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Eureka staff warn of sharply higher RHNA allocation; council discusses feasibility and next steps

Eureka City Council · September 3, 2025
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Summary

City planning staff told the Eureka City Council that the Humboldt region27s seventh-cycle RHNA rose to 5,962 units and that a 50/50 allocation method could assign Eureka about 1,740 units, prompting council questions about feasibility, funding and site capacity.

Director Kenyon told the Eureka City Council on Sept. 2 that the California Department of Housing and Community Development (HCD) set the Humboldt region27s seventh-cycle regional housing needs determination at 5,962 net new units and that adjustments for demolition, homelessness, low vacancy rates and cost burden produced the large increase.

"For the seventh cycle, the state has given us as a region, an arena of 5,962 net new housing units," Kenyon said, summarizing the department27s new allocation methodology and the adjustments that drove up the figure. He explained HCD added units for replacement housing, individuals and families experiencing homelessness, low vacancy rate adjustments, and a large adjustment tied to the region27s higher-than-average housing cost burden.

Kenyon said HCOG (the Humboldt County Association of Governments) will choose an allocation method for distributing the regional number to cities and the county. Staff and regional planners recommended a 50/50 weighting of jobs and population; under that scenario Kenyon said Eureka27s share would be 1,740 units (about 218 units per year), roughly double the city27s recent annual production.

Council members asked how the city would meet that assignment. Kenyon said RHNA is a planning requirement: the state expects zoning and programs that demonstrate capacity, not that the city itself build units. He outlined compliance tools the city can pursue, including expanding by-right approvals, increasing allowable densities, reducing discretionary review, leveraging city-owned parcels, and using the housing trust fund or other subsidies to make development financially viable.

Council members pressed practical concerns: whether Eureka physically has sites to accommodate 1,740 units, financing constraints for developers, seismic and market limits on very large projects, and whether transitional or shelter programs count toward RHNA (Kenyon said shelter and temporary transitional housing do not count as permanent RHNA units). Kenyon warned that losing housing-element certification could reduce grant competitiveness and risk state enforcement.

Kenyon said HCOG planned to select a tentative distribution method on Sept. 18, followed by a public hearing and a 60-day comment period, with allocations expected in December and final HCD action by Feb. 2026. He urged council and the community to develop implementation measures and identify potential city-owned or state-owned parcels that could be used or advocated for as housing sites.

The council did not take action but requested further analysis and signaled interest in exploring implementation measures and community engagement to identify feasible sites and funding paths.

The next procedural step is HCOG27s tentative methodology selection and the ensuing countywide public comment window; Eureka staff said they will return with analysis and policy options.