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County directs start of regional affordable-housing strategy; outline due by Halloween
Summary
Monterey County staff presented a 2024 housing report and the board directed staff to prepare a county-focused strategic plan to improve affordable housing production, update inclusionary rules and recommend revenue options. Supervisors asked for an initial outline to return by Oct. 31 and directed continued coordination with cities.
Monterey County’s Housing and Community Development department presented a 2024 housing report on June 24 and the Board of Supervisors directed staff to begin work on a county-focused affordable housing strategic plan and to update county administration of its inclusionary housing program.
What staff reported: Darby Marshall told supervisors the county has supported roughly 7,300 deed-restricted affordable units since 1990 (most inside city limits) and that implementing the sixth-cycle regional housing needs assessment (RHNA) will require more than doubling historic production. Marshall noted the county’s inclusionary ordinance has produced owner-occupied and rental affordable units over decades, but an average project size in unincorporated areas is small (28 units), which limits the number of mandatory inclusionary units that parcel-level rules can yield.
Board direction and rationale: Supervisors directed HCD to develop an affordable housing strategic plan that examines (a) the county development environment; (b) policy alternatives and concessions/incentives; (c) financing models and a possible local housing trust fund governance structure; (d) ways to accelerate pipeline projects; and (e) administrative improvements for loan/asset management. Supervisors asked staff to consider what has worked in similar California counties and to prioritize recommendations that are workable in Monterey County’s geography and market.
Timeline and next steps: The board asked staff to return with an outline of the strategic-plan scope by Oct. 31, 2025 (outline accepted as a near-term deliverable), and directed staff to pursue engagement with incorporated cities. The board also asked HCD to return with progress updates and recommended administrative changes to the inclusionary ordinance and the county’s grant/loan management systems.
Why it matters: The county must reconcile limited local funding, high land and construction costs, and long multimillion-dollar carrying costs for projects that may take years to entitle and build. Marshall told the board the county’s local housing trust fund currently holds about $7.2 million, with some funds earmarked for projects; the board will consider governance and sustainable funding options.
Key quote: “What policies and programs have communities similar to Monterey County used to increase the supply of affordable housing?” Marshall asked. Supervisors emphasized the need for near-term deliverables, measurable milestones and a regional approach with cities to meet RHNA and local needs.
Board action: The board received the housing report and directed staff to begin the strategic planning work, return with an outline by Oct. 31 and provide updates, including recommended updates to the county’s inclusionary administration and loan documents.
