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City reports RHNA progress in 2024 General Plan annual report; ADUs cited as significant contributor

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Summary

City staff presented the 2024 General Plan annual report, showing 1,328 permits issued to date in the current RHNA cycle and highlighting accessory dwelling units (ADUs) as a major source of units; staff said permits and certificates of occupancy numbers differ because of pipeline timing.

Shannon Dow, director of Community Development, presented the 2024 General Plan annual report required by the state and reviewed the city's progress on Regional Housing Needs Allocation (RHNA) targets.

Dow told the council the RHNA cycle began in 2022 and continues through the cycle end date stated in the presentation. Staff reported that, to date in the RHNA cycle, the city has issued permits for 1,328 units and that additional units remain in the pipeline. Dow highlighted that accessory dwelling units (ADUs) were a major contributor to the city's housing production in 2024; staff reported 435 ADUs issued in 2024 and 1,044 ADUs to date in the RHNA cycle.

Dow explained the difference between permits issued and certificates of occupancy: permits indicate progress earlier in the construction pipeline, while certificates of occupancy indicate units ready for occupancy. Staff noted building and safety handled a high volume of permit applications and listed permit-processing throughput metrics during 2024.

Councilmembers asked clarifying questions about deed-restricted versus non-deed-restricted units counted toward RHNA. Staff said deed-restricted units have recorded covenants, conditions and restrictions limiting rents or prices to the targeted income group; units that meet income thresholds but lack recorded deed restrictions are counted differently in the city's accounting.

The council received the report; staff said the report will be filed as required by state law.