State denies appeal, new homes coming to Los Osos

March 17, 2025

By KAREN VELIE

The California Coastal Commission last week gave the green light for an additional 10 residential units at a mobile home park in Los Osos,  which are now slated to be some of the first new residential units following a 35-year building moratorium.

Los Osos’s moratorium – which was triggered by water supply issues, seawater intrusion and leaky septic systems – was lifted in Dec. 2024. After approving a community plan, San Luis Obispo County is now permitting limited new development in Los Osos.

During the past several years, San Luis Obispo County approved a permit for 10 new prefabricated manufactured homes at the existing 164-unit Morro Shores Mobile Home Park at 633 Ramona Avenue.

Patrick McGibney of the Los Osos Sustainability Group then filed a series of appeals to the California Coastal Commission arguing there is insufficient groundwater, overdraft of the basin and that the project would not increase the number of affordable housing units.

During the past few years, the Coastal Commission has spent considerable time evaluating Los Osos’ water supply. Staff determined the Los Osos Groundwater Basin is not in overdraft and that there is sufficient water to supply the additional 10 units.

“There is no evidence that the project will result in any significant adverse coastal resource impact, and in fact the opposite is true in that the best available science shows the groundwater basin to be in a sustainable state,” according to the Coastal Commission staff report. “The county approved project is also a relatively small but welcome addition to an existing developed mobile home park.”

During a Coastal Commission meeting on March 12, the commissioners voted not to hear McGibney’s appeal, an action that allows the project to move forward. The commissioners found that the project would save water while providing much needed affordable housing.