AGENDA TITLE:
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Public Hearing to Consider a Motion to Approve the 2025 Housing Element Annual Progress Report and Direct Staff to Transmit the Report to the California Department of Housing and Community Development and the Governor’s Office of Planning and Research (CD)
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MEETING DATE:
March 18, 2026
PREPARED BY:
Cynthia Marsh, City Planner
recommendation
RECOMMENDED ACTION:
Public hearing to consider a motion to approve the 2025 Housing Element Annual Progress Report and direct staff to transmit the report to the California Department of Housing and Community Development and the Governor’s Office of Planning and Research.
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BACKGROUND INFORMATION:
The California Department of Housing and Community Development requires all jurisdictions in the state to prepare annual progress reports on implementation of its Housing Element. California Government Code Section 65400 states that the report shall be considered at an annual public meeting before the legislative body, where members of the public shall be allowed to provide oral testimony and written comments.
The purpose of the 2025 Housing Element Annual Progress Report (2025 APR) is to track and monitor progress in addressing the City’s assigned Regional Housing Needs Allocation (RHNA) goals and policies on an annual basis. The 2025 APR summarizes the City’s activities in the 2025 calendar year related to implementation of the 2023-2031 Housing Element, which was adopted by the City Council in March 2024, and Certified by the State in April 2024. This 2025 report will be the second APR for the 6th Cycle Housing Element.
The report must be submitted to the California Department of Housing and Community Development (HCD) and the Governor’s Office of Planning and Research (OPR) prior to April 1, 2026. HCD provides the APR form to be filled out by each jurisdiction, consisting of a series of tables. The tables summarize the City’s progress during the given year in producing various types of housing units and implementing programs contained in the Housing Element. For each year during the 8-year Housing Element cycle, the table builds upon prior years.
HCD requires reporting on the number of entitlement applications for housing units submitted and approved, and the number of building permits issued, during the year (Tables A, A2, and B), including the type of units (single-family, multifamily, etc.) and the level of affordability (very low, low, moderate, and above moderate income). Table D of the annual report tracks the City’s implementation of policies and programs in the Housing Element, which include goals for timelines to accomplish each program. The City’s Housing Element Annual Progress Report for the 2025 calendar year is attached to this report.
Summary of New Housing Units Permitted
The Annual Progress Report indicates a decrease in residential development activity during the reporting year, reflecting broader housing market conditions affecting development statewide.
In 2025, the City processed planning entitlements for two SB 9 lot splits for a single family home and a duplex, a significant decrease from 371 planning entitlements for new housing units processed in 2024. In addition, the City issued 66 building permits for new residential units, compared to 180 units permitted in 2024.
Staff attributes the reduction in permit activity primarily to current market conditions, including higher interest rates, increased construction costs, and reduced availability of development financing, which have slowed residential development across many jurisdictions in California.
Consistent with the California Department of Housing and Community Development (HCD) reporting requirements, the City must categorize the affordability levels of all newly permitted units using HCD’s income-based reporting methodology. Based on this methodology, 12 permitted ADU units are considered affordable to moderate-income households, and 54 units are categorized as affordable to above moderate-income households.
As stated in the City’s Housing Element for the 2023-2031 planning cycle, Lodi’s assigned RHNA for the eight-year planning period is 3,909 new residential units.
These numbers illustrate the need for the City of Lodi to encourage and facilitate the development of below market rate housing units that would be affordable to households in the very low, low, and moderate-income brackets.
It is noted by HCD that State Housing Element Law requires that jurisdictions plan for all types of housing based on the allocations they receive from the RHNA process. The state requires this planning, in the form of having a compliant housing element, and submitting housing element annual progress reports, as a threshold. HCD may refer jurisdictions to the Attorney General if they do not have a compliant housing element, fail to comply with their HCD-approved housing element, or violate housing element law, the housing accountability act, density bonus law, no net loss law, or land use discrimination law. The consequences of those cases brought by the Attorney General are up to the courts, but can include financial penalties. Additionally, the State has the ability to withhold funding in certain circumstances from non-compliant jurisdictions which can increase the impact of penalties to the jurisdiction.
To date, the City’s newly approved Housing Element is compliant and has met all annual reporting requirements as prescribed by HCD.
Housing Element Program Implementation
The following highlights summarize the City’s progress in 2025 implementing programs identified in the adopted 6th Cycle Housing Element. The City continues to implement a range of regulatory, planning, funding, and partnership initiatives intended to facilitate housing development, preserve existing housing, and address housing affordability and equity throughout the community.
Land Inventory and Zoning Implementation
Program 1.4 - Land Inventory
• The City incorporated the Housing Element Land Inventory into the City’s Geographic Information System (GIS), making the information publicly accessible through the City’s website.
• To support Housing Element implementation and address RHNA capacity needs, the City completed a comprehensive rezoning effort that included approximately 590 parcels, including 12 Housing Element inventory sites. The rezoning added:
• Approximately 57 acres of High Density Residential zoning
• Approximately 30 acres of Downtown Mixed Use zoning
• Approximately 70 acres of mixed-use zoning allowing high-density residential development
• These zoning changes created potential development capacity for approximately 3,140 housing units based on an assumed density of 20 units per acre.
• In addition, the City has retained RRM Design Group to prepare the Downtown Specific Plan, which focuses on facilitating infill housing opportunities and mixed-use development within the Downtown area.
Development Code and Regulatory Updates
Programs 1.1, 1.2, 1.11, and 1.18 - Development Code Amendments and Regulatory Consistency
• The City continues working with Housing Element consultant Mintier Harnish to prepare phased Development Code amendments intended to reduce regulatory barriers to housing production and ensure consistency between the Housing Element, General Plan, and Development Code.
• These efforts include:
• Updating housing-related zoning regulations
• Developing objective design standards for multifamily housing
• Revising development standards to increase housing feasibility
• Implementing housing-related State law changes
• As part of these efforts, the City amended the Residential Medium Density (RMD) zoning district to allow three-story residential development, reducing regulatory barriers to achieving allowable residential densities.
Accessory Dwelling Units (ADUs)
Program 1.13 - ADU Strategy
• The City’s ADU program continues to support incremental housing production. In 2025, 12 ADUs were permitted, compared to 14 units permitted in 2024.
• To support ADU development, the City:
• Partnered with consultants through the San Joaquin Valley REAP grant program to prepare free pre-approved ADU plans and a guidebook
• Published these plans and materials online in July 2024
• Conducted outreach presentations to the Lodi Association of Realtors, including a presentation in February 2025
• Additional ADU ordinance updates are being prepared as part of the City’s Phased Incremental Development Code Amendments.
Affordable Housing Partnerships and Funding
Programs 1.5, 4.5, and 4.6 - Affordable Housing Development Support
• The City continues to coordinate with affordable housing developers and pursue funding opportunities to support affordable housing development.
• Key activities include:
• Partnering with the Housing Authority of the County of San Joaquin (HACSJ) on a proposed 108-unit affordable senior housing development with veteran preference near Salas Park
• Contributing City land as an equity investment in the project
• Providing planning support and assistance with funding applications
• The City also continues to administer the Community Development Block Grant (CDBG) program and coordinate with nonprofit organizations and housing providers regarding housing development and supportive housing opportunities.
• In addition, the City has secured State funding including LEAP, REAP, and HHIP grants to support housing planning initiatives and the development of homelessness response facilities.
Homelessness Response and Supportive Housing
Programs 1.14 and 4.3 - Transitional and Supportive Housing
• The City continues working with regional partners to address homelessness through shelter expansion and supportive housing development.
• Key projects include:
• Development of the Lodi Access Center Emergency Shelter
• Operation of a temporary emergency shelter with capacity for 49 individuals
• Acquisition and rehabilitation of a historic three-story hotel on Main Street to create approximately 40 units of transitional and supportive housing, anticipated for completion in 2026
• The City also participates in the Lodi Committee on Homelessness and collaborates with the regional Continuum of Care to coordinate homelessness response efforts.
Neighborhood Revitalization and Code Enforcement
Programs 2.1, 2.2, and 2.5 - Neighborhood Improvement Initiatives
• The City continues implementing proactive code enforcement and neighborhood improvement programs, particularly in the Eastside area.
• In 2024, Community Improvement staff implemented a proactive inspection approach. The program achieved a 98 percent voluntary compliance rate prior to citation issuance.
• Additional neighborhood improvement efforts include:
• Ongoing graffiti abatement services, typically responding within 24-48 hours
• Public improvements funded through CDBG, including park improvements and community facilities
• Continued work of the Lodi Improvement Committee, which conducts neighborhood workshops and community improvement initiatives.
Transit-Oriented Development and Regional Connectivity
Program 3.4 - Transit-Oriented Development
• The Downtown Specific Plan currently in preparation includes strategies to support higher-density residential and mixed-use development near the Downtown Transit Station.
• The City also partnered with the San Joaquin Council of Governments (SJCOG), the San Joaquin Joint Powers Authority (SJJPA), and the San Joaquin Regional Rail Commission (SJRRC) to secure $450,000 in planning funds to evaluate connectivity between the existing downtown Lodi train station and a future Valley Rail station.
• This effort supports long-term transit-oriented development and improved regional transit access.
Fair Housing and Equity Initiatives
Programs 4.1, 4.7, and 4.8 - Fair Housing and Environmental Justice
• The City continues to implement fair housing initiatives and partnerships to promote equitable access to housing.
• In 2024, the City completed its Analysis of Impediments to Fair Housing Choice, which was accepted by the U.S. Department of Housing and Urban Development (HUD).
• The City also:
• Funds San Joaquin Fair Housing to provide education, mediation, and complaint investigation services
• Supports community-based organizations serving vulnerable populations
• Adopted a new Environmental Justice Element as part of the Housing Element update to address disparities in historically underserved neighborhoods, including East Lodi.
Energy Efficiency and Sustainability
Programs 5.1 and 5.2 - Energy Conservation
• The City continues promoting energy conservation programs for both existing and new housing.
• For existing homes, the City provides information about energy efficiency programs offered by Lodi Electric Utility, including rebates for energy-efficient appliances, insulation, and HVAC systems.
• For new development, the City continues enforcing Title 24 energy conservation standards through the building permit review and inspection process.
Staff recommends that the City Council approve the 2025 Housing Element Annual Progress Report and direct staff to transmit the report to the California Department of Housing and Community Development and the Governor’s Office of Planning and Research before the deadline of April 1, 2026.
FISCAL IMPACT:
Not applicable.
FUNDING AVAILABLE:
Not applicable.
Attachments:
A. 2025 Housing Element Annual Progress Report