Submitted By: Community Development
Prepared By: Adam Atamian, Community Development Director
Zach Rehm, Principal Planner
Subject:
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INFORMATIONAL REPORT ON THE CITY’S HOUSING ELEMENT IMPLEMENTATION & AFFORDABLE HOUSING OPPORTUNITIES
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Fiscal Impact:
There is no direct fiscal impact from receiving this informational report. Costs to carry out any City Council direction will vary based on such direction.
Summary:
At the September 16, 2025 City Council meeting, the City Council directed staff to place an item on a future agenda to review the City’s affordable housing program and opportunities to develop affordable housing. The purpose of this report is to provide the City Council with an update on the City’s Housing Element implementation and the development of affordable housing in the City. Additionally, the report includes an update on the current staff-initiated effort to organize a Real Estate Asset Management Plan (REAMP), for consideration by the City Council at a future date, that will provide the information necessary for the City Council to make informed decisions regarding City-owned properties which could support affordable housing and other uses.
Background:
The City implements programs and regularly updates the City’s Zoning Code (Title 17 of the San Clemente Municipal Code, “SCMC”) consistent with Housing Element commitments to support and incentivize housing at all income levels. In 2021, the City adopted, and in 2022 the State certified, the Housing Element - 6th Cycle 2021-2029 <https://www.san-clemente.org/home/showpublisheddocument/88597/638754716932830000>. Section 5 of the Housing Element is the Housing Action Plan, which includes four goals, 16 strategies, 17 programs, and dozens of objectives to support and incentivize housing at all income levels.
Each year, the City reports its progress implementing the Housing Action Plan to the California Department of Housing and Community Development. A summary table from the 2024 Annual Progress Report is included as Attachment 1. That report indicated that the City is on track to implement the Housing Element, noting 2024 updates to the Objective Design Standards and designation of a Housing Overlay. In 2025, Planning staff have worked on updates to the Emergency Shelter Overlay and the Inclusionary Housing Ordinance, which will be presented for Planning Commission discussion and City Council action later in 2025 or early 2026. Between 2021 and 2024, the City implemented other Programs including municipal code updates to support ADUs and small lot subdivisions, a density bonus ordinance, and a contract with Fair Housing Foundation to provide fair housing services to City residents and property owners.
Attachment 2 includes an example of outreach Planning staff emailed to six affordable housing developers in June 2025 in fulfillment of Program 7 of the Housing Action Plan. In that outreach, staff referenced recent zoning amendments that the City adopted related to streamlined approval processes, Objective Design Standards, and the Housing Overlay. Staff offered to meet with developers to discuss applicable City development regulations and opportunities for housing within the City.
The City also became aware of new housing opportunities through public inquiries regarding available, privately-owned properties. Attachment 3 includes property profile memos developed by Planning staff in response to numerous zoning inquiries about properties for sale. These memos reflect the City’s zoning regulations and processes, though recent State housing laws may allow residential development that supersedes certain local zoning standards. Examples of properties generating such zoning inquiries are the current DMV site (2727 Via Cascadita) and the former Rite Aid site (801 N El Camino Real). Those sites are on commercially zoned lots eligible under State law and/or City code to be developed with housing and mixed-use projects providing a portion of the housing units at an affordable level. In addition to the memos, Planning staff met with the owners of those properties, among others from time to time, and discussed City regulations and opportunities for housing (both market rate and affordable) with interested developers on the phone, by email, and in person.
Attachment 4 includes the May 8, 2013 Planning Commission staff report for a project in which the City designated land and provided funding to support a 19-unit affordable work-force housing project at 107-115 Avenida Serra. The City and the non-profit housing developer entered into an agreement providing that the units would be rented to households of up to three people earning not more than 60% of the Area Median Income at an affordable rent (not more than $998/month subject to annual inflation increases) for at least 55 years. The complete hearing packet is available at: <https://www.san-clemente.org/home/showpublisheddocument/13860/635440558908930000>
That project was the last substantial affordable housing project completed in the City, although several senior housing projects have been approved and constructed since then. The City contributed funds to that project from the Inclusionary Housing Fund, which the City maintains by collecting fees from market rate projects with at least six units that do not include affordable housing, and could utilize to partially fund a future affordable housing project. The City also provided a loan to the housing developer, after the initial request to use California Redevelopment Agency funds was deemed infeasible. The housing developer also provided some of their own funding through grants and tax credits, which would be expected in a future affordable housing project.
The biggest barrier to affordable housing development, especially in coastal Orange County, is the high cost and relative scarcity of available land. Staff did not reference available land in recent outreach to affordable housing developers because the City Council has not recently provided direction to pursue an affordable housing project on City owned land, but it is the most frequent question when staff meet with interested parties. The most recent opportunity to designate land was at the old City Hall site, located at 100 Avenida Presidio. The City declared that property surplus in 2021, and received proposals to develop affordable housing and other uses on the site. Affordable housing is a priority use whose proponents get first rights to negotiate with local governments and offer fair market value for available public land subject to the Surplus Lands Act. The City elected not to move forward with any of the proposals for use of the land in 2021 so it is still City owned, but the site was analyzed in the 2021 Housing Element and added to the Housing Overlay in 2024.
Staff is currently developing a comprehensive Real Estate Asset Management Plan (REAMP), which is intended to catalog, evaluate, and strategically manage all City-owned properties. The draft plan, now in preparation by the Community Development Department, establishes a framework for identifying the best long-term use of City assets, balancing community needs, fiscal responsibility, and opportunities for public benefit. Staff anticipates presenting the draft REAMP to the City Council in early 2026. Key goals of the program include ensuring transparency in property management, aligning real estate decisions with the City’s General Plan, Long-Term Financial Plan, and other policy documents, and optimizing the use of public land for both service delivery and economic development purposes. Once completed, the REAMP will provide the City Council with a portfolio-wide view of City-owned properties that could support affordable housing or other uses, or be declared surplus, which would offer an avenue to development of affordable housing by other parties.
Council Options:
- Receive and file this informational report. This action will result in City staff continuing the implementation of the Housing Action Plan as specified in the Housing Element. The City Council could consider actions to support affordable housing on City-owned parcels through the REAMP, which will come for consideration by the City Council at a future date. This approach ensures that decisions regarding this site are made holistically, with the benefit of a comprehensive assessment of all City assets and the long-term needs of San Clemente residents and businesses.
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- Receive and file this informational report, and provide staff with direction, at this time, on implementation of the Housing Action Plan on a timeline or scope beyond that specified in the Housing Element and the REAMP process. This could include direction for staff to identify sites in the City’s control where affordable housing could be developed in coordination with a non-profit partner or direction to staff to initiate zoning amendments to further incentivize affordable housing on privately held land.
Environmental Review/Analysis:
The action before the City Council, acknowledging ongoing housing programs previously authorized through the Council’s approval of the Housing Element and the ongoing Real Estate Asset Management Plan, does not commit the City to a specific use or development plan. At this stage, there is no approval of construction, operation, or other physical changes. Therefore, this action does not constitute a “project” under CEQA (Guidelines § 15060(c)(3)). If the City Council later approves a specific development or improvement plan for the Property, that future action would be evaluated for CEQA compliance at that time.
Recommended Actions:
Staff Recommendation
recommendation
Staff recommends that the City Council receive and file this report, which will:
1. Maintain the directive of staff to implement the goals, strategies, programs, and objectives of the Housing Action Plan as certified by the State of California through the 2021-2029 Housing Element; and
2. Allow staff to continue evaluating potential sites for affordable housing development through the pending Real Estate Asset Management Plan, and return with feasibility analyses for City Council consideration at a later date.
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Attachment:
1. 2024 Annual Progress Report Summary Table
2. Planning Staff Outreach to Affordable Housing Developers
3. Property Profile Reports for Potential Housing Sites
4. 2013 Affordable Housing Project Funded in Part by City
Notification:
San Clemente Affordable Housing Coalition