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Escondido council authorizes SANDAG grant application to create East Valley housing trust fund

3787282 · June 12, 2025
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Summary

Council voted 5-0 to authorize staff to apply for SANDAG’s Smart Growth Incentive Program to develop an East Valley-specific housing trust fund and program design, including an in-lieu fee study and community outreach; final program would return to council for approval if awarded.

The Escondido City Council on June 11 voted 5-0 to authorize staff to submit an application to SANDAG’s Smart Growth Incentive Program seeking planning funds to develop an East Valley–specific housing trust fund.

Why it matters: staff said the housing trust fund—identified in the East Valley Specific Plan and the city’s housing element policy documents—would create a locally controlled funding mechanism to support housing development for low- and moderate-income households in the East Valley planning area and would include an empirical in-lieu fee study to derive a reasonable fee structure.

City planner Veronica Moronis told the council the request is for a planning grant (TransNet-funded through SANDAG’s program) to flesh out the trust-fund mechanics, outreach and decision rules. She said the East Valley Specific Plan already includes a program directing establishment of the fund; the planning work would define eligibility, fees and how awards are made. If awarded, staff estimated about 12 months to develop the program, with multiple return visits to council and robust outreach to East Valley stakeholders.

Council action: Deputy Mayor Martinez moved the staff recommendation to submit the grant application and accept the grant terms; the motion passed on a 5-0 voice vote.

What the fund would do: staff said the trust fund would be tied to a dedicated local funding source, administered locally, and used to support projects that meet program requirements. The specific plan includes a mechanism allowing developers to "opt out" of paying into the fund by building at the plan’s specified density. Moronis said that if the city is awarded the planning grant, the resulting program and any fee structure would return to the council for ultimate approval.

Next steps: staff will submit the SANDAG application; SANDAG award decisions are anticipated in late 2025, and, if the city secures funding, staff expects about 12 months to develop the housing trust fund program and return to council for adoption.

Ending: the council authorized submittal of the grant application and accepted the grant terms with a unanimous vote.