El Segundo extends moratorium on large multifamily approvals, orders study of inclusionary housing rules

The El Segundo City Council voted unanimously on July 7 to extend an urgency moratorium on approvals for multifamily residential projects of more than 10 units while staff updates an earlier economic feasibility study and explores an inclusionary-housing ordinance.

Community Development Director Michael Allen told the council the two-part request before them was to (1) direct staff to further study possible inclusionary-housing requirements and (2) decide whether to extend the city’s interim moratorium so staff would have time to do that work. Allen said staff’s prior analysis from 2021–22 showed inclusionary requirements could make many projects financially infeasible and that any new study needed current market inputs. “In order to consider an inclusionary ordinance this information is vital,” Allen said.

During the public hearing several residents and committee members urged caution. John Piccaver, chair of the Arts and Culture Committee, said the proposal risked becoming a “poison pill” that would deter any new housing investment. “I think this moratorium is going to have the opposite intention of inclusionary housing,” he said. Anya Goldstein warned of legal exposure if the city adopted requirements that could be read as pretextual: “Having a pretextual … inclusionary/exclusionary housing ordinance is a recipe for massive litigation risk for the city,” she said, urging a shorter pause instead.

Council members debated the appropriate length of a moratorium. Some members argued the city should update the 2020–22 numbers and have staff return quickly with alternatives; others feared that a long pause would chill projects that might otherwise proceed. The council settled on a compromise extension through Sept. 15, 2026 and asked staff to return with updated analyses and a public timetable for planning‑commission and council review. Mayor Pimentel called for a follow-up report at the Sept. 15 meeting and noted staff estimated the updated work could take only a few weeks to produce a status update.

The urgency ordinance to extend the moratorium passed on the council floor by a 4–0 vote. The moratorium, as previously written, exempts projects with fewer than 10 units, accessory dwelling units, minor repairs or projects already vested (deemed complete prior to the June 16 action), and allows alternatives such as payment of in‑lieu fees or developer requests for waivers under state law.

What happens next: Staff will update the earlier financial prototypes to reflect current financing and construction costs, present the results to council at a public meeting in September, and, if directed, proceed to a planning‑commission study session and then back to council for ordinance drafting. The extension is an interim step; council members emphasized that any formal inclusionary ordinance would require additional public hearings and legal review before adoption.