project to
various public sources of funding. They also include a grant glossary with factors such as
eligibility requirements, deadlines, funding amounts available. These draft pieces can be
reviewed in Appendix C: Funding Strategies Assessment Preliminary Information.
A Gap Analysis is currently being conducted which aims to determine the difference between the
required funding for the projects and the potential funding that can be secured through grants
and other funding sources. The Gap Analysis approach includes:
Page 373 of 465
21 | H I P
1. Assessing the Projects & Determining Funding Requirements:
2. Identifying Potential Funding Sources
3. Estimating Potential Grant Funding
4. Calculating the Funding Gap
5. Proposing Strategies to Bridge the Funding Gap
The Funding Strategies Assessment will include a detailed breakdown on a project-by-project
basis, covering funding requirements, corresponding funding sources, projected grant funding,
and the residual funding gap, including shortfalls and match requirements. An actionable
timeline and a roadmap, along with recommendations for implementing the proposed
strategies aimed to maximize the probability of securing the requisite funds for HIP projects.
The complete Funding Strategies Assessment will be available in July/August.
HOUSING HIGHLIGHTS
Stakeholder Engagement Strategy
The HIP engagement strategy established four outreach objectives:
• Foster ongoing collaboration and buy-in among private and public stakeholders.
• Remind government/elected officials of the Regional Compact and the motives
behind it to lay groundwork for their commitment to the 2023 regional HIP.
• Build public sentiment in support of solutions and regional planning efforts related
to HIP.
• Support effective coordination with and communication among SLOCOG, HIP
consultants and the Comprehensive Economic Development Strategy (CEDS) teams.
The San Luis Obispo region has strategic goals for the future of housing and infrastructure, but
they can only be achieved through the decisions and actions of organizations and stakeholders.
The stakeholder meetings are designed to have honest conversations about what each
organization can and needs to do to realize those goals. The December 2022 Regional Managers
Retreat guided the stakeholder engagement process which is depicted in Figure 17: HIP
Stakeholder Process.
Page 374 of 465
22 | H I P
Figure 17: HIP Stakeholder Process
The following list are the key stakeholder groups engaged – totaling approximately 100
individuals that participated during the HIP development process in January - June 2023:
Regional Managers/ Key Staff: A key driving force behind developing this plan has been regional
leadership, including eight City Managers, County Administrative Officer, SLOCOG Executive
Director (and key directors from their organizations).
Elected Officials: Two City Council Members with knowledge of regional differences bring the
various perspectives and concerns voiced by their respective constituents for this Steering
Committee. The full 40 elected officials within the region will have an opportunity to hear about
the plan through public updates to SLOCOG Board as well as through presentations of the
recommended HIP to their Councils and Boards in Summer 2023.
Building & Development Cluster: Leaders in the building and development industry that convene
quarterly with the goal of regional coordination focused on aligning housing and infrastructure
needs to create a strong local economy.
Housing Advocacy Group: Organizations and individuals that have significant influence in the
community, with representation from the non-profit builders, local chambers of commerce and
various advocate organizations.
Housing Action Team: Existing work group made up of planning/ community development staff
from Cities, County, and SLOCOG.
Community Stakeholders: The broader community will be engaged in partnership with the SLO
Chamber of Commerce Housing Summit in Spring 2023. Feedback from this event will be
brought to the HIP Steering Committee to discuss and adjust the communications plan
accordingly.
Page 375 of 465
23 | H I P
HIP Steering Committee: Formed to oversee the vision for the HIP Outreach Strategy and to bring
leaders in each of these areas together, aligning and integrating the various interests that will
lead to action on the region’s priorities.
A HIP Steering Committee was selected to represent broader interests and to allow for cross-
sector collaboration and cohesion. It is a small group of representatives with a balance of public
and private backgrounds and a variety of expertise in issues related to development around the
region. The HIP Steering Committee guided the development of a balanced plan, and helped to
identify paths for the plan’s successful adoption and implementation. The HIP Steering
Committee includes Matthew Bronson (Grover Beach), Mayor Heather Moreno (Atascadero),
Councilmember Andy Pease (SLO City), Trevor Keith (County of SLO), Aaryn Abbott (Abbott |
Reed), Lenny Grant (RRM), Jeff Eckles (SLOCHTF), Courtney Howard (SLO Flood Control & Water
Conservation District), Anthony Palazzo (Cal Poly), and Jorge Aguilar (Wallace Group).
Regional Housing Success Stories
Available following Summer 2023 Outreach
NEXT STEPS
Available following Summer 2023 Outreach
APPENDIX
Appendix A: Draft List of HIP Infrastructure Priorities
Appendix B: Affordable-by-Design Study Preliminary Information
Appendix C: Funding Strategies Assessment Preliminary
Information
Appendix D: Regional Compact & Housing Element Regional
Chapter
Appendix E: Additional Housing Data July 2023
Page 376 of 465
Community
Number of Total
Proposed Dwelling
Units
% of Multi-
family units
proposed
Live Work
Percentage
Arroyo Grande 600 18%14%
Atascadero 722 75%21%
Grover Beach 624 81%9%
Morro Bay 120 47%21%
Paso Robles 4,959 42%28%
Pismo Beach 297 30%12%
San Luis Obispo 6,171 58%41%
County 2,221 25%
Cayucos 7 0%13%
Los Osos - 0%11%
Nipomo 1,351 34%9%
Oceano 4 100%4%
San Miguel 152 0%3%
Santa Margarita 514 10%2%
Templeton 193 19%12%
Total 15,714
Subregion
Number of Total
Proposed Dwelling
Units
% of Multi-
family units
proposed
Live Work
Percentage
North County 6,540 42%40%
Central County 6,171 58%44%
North Coast 127 44%27%
South County 2,876 41%27%
Page 377 of 465
Community Total Proposed
Dwelling Units
HIP
Projects High Medium Low
Total Investment
needed per proposed
unit
Total Estimated
Investment
Needed ($
millions)
Multijurisdictional*3 2 1 95$
Arroyo Grande 600 1 1 227,254$ 136$
Atascadero 722 2 1 1 23,734$ 17$
Grover Beach 624 4 3 1 85,920$ 54$
Morro Bay 120 1 1 183,368$ 22$
Paso Robles 4,959 17 16 1 37,055$ 184$
Pismo Beach 297 61,179$ 18$
San Luis Obispo 6,171 26 23 3 43,197$ 267$
County 2,221 22 6 3 13 77,286$ 172$
Cayucos 7 2 1 1 1,185,714$ 8$
Los Osos - 3 3 -$ 15$
Nipomo 1,351 6 4 1 1 25,171$ 34$
Oceano 4 1 1 950,000$ 4$
San Miguel 152 1 1 269,737$ 41$
Santa Margarita 514 1 1 2,918$ 2$
Templeton 193 7 1 1 5 341,647$ 66$
Cal Poly 2,780 2 2 17,986$ 50$
Total Projects 15,714 78 53 9 16 58,547$ 920$
323$ 315$ 281$
Subregion Total Proposed
Dwelling Units
HIP
Projects High Medium Low
Total Investment
needed per proposed
unit
Total Estimated
Investment
Needed ($
millions)
North County 6,540 29 20 3 6 47,401$ 310$
Central County 6,171 29 25 3 1 51,693$ 319$
North Coast 127 6 0 1 5 354,331$ 45$
South County 2,876 13 7 2 4 85,535$ 246$
920$
Community Multijurisdicti High Medi Low Low
Arroyo 2 1 1
Atascadero2,3 2 2
Grover Beach1,2 2 1 1
Morro Bay2 1 1
Paso Robles2,3 2 2 Central Coast Blue 1
Pismo Beach1,2 2 1 2 Cashless Fare System Conversion 2
Priority Category Total Cost Estimate ($ millions)
*Multijurisdictional projects are listed as a separate row
and are not included individually in the "HIP Projects"
Column for each community. However,
multijurisdictional project costs are included in the
The 3 multijurisdictional projects include
the following:
Page 378 of 465
San Luis Obispo2 1 1 North County Charging Facility 3
County2,3 2 2
Page 379 of 465
PrioritySupports new housingBenefit/ Cost Proposed Units within Community Outside BarriersLive Work Percentage Project Type Community Project Name Project Description 2023 Cost Estimate 2023 Time HorizonHigh Y 74$ 1,351 9% Wastewater Nipomo CSA 1 NipomoCapital Improvement Projects100,000$ next 5 yearsHigh Y 2,083$ 2,780 41% Water/Wastewater San Luis ObispoCal PolyIncrease water storage capacity for campus domestic use and fire suppression 15,000,000$ by 2026High Y 2,884$ 4,959 28% Wastewater Paso Robles Paso Robles City wastewaterThere are some areas of the City’s wastewater collection (sewer) system that must be upsized in conjunction with new development14,300,000$ next 10 yearsHigh Y 2,884$ 4,959 28% Water Paso Robles Paso Robles City watersome portions of water system experiencing infrastructure constraints14,300,000$ next 10 yearsHigh Y 2,917$ 6,171 41% Water/Wastewater San Luis ObispoSan Luis Obispo (City)capacity constraints on sewer conveyance network, additional water storage tanks and water transmission main needed18,000,000$ n/aHigh Y 2,918$ 514 2% Water Santa Margarita CSA 23- Santa Margaritaundersized pipelines, pipeline loops1,500,000$ n/aHigh Y 4,861$ 7,200 41% Water/Wastewater San Luis ObispoCal Polyplans to build on-campus Water Reclamation Facility 35,000,000$ by 2026High Y 13,850$ 722 21% Wastewater AtascaderoAtascadero Mutual Water Companytreatment facility to remove PFAS (planning stages)10,000,000$ next 2 yearsHigh Y 1$ 624 9% Transit Grover Beach Grover Beach Service Addition South County Transit provide service to Urban Reserve (Strawberry Field) High Y 1$ 1,351 9% Transit Nipomo Nipomo Service Addition RTA provide service to Dana Reserve *working with developerHigh Y 1$ 4,959 28% Transit Paso Robles Paso Robles Service AdditionPaso Express provide service to Beechwood developmentHigh Y 1$ 4,959 28% Transit Paso Robles Paso Robles Service AdditionPaso Express provide service to Olsen/South Chandler developmentHigh Y 1$ 6,171 41% Transit San Luis Obispo San Luis Obispo Service AdditionSLO Transit provide an additional stop along Board or Tank Farm High Y 1$ 6,171 41% Transit San Luis Obispo San Luis Obispo Service AdditionSLO Transit provide access between Broad and South Higuera in the Margarita Area HighY35$ 15,714 100%TransitCountywideCashless Fare System Conversion (further study is required)550,000$ High Y 72$ 624 9% Active Transportation Grover Beach S. 4th St. bike lanes: Grand Ave. to city limitsRestripe to provide Class II/Class IV bike lanes45,000$ UnconstrainedHigh Y 149$ 624 9% Active Transportation Grover Beach The Pike Complete Street Improvementsstriping, bike lanes93,225$ By 2035High Y 151$ 6,171 41% Active Transportation San Luis Obispo Froom Ranch Frontage & Streetscape ImprovementsInstall sidewalks on west side and median between Irish Hill Plaza and Calle Joaquin.932,250$ By 2028High Y 153$ 6,540 40% Transit North County North County Charging Facility Charging facility at 1735 Paso Robles St., Paso Robles1,000,000$ High Y 162$ 6,171 41% Non-Highway San Luis Obispo Los Osos Valley Rd/Auto Park Wy Intersection ImprovementsInstall traffic signal, median refuges, hi-vis crosswalks and bicycle protected intersection element1,000,000$ By 2028High Y 248$ 6,171 41% Active Transportation San Luis Obispo Tank Farm Road Complete StreetConvert from 5-lane to 3-lane, add Class IV bikeways, landscaped medians, and pedestrian crossings1,533,000$ By 2045High Y 302$ 6,171 41% Active Transportation San Luis Obispo Madonna Rd. - Class IV - Madonna Inn to Higuera Ave.On Madonna Ave. install Class IV from Madonna Inn to Higuera Ave.1,864,500$ By 2035High Y 322$ 6,171 41% Non-Highway San Luis Obispo Buckley Rd. widening: Thread Ln. to Buttonwood Wy.Widen Buckley Rd. to provide paved shoulders, center left turn lane and to flatten existing horizontal curve1,988,800$ By 2035High Y 343$ 4,959 28% Transit Paso Robles Paso Robles New RoutePaso Express provide service to North Chandler Ranch* $700,000 yearly operating1,700,000$ High Y 373$ 6,171 41% Non-Highway San Luis Obispo Broad St/Tank Farm Rd Intersection ImprovementsAdd NB right turn lane, WB right turn lane, and ped/bike crossing enhancements.2,299,500$ By 2045High Y 496$ 6,171 41% Non-Highway San Luis Obispo Orcutt Rd. widening: Johnson Ave. to Tank Farm Rd. (Phase 1)Widen road to three lanes with Class II bike lanes and sidewalks3,057,780$ By 2035 *When working with development early, stop can be added with minimal cost. *When working with development early, stop can be added with *When working with development early, stop can be added with *When working with development early, stop can be added with *When working with development early, stop can be added with *When working with development early, stop can be added with Page 380 of 465
High Y 497$ 6,171 41% Non-HighwaySan Luis ObispoJohnson Ave/Orcutt Rd Roundabout Install roundabout3,066,000$ After 2045High Y 501$ 4,959 28% Non-HighwayPaso RoblesSouth River Rd. / Charolais Rd. roundaboutConstruct roundabout2,486,000$ By 2035High Y 514$ 6,171 41% Active Transportation San Luis Obispo Broad St. Median ImprovementsInstall landscaped medians on Broad St. north of Tank Farm Rd.3,169,650$ By 2035High Y 514$ 6,171 41% Active Transportation San Luis Obispo Railroad Safety Trail (Phase 7): Bike connection south of Tank FarmConstruct Class I bike path and ped/bike bridge over Tank Farm3,169,650$ By 2035High Y 608$ 6,171 41% Active Transportation San Luis Obispo Los Osos Valley Road Protected Bike LanesInstall Class IV bike lanes along LOVR between Diablo and S. Higuera3,750,250$ By 2028High Y 618$ 4,959 28% Non-Highway Paso Robles Airport Road extension North Chandler RanchExtend Airport Road as 2-lane arterial from Linne Rd. to Union Rd.3,066,000$ by 2045High Y 619$ 6,171 41% Non-Highway San Luis Obispo Santa Fe Rd. extension: Santa Fe Rd. to Tank Farm Rd.Extend Santa Fe Rd north w/ new bridge over creek and roundabout intersection at Tank Farm/Santa Fe3,822,225$ By 2035High Y 633$ 6,171 41% Active Transportation San Luis Obispo Railroad Safety Trail: bike bridge crossing at Industrial WayConstruct bike bridge across UPRR tracks at Industrial Wy. to the RRST3,909,150$ By 2045High Y 648$ 4,959 28% Active Transportation Paso Robles N. River Rd.Class I trail multi-use paved trail from 13th St. to SR46 along river trail3,214,500$ By 2028High Y 726$ 4,959 28% Active Transportation Paso Robles Creekside Bike Path: Phase 1 and 2Construct path: Nicklaus to Old S. River Rd.3,600,000$ UnconstrainedHigh Y 745$ 6,171 41% Active Transportation San Luis Obispo South of Broad St. and Santa Barbara Ave. Protected Bike LanesInstall Class IV bikeway on Santa Barbara (Upham to Broad) and Broad from Santa Barbara to Farmhouse4,599,000$ By 2045High Y 870$ 4,959 28% Non-Highway Paso Robles Creston Rd.: Niblick Rd. to Meadowlark Dr. (Phase 3)Install traffic-calming and intersection improvements- roadway diet and signals4,313,210$ By 2035High Y 1,242$ 6,171 41% Non-Highway San Luis Obispo Horizon Lane ExtensionExtend Horizon Ln between Buckley and Tank Farm as commercial collector w/ roundabout at Tank Farm7,665,000$ by 2045High Y 1,429$ 6,171 41% Active Transportation San Luis Obispo Higuera Protected Bike LanesInstall Class IV bikeways along Higuera from Marsh to southern City Limits8,817,000$ By 2045High Y 1,577$ 4,959 28% Active Transportation Paso Robles Huer Huero Creek TrailConstruct Class II bike lanes7,818,300$ by 2045High Y 1,615$ 6,171 41% Non-Highway San Luis Obispo Buckley Rd. widening: Vachell Ln. to Broad St.Widen to three lanes between Hoover St. and Broad St.9,964,500$ By 2045High Y 1,945$ 6,171 41% Non-Highway San Luis ObispoPrado Rd. Bridge Replacement & Multimodal Corridor EnhancementsReplace SLO Creek bridge w/ 6-lane bridge (2 each direction + turn lanes), sidewalks, Class IV bike lanes & construct 2nd NB turn lane from S. Higuera to Prado and a bicycle protected intersection12,000,000$ By 2028High Y 2,014$ 6,171 41% Highway San Luis Obispo US 101 / Prado Rd. I/C Improvements (Phase 2)Construct SB off ramp and on ramp; SB auxiliary lane btw Madonna Rd. to Prado Rd.12,430,000$ By 2035High Y 2,017$ 4,959 28% Non-Highway Paso Robles Creston Rd.: South River Rd. to Niblick Rd.Streetscape enhancements and pedestrian crossing improvements10,000,000$ By 2028High Y 2,024$ 1,351 9% HighwayNipomoInterchange Improvements at Willow Rd US 101 NB & SB ramp signalization2,734,600$ By 2035High Y 2,256$ 4,959 28% Active Transportation Paso Robles Paso Robles Eastside Grand LoopComplete gaps in the Grand Loop Bikeway Route on the eastside of town, not already completed by Olsen, Chandler, Beachwood, North River Rd., and Huer Huero Creek to complete a connected orbital Class I network.11,187,000$ By 2035High Y 2,484$ 6,171 41% Non-Highway San Luis Obispo Santa Fe Rd. extension: south of Tank Farm Rd.Realign and extend Santa Fe Rd. from Hoover Ave. to Tank Farm15,330,000$ by 2045High Y 2,837$ 1,351 9% Non-Highway Nipomo Roadway Extension of Hetrick RdExtend Hetrick Rd from Glenhaven Place to Pomeroy Rd to two travel lanes and 8' shoulder3,832,500$ After 2045High Y 3,091$ 4,959 28% Highway Paso Robles SR 46E / Union Rd. improvements (Phase 2)Construct Phase 2 improvements: new interchange15,330,000$ by 2045High Y 3,480$ 4,959 28% Active Transportation Paso RoblesNiblick Rd. Corridor enhancements, operational improvements, Complete StreetsTransportation demand management improvements17,257,000$ By 2035High Y 4,186$ 193 12% Non-Highway Templeton Las Tablas Rd. at Florence St. ImprovementsTraffic signal, ADA ramps, and left-turn lane at Las Tablas Rd. at Florence St.807,950$ By 2035High Y 4,386$ 4,959 28% Highway Paso Robles US 101 / SR 46W I/C construct two roundaboutsOperational improvements: modify interchange, EB and WB roundabouts (Phase 3)21,752,500$ By 2035Page 381 of 465
Medium Y 41,451$ 193 12% Water/Wastewater TempletonTempleton Community Services Districtnew sewer force main needed; water supply availability is a limitation and a Nacimiento Recharge and Retrieval Project is needed to add water to the District water system (will include a new pipeline turnout, recharge basin, water filtration and two new wells)8,000,000$ 2027 or laterMedium Y 42,857$ 7 13% Wastewater Cayucos Cayucos Sanitary District (wastewater)Capital Improvement Projects 300,000$ 1 yearMedium Y 61,144$ 1,521 25% Water/WastewaterArroyo Grande, Grover Beach, Pismo BeachCentral Coast Blue: GB, AG, PB Water Supply & Sewer MainRegional Recycled water project (PB, GB, AG); Phase 1-pipe treated wastewater from Pismo Beach’s Wastewater Treatment Plant (WWTP) to a new advanced treatment facility located in Grover Beach. Phase 2 - expand to treat wastewater from South San Luis Obispo County Sanitation District’s WWTP. 93,000,000$ next 5 yearsMedium Y 4,583$ 6,171 41% Non-Highway San Luis Obispo Tank Farm Rd. widening: Higuera St. to Broad St.Widen to five lanes with Class II bike lanes & Class I paths between Horizon and Santa Fe28,283,850$ After 2045Medium Y 7,360$ 1,351 9% Non-Highway Nipomo Roadway Extension of North Frontage RdExtend North Frontage from Sandydale Dr to Willow Rd9,944,000$ By 2035Medium Y 8,418$ 6,171 41% Non-Highway San Luis Obispo Prado Rd. extension: South Higuera St. to Broad St.Construct extension as 4-lane road (plus median/LT lane), Class I shared-use paths, and new intersection at Broad St. & Prado Rd. 51,948,771$ By 2045Medium Y 9,695$ 722 21% Highway Atascadero US 101 / Del Rio Rd. I/C modificationsConstruct interchange improvements in association with developments7,000,000$ By 2028Medium Y 10,331$ 6,171 41% Highway San Luis Obispo US 101 / Prado Rd. I/C and NB auxiliary lane (Phase 1)Construct Prado Rd. overcrossing; NB auxiliary lane. Extend Prado Rd. east to Froom Ranch Way; construct bike lanes, sidewalks.63,750,000$ By 2028Medium Y 10,587$ 4,959 28% Highway Paso Robles SR 46E / Union Rd. improvements (Phase 1)Construct overcrossing; realignment, vertical sight distance improvements, channelization & bike lanes/sidewalks on Union Road from Ardmore Road to Barney Schwartz Park52,500,000$ by 2028Low Y 183,333$ 120 21% Water/Wastewater Morro BayMorro Bay (City)Fire flow limitations; aging infrastructure 22,000,000$ next 10 yearsLow Y 269,737$ 152 3% Water/Wastewater San Miguel San Miguel CSDwater pumping capacity, wastewater sewer treatment capacity, and water water treatment plant expansion41,000,000$ 1 to 10 yearsLow Y 950,000$ 4 4% Water/Wastewater OceanoOceano CSDWater Resource Reliability Program (capital improvements), and upgrade of water mains3,800,000$ next 10 yearsLow Y 1,142,857$ 7 13% Water Cayucos CSA 10/10A- Cayucos (Cayucos Water Treatment Plant)water line loops and replacements8,000,000$ next 5 yearsLow Y - - ding Moratori 11% Water Los OsosS&T Mutual Water Companypipeline to secure a secondary water source, which would run between their water system and the Los Osos CSD, Shared Bike path Easement2,900,000$ next 5 yearsLow Y - - ding Moratori 11% Water Los OsosS&T Mutual Water CompanyNorth Water Tank 2,500,000$ next 5 yearsLow Y - - ding Moratori 11% Water/Wastewater Los OsosLos Osos CSDinfrastructure to import supplemental water 10,000,000$ next 5 yearsLow Y - - 41% Wastewater San Luis Obispo CountyCSA 18 Los RanchosSewer Rehabilitation 1,500,000$ next 10yearsLow Y 12,875$ 1,351 9% Non-Highway NipomoNorth Frontage Rd. extension: Sandydale Rd. to Summit Station Rd.Extend North Frontage Rd. from Sandydale Rd. to Summit Station Rd.17,394,568$ By 2045Low Y 15,855$ 193 12% Active Transportation TempletonLas Tablas Rd. Class II bike lanes: US 101 to Old County Rd.Construct Class II bike lanes3,060,000$ UnconstrainedLow Y 16,101$ 193 12% Highway Templeton Las Tablas Rd Interchange ImprovementsOn Las Tablas Rd from Bennett Way to US 101, widen US 101 SB off-ramp and add westbound lane3,107,500$ By 2035Low Y 24,519$ 624 9% Active Transportation Grover Beach Beach Cities Trail: Boardwalk Dune TrailConstruct bike/ped trail15,300,000$ UnconstrainedLow Y 28,982$ 193 12% Non-Highway TempletonBennett Way connection/ frontage road: Templeton Hills Rd. to Vineyard Dr.Connect Bennett Way between Templeton Hills Road and Vineyard Drive5,593,500$ By 2035Page 382 of 465
Low Y 115,927$ 193 12% Highway Templeton US 101 / Main St. I/C improvementsReconstruct interchange and widen Main St. from US 101 to Creekside Ranch Rd.22,374,000$ By 2035Low Y 119,145$ 193 12% Highway Templeton Interchange Improvements at Las Tablas RdPhase 3 Widening to 5 lanes (Bridge Removal and replacement) or Roundabouts22,995,000$ By 2045Low Y 166,075$ 600 14% Highway Arroyo Grande US 101 Traffic Way/El Campo Interchange Closure of SB Fair Oaks off-ramp & Traffic Way NB & SB ramps, and all at-grade access points between Traffic Way and Los Berros Road and construct new interchange in the vicinity of El Campo/Traffic Way. 99,645,000$ By 2045Estimate ProjectsEstimate for all HIP Projects 919,252,229$ 78High 323,000,000$ 53Medium 315,000,000$ 9Low281,000,000$ 16Water/Wastewater301,000,000$ Transportation618,000,000$ Total Purposed Units 15,714 Total Investment needed per purposed uni 58,499$ Total HIP Projects 78Estimate ($ ProjectsEstimate for all HIP Projects 919$ 78High 323$ 53Medium 315$ 9Low281$ 16Page 383 of 465
PrioritySupports new housingBenefit/ CostProposed Units within CommunityOutside BarriersLive Work Percentage Project Type Community OBJECTID RTP ID # Project NameProject DescriptionProject Type 2019 RTP Unescalated Cost 2019 RTP Time Horizon 2021 Cost Estimate 2023 Cost Estimate 2023 Time HorizonJurisdiction NotesCommunity Buffer Name JurisdictionHigh Y $ 1 6,171 41% Transit San Luis Obispo BISan Luis Obispo Service AdditionSLO Transit provide an additional stop along Board or Tank Farm *When working with development early, stop can be added with minimal cost. High Y $ 1 6,171 41% Transit San Luis Obispo BJSan Luis Obispo Service AdditionSLO Transit provide access between Broad and South Higuera in the Margarita Area *When working with development early, stop can be added with minimal cost. High Y $ 151 6,171 41%Active TransportationSan Luis Obispo M CEN-ATP-2324Froom Ranch Frontage & Streetscape ImprovementsInstall sidewalks on west side and median between Irish Hill Plaza and Calle Joaquin.Safety $ 750,000 $ 932,250 By 2028 Froom Ranch DeSan Luis Obispo San Luis Obispo San Luis ObispoHigh Y $ 162 6,171 41% Non-Highway San Luis Obispo Y CEN-RORS-2345Los Osos Valley Rd/Auto Park Wy Intersection ImprovementsInstall traffic signal, median refuges, hi-vis crosswalks and bicycle protected intersection element $ 1,000,000 $ 1,000,000 By 2028 Froom Ranch DeSan Luis Obispo San Luis Obispo San Luis ObispoHigh Y $ 248 6,171 41%Active TransportationSan Luis Obispo BF CEN-ATP-2313Tank Farm Road Complete StreetConvert from 5-lane to 3-lane, add Class IV bikeways, landscaped medians, and pedestrian crossingsClass IV $ 1,000,000 $ 1,533,000 By 2045 Active Transport San Luis Obispo San Luis Obispo San Luis ObispoHigh Y $ 302 6,171 41%Active TransportationSan Luis Obispo BH CEN-ATP-2318Madonna Rd. - Class IV - Madonna Inn to Higuera Ave.On Madonna Ave. install Class IV from Madonna Inn to Higuera Ave.Class IV $ 5,000,000 $ 1,864,500 By 2035 Active Transport San Luis Obispo San Luis Obispo San Luis ObispoHigh Y $ 322 6,171 41% Non-Highway San Luis Obispo BK CEN-RORS-1407Buckley Rd. widening: Thread Ln. to Buttonwood Wy.Widen Buckley Rd. to provide paved shoulders, center left turn lane and to flatten existing horizontal curve $ 1,211,550 $ 1,600,000 $ 1,988,800 By 2035 Rural Central Co San Luis Obispo San Luis ObispoHigh Y $ 373 6,171 41% Non-Highway San Luis Obispo W CEN-RORS-2343Broad St/Tank Farm Rd Intersection ImprovementsAdd NB right turn lane, WB right turn lane, and ped/bike crossing enhancements. $ 1,500,000 $ 2,299,500 By 2045 660 Tank Farm DSan Luis Obispo San Luis Obispo San Luis ObispoHigh Y $ 496 6,171 41% Non-Highway San Luis Obispo R CEN-RORS-1004Orcutt Rd. widening: Johnson Ave. to Tank Farm Rd. (Phase 1)Widen road to three lanes with Class II bike lanes and sidewalks $ 2,460,000 $ 3,057,780 By 2035 All widening by pSan Luis Obispo San Luis Obispo San Luis ObispoHigh Y $ 497 6,171 41% Non-Highway San Luis Obispo X CEN-RORS-2344Johnson Ave/Orcutt Rd RoundaboutInstall roundabout $ 2,000,000 $ 3,066,000 After 2045 Significant ROW San Luis Obispo San Luis Obispo San Luis ObispoHigh Y $ 514 6,171 41%Active TransportationSan Luis Obispo BB CEN-AT3-1006Broad St. Median ImprovementsInstall landscaped medians on Broad St. north of Tank Farm Rd.Livability $ 2,550,000 By 2030 $ 3,169,650 By 2035 City is only fundi San Luis Obispo San Luis Obispo San Luis ObispoHigh Y $ 514 6,171 41%Active TransportationSan Luis Obispo BC CEN-AT1-1012Railroad Safety Trail (Phase 7): Bike connection south of Tank Farm Rd.Construct Class I bike path and ped/bike bridge over Tank FarmClass I $ 2,550,000 By 2030 $ 3,169,650 By 2035 Active Transport San Luis Obispo San Luis Obispo San Luis ObispoHigh Y $ 608 6,171 41%Active TransportationSan Luis Obispo N CEN-ATP-2309Los Osos Valley Road Protected Bike LanesInstall Class IV bike lanes along LOVR between Diablo and S. HigueraClass IV $ 3,500,000 $ 3,750,250 By 2028 Froom Ranch devSan Luis Obispo San Luis Obispo San Luis ObispoHigh Y $ 619 6,171 41% Non-Highway San Luis Obispo Z CEN-RORS-1009Santa Fe Rd. extension: Santa Fe Rd. to Tank Farm Rd.Extend Santa Fe Rd north w/ new bridge over creek and roundabout intersection at Tank Farm/Santa Fe $ 3,075,000 $ 3,822,225 By 2035 Bridge is in Caltr San Luis Obispo San Luis Obispo San Luis ObispoPage 384 of 465
High Y $ 633 6,171 41%Active TransportationSan Luis Obispo BD CEN-AT1-1016Railroad Safety Trail: bike bridge crossing at Industrial WayConstruct bike bridge across UPRR tracks at Industrial Wy. to the RRSTClass I $ 2,550,000 By 2025 $ 3,909,150 By 2045 San Luis Obispo San Luis Obispo San Luis ObispoHigh Y $ 745 6,171 41%Active TransportationSan Luis Obispo BE CEN-ATP-2312South of Broad St. and Santa Barbara Ave. Protected Bike LanesInstall Class IV bikeway on Santa Barbara (Upham to Broad) and Broad from Santa Barbara to FarmhouseClass IV $ 3,000,000 $ 4,599,000 By 2045 Active Transport San Luis Obispo San Luis Obispo San Luis ObispoHigh Y $ 1,242 6,171 41% Non-Highway San Luis Obispo V CEN-RORS-2339Horizon Lane ExtensionExtend Horizon Ln between Buckley and Tank Farm as commercial collector w/ roundabout at Tank Farm $ 5,000,000 $ 7,665,000 by 2045 Portions to be coSan Luis Obispo San Luis Obispo San Luis ObispoHigh Y $ 1,429 6,171 41%Active TransportationSan Luis Obispo O CEN-ATP-2316Higuera Protected Bike LanesInstall Class IV bikeways along Higuera from Marsh to southern City LimitsClass IV $ 4,000,000 $ 8,817,000 By 2045 Active Transport San Luis Obispo San Luis Obispo San Luis ObispoHigh Y $ 1,615 6,171 41% Non-Highway San Luis Obispo P CEN-RORS-1012Buckley Rd. widening: Vachell Ln. to Broad St.Widen to three lanes between Hoover St. and Broad St. $ 6,500,000 $ 9,964,500 By 2045 Buckley Rd Wide Rural Central Co San Luis Obispo CountyHigh Y $ 1,945 6,171 41% Non-Highway San Luis Obispo U CEN-RORS-1002Prado Rd. Bridge Replacement & Multimodal Corridor EnhancementsReplace SLO Creek bridge w/ 6-lane bridge (2 each direction + turn lanes), sidewalks, Class IV bike lanes & construct 2nd NB turn lane from S. Higuera to Prado and a bicycle protected intersection $ 6,765,000 $ 12,000,000 $ 12,000,000 By 2028 Current construcSan Luis Obispo San Luis Obispo San Luis ObispoHigh Y $ 2,014 6,171 41% Highway San Luis Obispo ABCEN-MHWY-1904US 101 / Prado Rd. I/C Improvements (Phase 2)Construct SB off ramp and on ramp; SB auxiliary lane btw Madonna Rd. to Prado Rd. $ 10,000,000 By 2045 $ 12,430,000 By 2035 May end up withSan Luis Obispo San Luis Obispo San Luis ObispoHigh Y $ 2,484 6,171 41% Non-Highway San Luis Obispo T CEN-RORS-1901Santa Fe Rd. extension: south of Tank Farm Rd.Realign and extend Santa Fe Rd. from Hoover Ave. to Tank Farm $ - $ 15,330,000 by 2045 San Luis Obispo San Luis Obispo San Luis ObispoHigh Y $ 2,917 6,171 41%Water/WastewaterSan Luis ObispoSan Luis Obispo (City)capacity constraints on sewer conveyance network, additional water storage tanks and water transmission main needed $ 18,000,000 n/a San Luis ObispoMedium Y $ 4,583 6,171 41% Non-Highway San Luis Obispo Q CEN-RORS-1011Tank Farm Rd. widening: Higuera St. to Broad St.Widen to five lanes with Class II bike lanes & Class I paths between Horizon and Santa Fe $ 18,450,000 $ 28,283,850 After 2045 Requires ROW frSan Luis Obispo San Luis Obispo San Luis ObispoMedium Y $ 8,418 6,171 41% Non-Highway San Luis Obispo S CEN-RORS-1003Prado Rd. extension: South Higuera St. to Broad St.Construct extension as 4-lane road (plus median/LT lane), Class I shared-use paths, and new intersection at Broad St. & Prado Rd $ 23,370,000 $ 33,887,000 $ 51,948,771 By 2045 Costs include newSan Luis Obispo San Luis Obispo San Luis ObispoPage 385 of 465
Medium Y $ 10,331 6,171 41% Highway San Luis Obispo AACEN-MHWY-1402US 101 / Prado Rd. I/C and NB auxiliary lane (Phase 1)Construct Prado Rd. overcrossing; NB auxiliary lane. Extend Prado Rd. east to Froom Ranch Way; construct bike lanes, sidewalks. $ 31,200,000 By 2025 $ 56,700,000 $ 63,750,000 By 2028 Costs include sofSan Luis Obispo San Luis Obispo San Luis ObispoHigh Y $ 35 6,171 100% TransitSan Luis ObispoCashless Fare System Conversion (further study is required) $ 215,985 Countywide266,566,861$ 43,196.70$ 26 TOTALTotal Investment needed per proposed unit Community Specific Projects * Multijurisdictional Project Cost Estimate = Total Benefit/Cost per unit * number of proposed units within community Page 386 of 465
ECONorthwest | Portland | Seattle | Los Angeles | Eugene | Bend | Boise | econw.com 1
DATE: May 5, 2023
TO: Regional Housing and Infrastructure Plan (HIP) Members
FROM: Becky Hewitt and Emmanuel Lopez (ECONorthwest)
SUBJECT: SLOCOG Affordable-by-Design Market Assumptions
As part of the Affordable-by-Design project, ECONorthwest is testing financial feasibility of
various prototypical multifamily developments across four submarkets in San Luis Obispo
(SLO) County. This memo outlines our assumptions regarding the physical characteristics of the
prototypes, estimated development costs, and market rents.
Key Market and Financial Assumptions
The four market areas are:
North Coast
North County
South County
Central County
We did not include East County in our analysis because there is little development or
development opportunity in that area.
Page 387 of 465
ECONorthwest 2
Development Prototypes
Our analysis focuses on multifamily development that could potentially be affordable to
moderate-income households. We used built examples from SLO County and elsewhere to
inform the unit size, unit mix, and other physical characteristics of the developments. The
prototypes tested are summarized in brief below:
3-story walk-up apartments—standard
Larger units (~880 sf average)
Typical density, parking ratio, and landscaping
3-story walk-up apartments—compact
Smaller units (~620 sf average)
Higher density, lower parking ratio, less landscaping
4-story micro-unit apartments
Very small units (~300 sf, shared kitchens, individual kitchenettes)
Very high density, no parking, no landscaping
The table below provides additional detail of the assumptions for each prototype.
Note the estimated construction “hard cost” includes all vertical and horizontal development
costs on-site, divided by the total gross square footage (GSF) of the building.
Page 388 of 465
ECONorthwest 3
Estimated Market Rents by Market Area
The estimated market rents for each prototype in each market were estimated based on
comparable developments (in markets with comparable development) and adjusted to reflect
differences between market rents in the different areas. The market rents for our analysis were
estimated for 2023 dollars with an estimated 3% annual escalation prior to opening.
Page 389 of 465
ECONorthwest 4
Other Development Costs and Return Expectations by Market Area
Impact and permit fees were developed by taking housing element development fee estimates
for multifamily and aggregating them at the sub-regional level.
Land costs are estimated based on developer interviews as well as review of land value data for
selected example developments and land sales transactions in SLO County. Land values are
highly variable, but the assumptions are intended to reflect the rough market cost of
unimproved residential land in each area.
Return Metrics by Market Area
The financial feasibility analysis uses a metric called “return on cost” (ROC), which reflects the
income potential of the completed development1 divided by the total cost of development. This
ratio is often used as an initial indicator of development feasibility for rental developments, as it
provides a preliminary indication of whether the completed property will provide competitive
financial returns that could attract investors and meet loan underwriting requirements. Because
both lenders and investors will expect higher returns for riskier investments, market areas that
have stronger demand fundamentals will likely have a lower threshold for ROC to make
development viable. The estimated return requirements (Target ROC) for each market area are
summarized below.
1 Net Operating Income (NOI), the revenue after accounting for vacancy and operating expenses.
Page 390 of 465
San Luis Obispo County
Affordable-by-Design Study
May 2023
Page 391 of 465
Study Overview
Page 392 of 465
For purposes of study:
▪Market-rate housing, no public subsidy
▪Market rents or sales prices affordable to Low or Moderate Income households
▪<120% of Median Family Income (MFI)
▪Market conditions vary within the County; affordability criteria do not
What do we mean by Affordable by Design?
7Source: SAN LUIS OBISPO COUNTY DEPARTMENT OF PLANNING AND BUILDING, Affordable Housing Standards, May 2022
(https://www.slocounty.ca.gov/Departments/Planning-Building/Forms-Documents/Housing-Forms-and-Documents/Informational-Documents/Affordable-Housing-Standard-(Post-2009).pdf)
Page 393 of 465
What do we mean by Affordable by Design?
8Source: SAN LUIS OBISPO COUNTY DEPARTMENT OF PLANNING AND BUILDING, Affordable Housing Standards, May 2022
(https://www.slocounty.ca.gov/Departments/Planning-Building/Forms-Documents/Housing-Forms-and-Documents/Informational-Documents/Affordable-
Housing-Standard-(Post-2009).pdf)
Page 394 of 465
Highlight potential policy measures to support ABD housing
Identify regulatory barriers to development to ABD housing
Financial feasibility analysis of illustrative “prototypical” development examples
Consider whether ABD housing examples from other regions could meet ABD criteria in SLO County’s market
Interviews with local housing developers
Identify common physical characteristics for ABD housing
Identify recently built housing in SLO County that meets Affordable by Design (ABD) criteria
Approach
9
Page 395 of 465
This week’s meetings:
•Feedback on our findings to date
•Feedback on potential policy measures of greatest interest
Deeper dive on selected policy measures
Recommendations to support ABD in SLO
County
What’s Next?
10
Page 396 of 465
ABD Rental Housing
Page 397 of 465
Recently Built ABD Rental Housing in SLO
County
Connect SLO La Plaza
Ramona Gardens Laurel Lane
The Junction
Source: ECONorthwest analysis of CoStar data, February 2023. Data is limited.
Connect
SLO La Plaza Laurel Lane Ramona
Gardens
The
Junction
Jurisdiction San Luis
Obispo
Atascader
o
San Luis
Obispo
Grover
Beach
San Luis
Obispo
Land Area
(AC)
Not
Available 1.83 Not
Available 0.51 1.58
# Units 78 42 22 19 69
# Stories 3 3 3 3 3
Studio
Affordability
Above
Moderate Moderate N/A Moderate Above
Moderate
Studio Unit
Size 477 sf 534 sf N/A 400 sf 531 sf
1 BR
Affordability Moderate*Moderate Low/
Moderate*Moderate Moderate*
1 BR Unit
Size 664 sf 721 sf 514 sf 800 sf 568 sf
2 BR
Affordability
Above
Moderate
Above
Moderate Moderate*Moderate Above
Moderate
2 BR Unit
Size 1,032 sf 1,537 sf 877 sf 800 sf 799 sf
3 BR
Affordability N/A Above
Moderate
Above
Moderate N/A N/A
3 BR Unit
Size N/A 2,808 sf 1,288 sf N/A N/A
*CoStar does not
isolate market rents in
mixed-income
buildings. Reported
average rents may be
artificially low due to
some units being
below market rate,
particularly where
inclusionary housing
regulations apply.Page 398 of 465
Unit Size vs. Rent and Affordability for Newer
Apartments
13
Source: ECONorthwest analysis of CoStar data, February 2023. Data is limited.
Page 399 of 465
Findings from SLO County Recent Development
(Rental)
14
•May include some mixed-income
buildings
•1BR units most likely to be affordable
•No 3BR units affordable
Some new
apartments
affordable at
Moderate Income
•Mostly 3 story buildings
•Mostly smaller average unit sizes
•Not all small units are affordable to
Moderate Income households
Design helps, but
does not
guarantee
affordability
Page 400 of 465
Micro Units
▪~150-350 sf
▪Individual kitchenettes, shared kitchens
▪No parking, bike storage
▪Generally 4+ stories, high density, minimal setbacks/landscaping
▪Highly walkable and desirable locations
▪Typically affordable to Moderate Income households in respective region
Examples from Other Housing Markets
15
Image credit: Alcove PDX (https://pdxalcove.com)
Image credit: Stenberg Hart
(https://www.steinberghart.com/
design/projects/mccadden-place
-micro-units/)
Page 401 of 465
Development “Prototypes”
Financial Feasibility Analysis
16
A.3-story walk-up apartments—standard
▪Larger units (~880 sf average)
▪Typical density, parking ratio, and landscaping
B.3-story walk-up apartments—compact
▪Smaller units (~620 sf average)
▪Higher density, lower parking ratio, less landscaping
C.4-story micro-unit apartments
▪Very small units (~300 sf, shared kitchens, individual kitchenettes)
▪Very high density, no parking, no landscaping
Page 402 of 465
Market Rent Affordability by Market Area
Financial Feasibility Analysis
17
Page 403 of 465
Results
Financial Feasibility Analysis
18
PRELIMINAR
Y
Page 404 of 465
Summary of
Results by
Market Area
Financial Feasibility Analysis
19
Page 405 of 465
Key Takeaways
Financial Feasibility Analysis
20
Central County
•Smaller units
help achieve
affordability
•Market likely
to support
feasibility
North Coast
•Market rents
provide
affordability
•Feasibility is
difficult
North County
•Market rents
likely
affordable
except for
largest units
•Market likely
to support,
except for the
smallest units
South County
•Market rents
likely
affordable
except for
largest units
•Market
support is
borderline
Page 406 of 465
ABD For-Sale Housing
Page 407 of 465
Recently Built ABD For-Sale Housing in SLO
County
Only manufactured housing in manufactured home parks met target
price points for new for-sale housing using County calculations
Images and sales data from Redfin
Page 408 of 465
Recently Built ABD For-Sale Housing in SLO
County
A few small detached homes came close, and potentially could meet
City of SLO affordability standards.
Images and sales data from Redfin
Page 409 of 465
Small detached units
▪~350-800 sf units
▪Shared yards
▪Clustered parking
▪Smallest units may be affordable at close to 120% of AMI in that market
▪Comparable units in SLO region exceed target price
Examples from Other Housing Markets
24
Image credit: South Park Cottages
(https://southparkcottages.com/)
Image credit: Connect Architecture
(https://www.connectarchitecture.us/posh-pockets)
https://www.redfin.com/OR/Bend/61301-Benham-Rd-9
7702/unit-1/home/167021238
Page 410 of 465
Small condo units
▪~325-600 sf
▪Little or no on-site parking
▪Can be affordable to
Moderate Income
households in portions of
some high-cost regions
▪May not be viable in SLO
region’s market
Examples from Other Housing Markets
25
Image Credit:
https://www.portlandsbestrealestate.com/division-43-studio-c
ondo
https://www.redfin.com/OR/Portland/7360-N-Atlantic-Ave-97
217/unit-3/home/185141446
Page 411 of 465
Simple condo development
▪~600-1000 sf
▪Little or no on-site parking
▪Few shared amenities
▪Can be affordable to Moderate Income households in portions of some high-cost regions
▪May not be viable in SLO region’s market
Examples from Other Housing Markets
26
https://www.redfin.com/OR/Portland/5025-N-Minne
sota-Ave-97217/unit-102/home/185246763
https://www.redfin.com/OR/Portland/1801-N-Rosa-Parks-Way-9
7217/unit-303/home/172577477
https://www.redfin.com/CO/Federal-Heights/1401-W-85th-Ave-8
0260/unit-B101/home/176995897
Page 412 of 465
Examples from Other Housing Markets
Smaller townhouse units
▪~1,000-1,600 sf
▪Can be affordable to Moderate Income
households in portions of some high-cost
regions
▪Comparable units in SLO region exceed
target price
Images from Redfin
https://www.redfin.com/OR/Gresham/724-NE-9th-St-
97030/home/25781034 https://www.redfin.com/OR/Portland/7308-NE-11th-Ave-9721
1/home/185109359
https://www.redfin.com/WA/Bothell/15711-Waynita-W
ay-NE-98011/unit-H-206/home/146316780
https://www.redfin.com/CO/Denver/2206-E-38th-Ave-
80205/home/185222737
Page 413 of 465
Examples from Other Housing Markets
Smaller single-detached homes
▪3BR, ~1200-1500 sf
▪Can be affordable to
moderate-income households in
moderate-cost areas (e.g., Central
Valley)
▪Comparable units in SLO region
exceed target price
Images from Redfin
https://www.redfin.com/CA/King-City/611-Cecily-St-93930/ho
me/167240703
https://www.redfin.com/CA/Shafter/9710-Amberdale-Way-93
263/home/178358767 Page 414 of 465
▪SLO County market conditions do not support new for-sale housing at
prices affordable to moderate-income households, with the possible
exception of manufactured housing in parks
▪A few developments have attempted to produce ABD for-sale housing,
but even with very small homes, prices are still too high for the
moderate-income target price range.
▪Factors that make for-sale housing more affordable in other areas may
not translate to the SLO County market (lower land cost, no parking, few
amenities, micro units)
Key Takeaways
29
Page 415 of 465
Barriers and Policy Recommendations
Page 416 of 465
Small units,
higher density
(unless more density means higher
cost construction types)
Simple
design,
lower-cost
materials
Lower cost location
(considering land, infrastructure, and
site prep costs)
Efficient
productio
n (e.g.,
pre-fabricated
construction,
production
builders,
streamlined
process)
What allows the market to produce lower-cost
housing?
Market
may
produce
lower-cost
housing
Page 417 of 465
Small units,
higher density
(except for high-rise
construction)
Simple
design,
lower-cost
materials
Lower cost location
(considering land, infrastructure,
and site prep costs)
Efficient
productio
n (e.g.,
pre-fabricated
construction,
production
builders,
streamlined
process)
How does the public sector impact market production of lower-cost
housing?
Do lot size / density standards,
impact fee structures, or other
local policies prohibit or
discourage this?
Do design standards or
discretionary design
review make this
difficult or impossible?
Are there suitable,
cost-effective areas zoned
for multifamily?
Do discretionary review
processes or slow
permitting timelines make
pre-development less
efficient?
Market
may
produce
lower-cost
housing
Page 418 of 465
Land Cost Demand for high-end
housing
Construction costs Demand for parking
Market Barriers to ABD Development in SLO
County
33
Page 419 of 465
Discretionary review Density caps
Minimum unit sizes Parking requirements that
exceed market demand
Impact fees,
inclusionary zoning
Required infrastructure
improvements
Regulatory Barriers to ABD Development in
SLO County
34
Page 420 of 465
Rental: Market is close, regulatory change
could help
• ABD = smaller units in cost-effective development
For-Sale: Market not close, longer-term
approach needed
• Increasing housing production overall can help bring
supply and demand into balance, make ABD achievable
over the longer term
Conclusions
35
Page 421 of 465
Page 422 of 465
Project Type Community Project Name Project Description 2023 Cost Estimate 2023 Time HorizonRRGP DWSRFWater and Waste Disposal Loan and Grant ProgramWIFIA CWSRF IRWMProp 1 Water BondSDWSRFWastewater Nipomo CSA 1 Nipomo very few CIP 100,000$ next 5 years X X X X X XWater/Wastewater San Luis ObispoCal Poly A purple pipe to campus from the City of SLO's WRRF 10,000,000$ by 2026 X X X X X XWastewater Paso RoblesPaso Robles City wThere are some areas of the City’s wastewater collection (sewer) system that must be upsized in conjunction with new development14,300,000$ next 10 years XXXXXWater Paso Robles Paso Robles City wsome portions of water system experiencing infrastructure constraints14,300,000$ next 10 years X X X X X XWater/Wastewater San Luis ObispoSan Luis Obispo (Ccapacity constraints on sewer conveyance network, additional water storage tanks and water transmission main needed18,000,000$ n/a X XXXXWater Santa Margarita CSA 23- Santa Margundersized pipelines, pipeline loops 1,500,000$ n/a X X X X X XWater/WastewaterSan Luis ObispoCal Polyplans to build on-campus Water Reclamation Facility 35,000,000$ by 2026 X X X X X XWastewaterAtascaderoAtascadero Mutualtreatment facility to remove PFAS (planning stages)10,000,000$ next 2 years X X X X X X XWater/Wastewater TempletonTempleton Communew sewer force main needed; water supply availability is a limitation and a Nacimiento Recharge and Retrieval Project is needed to add water to the District water system (will include a new pipeline turnout, recharge basin, water filtration and two new wells)8,000,000$ 2027 or later X XXXXXWastewaterCayucos Cayucos Sanitary DCapital Improvement Projects 300,000$ 1 year XXXXXWater/WastewateArroyo Grande, Grover Beach, Pismo BeachCentral Coast BlueRegional Recycled water project (PB, GB, AG); Phase 1-pipe treated wastewater from Pismo Beach’s Wastewater Treatment Plant (WWTP) to a new advanced treatment facility located in Grover Beach. Phase 2 - expand to treat wastewater from South San Luis Obispo County Sanitation District’s WWTP. 93,000,000$ next 5 yearsX X XXXXWater/WastewaterMorro BayMorro Bay (City)Fire flow limitations; aging infrastructure 22,000,000$ next 10 years X X X X X XWater/Wastewater San Miguel San Miguel CSDwater pumping capacity, wastewater sewer treatment capacity, and water water treatment plant expansion41,000,000$ 1 to 10 years XXXXXWater/Wastewater OceanoOceano CSDWater Resource Reliability Program (capital improvements), and upgrade of water mains3,800,000$ next 10 years X X X X X XWater Cayucos CSA 10/10A- Cayucwater line loops and replacements8,000,000$ next 5 years X X X X X XWater Los OsosS&T Mutual Water pipeline to secure a secondary water source, which would run between their water system and the Los Osos CSD, Shared Bike path Easement2,900,000$ next 5 years X X X X X XWaterLos OsosS&T Mutual Water North Water Tank2,500,000$ next 5 years X X X X X XWater/WastewaterLos OsosLos Osos CSDinfrastructure to import supplemental water 10,000,000$ next 5 years X X X X X XWastewaterSan Luis Obispo CoCSA 18 Los RanchoSewer Rehabilitation 1,500,000$ next 10years XXXXXPage 423 of 465
CommunityRow LabelsCount of RRGPCount of DWSRFCount of Water and Waste Disposal Loan and Grant ProgramCount of WIFIACount of CWSRFCount of IRWMCount of Prop 1 Water BondCount of SDWSRFArroyo Grand 111 11 1Atascadero 1 1 1 1 1 1 1Cayucos 111 1 1 1Cayucos 11 11 1Los Osos 333 3 3 3Morro Bay111 1 1 1Nipomo 111 1 1 1Oceano 111 1 1 1Paso Robles11 11 1Paso Robles 111 1 1 1San Luis Obisp233 13 3 2San Luis Obispo County11 11 1San Miguel 11 11 1Santa Margari111 1 1 1Templeton 111 11 1Grand Total 14 1 19 19 7 19 19 12PriorityRow LabelsCount of RRGPCount of DWSRFCount of Water and Waste Disposal Loan and Grant ProgramCount of WIFIACount of CWSRFCount of IRWMCount of Prop 1 Water BondCount of SDWSRFHigh 6 1 8 8 2 8 8 6Low 688 28 8 6Medium 233 33 3Grand Total 14 1 19 19 7 19 19 12Page 424 of 465
Project Type Community RTP ID # Project Name Project Description Project Type 2023 Cost Estimate 2023 Time HorizonTCC:Project DevelopmentTCC:PlanningTCC:ImplementationCFI RRGPMonarch Butterfly and Pollinator RescueWildlife Corridor and Fish PassageCMAQ LTCAP ATP FTA HSIP SS4AActive TransportationGrover Beach STH-AT1-1003 Beach Cities Trail: Boardwalk Dune Trail Construct bike/ped trail Class I 15,300,000$ Unconstrained X X XXXXXXActive TransportationSan Luis ObispoCEN-AT3-1006 Broad St. Median Improvements Install landscaped medians on BroaLivability 3,169,650$ By 2035 X XActive TransportationPaso Robles NTH-AT1-1004 Creekside Bike Path: Phase 1 and 2 Construct path: Nicklaus to Old S. R Class I 3,600,000$ Unconstrained X X X X X X X XActive TransportationSan Luis ObispoCEN-ATP-2324Froom Ranch Frontage & Streetscape ImprovementsInstall sidewalks on west side and median between Irish Hill Plaza and Calle Joaquin.Safety 932,250$ By 2028 X XXXXActive TransportationSan Luis ObispoCEN-ATP-2316 Higuera Protected Bike LanesInstall Class IV bikeways along Higuera from Marsh to southern City LimitsClass IV 8,817,000$ By 2045 X X X X X X XActive TransportationPaso Robles NTH-AT2-1401 Huer Huero Creek Trail Construct Class II bike lanes Class II 7,818,300$ by 2045 X X X X X X XActive TransportationTempleton NTH-AT2-1008Las Tablas Rd. Class II bike lanes: US 101 to Old County Rd.Construct Class II bike lanes Class II 3,060,000$ Unconstrained X X X X X X XActive TransportationSan Luis ObispoCEN-ATP-2309 Los Osos Valley Road Protected Bike LanesInstall Class IV bike lanes along LOVR between Diablo and S. HigueraClass IV 3,750,250$ By 2028 X X X X X X XActive TransportationSan Luis ObispoCEN-ATP-2318 Madonna Rd. - Class IV - Madonna Inn to Higuera Av On Madonna Ave. install Class IV froClass IV 1,864,500$ By 2035 X X X X X X XActive TransportationPaso Robles NTH-ATP-2341 N. River Rd. Class I trail multi-use paved trail fro Class I 3,214,500$ By 2028 X X X X X X XActive TransportationPaso Robles NTH-AT3-1902Niblick Rd. Corridor enhancements, operational improvements, Complete StreetsTransportation demand management improvementsLivability 17,257,000$ By 2035 X X X X XActive TransportationSan Luis ObispoCEN-ATP-2314 Oceanaire Neighborhood SRTS Install neighborhood greenways witClass III 214,300$ By 2028 X X X X XActive TransportationPaso Robles NTH-ATP-2342 Paso Robles Eastside Grand Loop Complete gaps in the Grand Loop BClass I 11,187,000$ By 2035 X X X X X X XActive TransportationSan Luis ObispoCEN-AT1-1012 Railroad Safety Trail (Phase 7): Bike connection southConstruct Class I bike path and ped Class I 3,169,650$ By 2035XXXXXXXXActive TransportationSan Luis ObispoCEN-AT1-1016 Railroad Safety Trail: bike bridge crossing at IndustriaConstruct bike bridge across UPRR tClass I 3,909,150$ By 2045XXXXXXXXActive TransportationGrover Beach STH-AT2-1005 S. 4th St. bike lanes: Grand Ave. to city limits Restripe to provide Class II/Class IV Class II 45,000$ Unconstrained X X XXXXXXActive TransportationSan Luis ObispoCEN-ATP-2312 South of Broad St. and Santa Barbara Ave. ProtectedInstall Class IV bikeway on Santa Ba Class IV 4,599,000$ By 2045 X X X X X X XActive TransportationSan Luis ObispoCEN-ATP-2313 Tank Farm Road Complete Street Convert from 5-lane to 3-lane, add CClass IV 1,533,000$ By 2045 X X X X X X XActive TransportationGrover Beach STH-ATP-2303 The Pike Complete Street Improvements striping, bike lanes SRTS/Livability 93,225$ By 2035 X X XXXXXXHighway Templeton NTH-MHWY-2306 Interchange Improvements at Las Tablas Rd Phase 3 Widening to 5 lanes (Bridge Removal and r 22,995,000$ By 2045XXXX XHighway Nipomo STH-MHWY-2307 Interchange Improvements at Willow Rd US 101 NB & SB ramp signalization 2,734,600$ By 2035 X X XHighway Templeton NTH-MHWY-2304 Las Tablas Rd Interchange ImprovementsOn Las Tablas Rd from Bennett Way to US 101, widen US 101 SB off-ramp and add westbound lane3,107,500$ By 2035 X XHighway Paso Robles NTH-HWY-1001 SR 46E / Union Rd. improvements (Phase 1)Construct overcrossing; realignment, vertical sight distance improvements, channelization & bike lanes/sidewalks on Union Road from Ardmore Road to Barney Schwartz Park52,500,000$ by 2028 X X X XHighway Paso Robles NTH-MHWY-1003 SR 46E / Union Rd. improvements (Phase 2) Construct Phase 2 improvements: new interchange15,330,000$ by 2045 X XHighway Atascadero NTH-MHWY-1005 US 101 / Del Rio Rd. I/C modificationsConstruct interchange improvements in association with developments7,000,000$ By 2028 X XHighway Templeton NTH-MHWY-1024 US 101 / Main St. I/C improvementsReconstruct interchange and widen Main St. from US 101 to Creekside Ranch Rd.22,374,000$ By 2035 X XHighway San Luis ObispoCEN-MHWY-1904 US 101 / Prado Rd. I/C Improvements (Phase 2)Construct SB off ramp and on ramp; SB auxiliary lane btw Madonna Rd. to Prado Rd.12,430,000$ By 2035 X XHighway San Luis ObispoCEN-MHWY-1402US 101 / Prado Rd. I/C and NB auxiliary lane (Phase 1)Construct Prado Rd. overcrossing; NB auxiliary lane. Extend Prado Rd. east to Froom Ranch Way; construct bike lanes, sidewalks.63,750,000$ By 2028 X X XHighway Paso Robles NTH-MHWY-1019 US 101 / SR 46W I/C construct two roundaboutsOperational improvements: modify interchange, EB and WB roundabouts (Phase 3)21,752,500$ By 2035 X X XHighway Arroyo Grande STH-MHWY-2313 US 101 Traffic Way/El Campo Interchange Closure of SB Fair Oaks off-ramp & Traffic Way NB & SB ramps, and all at-grade access points between Traffic Way and Los Berros Road and construct new interchange in the vicinity of El Campo/Traffic Way. 99,645,000$ By 2045 X XNon-Highway Paso Robles NTH-RORS-2338 Airport Road extension North Chandler RanchExtend Airport Road as 2-lane arterial from Linne Rd. to Union Rd.3,066,000$ by 2045 X XPage 425 of 465
Non-Highway Templeton NTH-MHWY-1033Bennett Way connection/ frontage road: Templeton Hills Rd. to Vineyard Dr.Connect Bennett Way between Templeton Hills Road and Vineyard Drive5,593,500$ By 2035 X XNon-Highway San Luis ObispoCEN-RORS-2343 Broad St/Tank Farm Rd Intersection ImprovementsAdd NB right turn lane, WB right turn lane, and ped/bike crossing enhancements.2,299,500$ By 2045 X X X XNon-Highway San Luis ObispoCEN-RORS-1407 Buckley Rd. widening: Thread Ln. to Buttonwood WyWiden Buckley Rd. to provide paved shoulders, cen 1,988,800$ By 2035 X XNon-Highway San Luis ObispoCEN-RORS-1012 Buckley Rd. widening: Vachell Ln. to Broad St.Widen to three lanes between Hoover St. and Broad St.9,964,500$ By 2045 X XNon-Highway Paso Robles NTH-MSE2-1002Creston Rd.: Niblick Rd. to Meadowlark Dr. (Phase 3)Install traffic-calming and intersection improvements- roadway diet and signals4,313,210$ By 2035 X X XNon-Highway Paso Robles NTH-MSE2-1006 Creston Rd.: South River Rd. to Niblick Rd.Streetscape enhancements and pedestrian crossing improvementsLivability 10,000,000$ By 2028 X X X XNon-Highway San Luis ObispoCEN-RORS-2339 Horizon Lane ExtensionExtend Horizon Ln between Buckley and Tank Farm as commercial collector w/ roundabout at Tank Farm7,665,000$ by 2045 X XNon-Highway San Luis ObispoCEN-RORS-2344Johnson Ave/Orcutt Rd Roundabout Install roundabout3,066,000$ After 2045 X XXNon-Highway Templeton NTH-RORS-1411 Las Tablas Rd. at Florence St. ImprovementsTraffic signal, ADA ramps, and left-turn lane at Las Tablas Rd. at Florence St.807,950$ By 2035 X X X XNon-Highway San Luis ObispoCEN-RORS-2345Los Osos Valley Rd/Auto Park Wy Intersection ImprovementsInstall traffic signal, median refuges, hi-vis crosswalks and bicycle protected intersection element1,000,000$ By 2028 X X X XNon-Highway Nipomo STH-RORS-1417North Frontage Rd. extension: Sandydale Rd. to Summit Station Rd.Extend North Frontage Rd. from Sandydale Rd. to Summit Station Rd.17,394,568$ By 2045 X XNon-Highway San Luis ObispoCEN-RORS-1004Orcutt Rd. widening: Johnson Ave. to Tank Farm Rd. (Phase 1)Widen road to three lanes with Class II bike lanes and sidewalks3,057,780$ By 2035 X X X XNon-Highway San Luis ObispoCEN-RORS-1002Prado Rd. Bridge Replacement & Multimodal Corridor EnhancementsReplace SLO Creek bridge w/ 6-lane bridge (2 each direction + turn lanes), sidewalks, Class IV bike lanes & construct 2nd NB turn lane from S. Higuera to Prado and a bicycle protected intersection12,000,000$ By 2028XXXXNon-Highway San Luis ObispoCEN-RORS-1003 Prado Rd. extension: South Higuera St. to Broad St.Construct extension as 4-lane road (plus median/LT lane), Class I shared-use paths, and new intersection at Broad St. & Prado Rd. 51,948,771$ By 2045 X XNon-Highway Nipomo STH-RORS-2328 Roadway Extension of Hetrick RdExtend Hetrick Rd from Glenhaven Place to Pomeroy Rd to two travel lanes and 8' shoulder3,832,500$ After 2045 X XNon-Highway Nipomo STH-RORS-2326 Roadway Extension of North Frontage RdExtend North Frontage from Sandydale Dr to Willow Rd9,944,000$ By 2035 X XNon-Highway San Luis ObispoCEN-RORS-1009Santa Fe Rd. extension: Santa Fe Rd. to Tank Farm Rd.Extend Santa Fe Rd north w/ new bridge over creek and roundabout intersection at Tank Farm/Santa Fe3,822,225$ By 2035 X X XNon-Highway San Luis ObispoCEN-RORS-1901 Santa Fe Rd. extension: south of Tank Farm Rd.Realign and extend Santa Fe Rd. from Hoover Ave. to Tank Farm15,330,000$ by 2045 X XNon-Highway Paso Robles NTH-MSE2-1004South River Rd. / Charolais Rd. roundabout Construct roundabout2,486,000$ By 2035 X XXNon-Highway San Luis ObispoCEN-RORS-1011 Tank Farm Rd. widening: Higuera St. to Broad St.Widen to five lanes with Class II bike lanes & Class I paths between Horizon and Santa Fe28,283,850$ After 2045 X X XXTransit Countywide Cashless Fare System Conversion (further study is required) 550,000$ XX X XXTransit Grover Beach Grover Beach Service Addition South County Transit provide service to Urban Reserve (Strawberry Field) *When working with development earXXXXX XXTransit Nipomo Nipomo Service Addition RTA provide service to Dana Reserve *working with*When working with development earXXXXXXTransit North County North County Charging Facility Charging facility at 1735 Paso Robles St., Paso Ro1,000,000$ XXXXXXXTransit Paso Robles Paso Robles New Route Paso Express provide service to North Chandler Ran1,700,000$ X X X X X XTransit Paso Robles Paso Robles Service Addition Paso Express provide service to Beechwood develo *When working with development earXXXXXXTransit Paso Robles Paso Robles Service Addition Paso Express provide service to Olsen/South Chand*When working with development earXXXXXXTransit San Luis Obispo San Luis Obispo Service Addition SLO Transit provide an additional stop along Board *When working with development earXXXXXXTransit San Luis Obispo San Luis Obispo Service Addition SLO Transit provide access between Broad and Sou*When working with development earXXXXXXPage 426 of 465
CommunityRow LabelsCount of TCC:Project DevelopmentCount of TCC:PlanningCount of TCC:ImplementationCount of CFICount of RRGPCount of Monarch Butterfly and Pollinator RescueCount of Wildlife Corridor and Fish PassageCount of CMAQCount of LTCAPCount of ATPCount of FTACount of HSIPCount of SS4AArroyo Grande 1 1Atascadero 1 1Countywide 1 1111Grover Beach 4 4 4 4 4 3 1 4 3Nipomo 4 4 1 1 1 1North County1111 111Paso Robles 15 2 15 10 11 4 3 8 5Rural Central County22Rural South County111San Luis Obispo 22 2 22 12 4 10 8 11 9Templeton 6 6 2 1 2 1 3 1(blank) 2 2 2 2 2 2Grand Total 59 5 60 1 32 4 5 33 16 9 31 18Page 427 of 465
Column Grant TitleApplication DeadlinePre-Proposal/ Eligibilty DeadlineGrant Notes Additional Notes Grant LinkState Agency or DepartmentEst. Total FundingEst. Max Per AwardW Transformative Climate Communities (TCC) Round 5 PROJECT DEVELOPMENT Grant (FY 22-23)8/1/2023 7/3/2023 The Project Development Grants support disadvantaged communities by funding pre-development and basic infrastructure activities that advance the communities’ climate and community resilience goals and prepare them for future funding opportunities aligned with the TCC Program Objectives. Project Development Grants should respond to previous community planning efforts that identified priority projects and need additional project development and basic infrastructure support funding to get ready for future resilience funding.Project Areas must be designated as disadvantaged communities per the TCC Guidelines. The Guidelines contain multiple options for establishing Project Area eligibility. Project Areas for Project Development Grants must be contiguous and may be any size and shape. https://sgc.ca.gov/programs/tcc/resources/application.htmlStrategic Growth Council$9,800,000 $5,000,000 X Transformative Climate Communities (TCC) Round 5 PLANNING Grant (FY 22-23)8/1/2023 7/3/2023 Project Areas must be designated as disadvantaged communities per the TCC Guidelines. The Guidelines contain multiple options for establishing Project Area eligibility. Project Areas for Project Development Grants must be contiguous and may be any size and shape. Project Areas must be designated as disadvantaged communities per the TCC Guidelines. The Guidelines contain multiple options for establishing Project Area eligibility. Project Areas for Project Development Grants must be contiguous and may be any size and shape. https://sgc.ca.gov/programs/tcc/resources/application.htmlStrategic Growth Council$900,000 $300,000 Y Transformative Climate Communities (TCC) Round 5 IMPLEMENTATION Grant (FY 22-23)8/1/2023 3/31/2023 TCC Implementation Grants support an integrated set of projects within a neighborhood project area of approximately five to ten square miles. Projects must reduce greenhouse gas emissions significantly over time, leverage additional funding sources, and provide health, environmental and economic benefits to the community.Although the pre-proposal date has passed, this will grant will likely be available again next year, and is a great one to consider.https://sgc.ca.gov/programs/tcc/resources/application.htmlStrategic Growth Council$88,500,000 $29,500,000 Z Charging and Fueling Infrastructure (CFI) Discretionary Grant Program5/30/2023 State governmentsCity or township governmentsCounty governmentsPublic and State controlled institutions of higher educationOthers (see text field entitled "Additional Information on Eligibility" for clarification)Special district governmentsPublic housing authorities/Indian housing authoritiesNative American tribal governments (Federally recognized)The Charging and Fueling Infrastructure Discretionary Grant Program (CFI Program) is a new competitive grant program created by President Biden's Bipartisan Infrastructure Law to strategically deploy publicly accessible electric vehicle charging and alternative fueling infrastructure in the places people live and work, urban and rural areas alike, in addition to along designated Alternative Fuel Corridors (AFCs). CFI Program investments will make modern and sustainable infrastructure accessible to all drivers of electric, hydrogen, propane, and natural gas vehicles. This program provides two funding categories of grants: (1) Community Charging and Fueling Grants (Community Program); and (2) Alternative Fuel Corridor Grants (Corridor Program). The Bipartisan Infrastructure Law provides $2.5 billion over five years for this program. This first round of funding makes $700 million from Fiscal Years 2022 and 2023 funding available to strategically deploy electric vehicle (EV) charging infrastructure and other fueling infrastructure projects in urban and rural communities in publicly accessible locations, including downtown areas and local neighborhoods, particularly in underserved and disadvantaged communities.https://www.fhwa.dot.gov/environment/cfi/Department of Transportation$400,000,000 N/AAA Regional Resilience Planning and Implementation Grant Program (RRGP)7/19/2023 ASAP RRGP will support regions in advancing climate resilience through three major activities: capacity-building, planning, and project implementation. Support regional projects aligned with ICARP priorities that improve regional climate resilience and reduce climate risks from wildfire, sea level rise, drought, flood, increasing temperatures, and extreme heat events.Support projects or actions that address the greatest climate risks in the region, particularly in the most vulnerable communities.Address gaps in climate resilience funding and support sustainable and cohesive climate resilient projects.https://opr.ca.gov/climate/icarp/grants/regional-resilience-grant.htmlGovernor's Office of Planning and Research$21,300,000 $3,000,000 AB Monarch Butterfly and Pollinator RescueOn-going Provide grants for the restoration or enhancement of California prairie and other appropriate breeding habitat for monarch butterflies and pollinators on private and public lands.Provide grants for the restoration or enhancement of overwintering monarch butterfly habitat on private and public lands.Provide technical assistance to grant recipients, including farmers and ranchers, regarding restoration and enhancement of breeding, overwintering, and other appropriate monarch butterfly habitat.Provide grants for seasonal or temporary habitat improvements.Provide block grants in which suballocations are made by the grant recipient, with the approval of the Wildlife Conservation Board.Grover Beach projectshttps://wcb.ca.gov/Programs/PollinatorsAC Wildlife Corridor and Fish PassageOn-going ASAP Includes planning and implementation projects. Implementation projects should be shovel ready, and the application must include intermediate or advanced design plans (e.g., design plans at ~65% level of development or higher). Implementation projects may include development of final design plans and permitting as project activities. Implementation projects must have completed CEQA compliance prior to consideration for funding at a Board meeting.Would need to consider adding a wildlife overcrossing or undercrossing to bridge projecthttps://wcb.ca.gov/GrantsWildlife Conservation Board$5,000,000 Page 428 of 465
AD Congestion Mitigation and Air Quality Improvement (CMQA)Call for projects Summer 2023Yes The main goal of the CMAQ program is to fund transportation projects that reduce regulated emissions associated with carbon monoxide, ozone and particulate matter pollution in nonattainment and maintenance areas, often through congestion mitigation techniques. In addition to reducing regulated emissions, congestion relief can reduce travel delays, engine idle time and unproductive fuel consumption. So even though reducing greenhouse gas emissions is not a goal of the CMAQ program, such reductions may be achieved as an ancillary benefit.Funnels through SLOCOG; Worth it if you can make a case for the the cost-effectiveness of the proposed project in terms of cost per pound (or ton) of pollutants reduced. You can use the provided calculator tool to assess project viability before starting an application (must have MS Access to access the calculator tool, FYI).https://ww2.arb.ca.gov/resources/documents/congestion-mitigation-and-air-quality-improvement-cmaq-programDepartment of Transportation$2,587,000 AE Local Transportation Climate Adaptation Program (LTCAP)5/17/2023 The Commission is required to develop program guidelines for the selection of projects that meet all of the following criteria:Increase climate resiliency and protect at-risk transportation infrastructure using California’s climate projections, as specified in Planning and Investing for a Resilient California: A Guidebook for State Agencies;Are consistent with state, regional, or local climate adaptation reports, plans, and the Adaptation Planning Guide, including meeting the climate resiliency goals of the region where the project is located;Include outreach conducted by the local agency to under-resourced and vulnerable communities related to the proposed project, consistent with the California State Adaptation Strategy; andIncorporate environmental equity, protects vulnerable and under-resourced communities, and provide meaningful benefits to underserved communities, consistent with the California State Adaptation Strategy.https://catc.ca.gov/programs/local-transportation-climate-adaptation-programCalifornia Transportation Commission (CTC)$296,500,000 AF Active Transportation Program (ATP)Likely June 2024 Likely March 2024 Pursuant to statute, the purpose of the program is to encourage increased use of active modes of transportation, such as biking and walking. The goals of the ATP are to:•Increase the proportion of trips accomplished by biking and walking.•Increase the safety and mobility for nonmotorized users.•Advance the active transportation efforts of regional agencies to achieve greenhouse gas reduction goals •Enhance public health, including reduction of childhood obesity through the use of programs including, but not limited to, projects eligible for Safe Routes to School Program funding.•Ensure that disadvantaged communities fully share in the benefits of the program.The Active Transportation Plan include, but are not limited to, increasing the proportion of trips accomplished by walking and biking, increasing the safety and mobility of non-motorized users, advancing efforts of regional agencies to achieve greenhouse gas reduction goals, enhancing public health, and providing a broad spectrum of projects to benefit many types of users including disadvantaged communities.https://catc.ca.gov/programs/active-transportation-programCalifornia Transportation Commission (CTC)$400,000,000 AG Federal Transit Administration (FTA) GrantsVaries Varies In addition to the CMAQ grant, there are other FTA grants that are a good match for public transportation projects. Specifically, the Accelerating Innovative Mobility (AIM) grant would be a good fit for the Cashless Fare System project.The primary objectives of AIM are to:Foster innovative transit technologies, practices and solutions that advance the state of practice for public transportation in the U.S.Leverage private sector investments in mobility for the benefit of transitEnsure innovative technologies and practices permit interoperability across systems and modesShare results of innovative mobility solutions with the transit industry and stakeholdershttps://www.transit.dot.gov/grantsFederal Transit AdministrationVariesAH Local Highway Safety Improvement Program (HSIP)Likely September 2024HSIP funds are eligible for work on any public road or publicly owned bicycle or pedestrian pathway or trail, or on tribal lands for general use of tribal members, that improves the safety for its users.Past cycle approved projects: https://dot.ca.gov/programs/local-assistance/fed-and-state-programs/highway-safety-improvement-program/approved-project-listshttps://dot.ca.gov/programs/local-assistance/fed-and-state-programs/highway-safety-improvement-program/apply-nowCaltrans $210,000,000 AI Safe Routes for All (SS4A) 7/10/2023 The program supports the development of acomprehensive safety action plan (Action Plan) thatidentifies the most significant roadway safety concernsin a community and the implementation of projectsand strategies to address roadway safety issues. ActionPlans are the foundation of the SS4A grant program.SS4A requires an eligible Action Plan be in placebefore applying to implement projects and strategies.The SS4A program provides funding for two types ofgrants: Planning and Demonstration Grants & Implementation GrantsEligible Applicants include a metropolitan planningorganization (MPO); a political subdivision of a State orterritory; a federally recognized Tribal government; anda multi-jurisdictional group of entities described in anyof the aforementioned three types of entities.https://www.transportation.gov/grants/SS4ADepartment of Transportation$1,177,213,000 $25,000,000 Page 429 of 465
Column Grant TitleApplication DeadlinePre-Proposal/ Eligibilty DeadlineGrant Notes Additional Notes Grant LinkState Agency or DepartmentEst. Total FundingEst. Max Per AwardW Regional Resilience Planning and Implementation Grant Program (RRGP)7/19/2023 ASAP RRGP will support regions in advancing climate resilience through three major activities: capacity-building, planning, and project implementation. Support regional projects aligned with ICARP priorities that improve regional climate resilience and reduce climate risks from wildfire, sea level rise, drought, flood, increasing temperatures, and extreme heat events.Support projects or actions that address the greatest climate risks in the region, particularly in the most vulnerable communities.Address gaps in climate resilience funding and support sustainable and cohesive climate resilient projects.https://opr.ca.gov/climate/icarp/grants/regional-resilience-grant.htmlGovernor's Office of Planning and Research$21,300,000 $3,000,000 X Drinking Water State Revolving Fund (DWSRF)Rolling This program, managed by the Environmental Protection Agency (EPA), provides financial support to water systems and states to improve drinking water infrastructure. Loans are provided to eligible water systems for infrastructure improvements, and each state has considerable flexibility to determine how and where it directs these funds.https://www.waterboards.ca.gov/drinking_water/services/funding/SRF.htmlUnited States Environmental Protection AgencyY Water and Waste Disposal Loan and Grant ProgramRolling This is a program managed by the USDA Rural Development. It provides funding for clean and reliable drinking water systems, sanitary sewage disposal, sanitary solid waste disposal, and storm water drainage to households and businesses in eligible rural areas. Current interest rates for 3rd quarter FY2023, effective April 1, 2023: Poverty: 2.250% Intermediate: 3.000% Market:3.750%Speak to a program specialist before attempting to fill out any forms or applications. Contact for SLO County:Al Correale, Santa Maria | al.correale@usda.gov | (805) 863-9938Marcos Ramos, Santa Maria | marcos.ramos@usda.gov | (805) 863-9922https://www.rd.usda.gov/programs-services/water-environmental-programs/water-waste-disposal-loan-grant-program/caUS Department of AgricultureVariesZ Water Infrastructure Finance and Innovation Act (WIFIA) ProgramRolling Yes This program, also managed by the EPA, accelerates investment in water infrastructure by providing long-term, low-cost supplemental credit assistance for regionally and nationally significant projects, including clean drinking water projects.https://www.epa.gov/wifia/about-wifiaUnited States Environmental Protection AgencyVariesAA Clean Water State Revolving Fund (CWSRF)6/23/2023 The CWSRF is a federal program that provides financial assistance to states and local governments to improve their wastewater infrastructure. The fund is administered by the U.S. Environmental Protection Agency (EPA) and is funded by a combination of federal and state funds.https://www.epa.gov/cwsrfUnited States Environmental Protection Agency$163,000,000,000 AB Integrated Regional Water Management (IRWM) Grant ProgramsRound 2 was 2/1/2023; Keep an eye out for the next roundThis program, managed by the California Department of Water Resources, funds projects to improve water quality, restore ecological systems, and improve local water security. Sewer infrastructure projects may be eligible if they meet these broad goals.https://water.ca.gov/work-with-us/grants-and-loans/irwm-grant-programsCalifornia Department of Water Resources$193,000,000 Page 430 of 465
AC Proposition 1 Water BondThe last round was 3/31/2023; Keep an eye out for possible future roundsThis bond provides funding for various water-related programs and projects throughout California, including water recycling, groundwater sustainability, and watershed protection projects. It may cover certain types of wastewater and sewer infrastructure.https://bondaccountability.resources.ca.gov/p1.aspxCalifornia Natural Resources Agency$7,545,000,000 AD Safe Drinking Water State Revolving Fund (SDWSRF)Rolling The Safe Drinking Water State Revolving Fund (SDWSRF) is a state revolving fund (SRF) that provides low-interest loans to public water systems in California to improve their drinking water infrastructure.Projects that typically qualify for funding from the Drinking Water State Revolving Fund (DWSRF) in California:Treatment projects: Projects to install or upgrade facilities to improve drinking water quality to comply with Safe Drinking Water Act (SDWA) regulations.Transmission and distribution projects: Rehabilitation, replacement, or installation of pipes to improve water pressure to safe levels or to prevent contamination caused by leaky or broken pipes.Source projects: Rehabilitation of wells or development of eligible sources to replace contaminated sources.Storage projects: Installation or upgrade of finished water storage tanks to prevent microbiological contamination from entering the distribution system.Consolidation projects: Interconnecting two or more water systems.Creation of new systems: Construct a new system to serve homes with contaminated individual wells or consolidate existing systems https://www.epa.gov/dwsrfUnited States Environmental Protection Agency$6,500,000,000 Page 431 of 465
Funder name Opportunity nameFunder Full proposal deadlineOpportunity Amount Opportunity website Notes USDA: Rural Housing Service (RHS)Rural Housing Preservation Grant (346799) 5-Jun-23 Up to US $18,500,000 https://www.grants.gov/web/grants/view-opportunity.html?oppId=346799Rural Housing Preservation Grant (346799)US HUD: Office of Community Planning and Development (CPD) Youth Homeless Demonstration Program 28-Jun-23 US $600,000 - US $15,000,000 https://www.grants.gov/web/grants/view-opportunity.html?oppId=347488Housing Authority of San Luis ObispoProject Based Voucher (PBV) and/or Housing Choic Vouchers (Section 8) Rolling https://www.haslo.org/They offer vouchers so folks can apply for housing. This is usually a subsidy porgram that can be attached to a grant applcation. US HUD: Office of Community Planning and Development (CPD)CDBG - There are several programs thru CDBG Jan-24 $500,000 to $5,000,000https://www.hudexchange.info/programs/cdbg/These are good ones - We just funded a St. Helena program with CDBG money US HUD: Office of Community Planning and Development (CPD) HOME Investment Partnership Program Jan-24 $500,000 to $10,000,000https://www.hud.gov/program_offices/comm_planning/homebuilding, buying, and/or rehabilitating affordable housing for rent or homeownership or providing direct rental assistance to low-income people. HOME is the largest federal block grant to state and local governments designed exclusively to create affordable housing for low-income households.Houing & Community DevelopmentTransit-Oriented Development (TOD) Housing ProgramRolling Dependent https://www.hcd.ca.gov/grants-and-funding/programs-archived/transit-oriented-development-housingEligible Applicants shall be one of the following: Developers for Rental Housing Development Projects,Localities (cities and counties) and transit agencies for Infrastructure Projects.Page 432 of 465
Page 3 of 3
2023 HIP Appendix E
Page 433 of 465
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.
1. 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.
2. 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.
2023 HIP Appendix E
Page 434 of 465
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.
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.
3. 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 Section B
for local programs and policies for Atascadero’s 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.
2023 HIP Appendix E
Page 435 of 465
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.).
4.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.
2023 HIP Appendix E
Page 436 of 465
Our region has strategic goals for the future of housing and infrastructure, but they can
only be achieved through the decisions and actions of organizations and stakeholders. The
stakeholder meetings are designed to have honest conversations about what each
organization can and needs to do to realize those goals. Key stakeholders include:
HIP Steering Committee
Formed to oversee the vision for the HIP Outreach Strategy and to bring leaders in each of these areas
together, aligning and integrating the various interests that will lead to action on the region’s priorities.
Regional Managers/ Key Staff
A key driving force behind developing this plan has been regional leadership, including eight City
Managers, County Administrative Officer, SLOCOG Executive Director (and key directors from their
organizations).
Elected Officials
Two City Council Members with knowledge of regional differences will bring the various perspectives and
concerns voiced by their respective constituents for this Steering Committee. The full 40 elected officials
within the region will have an opportunity to hear about the plan through public updates to SLOCOG
Board as well as through presentations of the recommended HIP to their Councils and Boards in
Summer 2023.
Building & Development Cluster
Leaders in the building and development industry that convene quarterly with the goal of regional
coordination focused on aligning housing and infrastructure needs to create a strong local economy.
Housing Advocacy Group
Organizations and individuals that have significant influence in the community, with representation from
the non-profit builders, local chambers of commerce and various advocate organizations.
Housing Action Team
Existing work group made up of planning/ community development staff from Cities, County, and
SLOCOG.
Community Stakeholders
The broader community will be engaged in partnership with the SLO Chamber of Commerce Housing
Summit in Spring 2023. Feedback from this event will be brought to the HIP Steering Committee to
discuss and adjust the communications plan accordingly.Page 437 of 465
Page 438 of 465
Council Presentation
City of San Luis Obispo 7.11.23
Presentation Agenda
2
1.Background & Highlights
2.Stakeholder Engagement
3.Project Overview & Key Findings
4.Future Phases of Regional Strategy
5.Recommended Support
Photo from MFI Design
San Luis Obispo Housing Highlights
Housing & Infrastructure:
the basic building blocks essential to supporting the workforce needed to fuel the expansion of
existing companies, proliferation of start-ups and overall economic resilience of our communities.
➔Preserved 68 residential units for very low
income levels through creative funding &
partnerships
➔Pro-housing culture in council and staff
➔SLO Water Resource Recovery Facility (WRRF)
upgrade allows recovery of resources traditionally
classified as waste
➔214 affordable units under construction and
another 257 affordable units entitled
➔Streamlined Discretionary Review
STATE
Sets broad policy, determines
growth projections (RHNA)
and provides grant funding
BUILDING
Build units & infrastructure to
meet community needs
DEVELOP & DESIGN
Develop land, design housing
to standards and assemble
financing structures
SLOCOG
Divides RHNA between
county/cities, prioritizes
funding
COUNTY & CITIES
Control land use planning
and policies that direct
housing production and
direct funding to
community benefits
AGENCIES’
PLANNING &
PERMITTING
As a subset of Cities/County,
outline standards + process,
approve development
Major Housing Roles
Housing & Infrastructure Regional Phased Strategy
Our region believes that a united framework is necessary to unlock our potential to develop an adequate supply of housing and resilient infrastructure that support our economic prosperity.
Regional
Collaboration
Align Land Use
Planning
Documents
Strategic Action
Plan
Goal 1 Goal 2 Goal 3
Key Regional Steps
●Inventory infrastructure
barriers to and priorities for
housing
●Identify funding to implement
infrastructure needs
●Develop foundational
information for the future
2027 RHNA
Plan’s
Purpose
6/23 -8/23
Phase 4 -Community
Support
5/23-6/23
Phase 3 -Setting
Priorities
2/23 -4/23
Phase 2 -
Foundational
Collaboration
10/22 -1/23
Phase 1 -Project
Architecture
Stakeholders Engagement
Builders &
Developers
20-35 attendees,
3 meetings
Builders,
Developers,
Architects, Real
Estate, etc.
Housing
Advocacy
Group
15-20 attendees,
2 meetings
Nonprofit
builders,
Chambers, HBA,
LWV
Housing
Action
Team
15-20 attendees,
monthly
meetings
City/County/COG
Planners and
Directors
Regional
Managers /
Key Staff
30 attendees, 3
meetings
City/County/COG
Leaders
City &
County
Elected
Officials
Phases
1, 3 & 4
Phase
4
Phases
2 & 3
Phases
2 & 3
Phases
2 & 3
Steering Committee
10 members, mix of public and private experts
City Manager, Elected Officials, County Regional Planner, Developer, Architect, Engineer, Advocate, Water Resources, Cal Poly CIP
HIP Presentations
June 7th SLOCOG Board of Directors
Action: Receive update; Request staff present HIP to agencies
June 27th City of Morro Bay Council
July 11th City of San Luis Obispo Council
City of Atascadero Council
July 18th City of Paso Robles Council
City of Pismo Beach Council
July 24th City of Grover Beach Council
July 25th City of Arroyo Grande Council
August 2nd SLOCOG Board of Directors
Action: Adopt plan
August 8th County Board of Supervisors
Action: Accept adopted plan
HIP Toolkit
HIP Components What it informs
Housing Highlights Communication tool: Understanding the need for
housing, affordability, and opportunities
Data and Project Inventory Infrastructure barriers to housing
Mapping Tool Living strategic analysis tool
Show how housing-infrastructure interrelates
Efficiency Analysis Housing Efficient Areas in HIP
Infrastructure Prioritization Region’s highest priority projects to unlock housing
Funding Strategies Assessment Funding the region could pursue for priority
infrastructure
Affordable-by-Design Study Menu of possible policies to increase housing
attainability
Collection of 440 projects across the County
and Seven Cities
Considered Housing Efficient if area has:
➔Transportation Access
➔Water Capacity
➔Wastewater Capacity
Project Prioritization considered:
(1) if project is needed for new housing,
(2) benefit/cost (investment cost per additional potential
housing units served),
(3) barriers to development
Regional Infrastructure
Projects & Data
Housing Efficient Areas
Low Priority
Medium Priority
High Priority
Infrastructure Prioritization
80
Housing
Efficient
Projects
Key Findings
Estimate
($ millions)Projects
Total Estimate $ 1,015 80
High Priority $ 348 54
Medium Priority $ 385 10
Low Priority $ 281 16
WATER $ 396 21
TRANSPORTATION $ 618 59
Broad St/Tank Farm Rd Intersection, SLO Water/Sewer
Improvements, Cal Poly Water Reclamation Facility
North Coast
Central County
South County
Snapshot of Prioritized Projects
North County
Central Coast Blue, South County Transit connection to
Urban Reserve, Interchange Improvements at Willow Rd
Morro Bay water/wastewater improvements, Cayucos
Wastewater
Water treatment facility (PFAs), North County Charging
Facility, 101/Del Rio interchange improvements
Funding Priority Infrastructure
Current Findings:
●Assessed the list of HIP projects to determine estimate of funding requirements
●Map of funding needs to prioritized projects
●List of existing grant funding opportunities
Next Steps:
●Create funding hierarchy based on suitability for each HIP project
●Develop grant calendar with deliverable and submission schedule
●Identifying other broad based funding mechanisms
●Calculating funding gap for each HIP project
●Proposing strategies to bridge the funding gap
Rental:Market is close, regulatory change could help
ABD is possible with smaller units and cost-effective development
For-Sale: Market not close, longer-term approach needed
Increasing housing production overall can help bring supply and demand into balance, make ABD achievable over the longer term
Affordable-by-Design Study
Study Elements:
●Identified common physical
characteristics for ABD housing
●Financial feasibility analysis of
“prototypical” development
examples that could work in
regions
●Identified regulatory barriers to
development of ABD housing
●Highlighted potential policy
measures to support ABD
housing
Next Steps:Deeper analysis of up to 6 policies and localized implications
➔Streamline development review and permitting
➔Align development standards to support ABD housing
➔Allow ABD housing in cost-effective locations
➔Adjust fee rates and policies to incentivize ABD housing
Potential Policy Options
Study will include a menu of possible policies for consideration:
Future Phases of Regional Strategy
Our region believes that a united framework is necessary to unlock our
potential to develop an adequate supply of housing and resilient infrastructure that support our economic prosperity.
Regional
Collaboration
Align Land Use
Planning
Documents
Regional Housing
& Infrastructure
Plan
Goal 1 Goal 2
Each agency and
stakeholder
voluntarily takes
actions
FutureGoal 3
Council Action
Photo from MFI Design
Consider support for the Regional Housing
and Infrastructure Plan, as a recommitment
to the 2020 Regional Compact.
THANK YOU