Atascadero city staff reports progress on housing element and RHNA; ADUs and several multifamily projects noted

City staff told the Atascadero City Council the city's housing production is progressing against its Regional Housing Needs Allocation and outlined active and proposed projects, affordable‑housing efforts and policy work.

Community Development Director Phil Dunsmore delivered the annual progress report the state of California requires. Dunsmore said Atascadero's RHNA target for the current cycle is 843 units, broken down as 207 very low, 131 low, 151 moderate and 354 above-moderate units. With carryover and permits issued to date, Dunsmore said the city has recorded 422 units in the cycle and has a remaining balance of 307 units.

Key details and projects: Staff said accessory dwelling units (ADUs) are a major contributor to the city's totals; the city counts ADUs as half in the low-income category and half in the moderate category for RHNA purposes. Dunsmore said 24 new ADUs were approved in the last year and that ADUs currently help the city meet low- and moderate-income counts because of their size and typical characteristics. Dunsmore warned that future market shifts could change whether individual ADUs qualify in those categories if rent studies change.

Staff listed several active and proposed projects: Del Rio Marketplace (including a Valley Fresh grocery and up to 92 apartment units), Barrel Creek (site improvements for up to 60 units plus commercial space and a hotel), Dove Creek (about 71 condominium units plus a hotel), Del Rio Ridge and Paseo Paloma (affordable projects led by People's Self Help Housing), Emerald Ridge phases 2 and 3 (about 72 additional units), Cal Manor 2 (about 75 low- and moderate-income units nearing completion), and conversions such as Empire Inn. Dunsmore said some affordable projects are approved and waiting on grant funding, and several projects already have construction permits filed for site or infrastructure work.

Policy updates and financing: Staff recapped local policy work completed in 2024, including ADU ordinance updates, design standards and permit-streamlining measures; staff noted ongoing work on the general plan, land-use and circulation elements and that the city issued roughly 1,850 construction permits in 2024 (including minor permits) and about 18 new residential permits. Councilmembers asked about ADU counting and affordability: Dunsmore confirmed the city does not regulate ADU rental rates and that the ADU counting method relies on a countywide rent study; the council discussed a 17-year deferral option the city offered to help affordable developers by deferring development impact fees as a low-interest loan.

What it means: Staff said the city is ‘‘building more than a hundred units every year’’ and that if proposed projects and funding move forward, Atascadero is positioned to meet or exceed its RHNA goals for the cycle. No formal action was required to submit the report to the state; the clerk confirmed receipt was sufficient and no council motion was necessary.