Board of Supervisors give second approval to Housing Element implementation items
By Michael Chaldu · Wed Oct 01 2025
Supervisors vote to drop minimum density requirement and add annual review; Regional Housing Incentives for Land Use ordinance also passes
SAN LUIS OBISPO COUNTY — The San Luis Obispo County Board of Supervisors revisited amendments to the county Housing Element implementation items, eventually approving them with a couple more changes, during its regular meeting on Tuesday, Sept. 30.
The board also OK’d a Regional Housing Incentive policy to give developers a little flexibility on their structures.
The Housing Element items were discussed and given a first approval during a previous supervisors meeting on Aug. 19.
The item stemmed from an effort that started March 12, 2024, when the board directed the county’s Department of Planning and Building to prioritize nine key Housing Element implementation actions by establishing the 2020-2028 Housing Element Implementation Framework, which contains near-term and long-term actions aimed at achieving the state-mandated Regional Housing Needs Allocation (RHNA) for the unincorporated county.
On Sept. 10, 2024, the board formed an Ad Hoc 2020-2028 Housing Element Implementation Steering Committee, led by Supervisors Dawn Ortiz-Legg and Jimmy Paulding, to provide guidance on stakeholder engagement and key implementation decision points relating to the Implementation Framework. Other members include representatives from the home builder industry and nonprofit affordable housing builders.
The items recommended at the Aug. 19 meeting were as follows:
- Modify the exception for residential use in commerical land-use, to allow 100% residential use in commercial land use categories to require dedication of 16% instead of 8% of total dwelling units as guaranteed affordable units for very low- or low- income categories.
- In increasing dwelling units per acre, to consider three site factors: [1] development status (developed or undeveloped), [2] parcel size, and [3] developability to provide required number of residential units
- Increase the maximum floor area, depending on site intensity (referring to proximity of paved road and sewer system)
- Reduce minimum off-street parking
- Increase maximum building height to up to 45 feet
- Reduce minimum setbacks for residential use
- Reduce minimum open area
During council and public comment on Sept. 30, it was decided that a minimum density was unnecessary and too limiting for developers, and agreed on a yearly review of the Element items. Supervisor Heather Moreno moved to approve the recommendations, in the form of two ordinances (3547 and 3548) and two resolutions (2025-208 and 2025-209) meant to encourage more multi-family housing projects.
The second part of the agenda item was the establishment of a Regional Housing Incentive Program.
Introduced by Supervising Planner Schani Siong, would establish the RHIP, a voluntary program that builds on the earlier approved recommendations. The RHIP provides builders simpler access and likely lower participation cost to development incentives offered similarly through the State Density Bonus Program. The State Density Bonus Program encourages market-rate builders to incorporate guaranteed affordable housing into their projects by allowing:
- Additional dwelling units per acre (“bonus units”);
- Concessions to development standards (such as increased maximum height, reduced minimum setback, and increased maximum floor area);
- Waivers of development standards that would physically prevent the construction of the affordable housing project; and/or
- Utilization of State Density Bonus Program minimum parking standards.
The implementation of the RHIP was generally supported by most of the supervisors, although some allowed that it wasn’t perfect. Supervisor Billy Paulding said it “needed work,” and Supervisor Dawn Ortiz-Lett admitted “we’ll be doing more community outreach, but we’re too far behind the process and need to be very bold.”
However, before the board could vote on the item, Gibson came out in opposition to the RHIP.
“Incentive program not a bad idea, but not an ambitious idea,” he said. “To me, I think we can be much bolder.”
Gibson claimed that the revenue expected from the program wouldn’t approach the amount of subsidies needed.
“The subsidy, the need to bridge the value and the cost of creating that value, needed would be $122 million in the next four years,” he said. “Let’s say that $30 million a year over the next four years; this incentive program is targeted to generate less than $350,000. It appears that what we’re proposing here, by itself, is not significant.”
The item however, passed by a 4-1 vote, with Gibson dissenting.
The Board of Supervisors will meet next on Tuesday, Oct. 7, at 9 a.m.