San Luis Obispo Municipal Code Ch. 16.17 Airspace and Common Interest Subdivisions, Flexible Lot Design…

The purpose of this chapter is to prescribe subdivision regulations that apply to the following development types:

Airspace subdivisions (Section 16.26.035).

Common interest subdivisions (Section 16.26.070).

Flexible lot design subdivisions (Section 16.26.135).

Condominium conversions (Section 16.26.080). (Ord. 1729 § 4 (Exh. A), 2023)

A. Applicability and Intent. This section explains the review process and standards that apply to subdivision types that differ from the lot area minimums and dimensions in Section 16.18.030 (Table 2). This section covers projects (where allowed in subsection B of this section) that propose ownership boundaries or separate unit ownership within buildings or on parcels where property development standards such as lot coverage and density are determined by using the exterior boundaries of the property and where standards apply to the project as a whole instead of requiring conformance with all property development standards on each of the proposed parcels/units in the subdivision. These types of subdivisions can rely on shared ownerships as is the case with subdivisions with common interests (i.e., condominiums) or may also rely solely or in part with easements for common areas such as recreation facilities, open space, parking, driveways, etc. (i.e., flexible lot subdivisions, and airspace subdivisions).

B. Zones Allowed. This chapter applies to the subdivision types listed in Section 16.17.010 (defined in Chapter 16.26) and can be allowed in multifamily and nonresidential zones with the exception of the AG and OS zones. In the R-1 zone, only flexible lot subdivisions are allowed consistent with Section 16.17.030.

C. Application and Review Requirements. Subdivisions subject to this chapter shall be consistent with development projects which have already received development review approval or shall be processed concurrently with a separate development review application. Subdivisions subject to this chapter shall not be approved without development review approval pursuant to Section 17.106.030. Tentative parcel map or tentative tract map application requirements are determined based on the number of lots or units and criteria of Sections 16.08.040 and 16.08.050.

D. Property Development Standards. Property development standards (Chapter 17.70), including (but not limited to) density, setbacks, floor area ratios, and lot coverage limitations, shall apply with respect to the exterior boundary lines (property lines) of the proposed subdivision and not to individual units or lots within the project. Interior setback standards for each newly created lot within the subdivision are dictated by minimum separation requirements of the building and fire codes and standard minimum setbacks of the zoning code are required at the exterior boundaries of the project.

1. Lot Dimensions. Subdivisions subject to this section may be any size or shape and shall not be subject to the minimum lot sizes, lot dimensions, and lot area requirements as described in Section 16.18.030, Table 2 (Minimum Lot Area and Dimensions).

2. Access and Driveways. Driveway and pedestrian access shall be provided by direct access to the public right-of-way or may be served by an easement or be within a separate lot that is commonly owned and managed by an association or agreement, subject to the approval of the public works director.

3. Easements. Subdivisions subject to this section shall provide for use easements or a commonly owned separate lot for any facilities such as driveways or open space and must provide for a method of common area maintenance by means of association or agreement.

E. Separate Conveyance. Separate conveyance of the lots resulting from an airspace or common interest subdivision is permitted. If dwellings or other structures (such as garages) on different lots are adjacent or attached to each other, the subdivision boundary may separate them for conveyance purposes if the structures meet building code safety standards and are sufficient to allow separate conveyance. If any attached structures span or will span the new lot line, or if the lots share a driveway, appropriate covenants, easements or similar documentation allocating legal and financial rights and responsibilities between the owners of the lots (“CC&Rs”) for construction, reconstruction, use, maintenance, and improvement of the attached structures and any related shared drive aisles, parking areas, or other portions of the lot must be recorded before the city will approve a final map for the common interest subdivision. Notwithstanding the provision of such CC&Rs, however, where attached structures and/or related shared facilities span a lot line resulting from a common interest subdivision, all owners of the lots shall be jointly and severally responsible for the use and maintenance of such structures and/or shared facilities in compliance with all provisions of this code.

1. Except as provided in state law, accessory dwelling units may not be sold or otherwise conveyed separate from the primary residence. (Ord. 1743 § 9, 2025; Ord. 1729 § 4 (Exh. A), 2023)

A. Purpose. Flexible lot projects in the R-1 zone may be any size or shape and may provide shared access via easement or via a commonly owned lot subject to the below requirements.

1. Minimum Area and Maximum Project Size. Flexible lot projects in the R-1 zone shall consist of the minimum size area to create a parcel division as identified in Section 16.18.030, Table 2 of these regulations. The maximum number of lots allowed for R-1 zone flexible lot projects is four (parcel map).

2. Development Standards. R-1 zoned flexible lot projects shall provide the minimum area in each lot required in Section 16.18.030, Table 2 (Minimum Lot Area and Dimensions) and zoning regulations Section 17.70.040, Table 3-1 (Maximum Density by Cross Slope) in order to support a residential dwelling unit. Each lot shall support required development standards of Section 17.16.020 (low-density residential zone) for each lot including but not limited to: setbacks, parking, lot coverage, and floor area ratio.

3. Access and Driveways. Driveway and pedestrian access may be served by an easement or be within a separate lot that is commonly owned and managed by a homeowner’s association.

4. Neighborhood Compatibility. R-1 zoned flexible lot projects shall be found consistent with community design guidelines for infill development and single-family housing design.

5. Review Authority. Flexible lot projects in the R-1 zone require review at the moderate review level described in zoning regulations Section 17.106.030(C) with a recommendation from the architectural review commission to the community development director for approval or denial. (Ord. 1729 § 4 (Exh. A), 2023)

Condominium conversions include converting existing residential rental units, which are leased by the occupants, into condominium units, which may be owned by the occupants, through the application of a tentative map. Condominium conversions are not required to comply with existing setback and density standards if the development met all zoning and building standards in effect at the time of its construction. Nothing in this section shall be construed to prohibit the imposition of more restrictive requirements as a condition of approval by the planning commission or city council when necessary to protect the public health, safety, or general welfare, based upon appropriate findings.

A. Purpose and Intent. The purpose of this section is to establish standards and special conditions for the protection of renters of converted residential apartment structures into condominiums. All residential condominium conversions shall conform to the provisions of this section in addition to any and all requirements for preparation, review and approval of a tentative map application (Chapter 16.10).

B. Review Process. The planning commission’s evaluation shall be provided as a recommendation to the city council, which may act on conversion projects based on its own findings, within the numerical limits established under subsection D of this section.

1. The results of the planning commission’s evaluation should be transmitted to the city council for consideration. The city council shall approve, approve subject to conditions, or deny each conversion application within the calendar year which the application was filed.

C. Qualifying Requirements. The tentative map application for a condominium conversion shall be accompanied by the declaration of covenants, conditions and restrictions, articles of incorporation, bylaws and contracts for the maintenance, management or operation of any part of the condominium conversion project, which would be applied on behalf of any and all owners of the condominium units within the project. In addition to the requirements of Civil Code Section 1355 and any requirements which might be imposed by the city consistent with these regulations, the organizational documents shall include provisions concerning the conveyance of units; the assignment of parking; an agreement for common area maintenance, including facilities and landscaping; an estimate of initial fees anticipated for such maintenance; and an indication of responsibilities for maintenance of all utility lines and services for each unit. The covenants, conditions and restrictions document shall include a reference to an attached, updated property condition report.

1. Minimum Project Size. Condominium conversion shall not be allowed for projects consisting of less than five residential units.

2. Building Conditions. The structural, electrical, fire and life safety systems of the applicable structures either are or are proposed to be prior to the sale of the units, in a condition of good repair and maintenance, including such alterations or repairs as are required by the chief building official and fire chief.

3. Utilities and Devices. The applicable residential and/or common structures presently have, or are intended to have, plumbing in sound condition, insulation of all water heaters, and, where feasible, pipes for circulated hot water, individual gas and electrical meters, except in such cases where individual metering is clearly inadvisable or impractical, adequate and protected trash areas, smoke and fire detectors, and such other requirements as may be imposed as a condition of approval.

4. Access and Driveways. Driveway and pedestrian access shall be provided by direct access to the public right-of-way or may be served by an easement or be within a separate lot that is commonly owned and managed by an association or agreement, subject to the approval of the public works director.

5. Refurbishing and Restoration. All structures, common areas, sidewalks, driveways, landscaped areas and facilities, if defective, shall be refurbished and restored to a safe and usable condition. All deficiencies shall be corrected prior to recordation of a final map.

6. Tenant Protections. A person renting a unit within a property that includes a proposed condominium conversion shall be entitled at the time of conversion to all tenant rights in state or local law, including, but not limited to, rights respecting first refusal, notice, and displacement and relocation benefits.

7. Noticing. Tenants and prospective tenants have been given a tenant’s notice of intent to convert pursuant to the provisions of California Government Code Section 66427.1 (Subdivision Map Act) sixty days prior to filing applications for tentative map or any associated development review application with the community development department. Such notice shall be given by the applicant and shall contain information as to tenant’s rights under state and local regulations.

8. Subdivision Map Act. The applicant has complied with all applicable provisions of the Subdivision Map Act, including but not limited to Government Code Sections 66427.1 and 66452.18.

D. Process and Procedure.

1. Annual Limit. The city shall not approve conversion projects in any one calendar year resulting in more units being converted than one-half the number of multifamily rental dwellings added to the city’s housing stock during the preceding year. The number of multifamily rental units added in one year shall be determined as follows: From January 1st through December 31st, the total number of multifamily rental units given a final building inspection and occupancy permit minus the number of such units demolished, removed from the city, or converted to nonresidential use.

2. Filing Period. Applications for conversion may be filed during the months of January and February only. No action shall be taken on applications during this period. In order to be accepted by the city for processing, the application must be deemed complete by May 31st. Applications not deemed complete by May 31st shall be rejected and are not eligible for consideration until the following year if allocations for conversion are available.

3. Project Ranking. If applications on file at the end of the filing period would, when approved, convert more dwelling units than allowed under subsection (D)(1) of this section, the planning commission shall rank the applications according to the following point criteria:

a. The fractions of tenants not objecting to conversion: deduct one point for each percentage point of objecting tenants. Applicants shall survey tenants and provide tenants an opportunity to respond with a postage-paid envelope addressed to the applicable project planner at the city.

b. Provision of private open space with each dwelling: ten points for every unit that exceeds minimum square feet of qualifying private open space (by at least twenty-five square feet) for a maximum of fifty points: deduct ten points for every unit that falls below (by at least twenty-five square feet) the minimum private open space standards. No points for projects that meet standards. Minimum private open space: R-2 zone—two hundred fifty square feet, R-3 and R-4 zones—one hundred square feet with minimum dimension in every direction of ten feet for open space provided at ground level or six feet for open space provided on a balcony or elevated deck, and must be located outside the street yard required by zoning regulations.

c. Project meets or exceeds current parking standards: five points deducted for every parking space below minimum standards, five points added for every parking space above minimum requirements up to twenty-five points.

d. Provision of common open space that meets or exceeds criteria: ten points for every additional one hundred square feet of qualifying and usable common open space above minimum requirements, for a maximum of fifty points. Minimum common open space: one hundred square feet for each unit in the R-3 and R-4 zones, and one hundred fifty square feet for each unit in the R-2 zone, and shall have a minimum dimension in every direction of ten feet for open space provided at the ground level or six feet for open space provided on a balcony or elevated deck, and must be located outside the street yard required by zoning regulations.

e. Provision of common recreation amenities that meet or exceed criteria: ten points for high-quality recreation amenities that exceed minimum size requirements by at least two hundred square feet per project. Recreation amenities criteria: there shall be provided in each project of five or more units in the R-3 or R-4 zone a minimum of twenty square feet per unit of common indoor recreation facilities, or forty square feet per unit of improved outdoor recreation facilities. Area of common recreation facilities may be within required common open space and may be counted towards minimum common open space requirements. Common recreation facilities shall be available for, and limited to, the use of the project’s tenants and their guests. Common recreation facilities must be located outside the street yard required by zoning regulations. Examples of acceptable recreation facilities for smaller projects may consist of permanent, high quality fixed seating and tables, fire or barbeque facilities, and other passive use facilities. For larger projects of more than ten units, more substantial improvements may be required and may include ball courts, children’s play equipment, community gardens or other features that can be appropriately incorporated into the project design.

f. Provision of units which low-income and moderate-income families can afford: twenty points given for each moderate deed-restricted affordable unit proposed in the project; twenty-five points for each low-income unit for a maximum of one hundred points.

g. Provision for energy savings: projects that contain significant solar energy installations capable of supplying at least fifty percent of the project’s energy demand shall receive twenty points.

h. Age of existing apartments: one point for each year an apartment project has been occupied as rental apartments.

i. Discretionary ranking: project quality, design features or overall neighborhood character and compatibility may allow the planning commission to add or deduct up to fifty points.

j. The planning commission’s evaluation shall be a recommendation to the city council, which may act on conversion projects based on its own findings, within the numerical limits established under subsection (D)(1) of this section. (Ord. 1729 § 4 (Exh. A), 2023)

Exceptions to the condominium conversion regulations may only be approved by the city council under request by the subdivider when in accordance with the findings noted in subsection A of this section. Exceptions may only be granted to the property improvement standards and not the affordable housing requirements or tenant notification provisions.

A. City Council Findings for Exceptions.

1. There are circumstances of the site, such as size, shape or topography, distinct from land in the same zoning, or compliance would be completely infeasible because of the location or site design.

2. The required property improvement standards would decrease the size or number of units within the project resulting in a significant loss of entitlement. (Note: a loss of one or more density units allowed by density standards or reductions in the floor area of units that still allow for a reasonable floor space may not be considered a significant loss of entitlement. For the purpose of these regulations, a reasonable floor area for a one-bedroom unit is considered to be approximately nine hundred square feet while a reasonable floor area for a two-bedroom unit is considered to be one thousand two hundred square feet.)

3. The exception will not constitute a grant of special privilege; an entitlement inconsistent with the limitations upon other properties in the vicinity with the same zoning.

4. No feasible alternative to authorizing the exception would satisfy the intent of the city policies and regulations. (Ord. 1729 § 4 (Exh. A), 2023)