Title 17 — ZONING REGULATIONS CITY OF SAN LUIS OBISPO

Chapter 17.142 — DOWNTOWN HOUSING CONVERSION REGULATIONS

San Luis Obispo Zoning Code · 2026-06 edition · ingested 2026-07-06 · San Luis Obispo

17.142.010 – Purpose and Intent

It is the desire and intent of the City to preserve housing in the Downtown Planning Area shown in Figure 8-1. Figure 17.xx.xxx. I t is also the intent of the City to preserve housing that is affordable to very-low, low, and moderate income households and to encourage mixed residential and commercial uses, where appropriate, to implement General Plan goals. The provisions of this Chapter are intended to achieve these goals by regulating the conversion of downtown housing to nonresidential uses.

17.142.020 – Definitions

Where not defined below, terms shall be as defined in Article 9 (Definitions) of this Title 17.

  • A. “Downtown Core.” As shown in Figure 8- 1 17.xx.xxx : Downtown Planning Area and Downtown Core.

  • B. “Conversion.” A change in the primary use of at least 51 percent of the floor area of a legally permitted dwelling or building from residential to nonresidential use, or physical change in design of 51 percent of an individual dwelling’s or building’s floor area to accommodate nonresidential uses.

  • C. Net Housing Loss.” Where the number of residential units removed through demolition, remodeling, or conversion to nonresidential uses exceeds the number of dwellings added through new construction, additions, remodeling, or relocation within the downtown core, or in the area outside the downtown core but within the downtown planning area. The cumulative number of dwellings added and residential units removed based on City final building inspections, within each of the above areas, shall be determined separately, and shall be based on the number of dwellings existing on March 30, 2004, as determined by the Director.

  • D. “Replacement Unit.” A dwelling which is built, moved, or remodeled to replace a residential unit lost through demolition or remodeling or conversion to nonresidential use.

  • E. “Subarea.” The geographic are corresponding to either the Downtown Core, or the area outside the Downtown Core but within the Downtown Planning Area, as shown in Figure 17.xx.xxx. 8-1.

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Figure 8-1: Downtown Planning Area and Downtown Core

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17.142.030 – Land Uses Affected

Provisions of this Chapter shall apply to properties that contain one or more dwelling units and to all group housing, including “boarding house,” “residential care facilities,” “caretaker quarters,” “lodging - hotels and motels,” “bed and breakfast inn,” and “fraternities and sororities” which have one or more individual rooms for rent, as defined in Article 9 (Definitions) and listed in Table 6-1 9 (Uses Allowed by Zone) of Article 2 (Zones, Allowable Uses, and Development Standards)

17.142.040 – No Net Housing Loss

  • A. Development projects within the Downtown Planning Area shall not result in a net housing loss. If the Director determines that a development project would result in a net housing loss, the developer shall replace residential units to be removed, whether the units to be removed are occupied or not. Residential units shall be replaced on a one-for-one basis within the Downtown Planning Are a, and shall be built concurrently with the development project. Replacement units may be of any size, type, or tenure, consistent with this Title 17 and as approved consistent with the ministerial or discretionary requirements of this Title 17 for the units to be built. Replacement units shall be located within the same subarea as the units remove d , but need not be located on the same site as previously existed.

  • B. Development projects shall meet the following standards, subject to the approval of the Director:

    1. Vacation of Unit. Each tenant shall have the right to remain no fewer than 60 days from the date of City approval of a development project application. The Director or Council may grant an extension to this right to remain for a period of time not to exceed an additional 30 days.

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2. No Increase in Rent. A tenant’s rent shall not be increased during the period provided in subsection 1 of this Section.

3. Affordability of Units. The development project shall include dwelling units affordable to low and moderateincome persons, at rents or sales prices that meet the City’s affordable housing standards. The number of dwellings to be rented or sold at affordable levels shall equal the maximum number of affordable dwellings that existed within the 24-month period immediately prior to the application for the conversion permit, but in no case less than that required under the inclusionary housing affordable housing requirement in the General Plan Housing Element.

4. Tenant Relocation Assistance. For very low-, low-, or moderate-income residents displaced by the development project, the developer shall provide relocation assistance, subject to the approval of the Director. Such assistance may include, but is not limited to, giving tenants the first right of refusal to purchase or rent affordable replacement units, reimbursement of moving costs, and/or providing rental assistance.

17.142.050 – Exceptions

  • A. The Council may grant exceptions to the provisions of this Chapter, subject to the findings listed in paragraph B, below. Section 17xx.xxx. I n granting an exception, the Council may establish conditions to ensure the intent of General Plan policies is met, as described in Section 17.142.070 (Conditions of Approval). xxx.xx. The application requirements and procedures for an exception shall be as required for a Conditional Use Permit, as provided in Chapte r Section 17. xxx1 10 (Minor Use Permits and Conditional Use Permits). .xx.

  • A.

  • B. To grant an exception, the City Council must make each of the following findings:

    1. Approval of an exception is consistent with the General Plan and specifically, with Housing Element policies regarding no net housing loss, affordable housing, and mixed uses in the Downtown Planning Area.

    2. Granting the exception will not adversely affect affordable housing opportunities for very low-, low-, or moderate-income persons, either individually or cumulatively.

    3. The proposed project will not result in a significant loss of housing when compared with the total number of existing dwellings in the Downtown Core or Downtown Planning Area outside the core.

    4. Granting the exception will further the achievement of other community goals, such as removing substandard or dangerous housing, improving physical accessibility, rehabilitating a historic structure, or downtown beautification.

    5. It is physically infeasible to rehabilitate or relocate the housing to be removed or converted.

    6. No public purpose would be served by the strict enforcement of the no net loss policy due to mitigating factors (include specific mitigating factors).

17.142.060 – Public Hearing Required

Prior to acting on an Exception request, the City Council shall hold a public hearing. Notice of the time, date, place, and purpose of the hearing shall be given to the residents of the proposed conversion and to owners and residents within 300 feet of the affected property. The affected property shall be posted, and an advertisement shall be published in a newspaper of general circulation at least 10 days before the public hearing.

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17.142.070 – Conditions of Approval

The City Council may establish conditions of approval which provide for the general health, safety, and welfare of residents displaced by the proposed development, and to achieve the intent of General Plan housing conservation policies and mitigate the loss of housing.

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