Two affordable housing projects could be coming to Laguna Beach – home to one of the most expensive zip codes in the U.S. – that could create close to 100 new homes for low-income residents in the next couple of years.
But both proposals are in the very early stages of the process and there is a chance that none of them get built.
The coastal city has long struggled to build low-income housing even though it is one of a handful of cities in OC that mandate developers to build affordable housing in their projects.
Several cities across the county are also struggling with low income housing.
[Read: Are Affordable Housing Mandates Working in Orange County?]
Laguna Beach officials are now changing their approach while facing increased pressure from state officials to address California’s housing shortage and as county leaders point to a lack of affordable homes as part of the reason for an increase homelessness.
On Tuesday, city council members voted 4-0 to pre-commit to the two projects in an effort to increase their chances to get $2.5 million in state grant money for affordable housing.
Councilman Alex Rounaghi recused himself from the dais before the vote due to his prior employment with one of the developers.
Councilman Bob Whalen said this is the first time the proposals have surfaced, but the city has been trying to increase opportunities for affordable housing for a long time.
“As a community, I think we share the recognition that we need to do more than we currently have done,” he said.
At the meeting, a couple parents from the Montessori Preschool located at church where one of the proposed housing projects would take place also raised concerns their school would be displaced and said it was one of the few options for preschool in the city.
Deepa Somasundaram, director of the preschool, said at Tuesday’s meeting that the council should keep them in the conversation
“I understand it’s really important to have affordable housing in Laguna,” she said. “I also urge you to know that 50 years of school – an institution that has been a monument in Laguna Beach – is in danger of being relocated.”
Several residents also raised concerns about affordable housing coming to their neighborhoods, arguing they haven’t been kept in the loop on the project and the impacts it could have on them like parking, safety or a decrease in property value.
Stu Sedgman, a resident living near one of the proposals, said nearby residents should have been informed.
“That’s your responsibility. We voted you in. We expect you at least to keep us advised and we’re not being advised. We’d like transparency,” he said.
At the same time, many of them recognized a need for housing in the city.
Mayor Sue Kempf said everything about the proposals right now are fluid and the city will do its due diligence on the projects
“You know, how we are in Laguna, we talk about things for a long time. We’ll have a lot of discussions on this going forward,” she said.
What Does It Take to Build Affordable Homes in Laguna Beach?
The decision comes about a month after officials voted to create their own housing trust to support more low-income housing by bringing state grant funds.
[Read: Two More OC Cities Create Housing Trusts; Are They Effective?]
Following the vote, city staff sent out a notice to developers letting them know the city could make $5 million available for affordable projects.
Half of it would come from in-lieu housing fees paid by developers who opted not to include affordable housing in their projects, the city’s parking fund and the housing fund, according to a staff report.
Officials are eyeing a state housing trust matching funds grant for the rest of the $5 million and the amount of funding availability for the projects is contingent on them receiving it.
The pre-commitment to the projects is an effort to give the city a leg up on the state grant.
As part of the grant, 30% of the projects the money is to fund have to be for extremely low income housing.
The first proposal comes from West Development Ventures/ Fullerton Development Partners who are asking for $3 million to build 24 affordable homes for seniors at the former Ti Amo Restaurant, now owned by the city.
The second proposal comes from Related California who are asking for $5 million to build 72 affordable homes for large families, people with disabilities and homeless people on land where the Neighborhood Congressional Church and the preschool is located.
Jennifer Savage, the city housing program coordinator, said at Tuesday’s meeting that even with the proposals, no application has been submitted and they would still have to go through the building approval process.
She also said the pre-committing to the projects does not mean the city guarantees the proposals will move forward.
“We would come back to the city council for further commitments and formal agreements at a later stage,” Savage said.
Laguna Beach’s Need For Housing
Tuesday’s vote comes after city officials were tasked with zoning for 118 new homes for very-low income residents and 80 new homes for low-income residents by 2029 as part of their state mandated housing goals.
Orange County’s median income is close to $128,000, according to the state’s Department of Housing and Community Development. A four-person household making less than roughly $115,000 a year is considered low income and less than nearly $72,000 is considered very low income.
But the South Orange County city has long struggled to build affordable homes.
[Read: Laguna Beach Struggles to Build Low-Income Housing]
Nine of the 181 homes built in Laguna Beach between 2018 to 2023 were for low income families, according to a state database.
Eight of those homes were part of an artist work and living space development on Laguna Canyon Road.
George Heed, a resident, said affordable housing is a necessity and voiced support for the proposals
“We have a lot of seniors that are living here in town who are losing their homes to change of ownership, and can no longer afford to stay where they are. We have young people growing up in Laguna, who cannot afford to live here,” he said.
“There’s nothing else to it.”
Hosam Elattar is a Voice of OC reporter and corps member with Report for America, a GroundTruth initiative. Contact him at helattar@voiceofoc.org or on Twitter @ElattarHosam.