City of San Luis Obispo Named 'Prohousing City'

City of San Luis Obispo Named 'Prohousing City'

  • Brittany Hensley
  • 02/8/24

The City of San Luis Obispo was recently recognized by the State of California as a prohousing community, which means San Luis Obispo now has a competitive advantage for more funding incentives and additional resources to speed up the development of housing for people with all income levels.

The State of California recently announced that the City of San Luis Obispo is one of seven new California communities to earn the Prohousing Designation. There are 37 cities with this designation in California.

According to the Statewide Housing Plan, the state needs to plan for 2.5 million new homes over the next eight years, with 1 million of those serving the needs of lower-income Californians.

San Luis Obispo needs to accommodate up to 3,354 new homes between 2020 and 2028 and has already adopted new housing programs and policies to create new housing in SLO:

  • The City updated subdivision regulations to increase flexibility for small lot developments.
  • The City instituted a Downtown Flexible Density pilot program to convert unused commercial spaces into small residential units with fewer requirements and restrictions.
  • The City streamlined permit processing for housing projects.
  • The City removed subjective design standards.
  • The City also waives or defers permit fees on affordable housing that exceeds inclusionary requirements, voluntarily provides affordable housing, or is built and operated by the local housing authority, a nonprofit agency, or a government agency.

Progress is already being made by shoring up water supply and expanding infrastructure in SLO to meet current and future needs according to City Manager Derek Johnson, who also said, "By earning the Prohousing Designation, the City of SLO has been rewarded a competitive edge because of efforts to cut through red tape, reduce construction and development costs, and create housing policies with a smart-growth mindset." 

The State’s Prohousing Designation Program was established by the 2019-20 Budget Act. Prohousing cities move to the front of the line when it comes to incentives, funding and other state resources. 

For more information on the City’s housing goals, visit and for details on the City’s housing programs, visit

Thank you to the City of SLO for this very informative information on the Prohousing Desgination. 

Work With The Brittany Hensley Group

The Brittany Hensley Group has a client-centric mindset and strives to achieve the best outcome for each transaction they represent.