HomeMy WebLinkAboutItem 7 - Review of the 6th Cycle Housing Element Update and Negative Declaration of Env. Impact Department Name: Community Development
Cost Center: 4003
For Agenda of: September 1, 2020
Placement: Public Hearing
Estimated Time: 60 minutes
FROM: Michael Codron, Community Development Director
Prepared By: Rachel Cohen, Associate Planner
SUBJECT: REVIEW OF THE 6TH CYCLE HOUSING ELEMENT UPDATE AND A
NEGATIVE DECLARATION OF ENVIRONMENTAL IMPACT
RECOMMENDATION
1. Consider the Planning Commission recommendation to adopt a Resolution approving the
Housing Element Update and the changes incorporated into the Housing Element based on
Planning Commission direction; and
2. Direct staff to make updates to the Housing Element, consistent with feedback provided by
the Planning Commission and the State’s Department of Housing and Community
Development (HCD); and
3. Authorize staff to continue to work with HCD to ensure that the document fully complies
with its guidelines; and
4. Direct staff to return to the City Council for final approval of the Housing Element, following
HCD’s determination that it fully complies with State law and HCD guidelines.
REPORT-IN-BRIEF
The Housing Element is a State required element of the City’s General Plan that must be updated
according to a cycle established by HCD. Updating the Housing Element is a key step in the
City’s efforts to expand affordable housing opportunities and is required by California
Government Code Sections 65580- 65589.8. The deadline for adoption of the updated Housing
Element is December 31, 2020. Once adopted, the under review “6th Cycle” Draft Housing
Element will replace the current Housing Element adopted by the City and certified by the State
in 2015 and will become the guiding document for City housing actions through 2028. The
update process is a tool to modify housing policies and programs to reflect the chang ing needs,
resources, and conditions in the community, and to respond to changes in state and federal
housing law.
Over the last year, the City of San Luis Obispo, as well as the County and other cities within the
County have been in the process of updating their Housing Elements based on the new 6th Cycle
Regional Housing Needs Allocation (RHNA) requirements enforced by HCD. The Housing
Element has been updated in response to input received through multiple public presentations,
meetings, online surveys, and a workshop, as well as other correspondence received over the past
year.
Item 7
Packet Page 45
Additionally, in coordination with the County, all cities within the County, and San Luis Obispo
Council of Governments (SLOCOG), a new chapter (Chapter 4) is proposed to be added to the
City’s Housing Element. Chapter 4 contains a regional vision and includes policies focused
specifically on fostering regional collaboration to plan and develop housing and supportive
infrastructure.
On July 22, 2020, the Planning Commission recommended the City Council approve the
Negative Declaration of Environmental Impact and adopt the Draft Housing Element update
(Attachment B). A complete version of the Draft Housing Element can be found on the City’s
Housing Element website at: https://www.slocity.org/government/department-
directory/community-development/affordable-housing/housing-element.
Once a jurisdiction has completed a draft update to its housing element, it is required to be
submitted for review and certification by the State of California. The Housing Element is the
only Element in the City’s General Plan that requires this review and certification process. HCD
has been tasked to review Housing Elements for compliance with state law. HCD has 60 days to
review the draft Housing Element and work with the City on any changes to the document. At
the end of the 60 days, HCD issues a letter with its findings. The letter is usually a good indicator
that HCD will certify the Housing Element, with recommended modifications, once it is adopted
by the City Council. Having a certified Housing Element allows the City to access State funds
for future housing projects.
On July 7, 2020, the City submitted a draft of the Housing Element Update to HCD for review.
On August 6, 2020, City staff held a phone conference with staff from HCD to discuss their
preliminary review of the Draft Housing Element Update. HCD staff provided direction
regarding needed technical changes including items such as additional clarification and
information regarding the City’s analysis of its housing inventory and asked that the City add
specific quantitative language to some of the proposed programs. Overall, HCD was supportive
of the City’s efforts and strategies to increase housing affordability and production. Staff is
currently working closely with HCD to address these items and achieve a determination of
compliance with State law.
Currently, staff is recommending the City Council adopt a resolution endorsing the proposed
modifications to the Housing Element Update. Staff will return to Council for final approval of
the Housing Element Update once HCD determines that the updated draft is consistent with its
guidelines.
DISCUSSION
Housing Element Update and Regional Housing Needs Allocation
State law establishes a schedule for cities and counties to periodically update their Housing
Elements of the General Plan. Under this schedule, the City’s Housing Element update is due to
HCD by December 31, 2020 and has until the end of April 2021 to receive HCD certification. As
a part of this update, the City is required to develop programs designed to meet its share of the
surrounding region’s housing needs for all income groups, as determined by the region’s council
of governments.
Item 7
Packet Page 46
The Regional Housing Needs Allocation (RHNA) process ensures that each jurisdiction accepts
responsibility, within its physical and financial capability to do so, for the housing needs of its
residents and for those people who might reasonably be expected to move there. The City has
been allotted a RHNA of 3,354 housing units to plan for in the new 6th Cycle Housing Element.
Table 1: Regional Housing Needs Allocation (RHNA) for San Luis Obispo County,
Jan. 2019 – Dec. 2028
Very
Low
Income
24.6%1
Low
Income
15.5%1
Moderate
Income
18.0%1
Above
Moderate
Income
41.9%1
Totals Percent
City RHNA to
Total RHNA
Number of Units
Arroyo Grande 170 107 124 291 692 6%
Atascadero 207 131 151 354 843 8%
Grover Beach 91 57 66 155 369 3%
Morro Bay 97 60 70 164 391 4%
Paso Robles 356 224 259 607 1,446 13%
Pismo Beach 113 71 82 193 459 4%
San Luis Obispo 825 520 603 1,406 3,354 31%
Unincorporated County 801 505 585 1,365 3,256 30%
Totals 2,660 1,675 1,940 4,535 10,810 100%
Source: San Luis Obispo Council of Governments (SLOCOG), 2019
1Percent of total housing need in each jurisdiction.
Residential Development Capacity
As part of the Housing Element update process, jurisdictions must document their residential
land capacity to show how their RHNA can be met. The City has completed this analysis and has
approximately 359 acres of vacant, underutilized, blighted, or underdeveloped property that can
accommodate approximately 3,155 dwelling units (a substantial portion of these units are located
with the Avila Ranch planning area and San Luis Ranch Specific Plan). In addition, the City has
issued building permits for 537 residential units within the 6th Cycle planning period. 729
residential units have received planning entitlements and an estimated 995 units are in the
pipeline (a number of these units are located with the Orcutt Area Specific Plan, Froom Ranch
Area, and 650 Tank Farm). Based on these numbers, the City’s residential capacity exceeds the
3,354-unit RHNA, and therefore, a property rezoning program will not be required by HCD for
certification of the City’s Housing Element update.
Previous Advisory Body and Council Review
Kick-off of the 6th Cycle Housing Element update began in April 2019 with a Public Forum on
Housing, followed by a Study Session with the City Council that included an update on the
City’s housing programs. This City Council update included a status report on the Housing
Major City Goal for FY 2017-19 and 2019-21, State housing law, Housing Element and required
update, production and housing affordability.
Item 7
Packet Page 47
This Study Session was also presented to the Planning Commission later in April. Below is a
timeline of the advisory body meetings that have occurred about the 6th Cycle Housing Element
Update:
• Planning Commission Meeting – July 22, 2020
• Planning Commission Meeting – June 10, 2020
• Human Relations Commission Meeting – June 3, 2020
• Planning Commission Meeting – April 24, 2019
• Public Forum and City Council Meeting – April 2, 2019
Comments and direction provided at these meetings, as well as through public engagement and
the Housing Major City Goal were important for informing proposed modifications to the
Housing Element Update.
Public Engagement
In addition to discussing the Housing Element update at public meetings, the City facilitated
several presentations, two online surveys, and a public workshop.
• Online Survey – June 8, 2020 – June 24, 2020
• Chamber of Commerce (Economic Development Committee) – June 4, 2020
• Economic Vitality Corporation and the Home Builders Association – May 13, 2020
• Chamber of Commerce (Economic Development Committee) – April 2, 2020
• Online Survey – December 10, 2019 – January 10, 2020
• Housing Element Workshop – December 10, 2019
• Association of Realtors – July 23, 2019
In December 2019, prior to COVID-19, the City hosted an in-person workshop and an online
survey to garner feedback on the needs, issues, and opportunities of housing within the City of
San Luis Obispo. Approximately 30 people participated in the workshop and 77 people
participated in the online survey. This is equivalent to 5.4 hours of public comment at 3 minutes
per response. The following is an overview of public feedback and comments received for each
category, which were considered and incorporated into Chapter 3 (Goals, Policies, and
Programs) of the Housing Element Update where appropriate:
1. Needs
• Affordable housing
• Workforce (missing middle) housing
• Housing for families
• Student housing
• Senior housing
• Housing near employment
• More housing
Item 7
Packet Page 48
2. Issues
• Affordable housing
• Insufficient number of housing units to rent or purchase
• Not enough diversity in the types of housing
• Higher density housing
3. Opportunities
• Increase residential densities where appropriate, such as downtown
• Provide more student housing on campus
• Rehabilitate existing housing resources
The City provided another opportunity for the community to provide specific feedback regarding
the proposed modifications to Chapter 3 (Goals, Policies & Programs) of the Housing Element.
This was accomplished through another online survey in the place of an in-person public
workshop during the COVID-19 restricted activity period. 337 individuals visited the survey and
78 individuals responded to the questions (this is equivalent to 3.9 hours of public comment at 3
minutes per response). The second online survey asked participants to note if anything that was
missed or needed to be modified in the proposed changes, if there were additi onal housing topics
that should be considered, and requested ideas on how to increase the production and
affordability of housing in the community.
The responses identified housing concepts that are included throughout various goals, policies,
and programs such as:
• Promote ADA/special needs housing
• Promote affordable senior housing projects
• Support high density housing developments
• Support local preference
• Infrastructure planning (e.g. pedestrian, bicycle, improvements, etc.)
• Include amenities within housing developments such as: community gardens, common
open space, parks, car share programs, and edible landscaping.
• Affordable housing
• Senior housing
• Homeless/Transition housing
The responses also included ideas for increasing production and affordability of housing that
staff will consider with program implementation. These ideas include:
• Update Inclusionary Housing Ordinance
• Reduce setback requirements
• Pre-approved ADU plans
• Reduce parking requirements
• Higher density and taller buildings in Downtown
• Reduce fees
• Round all densities to the nearest 0.5
• Upzone each residential zone to the next highest density
Item 7
Packet Page 49
Goals, Policies and Programs – Chapter 3
The 6th Cycle Draft Housing Element and its appendices (Attachment D) include information
such as updated demographic and residential capacity information, housing constraints and
resources, and implementation. The core of the Housing Element, however, falls under Chapter
3: Goal, Policies and Programs, which provides direction and a plan for how the City will
achieve the accommodation of 3,354 units as required by HCD.
Chapter 3 of the Housing Element has been updated in response to input received through 12
presentations, meetings, online surveys, and a public workshop, as well as other correspondence
over the past year and a half. Staff presented to the Planning Commission on June 10, 2020 and
July 22, 2020 regarding proposed modifications to the Housing Element’s goals, policies and
programs based on public comment, the changing needs, resources, and conditions in the
community, and state law. The Planning Commission provided direction to staff regarding those
modifications. The tables in the following discussion and Attachment C show legislative changes
in red and changes based on the Planning Commission direction in blue.
The City Council should review the proposed modifications to Chapter 3 and provide comments
or direction as appropriate. Some of the more substantive proposed changes or additions are
highlighted below for consideration, however, the City Council may comment and/or provide
direction on any of the goals, policies, or programs within Chapter 3. A brief description is
provided explaining why the proposed modification or addition or removal better achieves
housing goals or state requirements. Modifications are broken into four tables: 1) New or
Modified Goals, Policies, and Programs; 2) Removed Goals, Policies, and Program; 3) Zoning
Regulations Update; and 4) AB 1600 and Fee Schedule Update.
New or Modified Goals, Policies, and Programs
Org
#
New
# Goal Goal/Policy/Program Reason for Modification
New or Modified Goals, Policies, and Programs
1.4 Safety Assist owners of older residences
with information on ways to repair
and upgrade older structures to meet
higher levels of building safety,
efficiency, and sustainability.
Per Planning Commission (PC) comments on
June 10, 2020, staff is recommending a new
policy that supports improvements to older
residential structures.
2.15 2.13 Affordability Update the Inclusionary Housing
Ordinance, including Table 2A,
based on findings and
recommendations in the 2020
Affordable Housing Nexus Study
and conduct further feasibility
analysis in order to Eevaluate the
Inclusionary Housing Ordinance
requirements and the effect of Table
2A on the City’s ability to provide
affordable housing in the
proportions shown in the Regional
Housing Needs Allocation, per
Policy 2.4.
In March of 2020, the City completed the 2020
Affordable Housing Nexus Study. The Study’s
findings and recommendations indicate that the
City’s Inclusionary Housing Ordinance needs to
be updated to better reflect the correct
proportion of inclusionary affordable units
required as a part of new development within the
City. This program has been added to recognize
and prioritize this work effort.
Item 7
Packet Page 50
Org
#
New
# Goal Goal/Policy/Program Reason for Modification
New or Modified Goals, Policies, and Programs
2.15 Affordability Evaluate a flexible density pilot
program and initiate an update of the
Zoning Regulations and Community
Design Guidelines to incorporate
flexible density development
options in Downtown Core and
portions of Upper Monterey and
Mid-Higuera Special Focus Areas to
support the production of smaller
residential units (150 to 600 square
feet).
This program was recommended in part by input
from the community and the work program
associated with the Housing Major City Goal.
The community and Council identified that the
Downtown Core and portions of Upper
Monterey and Mid-Higuera Special Focus Areas
could be appropriate for higher density housing
development. The program seeks to evaluate
how the City might allow flexible density
beyond what is allowed in these areas to support
the production of smaller units (150-600 square
feet in size).
4.6 4.6 Mixed-Income
Housing
Consider aAmending the City’s
Inclusionary Housing Ordinance and
Affordable Housing Incentives to
require that affordable units in a
development be of similar size,
number of bedrooms, character and
basic quality as the nonrestricted
units in locations that avoid
segregation of such units including
equivalent ways to satisfy the
requirement. Also evaluate adjusting
the City’s allowable sales prices for
deed-restricted affordable units per a
variety of unit types.
The Inclusionary Housing Ordinance was last
reviewed in 2007. Based on community
feedback, staff is recommending language be
added to the program to include consideration
and clarification regarding affordability (by unit
type), location of affordable units (onsite,
dispersion, off-site, etc.), equivalent size of units
(number of bedrooms), and equivalent options to
meet these requirements. This modification
seeks to address concerns that projects meet
inclusionary requirements with smaller units,
units on a separate property, or units constructed
by another entity.
Goal
5
Goal
5
Housing
Variety
Goal 5 – Housing Variety and
Tenure. Provide variety in the
location, type, size, tenure, and style
of dwellings.
Staff is recommending that this goal, and several
of the policies within, be modified to focus on
housing variety rather than tenure which is
covered under Goal 3: Housing Conservation.
5.3 Housing
Variety
Encourage the development of a
variety of “missing middle” housing
types.
This policy is based on community feedback and
the work program associated with the Housing
Major City Goal to address the need for more
housing. Missing middle housing types include
duplexes, triplexes, quadplexes, cottages, etc.
Policy 5.4 also replaces Program 2.16 which
discusses workforce housing. Creating a
workforce level of affordability was examined
and found that it could not be successfully
implemented on a citywide basis as there are no
existing State standards for such an income
level. Policy 5.4 sets the framework for the
newly proposed Program 5.6.
5.4 Housing
Variety
Evaluate opportunities for
promoting “missing middle”
housing types (e.g. duplex, triplex,
quadplex, cottages, etc) to increase
housing options in the City.
To implement new Policy 5.3, this program
proposes that the City evaluate ways in which to
increase the number of housing units available
to the missing middle by specifically exploring
ways to promote specific housing types such as
duplexes, triplexes, quadplexes, cottages, etc.
Item 7
Packet Page 51
Org
#
New
# Goal Goal/Policy/Program Reason for Modification
New or Modified Goals, Policies, and Programs
6.8 6.6 Housing
Production
Consistent with the City’s goal to
stimulate higher density infill where
appropriate in the Downtown Core
(C-D Zone), Upper Monterey, and
Mid-Higuera Special Focus Areas,,
the City shall consider changes to
the Zoning Regulations that would
allow for flexible density standards
that support the development of
smaller apartments and efficiency
units.
This policy was updated to encourage additional
residential units not only in Downtown, but in
Upper Monterey and Mid-Higuera Special
Focus Areas consistent with the City’s Major
City Goal work program and new Program 2.15.
6.13 6.12 Housing
Production
Continue to develop incentives to
encourage additional housing in the
Downtown, Upper Monterey, and
Mid-Higuera Special Focus Areas
Downtown Core (C-D Zone),
particularly in mixed-use
developments. Density based on
flexible density average unit size in
a project should be explored to
encourage the development of
smaller efficiency units.
This program was modified to be consistent with
Policy 6.6 and support the City’s Major City
Goal work program and new Program 2.15.
Goal
7
Goal
7
Neighborhood
Quality
Goal 7 - Neighborhood Quality.
Maintain, preserve and enhance the
quality and livability of
neighborhoods. encourage
neighborhood stability and owner
occupancy, and improve
neighborhood appearance, function
and sense of community.
Staff is recommending that this goal be modified
to focus on providing quality of life in
neighborhoods, removing language associated
with neighborhood stability and owner
occupancy. This language was removed to focus
the goal on neighborhood quality, amenities, and
access and not on whether a neighborhood has
renter or owner-occupied housing. Focus on
home ownership is included in Goal 10. This
modified language is consistent with Goal 7’s
existing policies and programs that focus on
amenities, outdoor space (public/private),
walkability, access to transit, schools, parks,
commercial centers, maintaining setbacks, and
overall character and quality of established
neighborhoods.
---- 7.9 Neighborhood
Quality
Encourage neighborhood design
elements that improve overall health
of residents such as providing safe
and convenient opportunities to
access healthy food and attractive
places for recreational exercise.
This is a new policy that has been added per
recommendation of the Planning Commission to
address public health and housing.
---- 7.14 Neighborhood
Quality
Encourage new developments with
10 or more residential units be
reviewed and scored by the Healthy
Communities Work Group prior to
submitting a planning application to
the City.
This is a new program recommended by the
Planning Commission to support Policy 7.9.
Item 7
Packet Page 52
Org
#
New
# Goal Goal/Policy/Program Reason for Modification
New or Modified Goals, Policies, and Programs
---- 7.15 Neighborhood
Quality
Encourage developments with 10 or
more residential units to include the
following: outdoor visiting and
gathering spaces, places to exercise
or recreate, and spaces reserved for
edible landscape or community
gardens.
This is a new program recommended by the
Planning Commission to support Policy 7.9.
Goal
10
Goal
10
Local
Preference
Maximize affordable housing
opportunities for those individuals
who are employed in business that
are located in geographic areas that
are customarily included in the
City’s annual jobs-housing balance
analysis who live or work in San
Luis Obispo while seeking to
balance job growth and housing
supply.
Based on community feedback and a need for
more housing for local individuals who work in
the City or nearby vicinity, staff is
recommending Goal 10 be updated to focus on
providing housing for individuals who are
employed in business that are located in
geographic areas that are customarily included
in the City’s annual jobs-housing balance
analysis.
10.2 Local
Preference
Encourage, and where legally
allowed, require new housing
development to give preference in
the following order: 1) individuals
who are employed in business that
are located in geographic areas that
are customarily included in the
City’s annual jobs-housing balance
analysis, 2) individuals residing in
the County, and 3) finally to
individuals from outside the County.
This is a new policy that staff is recommending
to support proposed revisions to Goal 10. This
policy sets preferences for new for-sale housing
developments in the initial offering and sales to
improve the City’s jobs-housing balance, reduce
competition from outside buyers and allow those
that work in the City the opportunity to live in
the City, thereby reducing commute times.
10.4 Local
Preference
Encourage residential developers to
sell or rent their projects to those
residing or employed in the City
first before outside markets.
Staff is recommending that the City continue to
work with housing developers to limit for sale
units to owner-occupants for the first five years
after sale. This is a strategy that has been
implemented as part of the Avila Ranch and San
Luis Ranch projects to encourage local home
ownership opportunities rather than outside
investor properties.
Removed Goals, Polices, and Programs
Over the last several years, the City has been able to implement various policies and programs,
as well as determine that other policies and programs no longer fit the current needs and issues of
the community or no longer comply with new state regulations. As such, staff is recommending
the following be removed from the 6th Cycle Housing Element.
Item 7
Packet Page 53
Org
# Goal Goal/Policy/Program Reason for Removal
Removed Goals, Policies, and Programs
3.3 Housing
Conservation
Encourage seismic upgrades of older
dwellings to reduce the risk of bodily
harm and the loss of housing in an
earthquake.
All multi-family structures have been retrofitted and
single-family residences are exempt from seismic
retrofits. Additionally, any upgrades to older residential
structures is now covered in the proposed new Policy
1.4.
3.8 Housing
Conservation
Adopt an ordinance that implements
policy 3.2 to discourage removal or
replacement of affordable housing.
Affordable housing units are protected by the State of
California Housing Accountability Act, SB 330 (see
Policy 3.2), and the “no net loss” requirements of SB
166. An ordinance is no longer required.
6.2 Housing
Production
New commercial developments in the
Downtown Core (C-D Zone) shall
include housing, unless the City makes
one of the following findings:
Housing is likely to jeopardize the
health, safety or welfare of residents or
employees; or
The property’s shape, size, topography
or other physical factor makes
construction of new dwellings
infeasible.
Updated to be consistent with Zoning Regulations
update. The Zoning Regulations require housing as a
part of any development within the downtown.
6.6 Housing
Production
Property located behind the former
County General Hospital shall be
designated a “Special Considerations”
zone and may be considered suitable
for residential development after
further analysis and environmental
review, provided that development be
limited to site areas with average slopes
of less than 20 percent, that
approximately one-half of the total site
area be dedicated for open space and/or
public use, and that an additional water
tank be provided if determined
necessary to serve new development.
Completed as a part of the LUE update as part of the
special focus areas section; Program 8.6. General
Hospital Site.
8.3 Special
Housing
Needs
Encourage manufactured homes in
Specific Plan Areas by:
A) When the City considers adopting
new specific plans, including policies
that support
owner-occupied manufactured
home parks with amenities such as
greenbelts, recreation facilities, and
shopping services within a master
planned community setting. Such parks
could be specifically designed to help
address the needs of those with
mobility and transportation limitations.
Manufactured homes are allowed in all residential
zones; applicants have not shown any interest in
creating new manufactured home parks. New, higher
density development is more efficient and cost effective.
The most recent affordable housing projects have all
been multi-family apartments.
Item 7
Packet Page 54
Org
# Goal Goal/Policy/Program Reason for Removal
Removed Goals, Policies, and Programs
B) Establishing lot sizes, setback, and
parking guidelines that allow for
relatively dense placement of
manufactured homes within the master
planned neighborhood.
C) Locating manufactured home parks
near public transit facilities or provide
public transportation services to the
manufactured home parks to minimize
the need for residents to own
automobiles.
9.3 Sustainable
Housing, Site
and
Neighborhoo
d Design
Preserve the physical neighborhood
qualities in the Downtown Planning
Area that contribute to sustainability.
Some ways to do this include:
A) Maintain the overall scale, density
and architectural character of older
neighborhoods surrounding the
Downtown Core.
B) Encourage the maintenance and
rehabilitation of historically designated
housing stock.
The Historic Preservation Ordinance preserves and
protects historic structures and districts. Additionally,
the Conservation and Open Space Element includes
Policies 3.3.4, 3.3.5, that direct preservation of historic
buildings, districts, and neighborhoods. Program 3.6.3
directs construction within historic districts.
Goal
11
Suitability Goal 11 - Suitability. Develop and
retain housing on sites that are suitable
for that purpose.
Policies and programs within Goal 11 are covered by the
other Goals of the Housing Element, the Housing Major
City Goal, the Conservation and Open Space Element,
the Land Use Element, and the Safety Element.
11.1 Suitability Where property is equally suited for
commercial or residential uses, give
preference to residential use. Changes
in land use designation from residential
to non-residential should be
discouraged.
See discussion under Goal 11 above.
11.2 Suitability Prevent new housing development on
sites that should be preserved as
dedicated open space or parks, on sites
subject to natural hazards such as
unmitigable geological or flood risks,
or wild fire dangers, and on sites
subject to unacceptable levels of man-
made hazards or nuisances, including
severe soil contamination, airport noise
or hazards, traffic noise or hazards,
odors or incompatible neighboring
uses.
See discussion under Goal 11 above.
11.3 Suitability The City will continue to ensure the
ability of legal, non-conforming uses to
continue where new development is
proposed.
See discussion under Goal 11 above.
Item 7
Packet Page 55
Regional Vision for Housing – Chapter 4
San Luis Obispo County is a rural coastal county with seven cities and numerous unincorporated
communities that depend on collaborative relationships between and among government agencies,
community organizations, and residents to solve the region’s significant issues including
inadequate supply of affordable housing and resilient water, wastewater, and transportation
infrastructure and resources. In early 2020, local agencies adopted a San Luis Obispo Countywide
Regional Compact to establish a united regional framework to unlock our potential to develop an
adequate supply of housing and infrastructure that support our economic prosperity.
The County and all seven Cities worked collaboratively to develop the region’s first Reg ional
Infrastructure and Housing Strategic Action Plan (Regional Plan) that identifies actions to address
these issues. A key component of the Regional Plan is the integration of efforts to address critical
housing and related infrastructure needs. As part of the Housing Element update process,
representatives of the County, seven Cities and San Luis Obispo Council of Governments
(SLOCOG) developed Chapter 4 (see Attachment 3, Draft Housing Element) to showcase the
ongoing commitment of each agency to this collaborative effort. Chapter 4 presents a regional
vision and eight policies focused specifically on fostering regional collaboration to plan and
develop housing and supportive infrastructure.
Planning Commission Action
On July 22, 2020, the Planning Commission unanimously recommended the City Council adopt a
resolution approving updates to the City’s Housing Element and Negative Declaration of
Environmental Impact. The Planning Commission provided feedback at both the June 10th and
July 22nd meetings regarding minor revisions to the goals, policies and programs, including an
additional policy and two new programs to address healthy communities. The proposed
modifications of the Planning Commission are highlighted in Attachment C in blue text.
California Department of Housing and Community Development (HCD)
Once a jurisdiction has completed a draft update to its housing element, it is required to be
submitted for review and certification by the state of California. The Housing Element is the only
Element in the General Plan that requires this review and certification process. The Department of
Housing and Community Development (HCD) has been tasked to review Housing Elements for
compliance with state law. HCD has 60 days to review the draft Housing Element and work with
the City on any changes to the document. At the end of the 60 days, HCD issues a letter with their
findings. The letter is usually a good indicator that HCD will certify the Housing Element, with
their recommended modifications, once it is adopted by the City Council. Having a certified
Housing Element allows the City to access state funds for future housing projects.
On July 7, 2020, the City submitted a draft of the Housing Element Update to HCD for review.
On August 6, 2020, City staff held a phone conference with staff from HCD to discuss their
preliminary review of the draft Housing Element Update. HCD provided direction regarding
needed technical changes including items such as additional clarification and information
regarding the City’s analysis of its housing inventory and asked that the City add specific
quantitative language to some of the proposed programs. Overall, HCD was supportive of the
City’s efforts and strategies to increase housing affordability and production. Staff is currently
working closely with HCD to address these items and achieve a determination of compliance with
state law.
Item 7
Packet Page 56
Policy Context
The proposed amendments to the Housing Element are consistent with other land use goals and
policies of the General Plan.
CONCURRENCE
Staff comments have been incorporated into the draft Housing Element.
ENVIRONMENTAL REVIEW
A Negative Declaration of Environmental Impact is recommended for the Housing Element
Update (Attachment E). No potentially significant or significant impacts were identified. A
Negative Declaration is therefore recommended for adoption in accordance with CEQA
Guidelines section 15063(b)(2): “The lead agency shall prepare a negative declaration if there is
no substantial evidence that the project or any of its aspects may cause a significant effect on the
environment.” A 30-day public comment period was opened on July 9, 2020. A Notice of Intent
to Adopt was filed with the County- Clerk Recorder and the State Clearing House.
FISCAL IMPACT
Budgeted: No Budget Year:
Funding Identified: No
Fiscal Analysis:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund N/A
State
Federal
Fees
Other:
Total
There is no direct fiscal impact associated with this action. The Housing Element Update is a
work program in the Housing Major City Goal adopted as part of the 19-21 Financial Plan.
ALTERNATIVES
1. Modify the Proposed 6th Cycle Housing Element. The Council may modify the proposed
Housing Element. Specific direction should be given to staff regarding any modifications.
2. Continue the review of the 6th Cycle Housing Element. An action to continue the item
should include direction to staff on pertinent issues.
Item 7
Packet Page 57
Attachments:
a - Draft Resolution
b - Planning Commission Resolution No. PC-1017-2020
c - Chapter 3 Legislative Matrix
d - COUNCIL READING FILE - Draft Housing Element
e - COUNCIL READING FILE - Initial Study
Item 7
Packet Page 58
R ______
RESOLUTION NO. _____ (2020 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ENDORSING A NEGATIVE DECLARATION OF
ENVIRONMENTAL IMPACT AND AMENDMENTS TO THE HOUSING
ELEMENT OF THE GENERAL PLAN AS REPRESENTED IN THE
COUNCIL AGENDA REPORT AND ATTACHMENTS DATED
SEPTEMBER 1, 2020 (GENP-0217-2020 & EID-0218-2020)
WHEREAS, State law requires cities and counties to adopt a general plan. The General
Plan includes nine required elements, one of which is the Housing Element. The Housing Element
must be updated every eight (8) years or as otherwise provided by State law; and
WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a web
based public hearing, on July 22, 2020, and recommended that the City Council approve a Negative
Declaration of Environmental Impact and amendments to the Housing Element to address the
changing needs, resources, and conditions in the Community, as required by State law; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a web based
public hearing, on September 1, 2020, for the purpose of considering the Negative Declaration of
Environmental Impact and amendments to the Housing Element; and
WHEREAS, the City facilitated 12 presentations, meetings, online surveys, and a public
workshop to identify housing needs, issues and opportunities in the community and inform policy
and program changes for the 6th Cycle Housing Element Update; and
WHEREAS, notices of said public hearing were made at the time and in the manner
required by law; and
WHEREAS, the City Council has duly considered all evidence, including the testimony
of the applicant, interested parties, and the evaluation and recommendations by staff, presented at
said hearing.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Findings. This Council, after considering the 6th Cycle Housing Element
update, the Planning Commission’s recommendations, staff recommendations, public testimony
and correspondence, and reports thereon, makes the following findings:
1. The proposed amendments included in the draft 6th Cycle Housing Element are consistent
with other land use goals and policies of the General Plan.
2. The proposed amendments are appropriate and necessary to ensure that the City’s Housing
Element meets State law and the changing needs, resources, and conditions in the
community.
Item 7
Packet Page 59
Resolution No. ______ (2020 Series) Page 2
3. The City facilitated 12 presentations, meetings, online surveys, and a public workshop to
identify housing needs, issues and opportunities in the community and inform policy and
program changes for the 6th Cycle Housing Element Update.
4. The City has evaluated its ability to accommodate its Regional Housing Need Allocation
(RHNA) number of 3,354 dwellings by December 2028 and determined there is sufficient
land suitable for residential development to accommodate the RHNA number within the
planning period.
5. Achieving Housing Element State certification will promote affordable housing
opportunities and help achieve adopted housing goals by making the City eligible for
various housing grants and financial incentives, and will foster cooperation among local
and state agencies in addressing an urgent need for affordable housing in the City.
SECTION 2: Environmental Review. The City Council does hereby endorse a Negative
Declaration of Environmental Impact in accordance with CEQA Guidelines section 15063(b)(2):
“The lead agency shall prepare a negative declaration if there is no substantial evidence that the
project or any of its aspects may cause a significant effect on the environment.”
Item 7
Packet Page 60
Resolution No. ______ (2020 Series) Page 3
SECTION 3. Action. The City Council does hereby approve the proposed amendments
to the Housing Element, which is incorporated herein by reference subject to final review of
approval of sections by the State Department of Housing and Community Development and any
changes shall be brought back for final approval.
Upon motion of Council Member ___________________, seconded by Council Member
__________________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of ___________ 2020.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, on _____________________.
____________________________________
Teresa Purrington
City Clerk
Item 7
Packet Page 61
Item 7
Packet Page 62
Item 7
Packet Page 63
GENP-0217-2020 & EID-0218-2020
Attachment B: Housing Element Chapter 3 Legislative Draft Matrix
The matrix below provides a legislative draft of Housing Element Chapter 3: goals, polices, and
programs. Each modification is shown in red; modifications based on Planning Commission
direction and public comment are shown in blue. Policies are highlighted in gray.
# New # Goals Policy/Program Reason for Modification
Goal 1 - Safety: Provide safe, decent shelter for all residents.
1.1 1.1 Safety Assist those citizens unable to obtain safe shelter
on their own.
1.2 1.2 Safety Support and inform the public about fair housing
laws and programs that allow equal housing
access for all city residents.
1.3 1.3 Safety Maintain a level of housing code enforcement
sufficient to correct unsafe, unsanitary or illegal
conditions and to preserve the inventory of safe
housing, consistent with City Council’s code
enforcement priorities.
Updated to be consistent with current
code enforcement priorities.
1.4 Safety Assist owners of older residences with
information on ways to repair and upgrade older
structures to meet higher levels of building safety,
efficiency, and sustainability.
Per Planning Commission (PC)
comments on June 10, 2020, staff is
recommending a new policy that
supports improvements to older
residential structures.
1.4 1.5 Safety Correct unsafe, unsanitary or illegal housing
conditions, improve accessibility and energy
efficiency and improve neighborhoods by
Rehabilitate using Federal, State and local
housing funds, such as Community Development
Block Grant Funds, with the objectives of 30
single-family, 75 multi-family, 10 historic, and
20 mobile homes for extremely low, very low,
low and moderate income homeowners and
renters during the planning period.
Added language from Program 3.9.
The RHNA provides the objectives
for the 6th Cycle Housing Element.
1.5 1.6 Safety Continue code enforcement to expedite the
removal of illegal or unsafe dwellings, to
eliminate hazardous site or property conditions,
and resolve chronic building safety problems.
1.6 ----- Safety Consider a Rental Inspection Program to improve
the condition of the City’s Housing Stock.
In May 2015 the City Council adopted
the Rental Housing Inspection
Ordinance. In March 2017 the City
Council voted to repeal the ordinance.
1.7 1.7 Safety Continue to support local and regional solutions
to homelessness by funding supportive programs
services, and housing solutions. such as the
Maxine Lewis Memorial Shelter and The Prado
Day Center.
Maxine Lewis Memorial Shelter and
the Prado Day Center are now housed
within the 40 Prado Homeless Service
Center.
Page 1
Item 7
Packet Page 64
GENP-0217-2020 & EID-0218-2020
# New # Goals Policy/Program Reason for Modification
1.8 ----- Safety Create an educational campaign for owners of
older residences informing them of ways to
reduce the seismic hazards commonly found in
such structures and encouraging them to
undertake seismic upgrades.
Unreinforced masonry buildings have
been retrofitted to meet current
building code requirements. Proactive
education is complete because no
additional structures need seismic
retrofits. Although complete, staff
will continue to have information
available regarding seismic hazards
for those community members
interested in further education.
Goal 2 - Affordability: Accommodate affordable housing production that helps meet the City’s quantified objectives.
2.1 2.1 Affordability Income Levels For Affordable Housing
households. For purposes of this Housing
Element, affordable housing is that which is
obtainable by a household with a particular
income level, as further described in the City’s
Affordable Housing Standards. Housing
affordable to Extremely Low, Very Low, Low,
and Moderate income persons or households
shall be considered “deed-restricted affordable
housing.” Income levels are defined as follows:
❑ Extremely low 30% or less of County Area
median household income
❑ Very low: 31 to 50% of County Area median
household income.
❑ Low: 51% to 80% of County Area median
household income.
❑ Moderate: 81% to 120% of County Area
median household income.
❑ Above moderate: 121% or more of County
Area median household income.
2.2 2.2 Affordability Index of Affordability. The Index of
Affordability shall be based on the City’s
Affordable Housing Standards, updated annually
per the County of San Luis Obispo’s Area
Median Income determined by California
Department of Housing and Community
Development. whether the monthly cost of
housing fits within the following limits:
For extremely low income households, not more
than 25% of monthly income.
For very low- and low-income households, not
more than 25% of monthly income.
For moderate income households, not more than
30% of monthly income.
For above-moderate income households, no
index.
These indices may be modified or expanded if the
State of California modifies or expands its
definition of affordability for these income
groups.
Updated the policy to have the ability
to remain consistent with
standardized County data.
Page 2
Item 7
Packet Page 65
GENP-0217-2020 & EID-0218-2020
# New # Goals Policy/Program Reason for Modification
2.3 2.3 Affordability For housing to qualify as “deed-restricted
affordable” under the provisions of this Element,
guarantees must be presented that ownership or
rental housing units will remain affordable for the
longest period allowed by State law, or for a
shorter period under an equity-sharing or housing
rehabilitation agreement with the City.
The Equity Share Program has a 45-
year deed restriction if an owner does
not choose to exercise the equity share
option.
2.4 2.4 Affordability Encourage housing production for all financial
strata of the City's population, as allocated in the
proportions shown in the Regional Housing
Needs Allocation, for the 2014 – 2019 6th cycle
planning period. The number of units per income
category are These proportions are: extremely
low and income /, 12 percent, very low income,
12 percent 825 units; low income, 16 percent 520
units; moderate income, 18 percent 604 units; and
above moderate income, 42 percent 1,405 units.
Updated with the new RHNA under
the 6th Cycle Housing Element.
2.5 2.5 Affordability Continue to manage the Affordable Housing
Fund so that the fund serves as a sustainable
resource for supporting affordable housing
development. The fund shall serve as a source of
both grant funding and below market financing
for affordable housing projects; and funds shall
be used to support a wide variety of housing types
at the following income levels: extremely low,
very low, low, and moderate, but with a focus on
production efficiency to maximize housing
benefits for the City’s financial investment, and
to support high quality housing projects that
would not be feasible without Affordable
Housing Fund support.
2.6 2.6 Affordability Continue to review existing and proposed
building, planning, engineering and fire policies
and standards as housing developments are
reviewed to determine whether changes are
possible that could assist the production of
affordable housing, or that would encourage
preservation of housing rather than conversion to
non-residential uses, provided such changes
would not conflict with other General Plan
policies. Such periodic reviews will seek to
remove regulations that have been superseded,
are redundant or are no longer needed.
2.7 2.7 Affordability Continue to prioritize implement existing
procedures that speed up the processing of
applications, construction permits, and water and
sewer service priorities for affordable housing
projects. City staff and commissions shall give
such projects priority in allocating work
assignments, scheduling, conferences and
hearings. and in preparing and issuing reports and
water and sewer service allocations.
Updated language to be consistent
with City policies and processes.
Page 3
Item 7
Packet Page 66
GENP-0217-2020 & EID-0218-2020
# New # Goals Policy/Program Reason for Modification
2.8 ----- Affordability Continue to pursue outside funding sources for
the payment of City impact fees so that new
dwellings that meet the City’s affordable housing
standards can mitigate their facility and service
impacts without adversely affecting housing
affordability.
Reductions have been built into the
new fee structure that was approved as
a part of AB 1600 in 2018.
2.9 ----- Affordability To the extent outside funding sources can be
identified to offset impacts on City funds, exempt
dwellings that meet the moderate income,
Affordable Housing Standards from planning,
building and engineering development review
and permit fees, including water meter
installation fee. Maintain exemptions for
extremely-low, very-low and low-income
households.
Reductions have been built into the
new fee structure that was approved as
a part of AB 1600 in 2018.
2.10 2.8 Affordability Continue to coordinate public and private sector
actions to encourage the development of housing
that meets the City’s housing needs.
2.11 2.9 Affordability Continue to assist with the issuance of bonds, tax
credit financing, loan underwriting or other
financial tools to help develop or preserve
affordable units through various programs.
including, but not limited to: (1) below market
financing through the SLO County Housing Trust
Fund and (2) subsidized mortgages for extremely
low, very-low, low- and moderate income
persons and first-time home buyers, and (3) self-
help or “sweat equity” homeowner housing.
Eliminating the examples allows for
more opportunities and flexibility to
fund affordable housing
opportunities.
2.12 2.10 Affordability Consider updating the Affordable Housing
Standards to include incorporating Homeowners’
Association (HOA) fees and a standard allowance
for utilities in the calculation for affordable rents
and home sales prices.
Added language based on findings
and recommendations from the 2020
Affordable Housing Nexus Study.
2.13 2.11 Affordability In conjunction with the Housing Authority and
other local housing agencies, continue to provide
on-going technical assistance and education to
tenants, property owners and the community at
large on the need to preserve at-risk units as well
as the available tools to help them do so.
2.14 2.12 Affordability In conjunction with local housing providers and
the local residential design community, continue
to Continue to provide technical assistance
planning services as requested by the public,
builders, design professionals and developers
regarding design strategies to achieve affordable
housing and density bonuses.
Updated language to be consistent
with City policies and processes.
Page 4
Item 7
Packet Page 67
GENP-0217-2020 & EID-0218-2020
# New # Goals Policy/Program Reason for Modification
2.15 2.13 Affordability Update the Inclusionary Housing Ordinance,
including Table 2A, based on findings and
recommendations in the 2020 Affordable
Housing Nexus Study and conduct further
feasibility analysis in order to Eevaluate the
Inclusionary Housing Ordinance requirements
and the effect of Table 2A on the City’s ability to
provide affordable housing in the proportions
shown in the Regional Housing Needs
Allocation, per Policy 2.4.
Added language based on findings
and recommendations from the 2020
Affordable Housing Nexus Study.
2.16 ----- Affordability The City will evaluate and consider including a
workforce level of affordability in its Affordable
Housing Standards to increase housing options in
the City for those making between 121 percent
and 160 percent of the San Luis Obispo County
median income. This affordability category
cannot be used to meet inclusionary housing
ordinance requirements and is not eligible for
City Affordable Housing Funds.
Creating a workforce level of
affordability was examined and found
that it could not be successfully
implemented on a citywide basis as
there are no existing State standards
for such an income level.
2.17 2.14 Affordability Continue to consider support increasing
residential densities above state density bonus
allowances for projects that provide housing for
extremely low, very low and extremely low
income households.
Reordered wording.
2.15 Affordability Evaluate a flexible density pilot program and
initiate an update of the Zoning Regulations and
Community Design Guidelines to incorporate
flexible density development options in
Downtown Core and portions of Upper Monterey
and Mid-Higuera Special Focus Areas to support
the production of smaller residential units (150 to
600 square feet).
This program was recommended in
part by input from the community and
the work program associated with the
Housing Major City Goal. The
community and Council identified
that the Downtown and portions of
Upper Monterey and Mid-Higuera
Special Focus Areas could be
appropriate for higher density housing
development.
Goal 3 - Housing Conservation: Conserve existing housing and prevent the loss of safe housing and the displacement
of current occupants.
3.1 3.1 Housing
Conservation
Continue to encourage the rehabilitation,
remodeling or relocation of sound or rehabitable
housing rather than demolition. Demolition of
non-historic housing may be permitted where
conservation of existing housing would preclude
the achievement of other housing objectives or
adopted City goals.
3.2 3.2 Housing
Conservation
Discourage the removal or replacement of
housing affordable to extremely low, very-low,
low- and moderate income households, and avoid
permit approvals, private development,
municipal actions or public projects that remove
or adversely impact such housing unless such
actions are necessary to achieve General Plan
objectives and: (1) it can be demonstrated that
rehabilitation of lower-cost units at risk of
Page 5
Item 7
Packet Page 68
GENP-0217-2020 & EID-0218-2020
# New # Goals Policy/Program Reason for Modification
replacement is financially or physically
infeasible, or (2) an equivalent number of new
units comparable or better in affordability and
amenities to those being replaced is provided, or
(3) the project will correct substandard, blighted
or unsafe housing; and (4) removal or
replacement will not adversely affect housing
which is already designated, or is determined to
qualify for designation as a historic resource.
3.3 ----- Housing
Conservation
Encourage seismic upgrades of older dwellings to
reduce the risk of bodily harm and the loss of
housing in an earthquake.
All multi-family structures have been
retrofitted and single-family
residences are exempt from seismic
retrofits. Additionally, any upgrades
to older residential structures is now
covered in the proposed new Policy
1.4.
3.4 3.3 Housing
Conservation
Encourage the construction, preservation,
rehabilitation or expansion of residential hotels,
group homes, integrated community apartments,
and single-room occupancy dwellings.
3.5 3.4 Housing
Conservation
Preserve historic homes and other types of
historic residential buildings, historic districts
and unique or landmark neighborhood features.
3.6 ----- Housing
Conservation
Preserve the fabric, amenities, yards (i.e.
setbacks), and overall character and quality of life
of established neighborhoods.
Moved to Goal 7: Neighborhood
Quality & Design and is now Policy
7.9.
3.7 3.5 Housing
Conservation
Encourage and support creative strategies for the
rehabilitation and adaptation and reuse of
residential, commercial, and industrial structures
for housing.
3.8 ----- Housing
Conservation
Adopt an ordinance that implements policy 3.2 to
discourage removal or replacement of affordable
housing.
Affordable housing units are
protected by the State of California
Housing Accountability Act, SB 330
(see Policy 3.2), and the “no net loss”
requirements of SB 166. An
ordinance is no longer required.
3.9 ----- Housing
Conservation
Correct unsafe, unsanitary or illegal housing
conditions, improve accessibility and energy
efficiency and improve neighborhoods by
collaborating with agencies offering
rehabilitation programs. City will use State or
Federal grants or other housing funds to
implement the program and provide services such
as home weatherization, repair and universal
access improvements.
Consolidated this program by adding
the first sentence to Policy 1.4 which
provides a broader context to support
all housing including the preservation
of existing housing.
Page 6
Item 7
Packet Page 69
GENP-0217-2020 & EID-0218-2020
# New # Goals Policy/Program Reason for Modification
3.10 3.7 Housing
Conservation
Continue to encourage the creation of dwellings
in the Downtown Core (C-D Zone) and the
Downtown Planning Area by continuing the "no
net housing loss" program, consistent with
Chapter 17.86 17.142 (Downtown Housing
Conversion Regulations) of the Zoning
Regulations.
Updated to be consistent with Zoning
Regulations update.
3.11 3.8 Housing
Conservation
Continue to identify residential properties and
districts eligible for local, State or Federal
historic listing in accordance with guidelines and
standards to help property owners repair,
rehabilitate and improve properties in a
historically and architecturally sensitive manner.
3.12 3.9 Housing
Conservation
Continue to monitor and track affordable housing
units at-risk of being converted to market rate
housing annually. Provide resources to support
the Housing Authority, and local housing
agencies, purchase and manage at-risk units.
3.13 3.10 Housing
Conservation
Working with non-profit organizations, faith-
based organizations, or the Housing Authority of
the City of San Luis Obispo, the City will
encourage rehabilitation of residential,
commercial or industrial buildings to expand
extremely low, very-low, low or moderate
income rental housing opportunities.
Goal 4 - Mixed-Income Housing. Preserve and accommodate existing and new mixed income neighborhoods and seek
to prevent neighborhoods or housing types that are segregated by economic status.
4.1 4.1 Mixed-Income
Housing
Within newly developed neighborhoods, housing
that is affordable to various economic strata
should be intermixed rather than segregated into
separate enclaves. The mix should be comparable
to the relative percentages of extremely low,
very-low, low, moderate and above-moderate
income households in the City’s quantified
objectives.
4.2 4.2 Mixed-Income
Housing
Include both market-rate and affordable units in
apartment and residential condominium projects
and intermix the types of units. Affordable units
should be comparable in size, appearance, and
basic quality to market-rate units.
4.3 4.3 Mixed-Income
Housing
Extremely-low and very low-income housing,
such as that developed by the Housing Authority
of the City of San Luis Obispo or other housing
providers, may be located in any zone that allows
housing, and should be dispersed throughout the
City rather than concentrated in one
neighborhood or zone.
Page 7
Item 7
Packet Page 70
GENP-0217-2020 & EID-0218-2020
# New # Goals Policy/Program Reason for Modification
4.4 4.4 Mixed-Income
Housing
In its discretionary actions, housing programs and
activities, the City shall affirmatively further fair
housing and promote equal housing opportunities
for persons of all economic segments of the
community.
4.5 4.5 Mixed-Income
Housing
Review new development proposals for
compliance with City regulations and revise
projects or establish conditions of approval as
needed to implement the mixed-income policies.
4.6 4.6 Mixed-Income
Housing
Consider aAmending the City’s Inclusionary
Housing Ordinance and Affordable Housing
Incentives to require that affordable units in a
development be of similar size, number of
bedrooms, character and basic quality as the
nonrestricted units in locations that avoid
segregation of such units including equivalent
ways to satisfy the requirement. Also evaluate
adjusting the City’s allowable sales prices for
deed-restricted affordable units per a variety of
unit types.
Added language based on findings
and recommendations from the 2020
Affordable Housing Nexus Study.
Goal 5 - Housing Variety and Tenure. Provide variety in the location, type, size, tenure, and style of dwellings.
5.1 ----- Housing
Variety
Encourage the integration of appropriately
scaled, special needs housing into developments
or neighborhoods of conventional housing.
AB 101 allows this type of housing in
all zones and there is limited ability
control scale and design.
5.2 5.1 Housing
Variety
Encourage mixed-use residential/commercial
projects in all commercial zones, especially those
close to activity centers where compatible with
existing and planned surrounding development.
to include live-work and work-live units where
housing and offices or other commercial uses are
compatible.
Combined with Policy 5.3 to form one
policy that encourages mixed-use
development, consistent with the
Zoning Regulations update which no
longer identifies live/work or
work/live units separately from
mixed-use.
5.3 ----- Housing
Variety
Encourage the development of housing above
ground-level retail stores and offices to provide
housing opportunities close to activity centers
and to use land efficiently.
See above.
5.4 5.2 Housing
Variety
New planned In general, housing developments
of twenty (20) or more units should provide a
variety of dwelling types, sizes and styles or
forms of tenure.
5.3 Housing
Variety
Encourage the development of a variety of
“missing middle” housing types.
This new policy is based on
community feedback and the work
program associated with the Housing
Major City Goal to address the need
for more housing. Missing middle
housing types include duplexes,
triplexes, quadplexes, cottages, etc.
Policy 5.4 also replaces Program 2.16
which discusses workforce housing.
Page 8
Item 7
Packet Page 71
GENP-0217-2020 & EID-0218-2020
# New # Goals Policy/Program Reason for Modification
5.5 ----- Housing
Variety
Review new developments for compliance with
City regulations and revise projects or establish
conditions of approval as needed to implement
the housing variety and tenure policies.
Updated language to be consistent
with City policies and processes.
5.4 Housing
Variety
Evaluate opportunities for promoting “missing
middle” housing types (e.g. duplex, triplex,
quadplex, cottages, etc) to increase housing
options in the City.
New program to implement new
Policy 5.3.
5.5 Housing
Variety
Consider amending the Zoning Regulations to
streamline the permitting process for mixed-used
projects in commercial zones.
New program to support Policy 5.1.
Goal 6 - Housing Production. Plan for Facilitate the production of new housing to meet the full range of community
housing needs.
6.1 6.1 Housing
Production
Consistent with the growth management portion
of its Land Use Element and the availability of
adequate resources, the City will plan to
accommodate up to 3,354 dwelling units for the
6th cycle housing element update in accordance
with the assigned Regional Housing Needs
Allocation.1,144 dwelling units between January
2014 and June 2019 in accordance with the
assigned Regional Housing Needs Allocation.
Updated to be consistent with the 6th
Cycle RHNA.
6.2 ---- Housing
Production
New commercial developments in the Downtown
Core (C-D Zone) shall include housing, unless
the City makes one of the following findings:
Housing is likely to jeopardize the health, safety
or welfare of residents or employees; or
The property’s shape, size, topography or other
physical factor makes construction of new
dwellings infeasible.
Updated to be consistent with Zoning
Regulations update. The Zoning
Regulations require housing as a part
of any development within the
downtown.
6.3 6.2 Housing
Production
If City services must be rationed to development
projects, residential projects will be given priority
over non-residential projects. As required by SB
1087, Housing affordable to lower income
households will be given first priority.
6.4 6.3 Housing
Production
City costs of providing services to housing
development will be minimized. Other than for
existing housing programs encouraging housing
affordable to extremely low, very-low and low
income persons, the City will not make new
housing more affordable by shifting costs to
existing residents.
6.5 6.4 Housing
Production
When sold, purchased, or redeveloped for public
or private uses, City-owned properties within the
urban reserve shall include housing as either a
freestanding project or part of a mixed-use
development where land is suitable and
appropriate for housing.
Page 9
Item 7
Packet Page 72
GENP-0217-2020 & EID-0218-2020
# New # Goals Policy/Program Reason for Modification
6.6 ----- Housing
Production
Property located behind the former County
General Hospital shall be designated a “Special
Considerations” zone and may be considered
suitable for residential development after further
analysis and environmental review, provided that
development be limited to site areas with average
slopes of less than 20 percent, that approximately
one-half of the total site area be dedicated for
open space and/or public use, and that an
additional water tank be provided if determined
necessary to serve new development.
Completed as a part of the LUE
update as part of the special focus
areas section; Program 8.6. General
Hospital Site.
6.7 6.5 Housing
Production
Support the redevelopment of excess public and
private utility properties for housing where
appropriately located and consistent with the
General Plan.
6.8 6.6 Housing
Production
Consistent with the City’s goal to stimulate
higher density infill where appropriate in the
Downtown Core (C-D Zone), Upper Monterey,
and Mid-Higuera Special Focus Areas,, the City
shall consider changes to the Zoning Regulations
that would allow for flexible density standards
that support the development of smaller
apartments and efficiency units.
This policy was updated to encourage
additional residential units not only in
Downtown, but in Upper Monterey
and Mid-Higuera Special Focus Areas
consistent with the City’s Major City
Goal work program and new Program
2.15.
6.9 6.7 Housing
Production
Encourage and support employer/employee
financing programs and partnerships to increase
housing opportunities specifically targeted
towards the local workforce.
Revised language allows for more
flexibility and creativity to implement
the policy.
6.10 6.8 Housing
Production
To help meet the 6th cycle RHNA production
targets Quantified Objectives, the City will
support residential infill development and
promote higher residential density where
appropriate.
Updated to be consistent with the 6th
Cycle RHNA.
----- 6.9 Housing
Production
Specific plans for any new area identified shall
include R-3 and R-4 zoned land to ensure
sufficient land is designated at appropriate
densities to accommodate the development of
extremely low-, very low- and low-income
dwellings.
Converted Program 6.14 into a policy.
6.11 6.10 Housing
Production
Maintain the General Plan and Residential
Growth Management Regulations (SLOMC
17.88144) exemption for new housing in the
Downtown Core (C-D zone), accessory dwelling
units (ADUs), and new housing in other zones
that is enforceably for deed-restricted for
extremely-low, very low, low- and moderate
income households, pursuant to the Affordable
Housing Standards.
Updated to be consistent with Zoning
Regulations update.
Page 10
Item 7
Packet Page 73
GENP-0217-2020 & EID-0218-2020
# New # Goals Policy/Program Reason for Modification
6.12 6.11 Housing
Production
Continue to allow flexible parking regulations for
housing development, especially in the
Downtown Core (C-D Zone), including the
possibilities of flexible use of city parking
facilities by Downtown residents, where
appropriate, and reduced or no parking
requirements where appropriate guarantees limit
occupancies to persons without motor vehicles or
who provide proof of reserved, off-site parking.
Such developments may be subject to
requirements for parking use fees, use limitations
and enforcement provisions.
6.13 6.12 Housing
Production
Continue to develop incentives to encourage
additional housing in the Downtown, Upper
Monterey, and Mid-Higuera Special Focus Areas
Downtown Core (C-D Zone), particularly in
mixed-use developments. Density based on
flexible density average unit size in a project
should be explored to encourage the development
of smaller efficiency units.
Modified to be consistent with Policy
6.6.
6.14 ---- Housing
Production
Specific plans for any new expansion area
identified shall include R-3 and R-4 zoned land
to ensure sufficient land is designated at
appropriate densities to accommodate the
development of extremely low, very-low and low
income dwellings. These plans shall include sites
suitable for subsidized rental housing and
affordable rental and owner-occupied dwellings,
and programs to support the construction of
dwellings rather than payment of in-lieu housing
fees. Such sites shall be integrated within
neighborhoods of market-rate housing and shall
be architecturally compatible with the
neighborhood.
Converted to Policy 6.9.
6.15 6.13 Housing
Production
Consider General Plan amendments to rezone
commercial, manufacturing or public facility
zoned areas for higher-density, infill or mixed-
use housing where compatible with surrounding
development land development patterns are
suitable and where impact to Low-Density
Residential areas is minimal. For example, areas
to be considered for possible rezoning include,
but are not limited to the following sites:
A. Portions of South Broad Street Corridor and
Little Italy area
B. 1499 San Luis Drive (rezone vacant and
underutilized School District property)
C. 1642 Johnson Avenue (vacant School
District property)
D. 4325 South Higuera Street (former P.G.&E.
yard)
E. 4355 Vachell Lane (vehicle storage)
Updated to remove sites that have
been developed and added new sites
that may be considered for additional
housing development.
New language added per the
recommendation of the PC at the June
10, 2020 meeting.
Page 11
Item 7
Packet Page 74
GENP-0217-2020 & EID-0218-2020
# New # Goals Policy/Program Reason for Modification
F. 173 Buckley Road (Avila Ranch)
G. 2143 Johnson Avenue (adjacent to County
Health Department)
H. 3710 Broad Street (Plumbers and
Steamfitters Union)
I. 11950 Los Osos Valley Road (Pacific Beach
High School)
J. 2500 Block of Boulevard Del Campo
(adjacent to Sinsheimer Park)
K. 12165 & 12193 Los Osos Valley Road
(adjacent to Home Depot)
L. 1150 & 1160 Laurel Lane (Atoll Business &
Technology Center)
M. 600 Tank Farm Road (Temporary
Unimproved Parking Area)
N. 12500 Los Osos Valley Road (053-141-013)
(Agricultural fields and San Luis Creek)
O. Los Osos Valley Road (053-161-020)
(Agricultural fields and San Luis Creek)
6.16 6.14 Housing
Production
Continue to provide resources that support the
SLO County Housing Trust fund’s efforts to
provide below market financing and technical
assistance to affordable housing developers as a
way to increase affordable housing production in
the City of San Luis Obispo.
6.17 6.15 Housing
Production
Encourage residential development through infill
development and densification within City Limits
and in designated expansion areas over new
annexation of land.
6.18 6.16 Housing
Production
Seek opportunities with other public and private
agencies to identify excess, surplus, ans
underutilized parcels for residential development.
and public utilities to identify, assemble, develop,
redevelop and recycle surplus land for housing,
and to convert vacant or underutilized public,
utility or institutional buildings to housing.
Consistent with new State law.
6.19 6.17 Housing
Production
Continue to incentivize affordable housing
development consistent with SLOMC
(Affordable Housing Incentives). with density
bonuses, parking reductions and other
development incentives, including City financial
assistance.
Simplified as the requirements are
outlined in the City’s Municipal
Code. Reference to City financial
assistance was removed because it is
not a “development incentive.”
6.20 6.18 Housing
Production
Continue to financially assist in the development
of housing affordable to extremely low, very-low,
low- or and moderate income households during
the planning period using State, Federal and local
funding sources, with funding priority given to
projects that result in the maximum housing
benefits for the lowest household income levels.
Page 12
Item 7
Packet Page 75
GENP-0217-2020 & EID-0218-2020
# New # Goals Policy/Program Reason for Modification
6.21 6.19 Housing
Production
Actively seek new revenue sources, including
State, Federal and private/non-profit sources, and
financing mechanisms to assist with development
of affordable housing affordable to development
for extremely low, very low and low or moderate
income households and first- time homebuyers.
6.22 ---- Housing
Production
Continue to exempt the rehabilitation or
remodeling of up to 4 dwellings of up to 1200
square feet each from Architectural Review
Commission review. New multi-unit housing
may be allowed with “Minor or Incidental” or
staff level architectural review, unless the
dwellings are located on a sensitive or historically
sensitive site.
Implemented. Section 17.106.030 has
been added to the 2018 Zoning
Regulations update which references
SLOMC Chapter 2.48 that includes
language that exempts the
rehabilitation or remodeling of up to 4
dwellings of up to 1,200 square feet
each from Architectural Review
Commission review.
6.23 ----- Housing
Production
Assist in the production of affordable housing by
identifying vacant or underutilized City-owned
property suitable for housing, and dedicate public
property, where feasible and appropriate for such
purposes, as development projects are proposed.
Implemented. Staff completed an
inventory of City-owned property and
found that no City-owned properties
are suitable for housing.
6.24 ----- Housing
Production
Community Development staff will proactively
provide information for properties suitable for
housing as identified in the Land Use and
Housing Elements.
Implemented. Staff actively provides
information regarding any land
identified in the Housing Element or
the Land Use Element that may be
suitable for housing development
possibilities.
6.25 ----- Housing
Production
Evaluate and consider amending the General Plan
to designate the 46 acres associated with the
former County General Hospital as a “Special
Considerations” zone, suitable for housing
development on areas of the site of less than 20
percent average slope, provided that open space
dedication and public improvements are part of
the project.
Completed. The Land Use Element
was updated in 2015 to include
Program 8.6 which identified the
General Hospital site as a Special
Planning Area.
6.26 6.20 Housing
Production
Continue to update the Affordable Housing
Incentives (Chapter 17.90140, SLOMC) and
Zoning Regulations to ensure density bonus
incentives are consistent with State Law.
Updated to be consistent with Zoning
Regulations update.
6.27 ----- Housing
Production
Evaluate and consider increasing the residential
density allowed in the Neighborhood-
Commercial (C-N), Office (O) and Downtown
Commercial (C-D) zoning districts. The City will
evaluate allowing up to 24 units per acre in the C-
N and O zones, and up to 72 units per acre in the
C-D zone, twice the current density allowed in
these areas.
A detailed analysis of increasing the
residential density allowed in various
zoning districts was considered and
evaluated as a part of the zoning
update and determined that it would
need to be part of a larger update to
the Land Use Element (LUE) and
require additional environmental
review.
Page 13
Item 7
Packet Page 76
GENP-0217-2020 & EID-0218-2020
# New # Goals Policy/Program Reason for Modification
6.28 ----- Housing
Production
Evaluate how lot patterns (i.e. size, shape, slope)
in the City’s multi-family zones affect the City’s
ability to meet housing production policies. If
warranted, consider setting a minimum number
of dwellings on each legal lot in the R-2, R-3 and
R-4 zones, regardless of lot size, when other
property development standards, such as parking,
height limits and setbacks can be met.
Implemented. In 2018 the Zoning
Regulations were updated to include
minimum number of dwellings on
each legal lot in the R-2, R-3 and R-4
zones, regardless of lot size as long as
the development can meet all property
development standards, such as
parking, height limits and setbacks.
6.29 ----- Housing
Production
Continue to pursue incentives to encourage
development of Secondary Dwelling Units
(SDUs). Possible incentives include SDU design
templates, flexible development standards, fee
reductions or deferrals, or other measures to
encourage the construction of SDUs where
allowed by zoning.
Implemented. The City updated the
Zoning Regulations in 2018 and 2020
to be consistent with State law
regarding SDUs (now called ADUs –
Accessory Dwelling Units). In
addition, the City has also eliminated
impact fees requirements for ADUs.
6.30 6.21 Housing
Production
Evaluate and consider updating adopting the
Subdivision and Zoning Regulations changes to
support small lot subdivisions, ownership
bungalow court development Eliminate the one
acre minimum lot area for PD overlay zoning,
and other alternatives to conventional subdivision
design.
The Zoning Regulations were updated
in 2018 and included a revision to the
PD overlay zoning to allow a
minimum of one-half of a contiguous
acre for a PD (as opposed to a one acre
minimum).
6.31 ----- Housing
Production
Consider scaling development impact fees for
residential development based on size, number of
bedrooms, and room counts.
Completed as a part of the AB 1600
and fee schedule update.
6.32 6.22 Housing
Production
Continue to submit annual the Housing Element
Annual Progress Reports (APR) to the State
Department of Housing and Community
Development and the Governor’s Office of
Planning and Research on or before April 1st of
each year for the prior calendar year, pursuant to
per Government Code Section 65400.
Goal 7 - Neighborhood Quality. Maintain, preserve and enhance the quality and livability of neighborhoods. encourage
neighborhood stability and owner occupancy, and improve neighborhood appearance, function and sense of
community.
Modified to provide focus on neighborhood quality, amenities, and access and less on specific tenure. Where projects propose
home ownership, Goal 10: Local Preference, outlines policies and programs to support local home ownership.
7.1 7.1 Neighborhood
Quality
Within established neighborhoods, new
residential development should shall be of
compatible design character, size, density and
quality that respects the existing neighborhood
character, to enhance and maintains the quality of
life for existing and future residents.
Reworded for consistency with state
law.
Page 14
Item 7
Packet Page 77
GENP-0217-2020 & EID-0218-2020
# New # Goals Policy/Program Reason for Modification
7.2 7.2 Neighborhood
Quality
Higher density housing should maintain high
quality standards for unit design, privacy,
security, on-site amenities, and public and private
open space. Such standards should be flexible
enough to allow innovative design solutions. in
special circumstances, e.g. in developing mixed-
use developments or in housing in the Downtown
Core.
7.3 ----- Neighborhood
Quality
Within established neighborhoods, housing
should not be located on sites designated in the
General Plan for parks or open space.
Covered by polices within the
Conservation and Open Space
Element and the Land Use Element.
7.4 7.3 Neighborhood
Quality
Within expansion areas, New residential
developments should incorporate be an integral
part of an existing neighborhood or should
establish a new neighborhood, with pedestrian
and bicycle linkages that provide direct,
convenient and safe access to adjacent
neighborhoods, schools, parks, and shopping
areas.
The City no longer has any areas that
are considered “expansion areas.” The
Policy should apply to all new
residential projects.
7.5 7.4 Neighborhood
Quality
Discourage the creation of walled-off or physical
separations between residential enclaves, or of
separate, unconnected tracts to enhance, is
discouraged because physical separations prevent
the formation of safe, walkable, and enjoyable
neighborhoods.
Reworded for clarity.
7.6 7.5 Neighborhood
Quality
Housing should shall be sited to enhance safety
along neighborhood streets and in other public
and semi-public areas.
7.7 7.6 Neighborhood
Quality
The physical design of neighborhoods and
dwellings should promote walking and bicycling
and preserve open spaces and views.
7.8 7.7 Neighborhood
Quality
Continue to encourage strategies and programs
that increase long-term residency and
stabilization in neighborhoods.
---- 7.8 Neighborhood
Quality
Preserve the fabric, amenities, yards (i.e.
setbacks), and overall character and quality of life
of established neighborhoods.
Policy 3.6 was moved to Goal 7 as it
better relates to Neighborhood
Quality than Housing Conservation.
---- 7.9 Neighborhood
Quality
Encourage neighborhood design elements that
improve overall health of residents such as
providing safe and convenient opportunities to
access healthy food and attractive places for
recreational exercise.
This is a new policy that has been
added as recommended by the
Planning Commission to address
public health and housing.
Page 15
Item 7
Packet Page 78
GENP-0217-2020 & EID-0218-2020
# New # Goals Policy/Program Reason for Modification
7.9 7.10 Neighborhood
Quality
Continue to utilize a diverse range of outreach
methoods implement varied strategies, including
such as early notification through email
notifications electronic media, the City’s website
and social media accounts improvements, and
neighborhood outreach meetings, etc., to ensure
residents are aware of and able to participate in
planning decisions affecting their neighborhoods
early in the planning process.
Updated to be consistent with current
requirements and policies.
7.10 7.11 Neighborhood
Quality
Continue to work directly with neighborhood
groups and individuals to address concerns
pertaining to Identify specific neighborhood
needs, problems, trends and opportunities for
physical improvements.
7.11 7.12 Neighborhood
Quality
Continue to fund neighborhood improvements,
including parks, sidewalks, traffic calming
devices, crosswalks, parkways, street trees and
street lighting to improve aesthetics, safety and
accessibility.
7.12 ----- Neighborhood
Quality
Continue to develop and implement
neighborhood parking strategies, including
parking districts, to address the lack of on- and
off-street parking in residential areas.
Implemented. The City has a process
where Neighborhood Parking
Districts can be created. The City has
also been working on the creation of
demand-based parking strategies.
7.13 7.13 Neighborhood
Quality
Continue the City’s Neighborhood Services and
proactive enforcement Code Enforcement
programs to support neighborhood wellness.
---- 7.14 Neighborhood
Quality
Encourage new developments with 10 or more
residential units be reviewed and scored by the
Healthy Communities Work Group prior to
submitting a planning application to the City.
This is a new program recommended
by the Planning Commission to
support Policy 7.9.
---- 7.15 Neighborhood
Quality
Encourage developments with 10 or more
residential units to include the following: outdoor
visiting and gathering spaces, places to exercise
or recreate, and spaces reserved for edible
landscape or community gardens.
This is a new program recommended
by the Planning Commission to
support Policy 7.9.
Goal 8 - Special Housing Needs. Encourage the creation and maintenance of housing for those with special housing
needs.
8.1 8.1 Special
Housing
Needs
Encourage housing development that meets a
variety of special needs, including large families,
single parents, disabled persons, the elderly,
students, veterans, the homeless, or those seeking
congregate care, group housing, single-room
occupancy or co-housing accommodations,
utilizing universal design.
Page 16
Item 7
Packet Page 79
GENP-0217-2020 & EID-0218-2020
# New # Goals Policy/Program Reason for Modification
8.2 8.2 Special
Housing
Needs
Preserve manufactured housing or mobile home
parks and support changes in these forms of
tenure only if such changes provide residents
with greater long-term security or comparable
housing in terms of quality, cost, and livability.
8.3 ----- Special
Housing
Needs
Encourage manufactured homes in Specific Plan
Areas by:
A) When the City considers adopting new
specific plans, including policies that support
owner-occupied manufactured home parks with
amenities such as greenbelts, recreation facilities,
and shopping services within a master planned
community setting. Such parks could be
specifically designed to help address the needs of
those with mobility and transportation
limitations.
B) Establishing lot sizes, setback, and parking
guidelines that allow for relatively dense
placement of manufactured homes within the
master planned neighborhood.
C) Locating manufactured home parks near
public transit facilities or provide public
transportation services to the manufactured home
parks to minimize the need for residents to own
automobiles.
Manufactured homes are allowed in
all residential zones; applicants have
not shown any interest in creating new
manufactured home parks. New,
higher density development is more
efficient and cost effective. The most
recent affordable housing projects
have all been multi-family
apartments.
8.4 8.3 Special
Housing
Needs
Encourage Cal Poly University to continue to
develop on-campus student housing to meet
existing and future needs and to lessen pressure
on City housing supply and transportation
systems.
8.5 8.4 Special
Housing
Needs
Strengthen the role of on-campus housing by
encouraging Cal Poly University to require
freshmen and sophomore students to live on
campus.
8.6 8.5 Special
Housing
Needs
Locate fraternities and sororities on the Cal Poly
University campus. Until that is possible, they
should be located in Medium-High and High-
Density residential zones near the campus.
8.7 8.6 Special
Housing
Needs
Encourage Cal Poly University to develop and
maintain faculty and staff housing, consistent
with the General Plan.
8.8 8.7 Special
Housing
Needs
Disperse special needs living facilities
throughout the City where public transit and
commercial services are available, rather than
concentrating them in one district.
Page 17
Item 7
Packet Page 80
GENP-0217-2020 & EID-0218-2020
# New # Goals Policy/Program Reason for Modification
8.9 8.8 Special
Housing
Needs
Support Continue to support regional efforts to
address homelessness implement the document
“The Path Home: San Luis Obispo County’s 10
Year Plan to End Chronic Homelessness”.
Revised to be consistent with current
activities and SB 101.
8.10 8.9 Special
Housing
Needs
Encourage a variety of housing types that
accommodate persons with disabilities, and
promote aging in place, and include amenities
such as visiting space, first floor accessibility,
etc.including a goal of “visitability” in new
residential units, with an emphasis on first-floor
accessibility to the maximum extent feasible.
Based on community feedback, this
policy was revised to highlight that
housing for persons with disabilities
or aging in place should include
amenities that support those living
within the units.
8.11 ----- Special
Housing
Needs
Encourage changes to City regulations that would
support the special housing needs of disabled
persons, including persons with developmental
disabilities.
Completed. Regulations have been
updated to address special housing
needs. In addition, the building code
is regularly updated to meet State and
Federal requirements.
8.12 8.10 Special
Housing
Needs
Assist the homeless and those at risk of becoming
homeless by supporting shelters, temporary
housing, and transitional housing. and by
facilitating general housing assistance.
The role of the City is not to place
individuals in housing. There are
several local non-profits involved
with helping people find housing. The
City, if contacted, connects people to
these local organizations.
8.13 8.11 Special
Housing
Needs
Continue to provide resources that support local
and regional solutions to meeting the needs of the
homeless and continue to support, jointly with
other agencies, shelters and programs, such as
Housing First and Rapid Rehousing, for the
homeless and for displaced individual and
families. women and children.
8.14 8.12 Special
Housing
Needs
Continue to enforce the mobile home rent
stabilization program to minimize increases in the
cost of mobile home park space rents.
8.15 8.13 Special
Housing
Needs
Continue to look for Support opportunities in
specific plan areas within the City suitable for
tenant-owned mobile-home parks, cooperative or
limited equity housing, manufactured housing,
self-help housing, or other types of housing that
meets special needs.
8.16 8.14 Special
Housing
Needs
Advocate developing more housing and
refurbishing campus housing at Cal Poly
University.
8.17 8.15 Special
Housing
Needs
Work with Cal Poly University Administration to
secure designation of on-campus
fraternity/sorority living groups.
Page 18
Item 7
Packet Page 81
GENP-0217-2020 & EID-0218-2020
# New # Goals Policy/Program Reason for Modification
8.18 8.16 Special
Housing
Needs
Jointly develop and implement a student housing
plan and Continue to support “good neighbor
programs” with Cal Poly State University, Cuesta
College, the City and local City residents. The
program would seek to improve communication
and cooperation between all groups the City and
the schools, set on campus student housing
objectives and establish clear, effective standards
for about student housing in residential
neighborhoods.
Revised for clarity.
8.19 8.17 Special
Housing
Needs
Provide public educational information at various
City Offices, on the City website, and other
electronic media platforms the Community
Development Department public counter on
universal design concepts (i.e. aging in place) for
new and existing residential dwellings.
Revised for clarity.
8.20 8.18 Special
Housing
Needs
Transitional Housing and Supportive Housing:
Continue to allow the establishment of
transitional and supportive housing in all zoning
districts where residential uses are allowed.
Amend the Zoning Regulations to allow
homeless shelters, transitional housing and
supportive housing (low barrier navigation
centers) in all residential zones, areas zoned for
mixed-uses, and nonresidential zones permitting
multifamily uses without a conditional use permit
to be alignment with Government Code Section
65660 (AB 101).
Revised to be consistent with State
law.
8.21 8.19 Special
Housing
Needs
Continue to look for partnership opportunities
with non-profit housing developers and service
providers to that can be acquire vacant, blighted,
or underutilized properties (land, retail or
commercial space, motels, apartments, housing
units, mobile home parks) for and conversion into
affordable permanent and supportive housing and
permanent supportive housing for homeless
persons and families.
Revised to broaden the opportunities
for the City to partner with local non-
profit housing developers.
8.22 ----- Special
Housing
Needs
Consider addition of an overlay zone to existing
and future mobile home and trailer park sites to
provide constructive notice that additional
requirements, such as rent stabilization and a
mobile home park conversion ordinance may
apply.
The City’s Municipal Code contains a
Mobile Home Park Rent Stabilization
Ordinance that applies citywide to all
mobile home parks. The Ordinance
satisfies this program by protecting
owners and renters of mobile homes
from unreasonable rent increases.
Staff has evaluated that an overlay
zone would not provide any additional
benefit.
Page 19
Item 7
Packet Page 82
GENP-0217-2020 & EID-0218-2020
# New # Goals Policy/Program Reason for Modification
8.23 8.20 Special
Housing
Needs
Continue to seek State, Federal, and local funding
sources to encourage the creation and financially
assist the development of housing for persons
with developmental disabilities. The City will
seek grantopportunities for housing construction
and rehabilitation specifically targeted for
persons with developmental disabilities.
Consolidated the wording of this
program. No change in the content.
8.24 ----- Special
Housing
Needs
Continue to coordinate with the County, social
services providers and non-profit organizations
for delivery of existing, improved and expanded
services, including case management, drug,
alcohol, detoxification, and mental health
services.
This program is covered in Program
8.21.
8.25 8.21 Special
Housing
Needs
Continue to coordinate engage with the County
Department of Social Services, Homeless
Services Oversight Council (HSOC), social
services providers, and non-profit organizations
and Friends of Prado Day Center (FPDC) to
identify, evaluate, and implement strategies to
reduce the impacts of homelessness on the City.
Updated language to be consistent
with current organizations and
agencies.
8.22 Special
Housing
Needs
Work with other jurisdictions to advocate for
State legislation that would: 1) provide funding to
help Cal Poly University provide adequate on-
campus student housing, and 2) allow greater
flexibility for State universities and community
colleges to enter into public-private partnerships
to construct student housing.
Relocated Program 10.6.
Goal 9 - Sustainable Housing Site, and Neighborhood Design. Encourage housing that is resource conserving, healthful,
economical to live in, environmentally benign, and recyclable when demolished.
9.1 9.1 Sustainable
Housing, Site
and
Neighborhood
Design
Residential developments should promote
sustainability consistent with the Climate Action
Plan (CAP) and California Building Energy
Efficiency Standards – Title 24 in their design,
placement, and functionality use. Sustainability
can be promoted through a variety of housing
strategies, including the following:
A) Maximize use of renewable, recycled-content,
and recycled materials, and minimize use of
building materials that require high levels of
energy to produce or that cause significant,
adverse environmental impacts.
B) Incorporate renewable energy features into
new homes, including passive solar design, solar
hot water, solar power, and natural ventilation
and cooling.
C) Minimize thermal island effects through
reduction of heat-absorbing pavement and
increased tree shading.
Avoid building materials that may contribute to
health problems through the release of gasses or
glass fibers into indoor air.
Updated to be consistent with current
City and State policies. Strategies
were removed because they are
outlined in the CAP and Title 24.
Page 20
Item 7
Packet Page 83
GENP-0217-2020 & EID-0218-2020
# New # Goals Policy/Program Reason for Modification
D) Design dwellings for quiet, indoors and out,
for both the mental and physical health of
residents.
F) Design dwellings economical to live in
because of reduced utility bills, low cost
maintenance and operation, and improved
occupant health.
G) Use construction materials and methods that
maximize the recyclability of a building’s parts.
Educate public, staff, and builders to the
advantages and approaches to sustainable design,
and thereby develop consumer demand for
sustainable housing.
I) City will continue to refer to a sustainable
development rating system, such as the LEED or
GreenPoint programs when evaluating new
development proposals.
9.2 9.2 Sustainable
Housing, Site
and
Neighborhood
Design
Residential units site, subdivision layouts, and
neighborhood designs amenities should be
coordinated to support make residential
sustainable design work. Some ways to do this
include:
A) Design subdivisions to maximize solar access
for each dwelling and site.
B) Design sites so residents have usable outdoor
space with access to both sun and shade.
C) Streets and access ways should minimize
pavement devoted to vehicular use.
D) Use neighborhood retention basins to purify
street runoff prior to its entering creeks. Retention
basins should be designed to be visually attractive
as well as functional. Fenced-off retention basins
should be avoided.
E) Encourage cluster development with
dwellings grouped around significantly-sized,
shared open space in return for City approval of
smaller individual lots.
F) Treat public streets as landscaped parkways,
using continuous plantings at least six feet wide
and where feasible, median planters to enhance,
define, and to buffer residential neighborhoods of
all densities from the effects of vehicle traffic.
Examples were removed as
innovative sustainable designs are
extensive.
9.3 ----- Sustainable
Housing, Site
and
Neighborhood
Design
Preserve the physical neighborhood qualities in
the Downtown Planning Area that contribute to
sustainability. Some ways to do this include:
A) Maintain the overall scale, density and
architectural character of older neighborhoods
surrounding the Downtown Core.
B) Encourage the maintenance and rehabilitation
of historically designated housing stock.
The Historic Preservation Ordinance
preserves and protects historic
structures and districts. Additionally,
the Conservation and Open Space
Element includes Policies 3.3.4, 3.3.5,
that direct preservation of historic
buildings, districts, and
neighborhoods. Program 3.6.3 directs
construction within historic districts.
Page 21
Item 7
Packet Page 84
GENP-0217-2020 & EID-0218-2020
# New # Goals Policy/Program Reason for Modification
9.4 9.3 Sustainable
Housing, Site
and
Neighborhood
Design
To promote energy conservation and a cleaner
environment, Continue to encourage the
development of dwellings with energy-efficient
designs, utilizing passive and active solar
features, and the use of energy-saving techniques
that exceed minimums prescribed by State law.
9.5 9.4 Sustainable
Housing, Site
and
Neighborhood
Design
Actively Continue to promote water conservation
through housing and site design to help moderate
the cost of housing.
9.6 9.5 Sustainable
Housing, Site
and
Neighborhood
Design
Support programs that provide financing for
sustainable home upgrade projects such as
installation of solar panels, heating and cooling
systems, water conservation and windows to
improve the energy efficiency of the City’s
existing housing stock.
9.7 9.6 Sustainable
Housing, Site
and
Neighborhood
Design
Continue to educate planning and building staff
and citizen review bodies on energy conservation
issues, including the City’s energy conservation
policies and Climate Action Plan. Staff shall
work with applicants to achieve the City’s energy
conservation goals.
9.8 9.7 Sustainable
Housing, Site
and
Neighborhood
Design
Continue to provide assurance of long-term solar
access for new or remodeled housing and for
adjacent properties, consistent with historic
preservation guidelines and revise regulations
found to be inadequate.
9.9 ----- Sustainable
Housing, Site
and
Neighborhood
Design
Continue to implement the Water Quality Control
Board’s “Post-Construction Stormwater
Management Requirements for Development
Projects in the Central Coast Region”, to reduce
the amount of impermeable surface.
Implemented. All development
projects are required to include Post-
Construction Stormwater
Management Requirements as a part
of a project application, which allows
staff to verify that the project is
consistent with the Regional Water
Board’s Requirements.
9.10 9.8 Sustainable
Housing, Site
and
Neighborhood
Design
Implement Climate Action Plan programs that
increase the production of “green” housing units
and projects and require use of sustainable and/or
renewable materials, water and energy
technologies (such as, but not
limited to solar, wind, or thermal).
9.11 9.9 Sustainable
Housing, Site
and
Neighborhood
Design
Continue to promote building materials reuse and
recycling in site development and residential
construction, including flexible standards for use
of salvaged, recycled, and “green” building
materials. Continue the City’s
construction and demolition debris recycling
program as described in Chapter 8.05 of the
Municipal Code.
Page 22
Item 7
Packet Page 85
GENP-0217-2020 & EID-0218-2020
# New # Goals Policy/Program Reason for Modification
9.12 ----- Sustainable
Housing, Site
and
Neighborhood
Design
Consider incentivizing dwelling units to a
minimum size of 150 square feet, consistent with
the California Building Code, by reduced impact
fees and property development standards.
Implemented. The City has
implemented a reduction in the impact
fees for smaller units with AB 1600
and the fee schedule update.
Additionally, ADU requirements
have been revised to be consistent
with state law and impact fees
removed in order to incentivize the
development of this type of smaller
unit.
9.13 9.10 Sustainable
Housing, Site
and
Neighborhood
Design
Continue to support Consider participating in
financing programs for sustainable home
improvements such as solar panels, heating and
cooling systems, water conservation and energy
efficient windows.
Goal 10 - Local Preference. Maximize affordable housing opportunities for those individuals who are employed in
business that are located in geographic areas that are customarily included in the City’s annual jobs -housing balance
analysis who live or work in San Luis Obispo while seeking to balance job growth and housing supply.
Based on community feedback and a need for more housing for local individuals who work in the City or nearby vicinity, Goal
10 has been updated to focus on providing housing for individuals who are employed in business that are located in geographic
areas that are customarily included in the City’s annual jobs-housing balance analysis.
10.1 10.1 Local
Preference
Administer City housing programs and benefits,
such as First Time Homebuyer Assistance or
affordable housing lotteries, to give preference to
individuals as outlined in Policy 10.2. to: 1)
persons living or working in the City or within the
City’s Urban Reserve, and 2) persons living in
San Luis Obispo County.
Revised to be consistent with new
Policy 10.2.
10.2 ----- Local
Preference
Cal Poly State University and Cuesta College
should actively work with the City and
community organizations to create positive
environments around the Cal Poly Campus by:
A) Establishing standards for appropriate student
densities in neighborhoods near Campus;
B) Promoting homeownership for academic
faculty and staff in Low-Density Residential
neighborhoods in the northern part of the City;
and
C) Encouraging and participating in the
revitalization of degraded neighborhoods.
This Policy did not address local
preference. Supporting housing for
employees at Cal Poly, Cuesta, CMC,
etc. is covered in Policy 10.2.
10.2 Local
Preference
Encourage, and where legally allowed, require
new housing development to give preference in
the following order: 1) individuals who are
employed in business that are located in
geographic areas that are customarily included in
the City’s annual jobs-housing balance analysis,
2) individuals residing in the County, and 3)
finally to individuals from outside the County.
This new policy sets preferences for
new, for-sale housing developments
in the initial offering and sales to
improve the City’s jobs-housing
balance, reduce competition from
outside buyers and allow those that
work in the City the opportunity to
live in the City, thereby reducing
commute times.
Page 23
Item 7
Packet Page 86
GENP-0217-2020 & EID-0218-2020
# New # Goals Policy/Program Reason for Modification
10.3 Local
Preference
Continue to work with the County of San Luis
Obispo for any land use decisions that create
significant expansion of employment in the
unincorporated areas adjacent to the City to
mitigate housing impacts on the City.
10.4 Local
Preference
Encourage residential developers to sell or rent
their projects to those residing or employed in the
City first before outside markets.
Added to implement Policy 10.2.
10.5 Local
Preference
Work with Cal Poly to address the link between
enrollment and the expansion of campus housing
programs at Cal Poly University to reduce
pressure on the City's housing supply.
This program is covered in Program
8.16.
10.6 Local
Preference
Work with other jurisdictions to advocate for
State legislation that would: 1) provide funding to
help Cal Poly University provide adequate on-
campus student housing, and 2) allow greater
flexibility for State universities and community
colleges to enter into public-private partnerships
to construct student housing.
Relocated under Goal 8 as Program
8.22.
Goal 11 - Suitability. Develop and retain housing on sites that are suitable for that purpose.
Policies and programs within Goal 11 are covered by the other Goals of the Housing Element, the Housing Major City Goal,
the Conservation and Open Space Element, the Land Use Element, and the Safety Element.
11.1 Suitability Where property is equally suited for commercial
or residential uses, give preference to residential
use. Changes in land use designation from
residential to non-residential should be
discouraged.
11.2 Suitability Prevent new housing development on sites that
should be preserved as dedicated open space or
parks, on sites subject to natural hazards such as
unmitigable geological or flood risks, or wild fire
dangers, and on sites subject to unacceptable
levels of man-made hazards or nuisances,
including severe soil contamination, airport noise
or hazards, traffic noise or hazards, odors or
incompatible neighboring uses.
11.3 Suitability The City will continue to ensure the ability of
legal, non-conforming uses to continue where
new development is proposed.
Page 24
Item 7
Packet Page 87
Page intentionally left
blank.
Item 7
Packet Page 88
REVIEW OF THE 6TH CYCLE HOUSING ELEMENT UPDATE AND ANEGATIVE DECLARATION OF ENVIRONMENTAL IMPACT1September 1, 2020
Recommendation1.Consider the Planning Commission recommendation to adopt aResolution approving the Housing Element Update and the changesincorporated into the Housing Element based on PlanningCommission direction; and2.Direct staff to make updates to the Housing Element, consistent withfeedback provided by the Planning Commission and the State’sDepartment of Housing and Community Development (HCD); and3.Authorize staff to continue to work with HCD to ensure that thedocument fully complies with its guidelines; and4.Direct staff to return to the City Council for final approval of theHousing Element, following HCD’s determination that it fully complieswith State law and HCD guidelines.2
Housing Successes, 2014-20193Implemented 17 programs within the current Housing Element.Issued 1,544 new residential building permits, over 200 werenew deed-restricted affordable units.Supported the preservation and rehabilitation of 279 existingdeed restricted affordable housing units.Strong partnerships with local non-profits have resulted in thedevelopment and maintenance of affordable housing.The long-term planning has facilitated the framework forimplementing new specific plan and development areas to helpmeet current and future housing needs.
Housing Element Update4The City’s Housing Element update is due to HCD byDecember 31, 2020.Moving from a 5-year cycle to an 8-year cycle planningperiod.The City is required to develop programs designed to meetits share of the surrounding region’s housing needs for allincome groups.The City has been allotted a RHNA of 3,354 housing unitsto plan for in the new 6th Cycle Housing Element.
Regional Housing Needs Allocation5
6Regional Housing Needs AllocationIncome Level(% of County Median Income)6th Cycle RHNAExtremely Low & Very Low825Low 520Moderate 603Above Moderate 1,406Total Units 3,354Income Level(% of County Median Income)5th Cycle RHNATotal Units PermittedExtremely Low & Very Low285 166Low 179 35Moderate 202 19Above Moderate 478 1,052Total Units 1,144 1,272
Housing and Community Development (HCD)The Housing Element is required to be submitted for reviewand certification by the state of California.If the Housing Element is not certified, the City would beineligible for certain grant funding and could be subject tolawsuits and loss of its land use authority.City staff held a phone conference with HCD to discuss theirreview of the draft Housing Element Update.The City is currently addressing HCD comments as wellas the comments received in a letter from the CaliforniaRural Legal Assistance, Inc. (CRLA).7
Public Engagement8Online Survey – June 8, 2020 – June 24, 2020Chamber of Commerce (Economic Development Committee) – June 4, 2020Economic Vitality Corporation and the Home Builders Association – May 13, 2020Chamber of Commerce (Economic Development Committee) – April 2, 2020Online Survey – December 10, 2019 – January 10, 2020Housing Element Workshop – December 10, 2019Association of Realtors – July 23, 2019
Previous Advisory Body and Council Review9Planning Commission Meeting – July 22, 2020Planning Commission Meeting – June 10, 2020Human Relations Commission Meeting – June 3, 2020Planning Commission Meeting – April 24, 2019Public Forum and City Council Meeting – April 2, 2019
Chapter 3 - Goals, Policies and ProgramsThe core of the Housing Element, however, falls underChapter 3: Goal, Policies and Programs, which providesdirection and a plan for how the City will achieve theaccommodation of 3,354 units as required by HCD.Chapter 3 of the Housing Element has been updated inresponse to public feedback and Planning Commissiondirection.10
Chapter 3 – Program 2.13Update the Inclusionary Housing Ordinance.A Nexus Study was completed in January 2020 andpresented to Council in April 2020.Determined that both residential and commercialdevelopment are creating demand for affordable housingthat is not being met by the housing market.Findings verify that there is a nexus that justifies the Cityhaving an inclusionary housing requirement.11
Chapter 3 – Program 2.15Evaluate a flexible density pilot program within DowntownCore and portions of Upper Monterey and Mid-HigueraSpecial Focus Areas.Allows for more density.Focused on providing smaller, affordable units.12
Chapter 3 – Program 5.413Evaluate opportunities for promoting missing middlehousing types.
Regional Vision for HousingSan Luis Obispo depends on collaborative relationshipsbetween and among government agencies, communityorganizations, and residents to respond to the region’sissues.Early this year, local agencies adopted a San Luis ObispoCountywide Regional Compact.Development of the Regional Infrastructure Plan (RegionalPlan).Chapter 4 presents a regional vision and eight policiesfocused specifically on fostering regional collaboration toplan and develop housing and supportive infrastructure.14
Environmental ReviewA Negative Declaration of Environmental Impact isrecommended for the Housing Element Update because thethere is no substantial evidence that the project or any of itsaspects may cause a significant effect on the environment(CEQA Guidelines section 15063(b)(2)).A 30-day public comment period is open from July 9, 2020 toAugust 7, 2020.No public comment was received regarding the NegativeDeclaration.15
Planning Commission ActionThe Planning Commission provided feedback at twomeetings regarding minor revisions to the goals, policies andprograms, including an additional policy and two newprograms to address healthy communities.The Planning Commission unanimously recommended theCity Council adopt the updates to the City’s Housing Elementand Negative Declaration of Environmental Impact.16
Housing Element Next StepsReceive a letter from HCD by the end of the week that includesfindings from their review of the Draft Housing ElementUpdate.Work with HCD on any inconsistencies with State law.Return to the City Council with the final draft of the HousingElement for final adoption.Submit the adopted Housing Element to HCD for certification.17
Recommendation1.Consider the Planning Commission recommendation to adopt aResolution approving the Housing Element Update and the changesincorporated into the Housing Element based on PlanningCommission direction; and2.Direct staff to make updates to the Housing Element, consistent withfeedback provided by the Planning Commission and the State’sDepartment of Housing and Community Development (HCD); and3.Authorize staff to continue to work with HCD to ensure that thedocument fully complies with its guidelines; and4.Direct staff to return to the City Council for final approval of theHousing Element, following HCD’s determination that it fully complieswith State law and HCD guidelines.18
19
Program 1.7Continue to support local and regional solutions tohomelessness by fundingand advocating forsupportiveprograms,services, and housingsolutions. such as the Maxine Lewis MemorialShelter and The Prado Day Center.20
Policy 7.4Discouragethe creation of walled-offor physicalseparations betweenresidential enclaves, or ofseparate, unconnected tractsto enhance, isdiscouraged because physical separations preventthe formation of safe, walkable, and enjoyableneighborhoodsunless warranted by existing siteconstraints or environmental factors.21
Policy 8.4Strengthen the role of on-campus housing byencouraging Cal Poly University to requirefirst yearand second year freshmen and sophomorestudents to live on campus.22
Affordable Housing23
Affordable Housing24
Regional Vision for HousingR-1: Promote awareness and support of regional efforts that further housing and infrastructure resiliency byutilizing community engagement, and consistent and transparent communication.R-2: Encourage an adequate housing supply and resilient infrastructure,services, and resources to improvethe balance of jobs and housing throughout the Region.R-3: Develop inter-agency partnerships as appropriate to implement goals and policies related to housing andinfrastructure.R-4: Coordinate State, Federal, and other funding opportunities for housing and infrastructure developmentthroughout the Region.R-5: Encourage developers to sell newly constructed housing units to individuals residing or employed withinthe area of the development (a city or the County) first before selling to individuals from outside the County, topromote local preference.R-6: Encourage rental units be prioritized for long term residents ratherthan short term users or vacationrentals.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 streamlinedapprovals for such developments (i.e. Accessory Dwelling Units, etc.).25