Developers may be required to build more affordable housing in SLO

Real estate developers could be required to include as much as 10 percent of their housing stock to be below-market-rate value for low- and moderate-income families, according to a new proposal.

The City of San Luis Obispo wants to ramp up the construction of affordable housing units. An updated draft of the Inclusionary Housing Ordinance would require 5 percent of new development to be low income. 

Another 5 percent would be moderate-income, meaning 10 percent of housing in the city would be below market rate value. That's up from the current requirement of 3 percent for low income, or 5 percent for moderate-income households.

The proposal will be discussed at the planning commission's next meeting on June 8. 

There will be some exemptions to the new ordinance if it's passed, including new developments of four units or less.

Wind Turbines to Float off the Morro Bay Coast

The US government proposes to lease wind energy businesses in a region roughly 17 miles off Morro Bay to provide more electricity than the Diablo Canyon nuclear power plant's 2,200 megawatts. 

The proposal specified commercial ships and the US Navy as active in the 376-square-mile area, which required negotiation with the Navy Secretary. It has also alerted fishermen in Santa Barbara and other harbors, the Santa Barbara Independent newspaper reported.

Increasingly powerful wind turbines, with a wingspan of two-and-a-half football fields, are reaching the height of the Statue of Liberty. Some of them are being tested in Denmark and the Netherlands and can power 18,000 European homes. 

The Bureau of Ocean Energy Management is conducting the first of several environmental reviews in the US (BOEM). No leases have been sold yet. Companies will utilize buoys to determine weather and wind conditions, along with bathymetric (underwater topography) investigations, as the big floating turbine building projects move forward with development and approval, including environmental studies.

Grover Beach declares Stage 2 water shortage

Grover Beach is experiencing a Stage 2 water shortage emergency after almost a year of saving water in a Stage 1 shortage declaration. 

Water customers will also get some respite, as the City Council unanimously decided at its May 9 meeting to pause penalties on water conservation violations. 

The 10 percent mandatory reduction in residential water use sprung from the combination of depleting water levels at Lopez Lake along with diminished groundwater supply as a result of low rainfall. 

Commercial and industrial groups are exempt from that declaration, but residential customers will receive a reprieve from penalties.

Tell Me About Foreclosures in Today’s Housing Market

According to current data, the majority of homeowners are either fully caught up on payments or have a plan from the bank to modify their loan so that they may start making payments again.

The majority of homeowners have sufficient equity to sell their homes

The average homeowner has accumulated unprecedented levels of equity in their home. Many people who are leaving the forbearance program without a plan will have enough equity in their homes to sell.

In the last two years, there have been fewer foreclosures

Today, there are fewer foreclosures than there were before the pandemic. Homeowners were given an extra two years to get their finances in shape and work out a plan with their lender under the scheme. This helped to avoid the forelosures that would have otherwise hit the market.

New listings are easily absorbed by the current market

When foreclosures flooded the market in 2008, they added to the glut of homes already on the market. The housing market is extremely undersupplied today, with a supply of 2.0 months. A balanced market would have enough inventory to last six months.

If you see stories today concerning the rising number of foreclosures, keep in mind that context is crucial. Foreclosures are still significantly below levels seen before the outbreak. Contact a real estate agent for assistance in understanding current market circumstances.