Development in Los Osos

Update as of 4/23/2026: The County has completed the initial implementation work as required by the Los Osos Habitat Conservation Plan (LOHCP) and pleased to announce that the first batch of habitat mitigation credits will be available on May 1, 2026.  

The initial pool of credits is limited, and property owners are strongly encouraged to review the strict timeframes and reservation requirements needed to secure credits for development in Los Osos. All new development or construction projects that will cause ground disturbance will require purchase of habitat mitigation credits.  

In addition to mitigation credits, a new dwelling unit must obtain an allocation pursuant to the County’s Growth Management Ordinance (GMO Title 26). Letters notifying the availability of residential allocations has been mailed to the first batch of property owners on the ‘Waitlist to Build’ on April 23, 2025. A copy of this letter can be found under Communications to Waitlist Property Owners tab below.  

There is a limit of 25 new dwelling units that can be built in 2026 (0.4% growth rate). This growth rate was established by the Board of Supervisors on December 16, 2025This allocation applies only to new residential development.  


LOHCP Credit Reservation and GMO Allocation for Various Development Types  

Starting May 1, 2026, the process for reserving LOHCP credits and GMO allocation for various development types is summarized in the immediate tabs below.  

Eligible applicants will receive a Credit Reservation Form (CRF). The CRF functions as a temporary Certificate of Inclusion (COI) solely for the purpose of processing permit applications and includes defined expiration dates. The official COI will be granted when all applicable conditions of approval are met and LOHCP fees are paid with an issued building permit within 1-year period. For more information on mitigation credit reservations, see the LOHCP Quick Link tab below. 

Important Note: Property owners with issued Credit Reservation Form (CRF) must submit their construction permit applications in person at the Department of Planning and Building. Initial building permit fees must be paid within 45 days of CRF issuance to secure the reserved credits. Please make an appointment online at No Wait Inside - County of San Luis Obispo so our dedicated team members can provide assistance on the application intake.

Development, such as constructing a new dwelling, may require obtaining a discretionary land use permit. If required, the land use permit must be obtained prior to submission of construction permit application and plans. If you are unsure which permitting requirements apply to your project, please contact the Department of Planning and Building to confirm permit needs and eligibility before submitting any applications. 


  Discretionary Process & Requirements for New Builds on Vacant Lots (New SFD & Commercial Buildings)  

The following table outlines the process and requirements for new buildings on vacant parcels that need a discretionary land use permit PRIOR to a construction permit.

 

Abbreviations: 

DRF: Development Request Form CRF: Credit Reservation Form HCP: Habitat Conservation Plan COI: Certificate of Inclusion 

GMO: Growth Management Ordinance LUP: Land Use Permit BP: Building Permit SFD: Single Family Dwelling


  Ministerial Process & Requirements for New Residential Dwellings on Vacant Parcels   

The following table outlines the process and requirements for new residential dwellings on vacant parcels that only need a construction permit.

 

Abbreviations: 

DRF: Development Request Form CRF: Credit Reservation Form HCP: Habitat Conservation Plan COI: Certificate of Inclusion 

GMO: Growth Management Ordinance LUP: Land Use Permit BP: Building Permit SFD: Single Family Dwelling


  Ministerial Process & Requirements for Other Development Types    

The following table outlines the process and requirements for various ground disturbing developments such as remodel or additions to existing structures, new commercial projects, and new residential family dwellings entitled prior to Jan 1, 2024.

 

Abbreviations: 

DRF: Development Request Form CRF: Credit Reservation Form HCP: Habitat Conservation Plan COI: Certificate of Inclusion 

GMO: Growth Management Ordinance LUP: Land Use Permit BP: Building Permit SFD: Single Family Dwelling

Additional Information

The LOHCP provides a pathway for infill development and new construction for residential, commercial, community, and public infrastructure projects that are currently on hold because of potential harm or “take” to the listed threatened and endangered species in Los Osos such as Morro Bay kangaroo rat, Morro shoulderband snail, Indian knob moutainbalm, and  Morro manzanita.   

Starting May 1,2026the general steps below apply to all property owners who would like to develop in Los Osos. Important: Please refer to the Update 4/23/2026 flow charts for specific timing and permit requirements for various development types. If you are unsure of what development types apply to your situation, please do not hesitate to contact Planning Staff.

General LOHCP Credit Reservation Process  

  1. Submit a Development Request Form (DRF) to request habitat mitigation credits. Applicants must include a Site Disturbance Plan, containing detailed information of proposed site disturbance and a Biological Visual Survey, completed no older than 1 year. The DRF must be submitted online via email to LOHCP Coordinator via email [email protected]  

  2. If the submittal is complete with required information and credit is available, the LOHCP Coordinator will issue a Credit Reservation Form (CRF) for the proposed project. The credit is reserved solely for site-specific development and is not transferable. *Note: The CRF functions as a temporary Certificate of Inclusion (COI) solely for the purpose of processing permit applications and includes defined expiration dates. The official COI will be granted when all applicable conditions of approval are met and LOHCP fees are paid with an issued building permit. 

(Construction Permit applications only, continue on to Step 3) 

  1. Once a CRF is obtained, property owner is responsible for submitting and pay initial building permit fees within 45 days to secure the reserved credits. Please make an appointment online at No Wait Inside - County of San Luis Obispo so our dedicated team members can provide assistance on the application intake. Failure to pay initial building permit fees within this timeframe will result in the CRF expiration and credits will be released back to the pool 

  2. Building permit submitted with CRF must be complete and ready for issuance within 1-year of accepted application. Within 30 days prior to permit issuance, it is the applicant’s responsibility to reach out to the HCP Coordinator to pay HCP fees and meet all applicable conditions of approval in order to obtain a formal Certificate of Inclusion (COI). 


 Project Contacts

Comments and questions regarding the Los Osos Habitat Conservation Plan may be submitted via email to [email protected] or mailed to the following address:

Department of Planning & Building

CONTACT US AT: 
[email protected] 
(805) 781-5600
976 Osos Street, Room 300
San Luis Obispo, CA 93408

Los Osos Habitat Conservation Plan files listed below:
Los Osos Habitat Conservation Plan (LOHCP)
LOHCP Appendices
LOHCP EIR
LOHCP IAMMP
LOHCP ITP
Los Osos Development Request Form (DRF)

 

 

The County's Growth Management Ordinance (Title 26 of the County Code) establishes the annual residential growth rate for the unincorporated county, based on existing housing stock and available community resources.    

The Los Osos Waitlist to Build was originally created in 1989 for undeveloped parcels in the community sewer service area. The Waitlist can be seen here:   

Single-Family Dwelling Waitlist 
Multi-Family Dwelling Waitlist

On December 16, 2025 the Board of Supervisors voted to approve a 0.4% growth rate (25 new dwelling units) for the community of Los Osos for calendar year 2026. This limit only applies to new residential dwelling units. Starting May 1, 2026 a land owner must apply for a growth allocation In order to build a new residence by submitting the Development Request Form (DRF) either via email to [email protected] or mail to 976 Osos St #200, San Luis Obispo, CA 93401  

Waitlist property owners are informed about County Growth Management actions taken by the Board of Supervisors by letter from the Planning and Building Department. Please see previously sent letters below. 

The Department of Planning and Building provides ongoing notifications to property owners on the waitlist regarding any Growth Management actions adopted by the Board of Supervisors. Copies of previously issued correspondence are included below.  

Waitlist property owners are informed about County Growth Management actions taken by the Board of Supervisors by letter from the Planning and Building Department. Please see previously sent letters below.
The Department of Planning and Building provides ongoing notifications to property owners on the waitlist regarding any Growth Management actions adopted by the Board of Supervisors. Copies of previously issued correspondence are included below

2026:

2025: 

January 1, 2025 Letter to Batch 1

February 18, 2025 Allocation Request Deadline Extension

September 25, 2025 Waitlist Property Owner GMO/LOHCP Update

December 24, 2025 Growth Rate and Batch Notification Letter
 

2024: 

December 3, 2024 Initial Waitlist Property Owners Letter 

December 20, 2024 Growth Rate and Batch Notification Letter 

 


Prior to January 1st, the County Board of Supervisors will determine the annual maximum allocation (allowed new dwelling units) for the upcoming calendar year. 75% of the total annual maximum allocation will be reserved for new dwelling units within the Los Osos sewer service area. County staff will then notify all Waitlist Property Owners of 1) their position on the Waitlist to Build, 2) their Batch Number in the upcoming calendar year, and 3) all applicable deadlines.  

Prior to July 1st 

Applicants that were notified of their Batch Number in the upcoming calendar year will have 30 days to respond in writing that they are either Ready to Submit or Not Ready to Submit a construction permit application. Applicants who declared Ready to Submit will have 45 days to submit a construction permit application.  

July 1st through August 1st  

All allocations from January to July that were unused will become available to the entire Waitlist and the applicant’s position on the Waitlist will be prioritized. Waitlist Property Owners who declare in writing that they intend to use an allocation for a new dwelling unit will have 45 days to submit a construction permit application. 

October 1st through December 31st  

All allocations from January to October that were unused will become available to the entire sewer service area, regardless of Waitlist position. Applications must submit construction permit applications prior to December 31st. 

Lack of response to the County’s Notice or failure to submit a construction permit application would not remove those properties from their position on the Waitlist for future available allocations. 

Key construction permit submittal requirements include and are not limited to: verification of water service, verification of wastewater treatment, and verification of compliance with the Los Osos Habitat Conservation Plan. 

Click Poster below to enlarge
Screenshot-2024-10-11-102754.jpg 

Prior to January 1st  

Prior to January 1st, the County Board of Supervisors will determine the annual maximum allocation (allowed new dwelling units) for the upcoming calendar year. 25% of the total annual maximum allocation will be reserved for new dwelling units outside of the Los Osos sewer service area, accessory dwelling units*, and deed-restricted affordable housing units. 

*Accessory dwelling units are not allowable in Los Osos per the County Code Title 23 Coastal Zone Land Use Ordinance. 

January 1st through July 1st 

Applications may request to use available applications through submittal of a construction permit application. The County will confirm the availability of allocations with interested applicants and allocations will be available on a first-come, first-served basis. 

After July 1st 

Allocations are prioritized for the Los Osos sewer service area. Applicants may request allocation and submit construction permit applications as soon as January 1st of the upcoming calendar year. 

Key construction permit submittal requirements include and are not limited to: verification of water service, verification of wastewater treatment, and verification of compliance with the Los Osos Habitat Conservation Plan. 

Click Poster to enlarge
GMO-POSTER-2.jpg
Scenario example: Vacant property is in the Los Osos sewer service area and #24 on the Waitlist to Build; Total maximum annual allocation is 20 new dwelling units; 15 new dwelling units are allowed in the Los Osos sewer service area (75% of Total). 

Click Poster to enlarge
GMO-POSTER-3-(1).jpg
Scenario example: Vacant property is in the Los Osos sewer service area and not on the Waitlist to Build; Total maximum annual allocation is 20 new dwelling units; 15 new dwelling units are allowed in the Los Osos sewer service area (75% of Total).  

Click Poster to enlarge
GMO-POSTER-4.jpg

The Title 19 Retrofit-to-Build program requires new development that uses water from the Los Osos Groundwater Basin to retrofit older plumbing fixtures in existing homes and businesses to save twice the amount of water the new development will use. Retrofit-to-Build applicants must receive a water conservation certificate prior to building permit issuance. The Title 19 Retrofit-to-Build program was updated in June 2023 to include updated average water savings requirements based on historical consumption data from the Los Osos water purveyors. To review the Los Osos Water Offset Study and update materials (Board of Supervisors hearing on February 27, 2024), please visit Los Osos Water Offset Study (2023). 

 

For built homes, the Title 8 Retrofit-Upon-Sale program requires sellers to retrofit existing plumbing fixtures to the low-flow requirements. 

Figure 1-1 from the Los Osos Community Plan (LOCP), 2024 summarizes the key requirements for new development in Los Osos that address issues concerning habitat, wastewater, and water supply. Other site-specific requirements may apply.

Depending on the specific site characterize and nature of a proposed development, a project may be subject to a discretionary land use permit approval (entitlement), before a construction permit can be applied for.   

For building permit application submittal, the following are required:  

  • Verification of water supply: water will-serve letter or on-site well has demonstrated adequate availability of potable water.  

  • Verification of wastewater treatment: sewer will-serve letter or on-site wastewater treatment system that complies with all applicable regulations.  

  • Residential growth rate allocation: written confirmation from the County of available allocations. 

  • Los Osos Habitat Conservation Plan (LOHCP) Certificate of Inclusion (COI), or equivalent. Starting May 1, 2026 the County will issue a Credit Reservation Form (CRF) as the equivalent interim COI for permit applications. 

For building permit issuance, the following is required:   

  • Compliance with Title 19 Retrofit-to-Build requirements, as applicable. 

No, at this time ADUs are currently not allowable in Los Osos per the Title 23 Coastal Zone Land Use Ordinance. This may be revisited by the County Board of Supervisors at a future date.

Reference