Committee approves 2024 housing element annual progress report; staff outlines RHNA gap and housing pipeline

The Salinas Housing and Land Use Committee voted to recommend City Council approval of the 2024 housing element annual progress report and to submit the report to the California Department of Housing and Community Development (HCD) and the Governor's Office of Land Use and Climate Innovation (LCI).

Planning manager Vincent Montgomery told the committee this reporting cycle covers the sixth-cycle regional housing needs allocation (RHNA) for 20232031. He said the city's total RHNA for the sixth cycle is 6,674 units and that the income-band breakdown is 920 very low, 600 low, 1,692 moderate and 3,462 above-moderate units.

Staff provided a snapshot of 2024 housing activity: the city recorded 221 building permits issued and 15 certificates of occupancy during the calendar year; some ADU (accessory dwelling unit) activity contributed to those totals. The presenters emphasized that permits can reflect multiyear projects and that the pipeline also includes pre-applications and tentative maps for the city's future growth areas.

The housing division described funding available for future projects: approximately $2.1 million in Community Development Block Grant (CDBG) funds and just over $700,000 in HOME funds from the city's annual HUD allocation; roughly $1.6 million in local housing trust fund funds (the city has appealed a state determination about accessing those funds and is awaiting a result); and Prohousing Incentive Program (PIP) awards. Staff said the city received a PIP award of $1,650,000 in round one, did not receive round two, and applied for a subsequent round and was awaiting results.

Monica Flores, a community development analyst in the housing division, outlined affordable-housing projects in development or close to moving forward, including: - 98 Kip Drive: funds proposed for land acquisition of a lot owned by a church to support a 100% affordable senior housing development; the allocation cited was $645,000 from an earlier award. - Wesley Oaks and garage conversion projects: pipeline projects intended to add attached and detached units through conversions and new construction. - Fairview Avenue (a former motel): proposed conversion to permanent supportive housing in collaboration with Monterey County and the county housing authority; staff said details and operations remain under discussion.

Keisha Lopez, homeless services manager, reported outreach and rapid-response outcomes for the Salinas Outreach and Response Team (SORT): in 2024 the SORT team served 291 unique individuals, referred 36 individuals from encampments to emergency shelters, housed 45 people and delivered 2,321 case-management contacts and services. Staff provided an annual cost estimate for SORT: salaries and benefits near $800,000 and total program costs, including rapid rehousing and deposit assistance, near $1.2 million. Lopez said the SORT program is funded from multiple sources including CDBG and HUD ESG.

Committee members asked procedural and substantive questions about the El Rey (El Rey/El Rey Motel) property the city acquired at 443 West Market Street (also referenced as El Rey). Staff said the council had discussed the property as a candidate for permanent supportive housing but indicated the final use may depend on operational and funding constraints and could become transitional housing; discussions with county and service providers were ongoing.

Council member Sandoval made the motion to approve the 2024 housing element annual progress report; Council member Barajas voted aye. The motion carried.

Votes at a glance: - Motion to approve and submit the 2024 housing element annual progress report to HCD and LCI: Passed (Sandoval: Aye; Barajas: Aye). No mover/second recorded in the transcript.

The committee directed staff to submit the report on or before the April 1 deadline and to continue coordinating with county partners and stakeholders on pipeline projects and shelter-to-housing conversions.