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Los Banos adopts 2025 housing‑element progress report; city reports 2,554‑unit RHNA shortfall
Summary
The council adopted the 2025 annual housing‑element progress report. Director Stacy Elms said the city remains certified but still faces a shortfall of 2,554 units against a 3,132 RHNA allocation; the 1 Tree permanent supportive housing project (58 units) will help the extremely‑low category.
The Los Banos City Council adopted its 2025 annual report on the housing element and progress toward the Regional Housing Needs Allocation (RHNA) on March 18.
Community and Economic Development Director Stacy Elms said the city began the sixth planning cycle with a RHNA allocation of 3,132 units. Through 2025 the city reported additions (including 143 units reported in 2024 and 263 units in 2025) but still shows a shortfall of 2,554 units across income categories. Elms said 12 of the units credited in 2025 were built by the Merced County Housing Authority and that 28 accessory dwelling units contributed to the moderate‑income total.
Elms highlighted the 1 Tree project, a planned 58‑unit permanent supportive housing development that will be counted toward extremely‑low income needs; she said grading has begun on that site.
Council members and staff discussed the difficulty of producing extremely‑low and very‑low income housing without subsidies and the city’s role in facilitating, but not directly producing, such projects. Councilmember comments emphasized the need to pursue grants and partnerships to finance low‑income production and to avoid bottlenecks that could limit transitions out of supportive housing.
The council adopted Resolution 7068 to approve the annual progress report and directed staff to continue pursuing funding and reporting to HCD as projects come online.
