Pacific Grove reviews new AFFH measures in housing element revision; staff to return with refinements

Pacific Grove staff on Wednesday presented a revised draft of the city's housing element that adds five proposed programs intended to satisfy the California Department of Housing and Community Development (HCD) request that the element include stronger, programmatic steps to affirmatively further fair housing (AFFH).

Acting Principal Planner Aaron Campbell told the City Council the draft AFFH measures include maintaining a list of sites prioritized for 100% affordable housing, a home-sharing program, residential standards for religious facilities under SB 4 and AB 1851, expanded residential uses behind downtown storefronts and a housing trust fund. "This program will preserve and protect our commercial corridors like Lighthouse, Forest, and Grand," Campbell said.

The nut of the discussion was whether the proposed measures would be meaningful and feasible in Pacific Grove's built environment. Campbell said two of the five programs would be implemented by the end of 2027 and that the city's objective for the home-sharing effort is to facilitate at least 50 additional housing units, with a goal of assisting at least five property owners per year through technical assistance. He said HCD raised the AFFH requirement late in the review process and asked for more than outreach: it wants active programs that can increase housing choices across the city.

Public comment included a resident who questioned consultant costs and the pace of revisions, saying the city had spent substantial consultant money over two years and still lacked a certified element. Council members raised questions about lot splits and state laws such as SB 9 and SB 684 that allow ministerial development under certain circumstances. Planner Mary Wagner confirmed state laws like SB 9 can enable up to four units on a parcel through ministerial processes and could count toward housing element goals if units are produced that way.

Council discussion focused on program feasibility and next steps. Several members expressed support for the proposed approaches, with suggestions to prioritize mixed-use opportunities downtown and to refine the tone of program descriptions (one council member referenced Carmel-by-the-Sea's language as an example). Staff said the changes will be posted for another seven-day public comment period, then formally submitted to HCD for a 60-day review. The planning commission has already recommended support with suggested refinements.

No adoption vote was taken Wednesday; staff will finalize the program language, continue the EIR and return to the planning commission and council for public hearings and possible adoption. Campbell and Mary Wagner said the goal is conditional certification from HCD, with the condition being formal adoption of the housing element and completion of related environmental review.

Ending: The council received the report for review and asked staff to proceed with program refinements, additional public outreach and subsequent hearings. The item will return to the planning commission and the council with a final draft and the EIR, and then be resubmitted to HCD for final review.