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City updates Planning Commission on inclusionary housing study and in‑lieu fee work
Summary
Staff told the Planning Commission that an OCOG consultant will update San Clemente's inclusionary housing implementation plan and in‑lieu fee methodology; staff noted discrepancies between the zoning code (15%) and the housing element (4%) and expects a deliverable by June 30, 2026.
City planning staff updated the commission Dec. 3 on work to refresh San Clemente's inclusionary housing program and to establish an in‑lieu fee methodology.
Staff said the Orange County Council of Governments (OCOG) is providing a consultant to prepare deliverables for the housing implementation plan. The consultant will review prior studies and recommend whether the inclusionary percentage or the in‑lieu fee should change. Staff described a long‑running discrepancy: the municipal code includes a 15% inclusionary requirement, while the most recent adopted housing element references a 4% requirement for developers of six or more units.
"Part of that program of the objective by 2025 was to update the in lieu fee requirement," staff said; the consultant's work is expected to be completed on a tentative timeline with a deliverable by June 30, 2026. Staff said the city will continue public outreach and noted the consultant will prepare a screening draft, an administrative draft and a final draft for review.
Mark Maguire, speaking from the public, said he was encouraged by the update but cautioned that a move from 4% to 15% is a major policy decision that should be directed by City Council. Staff said the existing code language referencing 15% has been on the books and that the planning process will clarify alignment between the housing element and code; any ordinance or fee change would return to the commission and Council for action.
Next steps: consultant work and public outreach continue, staff will provide periodic updates to the Planning Commission, and any recommended code or fee changes will be processed through normal public hearing and Council review.
