SLO County Planning Commission approves Nipomo housing development

September 17, 2025

By KAREN VELIE

The San Luis Obispo Planning Commission voted on Tuesday to approve changes to a large housing development in Nipomo, known as the Dana Reserve. The changes cut the number of affordable housing units in half.

In May following months of negotiations, the developer for and opponents the Dana Reserve reached a settlement agreement that whittles down the number of housing units while providing a “significant” financial payment.

In April 2024, the SLO County Board of Supervisors voted 3-2 to approve the then more than 1,400-unit housing development located on the west side of Nipomo directly adjacent to Highway 101. The controversial development also includes commercial, recreation and public services such as a dog park.

The Nipomo Action Committee and the California Native Plant Society filed a suit on May 28, 2024 against San Luis Obispo County in an attempt to stop the development.

As part of the settlement agreement, the number of housing units will be reduced by 229, or approximately 16%.

In addition, the parties agreed to design modifications to protect sensitive plant species and 195 coast live oak trees.  Also, NKT Development will pay a “significant” amount of money to be earmarked for public benefits specific to Nipomo. The Nipomo Action Committee which will oversee the funding.

The proposed changes require review and approval by the SLO County Board of Supervisors.