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Take Stairs: San Luis Obispo's Innovative Stairwell Conversion to Affordable Housing

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  Published in House and Home on Sunday, November 23rd 2025 at 6:19 GMT by Los Angeles Times

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“Take Stairs”: How One California City is Re‑imagining Urban Housing

The California housing crisis is one of the most intractable social problems facing the state. Housing prices have climbed so fast that even middle‑income families are struggling to find an affordable place to live, and the state’s rent‑burdened population is now one of the largest in the nation. In a bold departure from the conventional approaches of zoning hikes, rental‑price controls, or large‑scale construction projects, the city of San Luis Obispo (the “one California city” in the article’s headline) has announced a radical new initiative: “Take Stairs.”

At its core, the program encourages developers and property owners to convert existing stairwells into small, livable units—essentially turning a building’s under‑used vertical infrastructure into a source of affordable housing. The concept may sound whimsical, but the city’s planners argue that the stairs that have been “dead space” for decades could be re‑imagined as the backbone of a new generation of compact, walk‑to‑work homes.

Why Stairs?

The article opens by laying out the problem. California’s housing market has been dominated by “single‑family‑home” developments for decades, resulting in a chronic mismatch between supply and demand. New construction has mostly catered to higher‑income buyers, leaving middle‑ and low‑income residents in a bind. The state’s housing supply is further hampered by stringent regulations and a scarcity of vacant lots.

In contrast, the city of San Luis Obispo has a high concentration of multi‑story office and commercial buildings that have been partially abandoned or under‑utilized since the 1990s. Within those structures lie countless stairwells that have never been used for residential purposes. According to city data, over 10,000 such stairways could be converted into tiny housing units that meet California’s “micro‑unit” standards (a dwelling that can house a minimum of three people).

The “Take Stairs” proposal taps into this overlooked reservoir of potential. By turning the vertical spine of a building into a network of self‑contained units, the city can add hundreds of units in a matter of months, without the time‑consuming process of new construction or the need for large land parcels.

How It Works

The article details the policy mechanism the city will use. First, it will create a density bonus program that allows developers to exceed the city’s base density caps if they commit to converting at least 25 % of the building’s stairwells into livable units. In return, developers receive a 15 % density bonus and a 10‑year exemption from certain property‑tax assessments.

The city also announced a “Stair‑to‑Home” grant program that will cover up to 30 % of the renovation costs associated with converting a stairwell into a micro‑unit. The grant will cover safety upgrades—fire‑stopping, egress modifications, and HVAC integration—as well as the cost of adding a window and insulation.

In addition, the city has partnered with the California Department of Housing and Community Development (HCD) to streamline permitting. The HCD has pledged to issue expedited approvals for “stair‑based” conversions, and will provide a dedicated liaison office in the city to help developers navigate the complex intersection of building codes, fire regulations, and housing standards.

A Pilot Project

One of the most compelling sections of the article is the in‑depth look at the city’s pilot project—an old Pacific Gas & Electric (PG&E) office building on 8th Street. The 11‑story office tower was built in 1987, and its two stairwells have been closed off for safety since the early 2000s.

Under the new plan, the building’s stairwells will be converted into 14 micro‑units, each roughly 150 sq ft. The units will include a tiny kitchenette, a sleeping loft, and a bathroom with a shared toilet. The pilot will be overseen by a consortium of local architects, engineers, and a housing nonprofit called Hands On Housing. The project’s estimated cost is $1.8 million, of which $540,000 will be covered by the city’s grant.

Hands On Housing’s executive director, Maria Sanchez, expressed optimism: “These units will give families a chance to live in the city at a fraction of the cost of traditional apartments, and they’ll be close to transit, schools, and parks.” She also emphasized that the project would set a precedent: “If the pilot succeeds, we’ll replicate the model in other buildings throughout the city, and eventually in neighboring counties.”

Safety and Code Concerns

The article doesn’t shy away from the regulatory hurdles. Converting a stairwell into a living space requires meeting rigorous fire and egress codes. The city’s building inspector, David Li, explained that each unit must have a dedicated fire escape route separate from the main building’s exits. Additionally, the stairwells will need fire‑proofing, a sprinkler system, and a backup power supply for the heating and cooling units.

Li notes that the cost of these upgrades is a significant barrier for developers. That is why the city’s grant program is so vital: “Without the financial cushion, developers would be hesitant to take on a project that seems risky and costly,” he said.

Wider Implications

Beyond the immediate housing gains, the article argues that the “Take Stairs” initiative promotes walkable, mixed‑use communities. The stairwell units will be located in the heart of the city, close to public transit, which could reduce reliance on cars. The city plans to integrate a “Stair‑to‑Transit” map that will guide residents to the nearest bus stops and light‑rail stations.

In the “Future Outlook” section, the article cites research from the Urban Institute showing that micro‑units can reduce the average household size in a city by 1.5%, a modest figure that nevertheless has a significant impact on housing supply. It also highlights a recent California law that allows cities to use “vertical infill” as a tool for affordable housing, giving the “Take Stairs” program a legal framework.

Conclusion

The “Take Stairs” initiative is a creative attempt to stretch the city’s existing building stock to meet the urgent demand for affordable housing. By re‑thinking what a stairwell can be, San Luis Obispo is turning a long‑ignored space into an opportunity—an opportunity that could transform the city’s housing landscape, promote walkability, and set a new model for other California cities grappling with the same problem.

The article ends on a hopeful note, suggesting that if the pilot project goes well, the city could add up to 500 new units over the next five years, potentially lowering the average rent by up to 15 %. Whether the stairs will indeed become a path to affordable housing remains to be seen, but the city’s boldness and willingness to experiment may just be the spark California needs to break out of its housing slump.