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Planning commissioners hear housing-element progress: staff reports 27.5% of RHNA target met, recent production concentrated in lower‑income units
Summary
At its May 7 meeting, the Planning Commission received an annual housing element and ADU report: staff said the city has reached about 27.5% of its RHNA target so far in the cycle and that in the last two years roughly 1,027 housing units were produced, about 893 of which were affordable (about 86%). Commissioners discussed strategies to spur moderate‑income and for‑sale housing, including ADU outreach, fee deferral/loans, and SB9/SB10 implementation.
Clara Stanger, senior planner acting as principal planner for Advanced Planning, delivered the annual housing element and ADU/condominium progress report to the Planning Commission on May 7, reporting progress toward the city's Regional Housing Needs Allocation (RHNA) goals and highlighting recent production numbers.
"We are about a quarter of the way through our current housing cycle, and we have produced 27.5% of our assigned housing goal," Stanger told commissioners. She said that in the last two years the city recorded about 1,027 housing units and that 893 of those were affordable units (approximately 86% of recent production); staff contrasted that with 918 units produced in the entire prior eight‑year housing cycle.
Commissioners welcomed the progress on lower‑income housing but repeatedly flagged a shortfall in moderate‑ and above‑moderate‑income (market‑rate) units. They discussed several potential local strategies to address the "missing middle," including ministerial approvals for 100% affordable overlay districts, targeted outreach to encourage ADU construction, mapping of underutilized backyard lots for demonstration projects, and incentive or loan programs to defer impact and utility fees for small developers.
Several commissioners said permit and impact fees — and sometimes insurance and utility connections — make small ADU or backyard units uneconomic. One commissioner suggested the city study fee deferral or municipal loan programs to bridge upfront costs so projects can secure private financing. Staff noted that SB9 and SB10 measures are listed as objectives in the housing element work program and that staff expects to begin work on an SB10 ordinance later this year, with other items to follow.
The commission discussed using a subcommittee or staff study to examine whether fee levels and utility costs are deterring small‑scale, for‑sale housing and second‑unit construction. Commissioners also suggested demonstration or outreach projects to show homeowners how a second unit could be economically viable.
What happens next: staff will continue work on housing element objectives, including SB10, and consider commissioner suggestions for outreach, fee analysis, and possible subcommittee work. The commission was also informed about upcoming planning calendar items, including a June 4 hearing on a mixed‑use building at 201 Front Street and several items scheduled to go to City Council.
The discussion was informational; no formal action was taken on new housing regulations at the meeting.
