Welcome Home Village Housing Project Takes Shape in SLO

Transitional housing units arrive as city aims to reduce encampments in flood-prone area

Published on Feb. 10, 2026

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After years of planning and several delays, the Welcome Home Village housing project in San Luis Obispo is now taking shape. By May, residents are expected to start moving into the 54-unit transitional housing development, which is located in the Bishop Medical Center parking lot. The project was initially planned for 80 units but was scaled back, with the location also shifting from the original site near the Bob Jones Bike Trail.

Why it matters

The Welcome Home Village project is part of the city's efforts to move people out of encampments in a flood and fire danger zone near the Bob Jones Bike Trail. The state provided $13.4 million in funding to help reduce these encampments and provide transitional housing for up to 200 people.

The details

Last week, half of the manufactured homes were delivered to the site, with cranes lowering them into place. The transitional housing project is located in the Bishop Medical Center parking lot, a change from the original plan to site it near the Bob Jones Bike Trail. The number of housing units was also reduced from 80 to 54.

  • In June 2023, Gov. Gavin Newsom announced plans to provide SLO County with $13.4 million to serve 200 people from an encampment in a flood and fire danger zone.
  • In July 2023, the SLO County Board of Supervisors voted 5-0 to award the funds to the City of San Luis Obispo to help reduce encampments in the flood and fire danger zone.
  • Last week, half of the manufactured homes were delivered to the Welcome Home Village site.

The players

Gavin Newsom

The Governor of California who announced $13.4 million in funding for the Welcome Home Village project.

SLO County Board of Supervisors

The county governing body that voted 5-0 to award the state funding to the City of San Luis Obispo for the housing project.

City of San Luis Obispo

The local government entity that is overseeing the Welcome Home Village housing project.

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What’s next

Residents are expected to start moving into the 54-unit transitional housing development at Welcome Home Village by May 2026.

The takeaway

The Welcome Home Village project represents a collaborative effort between state and local governments to address homelessness and provide transitional housing for those living in dangerous encampments in San Luis Obispo. The scaled-back project still aims to serve 200 people, demonstrating the city's commitment to finding solutions for its unhoused population.