Walnut Creek accepts 2024 housing-element annual progress report; staff directed to submit to state

The Walnut Creek City Council voted unanimously March 4 to accept the city's 2024 housing element Annual Progress Report (APR) and directed staff to file it with the California Department of Housing and Community Development (HCD) and the Governor's Office of Planning and Research (Land Use and Climate Innovation Agency).

The report, presented by Crystal DeCastro, acting principal planner in the community development department, reiterated that Walnut Creek's Regional Housing Needs Allocation (RHNA) for the current planning cycle is 5,805 units and that, since certification of the housing element in 2023, the city has recorded roughly 1.6% of that goal in building permits issued.

DeCastro told the council that the city currently has approximately 1,400 housing units in the development pipeline, representing about 24% of the RHNA total. She described the pipeline as a mix of market-rate and affordable units, with nearly one-quarter of pipeline units designated as affordable. The APR, prepared under state law and submitted annually by April 1, reports housing development activity across stages: application submittal, entitlements, building permits and certificate of occupancy.

Council members used the staff presentation to clarify how pipeline projects and special approvals are counted toward RHNA. Staff explained that the city's existing zoning and specific plans were used to demonstrate adequate sites when the housing element was adopted; projects that come forward through density bonuses or other mechanisms (including potential builder's-remedy projects) would add to production totals as they are approved and constructed, but they were not counted as base inventory when the element was certified.

During the question-and-answer period staff and developers' forum feedback identified two principal barriers to housing production: land cost and interest rates. Housing manager Stephanie Bridal said the city is developing a survey of accessory dwelling unit (ADU) applicants in collaboration with ABAG to collect data on customer experience and streamline the ADU process. "We are in the process of developing a survey, for ADUs and people who are building ADUs," Bridal said.

Council discussion also focused on affordable housing funding. Staff noted that meeting the RHNA share for lower-income categories will require substantial subsidies from federal and state sources; the city's entitlement-level Community Development Block Grant funding has historically been too small to deliver large-scale affordable construction alone.

After public comment, which included residents urging policymakers to consider insurance and other barriers to housing occupancy, a council member moved to accept the APR and forward the report to HCD and the governor's office. The motion passed 5'0to'0, with all council members recorded as voting aye.

Why it matters: RHNA sets the number of housing units that each Bay Area jurisdiction must plan for over an eight-year cycle; meeting those targets involves zoning, permits and incentivizing or subsidizing lower-cost housing types. The APR documents progress and helps the city remain eligible for some state programs, including pro-housing designations and competitive grant funding.

Next steps: Staff will submit the APR to HCD and continue implementing actions identified in the housing element, including continued streamlining of development processes, ADU outreach and tracking of pipeline projects.