Inclusionary Housing Ordinance

About the Program

Category: Planning (Best in Category)

Year: 2011

In the midst of the recent recession, San Luis Obispo County was among the ten least affordable housing markets in the nation. In an effort to combat this problem head-on, the County passed legislation that aims to facilitate the provision of affordable housing for County residents. Adopted in 2008, the ordinance addresses the critical shortage of affordable housing within a scenic, coastal county. Residential and commercial developments are both subject to the ordinance. For example, 20 percent of all new housing shall be “affordable,” which is a higher amount than the 10 to 12 percent affordability requirement used elsewhere in California. Yet this ordinance is also praised for its flexibility. The ordinance was adopted with a five year phase-in period that allows time for an economic recovery and also permits the housing market to adjust to the ordinance. The ordinance itself is particularly effective because it provides a mix of incentives and mandates for those who plan to build affordable housing. Further, it has fostered a positive working relationship between the County and the local homebuilders industry. This ordinance effectively has effectively served as a comprehensive, flexible, and extremely replicable method of addressing the low level of affordable housing within the County.