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Council accepts housing element progress report, adjusts affordable-fee threshold and forms trust-fund subcommittee
Summary
The council accepted the annual general plan and housing element progress report for 2025, noted that most recent unit production has been ADUs, discussed Bayfront Terrace and updated the affordable housing impact-fee threshold to $151,000. A two-member council subcommittee was named to advise on trust-fund allocations.
Planning staff presented the City’s annual general plan and housing element progress report for calendar year 2025 and a proposed work plan for 2026. The report reminded council that Mill Valley’s RHNA obligation for the 2023–2031 cycle is 865 units and that recent production has trended toward accessory dwelling units (ADUs).
“On an annual basis I report on the general plan. The housing element is key,” planning staff (speaker 2) said, noting the legal reporting requirements and the city’s RHNA obligations. Staff observed that 2025 saw a downturn in permit activity tied to regional construction costs and other market factors, and emphasized that larger projects will be needed to meet RHNA targets. Bayfront Terrace — an entitled permanent-affordable project — remains a top candidate for trust-fund allocations to facilitate construction.
Council accepted staff recommendations, approved an annual adjustment to the construction valuation used for the affordable-housing impact fee (a new threshold of $151,000), and established a two-member subcommittee to provide guidance on trust-fund allocation for FYs 2026–27 and 2027–28. Staff and council discussed ADU outreach, multifamily-owner engagement, and the countywide context for streamlining and inclusionary policy changes. Staff will return with implementation steps and further detail on incentives for multifamily property owners and potential program outreach.
