About the Proposed Affordable Housing Projects at the Neighborhood Congregational Church Site 

Dear Laguna Neighbor,

I want to sincerely thank you for contacting the City of Laguna Beach regarding a possible 72-unit affordable housing project at the Neighborhood Congregational Church (“Church”) site off St Ann’s between Glenneyre and Catalina. I appreciate the time that you took to share your views with the City and the City Council. I also heard from a number of folks at a Housing & Human Services Committee meeting on May 22. At the meeting, we heard concerns over building massing, impacts to views, existing and future parking, and whether the public would have an opportunity to weigh in within the Senate Bill 4 parameters that are new to us and to California.

I wanted to relay some information back to you about the possible project:

· First, the City has not yet received a formal project application. Our Community Development Department staff has had a pre-application meeting with the Church and Related California, which is a courtesy meeting we offer. We also have received a design that was included in the NCC/Related application for a recent funding opportunity. That design concept is on page 36 of this document. Once we receive a more formal project application, it becomes a public document that we can start to analyze (and summarize). Given the interest, we will work to summarize it quickly to increase transparency and public awareness of the potential project.

· Second, please know that the Church site (APN 644-034-05) is identified in Laguna Beach’s 2021-2029 Housing Element (the January 2023 update) as a site for affordable housing (see discussion starting on Page 76 of this document). Like every city in California, we also have an obligation and requirement under State law to identify sites for affordable housing – this was done through an open and public process. As you know, our community has a significant need for more affordable housing – to ensure that local workers, families, and even long-time Lagunans still have a place in Laguna Beach.

· Third, Senate Bill 4 (aka SB 4) passed in 2023 and effective as of January 1, 2024, allows for “by right” approval and a streamlined permitting process for certain affordable housing development that occurs on land owned by a religious institution. This is a new State law. While we can conduct a design review process under SB 4, the “design review must focus on compliance with the requisite criteria of a streamlined, ministerial review process.”

· Fourth, we have been told recently by Related and the Church that the housing’s funding will not include State funding sources designated for persons coming out of homelessness. As such, the project is not envisioned to include permanent supportive housing units for homeless individuals and families.

· Finally, it is my understanding that funding for the project is not yet secured. While the Church and Related California have asked for funding via the City’s Local Housing Trust Fund, and Council issued a non-binding Letter of Intent (to provide funding) on May 14, the City has not yet identified resources to fully meet this project’s request. Any direct award of funding will go through the City Council in a fully vetted public process where your comments and those of others are always welcomed.

All of this is to say that the project is an important one – but it’s in its early stages. I know that the Church and Related California have told us that they plan to work closely with the neighborhood, the Montessori preschool, the Laguna Beach community, and the City Council as the project moves forward. And as noted, the City has some discretion via design review (within SB 4’s streamlined limitations) and discretion as to the City’s use of its housing funds for this project.

I hope that this is helpful by providing more background and that you remain involved in this issue and many others of importance to our city. I encourage you to reach out to me via email at dkiff@lagunabeachcity.net or to my colleagues at City Hall with any follow-up questions. Thank you again and thanks for the correspondence.

Sincerely,
Dave Kiff, City Manager