Answer: Slugs can wreak havoc on hosta but they can be controlled. You can sprinkle diatomaceous earth on the soil surface around the plants, set out slug traps baited with beer, or put out commercial slug baits according to the label instructions. You can also hand pick them in the evening or at night and drop them into soapy or salty water.You can also encourage their predators (toads, snakes, and birds) and certainly avoid watering in the evening because this attracts slugs. There are some reputedly "slug resistant" hostas with thicker leaves, but if you have a bad slug problem then they will likely also suffer.
The "Red Baron" grass tolerates shade somewhat but actually is a sunlover. It stays small. Some other plants to consider for a shady location would be pulmonaria or ferns, for partial shade perhaps perennial geraniums, and for a sunnier location, sedums such as "Autumn Joy".
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