Renovation of Anderson Hotel in downtown SLO is almost finished. Here’s a look inside

A San Luis Obispo landmark is getting ready to reopen its doors to low-income tenants — and after around 16 months of renovations and repairs, it’s better than it’s been in years.

Last year, in its 100th year of operation, the Anderson Hotel at 955 Monterey St. closed its doors and was wrapped in blue plastic as the Housing Authority of San Luis Obispo launched a series of renovations to bring the building up to code and guarantee it can host low-income individuals and families for years into the future.

HASLO executive director Scott Collins said the Anderson Hotel — now the Anderson Hotel Apartments — represents a significant investment in affordable housing in downtown San Luis Obispo.

Now, with the smell of sawdust and fresh paint still hanging in the air, the historic hotel is getting ready for its grand re-opening and new residents.

“We literally have every source of funding thrown at this project,” Collins told The Tribune. “I think we did a phenomenal job.”

Historic residences updated with modern safety, comfort features

Originally constructed in 1923, the Anderson Hotel was long overdue for repairs when it was purchased by HASLO in February 2023.

Early in its history, the hotel was known for hosting celebrities and actors. Clark Gable and Marlene Dietrich stayed at the Anderson Hotel before visiting William Randolph Hearst at his lavish estate in the hills above San Simeon, according to HASLO’s website .

The hotel is one of San Luis Obispo’s tallest buildings , reaching 65 feet at the parapet and 90 feet at the top of the bell tower.

In 1978, the building was repurposed as an apartment complex for elderly and disabled residents.

In the past two decades, the property offered 68 privately owned units to elderly and disabled community members, according to a staff report on the building. Prior to HASLO’s renovations, Residents of the building made an average annual income of $9,000, according to the staff report.

The building was set to be sold by previous owners Bob Miller and Ben McAdams to Granada Hotel & Bistro owner Mike Kyle in 2021, but because Kyle didn’t have a plan for the existing residents, the state stepped in and asked that the building go to HASLO, Collins said.

Two years later, HASLO secured $2 million from the San Luis Obispo County Board of Supervisors to help purchase and repair the building — though that’s just a drop in the bucket financially, HASLO director of construction and development Michael Burke told The Tribune.

The repairs started in March 2023 and included seismic retrofitting, ground-level updates to the storefront system, accessibility updates, energy upgrades, fire safety updates, some electrical and plumbing upgrades and various aesthetic improvements, Burke said.

Virtually the entire building was re-floored, repainted and refitted both inside and out, with some aesthetic work continuing past the initial planned opening date, Burke said. It also received all new windows.

“Each window had a varying degree of damage,” Burke said. “We were able to replaster it back and make it look pretty seamless, which is pretty nice, but each window had major damage.”

Inside, thousands of feet of new water piping, electrical wiring and lighting were installed, including updating the hotel lobby’s original chandelier fixtures with modern bulb fittings, Burke said.

Radiators were replaced with steam boilers across the building, and the basement was reinforced against earthquakes and flooding, which had been a persistent issue with the building, Burke said.

All told, renovations to the 66-unit property cost north of $50 million — $25 million from low-income housing tax credits, $9.7 million from state tax credits, $11.6 million in HomeKey funding, a bank loan of $4 million, additional American Rescue Plan Act funds from the city and county of San Luis Obispo and $2 million in federal funds secured by Rep. Salud Carbajal , Collins said.

“We’ll get 30 years out of the floors, and paint on the exteriors is a 20-year investment,” Collins said. “The windows will be a 50-year investment. I feel like we’ve been able to put a building back together that’s at least a 50- to 60-year (investment), and then you start a clock over again.”

Who will live at Anderson Hotel Apartments?

When construction started, the building’s tenants were relocated to other HASLO properties with the promise that they’d receive first right of refusal when it reopened, Collins said.

When it closed, the Anderson Hotel had 40 residents remaining — 18 of which will be returning to the fully renovated building, Collins said.

The rest of the units will be filled over remainder of the year through the county’s coordinated entry system, which evaluates homeless and low-income people’s housing needs and placement, Collins said.

Like the previous incarnation of the hotel, units are deed-restricted for the next 55 years, meaning residents won’t pay more than 30% of their income, he said.

“We know some individuals have no income, so this is a great way for them to be stable and to find a place where they can heal and be part of community,” Collins said. “We also have case managers on site, and we’ll help individuals connect to services in our community.”

A handful of units will also be set aside to accommodate referrals from other San Luis Obispo County nonprofits including Transitions-Mental Health Association and the 5Cities Homeless Coalition , Collins said.

With the first batch of occupants — all “high acuity” clients with more urgent housing needs — moving in next week, the building will be bustling with life again soon, Collins said.

A grand opening is planned for October once final repairs have been completed and more residents have moved in, he said.

“When people come back, they’ll be surprised,” Collins said. “When we’ve done some tours, people are just amazed at the transformation that’s taking place from the aesthetic point of view, with new windows, new flooring, new paint and new cabinetry in some of the rooms. We’re really proud of that effort, and again, thankful and grateful to our funders.”

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