Key Permitting Requirement for New Ground Disturbance - Los Osos Habitat Conservation Plan (LOHCP)

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 mountainbalm, and Morro manzanita. Participating in the County’s Community-wide Incidental Take Permit provides new development and construction projects that will cause ground disturbance an opportunity to offset potential habitat destruction by following applicable measures to avoid, minimize, and mitigate (by purchasing habitat mitigation credits) take/impact to the protected species and by obtaining a Certificate of Inclusion (COI).

Steps to obtain a Certificate of Inclusion (COI)

Step 1: Submit a Development Request Form (DRF)

Development Request Form (DRF)

To request habitat mitigation credits, the property owner or designated agent must submit a Development Request Form (DRF). The DRF must be submitted via email to the LOHCP Coordinator at [email protected].

*DRF can only be submitted for projects with land use permits that are “accepted for processing” or that only require the building permit process

DRF application must include:

1. Site disturbance plan containing detailed information of total proposed site disturbance (see example below). Total proposed site disturbance is equal to new permanent disturbance (such as structures, decks, hardscaping and driveways) and temporary disturbance (such as grading, landscaping, fire mitigation, trenching for utilities, construction staging areas).

2. Biological visual survey targeting LOHCP species (survey no older than 1 year for species discussed in Table 5-2 and Table 5-3 of the LOHCP) performed by a qualified Biologist. List of qualified Biologists, as discerned by the County: Qualified Environmental Consultants - County of San Luis Obispo

3. Construction plans clearly showing the location and square footage of the structures, proposed hardscaping, and driveways. Note: utility, erosion, grading, and landscaping plans may be required to evaluate the total ground disturbance.

4. Water and sewer (except for on-site septic systems) continue-to-serve letter (for existing service) or intent-to-serve letter (for new service) as applicable for new construction.

Step 2: Receive a Credit Reservation Form (CRF)

If the application is deemed complete by the LOHCP Coordinator and habitat mitigation credits are available, the LOHCP Coordinator will issue a Credit Reservation Form (CRF) for the proposed project. 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. 

The CRF confirms total amount of reserved habitat mitigation credits and lists any avoidance and minimization measures (AMMs) to avoid and/or minimize take of/impacts to species discussed in Table 5-2 and Table 5-3 of the LOHCP that could influence the building permit process. The habitat mitigation credits are reserved solely for site-specific development and are not transferrable between projects.

Step 3: Apply for a building permit

After obtaining a Credit Reservation Form (CRF), the owner can proceed to apply for a building permit in-person by appointment. The LOHCP Coordinator reviews the building permit plans to:

1. Finalize area of ground disturbance
2. Add LOHCP Fees to building permit
3. Add applicable conditions

Building permit application initial fees must be paid within 45 days of CRF issuance, otherwise LOHCP credits expire and are available to the collective credit pool.

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.

For projects requiring only a building permit (no land use entitlement required) or projects with an approved or accepted for processing land use entitlement at the building permit stage:

45 days after CRF issuance: building permit must be submitted
1 year after CRF issuance: building permit must be ready for issuance
30 days prior to building permit issuance: applicant must pay LOHCP fees and meet all applicable conditions

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.

Step 4: Obtain a Certificate of Inclusion (COI):

A Certificate of Inclusion (COI), including the property owner and operator (if applicable) in the County’s Community-wide Incidental Take Permit, will be issued with the building permit. The COI is a legally binding agreement requiring that the covered activities permitted on the property do not exceed the take authorization granted by the County. The COI also includes specific measures (AMMs) that must be followed to protect wildlife during construction.

At this point, the building permit is issued and habitat mitigation for anticipated ground disturbance resulting from a project is formalized and the project may break ground!

FAQs

What are habitat mitigation credits?

The LOHCP includes a ‘stay-ahead’ provision requiring the County to accrue sufficient mitigation credits before conferring take coverage to project proponents. This ensures that the potential “take”/impacts resulting from new development doesn’t outweigh the habitat benefits of the LOHCP. The County accrues habitat mitigation credits through completing habitat conservation and restoration projects, like removing invasive plant species, acquiring easements or land for habitat conservation, and other activities listed in the LOHCP. In most cases, one credit covers one square foot of ground disturbance resulting from a project.

How do I obtain habitat mitigation credits?

Property owners with eligible projects can apply for a Certificate of Inclusion (COI) to receive coverage under the County’s community-wide incidental take permit.

When are habitat mitigation credits available?

In a typical year, habitat mitigation credits become available to project applicants throughout the calendar year on a first-come, first-served basis.

At that time, the project applicant may email a complete Development Request Form (DRF) along with all required documents to: [email protected]

DRF applications will be evaluated for completeness and processed in the order of complete applications received. Credits will be awarded based on availability.

What types of projects require habitat mitigation credits?

Any project that results in new ground disturbance, including removal of vegetation or soil, is required to avoid, minimize, and mitigate potential take/impact to habitat. The LOHCP permit area (which includes most of the urban area of Los Osos) is unique as it supports several endemic biological communities within the Baywood fine sands ecosystem.

Private projects, infrastructure projects, and community projects that result in new ground disturbance are all required under the LOHCP to avoid, minimize, and mitigate ground disturbance.

The table below provides a detailed breakdown of the way that habitat mitigation credits are allocated and the annual timeline for mitigation credit allocation.

January 1^st	Private Development (50%)	Undeveloped Parcels (75%)	Residential (90%)	Waitlist (75%)	October 1^st	Collective Credit Pool On October 1 each year, all remaining mitigation credits in all categories will be pooled together and placed into a single credit pool. Credits will be available to any project requiring a COI and mitigation credits and will be allocated on a first come first serve basis.
				Not on Waitlist (25%)
			Commercial (10%)
		Developed Parcels (25%)
	Infrastructure Projects (40%)	General Infrastructure Projects (50%)
		Water Basin Infrastructure Projects (50%)
	Community Projects (10%)

When habitat mitigation credit availability is limited, property owners are strongly encouraged to review the strict timeframes and reservation requirements needed to secure credits for development in Los Osos. 

How many habitat mitigation credits were available in 2026?

For the May 1st, 2026 habitat mitigation credit release, approximately 55,000 habitat mitigation credits were made available from a habitat restoration project successfully completed by the County. The available credits were distributed between private development, infrastructure projects, and community projects.

Remaining habitat mitigation credits will be carried over to a collective credit pool, available on or around October 1st, 2026.

Check back at this website on or around October 1st, 2026 to see the amount of habitat mitigation credits available to the collective credit pool.

References:

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)

Project Contacts

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

Department of Planning & Building

976 Osos Street, Room 300

San Luis Obispo, CA 93408