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City receives housing progress report; staff flag built-out constraints and $6 million housing asset fund
Summary
Staff presented the annual General Plan and housing progress report required by state law; the city reported progress on zoning and modest unit production (19 low-income, 35 above-moderate since 2022) but has produced zero extremely low- and very-low-income units this cycle and is now considering projects to spend a roughly $6 million housing asset fund balance.
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City staff presented the annual General Plan and Housing Progress Report on March 16, the document the city must submit to the California Department of Housing and Community Development.
Staff said the city's regional housing need allocation (RHNA) for the current cycle is 125 units, including specified fractions for extremely low, very low, low, moderate and above-moderate categories. Since certification of the housing element in October 2022, the city reported 19 low-income units and 35 above-moderate units; accessory dwelling units (ADUs) have accounted for much of the above-moderate-unit progress. Staff acknowledged the city has not yet produced any extremely low- or very-low-income units during this cycle and noted that being largely built out limits opportunities for new developments that yield those categories.
The presentation noted the Housing Asset Fund balance for the successor agency has grown to about $6 million; staff said those funds must be used for housing purposes and that the city will explore projects, potential property acquisitions or other uses to avoid an excessive surplus. Council members asked whether projects such as the proposed Willowbrook expansion or Surfside Hotel redevelopment could contribute qualifying units; staff said both could be avenues but cautioned details and timing are uncertain.
Council voted to authorize staff to submit the required report to the state.

