Chico Council debates infill development and housing strategies amid community concerns

Chico City Council members are taking significant steps to address the city's housing crisis, emphasizing the need for infill development and a shift away from sprawling subdivisions. During the June 3, 2025, meeting, council members and community stakeholders discussed the pressing need for diverse housing options in Chico, where the current inventory of homes is critically low.

The council recognized that infill development—building on vacant or underused land within existing urban areas—is both necessary and inevitable. Advocates argue that delaying such projects will only increase costs in the future, urging the city to act now to preserve its natural beauty and compact urban form. The discussions highlighted a consensus that infill is essential for maintaining Chico's appeal while accommodating growth.

Several speakers pointed out the challenges posed by high impact fees that disproportionately affect smaller housing developments. Derek Sanderson, a local developer, shared his experience of attempting to develop a small infill lot, noting that the fees were nearly equivalent to those for larger single-family homes, making such projects financially unviable. He advocated for a tiered impact fee structure that would better reflect the actual impact of different types of housing developments, thereby encouraging more affordable housing options.

The meeting also addressed the community's recent rejection of the Valley's Edge development, which was seen as a move against car-dependent sprawl. Residents expressed a desire for more sustainable, community-oriented neighborhoods that utilize existing infrastructure. This sentiment was echoed by multiple speakers who called for innovative approaches to housing, such as repurposing abandoned buildings and creating mixed-use developments.

As the city prepares to update its general plan, there is a strong push for decisions to be guided by smart growth principles. This approach aims to ensure that Chico develops in a way that is environmentally sustainable and economically viable, providing housing options for all residents, not just the affluent.

The council's discussions reflect a growing recognition of the need for a balanced approach to housing that accommodates both single-family homes and multifamily units. With the current housing market showing a significant shortage—only 139 single-family homes available for a population of over 100,000—there is an urgent call for action to meet the diverse needs of Chico's residents.

As the city moves forward, the emphasis will be on fostering community input and collaboration to create a housing strategy that aligns with the values and needs of Chico's residents. The outcome of these discussions will play a crucial role in shaping the future of housing in the city, ensuring that it remains a livable and vibrant community for all.