Big building with ocean views is going up in Pismo Beach. What is it?
A new development promises to bring affordable housing to a rare spot in San Luis Obispo County: Shell Beach.
After breaking ground on the project in December 2022, Shell Beach Senior Apartments — a new affordable housing complex for low-income people over the age of 55 — is entering some of the final phases of construction as it approaches its spring 2024 opening date, Housing Authority of San Luis Obispo County vice president Scott Collins said.
The project, located next to Kanpai Sushi on Shell Beach Road, will provide 25 units of affordable housing with coastal views and one manager unit in a community that lacks many sources of dense affordable housing, Collins said.
“It’s nice to see a project occur in a very affluent area,” Collins said. “Our friends over at People’s Self-Help Housing and other nonprofit developers are seeking to bring projects to more mixed areas.”
All 25 units will be single-bedroom apartments or studios, a decision Collins said was rooted in the needs of the senior population and the lack of affordable units of that size in the area.
Project still on track despite winter storm delays
Collins said the project underwent a tumultuous first few months after construction crews broke ground in December 2022.
Rising costs from inflation, the retirement of former HASLO executive director Scott Smith and the winter storms that swept through San Luis Obispo County created some initial uncertainty that the project would be completed on time, Collins said.
Supply chain issues — which limited construction growth in late 2021 and 2022 — also introduced several delays, specifically for some electrical components such as switchgears, which regulate power systems, Collins said.
“There’s a massive supply chain issue (with electrical components) because there’s enhanced demand from the move to go fully electric,” Collins said. “The last pieces are supposed to ship in February, so that’s something we were tracking closely.”
Since then, however, the project has benefited from good weather and a “fantastic partner” in construction firm Pacific Development Group, Collins said.
The project features eight 335-square-foot studio apartments and 17 461-square-foot one-bedroom units, Pacific Development Group president Joe Michael said when the project was announced earlier this year.
Presently, the project has completed its framing and fixtures for its electrical, mechanical and plumbing components, along with windows and exterior doors, Collins said.
Workers are currently focusing on the building’s external features, such as siding, trim and railings, Collins said.
What would it cost to live at Shell Beach Senior Apartments?
Project applicants must be over the age of 55 and fall into the low- and extremely low-income categories, Collins said.
For most of the units, rent is determined based on the amount of money a client makes compared to San Luis Obispo County’s area median income, which is approximately $82,000, Collins said.
Residents who make 30% of the average median income would pay $513 a month for a studio apartment, while one-bedroom units would cost $529 a month.
A resident making 40% of average would pay $705 for a studio or $735 for a one-bedroom unit, while residents making the highest level of income — 50% of average — would pay $896 for a studio apartment or $940 for a one-bedroom apartment, Collins said.
HASLO also has committed eight project-based vouchers to the new complex, which don’t factor in the average median income as a measure for how much a client would pay, Collins said.
Instead, project-based vouchers are assigned to specific units within the development and cap the amount a resident would pay at 30% of their monthly income, which, for seniors, often consists solely of their monthly Social Security benefits.
Collins said every housing authority in the country has a limit on the number of vouchers it can use for a project, he said.
General projects may assign vouchers to 20% of the units, while “special need” projects — which serve specific populations such as people with disabilities or exclusively homeless individuals — can add another 10% to that calculation.
In the case of Shell Beach Senior Apartments, its eight project-based vouchers can serve just under 30% of the units.
The application window for the complex has not yet opened but will be announced once the project is one to two months from completion, Collins said.
Currently, barring any holdups, the project is set to open in May 2024, Collins said.
Like most HASLO projects, when the application window opens, applicants can sign up for a wait list and will then be selected by lottery, Collins said.
“Our website, HASLO.org, has all that information, and people can check there before it’s too late,” Collins said. “We anticipate a significant amount of interest.”
This story was originally published November 3, 2023 at 8:00 AM.
