The goal of this project was to provide low income entry level housing in an existing blighted neighborhood. The solution should encourage community, historical context, and environmental sensitivity. Created as a master planned community Atascadero’s birth began in 1916. At that time designs were approved based on community design standards. Many houses were stick built in the arts and craft style of the day. This project seeks to set an example for neighborhood revitalization for future higher density housing projects in the historical neighborhood. The craftsman detailing was necessitated by City Planning and the historical cottage next door to the project. The site is infill and recovered the existing 1970’s tract ranch house. Two additional houses were constructed around a courtyard. The project was executed as a design-build project by the architect. Details were worked out on site often on the building. Several Green Building Strategies were incorporated in the project including tankless water heaters, drought tolerant native landscaping, deciduous trees at courtyard for shading, permeable paving, water collection and rain barrels. The Santa Ysabel Bungalow Court Project is a smart growth project, with-in walking distance to shopping, bus route and entertainment.