Council receives housing-element progress report; staff outlines ADU tools, preservation and missing-middle gaps

Housing Manager Jessica Wackenhut Lomeli presented the 2025 Housing Element annual progress report and an update on the draft 2027–2035 housing element. Highlights included 63 multifamily units completed in 2025 (60 of them deed-restricted low-income units at Sugar Pine Village Phase 2), student housing (100 beds) at LTCC, 39 households assisted by the rental-assistance program (87 people), and 22 households placed through a long-term rental incentive program during 2025.

Staff explained housing-spectrum terminology (workforce, affordable/deed-restricted, permanent supportive housing, middle/moderate-income, 'affordable-by-design,' TRPA "achievable" housing and state employee-housing permit rules) and said area median income definitions guide eligibility. ADU pre-approved plans (four designs) are expected to be available at no cost to property owners in June to accelerate small-scale, locally affordable units. Staff said preserving existing housing stock through inspections, the multifamily-dwelling inspection program and potential grant-funded rehabilitation remains a priority but is limited by funding and developer capacity.

Councilmembers noted the persistent missing-middle gap for moderate-income households and discussed tools including increased allowable densities in Midtown area plans, partnerships with land trusts, and targeted preservation programs. Staff outlined an aggressive timeline for the next housing-element update tied to TRPA and state certifications.