No progress toward affordable housing made in Laguna Beach, report shows

Laguna Beach remains challenged in adding to its affordable housing stock, according to an annual progress report presented to the City Council this month.

The Regional Housing Needs Assessment, a figure established by the Southern California Assn. of Governments, calls on the city to plan for an additional 394 housing units for the current cycle, which started in 2021 and ends in 2029.

Of those 394 units, the RHNA allocation tasks Laguna Beach with providing 277 new affordable units. The city has yet to put a dent in that number, as no permits have been issued toward housing that would fall under the very low, low or moderate income levels.

Instead, so far this cycle, permits were given to 127 housing units that fall in the above-moderate household income category and 221 went to homes for those that fall in the above-moderate category, well surpassing the target of 117.

“The NIMBY [not in my backyard] spirit is alive and well in this town,� resident Chris Quilter said at the City Council meeting on March 12. “It will continue to oppose any kind of intensification in any area of our city. I don’t know what to do about that, except it’s up to the council to really disappoint some of our residents and move forward on something that’s affordable somewhere in town.

“We have philanthropists who are willing to help, but they want to get things done in their lifetime, and that doesn’t look too likely right now,� Quilter said.

Senior affordable housing and artist live-work space have been hot topics in town. Action pertaining to the latter will be up for consideration at the City Council meeting on Tuesday, when the panel will look at establishing a tenant preference policy that would require housing development projects to set aside a portion of units for artists.

“We are attracted to Laguna because of the type of community that it is, our artists, our hotels, restaurants, all the amenities that we enjoy,� said Jacquie Schaefgen, a member of the city’s housing and human services committee. “Yet many of those who make this community what it is, they can’t live here. We can’t house everybody, but we should do something.�

Mayor Pro Tem Bob Whalen asked for an update on the city’s plans to address the housing issue with five years remaining in the housing cycle.

“It does appear that we are tracking,� said Jennifer Savage, the city’s housing program manager. “The implementation programs are largely focused on removing barriers to housing construction, and we are making significant progress towards that end.�

Savage added the community development department had previously taken measures to support the facilitation of accessory dwelling unit construction.

Councilman Alex Rounaghi expressed cautious optimism that the city would be able to comply with the mandate to allow for affordable housing.

“As it relates to … deed-restricted affordable [housing], there’s only two ways to make that happen,� Rounaghi said. “Land and money, and if we have both of those things, we can leverage tax credits, and we can make affordable housing happen.�

Tenant protections strengthened

In advance of the housing element discussion, the City Council passed an ordinance strengthening protections for renters.

Residential property owners will be required to provide notice to the city to terminate tenancy in no-fault evictions. Landlords will also have to notify the evicted party that a copy of the tenancy termination notice will be provided to the city.

The ordinance came in response to complaints received by the housing and human services committee that landlords were endeavoring to raise rent rates by evicting tenants for substantial remodels that were not completed.

City officials noted in the ordinance that regulating the dealings of residential property owners and tenants would enhance fairness for renters.

“The tenant protection ordinance … will help protect and preserve what was really our only affordable rental housing, the existing rental stock that’s controlled by state increase,� said Cody Engle, vice chair of the housing and human services committee.