The San Luis Obispo City Council unanimously approved an ordinance that will allow tiny homes in city limits.

At Tuesday night’s meeting, council members voted to establish new criteria that regulate tiny homes in San Luis Obispo. The issue has been up for debate for months.

The ordinance defines tiny homes as being no larger than 400 square feet excluding loft areas. The home must be installed on a trailer that is registered with the California DMV.

The Community Development Director would review approval of tiny homes every three to five years following inspections. The tiny homes would also be required to have an exterior that looks similar to traditional homes, and they would be allowed to be placed in the back of residential properties.

The ordinance is scheduled for a second reading at the January 8 city council meeting. If approved, the ordinance would go into effect on February 8.