Lake Forest officials are moving forward with a new affordable housing project for low-income residents as cities across California begin to file their annual housing reports to the state.

City Council members unanimously approved a $4.35 million housing loan agreement with National Community Renaissance (National CORE) to create a four-story, 50-unit affordable housing project called Aspan Court.

The project will be funded using $3.7 million worth of in-lieu fees — money the city collected from developers who opted not to include affordable housing in other projects.

The city will also be funding another $650,000 toward the project.

“I have all the faith in the world in National CORE and the product they produce and the management there to provide a top-notch project for the community,” Councilmember Mark Tettemer said at the March 18 meeting.

The development comes as Orange County cities grapple with state housing mandates, which call for cities throughout the state to zone for a certain number of units to be developed with a heavy focus on affordable units for low-income residents.  

In Lake Forest, officials have permitted less than half of their state-mandated Regional Housing Needs Allocation for 2021-2029.

According to the city’s mandated numbers, Lake Forest officials must plan for 3,236 new units. 

As of Dec. 31, 2024, the city has permitted 894 new units, according to a staff presentation during the March 18 meeting. 

“For us to keep the state from telling us where to develop, we have done an incredible job with our housing and community development,” Councilmember Doug Cirbo said. “We are one of the few cities that gets this done very quickly.”

The Aspan Court development is also a “by-right” project — meaning the development doesn’t need city approval to move forward, as long as it meets all state and city requirements.

This is the first by-right project in Lake Forest, according to the staff’s presentation from the meeting.

However, this isn’t the city’s first affordable housing project with this developer. 

In 2020, the council approved a different project called Mountain View with National CORE, which created 71 affordable units.

Tettemer praised the Mountain View development. 

“There was certainly people that had a lot of concerns, and I think we have now seen, with the benefit of hindsight, what an amazing asset that project has been to the community and specifically that area,” he said.

The new development is slated to be constructed at 22471 Aspan St. — on the corner of Aspan St. and Muirlands Blvd. It’s expected to have on-site management.

The development will also include a dedicated room for Lake Forest Police Services with its own entrance and restroom.

“It’s going to cut response times in half for deputies that are here writing their reports and have to leave here to go to District 5 to answer calls,” Councilmember Robert Pequeño said.

During public comment at the March 18 city council meeting, residents were mostly supportive of the development, emphasizing the need for more affordable housing to help struggling families and to push the city closer to meeting its state-mandated housing goal.

Rona Henry, a volunteer with Welcoming Neighbors Home, applauded the city for moving forward with the project and urged council members to approve similar developments in the future.

“Kudos to the city, keep up the good work, please approve this loan agreement and please, don’t stop there,” Henry said during the meeting. “We need lots more affordable housing.”

One speaker voiced concerns that the units would go to out-of-towners instead of current Lake Forest residents.

Alexa Washburn, chief development officer with National CORE, told council members that preference will be given to people who already live or work in the city during the lottery system for unit selection.

Construction for the project is slated to begin in March 2026, with a grand opening for the development expected in March 2028.

“We want affordable housing in Lake Forest,” Mayor Scott Voigts said. “We’re going to continue to look for opportunities.”

“We’re excited — I know it’s going to be beautiful.”

Angelina Hicks is a Voice of OC Tracy Wood Reporting Fellow. Contact her at ahicks@voiceofoc.org or on Twitter @angelinahicks13.