Memo of Transmittal

To: Christopher Lopez

From: Jacob Munson
Date: November 27, 2016
Subject: Proposal to Improve the Affordability of Housing in the City of San Luis Obispo
I have gone ahead and attached to this memo the recommendation report I prepared concerning
housing affordability in the city of San Luis Obispo. I hope that this report will be able to serve its
intended purpose in order to help alleviate the problem for Cal Poly students and the resident
workforce.

Recommendations
The two possible solutions to the issue are as follows:
-

Cal Poly increases the amount of students it can house by increasing on-campus housing options
The City of San Luis Obispo streamlines its permit approval process to stimulate housing
development

Methods
Primary
-

Interview with Christopher Lopez

Online Survey of Cal Poly Students

Secondary
-

Newspaper Articles
SCWIB Report
SLO Board of Supervisors Agenda Proposal
Book
Website
Cal Poly Master Plan

Results
Please see the results section of my report for information regarding my findings from these sources

Final Recommendation
I recommend the city of San Luis Obispo streamline its permit approval process to better affect
developers to propose new housing projects.

Id like to thank you for your help in creating this report and I hope it is something you could potentially
use in the future to address this issue.

Prepared for Cal Poly Student

Christopher Lopez

Proposal to Improve the Affordability of Housing in the City of

San Luis Obispo

Prepared by Jacob Munson

Submitted November 27th, 2016

Table of Contents
Introduction....1
Background....1-2
Organization....2
Methods..2-3
Primary2
Secondary3

Results.3-6
Primary3-4
Secondary4-6

Conclusions.6
Recommendations...7
References..7
Table of Figures
Figure 1: Housing Survey (Who to Blame) ..3
Figure 2: Housing Survey (Rent Prices) ....3
Figure 3: Regional Prices....4
Figure 4: Cal Poly Master Housing Plan....5

Introduction
Purpose
In this report I address the growing issue of housing affordability within the city of San Luis
Obispo and how that affects both me personally, as a student of Cal Poly, and the greater working class
of San Luis Obispo County. It is no secret that the quality of life residents of San Luis Obispo are able to
have is one that any person, whether it be a student living here temporarily or a family looking to settle
down, would envy. It is why San Luis Obispo has gained the reputation as the happiest town in the
nation [1]. However, it is becoming more and more apparent that the luxuries of this lifestyle are only
able to be enjoyed by the upper middle class or those that are willing to settle for less than ideal
housing. Between the growing population of students attending Cal Poly and the resident workforce the
housing market is being flooded with applicants and there are simply not enough homes to go around.
Due to this imbalance between supply and demand the problem has been compounded as landlords
increase rent prices and effectively make it impossible for the average working couple to realize the
dream of owning a home in the city [2].
As a student I have personally seen this issue grow more pressing, both as I have attempted to find
housing for myself and in local politics as the 2016 elections came and passed. Being able to witness the
local candidates discuss this issue in depth and understanding the relevance this issue will have in my
life for at least the next three years is what initially drew me to my topic.
The client that I am working with for this project is former candidate for city council and current Cal Poly
student Christopher Lopez. Seeing as this problem is highly political and with the unique perspective he
offers as a student, Chris has been able to give me great information on the issue and as he hopes to
remain involved in local politics he would serve as a good future resource to transmit this report to
those in office. For this report to reach the eyes of those legislators and those with the power to directly
affect the issue is the overall goal of my writing.

Background
Currently Cal Poly San Luis Obispo is able to house over 6300 students on campus, that is
approximately 36.7% of the over 20,000 undergraduates the school has enrolled [3]. With the addition
of the Campus Housing South dormitories that should be ready for the Fall 2017 academic year, Cal Poly
is showing that it understands that there is an issue, however this new addition will still do little to
alleviate the fact that there are too many students flooding the housing market surrounding the school.
Because of this, the competition for an already small housing market has grown exponentially, leading
to a disparity between median income levels, which have grown at a steady rate, and the median price
of a home, which has jumped [4]. Currently the median income level in the city of San Luis Obispo would
need to increase by about $35,000 to match what an affordable home in the area would cost, leading
the resident workforce to seek housing in towns outside the city such as Atascadero and Nipomo [4].
The two most prevalent solutions that have been put forward to solve this problem are:
1) Cal Poly builds more on campus housing so that there will be less students in competition with
the resident workforce for housing

2) The City of San Luis Obispo streamlines the permit approval process to stimulate housing
development

Organization
The organization of this report following the introduction above begins with the methods I used
for my research, organized by primary and secondary sources. Following that I will discuss the results of
my research, organized by source type, and then I will draw my conclusions. The conclusions section
will be organized through a comparison of both the solutions positives and negatives, whether it is
increasing on the campus housing population at Cal Poly or allowing for increased development by the
city of San Luis Obispo. At the end of this paper my best recommendation will be presented and will be
followed by my bibliography of sources.

Methods
I have researched this topic extensively and was able to find information from a variety of reputable
sources. I pulled information from my interview with Christopher Lopez, a survey I conducted online,
various local newspapers, government documents, and university files.

Primary Sources
Interview with Christopher Lopez
I contacted former candidate for city council Christopher Lopez via email and set up an in-person
interview with him on November 15th, 2016 in the Cal Poly University Union.
Survey
I conducted an online survey consisting of 74 Cal Poly students consisting of the following questions:
-

Would you say that the city of SLO has a problem with affordable housing for its residents?
o If you answered yes, who do you feel is at fault for this problem?
Do you feel that you were forced to settle at all when choosing your housing situation?
How easy has it been for you personally to find housing in San Luis Obispo?
Would you support Cal Poly mandating that all second year students be housed on campus?
Do you believe that your rent is unfairly high?
How early do you typically begin looking for housing for the next school year?

This list of questions was of two separate forms, the majority being on a scale of 1-5, while a couple
were multiple choice with relevant answers for respondents to choose from. I closed the survey with an
open ended question for respondents to write a short answer for:
-

If you were looking to buy a home would you consider buying in SLO?
o Why or why not?

Secondary Sources
Newspaper Article (Pacific Business Times)

I found this article from the Pacific Business Times titled SLO County Formulating Plan To Encourage
Affordable Housing, written October 7th, 2016 by Alex Kacik.
Newspaper Article (The Tribune)
The first of my two articles from the San Luis Obispo Tribune is titled Homeownership Remains Distant
Goal For Many In SLO County and was written October 22nd, 2016 by Cynthia Lambert.
Newspaper Article (The Tribune)
The second of my articles from The Tribune is titled San Luis Obispo residents to CSU: Cap enrollment
at Cal Poly, authored on January 24th, 2016 also by Cynthia Lambert.
SCWIB Report
This report was prepared for the SLO County Workforce Investment Board in conjunction with BW
Research Partnership and was published in 2014.
Board of Supervisors Proposal
This proposal was filed with the San Luis Obispo County Board of Supervisors by Lisa Howe and Ryan
Hostetter in 2016 with the goal to give the board an update they had requested on the affordable
housing situation in San Luis Obispo County.
Book
The book Thrive: Finding Happiness the Blue Zones Way written by Dan Buettner was published in 2010.
Website
The webpage Cal Poly Quick Facts can be found on the main Cal Poly San Luis Obispo website and is
updated with data annually.
Cal Poly Master Plan
The Cal Poly Master Plan published by the university is available online and was last updated in May of
2016 by the various Advisory Committees and the Master Plan Professional Team.

Results
From these sources discussed above I was able to gather data about the roots of the housing
affordability crisis as well as information about my two potential solutions.

Primary Sources
Interview with Christopher Lopez
In my interview with Chris Lopez I was able to gather both solid statistics related to the current housing
situation as well as how the permitting process works at this moment. When asked about where he
believes the root of the problem lies, Chris responded that he thinks the most obvious culprits are both
Cal Poly and Cuesta Community College, as he believes the growth of the two schools has outpaced
housing development. Chris also provided me with a statistic to go along with that statement that in the

city of San Luis Obispo 68% of housing are rentals and that at any given time about .8% of these rentals
are available as opposed to the average in other cities of 3-5% [5]. Chris was able to also outline to me
the current permitting protocol and how developers must work with the following five committees in
order to receive necessary permits:
-

Public Community Forums

Tree Committee
Architectural Review Commission
Planning Commission
City Council

Chris explained to me, that in his opinion, the way the system is set up currently up promotes a lack of
communication and overall fails to promote development.
Survey
Of the 74 Cal Poly students surveyed 84% of the student population felt that the city of San Luis Obispo
and of those 84% that responded yes 64% felt that the city was to blame for the problem as opposed to
12% who felt Cal Poly is at fault [6].

Figure 1: Survey results

on who is to blame for
housing crisis

Furthermore, 69% of those surveyed responded that finding housing for them was either
impossible or difficult and another 60% responded that their current rent feels unfairly high to
them [6].

Figure 2: Survey results on how

fair respondents feel their rent
prices are

Secondary Sources
Newspaper Article (Pacific Business Times)
In this article the author details how the San Luis Obispo County of Board of Supervisors is intending to
move forward on the housing affordability issue. One of the ways the Board intends to move forward
according to the article is by making the development review process more consistent and

predictable,[7]. The article also provides the statistic that of 380 surveyed regions San Luis Obispo ranks
as the 6th least affordable to live in.
Newspaper Article (The Tribune)
In the first of my two articles from The Tribune author Cynthia Lambert provides a narrative of a young
married couple living in San Luis Obispo who would like to own a home but cannot due to the price of
homes so they continue to rent. To back this narrative the author provides the statistic that 27% of
workers are likely to move out of the area because they cannot afford the price of living and in order to
home in San Luis Obispo one would have to spend 91.2% of the average weekly wages in order to own a
median-priced home [8].
Newspaper Article (The Tribune)
In this article the author discusses how a local San Luis Obispo petition has come up requesting that Cal
Poly build new dorms, cap student enrollment, and be able to provide enough housing for two thirds of
these students [9]. In response to this petition the university stated that their current projections are
calling for 60% of students to be housed on campus by the year 2035 with overall enrollment at 25,000
by this time [9].
SCWIB Report
This report, entitled Challenges and Opportunities for the San Luis Obispo County Workforce
Investment Board provides data and statistics relating to how to increase the amount of skilled workers
in San Luis Obispo and as a result boost the economy. One of the challenges that the report details is the
price of rent in the area which strays drastically from other general prices in the region. Whereas San
Luis Obispo is in line with national averages for most other sectors rent in the area is 50% above the
national average [2].

Figure 3: A chart showing,

as a percent of the
national average, specific
industries and their
regional prices

Board of Supervisors Proposal

In the agenda proposal to the San Luis Obispo County Board of Supervisors, authors Lisa Howe and Ryan
Hostetter discuss the current housing affordability crisis, specifically discussing wages and how they
relate to the issue. According to the report median income would need to increase $35,752 to $98,712
to be reduce the gap between where wages currently are what the current median price of a home is
[4]. Furthermore, the report goes on to discuss the solution of streamlining the permitting process,

specifically by introducing a matrix to allow developers to better understand which category of project
their particular proposal falls under, overall easing the permit process [4].
Book
In his book Thrive, Dan Buettner discusses how he best finds happiness in his own life and how he feels
others should accomplish that well. At the end of his book Buettner states that the happiest place he
has experienced in America is the city of San Luis Obispo and this observation has come to be the root of
the town being called the happiest town in the nation [1]
Website
In the Cal Poly Quick Facts webpage of the Cal Poly San Luis Obispo the most recent admissions data
from the past 10 years is recorded as well as showing the annual number of students living on campus,
6300 of the 20,000 total undergraduates in the year 2016 [10].
Cal Poly Master Plan
The Cal Poly Master Plan provides the blueprints for the universitys proposed campus expansion efforts
up until the year 2035.

Figure 4: The most recent

proposed Cal Poly housing
expansion plan

In the figure above one can see how Cal Poly plans to add new on-campus housing options in the four
blue locations indicated on the map [3].

Conclusions
The housing affordability issue in San Luis Obispo is one that is multifaceted and between both Cal Poly
and the citys contribution to the problem it is not abundantly clear who is at fault. Because of this

obscurity it is also not clear who should be the one that takes action to address the issue. Realistically,
we will probably need a combination of solutions to 100% solve the problem, however, a
recommendation can still be made as to which solution will be most effective on its own, either an
increase of on-campus housing by Cal Poly, or a streamlining of the permit process.
The first solution I have put forward is for Cal Poly to increase its on-campus housing options to
accommodate for the increase in student population. With the way the current Cal Poly Master Plan is
set up, the university would be adding three new living communities in next 20 years, that is including
the Campus Housing South Project that is already under construction [3]. This effort by the university to
address its own role in the housing affordability issue is admirable and the increase in physical living
spaces will surely help alleviate the impact students are having on the housing market, however, there
are drawbacks to this solution as well. For one, the student opinion on campus housing is not one of
support for increased housing options and the possible mandate that second years be required to live
on campus, a likely possibility if the new buildings are approved [6]. Furthermore, Cal Poly would need
to reduce their rent prices to generate the necessary interest in these new living spaces as the majority
of students surveyed, both on and off campus residents, agreed their current rent is unfairly high [6]. If
the university could figure out a way to sway student opinion on this topic and follow through with a
decrease in on-campus rent then this solution would be a very appealing option.
The second solution that I have developed is that the city streamline its permitting process, allowing
developers more leeway in the types of units built and stimulating growth in the amount of housing
options the city possesses. Currently the city of San Luis Obispo has a five step approval process
consisting of public forums, various committees, and a city council vote [5]. This process naturally
condones a lack of development as developers must deal with an established resident base that does
not want to see their open spaces built on, a lack of communication between committees, and a
unnecessarily time consuming approval process [5]. The most obvious benefit of streamlining this
process is that it lead to the development of a larger housing market which would help ease the
problem from the supply side of things. The main reason that this would cause problems is because of
the importance that the city and its established residents place on the sanctity of their open spaces. In
some ways opening the door to further development could be seen as an attack on the San Luis Obispo
quality of life. If some kind of compromise could be struck between residents and developers concerning
the use of empty land then this option does not have much holding it back.
The more viable of these two solutions is for the city of San Luis Obispo to streamline its permit
approval process. Cal Poly is a huge contributor already to the force of talented young workers here in
town but if the city wants to continue its growth as one of Californias economic epicenters it needs to
create more places for people from outside of the San Luis Obispo area to settle. As Cal Poly grows in
population the new on-campus housing will become a necessity rather than a convenience and that
housing will be used for the new influx of students, doing nothing to alleviate the problem within the
city itself.

Recommendations
Based on all the research that I have done and the data I have collected I advise that the city of San Luis
Obispo work to remove barriers to developers and streamline its building permit approval process. The

citys next move here should be to increase public awareness of the problem so that there is less
opposition when developers do bring forward future plans to build.

Bibliography
[1] D. Buettner, Thrive, 1st ed. Washington, D.C.: National Geographic, 2010.
[2] BW Research Partnership, San Luis Obispo County Challenges & Opportunities for the SLO County
Workforce Investment Board, San Luis Obispo County Workforce Investment Board, 2014.
[3] Cal Poly Master Plan Principles Summary, Campus Land Use and Design Guidelines.
[4] County of San Luis Obispo Board of Supervisors, Request to receive and file an update on affordable
housing in San Luis Obispo County, San Luis Obispo, 2016.
[5] C. Lopez. Cal Poly Student. Cal Poly San Luis Obispo. Interview. San Luis Obispo, CA. 11/14/16
[6] J. Munson. Survey of Cal Poly Student Population Relating to Housing Affordability. Survey.
11/15/2016
[7] A. Kacik. SLO County Formulating Plan To Encourage Affordable Housing. Pacific Coast Business
Times. 10/7/16: n. pag. Web.
[8] C. Lambert. Homeownership Remains Distant Goal For Many In SLO County. The Tribune.
10/22/16: n. pag. Print.
[9] C. Lambert, San Luis Obispo residents to CSU: Cap enrollment at Cal Poly, The Tribune, 2016.
[10] Cal Poly Quick Facts, Cal Poly San Luis Obispo, 2016.

Figures Referenced
[6] Figure 1: Housing Survey (Who to Blame), J. Munson. Survey of Cal Poly Student Population Relating
to Housing Affordability. Survey. 11/15/2016
[6] Figure 2: Housing Survey (Rent Prices), J. Munson. Survey of Cal Poly Student Population Relating to
Housing Affordability. Survey. 11/15/2016
[4] Figure 3: Regional Prices, County of San Luis Obispo Board of Supervisors, Request to receive and
file an update on affordable housing in San Luis Obispo County, San Luis Obispo, 2016.
[3] Figure 4: Cal Poly Master Housing Plan, Cal Poly Master Plan Principles Summary, Campus Land Use
and Design Guidelines.