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Laguna Honda housing project redesigned after $20 million state funding expected to be delayed, JCC told
Summary
Mercy Housing and city officials told the Laguna Honda Joint Conference Committee the state multifamily Notice of Funding Availability (NOFA) that the project expected will not be released in the planned 2026 cycle; the project may move from two phases to one, reducing unit counts and dropping assisted‑living plans.
The Laguna Honda Joint Conference Committee (JCC) reported to the Health Commission on Sept. 22 that a planned state funding source—about $20 million tied to a multifamily Notice of Funding Availability (NOFA)—is not expected as previously timed, and that Mercy Housing and the Mayor’s Office of Housing and Community Development are redesigning the Laguna Honda campus housing project to preserve feasibility.
What JCC heard Commissioner Guillermo reported the JCC review from the Sept. 8 meeting. Committee members were told the state NOFA that the project had expected will not be available in the timeline anticipated; the project had been relying on that $20 million plus a local $50 million bond source. Mercy and the mayor’s housing staff are considering moving the proposal to a single‑phase development to reduce capital costs and simplify operations. That reconfiguration, commissioners were told, would increase efficiency and bring units online faster but would reduce the total unit count and eliminate the proposed licensed assisted‑living component.
Next steps and financing An updated concept plan and financing approach will return to the JCC at its next meeting (delayed until December per the JCC schedule). Committee members were told Mercy and city housing offices are also exploring other funding sources to close the gap created by the state NOFA delay.
Public comment and advocacy A public commenter urged the Health Commission to cancel the project and reallocate local funding to other senior housing projects, arguing the Laguna Honda campus site lacks nearby neighborhood retail and that redesigns will reduce unit counts. The commenter asked the commission to reassign municipal funding to projects that can produce housing faster.
Ending The JCC will review an updated plan and financing at its next scheduled meeting; commissioners and the public can expect revised unit counts and financing scenarios then.
