Developer Proposes 98-Unit Affordable Housing Conversion in Planned Industrial Zone

The City of Carlsbad's Planning Commission has approved a significant project that will transform an existing hotel into a residential complex, reserving 15 units for affordable housing. This decision, made during the meeting on August 20, 2025, is expected to enhance the community by providing much-needed housing options while maintaining compatibility with the surrounding industrial area.

The project will feature 123 parking spaces, exceeding the 98 required by city code, and will include amenities such as two pickleball courts, a dog run, and a bike and surfboard storage area. The site is strategically located within a larger industrial zone, surrounded by over 25 local businesses, which will support both residential and commercial activities.

In line with state density bonus laws, the developer aims to qualify for additional benefits by reserving 5% of the units for very low-income households. This allows for an increase in the project's density, potentially accommodating up to 150 units, although the developer has opted to convert the existing 98 hotel rooms into residential units instead.

To facilitate this conversion, the developer has requested four waivers from existing development standards. These include adjustments to setback requirements, community recreational space allocations, and building height restrictions. The waivers are intended to preserve the existing structure's design while providing necessary recreational spaces for residents.

The Planning Commission's approval reflects a commitment to addressing housing needs in Carlsbad while ensuring that new developments align with the city's industrial character. As the project moves forward, it is anticipated to foster a vibrant community where residents can live and work in close proximity to essential services and employment opportunities.