What's New in Housing

CITY OF SAN LUIS OBISPO - AFFORDABLE HOUSING UPDATE

Two Moderate Income Affordable units are now available for sale

There are two 1 Bedroom condominiums available at 3592/3594 #202 Broad Street. The City is still looking to get buyers into these 2 units - details here.   In order to purchase an affordable unit, please make note of the steps listed below:

1. Check the City's Affordable Housing Standards to determine if you meet the income limitations for the moderate level. The maximum income for a family of 2 is $64,300 (income from all household members is included in this maximum).

2.  Contact the representative of the available condominium in order to look at the unit and see if it meets your needs.  Contact information is listed under the link above labeled "details here". 

3. Email Kim Murry (kmurry@slocity.org) indicating your interest in the one bedroom unit, your household size, and your gross annual income. If you have viewed the unit and are interested in purchasing, see a mortgage lender to receive a prequalification letter for the loan amount needed - the sales price of these one bedroom condominiums is capped at $225,0500. We are eagerly seeking serious interested buyers.

4. Potential buyers who have obtained a prequalification letter from a lender then need to contact the Housing Authority of San Luis Obispo in order to have their household income and assets verified.  The verification from the Housing Authority is provided at a cost of $350 per application. If the buyers live or work in San Luis Obispo County, have not owned a home in the last 3 years, and meet the income/asset restrictions with the credit needed to secure a loan, they will be eligible to purchase.

The New Times Article on the City's Affordable Housing Programs - Upcoming Lottery for 2008

The August 28th 2007 article did a great job of describing the City's current program as well as some of the changes anticipated in the coming year. If you are looking for information about a pending lottery to be held, please be advised that this will not occur until the fall-winter of 2008 and there are no applications to be filled out at this time. The City will advertise on this website, and in the printed news, radio, and other media to inform interested residents of upcoming lotteries well in advance of application deadlines. Applications will be available at the City offices at 919 Palm Street and via this website. For more information on the likely project where those affordable units will be located, scroll down to the Laurel Creek Development below.

Affordable Housing Fund Status - September 2007

The City collects in lieu fees from developers who chose to pay 5% of building valuation costs instead of building affordable housing. There is currently over $2,300,000 available to support affordable housing projects in the City. Click here to download a PDF of the fund status.

City's Housing Programs Manager

The Housing Programs Manager position is a vital part of the City's effort to facilitate affordable housing in the community. The position is responsible for Community Development Block Grant and other housing grant administration as well as implementation of the City's housing programs identified in the Housing Element. The manager is tasked with seeking all types of grants and housing assistance, coordinating with public and private agencies, working with architects and developers to ensure they meet the City's requirements for residential production, analyzing and recommending changes to the City's Housing Policies, and finding innovative ways to get more affordable housing constructed in the City.

CDBG Program for 2008 Approved.

In January the City Council endorsed $620,000 in Community Development Block Grant funds for a variety of projects throughout the city. The projects include contributions to Homeless Services, barrier removal and ramp access for the disabled and planning activities for affordable housing services. The 2008 CDBG allocation can be reviewed here. The Urban County, through the Board of Supervisors, has scheduled a public hearing on February 22, 2008 for final approval of the countywide CDBG, HOME, ADDI, ESG funding package.

March, 2006 – March, 2007

Increasing housing opportunities in the City is among the highest priorities of the City Council and many community organizations. The City has stepped up its commitment to affordable housing programs over the last couple years:

Affordable Housing Projects:

• Laurel Creek (at Orcutt Road between RR tracks and Broad St.) - The developer hopes to complete the project by the end of 2009 and the City anticipates holding a lottery drawing in the summer of 2008 to establish a list of eligible buyers for the 12 affordable units included in this project (details will be posted in August of 2007). There are a total of 175 units, “affordable-by-design”, including 12 deed restricted "moderate" affordable units – approved by the Planning Commission (October 12, 2005) and the City Council (November 15, 2005). In a public-private partnership, the City was awarded Proposition 46 funds (BEGIN program for 10 of the 12 units) to provide $30,000 in down payment assistance to 10 home buyers, for a total grant of $300,000. The City Council agreed to match the $30,000 State grant for each of the 10 units from the City’s Affordable Housing Fund. The developer is also an integral part of the program by contributing one dollar for every three the City allocates ($100,000). By leveraging state, local, and private funds, 12 more affordable housing units will become part of the City’s program. The first few units should begin to see occupancy in late 2008 or early 2009.

• People’s Self-Help Housing (South Higuera Street.) - 27 apartments for low and very-low income households. The Villas at S. Higuera is nearly completing construction and should have tenants by early 2008. The Council used over $800,000 of the City’s Affordable Housing Fund to help fund the project.

• Broad St. Mixed Use – The Planning Commission and City Council approved an innovative mixed-use project at 3598 Broad Street, with 70 residential units and 30,000 square feet of commercial. At least 6 affordable dwellings, rentals and for-sale, will be provided on the site. The City, the Housing Authority, and Centex Homes held a lottery drawing in February of 2007 to select 3 buyers for the for-sale units. Centex Properties has been a key partner with the City in developing the site and being proactive in proving affordable housing.

• Margarita Area Specific Plan – The Specific Plan has been approved and the subdivisions are being processed for the western part of the area. Approximately 315 dwellings are planned for this portion of the Margarita Area; the Inclusionary Housing Requirement results in 49 affordable homes in two separate locations. The City, Housing Authority, and developer have come up with an affordable housing plan that could serve as a model for future annexation areas. The developers are dedicating land (2.75 acres) in two distinct locations, including completion of the associated public improvements, to the Housing Authority. Staff and the developer are exploring ways to go beyond that minimum number.

• Downtown: City staff is working with developers of several downtown mixed-use projects at the Garden Street Terraces, Chinatown Project and Bermant Homes on the corner of Marsh and Nipomo that include housing. In March 2007, City Council approved amendments to General Plan policies related to building heights in the downtown core. The zoning regulation changes to implement those policies, which support additional opportunities for downtown housing development, were approved September 18, 2007.

• Workforce and Affordable Housing – Moylan Terrace - Housing Authority: The City helped the Housing Authority acquire this site from the UP Railroad with a $600,000 loan from the Affordable Housing Fund. City staff also assisted in applying for Tax Credits and with the HELP application; a competitive affordable housing funding program from CalHFA. The proposed project is approximately 80 workforce and low income housing units that will be built in the honor and memory of the Housing Authority's long time Director, George Moylan.

• Parkwood Village – Approved conversion of a 168-unit apartment project, including the dedication of 34 units to the Housing Authority for very-low income households.
These projects (and other opportunities now being reviewed) will bring over 200 new affordable housing units to the City. To date, the City has approximately 800 affordable dwellings units about 100 of those as a result of the Inclusionary Housing Program.

• Housing Element: The City’s Housing Element was certified by the State of California in December, 2004. It was the first in the City’s history and we received one of four Local Government Leadership Awards from the State in the process. With a certified Housing Element the City immediately became eligible for competitive State grants. The City will begin the next Housing Element update process 2008 as HCD moves forward with the Regional Housing Needs Allocation for our region.

• State/Federal Grants: Due to the certified Housing Element, the State 2006 Workforce Housing Reward Grant will reward the City with approximately $71,000 for approving 27 very low and low-income housing units in 2006. The BEGIN Program ($300,000 for down payment assistance) is a public-private partnership and will leverage 10 additional affordable dwellings in the Laurel Creeks project. The City has been awarded $231,000 for a First-Time Homebuyer Program using federal HOME program funds. The City continues to receive federal CDBG funds to benefit the low- and moderate persons of the community. CDBG funds help to operate the City’s Homeless Shelter and assist in the development of affordable housing for lower income households.

• San Luis Obispo County Housing Trust Fund: The City contributed and additional $30,000 in 2006 (totaling $60,000) from its Affordable Housing Fund to assist in the operations of the Housing Trust Fund; a county-wide non-profit organization dedicated to increasing affordable housing. The Housing Programs Manager sits as the City’s representative on the Housing Trust Fund Commission.

• Public Outreach: The City is conducting an increased and ongoing public outreach campaign, seeking more funding, and spreading the word about opportunities. The Housing Programs Manager has spoken before many community groups, including the Chamber of Commerce, Lions Club, SLO Property Owner’s Association, and KKAL radio. Two brochures have been completed to encourage affordable housing efforts.

Addressing the shortage of affordable housing in San Luis Obispo is not a quick fix. Apartments, cooperatives, condominiums, single-family homes, and mixed-use are all part of the mix. Stay tuned for more affordable housing action as the City moves forward in 2007.