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City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-1
3G – Housing Blueprint HOUSING
HOUSING ELEMENT VISION
Morro Bay: “...a diverse multigenerational community where jobs, sustainable living wages, and affordable housing options serve as a foundation for people of all ages, abilities and income levels to thrive.”
The Morro Bay Housing Element 2020-2028 provides a review of demographic and economic data that outlines a foundation for regional community housing goals and needs. The data illustrates that the City needs to continue towards providing greater
access to housing at lower income levels, and demonstrates that the city has the
resources, land, and ability to provide such housing. Morro Bay recognizes that
affordable housing is an urgent need in the community and should continue to be a
primary focus, and that lack of such housing has a significant negative impact on our
local businesses, future economic development, the environment, and social
cohesion in general.
The City of Morro Bay participates in the San Luis Obispo Countywide Regional
Compact which identifies six shared regional housing goals:
• To strengthen community quality of life
• To share regional prosperity
• To create balanced communities
• To value agriculture and natural resources
• To support equitable opportunities
• To foster accelerated housing production
Housing creates communities within the larger footprint of the city, providing safety and security through walkable neighborhoods that are diverse in age, cultural background, and socioeconomic status. A balance in housing supply supports the local economy by providing an opportunity for residents to live and work locally and support local businesses which results in a reduction in excessive commutes.
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3-2 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint This Housing Element serves as a metric by which to analyze the efficacy of future projects and developments and to guide planning and land use decisions in the City of Morro Bay.
INTRODUCTION
The Housing Element is one of the eight State-mandated elements of the City’s General Plan. The General Plan presents a community vision for Morro Bay through
2040, and this Housing Element addresses the first phase in that period, 2020-2028.
In the General Plan vision, the community seeks to retain its character as a unique,
eclectic community on the beautiful Central Coast of California while simultaneously
fortifying the resiliency of the region. The community desires to maintain its identity
as a seaside community with a prominent, artistic small-town character, while
advancing goals towards a healthy environment and lifestyle for its citizens and
visitors.
The balance between the city’s residents, workforce, and economic growth is an
outcome of the Housing Element through a long range plan that provides direction
towards creating greater access to housing for people with low and moderate
incomes to fulfill that General Plan vision.
The Housing Element identifies recent demographic and employment trends and the related effect on existing and future housing supply and demand in compliance with current state law regarding housing. The Housing Element recognizes affordable housing as an urgent need and concern in the City of Morro Bay. Affordable housing means housing as defined under Health and Safety Code Sections 50079.5, 50093, 50105, and 50106. The lack of housing for people with a variety of income levels and housing needs results in a significant negative impact on social cohesion and economic development of the community and the environment.
The last two decades have demonstrated that development of higher cost single family homes has been more prevalent than development of moderate and low-cost housing. Importantly, increased housing does not equal increased population. Morro Bay has had a decline in population over the last ten years, with a significant number of homes occupied by only one person. Almost 20% of the housing stock in the City
is vacant. A majority of the noted vacancy is attributable to the continuation of
Morro Bay’s popularity as a premier location for second homes. Some of that
vacancy is also attributable to short term vacation housing as a phenomenon that
has developed over the past decade.
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City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-3
Blueprint The Housing Element has specific criteria for the inclusion of sites currently available to meet the RHNA requirements. There is additional capacity through other existing underutilized parcels that also provide a future opportunity to be developed with additional housing. This partial list includes:
• The former power plant site, currently unoccupied.
• The closed Morro Elementary School site, that is partially utilized as commercial lease space
• Existing motels that could become supportive housing for special needs groups.
The Housing Element serves as a tool to identify and provide for the housing needs of the community. The Housing Element addresses the City’s ability to meet the regional housing needs as determined by the State of California. The City has developed a set of goals, objectives, policies, and implementation actions for the production of housing to meet the needs of all Morro Bay citizens.
A Housing Element is required by California law to establish policies and programs that will support the provision of an adequate housing supply for citizens of all income levels. The intent of state law is to ensure that all jurisdictions in the state provide adequate housing to all members of the community. While the State reviews the Housing Element to ensure compliance with housing law, each jurisdiction must identify its particular issues to successfully address its housing needs.
An understanding of existing housing conditions in the city is necessary as a basis for new Housing Element policies to guide the use and development of housing that will be adequate and affordable. In addition to this focused information, comparisons to San Luis Obispo County demographics and statistics will be used throughout the document to identify possible issues or pertinent relationships. This assessment is representative of the larger area and informative of the trends the entire county is experiencing, helps provide a better understanding of the city in a regional context.
State law is more specific about the content of the Housing Element than about any other portion of the General Plan. That specificity is reflected in the detailed demographics and other data contained herein. The Housing Element is also the only part of the General Plan that is subject to mandatory deadlines for periodic updates. Except for the Local Coastal Plan, it is the only Housing Element that is subject to review and “certification” by the State.
Content of the Housing Element
State Law requires that the Housing Element contains the following information :
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3-4 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint • Analysis of population and employment trends, documentation of projections, and a quantification of the locality’s existing and projected housing needs for all income levels.
• Analysis of any special housing needs populations, such as those with disabilities, the elderly, large families, farmworkers, homeless persons, and single-parent households.
• Analysis and documentation of household characteristics, including level of payment compared to ability to pay, and housing characteristics, including the extent of overcrowding and an estimate of housing stock conditions.
• Analysis of potential and actual governmental constraints on the maintenance, improvement, or development of housing for all income levels. These constraints include land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures.
• Analysis of potential and actual nongovernmental constraints on the maintenance, improvement, or development of housing for all income levels, including the availability of financing, the price of land, and the cost of construction.
• Site-specific inventory of land suitable for residential development, including vacant and underutilized sites, and an analysis considering ease of development related to zoning, public facilities, and City services to these sites.
• Analysis of opportunities for energy conservation with respect to residential development.
• Analysis of the existing and projected needs, including the locality’s share of the regional housing need in accordance with Government Code Section 65584.
Data Sources
The California Department of Housing and Community Development (HCD) developed
a data packet for jurisdictions in San Luis Obispo County that contains much of the
information required for the Housing Needs Assessment of this Housing Element and
is the primary source of data for this document. Where additional information is
required, the US Census, which is completed every 10 years, is the preferred data
source, as it provides the most reliable and in-depth data for demographic
characteristics of a locality. This report uses the US Census American Community
Survey (ACS) data to assess changes since the year 2010 because there is no decennial
census since the 2010 US Census. The ACS provides estimates of numerous housing-
related indictors based on samples averaged over a five-year period. Whereas the US
Census provides complete counts of various demographic indicators, the ACS provides
estimates based on statistically significant samples. Due to the small size of the sample
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City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-5
Blueprint taken in Morro Bay, the estimates reported by the ACS can have large margins of error.
Where ACS data is used, the numbers should not be interpreted as absolute fact, but
rather as a tool to illustrate general proportion or scale. The California Department of
Finance (DOF) is another source of data that is more current than the census. However,
the DOF does not provide the depth of information that can be found in the US Census.
Whenever possible, the San Luis Obispo County HCD data packet, DOF data, and other
local sources were used in the Housing Needs Assessment in order to provide the most
current profile of the community. Information on available sites and services for
housing comes from numerous public agencies. Information on constraints on housing
production and past and current housing efforts in Morro Bay comes from City staff,
other public agencies, and some private sources.
General Plan/Local Coastal Plan Consistency
The City’s Land Use Element and Local Coastal Plan currently designate the sites noted
in this Housing Element for residential purposes at densities consistent with the goals
of providing housing to households within the full range of incomes. The policies in
this Housing Element will guide that process, ensuring internal consistency among the
elements. The City is currently partway through a comprehensive update to its General
Plan and Local Coastal Program known as Plan Morro Bay. All of the other elements of
the General Plan are currently being updated for consistency with recent updates to
state law, including those related to environmental justice, wildfires, and hazards.
Morro Bay does not need to conduct analysis in response to Senate Bill 244 because
no residential communities exist within the City’s sphere of influence.
Public Participation
State law requires that “the local government shall make a diligent effort to achieve
public participation of all economic segments of the community in the development
of the housing element . . .” (Government Code Section 65583).
In order to satisfy this requirement, so far the City has conducted a community
workshop and circulated a survey to receive community input regarding the housing
element.
The public workshop on December 12, 2019, was noticed through direct mail to all
customers who received water service, it was posted in the kiosks, and was posted on
the City’s website. A flyer and questionnaire were created specifically for this meeting.
The flyer was included in the water bills and posted on the City website. The
questionaire was available as an online survey or in hardcopy form at the City that
could be filled out and returned. The City has also posted the draft housing element
on its website and notified interested persons via eblast and social media. Specific
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3-6 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint stakeholders the City has reached out to during the housing element update include
Housing Authority of San Luis Obispo, California Housing Partnership Corporation, the
Morro Bay Planning Commission and Morro Bay City Council.
Public Workshop, December 12, 2019
The City held a public workshop with the general public to solicit input from city
residents on December 12, 2019. The format for this meeting was a presentation with
an overview of the 6th-cycle Housing Element update process and solicited input from
meeting attendees on housing needs in Morro Bay. Twelve members of the public
attended the meeting. The City’s consultant gave an introductory presentation and
then a discussion was held with those attending. An interactive environment was
fostered by the staff, consultant, and attendees. There were no requests for tranlsation
services at the workshop.
The following is a listing of the comments and input received at the workshop:
• It seems unfair that the California Coastal Commission (CCC) and their laws have different requirements than State housing laws since the combination of laws can affect approval for proposed housing projects.
• Morro Bay shouldn’t be forced to relax their development standards to provide housing to meet the RHNA . It doesn’t seem fair that the State supersedes city preferences.
• Morro Bay should become more tiny home-friendly.
• Morro Bay’s biggest economic sector is tourism. We should not discourage or limit vacation rentals when they support our economy.
• There are no policies in the Housing Element that preserve existing naturally affordable units, as opposed to deed-restricted units. These types of existing housing are integral to preserving the laid-back, working class character of Morro Bay. The City should create a policy or mechanism to identify and preserve this type of housing.
• The City should perform a housing inventory of all multi-family units in the city to ascertain rental rates and then preserve the low-cost units. Alternatively, the City could install a blanket protection over all housing in Morro Bay to protect them from cost increases or encourage rehabilitation. We like the idea of investing in existing facilities to be rehabilitated. There are many good buildings in Morro Bay that just need preservation for safe and effective reuse.
• The Housing Element should require that new ADUs be available as long-term rentals rather than vacation rentals. Alternatively, the City could require that an ADU intended to be a vacation rental first be required to be a long-term rental for a certain portion of time prior to converstion to a short-term rental.
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City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-7
Blueprint • Morro Bay used to be a sleepy town, but it is now busy and highly trafficked in the summer. It is no longer a small-town fishing village, and we are scared of intense multi-family development that may potentially be imposed by the government to meet the housing needs. Development should be thoughtful and considerate of local character and desires while meeting the local need.
• The state legalizing ADUs in garages will increase housing safety because those spaces would become compliant with the building code if officially legalized through the city.
• The Housing Element should restrict maximum home sizes to encourage the more housing options (i.e. smaller primary dwelling units and ADUs or tiny homes) on the same property.
• Despite new statewide rent cap, new construction costs are still so high.
• Increases to housing density, via infill or otherwise, should not be at the detriment of the existing infrastructure. Developers must be responsible for infrastructure improvements to accommodate additional growth.
• The community cannot be afraid to grow. The city is down to one elementary school right now, and the community needs more children. North Morro Bay is already densely developed, so new housing should be added in less-dense areas, such as in Morro Heights. This area has wider streets (i.e. more parking) and could lend itself to a reduced dependency on automobiles since it is walkable to shops and services.
• Commuter patterns in Morro Bay contribute to a greater statewide issue related to Vehicle Miles Traveled (VMT) reduction. If Morro Bay needs workforce housing, the argument could also be made that the workforce housing would help decrease VMT in alignment with statewide goals. The workforce housing created in Morro Bay should also be located close to employment areas, potentially with higher density development near these areas, to encourage walking or biking to work. Encouraging active non-vehicular means of transportation supports a better quality of life.
Online and In-Person Survey
The City designed a survey and encouraged stakeholders and members of the general
public to complete the survey either online, mail in or in person. The City distributed a
survey to the general public at the December 12, 2019, community workshop, made it
available in City offices, and published it on the City website. It was available between
December 12, 2019, and January 14, 2020. The survey was advertised to the general
public via the public workshop and through the City’s website. Residents were
encouraged to complete the survey, which posed housing-related questions to
residents about the future of Morro Bay.
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3-8 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint Approximately 20 Morro Bay residents completed the survey, providing feedback on
the availability of housing, factors that influence housing decisions, and the perceived
level of importance of special needs groups in the City. Feedback gathered from the
seven questions is below.
• Question 1: What type of housing will help Morro Bay address the housing shortage?
About 85 percent of responders support apartments, and 60 percent support mixed density housing types on large lots. A majority of responders (55 percent) support accessory dwelling units. Responders are less supportive of new single-family homes, mobile home parks, or tiny/micro homes. The City’s current housing may encourage accessory dwelling unit through Housing Element policies such as Policy H-1.1 promoting housing opportunities for living and working in Morro Bay and Policy H-1.6 regarding ADU development.
• Question 2: What will help incentivize higher density housing?
Three-quarters of responders support expedited permitting, and about 68 percent support permit fee reductions. An equal number of responders support reduced requirements for setbacks, parking, height, or density (42 percent each). A few responses felt that promoting awareness would help incentivize higher density housing. The City’s current housing may promote higher density housing through Housing Element policies such as Policy H-1.2 regarding development incentives and Policy H-2.7 encouraging opportunities for higher density development.
• Question 3: What areas of the City are best suited for high density housing?
A majority of responders are supportive of high density housing in Downtown Morro Bay and near Highway 1’s commercial strip. Responders are generally opposed to locating high density housing in the Cloisters, Morro Heights, North Embarcadero, or Embarcadero. Residents are divided on development in North Morro Bay and the agricultural areas, both east of Highway 1. The City may promote more housing in these areas through implementation actions encouraging high density housing in Downtown Morro Bay and commercial areas.
• Question 4: Should higher density housing be available in all areas of the City?
Approximately 63 percent of responders feel higher density housing should not be available in all areas of the city, with written-in comments stating that high-density housing should be near commercial corridors or away from parking-constrained areas. The other 42 percent support the idea, commenting that mixed-income neighborhoods encourage a more homogenous community. The City may concentrate high density housing development through Housing Element policies such as Policy H-1.4 regarding variable housing densities.
• Question 5: What types of housing groups do you think Morro Bay needs to focus on providing housing for?
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City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-9
Blueprint As illustrated in Figure H-1, responders felt that people who work in Morro Bay, senior citizens, and lower-income families were the highest priority special needs groups in the City. There were some respondents who support more housing for disabled individuals (21 percent) or homeless individuals (16 percent), little support for drug rehabilitation (supportive) housing (5 percent in support). The City’s current housing may become more available to these special needs groups through Housing Element policies such as Policy H-2.1 regarding housing for seniors, Policy H-1.3 regarding inclusionary housing requirements, and Goal H-5 regarding housing costs.
• Question 6: Morro Bay has a large percentage of homes that are vacant most of the year. Does this have a detrimental effect on the community?
Survey responders are largely in agreement (with 79 percent in support) that Morro Bay suffers from the high number of seasonally vacant homes, such as concerns of safety, loss of neighborly atmosphere, and detrimental impacts on the workforce housing opportunities. The few responders in opposition note that tourism is a large economic industry in Morro Bay supported by the large seasonal housing stock. The City’s current housing may address these lost housing opportunities through Housing Element policies such as Policy H-1.1 encouraging living and working in Morro Bay.
• Question 7: Can the housing shortage be solved without the help of the Morro Bay community?
Responses indicate that 79 percent of responders surveyed would like to do their part of help solve the housing shortage in the greater county and state. The other 21 percent of responders did not wish to involve Morro Bay citizens in addressing this problem. The City’s current housing policies may address the housing shortage through Housing Element goals such as Goal H-1 regarding encouraged housing supply, Goal H-2 protecting existing housing, and Goal H-7 educating the public on the housing shortage.
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3-10 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint Survey Participant Prioritization of Housing Needs by Special Needs
Group
68%
74%
21%
84%
5%
89%
16%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Seniors Low income Disabled Families Drug
rehabilitation
housing
People who
work in
Morro Bay
Homeless
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City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-11
Blueprint Other Input Received
The City received emails from two Morro Bay residents. The input included their
concerns about zoning changes that would facilitate housing development and
recommendations for the Morro Bay Housing Element update. The residents expressed
the following comments:
• Oppose taller housing units above existing 27-foot height limit.
• Oppose up-zoning (increased density) for existing low-density residential neighborhoods.
• Do not add to existing parking demands in North Morro Bay.
• Traffic problems need to be addressed in the following areas:
− Intersection of San Jacinto and Highway 1
− Off-ramp at Highway 41 and Main Street
− North Morro Bay streets
− Improve pedestrian safety throughout Morro Bay
Public Draft Housing Element
Due to the COVID-19 public health crisis in-person gatherings including public meetings are restricted. In order the let the public know of the availability of the public draft Housing Element the City is spreading the word through their online Notify Me application to provides updates on City documents and projects via email to those who have signed up. The link to the housing element posted on the City’s website is also being sent it to everyone who signed up to receive notice for the General Plan/Local Coastal Plan update, those who have signed up to receive notice of Planning Commission meetings, and those who signed up at the housing element workshop in December. The link and information will also be posted to the City’s Facebook page and to the Hot Topics section of the city website.
Input Received on Public Draft
The City received a total of five letters from Morro Bay residents, the Morro Bay
Chamber of Commerce, and the San Luis Obispo Council of Governments (SLOCOG).
Their input is summarized below.
• Discussed requesting an extension of the HCD submittal deadline for the
Housing Element, to be able to include data from the 2020 Census and account
for the staff time lost and the difficultly of gathering public input during the
COVID-19 pubic health crisis. Recommended the City develop a second draft
of the Housing Element after HCD’s review to be circulated for additional public
input.
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3-12 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint • How can the draft Housing Element be compared to previous versions? Does
the draft include an index to aid in review?
• Expressed concern that the public draft replaced public hearings and that the
City has not offered adequate opportunities for public participation and that
the draft Housing Element was not made available to all residents.
• Disliked color bar on each page throughout the Housing Element.
• Noted a grammatical error on page 3-9 of the draft Housing Element.
• The Housing Element should include data on conversion of long-term rentals
to short-term rentals.
• Why is there a difference between population data in two tables? Noted that
outdated population data does not show the decline in local population.
• Expressed concern that data is missing on “new construction, demolition,
conversion, and replacement housing units.” The age of the housing stock
needs to be considered.
• Many Morro Bay workers live outside of the community and commute in due
to lack of affordable housing opportunities. This increases emissions and
creates higher turnover in workers who find work closer to where they live. The
current and projected Morro Bay housing units do not meet the needs of all of
these workers.
• Requested data on how many vacant units are rented illegally as vacation
rentals.
• The City should take vacant second homes into account when determining the
local housing that needs to be planned for. Twenty percent of vacant homes
are seasonal second homes.
• Why is there a difference between mobile housing units and number of mobile
home park residents?
• The data on housing condition is too old to be valuable and should be updated.
• Casa de Flores and the Alzheimer house should be included under needs for
seniors.
• Services in San Luis Obispo are too far away to be considered useful to Morro
Bay’s homeless population.
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City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-13
Blueprint • What has happened that has improved access to housing for large families?
• Are Section 8 voucher units considered part of assisted units, or in addition to
them?
• Why do At-Risk Units include only projects that are subsidized by the
government, rather than all units that receive government assistance?
• Expressed support for how the City has met its RHNA objective, developed
policies to address the jobs/housing imbalance, and addressed water supply
concerns.
• Expressed concern for satisfying RHNA’s lower income requirements on a
single site.
• The Housing Element does not identify all possible sites that present
opportunities for development; discussed that including more sites than
necessary to meet RHNA would allow for redundancy if issues arise. Stated that
specific plans should be developed for Morro Elementary, Atascadero Road,
and Harbor Tract sites.
• Inconsistencies between regulatory documents are not adequately assessed
and may result in constraints on development processes, there needs to be a
clear city-wide development process.
• Noted that the Housing Element should use action verbs to commit to policies
rather than passive terms such as “encourage” or “support.”
• “If feasible” and “when feasible” should not be included in policies or programs,
they should identify specific timeframes.
• Recommended that the City should apply the Inclusionary Housing Fee
consistently across all projects, certain uses should not be exempt without a
study supporting why.
• The permit process should be transitioned to an online application format.
• In order to meet the City’s current actual housing need plus RHNA, the City
needs 7,100-7,600 housing units. This means developing a total of 750 housing
units in the next 8 years rather than RHNA’s 350 housing units.
• Expressed concern that the projection of 200 new ADUs in the next RHNA cycle
is unlikely.
• There needs to be a policy for the mixed-use development of downtown.
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3-14 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint • Certain projects that meet objective design standards should be approved by-
right.
How Input Received on Public Draft Has Been Addressed in the Housing
Element
How each comment or question was specifically addressed (if applicable) in the
housing element is listed in detail below.
• Discussed requesting an extension of the HCD submittal deadline for the
Housing Element, to be able to include data from the 2020 Census and account
for the staff time lost and the difficultly of gathering public input during the
COVID-19 pubic health crisis. Recommended the City develop a second draft
of the Housing Element after HCD’s review to be circulated for additional public
input.
o How Addressed: The City and consultant have reached out to HCD
about a potential deadline extension. To date, no extensions have been
made. No revisions were made in response to this comment.
o Staff Response: The draft of the Housing Element has been available for public review and input since April 14, 2020. Public comment can continue to be provided at the public hearings (Planning Commission and City Council)
• How can the draft Housing Element be compared to previous versions? Does
the draft include an index to aid in review?
o How Addressed: No revisions were made in response to this comment.
o Staff Response: The final version is part of the General Plan, which includes the full index. Page numbers will be modified so they are easier to read.
• Expressed concern that the public draft replaced public hearings and that the
City has not offered adequate opportunities for public participation and that
the draft Housing Element was not made available to all residents.
o How Addressed: Additional information was added to the public
participation section. Hearings will be held this summer on the housing
element.
o Staff Response: The draft of the Housing Element has been available for public review and input since April 14, 2020 and continues to be available through the public hearing review. Once Adopted, it will be a final document.
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City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-15
Blueprint • Disliked color bar on each page throughout the Housing Element.
o How Addressed: No revisions were made in response to this comment.
o Staff Response: The final version will include an index as part of the full General Plan document. The page numbers will be modified so they are easier to read.
• Noted a grammatical error on page 3-9 of the draft Housing Element.
o How Addressed: This error has been corrected.
o Staff Response: All grammatical errors pointed out in public comment have been corrected as needed. All comments pointing out spelling, punctuation corrections have not been included in this summary.
• The Housing Element should include data on conversion of long-term rentals
to short-term rentals.
o How Addressed: No revisions have been made. This data is not currently
available beyond the data already included in the housing element and
other elements of draft Plan Morro Bay.
o Staff Response: The city continues to work on a vacation home ordinance to regulate the number of short-term privately-owned homes in the city. The regulation of these, and enforcement through a web-based monitoring program will assist in regulating the number of long-term rental homes that might have been lost to short-term rental use.
• Why is there a difference between population data in two tables? Noted that
outdated population data does not show the decline in local population.
o How Addressed: No revisions were made in response to this comment.
o Staff Response: The population data used was part of the HCD pre-approved data-package.
• Expressed concern that data is missing on “new construction, demolition,
conversion, and replacement housing units.” The age of the housing stock
needs to be considered.
o How Addressed: No revisions were made in response to this comment.
o Staff Response: There is no funding program available through the City for rehab of existing homes and the City does not have the funding or resources to do a housing condition survey.
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3-16 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint
• Many Morro Bay workers live outside of the community and commute in due
to lack of affordable housing opportunities. This increases emissions and
creates higher turnover in workers who find work closer to where they live. The
current and projected Morro Bay housing units do not meet the needs of all of
these workers.
o How Addressed: No revisions were made in response to this comment.
o Staff Response: All of the goals of the housing element will have a positive effect on providing more affordable and appropriate housing in Morro Bay that provides greater opportunities for the public to live and work in Morro Bay. The Jobs/Housing imbalance discussion is addressed in the Land Use Element of the draft General Plan/Local Coastal Program within the Housing and Jobs growth section.
• Requested data on how many vacant units are rented illegally as vacation
rentals.
o How Addressed: No revisions were made in response to this comment.
o Staff Response: The City has contracted with Host Compliance to assist with monitoring and identification of illegal vacation rental units. The City is actively going through the enforcement process on those units operating illegally.
• The City should allocate part of its housing inventory to vacant second homes,
rather than consider those sites viable for development. Twenty percent of
vacant homes are seasonal second homes.
o How Addressed: No revisions were made in response to this comment.
o Staff Responses: See comments above regarding management of short-term vacation rental properties.
• Why is there a difference between mobile housing units and number of mobile
home park residents? Are permanent RVs included in the number of mobile
housing units.
o How Addressed: No revisions were made in response to this comment.
Units and residents are different. RVs are not included in the number of
mobile home.
o Staff Response: The number of units and the number of residents are different statistics. RVs do not meet the 'permanent' home criteria of HCD and as such, are not included in the number of mobile homes.
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City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-17
Blueprint • The data on housing condition is too old to be valuable and should be updated.
o How Addressed: No revisions were made in response to this comment.
o Staff Response: City does not have the resources to conduct such analysis. The City does see a large number of remodel/addition applications which indicates upgrades to current building code standards. Typically, a symptom of a high cost housing market, encouraging remodels over finding new homes.
• Casa de Flores and the Alzheimer house should be included under needs for
seniors.
o How Addressed: No revisions were made in response to this comment.
o Staff Response: Both of these facilities are senior care facilities and are not affordable. The table title indicates 'assisted' financially, not senior care.
• Services in San Luis Obispo are too far away to be considered useful to Morro
Bay’s homeless population.
o Staff Response: The draft Housing Element will add an implementation action to address emergency homeless housing and services.
• What has happened that has improved access to housing for large families?
o How Addressed: No revisions were made in response to this comment.
o The number of larger family households has increased since 2011. As
such, the goals/policies will encourage affordable housing with a variety
of unit sizes at affordable rates (plus the new requirement that all
landlords accept Section 8 vouchers as payment towards the rental
costs, also opens up new opportunities).
• Are Section 8 voucher units considered part of assisted units, or in addition to
them?
o How Addressed: No revisions were made in response to this comment.
Units that are currently rented by someone with a Section 8 voucher are
not included in the assisted units section. They are in addition to the
units in that section.
o Staff Response: Section 8 vouchers are tenant based so they can be used at any rental property. Assisted units are deed restricted, financially assisted projects. The Section 8 vouchers are not considered part of the assisted units category.
3G – Housing
3-18 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint • Why do At-Risk Units include only projects that are subsidized by the
government, rather than all units that receive government assistance?
o How Addressed: No revisions were made in response to this comment.
The units included in this section are those that are required under state
law to be analyzed and monitored for potential to convert to market-
rate units.
o The units included in this section are those that are required under state
law to be analyzed and monitored for potential to convert to market-
rate units.
• Expressed support for how the City has met its RHNA objective, developed
policies to address the jobs/housing imbalance, and addressed water supply
concerns.
o How Addressed: No revisions were made in response to this comment.
o Staff Response: Thank you.
• Expressed concern for satisfying RHNA’s lower income requirements on a
single site.
o How Addressed: No revisions were made in response to this comment.
o Staff Response: Following the HCD requirements, the City needs to identify sites with a potential capacity to meet the RHNA allocation. The City has very few larger vacant sites, so under the HCD requirements and the inclusionary housing requirements, large sites are the most likely to provide a variety of housing with mixed income levels.
• The Housing Element does not identify all possible sites that present
opportunities for development; discussed that including more sites than
necessary to meet RHNA would allow for redundancy if issues arise. Stated that
specific plans should be developed for Morro Elementary, Atascadero Road,
and Harbor Tract sites.
o How Addressed: No revisions were made in response to this comment.
o Staff Response: It can be detrimental to identify all developable sites in the land inventory because if they go undeveloped for more than 2 housing element cycles, they can no longer be included in the Housing Element without changing the zoning on the site. Sites that are not vacant do not meet the criteria for inclusion without additional data supporting development likelihood. The City has a full list of developable properties, some of which were used to meet the criteria of the Housing Element.
3G - Housing
City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-19
Blueprint • Inconsistencies between regulatory documents are not adequately assessed
and may result in constraints on development processes, there needs to be a
clear city-wide development process.
o How Addressed: No revisions were made in response to this comment.
The City is close to finished with a comprehensive update to the Local
Coastal Program, General Plan and Zoning which will address existing
inconsistencies.
o Staff Response: City is addressing this issue through the comprehensive update of the City's General Plan/Local Coastal Program and Zoning Code. An effort to make the documents consistent was a critical part of the development of those documents.
• Noted that the Housing Element should use action verbs to commit to policies
rather than passive terms such as “encourage” or “support.”
o How Addressed: No revisions were made in response to this comment.
o Staff Response: The City cannot mandate development of property owned by individuals, and can only incentivize developers to create housing in accordance with the RHNA goals, as such using terms like support or encourage is more prudent than over committing with stronger terms.
• “If feasible” and “when feasible” should not be included in policies or programs,
they should identify specific timeframes.
o How Addressed: Implementation Action H-1.2.2 was revised to remove
“when financially feasible.”
o Staff Response: General timeframes could be added, but ultimately policy implementation is dependent of a number of factors including staffing and ability to fund policy implementation. Ultimately, the City Council decides through their goal setting and budgetary process how and when items get addressed.
• Recommended that the City should apply the Inclusionary Housing Fee
consistently across all projects, certain uses should not be exempt without a
study supporting why.
o How Addressed: No revisions were made in response to this comment.
o Staff Response: During implementation of the housing element goals and policies, expansion of the inclusionary housing fee and determining the criteria for projects that can be processed under an expedited residential-by-right process is included in the Housing Element Update - See Housing Element Policy H-1.3.
3G – Housing
3-20 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint • The permit process should be transitioned to an online application format.
o How Addressed: No revisions were made in response to this comment.
o Staff Response: The City is in the process of turning the Cityworks (City Permit System) public facing. Currently the migrating the contractor database from the old permit system to the new system. Once the task is complete the City will move forward with the public facing portion of Cityworks.
• In order to meet the City’s current actual housing need plus RHNA, the City
needs 7,100-7,600 housing units. This means developing a total of 750 housing
units in the next 8 years rather than RHNA’s 350 housing units.
o How Addressed: No revisions were made in response to this comment.
o Staff Response: The Housing Element provides a framework for providing more housing. The City is only required to show how they will address the RHNA assigned to them. That does not mean that the City will not continue to try to create housing to meet demand.
• The Housing Element lists only one site for low-income tenants with a realistic
density of 215 units concentrating low, very low and extremely low income all
on one site.
o How Addressed: No revisions were made in response to this comment.
o Staff Response: The Housing Element lists more than one site for lower income households. Typically, affordable projects are designed with a range of lower-income levels to serve a greater range in potential tenant and to help create a feasibly project. This range of low income levels will provide for a very diverse tenant base, from those who need rental assistance, even at these low rental rates, to those who work at lower wage jobs who can finally afford housing that they can afford without roommates.
• Expressed concern that the projection of 200 new ADUs in the next RHNA cycle
is unlikely.
o How Addressed: No revisions were made in response to this comment.
o Staff Response: With the changes in state law that now allow both an ADUs and Junior ADUs on a single-family or multi-family residential lot and with the number of applications received for ADUs staff believes the number is reasonable. The commitment used in the Housing Element for ADUs is significantly less than the allowance provided by HCD.
3G - Housing
City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-21
Blueprint • There needs to be a policy for the mixed-use development of downtown.
o How Addressed: No revisions were made in response to this comment.
o Staff Response: The draft Plan Morro Bay Community Design Element
includes implementation actions to encourage mixed-use development
in the downtown.
• Certain projects that meet objective design standards should be approved by-
right.
o How Addressed: Implementation Action H-1.1.13 was revised to
address the issue of objective design standards. The update to the City’s
zoning regulations that is currently underway will address requirements
of state law related to objective design standards.
o Staff Response: The City was successful in application for SB2 grant funding which includes funding for this program.
• Goal H-3 – Low income housing should provide ADA accessible units in all
projects with governmental funding
o How Addressed: No revisions were made in response to this comment.
o Staff Response: ADA and accessible unit are a requirement for all
income levels housing projects in accordance with ADA and CBC.
• Why is the zoning density not ‘maxed out’ on table H-36 (Vacant site
inventory)? Why list potential development for ‘above moderate’ income
levels? Why isn’t the category “affordable” listed on Table H-35 (the RHNA
allocation table by income)?
o How Addressed: No revisions were made in response to this comment.
o Staff Response: Zoning density on Table H-37 is showing a realistic
number – considering all site constraints. Potential development on
H-37 includes moderate and above moderate-income levels because
those are also included in the RHNA requirement – well balanced
housing stock will provide a variety of income opportunities.
Affordable is not an income category – but rather a generalization
referring to how much an individual spends on housing from their total
income. Income levels listed are specifically identified categories of
income based on percentage of Area Median Income Levels as
3G – Housing
3-22 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint published by HUD. The extremely low, very low and low-income
categories are considered affordable.
Planning Commission Hearing – July 7, 2020
The Morro Bay Planning Commission reviewed the final draft 2020-2028 Housing Element at their online meeting on July 7, 2020. Two members of the public participated in public comment. The City and consultant presented about the final draft housing element and responded to questions. Members of the Planning Commission had comments and questions throughout the draft document. The Planning Commission voted to continue the Housing Element item to their next meeting on July 21, 2020.
Planning Commission Hearing – July 21, 2020
The Morro Bay Planning Commission continued to review the final draft 2020-2028 Housing Element at their online meeting on July 21, 2020. The City and consultant responded to questions on the draft. Members of the Planning Commission had comments and questions throughout the draft document.
The Planning Commission voted to approve forwarding the final draft Housing Element and the associated CEQA Initial Study/Negative Declaration to the City Council for their review and approval.
City Council Hearing – August 25, 2020
The Morro Bay City Council reviewed the final draft 2020-2028 Housing Element at their meeting on August 25, 2020. Four members of the public participated in public comment. City staff and consultant presented about the final draft housing element and responded to questions.
The City Council voted to adopt the Housing Element and associated CEQA Initial Study/Negative Declaration. The Council authorized City staff to submit the adopted Housing Element to HCD for their certification review.
Coastal Zone Requirement
Communities located within coastal zones are required to review coastal zone
affordable housing obligations, including the preservation of existing occupied units
affordable to low- or moderate-income households and, where feasible, include low-
and moderate-income housing in new developments.
To assist a locality’s determination of whether the affordable housing stock in the
coastal zone is being protected and provided as required by Government Code Section
65590, the Housing Element must contain data on the new construction, demolition,
3G - Housing
City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-23
Blueprint conversion, and replacement of housing units for low- and moderate-income
households within the coastal zone, including the following:
1. The number of new housing units suitable for persons and families of low and
moderate income approved for construction within the coastal zone (after
January 1982).
2. The number of housing units available to persons and families of low and
moderate income required for new housing developments either within the
coastal zone or within three miles of it.
3. The number of existing residential dwelling units occupied by low- and
moderate-income households in or within three miles of the coastal zone that
have been authorized to be demolished or converted.
4. The number of residential dwelling units for low- and moderate-income
persons and families that have been approved for demolition or conversion
that must be replaced by equally affordable units (of those units being
demolished or converted) in or within three miles of the coastal zone, and
designate the location of the replacement units in the housing element review
for coastal zones.
The entirety of the city’s housing stock is within three miles of its coastal zone and
includes a total of 126 affordable housing units; all of these units were constructed
after 1982. These units provide housing for low- and moderate-income households.
No units have been demolished, and therefore none have needed replacement. Table
H-1 presents coastal zone affordable housing documentation.
3G – Housing
3-24 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint Coastal Zone Affordable Housing Documentation
New housing units approved for construction within the coastal zone since
January 19821
Approximately
2,000
Housing units for persons and families of low- or moderate-income
required to be provided in new housing developments within the coastal
zone, or within 3 miles2 126
Existing residential dwelling units occupied by low- and moderate-income households required either in the coastal zone or within 3 miles
of the coastal zone that have been authorized to be demolished or
converted since January 19823
0
Residential dwelling units for low- and moderate-income households that have been required for replacement4 0
1Estimate based on 2000 Census and City building permits issued between 2009 and 2020.
2Total affordable housing units already built or approved based on affordable housing within 3 miles of the Morro Bay coastal zone.
3No required affordable housing has been demolished or converted.
4Since 2009, no low- and/or moderate-income units in the coastal zone have been required for replacement.
3G - Housing
City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-25
Blueprint HOUSING NEEDS ASSESSMENT
The Housing Needs Assessment is the section of the Housing Element that presents
the characteristics of the city’s population and existing housing stock as a means of
better understanding the nature and extent of unmet housing needs.
Population Characteristics
The type and amount of housing needed in a community is largely determined by
population growth and demographic characteristics such as age, household size,
occupation, and income.
Population Trends
According to the Department of Finance (DOF), the population of Morro Bay increased
slightly from 10,234 in 2010 to 10,439 in 2019 (Table H-2). The DOF estimated the
city’s 2019 population to be 10,439 persons, which represents a change of 2 percent
since 2010. The city’s growth rate increased at a lower rate than other coastal
communities in the county. At 8 percent, Atascadero and Pismo Beach had the highest
population increases in the county.
San Luis Obispo County Population Change, 2010–2019
Jurisdiction
2010
Population
2019
Population
Percentage
Change
2010–2019
Morro Bay 10,234 10,439 2%
Arroyo Grande 17,252 17,876 4%
Atascadero 28,310 30,405 7%
El Paso de Robles 29,793 31,244 5%
Grover Beach 13,156 13,533 3%
Pismo Beach 7,655 8,239 8%
San Luis Obispo 45,119 46,802 4%
Unincorporated 118,118 121,855 3%
Source: DOF 2011–2019 (San Luis Obispo County Housing Element Data Profiles)
SLOCOG published a 2050 Regional Growth Forecast for San Luis Obispo County in June
2017. Population, households, and jobs were projected through 2050 for low-, mid-, and
high-growth scenarios. Table H-3 reports the midgrowth scenario of a 20 percent increase
3G – Housing
3-26 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint in population from 10,234 residents in 2010 to 12,261 residents in 2050. As noted in the
constraints section (Chapter 4), the population is not anticipated to increase above the
12,200 Measure F growth limit approved by the voters in Morro Bay within this Housing
Element planning period.
Population Growth
Year
Jurisdiction
Morro Bay
Unincorporated San Luis Obispo County
2010 10,234 118,118
2015 10,640 118,950
2020 11,025 123,597
2025 11,401 128,279
2030 11,715 132,066
2035 11,961 134,975
2040 12,092 136,539
2045 12,169 137,461
2050 12,261 138,534
Percentage Change 2010–2050 20% 17%
Source: SLOCOG (Figure 116), US. Census Bureau (2010 Census), State of California Department of Finance (2015), Beacon Economics (forecast years)
3G - Housing
City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-27
Blueprint Age Characteristics
Each age group represented in the chart below, has distinct lifestyles, family types and
sizes, income levels, and housing preferences. As people move through each stage of
life, housing needs and preferences also change. As a result, evaluating the age
characteristics and trends of a community is important in determining existing and
future housing needs. Table H-4 provides information on each age group of Morro
Bay’s residents according to US Census Bureau data from 2010 and 2017. There was
little change between 2010 and 2017, with the exception of a small decrease in persons
ages 45 to 64 and an increase in persons ages 65 and over. Despite these changes, the
population in Morro Bay remains older than in most cities; 55 percent of residents are
45 years old or older.
Age Characteristics, 2010–2017
Age Group
2010 2017
Number Percentage Number Percentage
Under 5 years 447 4% 400 4%
5–17 years 1,083 11% 1,108 10%
18–24 years 815 8% 889 8%
25–44 2,264 22% 2,342 22%
45–64 3,200 31% 2,900 27%
65+ 2,425 24% 2,929 28%
Total 10,234 100% 10,568 100%
Source: US Census 2010; ACS 2013-2017
The age of householder is another way to measure age in the city. As shown in Table
H-5, owner-occupied households tend to have older householders, while renter-
occupied households tend to have younger householders.
3G – Housing
3-28 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint Age of Householder by Tenure
Age of Householder Number Percentage
Owner occupied 2,774 57%
Householder 15 to 24 years 0 0%
Householder 25 to 34 years 53 2%
Householder 35 to 44 years 217 8%
Householder 45 to 54 years 396 14%
Householder 55 to 59 years 334 12%
Householder 60 to 64 years 339 12%
Householder 65 to 74 years 746 27%
Householder 75 to 84 years 484 17%
Householder 85 years and over 205 7%
Renter occupied 2,072 43%
Householder 15 to 24 years 107 5%
Householder 25 to 34 years 382 18%
Householder 35 to 44 years 550 27%
Householder 45 to 54 years 315 15%
Householder 55 to 59 years 78 4%
Householder 60 to 64 years 135 7%
Householder 65 to 74 years 321 15%
Householder 75 to 84 years 87 4%
Householder 85 years and over 97 5%
Total 4,846 100%
Source: ACS 2013–2017 Estimates (HCD SLO County Housing Element Update Data Profile)
Note that this total householder count is different than the total household count presented elsewhere in this Housing Element. This is the total presented by the Census in the data packet as approved by HCD and therefore, considered accurate for this table.
Employment
Employment has an important impact on housing needs. Different jobs and associated
income levels determine the type and size of housing a household can afford.
Employment growth in the region typically increases housing demand.
3G - Housing
City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-29
Blueprint The California Employment Development Department (EDD) estimates that as of
November 2019, 5,100 Morro Bay residents were in the labor force, with 2.8 percent
unemployment, compared to a countywide unemployment rate of 2.5 percent.
According to the 2013-2017 ACS Five Year Estimates, jobs held by Morro Bay residents
were most concentrated in the education, health and social services sectors (26
percent). Table H-6 identifies employment by industry type for Morro Bay and San
Luis Obispo County.
Employment by Industry Type, 2017
Occupation
Morro Bay San Luis Obispo County
Number Percentage Number Percentage
Agriculture, forestry, fishing and hunting, 48 1% 4,480 4%
Construction 377 8% 10,235 8%
Manufacturing 208 5% 8,841 7%
Wholesale trade 94 2% 2,820 2%
Retail trade 610 13% 14,851 12%
Transportation and warehousing, and
175 4% 5,845 5%
Information 98 2% 2,012 2%
Finance and insurance, and real estate
and rental and leasing 171 4% 5,842 5%
Professional, scientific, and management,
and administrative and waste
631 14% 13,821 11%
Educational services, and health care and
social assistance 1,187 26% 30,501 24%
Arts, entertainment, and recreation, and
accommodation and food services 626 14% 16,229 13%
Other services, except public
268 6% 6,676 5%
Public administration 150 3% 7,124 6%
Civilian employed population 16 years 4,643 100% 129,277 100%
Source: ACS 2013–2017 Five-Year Estimates (HCD San Luis Obispo County Housing Element Update Profiles)
The EDD produces a yearly Occupational Employment and Wage Data spreadsheet by
metropolitan statistical area (MSA). Table H-7 shows employment wage estimates
from 2010 and 2019 as related to job growth for the San Luis Obispo-Paso Robles
MSA. In the San Luis Obispo-Paso Robles MSA new employment is expected to be
concentrated in a variety of occupations. When comparing these annual incomes to
the San Luis Obispo County median income in 2019 for a family of four ($87,500), only
3G – Housing
3-30 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint one occupational group is above this median income (software developers). Of these
ten occupational groups, the highest annual salary falls under the software developers,
systems software occupation at $91,048. The lowest annual salary is in the nonfarm
animal caretaker occupations at $30,075.
San Luis Obispo-Paso Robles Metropolitan
Statistical Area Employment Wage Estimates
Occupation 2019 Median Hourly Wage 2019 Median Annual Salary
Estimated
Employment Percentage
Change 2010 2019
Software Developers,
Systems Software $43.77 $91,048 120 240 28%
Cost Estimators $38.37 $79,817 180 230 38%
Operating Engineers and Other Construction
Equipment Operators
$37.04 $77,036 300 320 10%
Market Research Analysts and Marketing Specialists $30.20 $62,814 180 290 14%
Insurance Sales Agents $26.71 $55,564 170 290 -15%
Construction Laborers $22.14 $46,057 730 1,220 -7%
Veterinary Technologists and Technicians $19.48 $40,513 200 110 33%
Home Health Aides $16.37 $34,038 460 N/A 56%
Nonfarm Animal Caretakers $14.46 $30,075 200 230 39%
Electrical Power Line Installers and Repairers1 N/A N/A 190 90 N/A
Source: EDD 2019
Note:
1. An estimate of wages could not be provided for these categories
Commute
Commute distance is an important factor in housing need, affordability and is also an
indicator of jobs/housing balance. Communities with extended commute distances (60
minutes or more) generally have a poor jobs/housing balance, while those with short
average commutes tend to have a strong jobs/housing balance. The burden of the
additional costs associated with extended commuting disproportionately affects
lower-income households, who must spend a larger portion of their overall income on
fuel. This in turn affects a household’s ability to find decent, affordable housing. Table
3G - Housing
City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-31
Blueprint H-8 indicates that the vast majority of Morro Bay residents travel less than 30 minutes
from home to work. This figure indicates that many of the jobs are within 20 miles of
the city and that there is a strong jobs/housing balance, meaning that the available
jobs are reasonably close to the employees’ places of residence.
Travel Time to Work
Travel Time to Work Percentage
Less than 30 minutes 72%
30 to 59 minutes 22%
60 or more minutes 6%
Total 100%
Source: ACS 2013–2017 Five-Year Estimates Household Characteristics
Household Characteristics
According to the Department of Finance and as shown in Table H-9, there were 4,846
households in the City of Morro Bay in 2017. This represents a less than 1 percent
increase, or two households, from 4,844 households in 2010. The number of
households stayed virtually the same during this time period.
Household Trends, 2010–2017
Jurisdiction 2010 2017 Percentage Change
Morro Bay 4,844 4,846 <1%
Source: US Census 2010 and ACS B25003 2013-2017 (HCD SLO County Housing Element Data Profile)
Note that this total household count is different than the total household count presented elsewhere in this Housing Element. This is the total presented by the Census in the data packet as approved by HCD and therefore, considered accurate for this table.
Overcrowding
The US Census Bureau defines overcrowding as when a housing unit is occupied by
more than the equivalent of one person per room (not including kitchens and
bathrooms). A typical home might have three bedrooms, a living room, and a dining
room, for a total of five rooms. If more than five people were living in the home, it
would be considered by the Census Bureau to be overcrowded. Because some
households require less “space” per person, there is some question of whether units
with slightly more than one person per room really have an overcrowding problem. In
3G – Housing
3-32 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint most cases, units with more than 1.01 persons per room are overcrowded. Units with
more than 1.50 persons per room are considered highly overcrowded and should be
recognized as a significant housing problem.
Morro Bay has a low incidence of overcrowding. Less than 1 percent of all the occupied
housing in the city has more than one person per room. Among renter-occupied units,
a total of 91 units are considered overcrowded, and 28 units are considered severely
overcrowded. Table H-10 shows the persons per room for homeowners and renters
in Morro Bay.
Persons per Room by Tenure, 2017
Persons per Room
Morro Bay
Households Percentage
Owner-Occupied Units
1.00 or less 2,774 100%
1.01 to 1.50 0 <1%
1.51 or more 0 <1%
Total 2,774 100%
Renter-Occupied Units
1.00 or less 1,981 96%
1.01 to 1.50 63 3%
1.51 or more 28 1%
Total 2,072 100%
Source: ACS 2013–2017 Five-Year Estimates (HCD SLO County Housing Element Update Profiles)
Tenure of Occupied Units
Tenure refers to whether a unit is owner-occupied or renter-occupied. Table H-11
shows that 57 percent of the housing units are owner-occupied and 43 percent of the
housing units are renter-occupied in Morro Bay. It should be noted that some of the
owner-occupied households are occupied seasonally or are used as vacation rentals.
Vacant Units are not included in the totals below. This is discussed further under
“Vacant Units” later in this chapter.
3G - Housing
City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-33
Blueprint Tenure of Occupied Housing Units, 2017
Type of Unit Units Percentage
Owner-Occupied 2,774 57%
Renter-Occupied 2,072 43%
Total Occupied Units 4,846 100%
Source: ACS 2013–2017 Five-Year Estimates (HCD SLO County Housing Element Update Data Profile)
Note that this total occupied unit count is different than the total household or householder count presented elsewhere in this Housing Element. This is the total presented by the Census in the data packet as approved by HCD and therefore, considered accurate for this table.
Persons per Household
Household size by tenure is shown in Table H-12. In 2017, the majority of owner-
occupied households were inhabited by two to four residents. Most renter-occupied
households were also inhabited by two to four residents.
Household Size by Tenure, 2017
Number Percentage
Owner 2,774 57%
Householder living alone 985 52%
Households 2–4 persons 1551 58%
Large households 5+ persons 238 81%
Rental 2,072 43%
Householder living alone 900 48%
Households 2–4 persons 1117 42%
Large households 5+ persons 55 19%
Total 4,846
Total householders living alone 1,885 39%
Total Households 2–4 persons 2,668 55%
Total Large households 5+ persons 293 6%
Source: 2013–2017 ACS Five-Year Averages (HCD SLO County Housing Element Update Data Profile)
Note that this total householder count is different than the total household count presented elsewhere in this Housing Element. This is the total presented by the Census in the data packet as approved by HCD and therefore, considered accurate for this table.
3G – Housing
3-34 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint Housing Stock Characteristics
The existing housing stock in Morro Bay can be described by a number of
characteristics, including the number of units, type (single-family, mobile home,
apartment, etc.), their tenure (owner- occupied vs. rental), the number of people living
in the unit (household size), and unit size. Later sections of this chapter discuss cost
and the physical condition of homes in the city.
Number of Housing Units
The DOF reported a total of 6,320 housing units in the City of Morro Bay in 2010 and
a total of 6,466 housing units in 2018. Table H-13 shows the percentage increase in
the number of housing units in Morro Bay between 2010 and 2018.
Increase in Housing Units, 2010 and 2018
2010 2018
Total Housing Units 6,320 6,466
Percentage Increase — 2.3%
Source: DOF 2010-2019 (HCD SLO County Housing Element Update Data Profile)
Note that this total housing unit count is different than the total housing unit count presented elsewhere in this Housing Element. This is the total presented by the Census in the data packet as approved by HCD and therefore, considered accurate for this table.
Vacant Units
A vacancy rate measures the overall housing availability in a community and is often a
good indicator of how efficiently for-sale and rental housing units are meeting the
current demand for housing. A vacancy rate of 5 percent for rental housing and 2
percent for ownership housing is generally considered healthy and suggests that there
is a balance between the demand and supply of housing. A lower vacancy rate may
indicate that households are having difficulty in finding housing that is affordable,
leading to overcrowding or households having to pay more than they can afford.
According to the 2013–2017 ACS Five-Year Estimates, there were a total of 1,360
vacant units recorded in Morro Bay. The vacancy rate for the city was estimated to be
20 percent in 2000, 23 percent in 2011, and 22 percent in 2017. The increase since the
turn of the century are due to an increase in seasonal-, recreational-, or occasional-use
units (which include vacation rentals) during that time. The vacancy rates when that
type of unit is eliminated has decreased since 2011 indicating few units for sale or rent
available. As noted in Table H-14, of the 1,360 total vacant units recorded in Morro
3G - Housing
City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-35
Blueprint Bay in 2017, 29 were for rent, 34 were for sale, and 1,194 were for seasonal, recreational,
or occasional uses.
Housing Units by Occupancy Status, 2017
Housing Units by Occupancy Status Number
Percentage of
Total Units
Total housing units 6,206 100%
Total occupied housing units 4,846 78%
Vacant housing units 1,360 22%
Vacant Housing Unit Subcategories Number Percentage of Vacant Units
For rent 29 2%
Rented, not occupied 0 0%
For sale only 34 2.5%
Sold, not occupied 36 2.5%
For seasonal, recreational, or occasional use 1,194 88%
All other vacant 67 5%
Vacancy rate 22%
Vacancy rate minus seasonal units 1.0%
Homeowner vacancy rate 1.2%
Rental vacancy rate 1.1%
Source: 2013–2017 ACS Five-Year Estimate (HCD SLO County Housing Element Update Data Prof ile)
Note that this total housing unit count is different than the total housing unit count presented elsewhere in this Housing Element. This is the total presented by the Census in the data packet as approved by HCD and therefore, considered accurate for this table.
Type of Housing Unit
Table H-15 shows the different types of housing units in Morro Bay by the number of
units in the structure. In Morro Bay, 72 percent of the housing units are single-family
detached homes, while attached single-family homes provide another 6 percent of the
housing stock. Multifamily units constitute 15 percent, and mobile homes make up 8
percent of the housing stock in the city.
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Blueprint Occupied Housing Units by Type, 2018
Housing Unit Type
Morro Bay
Units Percentage
Single-Family Detached 4,626 72%
Single-Family Attached 375 6%
2 to 4 Units 449 7%
5 or More Units 528 8%
Mobile Homes 488 8%
Total Housing Units 6,466 100%
Source: DOF 2019 (HCD SLO County Housing Element Update Data Profile)
Note that this total housing unit count is different than the total housing unit count presented elsewhere in this Housing Element. This is the total presented by the Census in the data packet as approved by HCD and therefore, considered accurate for this table.
Age of Housing Stock
An indication of the quality of the housing stock is its general age. Typically, housing
over 30 years old is likely to have rehabilitation needs that may include plumbing, roof
repairs, foundation work, and other repairs. Table H-16 displays the age of Morro
Bay’s housing stock as of 2018. Among these units, approximately 21 percent of the
housing units in Morro Bay have been built since 1990, and approximately 66 percent
of housing is more than 40 years old.
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City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-37
Blueprint Housing Units by Age, 2018
Structure Built Units Percentage
2015 to 2018 103 2%
2009 to 20141 75 1%
2000 to 20082 350 5%
1990 to 2000 858 13%
1980 to 1989 882 13%
1970 to 1979 1,551 23%
1960 to 1969 1,186 17%
1950 to 1959 1,034 15%
Prior to 1950 775 11%
Total Units 6,814 100%
Sources: US Census; 1City of Morro Bay, 2009-2018; 2Department of Finance numbers, 2000–2008
Note that this total housing unit count is different than the total housing unit count presented elsewhere in this Housing Element. This is the total presented by the Census, Department of Finance, and based on local city data and therefore, considered accurate for this table.
Housing Conditions
As of May 2009, according to the City’s building inspector, approximately 20 to 25
percent of the housing stock was in need of rehabilitation. In 2004, City staff conducted
a house-by-house survey (100 percent of housing units) in four identified Target
Income Census Block Groups (TIG) (see Figure H-2).
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3-38 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint 2004 Census Block Groups
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City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-39
Blueprint Using the survey and point rating system prescribed by HCD, each unit was catalogued
by condition of the roof, siding, foundation, windows, and electrical components. The
figures were tabulated to establish a total score and identify each structure as sound,
needs minor repair, needs moderate repair, needs substantial repair, or is dilapidated.
Table H-17 outlines the criteria used to determine the condition of the homes. Table
H-18 shows the breakdown of homes in each TIG area surveyed. Of the 1,502 homes
surveyed, 403 were deemed to be in sound condition, 25 were dilapidated, and 1,074
were in need of some degree of repair. The survey did not differentiate between
owner- occupied and renter-occupied properties.
Mobile homes were also evaluated by City staff in 2004. That survey found that a lesser
percentage of these residences were categorized in the “Excellent” and “Sound 1”
ratings, but that in general, approximately one-quarter of the mobile homes were in
need of major rehabilitation or replacement.
In 2014, City staff confirmed that the assessment in this section was still current. The
rehabilitation need in the city has not changed significantly since 2009 though
conditions will deteriorate over time as housing stock ages. During the previous 2009–
2014 planning period, approximately 10 code enforcement cases related to
substandard housing were opened. All cases have since been resolved. The City has
only had a tracking system for code enforcement in the last couple of years. There
have been two cases related to substandard housing since that system was put into
place. Both have been resolved. Generally the condition of the housing in Morro Bay
has improved since the 2014 because home values have gone up, allowing people to
obtain funding for improvements, and the majority of the building permits the City has
processed since 2014 are homeowners re-investing in their homes - small expansions
and remodels of existing homes. In addition, the Code Enforcement and building
inspection staff note health and safety issues that they observe when out in the field
on a call and provide property owners with resources that can assist with necessary
repairs/corrections (see Implementation Action H-2.1.7).
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3-40 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint Housing Condition Survey Criteria
Rating Criteria
Sound Units that appear structurally sound and well maintained.
Minor Repair Units that appear structurally sound but show signs of deferred maintenance or upkeep. The house may need a roof replacement or new
windows and a paint job.
Moderate Repair Involves repair or replacement of more than one rated system. This category varies widely and may include, for example, a unit that needs
replacement of the roof, electrical system, windows and doors.
Substantial
Repair
Replacement of several major systems, including complete or major
foundation work, replacement or repair of exterior siding, reconstruction
of the roof system and complete re-plumbing.
Dilapidated All the rated systems need repair and making those repairs to bring the structure into compliance with the current Uniform Building Code would
not be cost-effective.
Source: City of Morro Bay Staff, 2004
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Blueprint Housing Conditions in Target Income Groups, Morro Bay, 2004
Census Block Group Number of Units Sampled Condition of Housing Units
105.2 605 Sound 168 28%
Minor 292 48%
Moderate 109 18%
Substantial 30 5%
Dilapidated 6 1%
105.3 301 Sound 66 22%
Minor 117 39%
Moderate 72 24%
Substantial 27 9%
Dilapidated 19 6%
105.5 351 Sound 124 35%
Minor 161 46%
Moderate 64 18%
Substantial 2 1%
Dilapidated 0 0%
106.5 245 Sound 45 18%
Minor 135 55%
Moderate 51 21%
Substantial 14 6%
Dilapidated 0 0%
Source: City of Morro Bay Staff, 2004
Household Income
For the purpose of evaluating housing affordability, housing need, and eligibility for
housing assistance, income levels are defined by guidelines adopted each year by HCD.
For San Luis Obispo County, the applicable median income for a family of four in 2019
was $87,500; 2019 is the most recent data available from the state.
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3-42 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint HCD has defined the following income categories for San Luis Obispo County based
on the median income for a household of four persons:
• Extremely low income: 30 percent and below ($0 to $26,950)
• Very low income: 31 to 50 percent of median income ($26,951 to $44,950)
• Low income: 51 to 80 percent of median income ($44,951 to $71,900)
• Moderate income: 81 to 120 percent of median income ($71,901 to $105,000)
• Above moderate income: 120 percent or more of median income ($105,001 or more)
Table H-19 shows the maximum annual income level for each income group adjusted
for household size for San Luis Obispo County. The maximum annual income data are
used to calculate the maximum affordable housing payments for different households
(varying by income level) and their eligibility for federal housing assistance.
Maximum Household Income Level by Household Size, 2019
Household Size
Maximum Income Level
Median Extremely Low Very Low Low Moderate
1-Person $61,250 $18,900 $31,500 $50,350 $73,500
2-Person $70,000 $21,600 $36,000 $57,550 $84,000
3-Person $78,750 $24,300 $40,500 $64,750 $94,500
4-Person $87,500 $26,950 $44,950 $71,900 $105,000
5-Person $94,500 $30,170 $48,550 $77,700 $113,400
6-Person $101,500 $34,590 $52,150 $83,450 $121,800
7-Person $108,500 $39,010 $55,750 $89,200 $130,200
8-Person $115,500 $43,430 $59,350 $94,950 $138,600
Source: HCD 2019
Table H-20 provides a summary of household income in Morro Bay according to the
2013-2017 ACS Five-Year Estimates. Table H-20 also provides the HCD income
category for households in 2019. However, HCD income categories and the Census
Bureau’s income categories do not correspond directly, and the correlation between
HCD and Census categories is for informational purposes only.
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City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-43
Blueprint Household Income
HCD Income Category Income Ranges
Owner Renter
Households Percentage Households Percentage
Extremely
Low
<$10,000 101 4% 83 4%
$10,000–$14,999 111 4% 192 9%
$15,000–$24,999 182 7% 209 10%
Very Low $25,000–$34,999 169 6% 291 14%
Low $35,000–$49,999 389 14% 343 17%
$50,000–$74,999 550 20% 403 19%
Moderate $75,000–$99,999 422 15% 250 12%
Above Moderate $100,000–$149,999 517 19% 208 10%
More than $150,000 333 12% 93 4%
Total 2,774 100% 2,072 100%
Source: ACS 2013–2017 Five-Year Estimates; HCD 2019
Cost of Living and Affordability
The price of affording housing is directly related to the extent of housing problems
faced by lower- and moderate-income households in a community. If housing costs
are high relative to household income, the incidence of housing cost burden and
overcrowding will also be high. This section summarizes the cost and affordability of
housing to Morro Bay residents.
For-Sale Housing Prices
According to San Luis Obispo Association of Realtors, the median home sale price in
Morro Bay was $750,272 in 2019, an increase of approximately 2 percent from the 2018
median of $732,561. Median prices in Morro Bay tend to be in the middle to low range
compared to other San Luis Obispo communities, and are just above the county
average. Table H-21 shows median home sales prices in Morro Bay and nearby
communities for 2018 and 2019. Assuming a 4 percent interest rate and 20 percent
down payment, a family of four would need to make approximately $128,000 to afford
a $750,272 house. A median-priced home in Morro Bay is only affordable to families
with “above moderate” income levels.
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3-44 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint Annual Median Sales Price, 2018–2019
Community/City 2019 Median Price 2018 Median Price Percentage Change
San Luis Obispo County $718,634 $696,553 3%
Atascadero $583,428 $576,941 1%
Cambria $961,409 $735,947 31%
Cayucos $1,170,889 $1,129,936 4%
Los Osos $650,114 $645,825 1%
Morro Bay $750,272 $732,561 2%
Paso Robles $527,636 $500,496 5%
San Luis Obispo (City) $909,767 $939,373 -3%
Source: SLO Life Magazine 4th Quarter 2019, San Luis Obispo Associate of Realtors, 2019
Rental Housing Cost
Examining the rental housing market is a direct means to identifying rental price
information. Rents are ultimately determined by the interaction of supply and demand
within the housing market. The two most significant factors contributing to rental
prices are location and amenities. Morro Bay’s close proximity to the ocean makes it a
high-demand location in which to reside, causing rental costs to increase as the
demand increases. Table H-22 provides samples of “typical” rental housing in the
Morro Bay area as identified during a point-in-time count online via Zillow Rental
Survey on November 12, 2019.
Residential Rental Prices, Morro Bay 2019
Type
Number of Units Surveyed Low High
Studio 1 $1,150 $1,150
1 bedroom 3 $1,500 $1,900
2 bedrooms 6 $1,600 $2,950
3 bedrooms 7 $2,200 $3,500
4+ bedrooms 2 $2,400 $3,500
Source: Zillow Rental Survey, November 2019
Although the monthly cost of rental housing is an important measure of affordability,
the up front move-in costs, such as first month’s rental payment and a security deposit
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City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-45
Blueprint prior to moving in may make the rental unit cost prohibitive to a new tenant whether
or not they could afford the monthly rental and living costs. Additional up-front cost
might include deposits to connect to services such as water and electricity, and
possibly extra charges for additional people or pets.
According to the 2019 HCD income limits (Table H-23), a very low-income household
of four could afford up to $788 a month for rent. If this household lived in a three-
bedroom unit in Morro Bay, according to the rental survey, rental rates would range
from $2,200 and $3,500. A household of four people earning 50 percent of the area
median income (i.e. very-low income) would need to allocate over 60 percent of their
gross income to be able to afford the rent for the least expensive three-bedroom unit
in Morro Bay. This indicates a need for more affordable housing for households in the
extremely low-, very low-, and low-income ranges in the city.
Housing Affordability by Income Level
Housing affordability can be inferred by comparing the cost of renting or owning a
home with the recommended total housing costs per best practices (e.g. typically in
the range of 30-35% of gross income) for each income level. The area median income
provides a benchmark for determining the affordability of housing which can be
applied to each income range. This information generally demonstrates who can afford
what size and type of housing (i.e. condo, single family home, mobile home, other) and
indicates the household income levels most likely to look for a solution , such as home-
sharing or living in a smaller housing unit to address the lack of affordability in local
housing opportunities.
In evaluating affordability, the maximum affordable price refers to the amount that
could be afforded by households in the upper range of their respective income
category. Households in the lower end of each category can afford less in comparison.
The maximum affordable home and monthly rental prices for residents of San Luis
Obispo County are shown in Table H-23. Income limits are only availabile at the
countywide, not the city level. The affordability of the county’s housing stock for each
income group is discussed below. HCD has identified the 2019 county area median
income to be $87,500 for a household with four people.
Table H-23 shows the maximum rents and sales prices that are affordable to extremely
low-, very low-, low-, moderate-, and above moderate-income households.
Affordability is based on the following assumptions: a household spending 30 percent
or less of their total household income for shelter; the maximum household income
levels established by the US Department of Housing and Urban Development (HUD)
and HCD; and maximum affordable sales prices based on either a 5 (for below
moderate-income households) or 20 percent down (for moderate income households)
with a 30-year fixed-rate mortgage at a 3.7 percent annual interest rate.
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3-46 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint Housing Affordability by Income Level
Household Size 1 2 3 4 5 6
Extremely Low Income (Households at 30% of Median Income)
Annual Income $18,900 $21,600 $24,300 $26,950 $30,170 $34,590
Maximum Monthly
Gross Rent1 $473 $540 $608 $674 $754 $865
Maximum Purchase
Price2
$57,212 $70,781 $83,850 $96,628 $112,253 $133,686
Very Low Income (Households at 50% of Median Income)
Annual Income $31,500 $36,000 $40,500 $44,950 $48,550 $52,150
Maximum Monthly
Gross Rent1 $788 $900 $1,013 $1,124 $1,214 $1,304
Maximum
Purchase Price2
$118,700 $140,482 $162,263 $183,812 $201,237 $218,662
Low Income (Households at 80% of Median Income)
Annual Income $50,350 $57,550 $64,750 $71,900 $77,700 $82,800
Maximum Monthly
Gross Rent1 $1,259 $1,439 $1,619 $1,798 $1,943 $2,070
Maximum Purchase
Price2
$209,950 $244,800 $279,650 $314,268 $342,323 $367,008
Moderate Income (Households at 120% of Median Income)
Annual Income $73,500 $84,000 $94,500 $105,000 $113,400 $121,800
Maximum Monthly Gross Rent1 $1,838 $2,100 $2,363 $2,625 $2,835 $3,045
Maximum
Purchase Price2
$385,579 $446,438 $507,298 $568,158 $616,845 $665,533
Source: 2019 Income Limits: Department of Housing and Community Development. Monthly mortgage calculation: https://www.zillow.com/mortgage-calculator/house-affordability/ 1 Affordable monthly housing cost for renter-occupied households assumes 30% of gross household income, not including utility cost.
2 Affordable housing sales prices are based on the following assumed variables: 5% down payment for below moderate-income households and 20% down payment for moderate-income households, 30-year fixed-rate mortgage at 3.7% annual interest rate.
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Blueprint Overpayment
Overpayment compares the total housing cost for a household to the ability of that
household to pay. Specifically, overpayment is defined as monthly housing costs in
excess of 30 percent of a household’s income. Housing cost is defined as the monthly
owner costs (mortgages, deed of trust, contracts to purchase or similar debts on the
property and taxes, insurance on the property, and utilities) or the gross rent (contract
rent plus the estimated average monthly cost of utilities).
Table H-24 shows whether occupied housing units (households) are overpaying for
housing cost by their income category and to what extent.
As of 2015, 44 percent of all households were overpaying based on their income
categories, and 73 percent of these overpaying households are in the low-, very low-,
or extremely low–income category.
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3-48 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint Total Household Overpayment by Income, 2015
Total Household Characteristics Number Percentage of Total Households
Total occupied units (households) 4,930 100%
Total renter households 2,610 52.9%
Total owner households 2,320 47.1%
Total lower-income (0–80% of HUD Area Median
Family Income (HAMFI) households 2,330 47.3%
Lower-income renters 1,610 32.7%
Lower-income owners 720 14.6%
Extremely low-income renters 585 11.9%
Extremely low-income owners 110 2.2%
Lower-income households severely overpaying (paying
more than 50%) 890 18.1%
Lower-income renter households severely
overpaying 720 14.6%
Lower-income owner households severely
overpaying 170 3.4%
Extremely low income (ELI) (0–30% of HAMFI) 445 9.0%
ELI renter households severely overpaying 370 7.5%
ELI owner households severely overpaying 75 1.5%
Lower-income households overpaying (paying more than 30%) 1,595 32.4%
Lower-income renter households overpaying 1,260 25.6%
Lower-income owner households overpaying 335 6.8%
Total households overpaying 2,189 44.4%
Total renter households overpaying 1,389 28.2%
Total owner households overpaying 800 16.2%
Source: 2011-2015 CHAS (HCD SLO County Housing Element Update Data Profile)
The Comprehensive Housing Affordability Strategy (CHAS) was developed by HUD to
assist jurisdictions with writing their HUD required consolidated plans. According to
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City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-49
Blueprint this data (Table H-25), there were 575 owner households and 675 renter households
earning less than 50 percent of the median family income (MFI) in the city in 2016.
Approximately 46 percent of these lower-income renter-occupied households were
identified as having at least one of four housing problems—incomplete kitchen
facilities, incomplete plumbing facilities, more than one person per room, and a cost
burden greater than 30 percent. Approximately 43 percent of lower-income owner-
occupied households also experienced at least one of these four housing problems. It
is important to note that, similar to ACS data, the CHAS dataset uses small samples
and is subject to large margins of error; it therefore may have totals and percentages
that are slightly different than other data sources used in this document.
Housing Problems for All Households, 2016
Total Renters Total Owners Total Households
Household Income ≤30% MFI 390 340 730
Household Income >30% to
≤50% MFI 285 235 520
% Households (≤50% MFI) with
any housing problems 46% 43% 25%
Source: 2012-2016 CHAS (ACS)
Special Needs Groups
Special Needs Groups are households and individuals who have greater difficulty
finding suitable, affordable housing due to their special circumstances, which may
include, but not be limited to: seniors, persons with disabilities (including those with
developmental disabilities), large households, single-parent households (female-
headed households with children, in particular), homeless persons, and agricultural
workers. This section discusses the housing challenges for several of the special needs
groups. Also included is a discussion about programs and services available to address
their housing challenges.
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Blueprint Persons with Disabilities
Table H-26 shows the 2012-2016 American Community Survey information regarding
noninstitutionalized people in Morro Bay who have disabilities that either prevent
them from working or make self-care or mobility difficult. In Morro Bay, 54 percent of
individuals with a disability are also seniors (i.e. 65 years old and older).
Persons with a Disability by Disability Type, 2012–2016
Number Percentage 1
Total Disabled person from survey data 1,334 100%
Disability types for people for Ages 5–64 (note: some people have more than one disability type) 620 46%
Hearing Difficulty 157 12%
Vision Difficulty 60 4%
Cognitive Difficulty 326 24%
Ambulatory Difficulty 217 16%
Self-Care Difficulty 78 6%
Independent Living Difficulty 136 10%
Disability types for persons Ages 65 and Over (note: some people have more than one disability type) 714 54%
Hearing Difficulty 323 24%
Vision Difficulty 151 11%
Cognitive Difficulty 190 14%
Ambulatory Difficulty 480 36%
Self-Care Difficulty 122 9%
Independent Living Difficulty 240 18%
Source: ACS S1810 (2013-2017) (HCD SLO County Housing Element Update Data Profile)
1 Percentages will not sum to a total 100% because some people have multiple disabilities and are therefore counted multiple times.
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Blueprint There are many housing challenges for disabled persons, two of the major housing
problems are: (1) the need for housing that meets particular physical needs (wheelchair
accessible, etc.) and (2) affordability. Because of limited job opportunities for the
handicapped and disabled, their incomes are often below the median income. Table
H-27 identifies the employment status of disabled persons in the city.
Persons with a Disability by Employment Status
Employment Status Number Percentage
Total 6,042 100%
In the labor force: 4,415 73%
Employed: 4,152 69%
With a disability 331 5%
No disability 3,821 63%
Unemployed: 263 4%
With a disability 12 0.2%
No disability 251 4%
Not in the labor force: 1627 27%
With a disability 196 3%
No disability 1431 24%
Source: ACS 2013-2017 (HCD SLO County Housing Element Update Data Profile)
The residents of Morro Bay who have a physical disability have varying housing needs..
Typical improvements to improve accessibility and function for a physically disabled
person may include, but not be limited to: wheelchair ramps, elevators or lifts,
increased doorway widths, reduced heights for thresholds, accessible cabinets, and
modified fixtures and appliances. Proximity to goods, services and easy access to
public transportation are also helpful in removing barriers and improving
independence.
If the physical disability prevents the individual from working or limits income, the cost
of housing and needed modification can be significant. Because physical handicaps
vary, this group rarely congregates toward a single service organization. This makes it
difficult to estimate the number of individuals and specific needs.
The housing challenges and needs for a person with mental heath disabilities typically
will include affordability, location, proximity to goods and services and proximity to
mental health care services and supportive services as well as employment
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3-52 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint opportunities. Many people with mental health issues prefer to live independently,
but need appropriate and affordable housing opportunities.
Disabled seniors often fall into one or both of the above categories. Many elderly have
some minor physical limitations such as the inability to climb stairs In other cases,
seniors may have difficulty cooking, safely operating kitchen equipment or need
assistance with activities of daily living, medication reminders or management. There
are a variety of senior care facilities available that can meet the needs of many of these
individuals.
Persons with Developmental Disabilities
Senate Bill (SB) 812 requires the City to include in the special housing needs analysis
the needs of individuals in the community with developmental disabilities . According
to Section 4512 of the Welfare and Institutions Code, a “developmental disability”
means a disability that originates before an individual attains age 18 years; continues,
or can be expected to continue, indefinitely; and constitutes a substantial disability for
that individual.
Many developmentally disabled persons are capable and prefer living and working
independently in a home or apartment, whereas some disabled individuals function
better in a group living environment with supportive services.
The California Department of Developmental Services currently provides community-
based services to approximately 243,000 persons with developmental disabilities and
their families through a statewide system of 21 regional centers, 4 developmental
centers, and 2 community-based facilities. The Tri-Counties Regional Center is one of
21 regional centers in California that provides a point of entry to services for people
with developmental disabilities in San Luis Obispo county with offices in Atascadero
and San Luis Obispo. The center is a private, nonprofit community agency that
contracts with local businesses to offer a wide range of services to individuals with
developmental disabilities and their families. Table H-28 provides information about
Morro Bay’s population of developmentally disabled persons; Table H-29 provides
information about those persons’ places of residence.
Developmentally Disabled Residents by Age
Zip Code 0–17 Years
18
Years Total
93442 40 49 89
Source: HCD SLO County Housing Element Updated Data Profile 2019
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Blueprint Developmentally Disabled Residents by Residence Type
Zip Code Community Care Home Parent/ Guardian
Independent
Living Other Total
93442 ±9 59 21 ±9 89
Source: HCD SLO County Housing Element Updated Data Profile 2019
A number of housing options are helpful to people with a development disability: rent-
subsidized homes/apartments (i.e Housing Choice Vouchers (Section 8 program
though HCD), licensed supportive housing in single-family homes and unlicensed
single-family homes, affordable housing as part of the inclusionary housing
requirements, which include homes/apartments for rent or for sale, federally
subsidized housing such as HUD or LIHTC, and SB 962 homes, which are granted
streamlined permitting and funding provisions for adult residential facilites for people
with special health care needs. The design of housing-accessibility modifications, the
proximity to services and transit, and the availability of group living opportunities
represent some of the considerations that are important in serving this special needs
group. Incorporating “barrier-free” design in all new multifamily housing (as required
by California and federal fair housing laws) is especially important to provide the widest
range of choices for disabled residents. Special consideration should also be given to
the affordability of housing, as people with disabilities may be living on a fixed income.
To assist in the housing needs in Morro Bay for people with special housing needs
related to their developmental disabilities, the City will implement programs to
coordinate with Tri-Counties Regional Center to help with outreach to this population
with updates regarding available/appropriate housing and will continue to encourage
and require, through the inclusionary housing program, that developers designate a
portion of new affordable housing developments for persons with disabilities,
including persons with developmental disabilities. The City will also continue to pursue
local funding sources designated for providing housing for persons with special needs
and disabilities. Implementation Action H-3.1.2 is proposed to specifically address the
needs of the developmentally disabled.
Elderly
Analysis of the housing needs of the elderly is important because: (1) many elderly
have fixed, limited incomes, (2) many elderly persons are “over-housed” (living alone
in a three- or four- bedroom house), and (3) because some elderly have mobility and
health problems that can create special housing requirements.
Table H-30 shows the population of residents aged 65 and older in Morro Bay in 2010
and 2017. Table H-31 illustrates the tenure of senior households in the city.
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Blueprint Approximately 74 percent of senior-headed households own the home they live in.
The senior population numbers and the percentage they make up of the city’s overall
population increased by 4 percent between 2010 and 2017.
Senior Residents, 2010–2017
Age Category 2010 2017
Number Percentage Number Percentage
65+ 2,425 24% 2,929 28%
Total Population 10,234 100% 10,568 100%
Source: US Census 2010 and ACS 2013–2017 Five-Year Estimates (HCD SLO County Housing Element Update Data Profile)
Senior-Headed Households by Tenure, 2017
Age of Householder Number Percentage
Owner-occupied senior household 1,435 74%
Householder 65 to 74 years (owner-occupied) 746 38%
Householder 75 to 84 years (owner-occupied) 484 25%
Householder 85 years and over (owner-
occupied) 205 11%
Renter-occupied senior household 505 26%
Householder 65 to 74 years (renter-occupied) 321 17%
Householder 75 to 84 years (renter-occupied) 87 4%
Householder 85 years and over (renter-occupied) 97 5%
Total 1,940 100%
Source: ACS 2013–2017 Estimates (HCD SLO County Housing Element Update Data Profile)
To address the needs of seniors in the community, the City will implement
Implementation Action H-3.1.1 to utilize Community Development Block Grants
(CDBG) and other state or federal monies to assist in the development of lower-income
senior rentals.
Farmworkers
The 2013–2017 ACS Five-Year Estimates identified 48 residents of Morro Bay employed
in agriculture, forestry, fishing and hunting, or mining operations (see Table H-6).
3G - Housing
City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-55
Blueprint According to the 2017 US Department of Agriculture (USDA) Agricultural Census, there
are 11,416 farmworkers across 879 farms in San Luis Obispo County. Out of 588 farms
in the county, there are 6,681 farmers who work fewer than 150 days. HCD reports that
there are 83 farmworker housing units provided under farm worker grant programs in
the county. Of the farmworkers living in the four farmworker employee housing
facilities, 79 are permanent farmworkers and 16 are seasonal.
Large Households
Large households (those consisting of five or more persons) present special housing
needs and may be overcrowded if they cannot find affordable and adequately sized
housing units. As identified in Table H-12, above, 293 households (approximately 6
percent of all households) in Morro Bay were occupied by five or more persons—of
these, 238 were owner-occupied households and 55 were renter-occupied households.
From 2011 to 2017, the number of large households increased significantly, from 113
to 293, and the number of owner-occupied households increased significantly, from
39 to 238. Thus, housing for large families appears to have improved since 2011.
Single Parent-Headed Households
Single parent-headed households (in particular female-headed households)
experience numerous housing problems, including affordability, overcrowding (from a
disparity between income level and size of affordable housing units), insufficient
housing choices, and discrimination. The City of Morro Bay recognizes these problems
and has included policies and programs in this document to address affordability,
overcrowding, and discrimination for all segments of the population.
Table H-32 shows the number of family households that are headed by a female with
no husband present. Female-headed households with no husband present account for
12 percent of all households in the city. The table also reports the presence of children
in female-headed households, as well as poverty indicators for female-headed
households. Female-headed households with their own children make up
approximately 7 percent of all households in the city (as shown in the table) and 58
percent of the female-headed households.
3G – Housing
3-56 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint Female-Headed Households
Number
Percentage of
Householders
Female-Headed Households 311 12%
Female Heads with Children 181 7%
Female Heads without Children 130 5%
Total Households 2,627 100%
Female-Headed Households below Poverty Level 58 2%
Total Households below the Poverty Level 184 7%
Source: ACS 2013–2017 Five-Year Estimates (HCD SLO County Housing Element Update Data Prof ile)
Homeless
According to HUD’s 2018 Continuum of Care Homeless Assistance Programs (as
provided by the HCD SLO County Housing Element Update Data Profile), the County
of San Luis Obispo has approximately 1,066 homeless persons (Table H -33). Of
these homeless persons, approximately 102 are in families with at least one child.
The homeless population is mostly unsheltered (do not have a place intended for
human habitation to spend the night and sleep in a car, park, street, etc.), with 25
percent of the 1,066 identified as sheltered. The 2019 Point-in-Time Count—part of the
San Luis Obispo County Homeless Census—reports that 92 persons were unsheltered and
2 persons were sheltered in Morro Bay.
Homelessness, San Luis Obispo County
Sheltered Unsheltered Total
Household without children 178 786 964
Household with at least one adult and one
child 89 13 102
Total Homeless Persons 1,066
Source: HUD 2018 (HCD SLO County Housing Element Update Data Profile)
The City supports the Community Resource Connections office, which provides
information and outreach to the homeless in Morro Bay. A group of seven volunteer
organizations provide weekly free dinners at the Vet’s Hall for low income and
homeless individuals. Regional services for the homeless include West Coast Housing
(AKA Chorro Creek Ranch), which serves the South County area that includes Morro
Bay and provides a range of services such as sheltering and meals. The Estero Bay
3G - Housing
City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-57
Blueprint Alliance for Care is an all-volunteer network of organizations and individuals dedicated
to enhancing the quality of life for local homeless and in-need citizens through
outreach, education, and liaison with appropriate agencies and organizations. The
CAPSLO emergency shelter and services center, located at 40 Prado Road in San Luis
Obispo, provides emergency shelter, on-site information and referral services, and
assistance in finding permanent housing. The People’s Kitchen; the Salvation Army
Homeless Outreach program; the Senior Nutrition program, which provides meals to
seniors over the age of 60 up to five times a week; and other programs offered by local
churches are also available. The City of San Luis Obispo is centrally located, and it is
appropriate that services for homeless individuals be located there. San Luis Obispo is
the county seat; many governmental social services can be received there. Additional
service providers include the El Camino Homeless Coalition in Atascadero, Loaves and
Fishes in Paso Robles, the 5 Cities Coalition in Arroyo Grande, and Transitional Food
and Shelter in the North County.
State or Federally Assisted Affordable Units
As shown in Table H-34, Morro Bay has five state and/or federally assisted housing
developments. They provide 115 affordable housing units. The City has used various
funding sources to provide affordable housing to residents, including Project Based
Section 8, Section 202, Section 515, and tax credits.
The Housing Authority of San Luis Obispo (HASLO) reported that as of January 2020,
97 Section 8 vouchers were being used in Morro Bay. HASLO also reported that due
to high demand and not enough housing accepting Section 8, the waitlist for Section
8 vouchers has been closed since November 2018. State law changed January 1, 2020
and now requires all landlords to accept Section 8 Housing Choice Vouchers. Moving
forward the change to the law may impact the availability of vouchers in Morro Bay.
3G – Housing
3-58 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint Inventory of Assisted Units
Projects Total Units Affordable Assisted Units Type
Funding
Source Earliest Date of Conversion
Ocean View Manor 40 39 Senior Section 202 2069
Pacific View
Apartments 26 25 Family USDA Section 515 2041
Oceanside Garden
Apartments 21 21 Senior Tax Credits 2050
Sequoia Street
Apartments 11 10 Large
Family Tax Credits 2053
Morro Del Mar Senior Apartments 21 20 Senior Tax Credits 2068
Total 119 115 — — —
Source: HCD SLO Housing Element Update Data Profile 2019 and California Housing Partnership Corporation (CHPC), 2019
At-Risk Units
California housing element law requires all jurisdictions to include a study of all state
and/or federally assisted low-income housing units that may at some future time be
lost to the affordable inventory by the expiration of some type of affordability
restrictions. The law requires that the analysis and study cover a 10-year period
beginning at the start of the Housing Element planning period, that is, December 31,
2020, through December 31, 2030.
At-risk units are financially subsidized low-income housing projects that may be at risk
for conversion to market-rate because they are nearing the end of their subsidized
contract. Such units are deemed “at risk” of being lost as affordable housing. Currently,
no subsidized housing units are considered at risk of converting to market-rate units
within 10 years of the beginning of this Housing Element planning period. However,
Implementation Action H-2.1.6 states that the City will maintain a list of all dwellings
in the city that are subsidized by government funding or low-income housing
developed through local regulations or incentives, and that the City will contact all
property owners and notify them of the legal requirements to provide notice prior to
the conversion of any units for lower-income households to market-rate units.
3G - Housing
City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-59
Blueprint ADEQUATE SITES INVENTORY
SLOCOG is responsible for developing the Regional Housing Needs Allocation (RHNA),
which assigns a share of the region’s future housing need to each jurisdiction in the
region. State law requires jurisdictions to demonstrate that “adequate sites” will be
made available over the planning period (2020–2028) to facilitate and encourage a
sufficient level of new housing production. Jurisdictions must also demonstrate that
appropriate zoning and development standards, as well as services and facilities, will
be in place to facilitate and encourage housing. The Housing Element must inventory
land suitable for residential development, including vacant and underutilized sites, and
analyze the relationship of zoning and public facilities and services to these sites.
In complying with the adequate site requirement, jurisdictions can include the number
of new units built during the RHNA projection period of 2019–2028 toward the RHNA
allocation. This includes new housing units either built or issued planning entitlements
since December 31, 2018.
Regional Housing Needs Allocation
An important component of the Housing Element is the identification of sites for future
housing development and evaluation of the adequacy of these sites in fulfilling Morro
Bay’s share of the RHNA, as determined by SLOCOG. The RHNA is a projection of
additional housing units needed to accommodate projected household growth of all
income levels throughout the Housing Element projection period. The intent of the
RHNA is to ensure that local jurisdictions address their fair share of the housing need
determined for the entire region. The RHNA allows communities to anticipate housing
needs so that communities can grow in ways that can enhance quality of life, improve
access to jobs, promote transportation mobility, and address social equity and fair-
share housing needs. The RHNA jurisdictional allocations are made to ensure that
adequate sites and zoning are identified to address existing and anticipated housing
demands during the projection period and that market forces are not inhibited in
addressing the housing needs for all facets of a particular community. Table H-35
provides the RHNA target for the 10-year projection period from 2019 to 2028.
3G – Housing
3-60 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint Morro Bay Regional Housing Needs Allocation Progress
Income Level RHNA
Units Approved or Built Since December
31, 2018 Remaining RHNA
Extremely Low 48 0 48
Very Low 49 0 49
Low 60 461, 3 14
Moderate 70 162 54
Above Moderate 164 14 150
Total 391 76 315
Source: SLOCOG 2019; City of Morro Bay 2019
Notes: 1. Accessory dwelling unit (ADU) building permits. Half of all ADU permits are counted as low-income units and half as moderate-income units based on analysis conducted in the San Luis Obispo County Accessory Dwelling Unit Study, 2019.
2. Deed restricted moderate income units resulting from City’s inclusionary housing regulations (4) and ADU building permits (12). Half of all ADU permits are counted as low-income units and half as moderate-income units based on analysis conducted in the San Luis Obispo County Accessory Dwelling Unit Study, 2019.
3. Deed restricted units as part of 35 unit HASLO project approved in 2019. The 35 units will be deed-restricted for low-income or lower income categories. Approved project will have 1, 2, and 3 bedroom units.
Based on the SLOCOG Final RHNA Plan, the City of Morro Bay will need to allow for
157 housing units affordable to lower-income households to comply with the City’s
regional allocation targets for these income levels. In addition, the City will need to
allow for 70 housing units available to moderate-income households. A total of 391
new housing units have been allocated by HCD and SLOCOG for the City of Morro Bay
from 2019 through 2028.
As of September 2020, there have been 76 housing units constructed or approved
since the beginning of the projection period. As a result, the City will need to
accommodate an additional 315 housing units to meet Morro Bay’s 2019–2028 RHNA.
However, when considering projected ADU development sites inventory capacity, the
City expects to be able to accommodate the remaining RHNA. See Table H-36 for a
complete list of available sites to meet the City’s 2019–2028 RHNA. ADU potential is
analyzed later in this section.
Land Availability
This section provides the inventory of vacant land that is available in Morro Bay for
both multifamily and single-family residential development. Table H-36 provides the
number of acres, zoning, unit potential, and availability of infrastructure for all vacant
3G - Housing
City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-61
Blueprint acreage not approved for pending projects in Morro Bay. One underutilized site is also
included in the inventory. All sites listed in Table H-36 have no known constraints
related to infrastructure or environmental conditions. If a site includes environmentally
sensitive habitat areas (ESHA) or is within a certain distance of ESHA those areas must
be treated with extra sensitivity and in some case must be developed around. These
regulations are included in the City’s Local Coastal Program. The realistic capacity of
the sites included in the vacant land inventory takes ESHA considerations into account.
The City is currently updating its local coastal program and coastal land use plan
including comprehensive updates of the general plan and zoning ordinance
(combined known as Plan Morro Bay). It is anticipated that those updates will
encourage and allow residential development in more areas of the City. Details about
those other areas can be found in Draft Plan Morro Bay.
Realistic Capacity of Sites
The zoning districts and General Plan land use designations are shown for each site
and are used to determine the realistic unit capacity of each site. Realistic capacity was
determined by multiplying the number of acres by the maximum allowed density for
the site, and then taking 80 percent of that result as the final realistic unit number to
account for site and regulatory constraints. The capacity for the 10 mixed-use sites
included in the inventory was determined by taking 80 percent of the total site acreage,
multiplying the acreage by the maximum density for the site, and then taking 80
percent of that number to determine the realistic unit number.
Small Sites
A majority of the vacant parcels that allow up to 27 units per acre are less than a half
acre in size, and it can be difficult to build multifamily, lower-income housing on
smaller sites. However, recent trends show that multifamily housing development is
occurring on sites of less than one-half acre. Recent multi-family projects on smaller
sites include Morro Mist and Black Hill Villas. Each has included some moderate-
income units.
For the sites listed in Table H-36, the sites with map IDs from 1 to 4, 5 to 6, 8 to 10,
and 33 to 34 are contiguous. Of the total units the City assumes can be developed on
high-density land (326 units), 93 units (29%) are assumed to be accommodated on
sites that have potential for lot consolidation into larger sites more feasible for
development of affordable housing. To help facilitate the development of affordable
housing on smaller lots, the City has included Implementation Action H-1.1.2 to assist
in the consolidation of small lots.
3G – Housing
3-62 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint Figures H-3.a. and b., the Land Inventory Map shows the location of each site and
Table H-36 provides the characteristics of the available sites for the development of
single-family homes and multifamily units.
3G - Housing
City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-63
Blueprint a. 2020 Site Inventory - North
3G – Housing
3-64 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint b.
2020 Site Inventory – South
3G – Housing
City of Morro Bay – General Plan / Local Coastal Plan
August 2020 3-65
Blueprint
Land Inventory
APN Acres Property Address Use Status Map ID # Zoning GP Designation
Maximum Allowed Density per acre
Realistic Unit Capacity Income Category Affordable To Water Sewer Internet Electricity Constraints Notes
066-075-017(24) 0.09 Kern Ave Vacant 1 R-4 High Density 27 1 Above Moderate Yes Yes Yes Yes None
066-075-017(25) 0.09 Kern Ave Vacant 2 R-4 High Density 27 1 Above Moderate Yes Yes Yes Yes None
066-075-017(26) 0.09 Kern Ave Vacant 3 R-4 High Density 27 1 Above Moderate Yes Yes Yes Yes None
066-075-017(27) 0.09 Kern Ave Vacant 4 R-4 High Density 27 1 Above Moderate Yes Yes Yes Yes None
068-231-016 0.57 Hwy 41 Vacant 5 R-4 (PD) High Density 27 8 Above Moderate Yes Yes Yes Yes None
068-231-043 0.46 Hwy 41 Vacant 6 R-4 (PD) High Density 27 7 Above Moderate Yes Yes Yes Yes None
068-323-028 0.34 Rockview St Vacant 7 R-4 (PD) High Density 27 4 Above Moderate Yes Yes Yes Yes None
068-381-014 0.14 Juniper Ave Vacant 8 R-1 Low-Medium
Density 7 1 Above Moderate Yes Yes Yes Yes None
068-381-008 0.14 2920 Juniper
Ave Vacant 9 R-1 Low-Medium
Density 7 1 Above Moderate Yes Yes Yes Yes None
068-381-015 0.14 2960 Juniper
Ave Vacant 10 R-1 Low-Medium
Density 7 1 Above Moderate Yes Yes Yes Yes None
068-391-001 0.14 Juniper Ave Vacant 11 R-1 Low-Medium
Density 7 1 Above Moderate Yes Yes Yes Yes None
068-391-002 0.14 Juniper Ave Vacant 12 R-1 Low-Medium
Density 7 1 Above Moderate Yes Yes Yes Yes None
068-257-004 0.16 Elena St Vacant 13 R-1/S.2A Low-Medium
Density 7 1 Above Moderate Yes Yes Yes Yes None
065-150-008 0.58 650 Sequoia
St Vacant 14 R-A Low Density 4 1 Above Moderate Yes Yes Yes Yes None
068-192-011 0.14 2900 Alder
Ave Vacant 15 R-4 High Density 27 2 Above Moderate Yes Yes Yes Yes None
068-351-061 0.51 Ponderosa St Vacant 16 R-4/SP Low Density 4 1 Above Moderate Yes Yes Yes Yes None
068-401-001 23.70 Little Morro
Creek Rd Vacant 17 R-A Low Density 4 75 Above Moderate Yes Yes Yes Yes None
3G – Housing
3-66 City of Morro Bay – General Plan / Local Coastal Plan
August 2020
Blueprint APN Acres Property Address Use Status Map ID # Zoning GP Designation
Maximum Allowed Density per acre
Realistic Unit Capacity Income Category Affordable To Water Sewer Internet Electricity Constraints Notes
068-411-007 45.52 South Bay
Blvd. Vacant 18 R-A (PD) Low Density 4 65 Above Moderate Yes Yes Yes Yes ESHA
065-150-015 0.46 670 Sequoia
Ct. Vacant 19 R-A Low Density 4 1 Above Moderate Yes Yes Yes Yes None
066-162-015 0.11 Kern Ave. Vacant 20 R-1 Low-Medium
Density 7 1 Above Moderate Yes Yes Yes Yes None
066-201-058 0.12 928 Pecho St. Vacant 21 R-1 Low-Medium
Density 7 1 Above Moderate Yes Yes Yes Yes None
066-203-032 0.06 469 Tulare
Ave. Vacant 22 R-1 Low-Medium
Density 7 1 Above Moderate Yes Yes Yes Yes None
066-206-010 0.14 1010 Carmel St. Vacant 23 R-1 Low-Medium Density 7 1 Above Moderate Yes Yes Yes Yes None
066-253-001 0.14 299 Palm Ave. Vacant 24 R-1 Low-Medium
Density 7 1 Above Moderate Yes Yes Yes Yes None
066-341-026 0.14 575 Acacia St. Vacant 25 R-1 Low-Medium
Density 7 1 Above Moderate Yes Yes Yes Yes None
066-342-018 0.19 Olive St. Vacant 26 R-1 Low-Medium
Density 7 1 Above Moderate Yes Yes Yes Yes None
068-198-026 0.03 Hemlock Ave. Vacant 27 R-1 Medium Density 7 1 Above Moderate Yes Yes Yes Yes None
068-340-012 0.17 Ironwood Ct. Vacant 28 R-1 Low-Medium
Density 7 1 Above Moderate Yes Yes Yes Yes None
068-340-013 0.19 Ironwood Ct. Vacant 29 R-1 Low-Medium
Density 7 1 Above Moderate Yes Yes Yes Yes None
068-382-022 0.14 Ironwood Ave. Vacant 30 R-1 Low-Medium
Density 7 1 Above Moderate Yes Yes Yes Yes None
068-382-023 0.14 Ironwood Ave. Vacant 31 R-1 Low-Medium
Density 7 1 Above Moderate Yes Yes Yes Yes None
068-383-013 0.15 2940 Hemlock Ave. Vacant 32 R-1 Low-Medium
Density 7 1 Above Moderate Yes Yes Yes Yes None
068-391-005 0.14 2850 Juniper
Ave. Vacant 33 R-1 Low-Medium
Density 7 1 Above Moderate Yes Yes Yes Yes None
068-391-007 0.14 Juniper Ave. Vacant 34 R-1 Low-Medium Density 7 1 Above Moderate Yes Yes Yes Yes None
3G – Housing
City of Morro Bay – General Plan / Local Coastal Plan
August 2020 3-67
Blueprint APN Acres Property Address Use Status Map ID # Zoning GP Designation
Maximum Allowed Density per acre
Realistic Unit Capacity Income Category Affordable To Water Sewer Internet Electricity Constraints Notes
068-391-009 0.14 Juniper Ave. Vacant 35 R-1 Low-Medium
Density 7 1 Above Moderate Yes Yes Yes Yes None
065-034-002 0.06 508 Blanca St. Vacant 36 R-1/S.1 Medium Density 7 1 Above Moderate Yes Yes Yes Yes None
065-034-012 0.06 Dawson St. Vacant 37 R-1/S.1 Medium Density 7 1 Above Moderate Yes Yes Yes Yes None
065-034-013 0.05 Dawson St. Vacant 38 R-1/S.1 Medium Density 7 1 Above Moderate Yes Yes Yes Yes None
065-034-039 0.06 Blanca St. Vacant 39 R-1/S.1 Medium Density 7 1 Above Moderate Yes Yes Yes Yes None
065-034-040 0.06 Blanca St. Vacant 40 R-1/S.1 Medium Density 7 1 Above Moderate Yes Yes Yes Yes None
065-035-003 0.06 512 Dawson
St. Vacant 41 R-1/S.1 Medium Density 7 1 Above Moderate Yes Yes Yes Yes None
065-035-018 0.06 563 Zanzibar
St. Vacant 42 R-1/S.1 Medium Density 7 1 Above Moderate Yes Yes Yes Yes None
065-035-029 0.05 554 Dawson
St. Vacant 43 R-1/S.1 Medium Density 7 1 Above Moderate Yes Yes Yes Yes None
065-036-006 0.07 550 Zanzibar St. Vacant 44 R-1/S.1 Medium Density 7 1 Above Moderate Yes Yes Yes Yes None
065-052-032 0.06 Orcas St. Vacant 45 R-1/S.1 Medium Density 7 1 Above Moderate Yes Yes Yes Yes None
065-055-006 0.06 Rennell St. Vacant 46 R-1/S.1 Medium Density 7 1 Above Moderate Yes Yes Yes Yes None
065-055-043 0.06 471 Panay St. Vacant 47 R-1/S.1 Medium Density 7 1 Above Moderate Yes Yes Yes Yes None
Low Density Subtotals 76.36 202
066-134-016 0.20 Morro Ave Vacant 48 R-2/PD/S.4 Low-Medium Density 15 1 Moderate Yes Yes Yes Yes None
068-321-007 0.24 Sunset Ct Vacant 49 R-2 Low-Medium
Density 15 2 Moderate Yes Yes Yes Yes None
3G – Housing
3-68 City of Morro Bay – General Plan / Local Coastal Plan
August 2020
Blueprint APN Acres Property Address Use Status Map ID # Zoning GP Designation
Maximum Allowed Density per acre
Realistic Unit Capacity Income Category Affordable To Water Sewer Internet Electricity Constraints Notes
066-021-040 0.10 1232 Scott St. Vacant 50 R-2 Low-Medium
Density 15 1 Moderate Yes Yes Yes Yes None
066-182-018 0.15 Napa Ave. Vacant 51 R-2 Medium Density 15 2 Moderate Yes Yes Yes Yes None
066-024-011 0.14 1178 Morro
Ave. Vacant 52 R-2 Low-Medium
Density 15 2 Moderate Yes Yes Yes Yes None
066-186-015 0.14 457 Piney Way Vacant 53 R-2 Medium Density 15 2 Moderate Yes Yes Yes Yes None
066-191-017 0.14 485 Piney Way Vacant 54 R-2 Medium Density 15 2 Moderate Yes Yes Yes Yes None
068-311-008 0.15 Bayview Ave. Vacant 55 R-2 Medium Density 15 2 Moderate Yes Yes Yes Yes None
065-038-001 10.06 3300
Panorama Dr
Non-
Vacant 56 R-1/PD Medium Density 7 45 Moderate Yes Yes Yes Yes Slopes/
ESHA
Medium
Density
Subtotals
11.32 59
065-149-001 9.96 3060 Main St Vacant 57 R-3 (PD) High Density 27 215 Extremely Low,
Very Low or Low Yes Yes Yes Yes ESHA
The site includes a
designated ESHA area on
the northern boundary
along a creek. However, a
proposed development
could be designed to use
that area as the required
open space for the project
which should result in very
little density lost from this
constraint. The same realistic number of units could be
accommodated.
High Density Subtotals 9.96 145
Grand Totals 97.64 406
3G – Housing
City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-69
Blueprint Nonvacant Site
The approximately 10 acre parcel at 3300 Panorama Drive has recently become a
realistic future opportunity site for development of housing during the projection
period. The site was formerly used by the US Navy for storage of jet fuel in two large
tanks together with several accessory buildings. The property was declared surplus
and sold to the current property owner who through City and other state and local
jurisdictional issued permits, removed the jet fuel tanks and some of the smaller
accessory buildings. The tank removal work is complete and the property owner is
working to get final clearance from all involved agencies confirming that the work is
complete. The site is zone residential (R-1) and is on the easterly side of an existing
residential neighborhood, primarily zoned R-1 but with pre-existing small lot sizes.
Once the site receives final approval from County Environmental Health, it would be
available for residential development.
Accessory Dwelling Units
The City anticipates that 207 new accessory dwelling units (ADUs) will be constructed
during the remainder of the RHNA projection period through December 31, 2028
(during the years 2020 through 2028). This assumption is based on the 23 ADUs
permitted and constructed during 2019 projected out through 2028. In the fall 2019,
the County conducted a countywide market study of ADUs which included all the
cities, unincorporated communities and remote residential development within the
county. The market study found that ADUs currently available for rent in San Luis
Obispo County are affordable to a variety of income groups and household sizes. In
addition, based on an accessory dwelling unit study conducted by UC Berkeley’s Center
for Community Innovation (Chapple et al., 2017), 40 percent of ADUs are typically
rented to family members or friends at either no cost or below market rate rental rates.
Based on the combination of the market study and the Chapple industry research, of
the 207 ADU’s projected to be built in Morro Bay between 2020 and 2028, 103 (~50
percent) are anticipated to be affordable to low income households, and 104 (~50
percent) will be affordable to moderate income. The 23 ADU’s approved or constructed
in 2019 and the 207 ADUs projected to occur in the period 2020-2028, are accounted
for in Table H-37, and their affordability assumptions in that table are based on the
County’s ADU market study.
Table H-37 compares the City of Morro Bay’s RHNA to the site inventory capacity.
Including the credit of ADUs permitteds, projected ADU development, and the site
inventory capacity, the City has a surplus of 137 units available to extremely low-, very
low-, and low-income households; 109 units available to moderate-income
households; and 52 units available to above moderate-income households—a total
surplus of 298 units.
3G – Housing
3-70 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint Meeting Regional Housing Need Allocation
Income Group
Total RHNA to Morro Bay
Units Approved
or Constructed since December 31, 2018
ADUs Approved
or Constructed since December 31, 2018 Projected ADUs2
Vacant Site Inventory Capacity
Non-Vacant Site Inventory Capacity RHNA Surplus
Extremely
Low 481 0 0 0
1453 0 102 Very Low 49 0 0 0
Low 60 0 11 103
Moderate 70 4 12 104 15 45 109
Above Moderate 164 14 0 0 202 0 52
Total 391 18 23 207 361 45
Source: SLOCOG 2019; City of Morro Bay 2019
Notes: 1. The extremely low income RHNA objective was derived using the accepted HCD methodology of taking 50 percent of the very low income RHNA number and moving it to the extremely low category
2. As discussed on the page 3-55 ADUs are projected based on trends in ADU approval and construction during 2019, the countywide ADU market study and other industry research on affordability of ADUs.
3. Sites allo wing up to 27 dwellings per acre that are greater than 0.5 acre and less than 10 acres in size are included to address the lower-income RHNA which combines Extremely Low, Very Low and Low Income.
Infrastructure
Water
The City’s 2018 OneWater Morro Bay Plan states that the City has relied on four sources of water—groundwater pumped from the Chorro and Morro basins; the reverse osmosis/desalinization plant; and the primary source since late 1996, the State Water Project—to meet its water needs. Based on Council direction when adopting the City’s OneWater Plan, the City will be divesting from the Chorro Valley and seawater desalinization water sources. Therefore, The City is developing a replacement water supply source by means of a new advanced wastewater treatment facility with the ability to produce recycled water for (indirect) potable use. The historic statewide drought of 2014 placed stress on the traditionally reliable water sources. For example, on January 31, 2014, San Luis Obispo County staff informed the State Water Project subcontractors that the allocation for 2014 was at zero percent, and only stored water was available to meet delivery requests. The City has seen a significant drop in water use since then, which is attributable to water conservation associated with state mandates and local efforts to conserve during dry years.
3G – Housing
City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-71
Blueprint The City of Morro Bay has a contract with San Luis Obispo Flood Control and Water Conservation District for 1,313 acre-feet per year of State Water Project water. Additionally, the City has contracted with the District for 2,290 acre-feet/year in ‘drought-buffer”. This drought buffer allows for full state water deliveries when allocations are as low as 35-percent.
The water conception and associated production trend has actually decreased as population increased over the past 20 years because of an aggressive water conservation program enacted by the City. In 1985, the City initiated a retrofit program that requires all new development to replace old water fixtures such as toilets and sinks with newer models that use less water. The program required that for every gallon of water needed by new development, two gallons must be saved through retrofitting. The City Council terminated the mandatory program in 2001 and replaced it with a voluntary rebate program that promotes water conservation by reimbursing owners for purchasing water-saving fixtures. The required offset program was reinstituted between 2014 and 2017 due to the extended drought conditions. The retrofit program has facilitated a decrease in the average consumption, which was at about 87 gallons per person per day as of 2016. This use rate is quite low compared to San Luis Obispo County as a whole.
The City of Morro Bay updated its Urban Water Management Plan in 2016, which identifies resources and establishes priorities for long-term water supply, and obtained certification from the California Department of Water Resources DWR). The Urban Water Management Plan specifically identifies the brackish-water treatment facility as part of the City’s future water portfolio. It is expected to provide up to 581 acre-feet of desalted brackish water from the Morro Creek groundwater basin per year to the City. With this water resource along with others identified, the plan concluded there is adequate water for the buildout of the city under the current General Plan. The City has sufficient water supply from a variety of sources to meet its buildout goals—the State Water Project, local groundwater sources, and the planned advanced wastewater treatment facility. There are times, such as when State Water Project water delivery is restricted, that the City has operational difficulty meeting its short-term water demands and requires water conservation, emergency exchange with the California Men’s Colony and other means such as building limitations in order to bridge these temporary water shortages.
From 1997 to 2016, water production decreased from 501 million gallons (mg) per year to 324 mg (~994 ac-ft/year). The City is committed to providing affordable and sustainable water to Morro Bay, and the Urban Water Management Plan outlined steps to be taken to ensure the acquisition of such resources. Of the eight measures highlighted by the plan, five represented specific projects to be completed (such as permit acquisition), and three are ongoing tasks (such as implementation of conservation programs). Since the adoption of the plan, all programs have been successfully implemented to fulfill the plan’s goals.
To comply with Senate Bill 1087, the City will immediately forward its adopted Housing Element to its water and wastewater providers so they can grant priority for service allocations to proposed developments that include units affordable to lower-income households.
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Blueprint Sewer
The City of Morro Bay currently jointly owns and operates the wastewater treatment plant (WWTP) with the Cayucos Sanitary District as discussed in the City’s water resources planning document (OneWater Morro Bay Plan (2018)). The existing WWTP is rated for an average dry weather flow of 2.06 million gallons per day (mgd) and a peak wet weather flow of 7.90 mgd. The City’s wastewater flow is projected to increase to 0.99 mgd in dry weather and 8.12 mgd in wet weather by 2040. Both the City of Morro Bay and the Cayucos Sanitary District are each in the process of designing and constructing their own individual new wastewater facilities serving each community.
With the construction of the City’s new advanced wastewater treatment facility, there will be adequate capacity through the year 2040 based on population estimates outlined in the OneWater Report; therefore, the City currently has capacity to meet the regional housing need. With the additional facility, there is the potential to add additional water into the City’s water supply portfolio through (indirect) potable ruse by groundwater recharge, or perhaps direct potable reuse of water once there has been a change in the regulatory environment and public perception.
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Blueprint CONSTRAINTS
Various interrelated factors can constrain the ability of the private and public sectors
to provide adequate housing and meet the housing needs for all economic segments
of the community. These factors can be divided into two categories: (1) governmental
and (2) nongovernmental constraints. Governmental constraints consist of the the
combination of land use requirements and restrictions, including required
environmental reviews for some areas, verification of development standards, the cost
of permits and development impact fees and the cost of the required infrastructure
for a proposed project. Nongovernmental constraints consist of land availability,
enviornmental constraints related to sensitive areas and/or interference with protected
species, land cost, land availability, construction costs, the availability of financing, and
the market conditions related to demand and the effects on future sales prices or rental
rates.
Analysis of Potential Governmental Constraints
Governmental constraints include restrictions or requirements that must be met for: land use, on-site and off-site development, building and housing codes. These requirements are reviewed through the review and permit processing for proposed developments and construction projects and involve: permit applications, fees and processing time for City review. The City implemented a new project tracking application in August of 2018. The City continues to work on internal process improvements and better communication with applicants to reduce permit processing timeframes.
Local Land Use Requirements
The California Coastal Act was established to balance landowners’ rights to develop
and the public’s right to enjoy the coastline. This resulted in an area defined as the
Coastal Zone and it is regulated to ensure orderly, long-range conservation, use, and
management of the natural, scenic, cultural, recreational, and manmade resources of
the coast. Nearly all of the city is located within the coastal zone, which results in
unique land and use regulations. In some areas of Morro Bay, building height
restrictions have been enacted to protect public views, and increased setback
requirements have been established to protect bluff areas along the coast or other
environmentally sensitive areas. Generally, the minimum parcel size limits, allowed
density, setback requirements, and height limits for residential uses are not prohibitive
to the development of housing.
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3-74 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint Plan Morro Bay
Plan Morro Bay is the City of Morro Bay’s draft updated General Plan and Local Coastal
Program (LCP) Land Use Plan (LUP). It presents a community vision for Morro Bay
through 2040. The update to Plan Morro Bay was initiated in 2016, and the City
anticipates adopting it in 2020. Plan Morro Bay includes updates to all of the City’s
General Plan elements aside from the Housing Element, which is being updated
separately for an eight year period (2020-2028). Plan Morro Bay also includes a
comprehensive Zoning Ordinance update. Plan Morro Bay updates include addressing
requirements of recent state laws regarding wildfire, hazards, and environmental
justice.
General Plan Designations
To provide for a wide range of existing land uses and to guide future development,
the City has established a series of land use classifications or categories. These
classifications describe the type and intensity of various land uses that make up the
city’s fabric and are the basis for the zoning districts established in the Municipal Code.
The land use classifications represent the integration of the Land Use Element of the
General Plan and the Local Coastal Program Land Use Plan. The information below is
based on the current adopted General Plan, Coastal Land Use Plan and Zoning
Ordinance.
Residential Land Uses
The City’s Coastal Land Use Plan Includes five residential land use categories that
provide for a wide range of densities. The purpose is to ensure that residential land is
developed to a density suitable to its location and physical characteristics.
Density ranges are as follows:
• Limited Density: up to 2 units per acre
• Low Density: up to 4 units per acre
• Low-Medium Density: 4 to 7 units per acre
• Medium Density: 7 to 15 units per acre
• High Density: 15 to 27 units per acre
Zoning Ordinance
The Zoning Ordinance provisions allow development on a wide variety of lot sizes in
the city all of which may allow development of affordable units within the development
standards of each zone. Table H-38 describes the zoning districts that allow residential
uses in the city.
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City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-75
Blueprint Zoning Districts That Allow Residential Uses
District Description
AG Agricultural
The purpose of this district is to provide for the continuation of agricultural uses in suitable areas and for supplemental
commercial uses which may be necessary to support such
continued agricultural activities. It is the intent of the City that it
will maintain the maximum amount of prime agricultural land in agricultural production to ensure the protection of the area’s
agricultural economy. This district allows one single-family house
per parcel. New development in this district shall also be sited and designed to protect and enhance scenic resources associated with the rural character of agricultural lands.
R-A Suburban
Residential
The purpose of this district is to permit estate lot homes and small-scale agricultural uses; to provide an area for people to have parcels of land larger than more typical single-family
residential lots, where livestock, poultry, and small animals
may be raised in limited number for home use or for pleasure.
R-1 Single-Family
Residential
This district is intended to be applied to existing single-family residential areas of the city to provide for housing which is
consistent and harmonious with existing development and to
underdeveloped areas of the city in which topography, access,
services, utilities, and general conditions make the area suitable
and desirable for single-family home development.
R-2 Duplex
Residential
This district is intended to be applied in areas of the city where
moderate densities can be physically accommodated, where consistent with the surrounding area of development, and where
needed utilities and services can be provided.
R-3 Multiple-Family
Residential
This district is intended to apply in the areas of the city where it
is reasonable to permit varying intensities of residential
development. The purpose of the R-3 district is to provide a wide range of housing types and to ensure that the R-3 district
will be free of excessive traffic and other uses causing congestion, noise, confusion, and interference in the pattern of higher-density
family living.
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3-76 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint District Description
R-4
Multifamily
Residential-
Hotel-
Professional
This district is intended to apply in areas of the city where it is reasonable to permit a mixture of hotels and motels along with
apartments, condominiums, and similar uses. The purpose of the R-4 district is to allow higher-density apartment projects and,
where appropriate, hotel, motel, community housing
developments, and professional offices, ensuring that the R-4
district will be free of excessive traffic and other uses causing
congestion, noise, confusion, and interference in the pattern of
higher-density family living and visitor-serving uses.
CRR Coastal Resource Residential
The purpose of this district is to provide for residential uses that are environmentally compatible with protection of coastal
resources of local and statewide significance by limiting densities
and intensity of residential development and restricting the range of ancillary uses. Large minimum lot sizes are required in order to
minimize overall levels of activity that could adversely impact sensitive coastal resources. Clustered development is encouraged
where it will result in less impact.
C-1 Central Business
District
The purpose of this district is to designate and promote the orderly development of the business district as a central retail
shopping facility for the primary market area. Mixed
commercial/residential uses are encouraged in the central
business district.
MCR
Mixed
Commercial/ Residential
The purpose of this district is to allow and regulate a mix of
compatible commercial uses with residential uses in districts where a strip commercial area is in close proximity to a residential neighborhood, to broaden the range of commercial market
opportunities, and to provide a review procedure to protect the
residential neighborhood from unsafe or unhealthy conditions.
G-O General Office
The purpose of this district is to accommodate public, general
business, and professional offices and commercial uses that
complement and support office development along with
residential uses which are compatible with office and commercial
uses.
Source: Morro Bay Zoning Ordinance
Development Standards
Development standards in the city are necessary for orderly growth and should pose
no constraints to the development of affordable housing. Minimum lot area required
per unit decreases with the higher-density zoning districts which provides
opportunities for higher density housing frequently including lower-income housing.
Morro Bay has established special development standards to accommodate smaller
lots formed before the city’s incorporation. Morro Bay’s Zoning Ordinance poses no
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Blueprint extraordinary constraints, other than those specific to coastal communities, on any
form of residential development. Updates to the Zoning Ordinance currently underway
will further address constraints to housing in the current zoning regulations (See
Implementation Action H-1.1.5). The City can demonstrate that its development
standards are not a constraint to the development of housing based on past
multifamily projects, in which two of six projects have an affordable component to
them:
• A 21-unit rental senior affordable housing project at 555 Main Street was developed in the C-1/R-4 (Mixed Use Commercial) district. The project provides very low- and low-income units for seniors and is deed restricted for 55 years. The density granted equates to 53 units per acre based on two different density bonuses granted.
• A project at 600 Morro Bay Boulevard was developed on 0.39 acre with 16 units (13 residential and 3 commercial units). This project was developed in the Central Business (C-1) district, which allows mixed-use or solely residential development. Since there was an affordable component to this project, the City was flexible with development standards. This project was built at the equivalent to 41 units per acre. The project included two moderate income units.
• Morro Mist Townhomes on Main Street and Bonita , contains 23 units to be developed on 1.14 acres completed in 2019/2020 in the Mixed Commercial Residential (MCR)/Multi-Family Residential-Hotel-Professional (R-4) district. This project also has a moderate income housing component, showing that the developers are able to meet sufficient densities to develop some lower cost units. This project was developed with 100 percent residential units at a density equivalent to 20 units to the acre.
• Morro South , a project at Main and South developed in the Duplex Residential (R-2) zone was developed on 3 acres and contained 30 units. The density was 10 units per acre. Three affordable units were provided off-site as part of another project located on Sunset Ave.
• A four-plex was constructed at 1055 Morro Ave and includes 1 deed-retricted rental unit. The project is zoned C-VS/R-3/PD.
• Black Hills Villas, located on South Bay Blvd (Quinn Court, private street), is a 3.17 acre subdivision of 16 new homes completed in 2019/2020. This project includes 2 deed restricted moderate-income rental units. This project is located in the R-2 Duplex Zoning district and was built at a density less than allowed in the zoning district because of environmental considerations.
In conclusion, after evaluating the projects that have been approved/proposed in
Morro Bay, the City’s development standards do not pose a constraint to development
or affordable development.
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3-78 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint The greatest constraint to development in Morro Bay is the availability and cost of
land, which is a co-dependent relationship that is market driven. The City of Morro
Bay has adopted development standards that provide necessary but not prohibitive
control over development as well as providing deviations or exceptions to
development standards in overlay or special planning areas, or for certain types of
development, such as planned developments, compact development, deed restricted
affordable developments, or variable density projects. By providing flexibility in the
development standards, the City allows greater opportunities for projects to achieve
maximum density, yet still provides for development projects to meet the City’s overall
adopted goals. The City provides incentives for projects that meet maximum densities.
The City’s height limitation is primarily used to control the size and bulk of single-family
units. Single-family homes and ADUs represent the majority of the new residential
units constructed. In July 2015 the City adopted Residential Design Guidelines with
design and neighborhood compatibility guidelines, and in some unique circumstances,
reductions in the development standards. The Residential Design Guidelines will be
further reinforced through the current update of the City’s General Plan, LCP, and
zoning code, which will include a Community Design Element. In addition, the draft
zoning ordinance update includes Section 17.38.080 Design Review Criteria, which
refers to the 2015 Residential Design guidelines. The new zoning Section 17.38.080
specifically covers scale, massing (proportion and compatibility to surrounding
homes), site plan, exterior design, landscaping, and inclusion of sustainable features.
The design review authority is Planning Commission for projects requiring Planning
Commission hearings, or the Community Development Director for all administratively
approved projects. The height limit of 30 feet for the R-4 district allows for three story
buildings. Because of the slopes and hills and the City’s requirement that the height
be 30 feet above average natural grade, three stories is very achievable and most
developers are developing to maximum density. Multifamily structures and mixed-
use structures using the City’s planned development permitting process can request
that the height standard be modified. This development standard is specifically
identified in the Zoning Ordinance as eligible to be waived or modified. In addition,
Implementation Action H-1.1.5 addresses changes to height limits that are proposed
in the City’s Comprehensive Zoning Ordinance Update.
Although the City does not see the current development standards as a constraint to
the development of housing, to ensure that multifamily projects are able to meet
maximum densities and that development standards do not constrain the
development of multifamily housing, the City has included Implementation Action
H-1.1.3, which states that the City will continue to allow flexibility in development
standards, such as height, parking, and setbacks for multifamily projects.
Development standards in zones that allow residential development are provided in
Table H-39.
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Blueprint Parking Standards
The City currently requires off-street parking for all new housing projects. These
parking regulations typically do not impact the ability to construct housing. In order
to reduce development costs for low-income projects, there are specific parking
standards for affordable projects and additional parking reductions may be allowed
based on the level of income served. Parking reductions may include allowing open
parking (vs. garage spaces), tandem parking, paying an in-lieu fee, and shared parking
between commercial and residential uses with differing parking peak demand times.
Additional parking standards reductions are permitted for senior housing and housing
for the disabled to promote these types of housing. Therefore, the allowed reduction in
parking standards for senior and low income projects works to incentivize the
construction of low-income and elderly housing by reducing the development costs
and land area necessary to construct off-street parking.
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City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-81
Blueprint Residential Zoning Criteria
AG R-A R-1 R-2 R-3 R-4 CRR C-1 MCR G-O
Allowed Density in Land Use Designations 1 per parcel 0–4 4–7 8–15 15–27 15–27 — — — 8–15
Min. Front Yard Setback 25' 20' 20' 20' 15' 15' 20' 0' 5' 4 20'
Min. Interior Yard Setback 25' 10%/10' * 10% of avg. (3'–5') 10% of avg. (3'–5') 5' 5' 10% of avg.
6' min 0' 5'
10% of
avg. (3'–5')
Min. Exterior Yard
Setback 25' 10'
20% of
avg. (5'–10')
20% of
avg. (5'–10')
20% of
avg. (10'–15')
20% of
avg. (10'–15') 10' 0' 5'
20% of
avg. (5'–10')
Min. Rear Yard Setback 25' 20%/20' 10% of avg. (6'–
10')
5' 5' 2 5' 10' 0' 5' 5'
On-Site Parking
Requirements — — 2 covered
spaces 1.5 covered spaces per bedroom to a maximum of 2 spaces per unit
Minimum Site Sq. Ft. 20 acres 20,000 sq.ft. 1 lot 2,900 per unit 2,175 per unit 1,800 per unit 1 lot
Refer to
Sub. Div. regs.
2,900 per unit
Minimum Lot Width None
Maximum Lot Coverage 2% 45% 45% 50% 60% 60% 30% 90% 60% 50%
Maximum Height 25' 25' 25' 25' 25' 30' 14'/25' 30’ 25' 25'
Source: Morro Bay Zoning Ordinance, 2019
Notes: Properties adjacent to bluffs and Environmentally Sensitive Habitat ESHA zones are subject to additional height and setback requirements. The standards in this table present the most restrictive requirements for each category for each zone; however, some of the standards may be lower depending on certain property characteristics including lot size, building size, and proximity to other zoning designations. For a complete description of residential zoning criteria, see Title 17 (Zoning) of the Morro Bay Municipal Code.
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Blueprint
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Blueprint Planned Development Overlay Zone
The purpose of the Planned Development (PD) overlay zone is to provide detailed and
substantial analysis of development on parcels which, because of location, size, or
public ownership, warrant special review. This overlay zone is also intended to allow
the modification of or exemption from the development standards of the primary zone
that would otherwise apply if such action would result in better design or other public
benefit.The requirements and procedures apply to all properties that have, in addition
to a primary or base zone district, the Planned Development (PD) overlay zone, unless
otherwise provided in the Zoning Ordinance. Inclusion in the PD overlay zone requires
a conditional use permit.
For those areas of the city that are covered by the Waterfront Master Plan, all new
development projects requiring discretionary permits (conditional use permits, etc.)
must be consistent with the design guidelines in Chapter 5 of the Waterfront Master
Plan. Modifications of standards will only be approved upon a finding that greater than
normal public benefits may be achieved by such deviations. Such benefits may include,
but are not limited to, improved or innovative site and architectural design, greater
public or private usable open space, provisions of housing for the elderly or
low/moderate-income families, provision of extraordinary public access, and provision
for protecting ESH areas, but in all cases these provisions must meet the coastal land
use policies.
A concept plan followed by a precise plan, must be submitted and approved pursuant
to Chapter 17.40 of the Zoning Ordinance prior to submittal of any new development,
new use or change in use, or subdivisions of a series of two or more commonly held
contiguous parcels of land, on property within a PD overlay zone which is publicly
owned, including tidelands, or in its gross or aggregate area exceeds 1 acre.
Concept Plan Approval. In addition to the review provisions of Chapter 17.60 of the
Zoning Ordinance describing the processing of conditional use permits, concept plans
for PD overlay zone properties must receive final approval from the City Council at a
duly noticed public hearing. The Planning Commission first reviews the concept plan
by conducting a public hearing. If the commission consideration is to approve the plan,
it reports such findings and recommendation to the City Council. If the commission
determines to deny the plan, it need not be forwarded to the council, and the
commission decision is final unless appealed.
Precise Plans Required. Upon approval by the City Council of a concept plan, or where
no conceptual approval is required, a precise plan of development must be submitted
to the Planning Commission showing the details of property improvement and uses or
activities to be conducted on the site and any subdivision proposals. Precise plans are
processed in accordance with procedures for a conditional use permit as contained in
Chapter 17.60 of the Zoning Ordinance.
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3-84 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint
Special Treatment Overlay Zone
The Special Treatment (S) overlay zone requires special building site and yard
standards in areas zoned with this overlay to preserve the existing character of physical
development west of Highway 1, north of Azure Street and south of tract 2110 (on
Toro Lane) and protect the public viewshed from Highway 1 throughout the city.
Development standards diminish development capacity on individual parcels, and
landscaping plans are required in designated portions of the overlay zone. In order to
maintain and enhance the character and visual quality of some special treatment areas,
special design review also requires architectural, landscaping, lighting, signing and
viewshed plans. In some cases, additional uses are permitted in addition to the base
zone to allow mixed use development including additional residential units, office
space, or additions. Depending on the primary zone, plans, drawings, illustrations and
other material necessary must be submitted for approval, conditional approval, or
disapproval of the plans by the planning commission.
Also included under the Special Treatment (S) overlay zone, the Residential Protection
(S.6) overlay zone affords reasonable protection in case of accidental destruction for
various residential uses which were made nonconforming when the city's LCP was
adopted, subject to certain limitations. This allows residential uses to be considered
conforming uses to minimize homeownership maintenance costs.
In the Combining mixed use overlay zone, the city’s LCP has indicated combinations
of two or more different, but compatible, uses may be applied to the same property
when appropriate. When combining two or more commercial designations, there must
be approximately equal areas each permitted commercial designation. Residential uses
permitted in conjunction with the primary use must first obtain a conditional use
permit.
The Interim use (I) overlay zone allows certain properties being held for future use to
have interim uses for adequate land utilization. Uses serving commercial fishing and
boating industries and temporary visitor-serving or recreation are conditionally
allowed upon Planning Commission review in specific industrial zones. Uses commonly
permitted include commercial fishing and boating facilities, RV parks, overflow
camping facilities, and boat storage or repair. Term limits are set prior to approval,
often lasting between five and ten years, but may be renewed as needed.
Specific Plans
The North Main Street Specific Plan (1989) regulates the neighborhoods of North
Morro Bay to address land use incongruities between citywide standards and local
market demands. Development standards established through this plan improve
overall environment quality and establishes an area that allows for various land uses
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City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-85
Blueprint including retail and service commercial uses, mixed commercial and residential, or
exclusive residential uses. Divided into Subareas A through D, area-specific regulations
are added to the base zoning to ensure continuity of design and amenities are
maintained throughout the specific plan area. Mature trees, roofline variations, and
view corridors are assessed, and developers must pay a specific plan fee and commit
to off-site improvements as conditions of approval of a conditional use permit.
The Beach Street Specific Plan (1986), provides land use requirements in the specific
plan area, separated by subarea, to protect the unique mix of land uses. Subareas A
through F impose development regulations and standards to allow uses ranging from
single family residential housing and mobile home parks to marine-related and service
commercial businesses. Conditional use permits are required in each subarea with
subarea-specific application requirements for example exterior lighting plans to
minimize potential conflicts.
Growth Management
In 1984 as a result of voter-initiated Measure F, the City adopted a growth management ordinance (Ordinance No. 266) to allow fair distribution of scarce water resources and protect the city’s small-town character and surrounding open space. Ordinance No. 266 mandates that building permits be limited to a number permitting an annual increase in population that would achieve the 12,200-person goal by the year 2000. The city has not yet reached a population of 12,200. As noted in Section 2, Housing Needs Assessment, the City’s population in 2019 was 10,439. No further residential building will be permitted after a population of 12,200 has been reached unless an increase has been approved by a majority vote at a regular or special election. Annually, the City Council allocates a number of “water equivalency units” (WEUs), some for single-family and some for multifamily development. The annual number is the maximum number of permits (residential and commercial) that may be approved. The annual number has varied over time but has never been reached or exceeded during a single year, even during the years of greatest growth (2005-2007). The number of WEUs available per year is based on water availability. The City Council has the authority to roll over unused WEUs to the subsequent year. If the number of WEUs allocated annually from 2019 to 2028 is conservatively (in terms of water supply availability) estimated at 50, this would allow the approval of a maximum of 500 residential units during the planning period, more than enough to accommodate the City’s RHNA of 391 units. The draft of Plan Morro Bay includes implementation that calls for initiating discussions about the Measure F 12,200 limit when the City’s population reaches 11,700 and considering giving priority for WEUs to projects that contain affordable units.
Provisions for a Variety of Housing
Housing element law specifies that jurisdictions must identify adequate sites to be
made available through a variety of appropriate zoning and development standards
to encourage the development of housing for all economic segments of the
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3-86 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint population. Housing types include: single-family , multifamily , manufactured homes,
mobile homes, special needs adapted housing, emergency shelters, and transitional
housing, among others. Table H-40 summarizes those housing types and how they
are allowed based on the zoning districts and land use plan designations.
Morro Bay has limited vacant land, and an older home population. As such, the typical
new dwelling unit is possibly a new home and an ADU, or a remodel and addition to
an existing home plus a new ADU unit. The city encourages property owners to build
to the maximum density allowed in each zoning district that allows residential. There
are a few sites each year that are built to a higher density for apartments, duplexes, or
townhomes.
Typical built densities range in different zoning districts. Most sites are devleoped to
80 percent or more of the available density. Specifically, typical density for R-1 sites is
one unit per buildable lot, plus an ADU. The typical density for the R-2 zone (duplex
residential) is one dwelling per every 2,900 square feet, or the equivalent of 15 du/ac.
The typical density for the R-3 (Multi-Family Residential) is 2,175 sf per dwelling or the
equivalent of 20 units per acre. The typical density for the R-4 zone (Multi-family
Residential -Hotel- Professional Office) is 1,800 sf per dwelling or the equivalent of 24
du/ac. Secondary units have been developed recently in the GO and C-1 districts.
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City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-87
Blueprint Housing Types Permitted by Zone
Housing Types Permitted
Zone Districts
AG RA R-1 R-2 R-3 R-4 CCR C-1 MCR
Single-Family Dwellings P P P P MUP MUP P MUP
Duplexes P P P MUP
Multifamily Dwellings CUP P P MUP
Accessory Dwelling Units P P P P P P
Manufactured Homes P P P P MUP
Senior Housing Units P1
Mobile Home Parks CUP CUP CUP
Rooming and Boarding House CUP CUP
Residential Care Facilities2 P P P P P P
Employee Housing (6 or fewer) P P P P P P P
Employee Housing (36 or fewer) P P
Transitional and Supportive Housing P P P P P P P P
Emergency Shelters P
Single-Room Occupancy Units P P
Source: Morro Bay Zoning Ordinance, accessed 2019
P – Permitted by right; CUP – Conditional use permit required; MUP – Minor use permit required
Notes: 1. Permitted only when affordable to low- and/or moderate-income f amilies. 2. Residential care f acilities serving 6 or fewer persons are permitted in all residential districts by right; larger group homes of more than 6 and up to 12 persons require a minor use permit; and facilities serving more than 12 persons require a conditional use permit.
Density Bonus
Zoning Ordinance Chapter 17.50 (Affordable Housing, Density Bonuses and Incentives)
of the Morro Bay Municipal Code defines the City’s density bonus provisions.
Implementation Action H-1.1.5 notes that the City’s density bonus regulations are
being updated as part of the comprehensive zoning ordinance update to comply with
changes to the state density bonus law since adoption of the previous housing
element. Key provisions of the current density bonus regulations include:
• New construction of five or more units may receive a density bonus provided they satisfy one or more of the following criteria:
− At least 10 percent of the units are designated for low-income households.
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3-88 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint − At least 5 percent of the units are designated for very low-income households.
− At least 10 percent of the units are designated for moderate-income households, provided that all units in the development are offered to the public for purchase.
− 100 percent of the units are designated for senior citizens as defined in Section 51.3 and 51.12 of the Civil Code or mobile home park that limits residency based on age requirements for housing for older persons pursuant to Government Code Section 798.76 or 799.5.
− Donation of land to the City consisting of at least 1 acre, or of sufficient developable acreage and zoning classification to permit construction of at least 40 units, and not less than 10 percent of the residential units in the proposed development, that are affordable to very low-income households
• The density bonus will be calculated as follows:
− A 20 percent density bonus, increasing by an additional 1.5 percent for each additional 1 percent increase in low-income units above the initial 10 percent threshold.
− A 20 percent density bonus, increasing by an additional 2.5 percent for each additional 1 percent increase in very low-income units above the initial 5 percent threshold.
− A 20 percent density bonus for senior citizen housing developments.
− A 5 percent density bonus, increasing by an additional 1 percent for each additional 1 percent increase in moderate-income units above the initial 10 percent threshold.
− When an applicant proposes to construct a housing development that is eligible for a density bonus and includes a child-care facility that will be located on the premises of, or adjacent to, the housing development, the City will grant either an additional density bonus that is an amount of square feet of residential space that is equal to or greater than the square footage of the child-care facility or an additional concession or incentive that contributes significantly to the economic feasibility of the construction of the child-care facility.
− The maximum density bonus is 35 percent when a project provides either 11 percent very low-income units, 20 percent low-income units, or 40 percent moderate-income units. All density bonus calculations resulting in fractional units are rounded up to the next whole number of housing units.
• Upon request of a developer eligible to receive incentives related to the affortdability criteria of the project, the City may grant the following parking standards, inclusive of handicapped and guest parking, for the entire project:
− Zero- to one-bedroom units – 1 on-site parking space per unit
− Two-bedroom units or more – 2 on-site parking spaces per unit
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City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-89
Blueprint • The City may also provide other incentives for the development of affordable housing, including reduced site development standards, deferred or waived fees, direct financial aid, and other regulatory developer incentives.
• Where affordable housing units have been provided per the requirements of Chapter 17.50, the developer must ensure both the continued availability of affordable units for a minimum of 30 years and in some cases, project phasing, to insure that the availabiliy of the affordable housing units is concurrent with nonrestricted units.
Emergency Shelters
The California Health and Safety Code (Section 50801) defines an emergency shelter
as “housing with minimal supportive services for homeless persons that is limited to
occupancy of six months or less by a homeless person. No individual or households
may be denied emergency shelter because of an inability to pay.”
Senate Bill 2 (Cedillo, 2007) requires jurisdictions to allow emergency shelters and
supportive and transitional housing without a conditional use permit. The City’s Zoning
Ordinance currently allows emergency shelters without requiring a conditional use
permit.
In 2014 the Morro Bay City Council adopted Ordinance No. 584, which amended the
Zoning Ordinance to allow emergency shelters by right in the Central Business (C-1)
district. The C-1 district is close to services (shopping and public services) and transit
stops. Overall, the C-1 district has more than 21 acres of undeveloped land on vacant
parcels that will allow adequate capacity for the provision of an emergency shelter.
The County Homeless Services Oversight Council (HSOC) is working on identifying a
site for an emergency shelter site in Morro Bay.
Supportive and Transitional Housing
Supportive housing is defined by Section 50675.14 of the Health and Safety Code as
housing with linked on-site or off-site services with no limit on the length of stay and
that is occupied by a target population as defined in Health and Safety Code Section
53260 (i.e., low-income person with mental disabilities, AIDS, substance abuse or
chronic health conditions, or persons whose disabilities originated before the age of
18). Services linked to supportive housing usually focus on retaining housing, living
and working in the community, and/or health improvement.
Transitional housing is defined in Health and Safety Code Section 50675.2 as buildings
configured as rental housing developments, but operated under program
requirements that call for the termination of assistance and recirculation of the assisted
unit to another eligible program recipient at some predetermined future point in time,
which shall be no less than six months. It may be designated for a homeless individual
or family transitioning to permanent housing. This housing can take many structural
3G – Housing
3-90 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint forms, such as group housing and multifamily units, and may include supportive
services to allow individuals to gain necessary life skills in support of independent
living.
Pursuant to SB 2, transitional and supportive housing types are required to be
processed as residential uses and subject only to those development standards and
restrictions that apply to other residential uses of the same type in the same zone. In
2014 the Morro Bay City Council adopted Ordinance No. 584, which amends the
Zoning Ordinance to add the current definition of transitional housing and supportive
housing, as stated in this document, and lists these as permitted uses in all zoning
districts allowing residential uses.
Extremely Low-Income Households
Extremely low-income households typically consist of persons with special housing
needs, including but not limited to persons experiencing homelessness or at risk of
homelessness, those receiving government assistance, and farmworkers. The City
estimates an approximate total of 688 extremely low income housholds in Morro Bay,
or approximately 14 percent of the total households in the city. Assembly Bill 2634
(Lieber, 2006) requires the quantification and analysis of existing and projected
housing needs of extremely low-income households. Housing elements must also
identify zoning that allows single-room occupancy units (SROs), which in some cases
might be an acceptable solution for extremely low income people.
In 2014 the Morro Bay City Council adopted Ordinance No. 584, which amended the
Zoning Ordinance to explicitly define and allow SROs in the Central Business (C-1) and
Mixed Commercial/Residential (MCR) districts. In addition, Implementation Action H-
1.1.7 states that the City will continue to work with the private sector and nonprofit
agencies, and to secure funds through state and federal programs for development of
new lower-income housing and rehabilitation of existing lower-income households. As
funding becomes available, the City will prioritize a portion of the funds to encourage
the development of housing for extremely low-income households.
Accessory Dwelling Units
Accessory dwelling units (ADUs) (formerly referred to as secondary dwelling units) are
regulated in the Morro Bay Zoning Ordinance Section 17.48.320. Those regulations are
being updated in the comprehensive Zoning Ordinance update (see Implementation
Action H-1.1.19). Once the new Zoning Ordinance is adopted, Morro Bay’s regulations
will be consistent with current state law. Morro Bay is following the requirement of the
state law in the interim and as result, permitted 23 new ADU’s in 2019.
Housing for Farmworkers
In 2014 the Morro Bay City Council adopted Ordinance No. 584, which amends the
Zoning Ordinance to remove constraints to housing for farmworkers. Ordinance No.
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City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-91
Blueprint 584 also amended Chapter 17.24 of the Zoning Ordinance to allow employee housing
with a maximum of 36 beds in a group quarters or 12 units or spaces in the Agricultural
(AG) and Suburban Residential (R-A) districts. The Zoning Ordinance now defines
“employee housing” as housing that includes but is not limited to farmworker housing.
Employee housing for six or fewer workers will be deemed to be a single-family
structure with a residential land use and will be processed to the same standards as a
single-family dwellingwithin the applicable zoning district. Employee housing for
agriculturally zoned property may consist of no more than 36 people in a group
quarters or 12 people in a single family or household on land zoned for agricultural
uses.
Housing for Persons with Disabilities
Housing for Disabled Persons
Housing element law requires localities to include the following in the preparation and
adoption of the Housing Element: (1) in addition to identifying the portion of the
population living with a disability, an analysis of potential and actual constraints on
housing for persons with disabilities; (2) demonstration of efforts to remove
governmental constraints; and (3) inclusion of various programs or a means of
reasonable accommodations for housing designed for persons with disabilities. As part
of the Housing Element process, the City analyzed its Land Use and Zoning Ordinance,
permitting process (conditional use permit process and variance), development
standards, and building codes to identify potential constraints for the development of
housing. Where impediments are found, the Goals, Policies, and Implementation
Actions section of the Housing Element proposes specific actions and implementation
schedules to remove such impediments. The following paragraphs summarize findings
from the constraint analysis and proposed actions.
Zoning and Land Use
State and federal housing laws encourage an inclusive living environment, where
persons of all walks of life have the opportunity to find housing suited to their needs.
The Zoning Ordinance allows a range of housing types and prices for special needs
groups, and allows foster homes and rest homes pursuant to a conditional use permit.
The Zoning Ordinance does not have geographical spacing/siting requirements for
nursing homes, shelters, or foster care homes. Although these classifications allow
special needs housing, the City currently provides housing opportunity for disabled
persons. The City complies with state laws under the Community Care Facilities Act.
Residential care facilities serving 6 or fewer persons are permitted in all residential
districts by right, larger group homes of more than 6 and up to 12 persons require a
minor use permit, and facilities serving more than 12 persons require a conditional use
permit. To further comply with SB 520, the City defines family as one or more persons
occupying premises and living as a single housekeeping unit who not need be related
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3-92 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint by blood as distinguished from a group occupying a hotel, club, or fraternity or sorority
house. Implementation Action H-1.1.5 calls for zoning updates to address AB 2162
related to how the City allows supportive housing.
Building Codes and Development Standards
The City enforces Title 24 of the California Code of Regulations (California Building
Code), which are regulations on access and adaptability of buildings to accommodate
persons with disabilities. The City inspects plans to ensure compliance with Americans
with Disabilities Act (ADA) standards. The City’s building code requires new residential
construction to comply with the ADA, which requires design standards for “qualified”
buildings consisting of three or more units. These requirements include the
incorporation of (1) adaptive design features for the interior of the unit; (2) accessible
public use and common use areas; and (3) sufficiently wide doors to allow wheelchair
access. Currently, Morro Bay uses the 2019 edition of the California Building Code
(updated every three years). The City has not adopted unique restrictions for disabled
housing, such as minimum distances between housing for persons with disabilities, or
other regulations that could constrain the development, maintenance, or alteration of
housing for disabled persons. The City does not require new housing projects to
incorporate universal design standards, which are beyond the standards required by
state and federal law. In addition, the Zoning Ordinance does not have occupancy
limitations, which are preempted by State law. The Zoning Ordinance also does not
define a family in a way that would limit the number of persons per household or limit
the relationship of the household members. The Zoning Ordinance does not specify
the types of development standards for special needs housing or unique performance
standards. However, convalescent homes and senior housing are allowed a reduced
parking requirement of only one space for every three beds plus employee parking
and half a space for seniors, respectively.
Permitting Procedures
Section 17.48.400 of the Zoning Ordinance provides a reasonable accommodation
process for those seeking accommodations due to a disability. The procedure is
reviewed administratively with a low fee required.
Building Codes
The Morro Bay Building Code is based on the California Building Code (CBC), which
determines the minimum residential construction requirements for all of California.
The CBC ensures safe housing and is not considered a significant constraint to housing
production. On January 1, 2020, the City of Morro Bay adopted the 2019 California
Building Code as its own building code and will make the requisite changes to its
Municipal Code. The State allows local governments to make amendments to the CBC
as would allow the Code to best suit local needs. In October 2019, staff prepared a list
of local amendments in preparation of the upcoming adoption of the 2019 CBC. Some
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Blueprint of these amendments include verification of building setback and height as well as
sprinkler requirements for new residential and commericial buildings or any significant
additions or alterations thereto.
Code Enforcement
Like most cities, Morro Bay responds to code enforcement problems largely on a
complaint basis. The usual process is to conduct a field investigation after a complaint
has been submitted. If the complaint is found to be valid, the seriousness of the
problem is assessed. The more serious the violation, the more urgent the City’s action.
The City encourages voluntary compliance through letters and phone calls and/or site
visits. If compliance cannot be attained in this manner, the City may take more
aggressive action through the legal process.
The City’s philosophy has been to mitigate serious health or safety problems, but to
allow the property owners reasonable time and flexibility to comply. The City seeks to
balance the need to ensure safe housing against the potential loss of affordable
housing that might result from overly strict enforcement. There is no indication that
code enforcement actions have unnecessarily restricted the use of older buildings or
inhibited rehabilitation.
Permit Processing Times
While permit processing times in Morro Bay are not excessive, this Housing Element
includes an implementation action stating the City’s intent to continue to take efforts
to reduce the processing of all development proposals, especially those that include
affordable housing. Implementation Action H-1.1.15 states that the City will continue
to expedite the permit processing procedure as an additional incentive for the
development of affordable housing.
Assuming a full planning staff of two planners, coastal development permits and use
permits would take between two to four months for both single- and multifamily
projects, including notice periods for coastal development permits. Environmental
review or CEQA review can add months to the time frame. This part of the process is
out of the City's control. Also, because of the City's coastal location, there are many
sites within proximity to environmentally sensitive habitat that will require CEQA review
that can add additional time to the process outside of the City’s control. Outside of
things that are under the City’s control, applications for building permits are usually
submitted within two to four months once a project is fully entitled. It is difficult to
estimate a typical amount of time as it varies greatly depending on the applicant and
particulars of the project.
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3-94 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint In 2019, processing times were not excessive and didn’t significantly impact the cost
of construction or the ability to build. Table H-41 provides a summary of typical
processing times by household type.
Typical Processing Procedures by Project Type
Single-Family Unit Multi-Family Unit
Mixed Use Commercial/ Residential Parcel Merger Subdivision
Typical Approval
Requirements
Coastal
Development
Permit
Coastal
Development
Permit
Coastal Development
Permit
Tentative and
Parcel Map
(division of a
property into 4 or
fewer parcels)
Use Permit Use Permit
Tentative and Final
Map (division of property into 5 or
more parcels)
Building
Permit
Building
Permit
Eliminate lot line to
create larger
parcel
Total
Estimated
Time
2 months 3–4 months 6-12 months 1 month 12–18 months
Source: City of Morro Bay, 2019
Development Review
The following is a description of the development review process for single- and
multifamily developments in Morro Bay. Because the entire city is within the coastal
zone, no proposals for construction of a new single-family or multifamily unit can be
ministerial.
First it must be determined whether the project is within the City’s or the Coastal
Commission’s jurisdiction and whether it is within the California Coastal Commission
appeal jurisdiction.
New Residences
East of Main Street
Administrative coastal permits will be required for construction of all new single- or
multifamily residences until the City obtains the approval of the Coastal Commission
to exempt the area east of Main Street to the Local Coastal Program Urban/Rural
Boundary—except areas within a Coastal Commission appeal jurisdiction, an ESH
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Blueprint overlay zone, or on properties of 10 percent of greater slopes—from the requirement
of obtaining a coastal development permit for the purpose of construction of new,
one-story, single-family residences and two-story residences when the second floor is
less than 40 percent of the lot area. The Community Development Director is
authorized to take whatever steps are necessary to obtain Coastal Commission
approval.
West of Main Street
• Outside appeal jurisdiction
Administrative coastal permits are required for properties located west of Main Street and not within the appeal jurisdiction or ESH zone.
• Within appeal jurisdiction
Regular coastal permits are required for properties located west of Main Street and within the appeal jurisdiction or ESH zone.
Administrative Coastal Development Permits
For developments and/or uses requiring an administrative coastal development permit
the Community Development Director may process as an administrative permit any
coastal development permit application specifically for the following developments
and/or uses and provided that the development and/or use is not located in the coastal
development permit appeal area.
• Improvements to any existing structure including minor additions to existing commercial, industrial, or multifamily structures that do not result in an intensification of use or require a conditional use permit, or add any additional units or create any environmental impacts and which do not require a subdivision map.
• Any single-family dwelling.
• Development of four dwelling units or less on a residential lot that is not located within the coastal appeal jurisdiction and/or ESH overlay zone and that does not require demolition of more than two units or a conditional use permit.
Outside the Coastal Appeal Jurisdiction
A final decision on an application for a coastal development permit for projects outside
the coastal development permit appeal area becomes effective after the City’s 10-day
appeal period has expired unless an appeal of the Community Development Director
and/or Planning Commission’s decision is filed, or the notice of final action is
inadequate, as described under Section17.58.080.B of the Zoning Ordinance.
Within the Coastal Appeal Jurisdiction
A final decision on an application for a coastal development permit for projects in the
coastal development permit appeal area is effective after the appeal period of 10
3G – Housing
3-96 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint working days to the Coastal Commission has expired unless either of the following
occur:
• An appeal is filed; or
• Notice of final City action does not meet the requirements set forth in Section 17.58.080.B of the Zoning Ordinance.
The effective date of the City’s action may be suspended if either of the above
circumstances occurs.
City Permits for Development within the Coastal Commission Permit Jurisdiction
The City will not issue a building permit where a coastal development permit from the
Coastal Commission is required until:
• The applicant has provided the City with a copy of the approved coastal development permit and, if applicable, signed plans by the Coastal Commission; and
• The applicant ensures the building plans that the City intends to approve are consistent with the plans signed off by the Coastal Commission staff or reflect any plan changes described in written form; or
• The applicant provides the City with written verification from the Coastal Commission that a coastal development permit is not required.
In addition to these requirements, a conditional use permit is required for any addition
that adds more than 25 percent to an existing nonconforming single-family home, or
where the site is located within a PD overlay area or where a property is subject to bluff
development standards.
Residential Development Fees
The City collects various fees from applicants to cover the costs of processing permits,
including fees for planning approvals, subdivision map act approvals, environmental
review, public works and plan check services, and building permits. In addition to these
service fees associated with development processing, the City and the regional
transportation agency charge several impact fees to offset the future impact of
development on regional traffic and circulation, parks, and libraries. The City’s Green
Building Incentive Program provides eligible projects with building and plan check fee
rebates (see the Energy Conservation Opportunities section of the Housing Element).
Table H-42 shows the City’s development fees.
As a means of assessing the cost that fees contribute to development in Morro Bay,
the City has calculated the total fees associated with development of a single-family
and multifamily development. As indicated in Table H-43, development fees for a
1,500-square-foot, single-family residential project run approximately $31,781 per
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City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-97
Blueprint unit, and development fees for a multifamily project are approximately $41,692 per
unit for the same unit square footage. The fees for a single-family unit make up about
4 percent of the total construction costs, and for a multifamily unit fees constitute 12
percent of total construction costs. These fees are consistent with other cities in San
Luis Obispo County and do not represent a significant financial constraint to new
housing development.
Development Fees for Residential Development
Fee Name
Fee
Effective 1/1/20
Proposed Fee
Effective 7/1/20
(Plus CPI)
Proposed Fee
Effective 7/1/21
(Plus CPI)
Planning Division Fees
Affordable Housing In-Lieu
Funding assistance application fee $620
Reasonable Accommodation (ADA) fee (no fee required if in
conjunction with other
discretionary permit)
$120
Coastal Permits (may be billed at direct cost)
Coastal Permit in Combination with
Conditional Use Permit
No fee No fee No fee
Coastal Permit
(Administrative)
$1,007 $1,208 $1,410
Regular CDP Without CUP – New single family and
single family additions
over 25%, or Multiple
Dwelling
$8,284 $10,914 $13,545
Additions between 10%
and 25% to a Single Family Dwelling in Coastal
Appeals area (Planning
Commission)
$3,216 $4,076 $5,865
Emergency Permit
(excluding required
regular CDP)
$1,010
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3-98 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint Fee Name
Fee Effective 1/1/20
Proposed Fee Effective 7/1/20 (Plus CPI)
Proposed Fee Effective 7/1/21 (Plus CPI)
Other administrative – tree
removal, private $415 $518 $570
Categorical Exemption $65
Negative Declaration $2,363
Mitigated Negative
Declaration If Contracted
= contract among + 25%
administrative fee
In House - $4,872 per
application Outside - $4,872 as a
deposit for outside
consultant plus 25%
Administrative Fee
In House - $5,770 per
application
Outside - $5,770 as a deposit for outside
consultant plus 25%
Administrative Fee
In House - $6,660 per
application Outside - $6,660 as a
deposit for outside consultant plus 25%
Administrative Fee
Filing fee – for environmental document $190
Environmental Impact
Report – Contract Amount + 25% administrative fee
Initial $5,000 deposit
for cost of staff and outside consultant
Archaeology Research Fee- Santa Barbara Central
Coast Services
$140
Notification Fees
Planning Commission Hearing $443 $560
Administrative Permit Noticing $285 $507 $530
Subdivisions
Tentative Parcel Map Application $6,665 per map
Tentative Tract Map 0 to 10 lots, add $100 per lot
over 10 lots
$8,832 per map $11,040 per map $12,915 per map
Lot Line Adjustment $1,904 per application $3,046 per application $5,915 per application
Certificate of compliance (legal determination) –
initial fee covers up to 4
lots. Add $250 per lot over
4 lots
$1,190 + $250 per lot for every lot over 4
Lot Mergers $2,000 $3,000 $5,915
3G – Housing
City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-99
Blueprint Fee Name
Fee Effective 1/1/20
Proposed Fee Effective 7/1/20 (Plus CPI)
Proposed Fee Effective 7/1/21 (Plus CPI)
Text Amendments & Annexations (May be billed at direct cost)
Zone Ord. Changes/LCP
-Minor (single section
revisions/additions)
-Major (multiple sections
revised/added)
If contracted – contract
amount + 25%
administrative fee. Fee among becomes an initial
deposit.
Minor = $5,000 deposit for cost of
staff and outside consultant
Major = $10,000
deposit for cost of staff and outside consultant
Specific Plan (Billed as deposit with charges at
the fully allocated hourly
rates for all personnel
involved + any outside
costs). If contracted = cost
+ 25% administration fee. Fee amount becomes an
initial deposit.
$5,000 deposit for cost of staff and
outside consultant
General Plan/Local Coastal
Plan Amendment:
-Minor (single section
revisions/additions)
-Major (multiple sections
revised/added)
If contracted – cost + 25% administrative fee. Fee
amount becomes an initial deposit.
$5,000 deposit for
cost of staff and
outside consultant
$10,000 deposit for
cost of staff and
outside consultant
Annexations – Deposit to be determined by staff.
Billed at fully allocated
staff cost. If contracted –
contract amount + 25%
administrative fee.
$10,000 deposit for
cost of staff and
outside consultant
3G – Housing
3-100 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint Fee Name
Fee Effective 1/1/20
Proposed Fee Effective 7/1/20 (Plus CPI)
Proposed Fee Effective 7/1/21 (Plus CPI)
Use Permits -All use permits may be billed at direct cost at the discretion of the Community Development Manager and the scheduled fee would then be deemed as a deposit. -All Projects in the Planned Development Overlay require a Use Permit
Conditional Use Permit
(CUP)
$8,284 $10,915 $13,545
CUP Concept Plan $10,941 $12,915 $14,890
CUP Precise Plan $4,761 $7,142 $10,235
CUP Combined
Concept/Precise Plan $10,941 $12,915 $14,890
One SFR in a Planned Development Zone or
Bluff Area
$6,760
Additions to non-
conforming structures, not adding units of new uses
$ 3,195 $4,793 $5,990
Minor Use Permit (Residential & Industrial
Uses)
$928.50 $1,625 $2,305
Amendments to Existing Permits (Planning
Commission)
$ 4,240 $6,360 $8,960
Special Use Permit (Minor–
PC Review)
$ 2,718 $4,077 $5,665
Special Use Permit (Major–
PC Review)
$8,165 $10,677 $13,190
Variance $3,261 $4,076 $5,665
Variance processed with other permits $1,000
Minor Variance $680
Parking Exception (will always be accompanied by
a Conditional Use Permit, Minor Use Permit or
Coastal Development
Permit)
$373 $560 $1,000
3G – Housing
City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-101
Blueprint Fee Name
Fee Effective 1/1/20
Proposed Fee Effective 7/1/20 (Plus CPI)
Proposed Fee Effective 7/1/21 (Plus CPI)
Laserfiche Applies to all Planning and Building Permits
Laserfiche of planning and
building documents,
including scanning and
storage. Fee based on plan set pages only.
$15 for first page of
plan set, and $7 for
each additional page.
Development Impact Fees (Building fees per square foot, including garages—single-family additions of 500 sf are exempt.)
Fee Name
Residential, Single Family $4.43
Residential, Multi-family $7.10
Accessory Dwelling Unit $1.08
Park Fees (residential in-fill lots, per sf)
Single-family $1.38
Single-family, Detached Accessory Structure $0.34
Accessory Dwelling Unit $0.34
Multi-Family $2.29
Public Facilities Fees, per square foot.
Single-Family
General Government
Police $1.32
Parks $0.44
Fire $1.38
Storm Drain $0.48
Traffic $0.06
Multi-family
General Government $2.18
Police $0.72
Parks $2.29
Fire $0.81
Storm Drain $0.07
3G – Housing
3-102 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint Fee Name
Fee Effective 1/1/20
Proposed Fee Effective 7/1/20 (Plus CPI)
Proposed Fee Effective 7/1/21 (Plus CPI)
Traffic $3.31
School $3.71
Source: City of Morro Bay 2019; San Luis Coastal Unified School District, 2018
Proportion of Ratio of Planning Fees to estimated total in Overall
Development Cost for a Typical Residential Development
Development Cost for a Typical Unit Single-Family1 Multi-Family2
Total estimated fees per unit3 $31,781 $41,692
Typical estimated total cost of development per unit $711,3354 $342,1434
Estimated proportion of fee cost to overall
development cost per unit
4% 12%
Source: City of Morro Bay 2019; San Luis Coastal Unified School District, 2018
Notes:
1 Cost is for a 1,500-square-foot house with a two-car garage
2 Cost is for a 1,500-square-foot unit within a 4-unit project
3 The fees used for this calculation are the fees from the City’s current phased fee schedule that are set to go into effect July 1, 2021 to provide a reasonable estimate the bulk of the housing element planning period.
4 In addition to hard costs of construction, cost for vacan t land is included in these numbers and is assumed to be $360,000 based on search of listings on Redfin.com for Morro Bay on December 12, 2019.
Site Improvements
Site improvement costs include the cost of providing access to the site, clearing the
site, and grading the pad area. In the case of a subdivision, such costs may also include
major improvements such as building roads and installing sewer, water, and other
utilities. Several variables affect site costs, including site topography, soils conditions
and proximity to established roads, utilities, proximity to environmentally sensitive
areas, etc. Engineering and other technical assistance costs are usually included with
site improvements, as these services are required to ensure that development is
constructed according to established codes and standards.
The City requires that curbs, gutters, and sidewalks be placed along the frontage of
every multifamily lot (R-3 or above) on which new construction or significant alteration
is done. These improvements may be required for single-family lots under specific
circumstances. These and other site improvement costs are typical of all cities in
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Blueprint California and do not impose a significant constraint on the development of housing
in Morro Bay. The City does not impose any unusual requirements as conditions of
approval for new development. City regulations are intended to generally encourage
high-quality private development and new construction. Traffic fees are calculated by
square footage and are currently $3.31 per square foot.
Inclusionary Housing Program
In 2014, the Morro Bay City Council adopted Ordinance No. 584, which revoked
Chapter 17.50 (Affordable Housing, Density Bonuses and Incentives) of the Municipal
Code and replaced it iwith a new Chapter 17.50 that included inclusionary housing
provisions consistent with current state law. Provisions in the section include:
• All new residential developments of five or more for-sale units must provide a minimum of one inclusionary unit or 10 percent of the total number of units, whichever is greater, to be affordable to families with incomes in the very low-, low-, or moderate-income ranges, depending on the needs of the City at the time of approval. Affordable units may be either for sale or for rent to a household meeting the income level requirements.
• The City requires the developer to provide affordable housing on-site where feasible. If the City determines that this is not feasible based on a detailed economic analysis prepared by a City-contracted consultant at the cost of the applicant, the City requires the developer to provide such housing at another location in Morro Bay. If the City determines that it is not feasible for the developer to provide such affordable housing off-site, the developer is required to pay a fee in lieu of providing such housing
• Fees accepted for affordable housing are available to the City to construct new housing or assist in the construction of housing for rent or sale to very-low-, low-, and moderate-income families or to purchase land for the purpose of affordable housing or to assist very-low-, low-, and moderate- income families to afford adequate housing or for other measures to provide housing for low- and moderate-income families.
Short-Term Rentals
The conversion of housing to vacation rentals (also referred to as short-term rentals)
provides a revenue source to the city from Transit Occupancy Taxes and supports the
tourist-based economy—which tends to generate jobs, though usually at lower wage
levels—but it also reduces the housing supply for local residents by driving up home
values and average rents. Most vacation rentals are owned by persons living outside
the area. Noise and traffic impacts and the presence of unoccupied homes also
negatively affect the well-being of the community.
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Blueprint The Morro Bay Municipal Code defines and regulates the use of short-term rentals in
the city. Chapter 5.47 (Business Tax Certificates and Regulations) classifies short-term
vacation rentals as, as the rental of any structure or portion of any struture for dwelling,
lodging or sleeping purposes for up to thirty consecutive calendar days and can
include; detached single-family homes, condominiums, duplexes, townhomes and
multiple-family dwellings. All owners of short-term vacation rentals are required to
obtain and display a permit from the City authorizing them to operate the
vacation/short-term rental unit. The City is currently updating its vacation rental
section of the Zoning Ordinance and is committed to balancing the priorities of the
community, the Coastal Commission, and the need for long-term rental housing
related to this type of use.
Analysis of Potential Nongovernmental Constraints
Nongovernmental constraints consist of land costs, the environment, vacancy rates,
construction costs, and availability of financing.
Environmental Constraints
Land in Morro Bay is vulnerable to earthquakes, flooding, sea level rise, and tsunamis
and includes many sensitive habitat areas. Environmentally sensitive habitat areas
(ESHA) are mapped throughout Morro Bay’s coastal zone. The local coastal program
calls for additional protections for these areas including buffer areas between ESHA
and development. Geologic and seismic hazards are environmental constraints in
some areas of the city. There are seven seismically active faults that have been
identified in San Luis Obispo County and could potentially affect the planning area.
This could potentially require additional retrofits or more limited building capacity on
available parcels. In addition, sea level rise, flooding, and tsunamis constrain
development along vulnerable bluffs and low-lying areas near the coast. Flooding can
erode soil, damage landscaped areas and utilities, and compound other hazards, such
as landslides. Climate change is likely to increase impacts on property and residents.
All of these constraints have been accounted for within the realistic unit capacity on
the sites in the land inventory.
Seasonal Vacancies
Morro Bay experiences a higher seasonal vacancy rate, given the community’s strong
tourism industry. Tourists seeking seasonal homes skews the demand for housing,
making it challenging for Morro Bay employees to find available housing and driving
up rents and home prices. Rising housing prices decrease the stock of housing
affordable to Morro Bay residents, further spurring the statewide housing shortage.
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Blueprint Land Costs
Land costs vary substantially based on a number of factors. The main determinants to
land value are location and zoning, though the size of a parcel will also affect price.
Land that is conveniently located in a desirable area zoned for residential uses will
likely be more valuable and more expensive than a remote piece of land zoned for
agricultural uses.
A survey of listings on Redfin in 2019 showed that sales prices for undeveloped
residential lots ranged from $249,000 to $1,950,000. There were a total of 22 vacant
lots for sale as of December 2019.
Land costs present a significant constraint to the production of affordable housing in
the city.
The price of land in Morro Bay varies considerably depending on a number of factors,
including location, site conditions (i.e. difficulty of development) and availability of City
infrastructure. The city’s location with extensive frontage along the Pacific Ocean
makes Morro Bay an extremely desirable place to live. This creates a large demand for
land which, when coupled with voter-imposed growth controls, can significantly
increase the cost of developable land.
Construction Costs
Construction costs typically include site work and the material and labor to build a new
dwelling unit. Construction cost typically does not include the cost of financing, land
purchase, design services or permit fees. Important determinants of construction
costs include the quality of construction as well as the type of interior finishes and
equipment selected, material availabilty, the labor rates, and challenges of the site
conditons. Multiple-family residences such as apartments can generally be
constructed for slightly less on a per-unit basis than single-family residences because
of the economies of scale. According to knowledge from local builders and City staff, ,
home construction costs in 2020 were estimated at approximately $200-270 per
square foot (for a total average amount of $352,500) for a 1,500-square-foot unit.
Availability of Financing
The availability and cost to finance the construction or purchase of housing affects
housing sales prices and rental rates resulting in more or less affordable housing in
Morro Bay. When interest rates decline, it can make housing more affordable and as
a result, sales increase. The inverse is also true when interest rates increase. Over the
past several decades, there was dramatic growth in alternative mortgage lending
structures, including graduated mortgages and variable rate mortgages. These types
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Blueprint of loans allow homeowners to take advantage of lower initial interest rates or payment
schedules enabling the purchasers to qualify for larger home loans. However, both
graduated and variable rate mortgages are not ideal for households that live on tight
budgets that do not expect significant income growth in the future The availability of
variable rate mortgages has declined in the last few years due to greater regulation of
housing lending markets. Fixed interest rate mortgage remains the preferred type of
loan, especially during periods of low, stable interest rates. Table H-44 illustrates
interest rates as of February 2020. The table presents both the interest rate and the
annual percentage rate (APR) for different types of home loans. The interest rate is the
percentage of an amount of money which is paid for its use for a specified time, and
the APR is the yearly percentage rate that expresses the total finance charge on a loan
over its entire term. The APR includes the interest rate, fees, points, and mortgage
insurance and is therefore a more complete measure of a loan’s cost than the interest
rate alone. However, the loan’s interest rate, not its APR, is used to calculate the
monthly principal and interest payment.
Interest Rates
Interest APR
30-year fixed 3.625% 3.729%
15-year fixed 2.875% 3.095%
5-year adjustable rate 2.875% 3.644%
Source: www.wellsfargo.com, February 24, 2020
Notes: Conforming loan is for no more than $484,350. A jumbo loan is greater than $484,350.
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Blueprint ENERGY CONSERVATION OPPORTUNITIES
This section describes opportunities for conserving energy in existing homes as well as
in new residential construction which is one area of housing required to be discussed
in the Housing Element. According to the HCD Housing Element Building Blocks
website “planning to maximize energy efficiency and the incorporation of energy
conservation and greenbuilding features can contribute to reduced housing costs for
homeowners and renters, in addition to promoting sustainable community design and
reduced dependence on vehicles.” The factors affecting energy use, conservation
programs currently available in Morro Bay, and examples of effective programs used
by other jurisdictions are discussed.
Factors Affecting Energy Use
The factors that affect overall residential energy use include occupancy of homes,
population growth and trends, climate, availability of alternate energy sources,
condition and age of existing homes and individuals energy use habits when at home.
However, with an increase in awareness and related new conservation mandates and
technological advances the per capita consumption of energy can be decreased,
perhaps significantly. The price of energy also has a significant effect; the more
expensive it becomes, the more incentive people have to conserve.
Existing Conservation Programs
The following energy conservation programs have been implemented in Morro Bay:
• The California State Building Standards Code (specifically Title 24) requires that all new residential development comply with several energy conservation standards. The standards require ceiling, wall, and concrete slab insulation; vapor barriers; weatherstripping on doors and windows; closeable doors on fireplaces; no continuous burning gas pilot lights; insulated heating and cooling ducts; water heater insulation blankets; swimming pool covers and timers; certified energy-efficient appliances, etc. All new construction in Morro Bay must comply with Title 24.
• The California Energy Commission (CEC) has developed a set of energy efficiency guidelines for local planning agencies. As part of those guidelines, the CEC addresses building efficiency beyond the Title 24 standards. The CEC has updated these standards for 2019, and they went into effect on January 1, 2020. Some of the updates include solar photovoltaic panel for all new residential construction as well as demand responsive technology (battery storage, heat pump water heaters, etc.), and increased standards for air filters
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Blueprint in ventilation systems. The City of Morro Bay has implemented all requirements into their building code.
• The City “Green Building Incentive Program” provides incentives for green and energy-conserving projects. The City has a green building kiosk at the public services counter, maintained by SLO Green Build, that provides educational materials relating to green building and energy conservation. The City encourages residents to participate in energy efficiency retrofit programs by providing information, maintained by San Luis Obispo County Energy Watch, containing rebates and incentives relating to energy efficiency retrofits, at the public services counter.
• The City’s Planning Commision encourages applicants of residential development to consider adding solar power generation, electric vehicle charging, and other energy efficiency facilities to their developments.
• On January 14, 2014, the Morro Bay City Council adopted the City’s Climate Action Plan. The Climate Action Plan identifies strategies to reduce GHG emissions and focuses, in part, on reducing energy use from the built environment. The Climate Action Plan includes measures to encourage energy efficiency outreach and incentive programs, energy audit and retrofit programs, income-qualified energy efficient weatherization, incentives for exceeding Title 24 building energy efficiency standards, small scale on-site solar photovoltaic, and income-qualified solar photovoltaic.
• Income-qualified Morro Bay homeowners are also eligible for no-cost solar installations through the nonprofit group Grid Alternatives.
Discussion of Energy Conservation Techniques from Other Jurisdictions
Land use planning and zoning practices can help in conserving energy, through.
consideration of live/work housing to reduce commuting by providing
walkable/bikable routes to local jobs, good and services.
One example of a land use planning technique for energy conservation is to encourage
infill (development on vacant or underused lots) and compact, contiguous
development, which based on the available land in Morro Bay is already in effect. In
the future, as property is annexed to the city to meet an increased demand for housing,
the city boundaries should expand concentrically rather than allowing dispersed
development in outlying areas.
Compact development results in the secondary energy savings of embodied energy.
Embodied energy is the term used for the energy spent producing the materials and
finished products, such as sewer pipes, electrical lines, and paving materials.
Minimizing the length of necessary water, sewer, and electricity lines consumes less of
those products and decreases the total energy consumption.
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Blueprint Compact development also means there can be more convenient and accessible public
transit. The Regional Transit Authority (RTA) provides daily fixed-route service from
the Morro Bay area into Los Osos and San Luis Obispo, where transit riders can connect
with other countywide transit services. The City also provides a dial-a-ride service
within the city limits.
Efficiency in Individual Homes
The City uses the same energy efficiency standards for housing development outlined
in the 2019 Building Energy Efficiency Standards. A variety of public and quasi-public
programs could be made available in Morro Bay to assist homeowners and renters in
retrofitting to improve energy efficiency. The City currently provides the following
programs:
• Home Investment Partnership Program, which includes energy and water efficiency upgrades as eligible activities.
• Toilet Retrofit Program Rebates
• Water Efficient Washing Machine Rebate Program
The City should encourage energy efficiency in residential construction by offering
incentives and negotiating with developers to emphasize energy-efficient construction
practices. Developers and consumers often discard long-term savings potential in
favor of immediate cost savings. The City currently provides the following incentives:
• Green Building Incentive Program, which provides eligible projects with building and plan check fee rebates for achieving third-party green building certification, exceeding 20 percent of Title 24 requirements, renewable energy systems, and green roofs.
Energy-efficient, new residential construction can cut energy consumption in the home
by up to 50 percent. Energy-efficient home construction and retrofits should contain
some or all of the following:
• Double-pane windows (two panes of glass enclose a vacuum-tight space that does not allow heat and cold to transfer as quickly as it does in a window with a single pane of glass)
• Attic insulation greater than R-19 (soft, fiberglass insulation is given an “R” rating based on its capacity to insulate an area; a higher R value indicates greater insulation capability)
• Rigid attic insulation (generally a compressed Styrofoam insulation with an R-30 value)
• Additional wall insulation (older homes may not have insulated walls)
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Blueprint • Most efficient current indoor lighting option
• Dimmer switches and task lighting (dimmer switches allow lower lighting levels and less electricity use, while task lighting directs light to necessary areas without wastefully lighting a larger area)
• Most efficient current outdoor lighting option
• Lighting motion detectors that turn on lights only when they detect a person in the room or area
• Shade trees along southern and western exposures, and glazing to reduce the heat from windows on hot summer days
• Solar screens that reduce the amount of heat from solar radiation coming through windows
• Evaporative cooler, which uses less energy than air conditioner
• Microwave oven, which uses less energy than an electric or gas oven
• Weatherized windows and doors that do not have cracks to cause drafts
• Pools and/or hot tubs with integrated cleaning and heating systems (including pool covers, active solar heating, and efficient filters, pumps, and motors)
• Energy use automatic timers that provide energy use only when it is necessary
• Drip irrigation system that conserves water and reduces the energy needed for pumping water
• Drought-tolerant landscaping
• Active solar elements and passive solar design
• Energy-efficient appliances (in new construction and replacing older appliances in existing homes)
• Storm windows to cut back on heat loss through windows during the winter
• Reflective film on south-facing windows to minimize heat gain during the summer
• Individual meters for gas, electricity, and water (to encourage conservation) in multifamily units
The City can also employ policies that encourage solar energy technology in both
retrofits and new construction. There are two distinct approaches to solar heating:
active and passive. Active systems use mechanical equipment to collect and transport
heat–—the relatively common roof plate collector system used in solar water and
space heaters. Collectors can contain water or air that is pumped through conduits and
heated, then piped to the spaces to be heated or to a water heater tank.
Conversely, passive solar systems collect and transport heat through nonmechanical
means. Essentially, the structure itself becomes part of the collection and transmission
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Blueprint system. Certain types of building materials absorb solar energy and can transmit that
energy later. Passive systems often employ skylight windows to allow sunlight to enter
the room and masonry walls or walls with water pipes inside to store the solar heat.
This heat is then generated back into the room when the room cools in the evening.
Implementation Actions H-5.1.1 through H-5.1.4 are proposed to address energy
conservation and efficiency in the City.
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Blueprint
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Blueprint REVIEW OF PREVIOUS HOUSING ELEMENT
In an effort to ensure the policies and implementation programs included in the Housing Element are relevant to addressing the current problems of Morro Bay, an evaluation of achievements under the previous
Housing Element was undertaken (see Table H-45). This evaluation provided the basis for recommended modifications and the establishment of new objectives in the Housing Element.
Review of 2014-2019 Housing Element
2014-2019 Housing Element Goals, Objectives, Policies and Programs Status/Effectiveness
Continue/ Amend/ Delete in 2020-2028 Housing Element
Goal 1. Housing Supply
Objective: Provide a continuing supply of affordable housing to meet the needs of existing and future Morro Bay residents in all income categories.
Policy H-1 (Fair Share)
Maintain land use policies that allow residential growth consistent with the availability of adequate infrastructure and public services.
Program H-1.1
The City will give the highest priority for residential development to affordable
housing projects. These projects will automatically be allowed first priority for the allocation of new residential growth in each year. The priority for affordable units
will also include the allocation of water and other resources as consistent with the
Local Coastal Plan.
Responsible Agency/Department: Public Services Department
Time Frame: Annually
Funding: General Fund
In 2014, building permits were issued for new construction of 21 new units of low income senior rental housing in the downtown area. These units were completed and operational
at the end of 2015. Two other projects received planning approval during this time frame,
each of which included 2 rental or for-sale units affordable to moderate income
households. These inclusionary units were available in 2019. In addition, the City
advocates for affordable housing by making sure the public is aware of the density bonus
programs as well as the opportunities to create additional accessory dwelling units. As
new affordable housing projects are proposed, whether rental or homeownership, they
are given highest priority for City review/processing.
Amend and continue.
Program H-1.2
To ensure there is a sufficient supply of multi-family zoned land to meet the City’s
Regional Housing Needs Allocation (RHNA), the City will help facilitate lot
consolidations to combine small residential lots into larger developable lots by
annually meeting with local developers to discuss development opportunities and
incentives for lot consolidation to accommodate affordable housing units. As
developers/owners approach the City interested in lot consolidation for the
development of affordable housing, the City will offer the following incentives on a
project–by-project basis:
• Allow affordable projects to exceed the maximum height limits,
• Decrease setbacks, and/or
• Reduce parking requirements.
The City will also consider offsetting fees (when financially feasible) and
concurrent/fast tracking of project application reviews to developers who provide
affordable housing.
Responsible Agency/Department: Public Services Department
Time Frame: Ongoing, as projects are processed through the Planning Division.
Annually meet with local developers to discuss development opportunities and
incentives for lot consolidation.
Funding: General Fund
The City works with applicants on a case-by-case basis to identify areas where affordable housing units can be accommodated. The City's Affordable Housing Ordinance does
provide incentives for density bonuses and developer incentives, which include options
for development standards to be relaxed consistent with State housing law.
The City is currently working on processing the application for a project that includes lot
consolidation at 405 Atascadero Avenue. Incentives needed are height, additional bonus
density increase, setback reduction, and parking.
The City informs applicants of this option when they own contiguous parcels that are
appropriately zoned for a higher density when combined.
Amend and continue.
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Program H-1.3
To ensure affordable multi-family projects meet maximum densities, the City will continue to implement procedures with objective standards to promote flexibility in
development standards (height, parking, and setbacks) and promote the use of density bonuses to increase densities. The City will biannually review the multi-
family development standards in the Zoning Ordinance and revise as necessary to
ensure they don’t act as a constraint to the development of affordable housing in
the city. The City will give priority to projects that provide extremely low-, very low-,
and low-income housing.
Responsible Agency/Department: Public Services Department
Time Frame: Work with developers on a case-by-case basis to provide flexibility in
development standards and promote density bonuses to increase densities as
projects are processed through the Planning Division and Bi-annually review
the multifamily development standards in the Zoning Ordinance.
Funding: General Fund
The City is in the process of doing a comprehensive update of the General Plan, Local
Coastal Plan (LCP), and Zoning Ordinance to better accommodate this goal. The draft GP/LCP, known as Plan Morro Bay, was completed in 2018 and a draft was submitted for
review to the Coastal Commission. In addition, a draft Zoning Ordinance was also
submitted to Coastal Commission for review after being reviewed by the City's Planning
Commission. Draft policy language has been developed which establishes mixed use
overlay districts, which will allow increased residential development in the downtown area and other commercial areas that have the existing infrastructure to accommodate higher
density uses.
Also, the draft documents include new standards which would allow for increased building heights in the downtown area, specifically to assist with providing additional
housing opportunities while also maintaining the commercial core of the downtown area.
In addition, the City's Zoning Ordinance was amended previously and certified by the
Coastal Commission to prohibit single family residential development in high density
zones (R-3 and R-4) in order to ensure high density developments.
Projects since 2014 that have received a density bonus include the project at 555 Main Street, an affordable senior housing project approved with a density bonus that equated
to 53 units per acre. That project was completed and opened for occupancy in 2015.
Currently, a project proposed by the Housing Authority of San Luis Obispo (HASLO) has a
pending application for a 35-unit project that is asking for a density bonus that would
result in a project with a density equivalent to 37 units per acre. The project is proposed
to be 100 percent affordable.
Amend and continue.
Program H-1.4
In order to create a vibrant, pedestrian- and bicycle-friendly small urban atmosphere in the downtown area and ensure optimal access to services and public
transportation, the City will encourage the development of new high-density housing in and adjacent to the downtown commercial district. To facilitate this goal,
the City will inventory vacant and underutilized lots in and adjacent to the downtown business district, identify sites or areas where re-zoning to high-density
residential or mixed-use categories might be desirable and modify the City’s zoning
map as appropriate.
Responsible Agency/Department: City Council, Public Services Department
Time Frame: Conduct inventory by July 2018. If decision is made to revise Zoning
Ordinance, revise by December 2018.
Funding: General Fund
The City initiated preparation of a comprehensive update to the General Plan and Local
Coastal Program in 2016 including a zoning ordinance update. These updates will better address this program. Known as Plan Morro Bay, the effort has included a Downtown
Waterfront Strategic Plan that identified opportunity sites in downtown and along the
waterfront. The draft Zoning Ordinance identifies an area in the downtown where greater
heights (three stories) will be allowed to facilitate additional density in that area and make
mixed use residential/commercial developments more feasible. The draft policies and zoning changes encourage development of new high-density housing in and adjacent to
the downtown commercial district. Plan Morro Bay is expected to be adopted in 2020.
The City applied for funding under the Senate Bill (SB) 2 Planning Grant Program in Fall 2019. The grant work program includes an independent investigation into how the City
can better achieve this goal. The City has received a letter providing notice that they have
been awarded the grant funding. The work under the grant will begin in 2020.
Continue.
Program H-1.5
The City will consider establishing minimum residential density requirements for the R-3, R-4, and MCR zoning districts.
Responsible Agency/Department: City Council, Public Services Department
Time Frame: Prepare recommendation on whether to revise zoning by July 2018. If decision is made to
require minimum densities, revise Zoning
Ordinance by December 2018.
Funding: General Fund
The City's Zoning Ordinance was amended to prohibit single-family residential
development in high density zones (R-3 and R-4) in order to ensure high density developments. In addition, the draft Zoning Ordinance released in 2018 includes
standards addressing minimum density.
Additionally, the City, through the planning review process, has been requiring higher density development when discretionary review is required, and the site is capable of a
greater density through a mix of housing types.
Amend and continue.
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Blueprint 2014-2019 Housing Element Goals, Objectives, Policies and Programs Status/Effectiveness
Continue/ Amend/ Delete in 2020-2028 Housing Element
Policy H-2 (Water Resources)
Continue to pursue additional water resources identified in the Water Management Plan.
Program H-2.1
The City will, to the extent feasible, allocate water resources to allow maximum growth to full buildout consistent with limitations contained in the certified Local
Coastal Plan, General Plan, and Ordinance 266 as amended. At least annually, the
Public Services Department will provide an update to the City Council on available
water supplies, projected demand under the General Plan, and the status of
projects to ensure adequate supply to meet the needs of the community in
accordance with the Water Management Plan, the General Plan, and this element.
Responsible Agency/Department: Public Services Department
Time Frame: Annually
Funding: Water Fund
The City has continued to work on maintaining sufficient water resources. The City
prepared the OneWater Morro Bay Plan in 2018 to update data and combine planning efforts for water supply, wastewater, and stormwater infrastructure. The Community
Development Department gives annual updates to the City Council. This includes
identifying annual water allocations as required.
Additionally, the City continues to identify areas that require upgraded sewer and water
line infrastructure to accommodate the higher capacity service necessary to serve a higher density development. The City continues to work with affordable housing developers to determine options that will address the capacity shortfall issues short term or long term
without a delay in the project approvals.
Continue.
Policy H-3 (Funding)
To the extent feasible, solicit housing assistance funds from the state and federal governments in conjunction with nonprofit and for-profit developers to be used in the construction of new and rehabilitation of
existing secondary units and very low- and low- income housing units.
Program H-3.1
The City will continue to work with the private sector, nonprofit agencies and to secure funds and be supportive of others pursuing funds through state and federal programs for development of new lower-income housing and rehabilitation of
existing lower-income households (including mobile homes). As funding becomes
available, the City will prioritize a portion of the funds to encourage the
development of housing for extremely low-income households.
In addition, in light of budget constraints and reduced staffing levels, it is unlikely
that the City will pursue grant funds for affordable housing acquisition or new
construction projects. Housing grant funds will be pursued for energy efficiency
audits and retrofits and infrastructure repairs. Pursuit of funds for rehabilitation will
occur when it is determined there is a sufficient level of interest in this type of
program.
Responsible Agency/Department: Public Services Department Time Frame: Apply for funding annually
Funding: CDBG, HOME, others
Staff regularly engages with outside agencies to promote affordable housing goals in the city. This includes coordinating with cities and the County. Staff previously used Civic
Spark intern assistance—through funding by the County Air Pollution Control District and
the County’s Energy Watch Program—to increase awareness of energy efficiency audit
programs for residential development. The City applied for funding under the SB 2
Planning Grant Program in fall 2019 and received a letter providing notice that it has been
awarded the grant funding. The work under the grant will begin in 2020.
Amend and continue.
Policy H-4 (Methods)
Continue to explore alternative methods for increasing its affordable housing stock with the goal of providing adequate extremely low-, very low-, and low-income, senior, and ADA accessible housing.
Program H-4.1
The City will contact HCD, housing advocates, affordable housing providers, and other appropriate information resources on an annual basis in order to stay current
with the latest options for providing affordable housing.
Responsible Agency/Department: Planning Division
Time Frame: Annually
Funding: General Fund
The City reviews monthly newsletters from HUD, California Housing Consortium, and Peoples’ Self-Help Housing Corporation regarding funding programs and latest options
consistent with State law. City staff also attended a HUD-hosted workshop regarding
HOME, CDBG, and CalHome programs. Staff also attends conferences to stay abreast of
housing laws.
In addition, the City is participating in the Regional Infrastructure and Affordable Housing Strategic Action Plan (RIHP) being coordinated by San Luis Obispo County in order to
work on a regional approach to housing solutions.
Continue.
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Program H-4.2
Most recent housing developments in Morro Bay have not been constructed to the maximum densities allowed by zoning. Market conditions, bank financing, and
insurance requirements have favored the construction of single-family detached
houses. To increase housing supply and obtain densities closer to those envisioned
by zoning policies, the City will do the following:
Implement Section 17.21.70 of the City Zoning Code (Additional Incentives) that offers incentives for developing greater than the minimum densities in the multiple-family zones. The City is sensitive to the loss of multi-family- zoned land to
less intensive uses, particularly given the limited number of vacant multi-family sites remaining in Morro Bay and their potential contribution toward meeting the City’s
housing needs.
Responsible Agency/Department: City Council, Planning Division
Time Frame: Ongoing
Funding: General Fund
In 2015 and 2016 the City amended the entirety of the City's Affordable Housing
Ordinance, which is in the Zoning Ordinance Chapter 17.50 and offers a number of incentives for increasing density and providing flexibility. The ordinance was subsequently
certified by Coastal Commission as a Local Coastal Plan (LCP) amendment. Included in the Affordable Housing Ordinance update was amendment to prohibit single-family development in the R-3 and R-4 high density zoning districts in order to ensure
multifamily development is provided.
In 2018, the City completed a draft comprehensive Zoning Ordinance update which, consistent with State law, includes incentives for increasing density and adding a mixed
use overlay to allow for additional housing. The density bonus regulations will be updated to be consistent with State law as part of this update. As part of the work funded by the
SB funding, the City will also establish parameters for projects that may receive density
bonuses beyond the requirements of State law. In addition, the SB 2 grant will fund a
targeted study to create planned-unit developments with an overlay allowing mixed
residential uses with a variety of density ranges, resulting in an overall density significantly greater than the current zoning maximums. In addition to the 555 Main Street project,
another mixed commercial/retail and housing project was approved for a density bonus
at 600 Morro Bay Boulevard. That project was approved for a density bonus that equates
to 41 units per acre.
Amend and continue.
Policy H-5 (Housing Costs)
Ensure that the City’s adopted policies, regulations, and procedures do not add unnecessarily to the cost of housing, while still attaining other important City objectives.
Program H-5.1
The City will review its user charges for public services and facilities to ensure the
charges are consistent with the costs of improvements and maintenance.
Responsible Agency/Department: Public Services Department, Finance Department
Time Frame: Starting in 2015, then every three years
Funding: General Fund
The City reviews fees, etc. on an annual basis to ensure user charges for Community Development and facilities are consistent with the costs of improvements and
maintenance.
The City of Morro Bay’s fees are generally considered low compared to other cities in the county. The City reviews and updates fees annually through the Master Fee Schedule and
has updated or increased fees when it was necessary to ensure charges are consistent
with costs of improvements and maintenance. For deed-restricted affordable housing
projects that provide housing for lower-income households, the City will consider
alternate funding options, including waivers and/or deferral agreements, so that the
project is not constrained by the City charges.
Amend and continue.
Policy H-6.a (General Affordability)
Continue to require a percentage of new housing units built in the city be affordable to very low-, low-, and moderate-income households.
Policy H-6.b (Variable Density)
In order to encourage development of small units, development of a greater number of residential units than otherwise allowed under the existing land use and/or zoning designation may be permitted, provided that (1) at least 65 percent of the units are developed as studio or one-bedroom units; (2) the population density at full buildout of the project does not exceed the population density that corresponds with the
existing land use designation and/or zoning or 1 person for every 500 square feet, whichever is less; and (3) the proposed project complies with all applicable zoning regulations, except as modified by the
decision-maker through discretionary review.
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Program H-6.1
The City will continue to implement the inclusionary requirements of Section 17.50 of the Municipal code which requires that all new residential development projects
of 5 or more for-sale units provide a minimum of one unit or 10 percent of the total number of units, whichever is greater, to be affordable to families with incomes in
the very low-, low- or moderate-income ranges, depending on the needs of the
City at the time of approval. The lower-income units may be either for rent or for
sale, but shall remain affordable for at least 30 years, or such other term approved
by the City, consistent with state law.
Responsible Agency/Department: City Council/Planning Division
Time Frame: Ongoing, as projects are processed through the Planning Department
Funding: General Fund
The City reviews applications on a case-by-case basis for affordable housing potential.
Projects are conditioned accordingly to ensure compliance with the Affordable Housing Ordinance. Affordable units that have provided on-site for-sale units or for-rent units
have recorded covenants against the property to ensure compliance with the conditions
for a minimum of 30 years or more, depending on funding source.
The Morro Mist project includes two for-sale units, affordable to moderate-income households. These projects are currently finished and available for sale. The two units are
deed restricted for 30 years.
The Black Hills Villas project includes two rental units affordable to moderate-income
households.
Continue.
Program H-6.2
As an alternative to building inclusionary units, the City will allow a development to
pay an in-lieu fee. Currently, the fee amount is determined with the following
method: (construction cost x percentage of fee based on project size, where
construction costs include all expenses related to the development of housing
units, including land, construction, on- and off-site infrastructure, and associated
soft costs). The City will conduct an analysis on the current method to determine
whether the current fees are appropriate. If they are found to not be appropriate,
the City will conduct a nexus study. Once established, the in-lieu fees will be
collected and held in an affordable housing trust fund. To ensure any modifications
to the City’s Inclusionary Program as a result of the nexus study do not adversely impact market-rate housing, the City will also evaluate whether the Inclusionary
Program poses a constraint to the development of housing. If this is found to be the case, the City will revise the program to ensure it is not a constraint to
development.
Responsible Agency/Department: Public Services Department, Finance Department
Time Frame: Determine whether fees are appropriate and identify constraints (if needed) by June 2016; make any recommended revisions to the fee calculations
and Inclusionary Program by
December 2016
Funding: General Fund
The City's updated Affordable Housing Ordinance allows payment of an in-lieu fee where a developer/applicant can show that affordable units cannot be provided as part of the
proposed project. Developments which have paid in-lieu fees have been required to pay
all fees prior to issuance of any building permits. The in-lieu fees have been used to
provide both new affordable units elsewhere or preserve existing affordable units at risk
of conversion and thereby extend years of affordability.
The City plans to review the inclusionary fees and increase the projects that are subject to the fees, such as single-family homes over a certain size (i.e. over 2,000 sf of livable
space). Additionally, the City will revise the ordinance to make the payment in-lieu option harder to achieve (i.e. encourage actually providing the housing vs. payment of a fee.
Additionally, the income groups to be served should be reduced in general and
specifically for concessions received for proposed developments.
Amend and continue.
Program H-6.3 The City will continue to require affordable housing developments to be designed
consistent with the surrounding neighborhood in order to enhance the sense of
belonging to the community. Forms, materials, and proportions should be utilized
that are compatible with the character of the surroundings.
Responsible Agency/Department: City Council, Planning Division
Time Frame: Ongoing, as projects are processed through the Planning Division
Funding: General Fund
The City adopted Residential Design Guidelines in July of 2015 which included design criteria for both affordable housing developments and other residential development.
In addition, the City continues to require that affordable housing be consistent with surrounding housing types unless the surrounding design types are dated and/or do not
comply with the Residential Design Guidelines.
Affordable housing designs should not be substandard in appearance compared to the surrounding neighborhood, but can be more modern in design and function, especially
when that allows higher density and/or a better-designed housing unit.
Combine with Program H-6.4 and continue.
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Program H-6.4
The City will codify neighborhood preservation guidelines for affordable units in Section 17.28.200 of the Morro Bay Municipal Code when the Zoning Ordinance is
amended.
Responsible Agency/Department: City Council, Planning Division
Time Frame: August 2015
Funding: General Fund
The City adopted Residential Design Guidelines in July of 2015. The guidelines have not
been codified because to do so would also require an LCP amendment with the Coastal Commission. Approving the requirements as guidelines allowed for flexibility. The City is
currently updating its General Plan, LCP, and zoning, which will include a Community
Design Element. The draft Zoning Ordinance update includes Section 17.38.080, Design
Review Criteria, which refers to the 2015 Residential Design Guidelines. This section
specifically covers scale, massing (proportion and compatibility to surrounding homes),
site plan, exterior design, landscaping, and inclusion of sustainable features. Design
review authority is the Planning Commission for projects requiring Planning Commission
hearings, and the Community Development Director for all other projects.
Combine with Program H-6.3 and
continue.
Program H-6.5
The City may, on a case-by-case basis, allow for modifications/incentives to
development standards, such as common access driveways, building height
restrictions, parking, distance between buildings, setbacks, lot coverage, screening,
varying lot sizes, open space requirements, fast-track permitting, density bonuses,
variable densities on multi-family zones property, transfer of development credits,
fee assistance, and any other modifications/incentives or combination of
modifications/incentives, which are jointly agreed upon by the applicant and the
decision-maker, as an incentive for constructing specific affordable housing
projects. This is not intended to be an exhaustive list of modifications/incentives
available to the applicant and/or decision-maker. The City will prepare public outreach materials, including adding information to the City’s website to inform the public of a variety of types of modifications or incentives offered.
Responsible Agency/Department: Public Services Department
Time Frame: Ongoing, as projects are processed through the Planning Division
Funding: General Fund
The City works with applicants on a case-by-case basis to identify areas where development standards may be relaxed in order to provide the maximum number of
housing units, pursuant to the City's Affordable Housing Ordinance, which allows for
development incentives in exchange for enhanced affordability standards. In addition, the
City's current Zoning Ordinance includes a Planned Development (PD) overlay on certain properties in town, which also allows for modification or deviation of standards by
Planning Commission upon findings of public benefit.
Continue.
Program H-6.6
The City will consider amending the Community Housing Ordinance to require that housing units developed under the terms of this code section be priced for sale or
rental to persons of moderate or lower income.
Responsible Agency/Department: City Council, Public Services Department
Time Frame: Prepare recommendation on whether to adopt an ordinance by July
2018. If decision is made to adopt an ordinance, adopt by December
2018.
Funding: General Fund
In March 2015, the Community Housing Ordinance was replaced by the Affordable
Housing, Density Bonus, and Incentives Ordinance. Delete.
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Policy H-7 (Housing Trust Fund)
Develop a Housing Trust Fund to be used for the development of affordable housing projects.
Program H-7.1
This fund will be used to assist nonprofit and for-profit developers to construct
lower-income housing, purchase land, write down land or financing costs,
rehabilitate or preserve existing units, prepare other implementation measures
consistent with this element, and/or monitor housing policies and programs on an
ongoing basis.
Assuming that the current market conditions will continue to exist during the 5-year Housing Element time frame, the City estimates that it will assist two to seven
units.
Responsible Agency/Department: Public Services Department, Finance Department
Time Frame: Modify by 2012
Funding: General Fund
City staff sits on the board of the County Housing Trust Fund and coordinates with other public agencies and with private and nonprofit developers of affordable housing to
advocate for and support affordable housing. City in-lieu fees have been used to preserve existing affordable units that were at risk of conversion. In 2018, an award of $50,000 was approved as a local match for a tax credit application for the Sequoia Street Apartment, a
low- and very low-income family rental development. This assisted with extending years
of affordability and preserves existing affordable units at risk within the next few years.
The period of affordability for that project has been extended to 2053.
Amend and continue.
Policy H-8 (Mixed Housing Types)
Encourage the mixing of affordable housing throughout the community rather than concentrating affordable units in a few locations.
Program H-8.1
The City will allow the conversion of older motels to residential use, subject to discretionary review, outside the Visitor-Serving Commercial (C-VS) and Waterfront
(WF) zones. Criteria for approving residential uses will be stated in the Zoning
Ordinance. These conversions will also receive a priority in the unit allocation list.
Responsible Agency/Department: City Council, Planning Division
Time Frame: Ongoing; codify criteria by August 2015
Funding: General Fund
In compliance with SB 745, the City Zoning Ordinance includes supportive and transitional
housing as a residential use in residential zones and mixed use zones that allow residential uses, with the same review processes as any residential use in that zone—i.e., if
a duplex is allowed with an administrative review process, a supportive/transitional housing application would allow the same. An application has been submitted for conversion of an older motel to provide supportive housing. The project has 27
residential units available to a population who needs housing and programs to assist with becoming self-supporting. The program is voluntary. The project is anticipated to be
approved in early 2020.
Continue.
Policy H-9 (Mixed Use)
Continue to promote a policy of mixed uses by allowing housing in conjunction with compatible commercial uses in appropriate mixed-use designations located throughout the city. The allowance of these
mixed-use designations will require additional findings to ensure new projects do not change the character of the neighborhood.
Program H-9.1
The City will develop criteria for determining the appropriate compatible mix of residential and commercial development to ensure neighborhood consistency.
Responsible Agency/Department: Public Services Department
Time Frame: Codify criteria by June 2016
Funding: General Fund
Draft Plan Morro Bay addresses this goal by providing clearer policies. The draft Zoning Ordinance also provides this criteria and establishes a mixed use overlay to allow for
additional residential development in commercial areas. In addition, the draft Zoning
Ordinance includes an area in the downtown core that will allow increased building
heights to encourage higher density for residential without compromising the desire and
need for ground-floor retail/commercial development.
Amend and continue.
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Policy H-10 (Secondary Units)
Allow for the development of secondary housing units as an affordable housing option throughout the city.
Program H-10.1
To comply with AB 1866, the City will continue to permit secondary dwelling units
ministerially (by right) in all residential zones. An administrative coastal
development permit, which does not require approval at a Planning Commission
hearing but does require noticing, is required for new secondary units in or outside
the coastal appeals jurisdiction.
Responsible Agency/Department: Planning Division
Time Frame: Ongoing, as projects are processed through the Planning Division
Funding: General Fund
The City implements State law with regard to accessory dwelling units. Because the city is located in the coastal zone, an ADU requires an Administrative Coastal Development
Permit but does not require Planning Commission approval. The City also encourages
ADUs when communicating to the public or providing guidance on potential housing
projects. The City is currently updating its Zoning Ordinance. Once adopted, the ADU
regulations will be consistent with current State law for ADUs.
Amend to reflect current State requirements and continue.
Goal 2: Conservation and Rehabilitation
Objective: Conserve and rehabilitate the city’s current stock of affordable housing.
Policy H-11 (Section 8 Subsidies)
Continue to maintain Section 8 rent subsidies.
Program H-11.1
The City will coordinate its efforts with the appropriate agencies to continue
receiving Section 8 subsidy monies.
Responsible Agency/Department: Public Services Department
Time Frame: Ongoing, 2014–2019
Funding: General Plan
The City supports Section 8 housing subsidies and has continued to coordinate with the
Housing Authority of San Luis Obispo (HASLO) to administer Section 8 Housing Choice Vouchers in the city.
Amend and continue.
Policy H-12 (Special Needs Groups)
Provide financial assistance for rehabilitation of homes for elderly, disabled, and disadvantaged persons.
Program H-12.1
The City will encourage local private organizations to assist elderly, disabled, and disadvantaged persons in the repair and rehabilitation of their housing.
Responsible Agency/Department: Public Services Department
Time Frame: Meet with organizations annually
Funding: CDBG, HOME, other funding sources to be determined
Staff regularly engages with outside agencies to promote affordable housing goals in the
city.
Amend and continue.
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Policy H-13 (Minimizing Impact)
Ensure that public projects are planned to minimize their impact on the quality and stability of residential neighborhoods.
Program H-13.1
The City is considering adopting neighborhood compatibility standards for new
developments in existing neighborhoods. The City will consider developing a
standard set of criteria to use in determining whether proposed projects are
compatible with the existing neighborhoods in which they are proposed, the
purpose of which is to give project proponents clear direction for project design
and to provide staff and the Planning Commission with clear guidelines for
decision- making. These criteria could include a pre-application process to provide
clear direction for the project.
Responsible Agency/Department: Public Services Department
Time Frame: Consider developing standards and adopt standards if determined
they are needed by June 2015
Funding: General Fund
The City developed draft Residential Design Guidelines in 2015. The City also developed design guidelines as part of the Downtown Waterfront Strategic Plan in 2018. Draft Plan
Morro Bay calls for the development of citywide design guidelines and design standards
in areas that do not already have them.
Delete.
Policy H-14 (Mobile Home Park Upkeep)
Maintain the city’s mobile home parks.
Program H-14.1
The City will promote the continued upkeep of existing economically viable mobile home parks by keeping park owners informed of opportunities through HCD to
maintain mobile home parks through energy retrofits, housing rehabilitation, and
weatherization programs.
Responsible Agency/Department: Public Services Department
Time Frame: Inform owners every two years beginning in 2015
Funding: General Fund
The City works with local mobile home park owners on a case-by-case basis to assist with
park improvements. In 2018, the Planning Commission approved Coastal Development permits for two separate parks where development was proposed. In addition, other
mobile home parks have received building permits from HCD for miscellaneous
improvements to update and improve the parks. The City is currently preparing a mobile
home study to identify funding sources and mechanisms to maintain the City’s mobile
home housing stock.
Continue.
Program H-14.2
The City will when feasible apply for a grant to conduct a feasibility study to determine the possibility of a mobile home park conversion program. The study will
include an inventory of the number of units that are RVs, trailers, or mobile homes on a chassis (not on permanent foundation), the condition of the units, and the
identification of opportunities to replace them with new permanent affordable
housing units.
Responsible Agency/Department: Public Services Department
Time Frame: As funding sources become available; consider applying for funds by
October 2014
Funding: CDBG, HOME, other funding sources to be determined
The City has not developed an inventory of mobile home parks or applied for grant
funding. The City is currently preparing a mobile home study, which will provide some of the information called for in this program, including identifying funding sources. Full
implementation of this program has been infeasible due to the City's undertaking of a
comprehensive update of its General Plan/ Local Coastal Plan (Plan Morro Bay) and
Zoning Ordinance, which is a multiyear effort.
Delete.
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Goal 3: Protect and conserve existing affordable housing stock in Morro Bay.
Objective: Preserve all affordable housing units in the city.
Policy H-15 (At-Risk Units)
Cooperate with other governmental, for-profit, and nonprofit entities to ensure no lower- income residents are adversely impacted by the conversion of existing affordable housing projects to market-rate rents.
Program H-15.1
The City will maintain a list of all dwellings in the city that are subsidized by
government funding or low-income housing developed through local regulations
or incentives. The list will include, at least, the number of units, the type of
government program, and the date on which the units may convert to market-rate
dwellings. No units have been identified as at-risk of converting to market rate
within 10 years of the beginning of the 5th cycle Housing Element planning period.
The City will require all property owners to provide at least 2 years’ notice prior to
the conversion of any units for lower-income households to market-rate units in
any of the following circumstances:
• The units were constructed with the aid of government funding.
• The units were required by the City’s Affordable Housing Program.
• The project was granted a density bonus.
• The project received other incentives.
Such notice will be given at least to the following:
• The City
• HCD
• Housing Authority of the City of San Luis Obispo
• Residents of at-risk units
• Any others deemed appropriate
Responsible Agency/Department: Public Services Department
Time Frame: Ongoing
Funding: General Fund
The City maintains a list of subsidized housing units. Information regarding properties at risk of conversion is included in this Housing Element (assisted units are listed in Chapter
2). Since the adoption of the previous Housing Element, the properties that are closest to
affordability expiration have been in contact with the City and have submitted for tax
credits to finance project renovations. In addition, the City Council has approved the use
of the affordable housing in-lieu funds to assist with local match and local support to
extend the affordability commitment.
Amend to reflect updates to state law and continue.
Policy H-16 (Conversion to Condominiums)
Continue to protect existing lower-income apartment units from loss through conversion to condominiums.
Program H-16.1
The City will continue to comply with Government Code Section 65590 et seq. that sets forth the requirements for conversions, demolitions, and replacement housing
in the coastal zone.
Responsible Agency/Department: Public Services Department
Time Frame: Ongoing, 2014–2019
Funding: General Fund
The City currently implements Government Code Section 65590. Continue.
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Policy H-17 (Demolished Units)
Require the replacement of very low-, low-, and moderate-income housing that is demolished with similar affordable housing.
Program H-17.1
The City will require the abatement of unsafe structures, while giving property
owners ample time to correct deficiencies. Residents displaced by such abatement
should be provided relocation assistance.
Responsible Agency/Department: Public Services Department
Time Frame: Ongoing, 2014–2019
Funding: General Fund
The City currently follows this requirement. In addition, since the last Housing Element was adopted, the City has added two part-time code enforcement officers to assist the
Building Division with code violations related to Municipal Code requirements.
Amend and continue.
Goal 4: Special Needs
Objective: Meet the housing needs of special groups of Morro Bay residents, including seniors, disabled persons, and single parents.
Policy H-18 (Senior Housing)
Provide more senior housing opportunities throughout the city.
Program H-18.1
The City will utilize CDBG and other state or federal monies to assist in the
development of lower-income senior rentals.
Responsible Agency/Department: Public Services Department
Time Frame: Apply for funding as Notices of Funding Availability (NOFA) are
released
Funding: CDBG/federal monies
The City is a member of the County of San Luis Obispo's Urban County Consortium, which receives federal entitlement funds from the CDBG and HOME programs. In 2016, the City awarded in-lieu funds to Peoples’ Self-Help Housing as local match for a state tax credit
application to preserve 40 units of existing low-income senior rentals (HUD Section 202).
This funding also allowed a major renovation of the property in 2016 to refurbish the low
income senior rental housing apartments.
Continue.
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Policy H-19 (Special Housing Needs)
Promote the development of special housing needs, such as transitional housing, housing for seniors, housing for persons with physical, developmental, or mental disabilities, farmworker housing, and housing for extremely low-income persons.
Program H-19.1 (Developmental Disability Needs)
The City will work with housing providers to ensure that special housing needs and the needs of lower-income households are addressed for seniors, large families,
female-headed households with children, persons with disabilities and
developmental disabilities, extremely low-income households, and homeless
individuals and families. The City will seek to meet these special housing needs
through a combination of regulatory incentives, zoning standards, new housing
construction programs, and supportive services programs. The City will promote
market-rate and affordable housing sites, housing programs, and financial
assistance available from the City, county, state, and federal governments. In addition, as appropriate, the City will apply for or support others’ applications for funding under state and federal programs designated specifically for special needs
groups.
Responsible Agency/Department: Public Services Department, City Council
Time Frame: Seek funding opportunities beginning in 2014–2015 and annually
thereafter; all program components are ongoing
Funding: Federal Housing Opportunities for Persons with AIDS, California Child Care Facility
Financing Program, and other state and federal programs designated specifically for special needs groups
The Planning Commission has conditioned apartment projects to provide a fully
accessible apartment unit and require marketing efforts to attempt to rent the unit to a suitable tenant who can benefit from the accessible features.
Continue.
Policy H-20 (Family Housing)
Promote the development of special housing needs, such as transitional housing, housing for seniors, housing for persons with physical, developmental, or mental disabilities, farmworker housing, and housing for extremely low-income persons.
Program H-20.1
As part of the process of assessing a proposed residential development, the City
will evaluate the potential to incorporate other uses within the project or in
conjunction with the project, including, but not limited to, project-serving retail, job centers, or services such as childcare.
Responsible Agency/Department: Public Services Department
Time Frame: As projects are processed through the Planning Division
Funding: Affordable Housing Fund
The City’s Zoning Ordinance allows for incentives if a development provides community
space or childcare for residents and neighbors. Housing for large families has not been identified as a need in the draft Housing Element or by the City. This program will not be
continued.
Delete.
Goal 5: The Homeless
Objective: Reduce the incidence of homeless persons in the community, work with other cities, the County, and various nonprofits to continue to operate a convenient homeless shelter for the region.
Policy H-21 (Regional Homeless Shelters)
Participate in the operations and maintenance of the regional homeless shelter facility. The City will continue to provide information about housing opportunities and services for homeless persons through the Police Department as well as at City Hall.
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Program H-21.1
The City will cooperate with other cities, the County, and other agencies in the development of programs aimed at providing homeless shelters and related
services, including medical service for walk-in cases. The City will continue to
implement the regional plan to end homelessness entitled “Housing for All: A Plan
to End Homelessness.”
Responsible Agency/Department: Public Services Department
Time Frame: Ongoing; meet with homeless service providers and other county
jurisdictions
annually
Funding: General Fund
The 40 Prado Homeless Campus opened in San Luis Obispo in 2018. It is operated by
Community Action Partnership of San Luis Obispo (CAPSLO) and provides a regional shelter and a day center and services to homeless people. In Morro Bay, supportive and
transitional housing in existing facilities (such as older motels) provides housing for
homeless and programs to help educate and rehabilitate residents.
Continue.
Goal 6: Energy Conservation
Objective: Increase the efficiency of energy use in new and existing homes, with a concurrent reduction in housing costs to Morro Bay residents.
Policy H-22 (Energy Efficiency Requirements)
Require all new dwelling units to meet current state requirements for energy efficiency. The retrofitting of existing units will be encouraged.
Program H-22.1
The City will continue to implement Title 24 of the California Code of Regulations on all new development and will continue to ensure that local building codes are consistent with state mandated or recommended green building standards. The
City will also continue to encourage the use of additional innovative energy
conservation techniques such as active and passive solar systems, orientation, and
project layout in an endeavor to further reduce dependence on outside energy
sources. The City will make handouts and literature available to the public outlining
measures that they can take to reduce energy use.
Responsible Agency/Department: Building Division, Public Services Department
Time Frame: Ongoing; ensure consistency with state green building standards
triennially when the
California Building Code is adopted
Funding: Plan check fees and General Fund
The City continues to implement Title 24 of the California Code of Regulations and ensures that local building codes are consistence with State-mandated and -
recommended green building standards. The City strongly encourages solar, EV charging
stations, and other innovations to improve design and function in residential projects.
Amend and continue.
Program H-22.2
The City will work with the Pacific Gas and Electric Company (PG&E) and the
Southern California Gas Company to encourage existing residents to participate in
energy efficiency retrofit programs. The City will consider sponsoring an energy
awareness program in conjunction with PG&E and the Southern California Gas
Company to educate residents about the benefits of various retrofit programs.
Responsible Agency/Department: Public Services Department
Time Frame: Ongoing, as projects are processed through the Planning Division
Funding: General Fund/PG&E
This program did not require the City involvement because in the last five years much has changed with energy efficiency awareness and utility providers are creating programs and
incentives that are directly available to citizens. Additionally, PG&E and So Cal Gas provide residents with statistics on how their energy use compares to the average and an
‘efficient’ home, as well as providing tips and recommendations for reductions in energy
use.
Delete.
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Program H-22.3
To promote residential energy efficiency retrofits, the City will pursue membership in a property assessed clean energy (PACE) program. PACE programs allow
property owners to install water and energy efficiency and renewable energy
projects with low interest financing that rides with the property instead of the
homeowner. The City will coordinate with the County or statewide PACE program
providers to identify and enroll in an appropriate program.
Responsible Agency/Department: Public Services Department
Time Frame: Enroll in a PACE program by 2015
Funding: General Fund
As of 2019 PACE can loan directly to private households in California. Delete.
Program H-22.4
The City will consider adopting an ordinance to require all new residential construction to incorporate active or passive solar energy features or other
renewable energy generating systems.
Responsible Agency/Department: City Council, Public Services Department
Time Frame: Prepare recommendation on whether to adopt an ordinance by
December 2016. If decision is made to adopt an ordinance, adopt by August
2017.
Funding: General Fund
The City has not adopted an ordinance to require all new residential construction to
incorporate active or passive solar energy features or other renewable generating
systems. However, it is a strong recommendation. The City is following requirements in
the State building code to ease requirements for homeowners to add solar which is a
requirement in the 2019 building code.
Delete.
Program H-22.5
The City will consider establishing a rotating fund to provide low-interest loans to
Morro Bay residents for the purpose of:
• Installing solar or other renewable energy generating systems on existing
residential structures, or
• Retrofitting existing residential structures with insulation, double pane
windows, passive solar features, or other features that will materially reduce
energy consumption.
Initial capitalization of the fund might be provided by a local tax on the sale of
electricity, natural gas, propane, automotive fuels, or other traditional energy industries, or by an environmental mitigation fee charge levied on parcels occupied
by facilities for electrical generation or transmission, natural gas extraction or
transportation, or production or distribution of liquefied propane.
Responsible Agency/Department: City Council, Public Services Department, Finance
Department
Time Frame: Research program by December 2015
Funding: General Fund or County of San Luis Obispo funding sources
The City has not established a rotating fund to provide low-interest loans to Morro Bay
residents to do solar energy or other energy efficiency retrofits. Delete
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City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-127
Blueprint 2014-2019 Housing Element Goals, Objectives, Policies and Programs Status/Effectiveness
Continue/ Amend/ Delete in 2020-2028 Housing Element
Program H-22.6
The City will consider adopting an ordinance that would require, as a condition for approval of any permit for the expansion or modification of a residential dwelling
within the City of Morro Bay, that the entire residence, including both the existing
structure and the proposed addition or modification be brought into compliance
with the currently-enacted requirements of Title 24 of the California Code of
Regulations to the greatest degree feasible. In the event that full compliance with
the requirements of Title 24 is asserted to be less than feasible by the applicant for
such permit or by the Planning Department of the City of Morro Bay, approval of
the requested permit should be granted only by action, in a duly-noticed public
hearing, of the Planning Commission or City Council of the City of Morro Bay.
Responsible Agency/Department: City Council, Public Services Department
Time Frame: Prepare recommendation on whether to adopt an ordinance by
December 2016. If decision is made to adopt an ordinance, adopt by August 2017.
Funding: General Fund
The City has not adopted this ordinance. This program doesn’t make sense under the
current 2019 Building Code. Delete.
Policy H-23 (Energy-Efficient Land Use)
Encourage energy efficiency in new land use patterns, to the extent feasible.
Program H-23.1
The City will continue to implement the subdivision ordinance which requires that
new subdivisions incorporate design features reducing vehicle dependence and
encouraging pedestrian and bicycle circulation through the development of transit
stops and bicycle and pedestrian routes, where feasible and appropriate.
Responsible Agency/Department: Public Services Department
Time Frame: As projects are processed through the Planning Division
Funding: General Fund
Incorporating these design features continues to be a goal in subdivisions. However, is
not well received by neighbors of proposed projects. Projects are encouraged to design for more pedestrian- and bicycle-dependent travel.
Continue.
Goal 7: Equal Opportunity
Objective: Ensure equal access to sound, affordable housing for all persons regardless of race, creed, age, or sex.
Policy H-24 (Fair Employment and Housing)
Promote the enforcement of the policies of the California Department of Fair Employment and Housing. The City declares that all persons, regardless of race, creed, age, or sex, will have equal access to sound and affordable housing.
Program H-24.1
The City will continue to provide information from the California Department of Fair Employment and Housing regarding housing and tenant rights at City Hall and
other prominent locations in the city, including the Public Services Department. The City will refer persons experiencing discrimination in housing to California Rural
Legal Assistance (CRLA).
Responsible Agency/Department: Planning Division and all City departments that receive complaints
Time Frame: Ongoing
Funding: General Fund
The City refers persons experiencing discrimination to California Rural Legal Assistance
(CRLA). The City does not receive many complaints/inquiries. The City has forms available at the front kiosk for tenant complaints and substandard housing reporting and the
Department of Fair Employment and Housing brochure on complaints and housing
rights/protections.
Continue.
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3-128 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint 2014-2019 Housing Element Goals, Objectives, Policies and Programs Status/Effectiveness
Continue/ Amend/ Delete in 2020-2028 Housing Element
Goal 8: Public Participation
Objective: Ensure participation of all economic segments of the community in the development of housing policy for Morro Bay.
Policy H-25 (Public Participation)
Encourage the participation of all citizens of Morro Bay in the development of housing policies for the city.
Program H-25.1
Prior to any public hearing where the City is considering amending or updating the
housing element, the City will directly notify People’s Self-Help Housing
Corporation, the Housing Authority of the City of San Luis Obispo, California Rural
Legal Assistance, the Chamber of Commerce and Business Bureau, and local
churches, as well as post notices on the City’s website and at significant public
locations.
Responsible Agency/Department: Public Services Department
Time Frame: Ongoing
Funding: General Fund
The City makes every effort to provide more than adequate public notification related to changes in affordable housing goals/programs. Delete.
Program H-25.2
The City will advocate for affordable housing by educating the Planning
Commission, the City Council, and the public on the benefits of affordable housing.
Responsible Agency/Department: Public Services Department, City Manager,
Community Groups
Time Frame: Ongoing
Funding: CDBG/General Fund
The City advocates for affordable housing through education of members of the city’s
Planning Commission, City Council, and the general public regarding the benefits of affordable housing.
Delete.
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Blueprint GOALS, POLICIES, AND IMPLEMENTATION
ACTIONS
State law requires that the Housing Element contain a “statement of the community’s
goals, quantified objectives and policies relative to the maintenance, improvement and
development of housing.” This chapter describes the proposed goals, policies, and
implementation actions of the Housing Element for the City of Morro Bay. This chapter
presents regional and City-specific sets of actions in the regional and the City-only
sections below.
Dates shown in the “Time Frame” indicate the scheduled implementation of the
implementation action, which will be in effect from that time through the duration of
the planning period. The term “lower-income groups” is interchangeable with the
extremely low-, very low-, low-, and moderate-income categories.
REGIONAL VISION FOR HOUSING
In early 2020, local agencies adopted a San Luis Obispo Countywide Regional Compact to establish a united regional framework to unlock our potential to
develop an adequate supply of housing and infrastructure that support our
economic prosperity.
OVERVIEW
San Luis Obispo County 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 the region’s significant issues including inadequate supply of affordable housing and resilient water, wastewater, and transportation infrastructure and resources.
The County and all seven Cities are working collaboratively to develop the region’s first Regional Infrastructure and Housing Strategic Action Plan (Regional Plan) that will identify actions to address these issues. A key component of the Regional Plan is the integration of efforts to address critical housing and related infrastructure needs. As part of the Housing Element update process, representatives of the County, seven Cities and San Luis Obispo Council of Governments (SLOCOG) developed this Chapter to showcase the ongoing commitment of each agency to this collaborative effort. This section presents a regional vision and policies focused specifically on fostering regional collaboration to plan and develop housing and supportive infrastructure.
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3-130 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint ALIGNMENT WITH REGIONAL COMPACT
This effort is guided by the San Luis Obispo Countywide Regional Compact (Regional Compact). The Regional Compact, adopted by each jurisdiction in early 2020, outlines six shared regional goals to guide collaborative resolution of underlying housing and infrastructure needs:
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.
POLICIES
It will take regional collaboration and local actions to realize the vision and goals outlined in the Regional Compact. Below is an initial list of aspirational regional policies that further the Regional Compact vision, in addition to local policies. By listing these below, it does not mandate any individual agency to implement actions, but rather offers ways that the County, cities, SLOCOG, and other partners can consider moving forward, together. In addition, and consistent with each Housing Element cycle, each of the seven cities and the County has the opportunity to choose to implement local policies and programs that help to support their achievement of its RHNA, and if an agency chooses to, can also support the Regional Compact vision and goals in a way that works for its jurisdiction and community. The section below includes local goals, policies, and implementation actions for Morro Bay’s anticipated actions during this Housing Element cycle.
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Blueprint R-1: Promote awareness and support of regional efforts that further housing and infrastructure resiliency by utilizing community engagement, and consistent and transparent communication.
R-2: Encourage an adequate housing supply and resilient infrastructure, services, and resources to improve the balance of jobs and housing throughout the Region.
R-3: Develop inter-agency partnerships as appropriate to implement goals and policies related to housing and infrastructure.
R-4: Coordinate State, Federal, and other funding opportunities for housing and infrastructure development throughout the Region.
R-5: Encourage developers to sell newly constructed housing units to individuals residing or employed within the area of the development (a city or the County) first before selling to individuals from outside the County, to promote local preference.
R-6: Encourage rental units be prioritized for long term residents rather than short term users or vacation rentals.
R-7: Support housing development that is located within existing communities and strategically planned areas.
R-8: Encourage regional collaboration on a menu of housing types, models, and efforts to support streamlined approvals for such developments (i.e. Accessory Dwelling Units, etc.).
MOVING FORWARD
The County, cities, SLOCOG, and other partners engaged in housing and infrastructure development will continue to collaborate on efforts moving forward – recognizing the benefits of working together to achieve an enduring quality of life among the region’s people, sectors and interests. This ongoing collaboration will include learning from each other and sharing possible tools, policies and actions that can allow the collective region to move towards our adopted Regional Compact vision. Ongoing collaborative efforts will be described in the Regional Plan, anticipated to be complete in 2021, and related regional efforts will live outside of each individual agency’s Housing Element.
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3-132 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint CITY GOALS AND POLICIES
GOALS AND POLICIES
GOAL H-1: Housing Supply: Encourage creation of new housing opportunities by
providing a continuous supply of affordable housing to meet the needs of
existing and future Morro Bay residents in all income categories.
POLICY H-1.1: Live and Work in Morro Bay. Create housing opportunities suitable for
people who work in Morro Bay, including specifically designed live/work
developments.
POLICY H-1.2: Development Incentives. Provide incentives for developments that
propose higher density, affordable, or special needs housing. Incentives may
include financing assistance through grants or other funding pools available
to the City, providing flexibility in development standards, fee, or public
improvement deferrals.
POLICY H-1.3: Inclusionary Housing Requirements. Continue the Inclusionary
Housing Program, strongly encourage deed-restricted, affordable housing
commitments in new developments as opposed to accepting in-lieu fees.
Consider changes in the ordinance to increase applicability to larger single-
family homes and increase the amount of the applicable in-lieu fees.
POLICY H-1.4: Variable Density/Mixed Income Planned Unit Developments.
Designate selected large parcels to be zoned to allow a variety of housing
types/densities/designs, with focus on community, common shared
features, and using the difficult-to-develop portion of the sites as
open/natural areas. Encourage programs for rental and for-sale housing to
very low-income populations to exceed inclusionary standards.
POLICY H-1.5: Water/Sewer Infrastructure. Upgrade and replace aging systems to avoid
any development restrictions based on availability of City-provided utilities.
POLICY H-1.6: ADU / Tiny Homes / Microhomes. Promote and encourage the
development of ADUs as an affordable option throughout the city. Create
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City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-133
Blueprint policy on tiny homes and microhomes as an additional tool for creating
higher density to manage the impact to existing neighborhoods.
POLICY H-1.7: Mixed Use Development. Continue to promote a policy of mixed uses by
allowing housing in conjunction with compatible commercial uses in
appropriate mixed-use designations throughout the city. The allowance of
these mixed-use designations will require additional findings to ensure new
projects do not change the character of the neighborhood.
IMPLEMENTATION ACTIONS
IMPLEMENTATION ACTION H-1.1.1
The City will make affordable housing projects the highest priority of residential development.
Affordable housing projects will have priority over any limitations in the allocation of new
residential growth in each year as well as the first allocation of water and other resources if
availability is limited, as is consistent with the Local Coastal Plan.
Responsible Agency/Department: Community Development Department
Time Frame: Annually
Funding: General Fund
IMPLEMENTATION ACTION H-1.1.2
To ensure there is a sufficient supply of multi-family zoned land to meet the City’s Regional
Housing Needs Allocation (RHNA), the City will assist developers with proposals to combine
small residential lots into larger developable lots, allowing a higher density residential development
and more efficient use of the available vacant land. The City will continue to meet with local
developers to discuss development opportunities and incentives available for lot consolidation
and/or in general to facilitate development of affordable housing units. The following incentives
will be considered when required for affordable housing development feasibility on a project-by-
project basis:
• Height exceptions
• Reduced setbacks
• Reduce parking requirements
• Allow greater density bonuses
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3-134 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint The City will monitor fees and their impacts on affordable housing development. The City will
also consider waiver or deferral of certain permit and/or impact fees and will make every effort
to fast-track project applications for affordable housing projects.
Responsible Agency/Department: Community Development Department
Time Frame: Ongoing, as projects are processed through the
Planning Division. Annually meet with local
developers to discuss development opportunities
and incentives for lot consolidation.
Funding: General Fund
IMPLEMENTATION ACTION H-1.1.3
To ensure affordable multifamily projects meet maximum densities, the City will continue to
implement objective project reviews to promote flexibility in development standards (height,
parking, and setbacks) and will continue to promote the use of density bonuses and developer
incentives to increase densities. Following adoption of the comprehensive Zoning Ordinance
update, the City will biannually review the multifamily development standards in the Zoning
Ordinance and revise as necessary to ensure they do not act as a constraint to the development of
affordable housing in the city. The City will give priority to deed-restricted, rental or for-sale,
affordable housing projects that provide housing for extremely low-, very low-, and low-income
persons.
Responsible Agency/Department: Community Development Department
Time Frame: Work with developers on a case-by-case basis to
provide flexibility in development standards and
promote density bonuses to increase densities as
projects are processed through the Planning
Division, and biannually review multifamily
development standards in the Zoning Ordinance
starting two years after adoption of the
comprehensive Zoning Ordinance update
(expected in 2020).
Funding: General Fund
IMPLEMENTATION ACTION H-1.1.4
In order to create a vibrant pedestrian- and bicycle-friendly small-town urban atmosphere in the
downtown area and ensure optimal access to services and public transportation, the City will
encourage the development of new high-density housing in and adjacent to the downtown
commercial district. To facilitate this goal, the City will inventory vacant and underutilized lots in
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City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-135
Blueprint and adjacent to the downtown business district, identify sites or areas where rezoning to high-
density residential or mixed use categories might be desirable, and modify the City’s zoning map
as appropriate.
Responsible Agency/Department: City Council, Community Development
Department
Time Frame: Conduct inventory by July 2023. If decision is made
to revise Zoning Ordinance, revise by December
2023.
Funding: General Fund
IMPLEMENTATION ACTION H-1.1.5
In order to comply with recently adopted state law and further housing development opportunities,
the City will make the following changes to zoning as part of the comprehensive Zoning Ordinance
update that is currently in progress.
• Change conditional use permit to a minor use permit for multifamily projects in the R-3
zoning district.
• Conduct a study of where the City can change zoning to allow residential by right. Based
on the study, revisions to zoning regulations and design guidelines will be drafted. These
will include revisions to clearly state the minimum architectural requirements—to clarify
the process for applicants and staff—and may include an increased number of units in a
multifamily project that are allowed by right.
• Establish a planned development overall in the Zoning Ordinance to allow a variety of
housing types on larger parcels in the city. Each community would includes various
densities and clustering. Establishing the overlay as part of the comprehensive Zoning
Ordinance update would reduce processing times when these sites are developed.
• Update Chapter 17.50 of the Zoning Ordinance to allow some density bonuses that are
beyond what is allowed for in state density bonus law and to clarify which projects can
take advantage of these additional density bonuses and incentives.
• The City will enforce minimum residential density requirements for the R-3, R-4, and
MCR zoning districts, except in consideration of site specific extraordinary constraints.
• Update zoning regulations to comply with Assembly Bill (AB) 2162 (2018) to allow
supportive housing. The Zoning Ordinance will be reviewed to assess whether supportive
housing is allowed without discretionary review in all zones that allow multifamily housing
or mixed-use development, including nonresidential zones as applicable. If it is
determined that the allowed uses in the Zoning Ordinance are not in compliance with AB
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3-136 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint 2162, the City will revise the allowed uses along with corresponding development
standards, as detailed in AB 2162.
• Per AB 101 (2019) the City will review its Zoning Ordinance and make revisions if
necessary to allow low barrier navigation centers for the homeless, per Government Code
Sections 65660 to 65668.
• Incorporate neighborhood compatibility standards for new developments in existing
neighborhoods into the updated comprehensive Zoning Ordinance update.
• Allow employee housing for six or fewer persons in the AG and RA zoning districts.
• Allow manufactured homes in the same way single-family homes are allowed in the R-3,
R-4, and CCR zoning districts.
Responsible Agency/Department: City Council, Community Development
Department
Time Frame: Update zoning as part of comprehensive Zoning
Ordinance update by December 2020.
Funding: SB 2 grant funding and General Fund
IMPLEMENTATION ACTION H-1.1.6
The City will, to the extent feasible, allocate water resources to allow maximum growth to full
buildout consistent with limitations contained in the certified Local Coastal Plan, General Plan,
and Ordinance 266 (Measure F) as amended. At least annually, the Community Development
Department will provide an update to the City Council on available water supplies, projected
demand under the General Plan, and the status of projects to ensure adequate supply to meet the
needs of the community in accordance with the OneWater Plan, the General Plan, and this
Housing Element.
Responsible Agency/Department: Community Development Department
Time Frame: Annually
Funding: Water Fund
IMPLEMENTATION ACTION H-1.1.7
The City will continue to work with the private sector and nonprofit agencies and to secure funds
and be supportive of developers or sponsors pursuing funds through state and federal programs
for development of new lower-income housing and rehabilitation of existing lower-income
housing units (including mobile homes). As funding becomes available, the City will prioritize a
portion of the funds to encourage the development of housing for extremely low-income
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City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-137
Blueprint households. The City continues to monitor opportunities and will pursue funds as appropriate to
further the housing goals of this Housing Element.
Responsible Agency/Department: Community Development Department
Time Frame: Apply for funding annually
Funding: CDBG, HOME, SB 2, others
Quantified Objective: 35 units rehabilitated
IMPLEMENTATION ACTION H-1.1.8
The City will contact HCD, housing advocates, affordable housing providers, and other
appropriate information resources on an annual basis in order to stay current with the latest
options for providing affordable housing.
Responsible Agency/Department: Planning Division
Time Frame: Annually
Funding: General Fund
IMPLEMENTATION ACTION H-1.1.9
Prior to 2014, housing developments in Morro Bay were not required to maximize densities
allowed by zoning. Recovery from the recession, market conditions, availability of bank financing,
and insurance requirements favored the construction of single-family detached houses. However,
the economy has strengthened, allowing the City to strongly encourage and support higher
densities to assist in an increase in the housing supply and further support the goal to obtain
densities closer to those envisioned by zoning policies. To further this goal, the City will review
specific sites for higher density mixed residential projects and will review and update the zoning
code to support mixed use/mixed income housing communities.
Responsible Agency/Department: City Council, Planning Division
Time Frame: Conduct review and update zoning by December
31, 2022
Funding: General Fund
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3-138 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint IMPLEMENTATION ACTION H-1.1.10
The City will review its user charges for public services and facilities to ensure the charges are
consistent with the costs of improvements and maintenance. Additionally, the Community
Development Department will consider reductions or deferral of typically required public
improvement projects, such as street/sidewalk improvements and utility infrastructure upgrades
to avoid being prohibitive to affordable housing developments.
Responsible Agency/Department: Community Development Department, Finance
Department
Time Frame: Starting in 2021, then every three years
Funding: General Fund
IMPLEMENTATION ACTION H-1.1.11
The City will continue to implement the inclusionary requirements of Section 17.50 of the
Municipal Code, which requires that all new residential development projects of five or more for-
sale units provide a minimum of one unit or 10 percent of the total number of units, whichever is
greater, to be affordable to families with incomes at or below the moderate-income range,
depending on the housing needs of the City at the time of approval. The inclusionary housing units
may be either for rent or for sale, but shall remain affordable (deed restricted) for a minimum of
30 years, or such other term approved by the City, consistent with state law.
Responsible Agency/Department: City Council/Planning Division
Time Frame: Ongoing, as projects are processed through the
Planning Department
Funding: General Fund
IMPLEMENTATION ACTION H-1.1.12
As an alternative to building inclusionary units, the City may allow a development to pay an in-lieu
fee. Currently, the fee amount is determined with the following method: (construction cost x
percentage of fee based on project size, where construction costs include all expenses related to
the development of housing units, including land, construction, on- and off-site infrastructure, and
associated soft costs). The City believes the inclusionary fees are reasonable, but strongly
encourages development applicants to provide the affordable units vs. payment of the in-lieu fees.
The in-lieu fees, when approved, are collected and held in an affordable housing trust fund. The
City will also consider updating the regulations in Chapter 17.50 to strongly encourage providing
affordable housing units pursuant to these regulations rather than allowing payment of an in-lieu
fee. In addition, the City will increase the affordability criteria to be provided and the applicability
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City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-139
Blueprint of the development types and sizes subject to the Inclusionary Housing requirements to include
single family homes with gross square footage of 2500 sf or more.
Responsible Agency/Department: Community Development Department, Finance
Department
Time Frame: Determine whether fees are appropriate and
identify constraints (if needed) by June 2022; make
any recommended revisions to the fee calculations
and make other edits and Inclusionary Program by
December 2022
Funding: General Fund
IMPLEMENTATION ACTION H-1.1.13
The City will continue to require affordable housing developments to be designed consistent with
the surrounding neighborhood in order to enhance the sense of belonging to the community.
Forms, materials, and proportions should be utilized that are compatible with the character of the
surroundings. Design standards will be objective.
Responsible Agency/Department: City Council, Planning Division
Time Frame: Ongoing, as projects are processed through the
Planning Division
Funding: General Fund
IMPLEMENTATION ACTION H-1.1.14
The City will codify neighborhood preservation guidelines for affordable units in Section 17.28.200
of the Morro Bay Municipal Code when the Zoning Ordinance is amended.
Responsible Agency/Department: City Council, Planning Division
Time Frame: January 2021
Funding: General Fund
IMPLEMENTATION ACTION H-1.1.15
The City may, on a case-by-case basis, allow for modifications/incentives to development
standards, such as common access driveways, building height restrictions, parking, distance
between buildings, setbacks, lot coverage, screening, varying lot sizes, open space requirements,
fast-track permitting, density bonuses, variable densities on multifamily zoned property, transfer
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3-140 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint of development credits, fee assistance, and any other modifications/incentives or combination of
modifications/incentives, which are jointly agreed upon by the applicant/owner team as an
incentive for constructing specific affordable housing projects. This is not intended to be an
exhaustive list of modifications/incentives available to the applicant/owner team. The City will
prepare public outreach materials, including adding information to the City’s website to inform the
public of a variety of types of modifications or incentives offered.
Responsible Agency/Department: Community Development Department
Time Frame: Ongoing, as projects are processed through the
Planning Division. Outreach materials will be
developed and made available on the City website
by October 2021.
Funding: General Fund
IMPLEMENTATION ACTION H-1.1.16
The City affordable housing in-lieu fee fund will be used to assist nonprofit and for-profit
developers to construct lower-income housing, including assistance with land acquisition, deferred
entitlement fees, help with financing costs, costs to rehabilitate or preserve existing affordable
units, prepare other implementation measures consistent with this Housing Element, and/or
monitor housing policies and programs on an ongoing basis.
Assuming that the current market conditions will continue to exist during the eight-year Housing
Element time frame, the City estimates that it will assist the creation of from two to seven new
affordable units.
Responsible Agency/Department: Community Development Department, Finance
Department
Time Frame: Allocate any available funds annually
Funding: General Fund
IMPLEMENTATION ACTION H-1.1.17
The City will allow the conversion of older motels to residential use, subject to discretionary
review, outside the Visitor-Serving Commercial (C-VS) and Waterfront (WF) zones. Criteria for
approving residential uses will be stated in the Zoning Ordinance. These conversions will also
receive a priority in the water unit allocation list.
Responsible Agency/Department: City Council, Planning Division
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City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-141
Blueprint Time Frame: Ongoing as applications are received; codify
criteria by December 2020 in comprehensive
Zoning Ordinance update
Funding: General Fund
IMPLEMENTATION ACTION H-1.1.18
The City will develop criteria for determining the appropriate compatible mix of residential and
commercial development to ensure neighborhood consistency.
Responsible Agency/Department: Community Development Department
Time Frame: Codify criteria as part of comprehensive Zoning
Ordinance update by December 2020
Funding: General Fund
IMPLEMENTATION ACTION H-1.1.19
The City will continue to permit accessory dwelling units (including Junior ADUs) through a
primarily ministerial review process (by right) in compliance with State law. An administrative
coastal development permit, which does not require approval at a Planning Commission hearing
but does require noticing, is required for new accessory dwelling units in or outside the coastal
appeals jurisdiction. The zoning regulations will be updated to address the recent changes to state
accessory dwelling unit law as part of the comprehensive Zoning Ordinance update. As part of the
activities included in the City’s SB 2 grant work plan, the City will explore additional ADU
regulations that are less strict than what is allowed under State law. This will include exploration
of allowing tiny homes or microhomes and developing a brochure on how ADUs can be built in
Morro Bay.
Responsible Agency/Department: Planning Division
Time Frame: Ongoing, as projects are processed through the
Planning Division; Update zoning as part of
comprehensive Zoning Ordinance update by
December 2020
Funding: SB 2 grant funding
IMPLEMENTATION ACTION H-1.1.20
The City will develop at least one prototype plan for ADUs that would be preapproved if an
applicant chooses to go with that design. The prototype plan would be tailored to the typical lot
size and topography in Morro Bay.
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Blueprint Responsible Agency/Department: Planning Division
Time Frame: Develop prototypes by 2021
Funding: SB 2 grant funding
IMPLEMENTATION ACTION H-1.1.21
Establish a written policy or procedure and other guidance as appropriate to specify the SB 35
(2017) streamlining approval process and standards for eligible projects, as set forth under GC
Section 65913.4.
Responsible Agency/Department: Planning Division
Time Frame: December 2021
Funding: General Fund
IMPLEMENTATION ACTION H-1.1.22
The Parcel with APN 068-323-034 at 405 Atascadero Road has been included in the vacant land
inventories of the 4th and 5th Round Morro Bay Housing Elements as suitable for extremely low,
very low, or low units of the City’s RHNA. Per Government Code 65583.2(c), in order to continue
to include this parcel in that portion of the land inventory for this 6th Round Housing Element the
City will commit to update the zoning to allow projects that have at least 20 percent affordable
(extremely low, very low or low) units without discretionary review or “by right”. The rezoning of
the vacant parcel must be completed within three years of the beginning of the 6th Round Housing
Element planning period which is December 31, 2023.
Responsible Agency/Department: Planning Division and City Council
Time Frame: December 31, 2023
Funding: General Fund
GOALS AND POLICIES
GOAL H-2: Protect and Conserve Existing Housing Stock: Ensure no net loss in
existing housing.
POLICY H-2.1: Section 8 Subsidies. Enforce the State requirement that property
owners consider Section 8 vouchers for rental housing.
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Blueprint POLICY H-2.2: Adaptive Reuse. Encourage adaptive reuse of existing homes, hotels,
and other types of buildings to creatively maximize housing
opportunities allowed in the zoning/land use plan.
POLICY H-2.3: Inform Property Owners. Inform property owners and applicants of
opportunities to create higher density through housing design, housing
placement on parcels, shared use features, and pursuing parcel mergers
to maximize housing opportunities.
POLICY H-2.4: Mobile Home Park Preservation. Support improvements to existing
mobile home parks to preserve affordability.
POLICY H-2.5: Monitor Assisted Units. Continue to monitor termination dates for
affordable housing units to ensure they retain affordability beyond the
deed restriction period.
POLICY H-2.6: Replacement Units. Comply with SB 330 (2019) to require that
replacement units be provided for any loss of affordable or lower rent
apartments or homes at risk for redevelopment. Also require
replacement units for condominium conversions. Requirements might
include a more intense inclusionary housing requirement for the
proposed new housing.
POLICY H-2.7: Maintain Opportunities for Higher Density. Discourage large single-
family home development that eliminates opportunities for higher
density, including allowing subdivisions in R-3 and R-4 zoning districts.
IMPLEMENTATION ACTIONS
IMPLEMENTATION ACTION H-2.1.1
The City will continue to support appropriate agencies receiving Section 8 subsidy monies.
Responsible Agency/Department: Community Development Department
Time Frame: Ongoing, 2020–2028
Funding: General Plan
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3-144 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint IMPLEMENTATION ACTION H-2.1.2
The City will offer support and resources as available to assist local private organizations to serve
elderly, disabled, and disadvantaged persons in the repair and rehabilitation of their housing.
Responsible Agency/Department: Community Development Department
Time Frame: Meet with organizations annually
Funding: CDBG, HOME, other funding sources to be
determined
IMPLEMENTATION ACTION H-2.1.3
Update Morro Bay Municipal Code Chapter 5.32 to update the mobile home and recreational
vehicle rent stabilization regulations to comply with current State law and the community-
identified needs regarding mobile homes.
Responsible Agency/Department: Community Development Department
Time Frame: Update ordinance by 2024
Funding: General Fund
IMPLEMENTATION ACTION H-2.1.4
The City will promote the continued use and upkeep of economically viable mobile home parks
by keeping park residents and owners informed of opportunities through HCD and other funding
sources to maintain mobile home parks through energy retrofits, housing rehabilitation, new types
of mobile housing (park units, tiny homes, etc.), and weatherization programs.
Responsible Agency/Department: Community Development Department
Time Frame: Inform owners every two years beginning in
2021
Funding: Mobile Home Rehabilitation and Resident
Ownership Program and other programs as
available; General Fund
IMPLEMENTATION ACTION H-2.1.5
The City will monitor the list of all dwellings in the city that are subsidized by government funding
or low-income housing developed through local regulations or incentives. The list will include, at
least, the number of units, the type of government program, and the date on which the units are
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City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-145
Blueprint at risk to convert to market-rate dwellings. No units have been identified as at risk of converting
to market rate within 10 years of the beginning of the 6th-round Housing Element planning period.
The City will continue to monitor the status of affordable housing projects, and as their funding
sources near expiration, will inform and work with owners and other agencies to consider options,
including available funding sources, to preserve such units as affordable.
• If conversion of units is likely, work with local service providers as appropriate to seek
funding to subsidize the at-risk units in a way that mirrors the HUD Housing Choice
Voucher (Section 8) program. Funding sources may include State or local funding sources.
Per State law, owners of deed-restricted affordable projects are required to provide notice of
affordability restrictions that are expiring after January 1, 2021, to all prospective tenants, existing
tenants, and the City at the following intervals prior to the expiration date: One notice three years
prior, a second notice one year prior to expiration, and a third notice six months prior to the
scheduled expiration of rental restrictions. The City will require this noticing for any units for
lower-income households with the potential for converting to market-rate units in any of the
following circumstances:
• The units were constructed with the aid of any type of government funding.
• The units were inclusionary units required by the City’s zoning regulations.
• The project received a density bonus greater than what it qualified for by right under
State law.
• The project received other incentives.
Such notice will be given at least to the following:
• The City of Morro Bay
• HCD
• Housing Authority of the City of San Luis Obispo
• Residents of at-risk units
• Any others deemed appropriate
Owners shall also refer tenants of at-risk units to educational resources regarding tenant rights,
conversion procedures, the availability of Section 8 rent subsidies, and any other affordable
housing opportunities in the city.
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3-146 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint If a development is offered for sale, HCD must certify persons or entities that are eligible to
purchase the development and to receive notice of the pending sale. Placement on the eligibility
list will be based on experience with affordable housing.
Responsible Agency/Department: Community Development Department
Time Frame: Ongoing communication with owners, service
providers, and eligible potential purchasers
Funding: General Fund
IMPLEMENTATION ACTION H-2.1.6
The City will continue to comply with Government Code Sections 65590 et seq. that set forth the
requirements for conversions, demolitions, and replacement housing in the coastal zone.
Responsible Agency/Department: Community Development Department
Time Frame: Ongoing, 2020–2028
Funding: General Fund
IMPLEMENTATION ACTION H-2.1.7
The City will continue the code enforcement program to address a variety of issues, including
unsafe or dilapidated housing units. When violations are cited code enforcement will offer to
provide homeowners with a list of potential resources.
Responsible Agency/Department: Community Development Department
Time Frame: Ongoing, 2020–2028
Funding: General Fund
GOALS AND POLICIES
GOAL H-3: Special Needs: Address unique housing needs for special needs
individuals in new or adapted existing homes.
POLICY H-3.1: Senior Housing. Support development of affordable senior housing.
POLICY H-3.2: Special Housing Needs. Promote development of special needs
housing, such as transitional, supportive housing for persons with
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City of Morro Bay – General Plan / Local Coastal Plan August 2020 3-147
Blueprint physical, developmental or mental disabilities; farmworker housing;
homeless and housing for extremely low-income persons.
IMPLEMENTATION ACTIONS
IMPLEMENTATION ACTION H-3.1.1
The City will utilize CDBG and other State or federal monies, when available, to assist in the
development of lower-income senior rentals.
Responsible Agency/Department: Community Development Department
Time Frame: Apply for funding as Notices of Funding
Availability (NOFA) are released
Funding: CDBG/federal monies
IMPLEMENTATION ACTION H-3.1.2
The City will work with housing providers to ensure that special housing needs and the needs of
lower-income households are addressed for seniors, large families, single parent-headed
households with children, persons with disabilities and developmental disabilities, extremely low-
income households, and homeless individuals and families. The City will seek to meet these special
housing needs through a combination of regulatory incentives, zoning standards, new housing
construction programs, and supportive services programs. This will include promotion of the
City’s existing reasonable accommodation procedure through creation of a handout that will be
available at the City and on the City’s website. The City will promote market-rate and affordable
housing sites, housing programs, and financial assistance available from the City, County, state,
and federal governments. In addition, as appropriate, the City will assist and/or provide support
for applications for funding under state and federal programs designated specifically for special
needs groups.
Responsible Agency/Department: Community Development Department, City
Council
Time Frame: Prepare reasonable accommodation procedure
handout and post on website by December 2021;
Seek funding opportunities beginning in 2021–
2022 and annually thereafter; all implementation
action components are ongoing
Funding: Federal Housing Opportunities for Persons with
AIDS, California Child Care Facility Financing
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Blueprint Program, and other State and federal programs
designated specifically for special needs groups
Quantified Objective: Assist with creation of 20 units for those with
special needs.
GOALS AND POLICIES
GOAL H-4: Homelessness: Provide safe housing and shelter opportunities for
homeless persons in Morro Bay.
POLICY H-4.1: Regional Homeless Shelters. Work with regional nonprofit agencies
on shelter solutions for the homeless population in Morro Bay. Work
also to find options for those who would like to have access to temporary
housing or other services to move beyond homelessness.
POLICY H-4.2: Outreach to Homeless. Work with churches and other organizations
to find opportunities for sheltering the homeless, medical care, job
search assistance, and other identified needs.
POLICY H-4.3: Community Involvement. Encourage supportive housing and
transitional housing operators to assist homeless people to get the help
they need to become contributing members of the community.
Community involvement includes finding temporary housing
opportunities in under-utilized existing housing stock or empty
commercial buildings.
POLICY H-4.4: Hotel/Motel Vouchers. Take advantage of vacancies in hotels and
motels to assist in short-term housing needs of homeless and transitional
individuals and families.
IMPLEMENTATION ACTIONS
IMPLEMENTATION ACTION H-4.1.1
The City will cooperate with other cities, the County, and other agencies in the development of
programs aimed at providing homeless shelters and related services, including medical service for
walk-in cases. The City will continue to implement the regional plan to end homelessness entitled
“Housing for All: A Plan to End Homelessness.”
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Blueprint Responsible Agency/Department: Community Development Department in
collaboration with the City Manager and Police
Department
Time Frame: Ongoing; meet with homeless service providers
and other county jurisdictions annually
Funding: General Fund
IMPLEMENTATION ACTION H-4.1.2
The City shall consider implementing an overnight parking program, or a similar program,
for the homeless in appropriate zoning districts or locations.
Responsible Agency/Department: Community Development Department in
collaboration with the City Manager and Police
Department
Time Frame: Within two years of Housing Element adoption
Funding: General Fund
GOALS AND POLICIES
GOAL H-5: Housing Costs: Help reduce housing costs so more people can afford
housing in Morro Bay.
POLICY H-5.1: Reduction in Operational and Repair Costs. Encourage and
incentivize new dwelling units to meet current state requirements for
energy efficiency. Encourage retrofits of existing units. Provide
materials/access to utility-sponsored programs that educate residents on
ways to reduce energy usage or costs (e.g., insulation, solar, reduction in
utility wastefulness.)
POLICY H-5.2: Reduction in Dependence on Vehicular Transportation. Encourage
car-pooling, reduced vehicle usage, tailoring use to nonpeak times, car
sharing, smaller motorized vehicle options, and walking and biking for
local good and services.
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Blueprint IMPLEMENTATION ACTIONS
IMPLEMENTATION ACTION H-5.1.1
The City will continue to implement Title 24 of the California Code of Regulations on all new
development and will continue to ensure that local building codes are consistent with State-
mandated or -recommended green building standards. The City will also continue to encourage
the use of additional innovative energy conservation techniques such as active and passive solar
systems, orientation, and project layout in an endeavor to further reduce dependence on outside
energy sources. As Title 24 continues to be updated, the City will evaluate the economic impact of
the feasibility of housing development resulting from the increased green building requirements
and determine what additional recommendations or requirements are reasonable to ask those
developing housing. The City will make handouts and literature available to the public outlining
measures that they can take to reduce energy use.
Responsible Agency/Department: Building Division, Community Development
Department
Time Frame: Ongoing; ensure consistency with State green
building standards triennially when the California
Building Code is adopted
Funding: Plan check fees and General Fund
IMPLEMENTATION ACTION H-5.1.2
The City will continue to implement the subdivision ordinance which requires that new
subdivisions incorporate design features reducing vehicle dependence and encouraging pedestrian
and bicycle circulation through the development of transit stops and bicycle and pedestrian routes,
where feasible and appropriate.
Responsible Agency/Department: Community Development Department
Time Frame: As projects are processed through the Planning
Division
Funding: General Fund
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Blueprint GOALS AND POLICIES
GOAL H-6: Equal Opportunity: Ensure equal access to sound, affordable housing
for all persons regardless of race, creed, age, sexual orientation or gender.
POLICY H-6.1: Fair Employment and Housing. Promote the enforcement of the
policies of the California Department of Fair Employment and Housing.
The City declares that all persons, regardless of race, creed, age, sexual
orientation or gender, will have equal access to sound and affordable
housing.
IMPLEMENTATION ACTIONS
IMPLEMENTATION ACTION H-6.1.1
The City will continue to provide information from the California Department of Fair
Employment and Housing regarding housing and tenant rights at City Hall and other prominent
locations in the city, including the Community Development Department. The City will refer
persons experiencing discrimination in housing to California Rural Legal Assistance (CRLA).
Responsible Agency/Department: Planning Division and all City departments that
receive complaints
Time Frame: Ongoing
Funding: General Fund
IMPLEMENTATION ACTION H-6.1.2
Morro Bay will develop a plan to Affirmatively Further Fair Housing (AFFH). The AFFH Plan
shall take actions to address significant disparities in housing needs and in access to opportunity
for all persons regardless of race, religion, sexual orientation, gender, marital status, ancestry,
national origin, color, familial status, or disability, and other characteristics protected by the
California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of
Division 3 of Title 2), Section 65008, and any other state and federal fair housing and planning
law. Specific actions will include:
• Provide dedicated staff that investigates fair housing complaints and enforces fair
housing laws.
• Facilitate public education and outreach by creating informational flyers on fair
housing that will be made available at public counters, libraries, and on the City’s
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Blueprint website. City Council meetings will include a fair housing presentation at least once
per year.
• Actively recruit residents from neighborhoods of concentrated poverty (if applicable)
to serve or participate on boards, committees, and other local government bodies.
• Ensure environmental hazards are not disproportionately concentrated in low-income
communities and low-income communities of color.
• Develop a proactive code enforcement program that holds property owners
accountable and proactively plans for resident relocation, when necessary.
• Provide education to the community on the importance of completing Census
questionnaires.
Responsible Agency/Department: Planning Division
Time Frame: Create Plan by January 2022 and implement on
an ongoing basis
Funding: General Fund
QUANTIFIED OBJECTIVES SUMMARY
Based on the policies and actions outlined in Table H-46, the following objectives
represent a reasonable expectation of the maximum number of new housing units that
will be developed, rehabilitated, or conserved and the number of households that will
be assisted over the 10-year projection period. The City should be able to facilitate the
development of 350 new units, assist with the rehabilitation of 35 units, and preserve
at least 15 units between 2019 and 2028.
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Blueprint Quantified Objectives Summary (2019–2028)
Task
Income Level
Extremely Low Very Low Low Moderate
Above Moderate Total
Regional Housing Needs
Allocation 48 49 60 70 164 391
Residential Permits
Issued in 2019 0 0 11 16 14 41
New Construction
Objectives 48 49 49 54 150 350
Rehabilitation Objectives 2 8 15 10 0 35
Preservation Objectives1 5 5 5 0 0 15
Total 55 62 69 64 150 400
Note:
1. There aren’t any state and/or federally assisted affordable units at risk of conversion to market rate currently. If that changes during the planning period, the City will work to preserve at least 15 assisted units.
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3-154 City of Morro Bay – General Plan / Local Coastal Plan August 2020
Blueprint