Escondido council approves 74-unit Touchstone townhome project; HOME allocation process set for FY 26-27
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Summary
The council approved a 74-unit for-sale townhome project and adopted an allocation process for the HOME federal program (10% admin, 15% CHDO set-aside, remainder to housing activities). Both actions passed unanimously (5-0).
The Escondido City Council unanimously approved a 74-unit for-sale townhome project and advanced the cityHOME program allocation process for fiscal year 2026-27 during the same meeting that featured extended public comment about the police firing-range agreement.
Planner Ivan Flores presented the Touchstone Communities proposal, which would remove a parcel from a specific-plan business designation and rezone it to allow urban-4 (24 dwelling units per acre) townhomes near West El Norte Parkway. Staff described building elevations (three stories, about 36 feet high), an internal driveway and 165 off-street parking spaces. The project seeks an administrative adjustment to reduce the required rear-yard setback for third-story elements and requests flexibility on an optional pool amenity; staff said the developer may substitute an equal or better active-recreation amenity, subject to director approval.
Touchstone's representative, Carrie Garza, told the council the product is targeted to the missing-middle market and is intended to be for sale (not rental). Councilmember Fitzgerald moved to approve the project; the motion carried 5-0.
On a related housing item, staff presented the HOME investment partnership program allocation plan. Housing and Neighborhood Services Manager Danielle Lopez told the council the city's expected allocation will be confirmed in May or June but proposed a standard split for purposes of planning: up to 10% of HOME funds for administration, a HUD-mandated minimum 15% set-aside for Community Housing Development Organizations (CHDOs), and the remaining 75% allocated to eligible housing activities such as rental construction, homeowner rehabilitation or home-buyer assistance. The council voted 5-0 to approve the allocation process and directed staff to return with final funding recommendations and program details.
What's next: Staff will return with final HOME funding numbers once HUD announces the allocation, and the Touchstone project will move to post-entitlement review with conditions and required mitigation measures per the approved CEQA mitigated negative declaration.
Sources: Planning staff presentation (Ivan Flores); developer representative Carrie Garza; Housing staff presentation (Danielle Lopez).
