CC 2020-03-10_11a Regional Housing Compact
MEMORANDUM
TO: CITY COUNCIL
FROM: JAMES A. BERGMAN, CITY MANAGER
BY: WHITNEY McDONALD, COMMUNITY DEVELOPMENT DIRECTOR
SUBJECT: CONSIDERATION OF ADOPTION OF RESOLUTION APPROVING THE
SAN LUIS OBISPO COUNTYWIDE REGIONAL COMPACT TO
ADDRESS HOUSING AND INFRASTRUCTURE NEEDS AND
AUTHORIZING THE MAYOR TO SIGN THE COMPACT
DATE: MARCH 10, 2020
SUMMARY OF ACTION:
Adopt a Resolution approving the San Luis Obispo Countywide Regional Compact to
address housing and infrastructure needs and authorizing the Mayor to sign the Compact.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
Staff time to review and implement the Compact will continue to be provided alongside
efforts to update the City’s Housing Element.
RECOMMENDATION:
It is recommended the City Council adopt the Resolution approving the San Luis Obispo
Countywide Regional Compact to address housing and infrastructure needs and
authorizing the Mayor to sign the Compact.
BACKGROUND:
The San Luis Obispo County region is currently one of the least affordable places to buy
a home in the United States, recently reported as the 8th least affordable region in the
nation. According to the National Association of Home Builders, only 20.9 percent of the
area’s share of homes are affordable to a family earning the area’s median income. The
County’s Housing Element of the General Plan (2014-2019) states that the chronic
undersupply of housing affordable and suitable for locally employed people has
economic, social, and environmental impacts. Providing an adequate supply and range
of housing choices affordable to residents and working families/individuals is a significant
challenge in San Luis Obispo County and requires the efforts of public agencies, private
industries, residents, and working individuals to overcome it.
Pursuant to State law, the California Housing and Community Development Department
(HCD) determines the region’s future housing needs by affordability level and directs the
San Luis Obispo Council of Governments (SLOCOG) to assign the required housing units
Item 11.a. - Page 1
CITY COUNCIL
ADOPTION OF RESOLUTION APPROVING THE SAN LUIS OBISPO COUNTYWIDE
REGIONAL COMPACT TO ADDRESS HOUSING AND INFRASTRUCTURE NEEDS
AND AUTHORIZING THE MAYOR TO SIGN THE COMPACT
MARCH 10, 2020
PAGE 2
to each of the seven cities and the County’s unincorporated areas. This is known as the
Regional Housing Needs Allocation (RHNA) process. In December 2018, the SLOCOG
Board accepted HCD’s final determination that San Luis Obispo County must plan for
10,810 new housing units by 2028. Subsequently, in October 2019, the SLOCOG Board
adopted the 2019 RHNA Plan, allocating the 10,810 new housing units across the eight
local land use planning agencies, generally based on each jurisdiction’s proportional
share of the region’s population and jobs. The table below shows each agency’s
allocation and allocation within each State-defined income category.
Jurisdiction Total
Allocation
Very Low
24.60%
Low
15.50%
Moderate
18.00%
Above
Moderate
41.90%
Arroyo Grande 692 170 107 124 291
Atascadero 843 207 131 151 354
Grover Beach 369 91 57 66 155
Morro Bay 391 97 60 70 164
Paso Robles 1,446 356 224 259 607
Pismo Beach 459 113 71 82 193
San Luis Obispo 3,354 825 520 603 1,406
Unincorporated 3,256 801 505 585 1,365
Regional Total 10,810 2,660 1,675 1,940 4,535
This information about the RHNA process was shared with the Council on September 3,
2019 during an update on housing policy issues. Each of the seven cities and the County
is now required to identify adequate sites and plan for each agency’s future housing needs
as it updates its respective Housing Element by December 31, 2020. The City has initiated
this process with consultant assistance from PlaceWorks and will be hosting a public
workshop on updating the Housing Element in April or May. Meeting the current and future
RHNA cycles will require communities to plan for additional growth and prioritize
investment in housing and infrastructure. The Governor and State Legislature have
enacted numerous bills that encourage local agencies to take actions to streamline
housing approvals and accelerate housing production. The Governor and numerous
legislators have expressed a need for urgent focus on California’s housing affordability
crisis. Their decisions continue to prioritize the need for actions to address this complex
challenge and the FY 2019-20 State Budget included $1.75 billion investment to increase
housing supply and hold local agencies accountable for meeting regional housing goals.
Meeting the housing needs of the San Luis Obispo County region is a challenge shared
by all eight local land use jurisdictions and SLOCOG, and it will take collective actions to
overcome this challenge. This also brings an opportunity for regional collaboration. The
proposed San Luis Obispo Countywide Regional Compact (the “Regional Compact”
Attachment 2) is an aspirational document to set the tone and goals for future
Item 11.a. - Page 2
CITY COUNCIL
ADOPTION OF RESOLUTION APPROVING THE SAN LUIS OBISPO COUNTYWIDE
REGIONAL COMPACT TO ADDRESS HOUSING AND INFRASTRUCTURE NEEDS
AND AUTHORIZING THE MAYOR TO SIGN THE COMPACT
MARCH 10, 2020
PAGE 3
recommended plans and actions among the local agencies. The Regional Compact
establishes a united regional framework to unlock the potential to develop an adequate
supply of housing and resilient infrastructure that support our economic prosperity. It also
recognizes that people, water, transportation, connectivity, and housing form the
foundation of the San Luis Obispo County region’s healthy, livable communities and
thriving economic opportunity.
The region’s local agencies, building and development community, residents and
workforce have an opportunity to unite around six shared regional goals that provide a
vision to guide collaborative resolution of the underlying issues.
These six regional goals are as follows:
Goal 1. Strengthen Community Quality of Life – We believe that our Region’s
quality of life depends on four cornerstones to foster a stable and healthy
economy for all: resilient infrastructure and resources, adequate housing supply,
business opportunities, and educational pathways.
Goal 2. Share Regional Prosperity – We believe that our Region should share
the impacts and benefits of achieving enduring quality of life among all people,
sectors and interests.
Goal 3. Create Balanced Communities – We believe that our Region should
encourage new development that helps to improve the balance of jobs and
housing throughout the Region, providing more opportunities to residents to live
and work in the same community.
Goal 4. Value Agriculture & Natural Resources – We believe that our Region’s
unique agricultural resources, open space, and natural environments play a vital
role in sustaining healthy local communities and a healthy economy, and
therefore should be purposefully protected.
Goal 5. Support Equitable Opportunities – We believe that our Region should
support policies, actions, and incentives that increase housing development of all
types, available to people at all income levels.
Goal 6. Foster Accelerated Housing Production – We believe that our Region
must achieve efficient planning and production of housing and focus on
strategies that produce the greatest impact.
The Regional Compact is being recommended for approval by the governing boards of
all eight local land use agencies and SLOCOG. Signatories to the Regional Compact
commit to acting as partners in aligning actions with these regional goals. The Regional
Compact is an important first step that will help to protect and enhance the region’s
Item 11.a. - Page 3
CITY COUNCIL
ADOPTION OF RESOLUTION APPROVING THE SAN LUIS OBISPO COUNTYWIDE
REGIONAL COMPACT TO ADDRESS HOUSING AND INFRASTRUCTURE NEEDS
AND AUTHORIZING THE MAYOR TO SIGN THE COMPACT
MARCH 10, 2020
PAGE 4
communities, build critical infrastructure, protect natural resources and create a forward-
thinking future for the region. By taking collaborative actions to further these goals, our
region can solve critical issues and become a statewide leader in sustaining vibrant
communities. Additionally, given the State’s pro-housing focus, the Regional Compact
shows the San Luis Obispo County region’s intent to work collaboratively to plan for our
region’s future and its growth which may make the region more competitive for housing
and infrastructure funding opportunities.
Lastly, it is important to acknowledge the degree of regional collaboration in developing
this Regional Compact. Overcoming the challenges to meeting housing needs will require
a significant focus on increasing regional collaboration particularly related to affordable
housing and the critical infrastructure to support it. The seven cities, the County, and
SLOCOG have worked over the past year toward developing the region’s first Regional
Infrastructure and Housing Plan from which the concept of a Regional Compact was
developed. City staff would particularly like to acknowledge the extensive work of the
County in providing policy and staff leadership in advancing this regional effort. The
following are anticipated dates for all nine local and regional agencies to approve the
Regional Compact and pending approval by all agencies will culminate in a public signing
event (tentatively set for the SLO Housing Summit on April 3, 2020). As shown below,
Arroyo Grande will be the fourth city in the county to consider approval of the Regional
Compact.
Regional Compact Signatories Anticipated Date of Approval
County of San Luis Obispo February 25, 2020
City of Grover Beach March 2, 2020
City of Paso Robles March 3, 2020
City of Pismo Beach March 3, 2020
City of Arroyo Grande March 10, 2020
City of Atascadero March 10, 2020
City of San Luis Obispo March 17, 2020
City of Morro Bay March 24, 2020
San Luis Obispo Council of
Governments
April 1, 2020
City staff is committed to engaging with regional partners including the County, the six
other cities, SLOCOG, and key public and private sector stakeholders to develop the
Regional Infrastructure and Housing Plan and formulate recommendations for how to
collaboratively carry out the goals set forth in the Regional Compact. These goals are
consistent with the emerging priority issue of addressing housing needs in the City. Given
this consistency, staff recommends that the Council adopt a Resolution (Attachment 1)
approving the San Luis Obispo Countywide Regional Compact to address housing and
infrastructure needs and authorize the Mayor to sign the Regional Compact on behalf of
the City of Arroyo Grande.
Item 11.a. - Page 4
CITY COUNCIL
ADOPTION OF RESOLUTION APPROVING THE SAN LUIS OBISPO COUNTYWIDE
REGIONAL COMPACT TO ADDRESS HOUSING AND INFRASTRUCTURE NEEDS
AND AUTHORIZING THE MAYOR TO SIGN THE COMPACT
MARCH 10, 2020
PAGE 5
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Approve staff’s recommendation;
2. Do not approve staff’s recommendation;
3. Modify as appropriate and approve staff’s recommendation; or
4. Provide direction to staff.
ADVANTAGES:
Approval of the Regional Compact will advance the City’s goals of cooperating with other
local governments to address the region’s housing needs, as stated in the City’s Housing
Element.
DISADVANTAGES:
No disadvantages have been identified.
ENVIRONMENTAL REVIEW:
Adoption of the Resolution approving the San Luis Obispo Countywide Regional Compact
to Address Housing and Infrastructure Needs is not a project that is likely to cause a
potentially significant impact on the environment, and, therefore, it is not subject to the
California Environmental Quality Act, per CEQA Guideline section 15061(b)(3).
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2. At the time of report publication, no comments have
been received.
ATTACHMENT:
1. San Luis Obispo Countywide Regional Compact
Item 11.a. - Page 5
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE APPROVING THE SAN LUIS OBISPO
COUNTYWIDE REGIONAL COMPACT TO ADDRESS
HOUSING AND INFRASTRUCTURE NEEDS AND
AUTHORIZING THE MAYOR TO SIGN THE COMPACT
WHEREAS, the San Luis Obispo County region is a rural coastal county with seven
vibrant cities and numerous unincorporated communities that depend on collaborative
relationships between and among government agencies, community organizations, and
residents to solve significant regional issues; and
WHEREAS, California Government Code Section 65584 requires the San Luis Obispo
County region’s local land use agencies to plan for their Regional Housing Needs
Allocation of 10,820 new housing units by the year 2028 and future allocations as
determined by the California Department of Housing and Community Development; and
WHEREAS, the San Luis Obispo Countywide Regional Compact, prepared by leaders
from each of the region’s local agencies, creates a united regional framework to unlock
the potential to develop an adequate supply of housing and resilient infrastructure that
support economic prosperity; and
WHEREAS, the regional goals set forth therein will help to protect and enhance our
communities, build critical infrastructure, protect natural resources, and create a forward-
thinking future for local communities in addition to underpinning the future Regional
Infrastructure and Housing Plan, creating compatibility among the eight local land use
agencies’ Housing Elements, and driving future recommendations for collaborative
actions.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo
Grande hereby approves the San Luis Obispo Countywide Regional Compact to address
housing and infrastructure needs and authorizes the Mayor to sign said Compact,
following approval of said Compact by the governing boards of the other agencies
identified therein.
On motion of Council Member , seconded by Council Member , and
on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this 10th day of March, 2020.
Item 11.a. - Page 6
RESOLUTION NO.
PAGE 2
CAREN RAY RUSSOM, MAYOR
ATTEST:
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
JAMES A. BERGMAN, CITY MANAGER
APPROVED AS TO FORM:
TIMOTHY J. CARMEL, CITY ATTORNEY
Item 11.a. - Page 7
ATTACHMENT 1
Item 11.a. - Page 8
SAN LUIS OBISPO COUNTYWIDE REGIONAL COMPACT
A united regional framework to unlock our potential to develop an adequate supply
of housing and resilient infrastructure that support our economic prosperity.
People, water, transportation, co nnectivity, and ho using form the fo undation of San Luis Obispo County Region 's healthy, livable
communities and thriving economic opportunity.
We are a rural coastal county with seven vibrant cities and numerous unincorpo rated communities that depend on
collaborative relationships between and among government agencies, community organizations, and residents to solve our
Region's signi f icant issues, such as limited water supply, disconnects between communities, climate impacts, pressure o n
agriculture and open space resources , and inadequate access to affordable housing .
To identify actions our agencies can take to solve these issues, we agree to develop o ur f irst Regional Infrastructure and Ho using
Strategic Action Plan. This regional effort examines infrastructure and housing needs countywide and integrates efforts to
address critical shortages. Our organizations are signing this compact as a f irst, necessary step toward creating opportunities
fo r our local workforce and families, while preserving the appeal and vitality of our Region.
Our agencies collectively embrace the following si x shared regional goals and support aligning resources and policies to make
progress towards acting on them. These regional goals w ill underpin the f uture Region al Infrastru cture and Housing Strategic
Action Plan , create compatibility among the eight local agencies' Housing Elements, and drive f uture recommendations fo r
collaborative actions.
Strengthen community
quality of life
Share regional
prosperity
Create balanced
communities
Value agricultural
&natural resources
Support equitable &
diverse opportunities
Foster accelerated
housing production
i We believe that our Region 's quality of li f e depends on four cornerstones to foster a stable and healthy i
: economy for all: resilient inf rastru cture, servi ces, and res o urces, adequate housing supply , business ! i opportunities, and educational pathway s. i
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We believe that our Region should encourage new devel o pment that helps to improve the balance of i
jobs and housing through o ut the Reg io n, providing mo re opportunities for re sidents t o live and w o rk i
in the same community. i
-··········-----··········----········----·--·-······-·----··········-----------·--·--·--·-······----·--··········································-······-·······-··J .....................................................................................................................................................................
We believe that our Region's unique agricultural resources, open space, and natural environments play i
a vital role in sustaining healthy local co mmunities and a he alt hy eco no my, and therefo re sho uld be i
purposef ully protected. i
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We believe that our Re g ion should support po licies, actions and incent ives that increa se t he diversity
of housing available to people at all income levels.
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i we believe that our Region must achieve efficient planning and production of housing and focus on i
i strategies that produce the greatest impact. i
! --------------------------------------------------------------------------------------------------------------------------------------------------------------------i
We believe that these regional goals will help to protect and enhance our communities, build critical in f ra structure, protect
natural re sources and create a forward-thinking f uture for all of our co mmunities. We believe in the importance of taking
respon sibility for leading our Region towards a brighter f uture. By signing th is compact on this __ day o f _____ 2020,
we co mmit t o act as pa rtners by aligning acti o ns with these regio na l goa ls. By t aking co ll aborative actio ns t o f urther these
goals, we believe that our Re g ion will sol ve criti cal issues a nd become a statewide leader in sustaining vibrant communities.
a '~· ~t.!:.!:i;,:;tg,l -C-ity-of_A_r_ro_y_o_G_r_a_n-de ___ _
City of Atascadero
City of Gro ver Beach
City of Mo rro Bay
City of Paso Robles
City of Pismo Beach
j ___ _
City of San Luis Obispo
San Luis Obispo County
SLOCOG -----------... ·· •· SLO Council of Go vern ments