Salinas council adopts 2024 housing-element progress report as public debate over rent-stabilization continues

The Salinas City Council on March 25 unanimously adopted a resolution approving the city—s 2024 housing element annual progress report and authorized its submittal to the California Department of Housing and Community Development and the Governor—s Office of Planning and Research before the April 1 deadline.

The report summarizes the city—s housing production, funding and pipeline as the region implements the sixth-cycle Regional Housing Needs Allocation. "The city of Salinas goal is a total of 6,674 units," Community Development Analyst Monica Flores told the council during the presentation, noting that the city authorized 221 units in calendar year 2024, most of them accessory dwelling units.

Why it matters: The annual progress report documents whether Salinas is planning and permitting enough housing to meet state targets and helps unlock certain funding. The new RHNA target is a marked increase from the prior cycle, and council members and members of the public used the hearing to press city staff on production timelines, funding use and local ordinances affecting rentals.

City staff said 221 building permits for housing were issued in 2024, including 216 ADU permits, and 115 certificates of occupancy were finalized. The report lists recent and pending projects the city is supporting, including funding awards from HUD programs and local allocations: the city reported $2.1 million in Community Development Block Grant funds and $700,000 in HOME funds for 2024, and staff highlighted planned support using Permanent Local Housing Allocation dollars for multiple projects including a 36-unit senior development at 98 Kip Drive and a 45-unit permanent supportive housing conversion of a former motel at 1030 Fairview Avenue.

"We expanded on that by approving the rental stabilization, tenant anti-harassment protections ordinance, and just-cause eviction and tenant protection back in September of 2024. All of this combined went live earlier this year," Community Development Analyst Luis Rodriguez told the council, summarizing recent local policy changes that are already in effect and that staff will track alongside production metrics.

Public reaction at the hearing was divided. Several tenants and tenant-advocacy organizations urged the council to preserve the rent-registration and rent-stabilization package and to invest more in tenant services. An organizer with Building Healthy Communities, Nydia Soto, told the council the measures give renters "peace" and help families remain stable.

By contrast, property owners, landlords and developers warned the ordinance reduces investment incentives. Broker Mike Hanley urged repeal, saying the rules "create barriers" that could push owners to sell or withdraw units. Local investor Tony Flores said he planned to sell holdings rather than continue investing under the new rules. Other speakers described personal cases where they said rent and maintenance rules complicated property management and project financing.

Council members pressed staff on details. Staff said roughly 30 percent of expected rental units were registered so far and that the rental-registration program has fielded thousands of inquiries and several after-hours help sessions. City staff said the program started with general-fund support of about $205,000 during a start-up phase and that ongoing program funding is expected from fees tied to the program but could be adjusted in the upcoming budget process.

Staff also described the housing pipeline: 11 planning applications were received in 2024, with eight in pre-application or review stages and several projects that may deliver hundreds of units over time. Staff said three projects in the pipeline are being processed under streamlined state laws (SB 330/SB 35-type processes), which may shorten approvals. The report lists active development projects across income categories and funding sources and notes that the city is pursuing additional state and federal grants.

Council action and follow-up: The council voted unanimously to adopt the resolution authorizing submittal of the 2024 housing element annual progress report. Several council members asked staff to return quickly with more data and options related to the rental-registration and rent-stabilization ordinance, noting strong public interest and concerns on both sides. Staff said they will report back as part of the budget and work-plan process.

What the report does not resolve: The hearing did not change the ordinance passed last year; it documents production and programs and triggers follow-up work. Staff repeatedly emphasized that program implementation, registration compliance and funding numbers are a moving target and that more precise budget adjustments will come with the budget cycle.

Ending: City staff said they will submit the report to state agencies by the April 1 deadline and continue outreach and enforcement on rental registration and other housing programs while pursuing grant and development opportunities that the report catalogs.