Housing units that may be more affordable than other housing units are most commonly created by an Accessory Dwelling Unit (previously known as a Second Residential Dwelling) or as part of a proposed housing project, where one or more units are deed-restricted to a particular income level in exchange for a density bonus and/or development incentives.

Affordable Housing Rates

Household income limits, maximum rental rates, and maximum sales prices are based on the median income of the county and are calculated periodically by the County of San Luis Obispo’s Planning and Building Department.

Deed-restricted units may be occupied by households that qualify for the specified income level (extremely-low, very-low, low, or moderate). For rental units, the monthly rental rate, including costs for utilities, may not exceed the amount listed on the Affordable Housing Rate Chart. The City annually verifies that the household remains income-qualified and the rental rate does not exceed the allowable rate. For a for-sale unit, the household must meet the income restriction at the time of the sale, and the sales price cannot exceed the maximum listed on the Affordable Housing Rate Chart. The City annually verifies that the purchasing household occupies the unit.

Development Incentives for Affordable Housing Projects

Developers may qualify for development incentives by utilizing  the State’s affordable housing regulations (State Density Bonus), which can be found in the California State Government Code Section 65915. Depending on the level and percentage of units that are affordable, projects are eligible to receive up to three development incentives. Projects may also apply parking requirements as dictated by this section instead of city parking requirements. Other incentives may be available based on the number of affordable units, type of units, and proposed population the housing is intended to serve. 

Funding for Affordable Residential Projects

The City of Grover Beach is a non-entitlement community, eligible to competitively apply for funds from the U.S. Department of Housing and Urban Development (HUD) which are administered by the State of California Department of Housing and Community Development (HCD), such as Community Development Block Grant (CDBG). The City’s Community Development Department manages these programs, which aim at providing services, housing, and facilities for the very-low, low- and moderate-income persons/households of our community.

Additional Resources:

Affordable Housing Guidebook (2013)