Background

On November 17, 2020, the City Council adopted the 6th Cycle Housing Element that covers housing policies and programs from 2020-2028 and identifies the City's Regional Housing Needs Allocation (RHNA).

Updating San Luis Obispo's Zoning Regulations to accommodate Flexible Density is a significant effort tied directly to the City's Housing Element and the Major City Goal for Housing and Homelessness. The Flexible Density Program is intended to encourage the development of smaller residential units in the City's Downtown Core by offering housing developers more "flexibility" from standard density limitations, without imposing any increase to the scale or height of structures within the Downtown.

The Flexible Density Program is intended to encourage the development of smaller residential units in the Downtown Core by offering housing developers more "flexibility" from standard density limitations, without imposing any increase to the scale or height of structures within the Downtown.  To further promote the program, housing units constructed via the Flexible Density Program would be exempt from the City's Inclusionary housing Requirements.  

Housing is an essential element to a healthy downtown district. Providing for housing in the commercial core of a community generates a constant flow of foot traffic to support nearby retailers, services, restaurants, and other businesses. The concentrated mix of retail, office, and entertainment typical of a downtown locates residents within walking distance of most daily activities. The Downtown Flexible Density Program Incorporates a higher density of residential uses that creates a more vibrant, desirable downtown economy.

Draft Program Summary

The Program is intended to incentivize the construction of smaller housing units within the City's Downtown Core by relaxing residential density standards for qualifying units and provide development incentives for housing development. The Draft Flexible Density Program Ordinance is available for review.

Key Features:

  • Eliminate residential density standards for new housing units less than 600 square feet in size (limited to studio or one-bedroom configurations).
  • Housing units larger than 600 square feet in size shall be subject to standard density practices.
  • Applies to properties within the City's Downtown Core.
  • Reduced parking requirements (1 space for every two units, plus 1 guest space for every 10 units).
  • Exemptions from Inclusionary Housing Requirements
  • Program expires on January 1, 2029, or unit 500 new residential units are entitled or permitted under this program, whichever occurs first.

Open City Hall Community Forum

Please provide your feedback on the key features of the Flexible Density Program through the City's Open City Hall Community Forum: https://www.opentownhall.com/portals/189/Issue_12545

Public Input and Review Process

  • January 19, 2023 - Open City Hall Community Forum
  • February 22, 2023 - Planning Commission Hearing
  • March 21, 2023 - City Council Hearing Introducing Ordinance

Stay Informed

If you would like to receive continued updates on City initiatives associated with Housing Programs, please sign up for the City's e-notification list and sign up for the groups such as "Housing and Homelessness" or "Planning and Building" or contact the City's Housing Team by e-mail: housing@slocity.org