AGENDA TITLE:
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Public Hearing to Consider Adopting 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 19, 2025
PREPARED BY:
Cynthia Marsh, City Planner
recommendation
RECOMMENDED ACTION:
Public hearing to consider adopting a motion to approve the 2024 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 2024 Housing Element Annual Progress Report (2024 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 2024 APR summarizes the City’s activities in the prior calendar year related to implementation of the new 2023-2031 Housing Element, which was adopted by the City Council in March 2024, and Certified by the State in April 2024. This 2024 report will be the first APR for the 6th Cycle Housing Element, however, covers a portion of the calendar year due to an overlap in the adoption date versus the reporting period.
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). 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 2024 calendar year is attached to this report.
Summary of New Housing Units Permitted
The report demonstrates that the City processed planning entitlements for 371 new residential units - up from 295 in 2023. In addition, the City issued 180 building permits in 2024 for construction of new residential units - up from 150 in 2023. HCD requires the City to report the affordability levels of all new permitted units; according to the reporting methodology, 14 permitted units are considered affordable to moderate incomes and 166 permitted units are considered affordable to households with above moderate incomes.
As stated in the City’s new 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 are highlights from the City’s accomplishments in 2024 on implementing the programs outlined in the Housing Element.
• Program 1.4: Land Inventory
• The Housing Element Land Inventory has been added as a layer to the City's GIS System, available on the City's website.
The City contracted with consultants Placeworks and Interwest to include Housing Element Inventory rezone sites as part of the citywide General Plan EIR update already in process, anticipated to be ready for public comment and hearings in Spring 2025. This effort will expand the Downtown Mixed-Use zoning designation.
Additionally, the City contracted with consultant RRM Design Group to prepare a Downtown Specific Plan, which includes a focus on infill housing in the Downtown.
• Program 1.13: Accessory Dwelling Unit (ADU) Strategy
• The City ADU program to date has been a success. In 2024, 14 ADUs were permitted for construction. While 14 was half of what was permitted in 2023, at 28 units, lack of funding for construction due to high interest rates and lack of new allocations from the State's CalHFA $40,000 ADU Grant, likely caused a reduction in permit applications.
In June 2023, the Community Development Department began making semi-regular presentations to the Lodi Board of Realtors concerning topics of interest, including ADUs. The most recent presentation to the Board of Realtors took place in February 2025.
In 2023, the City began working with consultants via the San Joaquin Valley REAP grant program to develop free pre-approved ADU plans and a guidebook to help educate residents and streamline the ADU process. The free ADU plans, guidebook, and handouts were published on the City's website and the City's social media channels in July 2024. The consultant prepared updates to the City's ADU ordinance in 2024, however, some of those provisions are already outdated due to new 2025 ADU laws, and are being revised to bring forward for adoption with the City's Phase 3 Incremental Code Amendments, anticipated to be adopted by City Council early summer 2025.
• Program 1.18: Ensure Consistency with General Plan
• The City's Housing Element Consultant Mintier Harnish, along with City Staff, are continuing work on drafting phased Development Code Amendments throughout the year.
• Program 3.4: Support Transit Facilities and Transit-Oriented Development
• The Downtown Specific Plan effort is in full swing to study and address a plan for redevelopment of areas near and around the Downtown Transit Station. Although the plan is not yet drafted, City Staff received a great amount of interest from the development community in consideration of sites for mixed-use, high density residential development.
The City of Lodi and the San Joaquin Council of Governments (SJCOG), in partnership with San Joaquin Joint Powers Authority (SJJPA) and the San Joaquin Regional Rail Commission (SJRRC), secured $450,000 for planning work to determine how to effectively connect a newly constructed Valley Rail train station in Lodi with the current train station that is located in downtown Lodi. The Valley Rail program must run trains along the “Sacramento subdivision” railroad tracks, which are located further west away from the existing downtown Lodi station, which receives trains running along the “Fresno subdivision” tracks. As such, the City of Lodi will soon have two train stations in service: the downtown Lodi station will be served by two daily San Joaquin trains, and the new Valley Rail Lodi station will eventually be served by seven new San Joaquin trains and three new ACE Rail trains each day. This planning grant will help identify the best way to create connectivity between both stations for riders and the community.
Staff recommends that the City Council approve the 2024 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, 2025.
STRATEGIC VISION:
4C. Housing: Continued progress towards Regional Housing Needs Assessment goals.
FISCAL IMPACT:
Not applicable.
FUNDING AVAILABLE:
Not applicable.
Attachments:
A. 2024 Housing Element Annual Progress Report
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John Della Monica
Community Development Director
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Scott R. Carney
City Manager