HomeMy WebLinkAboutItem 13 - REGIONAL INFRASTRUCTURE AND AFFORDABLE HOUSING STRATEGIC ACTION PLAN COUNTYWIDE COMPACTItem 13
GtT Y O fiCouncil Agenda Report
ti
Department Name: City Administration
Cost Center: 1001
For Agenda of: March 17, 2020
Placement: Business
Estimated Time: 20 Minutes
FROM: Derek Johnson, City Manager
Prepared By: Ryan Betz, Assistant to the City Manager
SUBJECT: RESOLUTION APPROVING AND AUTHORIZING THE MAYOR OR
DESIGNEE TO SIGN THE SAN LUIS OBISPO COUNTYWIDE REGIONAL
COMPACT
RECOMMENDATION
Adopt a Resolution approving and authorizing the Mayor or designee to sign the San Luis
Obispo Countywide Regional Compact: Regional Infrastructure & Affordable Housing Strategic
Action Plan (Attachment A).
DISCUSSION
Background
The San Luis Obispo County region is currently one of the least affordable places to buy a home
in the United States — recently reported as the 8th least affordable region in the Nation.
According to the National Association of Home Builders, only 20.9 percent of the area's share of
homes are affordable to a family earning the area's median income.' As stated in the County's
Housing Element of the General Plan (2014-2019), the chronic undersupply of housing
affordable and suitable for locally employed people has economic, social, and environmental
impacts. Providing an adequate supply and range of housing choices affordable to residents and
working families/individuals is a significant challenge in San Luis Obispo County region, and
requires the efforts of public agencies, private industries, residents, and working individuals to
overcome it.
Pursuant to State law, the State Department of Housing and Community Development (HCD)
determines the region's future housing needs by affordability level and directs the San Luis
Obispo Council of Governments (SLOCOG) to assign the required housing units to each of the
seven Cities and the County's unincorporated areas. This is known as the Regional Housing
Needs Allocation (RHNA) process. In December 2018, the SLOCOG Board accepted the State
HCD's final determination that the San Luis Obispo County region must plan for 10,810 new
housing units by 2028. Subsequently, in October 2019, the SLOCOG Board adopted the 2019
RHNA Plan, allocating the 10,810 new housing units across the eight local land use planning
agencies, generally based on each jurisdiction's proportional share of the region's population and
1 2019 Third Quarter Housing Opportunities Index.
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Item 13
jobs.2 Each of the seven cities and County are now required to identify adequate sites and plan
for its future housing needs as it updates its Housing Element by December 31, 2020.
Meeting the current and future RHNA cycles will require our communities to plan for additional
growth and prioritize investment in housing and infrastructure. The Governor and State
Legislature have enacted numerous bills that encourage local agencies to take actions to
streamline housing approvals and accelerate housing production.3 The Governor and numerous
legislators have expressed a need for urgent focus on California's housing affordability crisis.
Their decisions continue to prioritize the need for actions to address this complex challenge, such
as through their adoption of the FY 2019-20 State Budget that included $1.75 billion investment
to increase housing supply and hold local agencies accountable for meeting regional housing
goals.
Meeting the housing needs of the San Luis Obispo County region is a challenge shared by all
eight local land use jurisdictions and SLOCOG and will take collective actions to overcome.
With this great challenge also comes an opportunity for regional collaboration.
The proposed San Luis Obispo Countywide Regional Compact (Exhibit A to Attachment A) is
an aspirational document. It 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 County region's healthy, livable communities and thriving
economic opportunity.
The region's local agencies, building and development community, residents and workforce have
an opportunity to unite around six shared regional goals that provide a vision to guide
collaborative resolution of the underlying issues.
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.
z On October 2, 2019, the SLOCOG Board adopted the 2019 RHNA Plan, allocating the overall 10,810 units to each
jurisdiction as follows: Arroyo Grande — 692 units; Atascadero — 843 units; Grover Beach — 369 units; Morro Bay —
391 units; Paso Robles — 1,446 units; Pismo Beach — 459 units; San Luis Obispo - 3,354 units; and unincorporated
areas — 3,256 units.
3 While numerous other bills and actions were enacted, several key examples include: SB 330 Housing Crisis Act of
2019 aimed at accelerating housing production through various actions such as streamlining permitting and approval
processes; Various bills aimed at eliminating barriers to building accessory dwelling units; AB 1486 and AB 1255
related to inventorying and reporting surplus and excess local public lands; AB 72 modifying enforcement actions
against agencies that do not comply with RHNA.
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Item 13
Goal 3. Create Balanced Communities — We believe that our Region should encourage
new development that helps to improve the balance of jobs and housing throughout the
Region, providing more opportunities to residents to live and work in the same
community.
Goal 4. Value Agriculture & Natural Resources — We believe that our Region's unique
agricultural resources, open space, and natural environments play a vital role in
sustaining healthy local communities and a healthy economy, and therefore should be
purposefully protected.
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.
The Regional Compact is recommended for approval by the governing boards of all eight local
agencies and SLOCOG. Signatories to the Regional Compact commit to acting as partners in
aligning actions with these regional goals. The Regional Compact is an important first step that
will help to protect and enhance the region's communities, build critical infrastructure, protect
natural resources and create a forward -thinking future for the region. By taking collaborative
actions to further these goals, our region can solve critical issues and become a statewide leader
in sustaining vibrant communities. Additionally, given the State's pro -housing focus, the
Regional Compact shows the San Luis Obispo County region's intent to work collaboratively to
plan for our region's future and its growth. This may make the region more competitive for
housing and infrastructure funding opportunities.
The City is committed to working with the County, the seven local Cities, SLOCOG and key
stakeholders to supporting regional collaboration and development of a plan for action among
the region's local agencies. The County has taken a lead role in fostering collaboration among
the stakeholders including the allocation of resources to developing the Regional Infrastructure
and Affordable Housing Strategic Action Plan with stakeholders and include interagency
coordination and development of the region's first "regional chapter" common to all eight local
agencies' Housing Elements. County staff will continue to work closely with each agency's staff
and other key stakeholders as it moves both regional planning efforts forward.
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Item 13
Other Agency Involvement/Impact
Overcoming the challenges highlighted in this staff report will require a significant focus on
increasing regional collaboration related to affordable housing and the critical infrastructure to
support it. The following are anticipated dates for all nine local and regional agencies to approve
the Regional Compact, and pending approval by all, will culminate in a public signing event
(tentatively set for April 3rd).
Proposed Regional Compact Signatories
Anticipated Date of Regional Compact
Approval
County of San Luis Obispo
February 25, 2020
City of Grover Beach
March 2, 2020
City of Paso Robles
March 3, 2020
City of Pismo Beach
March 3, 2020
City of Arroyo Grande
March 10, 2020
City of Atascadero
March 10, 2020
City of San Luis Obispo
March 17, 2020
City of Morro Bay
March 24, 2020
San Luis Obispo Council of Governments
Aril 1, 2020
Policy Context
The City's General Plan includes policies and programs that support regional collaboration. Goal
1 of the Land Use Element discusses not only the City's growth management policies but
encourages regional planning and growth management and the preservation of open space
throughout the region (see Attachment B). The Circulation Element identifies ways in which the
City is to coordinate with county agencies on establishing county -wide trip reduction goals
(Program 2.2.1) and encourage transit throughout San Luis Obispo County to serve a broad range
of local and regional transportation needs (Policy 3.1.1). This includes the provision of housing
close to job centers.
As mentioned in the staff report, the City shares the burden of meeting the State's RHNA with
local cities and the County. The Housing Element is currently being updated to include a new
chapter that will outline regional housing goals and policies.
Regional collaboration also extends into water management. The Water and Wastewater Element
contains several policies and programs regarding the management, operation, maintenance, and
water quality of water resources within the region (Programs A 2.3.2, A 2.3.5, A 4.3.1). Program
A 6.3.1 states, "Work cooperatively with other San Luis Obispo County water agencies to
identify cooperative water efficiency measures that can be implemented in each jurisdiction."
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Item 13
The following table is one of the most compelling arguments for placing housing and jobs in San
Luis Obispo as it helps reduce Vehicle Miles Travelled (VMT) and overall GHG emissions.
incorporated
Arroyo Cira lido
OfficeResiderM; Man
Residential Household
" on
167,378.34 17,427.28
F'
Residential VMT per Off ice
* .
9.60 46,164_63
EmployeesVMT
fi"422
r
7.19
Ataseadero
392,368.04 27,408.52
14.32 96,104.44
8,965
10.72
Grover Beach
108,732.11 11.82038
9.20 26,169.97
3,231
9_19
Morro Bay
122,92711 11,677.00
10.53 29.377.59
3,756
7.82
Paso Robles
213,515_61 28,427. 22
7_S1 7$,226.27
14,903
S_25
PIsrno Beach
102,488.24 9"207.50
11.13 35.14034
4,946
7.25
San LUIS Dblspo
208,529.93 S0,407_S7
4.14 1-11,.217.08
34.671
4.07
Countyr rnrqjM1ftLqLand
AvI la Sea ch
U n i ncorporate+
12.16ME 1,662.83
7.92
6361.23
1,012
6.18
Carnbria
69,207.14
6,440.28
10.75
16.834_66
1,929
9.20
Cawuens
37X2.21
2,975.S9
12.94
6,141.32
554
11.09
Los Osos
179,226_20
15,072.42
11.89
27361M
1,812
15.0-;
Nlpomo
250,820_69
12,262.57
20.29
49,14152
2"490
19.74
oceann
66,045.65
5,&$S.44
11.62
15534.71
774
20.07
San Miguel
28,110.92
1,662.13
16.31
5,142.17
319
16_12
Santa MargariLa
22,881.44
1rA44.S2
17.76
4,421.29
328
1S_49
Shandon
54,289.65
907.60
59.92
i0,05i_50
99
i01,5-;
Templeton
70,266.49
6,667.+41
10.55
22,$85.00
-;"775
6.06
Non -Urban Areas
1r294,455.13
42,298.73
30.6D
324i053.82
19,727
lfi_44
tlnIncorporated Area
2r086,789.46
96,979.52
21.52
488,128.23
32,715
14_92
Mote 9: CfScs VMUtTrs raefJecttve of home to w * VMT.
Mote 2: Data is refiective of rrmadet year 2015.
Mate 3- Data is reffecttve of aw way taps
Mote 4: Wherr examining t_ovrgitudinat Errrptayer-Househofd Dynamics rLEHD) far traps wiltwn a 100 mites occurnng au cfe of the
comrurrurrity. Shandwr home to wu* VMT per emptayee was found to be 28-6_Other revtewred areas had sirn(ar outputs to those
reported from the traffic tirade+_
Public Engagement
The City remains committed to engaging with partners including the County, seven local Cities,
SLOCOG, and key stakeholders to develop the Regional Infrastructure and Affordable Housing
Strategic Action Plan and formulate recommendations for how to collaboratively carry out the
goals set forth in the Regional Compact. The public may submit comments prior to and during
the City Council meeting regarding this item.
CONCURRENCE
The Community Development Department concurs with the San Luis Obispo Countywide
Regional Compact: Regional Infrastructure & Affordable Housing Strategic Action Plan.
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Item 13
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: No Budget Year: 2019-20
Funding Identified: N/A
Fiscal Analysis:
Funding Sources
Current FY Cost
Annualized
On -going Cost
Total Project
Cost
General Fund
N/A
State
Federal
Fees
Other:
Total
N/A
Approval of the recommended resolution and Regional Compact will provide an aspirational
vision for local Cities, SLOCOG and the County to develop various planning documents,
strategies, and actions, aimed at increasing the affordability and production of housing.
Therefore, approving the resolution and recommendations will contribute towards a more
healthy, livable, prosperous and well -governed region. Longer term, the City will need to align
revenue with services as residential properties under the Master Tax Exchange Agreement do not
typically produce enough to cover capital and service costs.
ALTERNATIVES
Council could choose to not adopt a resolution approving and authorizing the Mayor or designee
to sign the San Luis Obispo Countywide Regional Compact: Regional Infrastructure &
Affordable Housing Strategic Action Plan. This is not recommended due to the many ways in
which this project helps fulfill the Major City Goal of Housing.
Attachments:
a - Resolution
b - LUE policies and programs supporting regional collaboration
Packet Page 152
Item 13
RESOLUTION NO. (2020 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ENDORSING AND AUTHORIZING THE
MAYOR OR DESIGNEE TO SIGN THE SAN LUIS OBISPO
COUNTYWIDE REGIONAL COMPACT
WHEREAS, the San Luis Obispo County region 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 significant regional issues: and
WHEREAS, California Government Code Section 65584 requires the San Luis Obispo
County region's local land use agencies to plan for their Regional Housing Needs Allocation
(RHNA); and
WHEREAS, the San Luis Obispo region's RHNA identifies 10,820 new housing units, of
which 3,354 units are allocated to the City of San Luis Obispo, by 2028 and future allocations as
determined by the California Department of Housing and Community Development; and
WHEREAS, the San Luis Obispo Countywide Regional Compact, attached hereto as
Exhibit A and incorporated herein by this reference and prepared by leaders from each of the
region's local agencies, creates a united regional framework to unlock the potential to develop an
adequate supply of housing and resilient infrastructure that support economic prosperity; and
WHEREAS, the regional goals set forth therein will help to protect and enhance our
communities, build critical infrastructure, protect natural resources, and create a forward -thinking
future for local communities in addition to underpinning the future Regional Infrastructure and
Affordable Housing Strategic Action Plan, creating compatibility among the eight local land use
agencies' Housing Elements, and driving future recommendations for collaborative actions.
17
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Item 13
Resolution No. (2020 Series) Page 2
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Endorse the San Luis Obispo Countywide Regional Compact and authorizes
the Mayor or designee to sign said Compact.
Upon motion of , seconded by
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this day of
Mayor Heidi Harmon
ATTEST:
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
J. Christine Dietrick
City Attorney
2020.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this day of , 2020.
Teresa Purrington
City Clerk
0
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Resolution No. (2020 Series)
Item 13
Page 3
Exhibit A
SAN LUIS OBISPO COUNTYWIDE REGIONAL COMPACT
People, water, transportation, connectivity, and housing form the foundation of San Luis Obispo County Region's healthy, livable
communities and thriving economic opportunity.
We are 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 our
Region's significant issues, such as limited water supply, disconnects between communities, climate impacts, pressure on
agriculture and open space resources, and inadequate access to affordable housing,
To identify actions our agencies can take to solve these issues, we agree to develop our first Regional Infrastructure and Housing
Strategic Action Plan, This regional effort examines infrastructure and housing needs countywide and integrates efforts to
address critical shortages. Our organizations are signing this compact as a first, necessary step toward creating opportunities
for our local workforce and families, while preserving the appeal and vitality of our Region.
Our agencies collectively embrace the following six shared regional goals and support aligning resources and policies to make
progress towards acting on them. These regional goals will underpin the future Regional Infrastructure and Housing Strategic
Action Plan, create compatibility among the eight local agencies' Housing Elements, and drive future recommendations for
collaborative actions.
We believe that our Region's quality of life depends on four cornerstones to foster a stable and healthy
economyfor all: resilient infrastructure, services, and resources, adequate housing supply, business
opportunities, and educational pathways.
We believe that our Region should share the impacts and benefits of achieving enduring quality of life
among all people, sectors and interests.
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 for residents to live and work
in the same community.
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.
We believe that our Region should support policies, actions and incentives that increase the diversity
of housing available to people at all income levels.
We believe that our Region must achieve efficient planning and production of housing and focus on
strategies that produce the greatest impact.
We believe that these regional goals will help to protect and enhance our communities, build critical infrastructure, protect
natural resources and create a forward -thinking future for all of our communities. We believe in the importance of taking
responsibility for leading our Region towards a brighter future. By signing this compact on this day of 2020,
we commit to act as partners by aligning actions with these regional goals. By taking collaborative actions to further these
goals, we believe that our Region will solve critical issues and become a statewide leader in sustaining vibrant communities.
CITY OF
City of Arroyo Grande
City ofAtascodero
City of Grover Beach
G
Y
III II 'i
City of Morro Bay City of San Luis Obispo
r
City of Paso Robles San Luis Obispo County
o City of Pismo Beach
*s10r"SL o Mw 1 5
Item 13
Land Use Element Policies and Programs Supporting Regional Collaboration
Policy 1.6: Regional Planning. The City shall encourage regional planning and growth
management throughout the county, and in cooperation with neighboring counties and the State.
Policy 1.13.12: Regional Growth Management. The City shall advocate a regional growth -
management program, which should include:
A. Population growth no faster than the statewide average growth rate for the preceding year,
and no faster than can be sustained by available resources and services, whichever is less.
B. No significant deterioration in air quality, due to development activities for which local
government has approval.
C. Plans for large residential developments to include a range of housing types to provide
opportunities for residents with very low, low, or moderate incomes.
D. Voter approval for any significant change from Open Space, Agriculture, or Residential
Rural designations to another designation.
Program 1.14.2: Regular Coordination Meetings. The City shall advocate and help arrange
quarterly coordination meetings among planning directors of local jurisdictions in San Luis Obispo
County, SLOCOG, LAFCO, Cal Poly, and APCD to discuss regional issues.
Policy 9. 1: Sustainability. The City shall take a leadership role in the county in the development
of sustainable plans and programs to guide future development in the city and the region.
Packet Page 156
San Luis Obispo Countywide
Regional Compact
Regional Infrastructure & Affordable
Housing Strategic Action Plan
Recommendation
1. Adopt a Resolution approving and
authorizing the Mayor or designee to
sign the San Luis Obispo Countywide
Regional Compact: Regional
Infrastructure & Affordable Housing
Strategic Action Plan.
Regional Needs and Pressures
housing
00
00
.................................................
State 00 jobs
requirements infrastructure
affordability
icons by Made and Maria Darron from the Noun Project
5th Cycle RHNA: 2014-2019
Target (4,090
Actual (4,563)
■ AM ■ VL/L/M ■ AM ■ VL/L/M
Incomes &Affordability
66% jobs pay less
0,000 than $50,000 annually
25,000
20,000
Ln
O
6. 0 15,000
E
z
10,000
5,00❑
Per February 2020 SLOCOG
report
• Median home sale price: over
$600K
• Median rent paid: over $1,300
Income Range (thousands)
6th Cycle RHNA: 2020-2028
Regional Housing Need Allocation (I HN
2019-2028 Total = 107810
■ Arroyo Grande
■ Atascadero
■ Grover Bach
■ Morro Barg
■ Paso Robles
■ Pismo Beach
■ San Luis Obispo
Unincorporated
Reducing Vehicle Miles Traveled & Overall GHG Emissions
C
Residential and Office
Residential
1 ■ 1 ■ Cities•
VMT
Arroya Grande 187,378.34
Project VMT
Household
Population
17,427.28
Per Capita by Jurisdiction and
Residentialper Oifice
4 ■ ■ Populationp-erEmployee
9.60 46.164.63
County Area
1
r*A22 7,19
Atascadero
392,3158.04
27,40852
14.32
96,104.44
8,965
10,72
Grauer 6+each
10%732.11
11=0,38
9.20
26,469.97
3,231
8,19
Morro Bay
122,927.81
11,677.00
10,53
29,177.59
3,756
7,82
RasG&Dbles
2MS25,61
28,417.72
7.51
78,226.27
14,903
5,25
PIsme BE,mh
102,488.14
9,207.50
11,13
35.140.34
4,846
7,25
San Luis GbisQo
208,524,93
50,407.57
,.
4,14
7.92
141,217.08
6,561.23
34,671
11012
4,07
6,48
AV l a tea c h
13.16.4"
116152.93
CarnbFla
6-J,207,14
6,440,28
10,75
We"."
118219
9,20
cayucos
17,222.21
2,875.59
12.94
6,141.32
554
12.09
Los Osos
179,226,20
15,072.42
11.99
27,161.02
2,81.9
15.05
to00mo
25OA20,69
12A2,57
20,29
49,14152
2,490
119,74
Ocea rno
"Aas.65
5.695 A4
11.62
15, 534.71
774
20-07
Sara Miguel
2.8.111M
1,662-13
16.91
5,142-17
315
16-12
Santa margarita
23ASIA4
1,344-52
17.76
4,421-29
m
13-48
Shandon
54.289.65
907_60
.59.82
10.051.50
99
101.53
Tempie-ton
70.366A9
6,667Al
10.55
22,885.00
3,775
6.n6
Non -Urban Areas
1,254,455.11
42,29$.7J
n.80
124,053-$2
19■717
1d-44
aied Area
N
2.Ofl6,7$ .4
9 .97�.52
2 1.5 2
4$8,129-21
32.715
14-82
11
Regional Infrastructure and Affordable Housing Strategic Action
Plan
Mission: Build a strong collaboration
by coordinating a strategic action plan that
integrates local agencies' efforts, identifies and
prioritizes critical regional infrastructure
needs, creates a focused strategic regional
infrastructure and implementation plan to
address the housing and infrastructure
shortage countywide.
San Luis Obispo Countywide
Regional Compact
Operating Program Evaluations
Countywide Regional Compact
• Aspirational compact
• First, necessary step
• Act as partners
• Align resources and policies around the Regional Goals
• Drive future recommendations for collaborative actions
• Become a statewide leader in sustaining vibrant
communities
Regional Compact Approval Schedule
February 25t"
County Board of Supervisors
March 2nd
City
of Grover Beach Council
March 3rd
City
of Paso Robles Council
March 3rd
City
of Pismo Beach Council
March 10t"
City
of Arroyo Grande Council
March 10t"
City
of Atascadero Council
March 17t"
City
of San Luis Obispo Council
March 24t"
City
of Morro Bay Council
April 1st
SLOCOG Board of Directors
TBD (April 3rd)
Signing Event
M
Goa`1 A united regional framework to unlock our potential
Ras,ona,
to develop an adequate supply of housing and resilient
� infrastructure that support our economic prosperity.
Goal2 Inventory and prioritize infrastructure needs
strategic
Action Plan
Identify funding and implementation strategies
'� All agencies adopt Regional Strategic Action Plan
Goal3 Align LandCollaborate in developing Housing Elements
Us¢ Planning
DOCYTent= Develop New Regional Section: Goals & Strategies
Each agency adopts its Housing Element
M
Recommendation
1. Adopt a Resolution approving and
authorizing the Mayor or designee to
sign the San Luis Obispo Countywide
Regional Compact: Regional
Infrastructure & Affordable Housing
Strategic Action Plan.