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City manager: $21 million in state funds for hospital‑area affordable housing; rental‑inspection program to be reactivated
Summary
At the Jan. 23 Planning Commission meeting, City of Clear Lake staff said a draft EIR for the airport project is being finalized, a 29‑acre, 22‑lot Burns Valley subdivision is expected to start construction this year, the state has provided about $21 million to an applicant for affordable housing near the hospital, and the city will implement its municipal rental registration and inspection ordinance.
At the Jan. 23 Planning Commission meeting City of Clear Lake staff gave several housing and planning updates: the draft environmental impact report for the airport project remains in preparation, a 29‑acre, 22‑lot subdivision in Burns Valley is expected to begin construction this year, and the city said the state provided roughly $21 million to a housing applicant to advance an affordable housing project on state‑owned land near the hospital.
City staff also told commissioners that the city will move to implement the municipal rental registration and inspection ordinance that has been in the municipal code since 2008 but has not been active; staff said new technology and amendments will allow the program to start in the coming months and that the program will require inspection of rental properties, hotel rooms and short‑term rentals unless otherwise exempted by code changes.
Why it matters: the updates affect the city’s housing supply, enforcement of rental‑housing standards and longer‑term planning for infrastructure and wildfire risk in the city.
Key details from staff report - Airport EIR: Staff said final technical studies are being finalized and that the city remains on track to bring the draft EIR back to the commission and for council certification in May or June 2025. - Burns Valley subdivision and 30 Sixth Avenue: The city said construction is expected this year on a 29‑acre, 22‑lot subdivision in Burns Valley. The ownership group also purchased about 20 lots on 30 Sixth Avenue for housing development. - Affordable housing near the hospital: Staff said state funding of about $21,000,000 has been allocated to an applicant proposing affordable housing on state land near the hospital; that funding, staff said, should allow the project to move forward. - Rental registration and inspection: Staff said the municipal code contains a rental registration and inspection ordinance that has not been implemented since Feb. 2008. The council directed implementation and staff are finalizing amendments and new technology to administer the program. Staff said inspections could include rentals, hotels and short‑term rentals; additional coordination with the fire district and possible defensible‑space or home‑hardening certification was discussed. - Regional housing trust fund: The city has joined two other jurisdictions in a regional housing trust fund that pools local dollars to pursue state funding opportunities and support new or rehabilitated housing.
Commissioner discussion and context Commissioners and staff discussed the difficulty of creating moderate‑income single‑family housing given current construction costs, permit and connection fees, and market values. Staff noted the city has met affordable‑housing targets for several income categories and said the hospital‑area project will move the jurisdiction further toward meeting state goals; staff also emphasized the need to rehabilitate aging affordable complexes built in the 1990s.
Next steps Staff said it will return to the council with amendments and an implementation schedule for the rental registration program and will continue work on the airport EIR, subdivision permitting and housing trust fund priorities. Staff gave no specific dates for certification beyond an expected May/June council timeline for the airport EIR.
