what a mess! it's hard to know from one article and all the commentary that follows who is right..
Here's the thing. I don't think most people on this site would consider this place to be a B&B. To begin with, there's no breakfast!
It's vacation rental that is going beyond what the County ever agreed could be done. She has a total of beds (and sleeper sofas) for 10 guests in the main house. Advertised occupancy in that building? 20
In the cottage, bed/futon for 4. Advertised occupancy: 6
Total occupancy? 34
That's not a B&B. That's a party house and it's an insult to the many lovely B&Bs in San Luis Obispo who actually do provide intimate (and legal) lodging.
There are, sadly, a lot of folks who don't think that the folks issuing permits will ever bother to look at the inn's website to get details. In this case, a cursory glance would tell anyone that the neighbor's complaints are legitimate and this so-called-B&B is not operating as permited.
It was foolish to try to expand beyond the already-stretched use of the land. But it was that last stretch that got her caught in her own web.
Good for the County for cracking down on that. Next step should be, IMHO, to revoke their permit as a B&B since that is not what is being operated at that site.