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San Luis Obispo council removes tenant commissioner after HASLO alleges safety, boundary violations

San Luis Obispo City Council · December 16, 2025
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Summary

The San Luis Obispo City Council voted 5-0 to remove tenant commissioner Nancy Welsh after HASLO staff described repeated boundary violations, safety incidents and misrepresentation of authority; Welsh denied the allegations and asked the council to delay a vote while HUD and Sen. Padilla's office review the matter.

The San Luis Obispo City Council voted 5-0 at a special meeting to remove tenant commissioner Nancy Welsh of the Housing Authority of the City of San Luis Obispo (HASLO) after the authority's executive director described a pattern of conduct she said endangered residents and staff.

Michelle Pedego, identified in the meeting as HASLO executive director, told the council the authority was requesting removal under Health and Safety Code 34282. Pedego said the conduct included repeated boundary violations in which the commissioner acted in a staff capacity despite requests to stop, safety incidents that involved pepper spray and physical contact with a staff member, attempts to enter employee-only areas, misrepresenting that she was an employee with authority over residents' housing, and allowing a non-tenant with an active arrest warrant to stay in a vacant unit. Pedego said staff issued lease-violation notices, conducted investigations and received multiple consistent reports from residents.

"The behavior is inconsistent with expectations of a commissioner, and it's raised significant concerns with resident and staff safety," Pedego said, summarizing HASLO's reason for the removal recommendation.

Nancy Welsh addressed the council in a 10-minute allotment and denied the allegations, saying she had not been shown sources of complaints and had not been given an opportunity to respond. Welsh said HUD and U.S. Sen. Alex Padilla's offices had begun reviewing the situation and asked that any council vote be postponed until federal findings were available. "Given that federal oversight is now active, I respectfully request that any vote be postponed until their findings are available," Welsh told the council.

Council members asked about due process and documentation. Pedego said she personally posted the required 10-day notice on the commissioner's door on Dec. 4 and followed up by mail and email. She said there had been one in-person meeting, two lease-violation notices and numerous emails and that staff investigated multiple resident reports. Pedego also said the Tax Credit Allocation Committee had sent correspondence about unrelated lighting repairs at Del Rio Terrace but that HASLO had received no correspondence about the particular complaint from HUD.

City Attorney counsel told the council the hearing itself is the process required under statute for removal of a publicly-confirmed tenant commissioner, and that the council must hear the matter in public.

Mayor Stewart moved to remove Commissioner Welsh; the motion was seconded by Council member Marx. In a roll call, Mayor Stewart, Council member Marks, Council member Schorzman, Council member Boswell and Vice Mayor Francis each voted "yes," and the motion passed 5-0.

Mayor Stewart expressed regret that the council had to take the step and wished HASLO and Commissioner Welsh well.

The council did not announce further administrative steps in the meeting transcript; the vote was a formal removal vote taken during the special meeting.