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HomeMy WebLinkAboutCC-5 - 26-140 - General Plan Annual Progress Report - 3/17/2026Page 1 of 9 City of Costa Mesa Agenda Report 77 Fair Drive Costa Mesa, CA 92626 Item #: 26-140 Meeting Date: 03/17/2026 TITLE: 2025 GENERAL PLAN ANNUAL PROGRESS REPORT DEPARTMENT: ECONOMIC AND DEVELOPMENT SERVICES DEPARTMENT/ PLANNING DIVISION PRESENTED BY: CAITLYN CURLEY, ASSISTANT PLANNER CONTACT INFORMATION: CAITLYN CURLEY, ASSISTANT PLANNER, 714-754-5692 RECOMMENDATION: Staff recommends the City Council receive and file the 2025 Annual Progress Report (APR) and authorize staff to submit the annual report to the State Department of Housing and Community Development (HCD) and the Governor’s Office of Land Use and Climate Innovation (LCI), formerly known as the Office of Planning and Research (OPR). ENVIRONMENTAL CONSIDERATIONS: The General Plan Annual Progress Report (APR) is a reporting document and does not create or alter policy. The action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) because it is not a “project” under Section 15378(b)(5) of CEQA Guidelines. The action involves an organizational or administrative activity of government that will not result in the direct or indirect physical change in the environment. This informational item provides a means to monitor the implementation of the General Plan during the 12-month reporting period. BACKGROUND: Government Code Section 65400 mandates that each planning agency (local jurisdictions) submit an annual report on the status of their General Plan and progress in its implementation for each calendar year. State law requires that the local legislative body review the Annual Progress Report (APR) prior to submittal to the California Office of Land Use and Climate Innovation (LCI), (previously known as the Office of Planning and Research) and the Department of Housing and Community Development (HCD). The APR helps inform LCI of local planning activities. The Housing Element APR is a component of the General Plan APR required to be submitted directly to HCD on HCD-required tables, tracks the amount of housing units produced in the City, and includes activities and accomplishments from the calendar year. The General Plan APR (including the Housing Element APR) is due to both agencies on April 1st of each year. Item #: 26-140 Meeting Date: 03/17/2026 Page 2 of 9 Timely submission of the APR to HCD fulfills statutory requirements to report certain housing information, including the local agency’s progress in meeting its share of regional housing needs and local efforts to remove governmental constraints to the development of housing. Additionally, the APR gives LCI the opportunity to identify statewide trends in land use decision making and how local planning and development activities relate to statewide planning goals and policies. ANALYSIS: The General Plan APR provides an overview of what was implemented during calendar year 2025 (January 1, 2025 – December 31, 2025). Topics addressed in this report include the following: • Introduction • Purpose of the General Plan • Status of the Adopted Elements • Costa Mesa General Plan History and Background • Progress in the General Plan’s Implementation • Plans, Projects and Accomplishments • Additional Information and Activities The Housing Element APR is included as Appendix A to the General Plan APR (Attachment 1). As required by state law, it includes pertinent information on housing production in the city for the past year, including housing development applications deemed complete; new housing construction entitlements, permits, and completed housing units; Regional Housing Needs Allocation (RHNA) progress; Housing Element Program implementation status; and other housing data and HCD reporting requirements as applicable during the 2025 calendar year. Some highlights from the 2025 reporting period relating to General Plan implementation include: Land Use Element • Ordinance No. 2025-07 was adopted by City Council on October 11, 2025, for Zoning Code Amendments pertaining to minor technical updates for wall standards, screening requirements, counseling uses and other minor technical updates. • On December 8, 2025, the Planning Commission recommended City Council approval for Zoning Code Amendments to allow ministerial approval of two-unit small lot ordinance projects. City Council introduced the Ordinance on January 20, 2026, and adopted the ordinance on February 3, 2026. • Continued to support small businesses through the Costa Mesa Business Assistance Collaborative (BAC) by hosting approximately 12 BAC collaboration meetings, supporting partner events, and directing opportunities to partner organizations. • On November 4, 2025, the City Council adopted Resolution No. 2025-45 amending the Land Use Element for General Plan consistency with the Housing Element. • Additional Land Use Element amendments were processed for private development projects to accommodate the development of 182 residential housing units. Item #: 26-140 Meeting Date: 03/17/2026 Page 3 of 9 Circulation Element • Implementation of a Residential Permit Parking Program throughout 2025 on Joann Street between Placentia Avenue and Federal Avenue and on Federal Avenue between Joann Street and Darrell Street to mitigate parking impacts on the neighborhood. In 2025, 1,136 households were enrolled in the program, with a total of 1,717 permits issued. • Citywide street improvements including new striping, markings, and signage and new bicycle facilities that adhere to the City’s adopted Active Transportation Plan (ATP). • Implementation of Safe Routes to School Action Plan throughout 2025. Two public workshops were held to raise awareness for the plan, and 23 walk audits were conducted by Newport Mesa Unified School District staff. Growth Management Element • Orange County Council of Governments (OCCOG) Membership. OCCOG coordinates land use and growth management policies with jurisdictions in the region. • Collection of Traffic Impact Fees for new uses and developments that will create a greater number of trips than the previous use or development on the property. Housing Element HCD utilizes a template to collect information on how local jurisdictions meet their Regional Housing Needs Allocation (RHNA) obligations and schedule of implementation actions. The HCD template includes a residential housing development tracking tool that shows progress from entitlements (planning projects requiring a discretionary action), through building permit issuance and certificate of occupancy (i.e., built) for each housing unit in a calendar year. While the HCD template tracks all stages of the housing application, planning application through construction, the City can only count housing units toward its RHNA at building permit issuance. Costa Mesa’s 2025 Housing Element APR is included as Attachment 1, Appendix A, and details the City’s continual progress towards meeting its 6th Cycle (2021-2029) Housing Element RHNA and provides an update on the implementation of the Housing Element programs. schedule of implementation actions. Housing Development Applications In 2025, the City’s Planning Division reviewed 134 housing development applications for a total of 519 housing units. Of those applications, 10 were processed by the Planning Division through the City’s discretionary application process for 274 housing units. The remaining 124 applications were issued as building permits (processed by the Building Division) for a total of 245 housing units approved by the Planning Division for building permit issuance. Additionally, housing entitlement applications were received in 2025 totaling 346 housing units. Of these, building permits were issued for 230 of the housing units. A breakdown of the specific housing unit types is further detailed in Figure 1. Some of these notable housing development projects are located at 3150 Bear St, 220 Victoria St, the Costa Mesa Senior Center (695 W 19th St), 960 W 16th St, and a Single Room Occupancy conversion at the Mesa Motel (2205 Harbor Blvd). Of these projects, two applications at 3150 Bear St and 695 W 19th St requested and received approval for State density bonus incentives and/or waivers. Item #: 26-140 Meeting Date: 03/17/2026 Page 4 of 9 Figure 1: 2025 Housing Development Applications by Housing Unit Types SFA = Single-Family Attached; SFD = Single-Family Detached; ADU = Accessory Dwelling Unit Table 1 includes the housing development application information for the total entitled housing units (planning application approved) and building permits issued for 2025, broken down by affordability category. Table 1: Application for Housing Units by Affordability Category (2025) Affordability Category Entitled Building Permits Issued Very Low 87 136 Low 35 33 Moderate 0 27 Above Moderate 224 34 Total 3461 230 1 Some of the entitled units were reported in a prior APR cycle. Building Permits Tables 2 and 3, and Figure 2 summarize the building permits issued for housing projects and housing units that completed construction in 2025. Table 2 and Figure 2 break down the units by housing type, while Table 3 provides additional detail of these units by income category. This year, the City modified its method for determining ADU affordability levels for permits to better understand how ADUs are being used as a housing tool and to comply with guidance released by HCD in January 2025. For these permits, the City collects ADU application affordability data through TESSA as part of the building permit application. This data collected supports the City’s implementation of Housing Program 3M, which mandates the development of a program to track ADU development and affordability. Item #: 26-140 Meeting Date: 03/17/2026 Page 5 of 9 Table 2: Permitted and Constructed Housing Units by Housing Category (2025) Housing Category Building Permits Issued Units Constructed Single Family – Attached (SFA) 6 0 Single Family – Detached (SFD) 13 11 Accessory Dwelling Units (ADUs)1 89 73 Multi-Family 122 0 Total 230 84 Figure 22: Permitted and Constructed Housing Units by Housing Category Table 3: Permitted and Constructed Housing Units by Affordability Category (2025) Affordability Category Building Permit Issued Units Constructed Very Low 136 22 Low 33 35 Moderate 27 14 Above Moderate 334 13 Total 230 84 RHNA Progress As indicated above, the City can only count a housing unit toward its RHNA once a building permit has been issued. As of December 31, 2025, the City has issued building permits for a total of 643 housing units that contribute towards meeting the 6th Cycle (2021-2029) Housing Element RHNA. These include 274 very low-income (including 40 extremely low-income) units, 195 low-income units, 79 moderate-income units, and 95 market rate, or above moderate units. Table 4 shows the City’s RHNA progress for the 6th Cycle. Item #: 26-140 Meeting Date: 03/17/2026 Page 6 of 9 Table 4: Total Building Permits Issued in 6th Cycle (June 2021 – December 2029) Income Category RHNA Allocation June 2021 – December 2024 2025 Total RHNA Progress Very Low Income 2,919 units 138 units 136 units 274 units Low Income 1,794 units 162 units 33 units 195 units Moderate Income 2,088 units 52 units 27 units 79 units Above Moderate Income 4,959 units 61 units 34 units 95 units Total 11,760 units 413 units 230 units 643 units 6th Cycle Housing Element Programs Implementation The City’s Housing Element includes 47 implementation action programs that have various completion timeframes during the 6th Cycle planning period. While some of these programs have been/are being addressed independently as ongoing implementation items, approximately half of the programs will be addressed as part of the City’s “Neighborhoods Where We All Belong” (NWWAB) project. The scope of this effort includes comprehensively rezoning the Housing Element sites, exploring rezoning additional sites approved by the local voter initiative, Measure K and zoning code updates focused on implementing housing element programs and compliance with state law. Recently, the City has streamlined the rezone of Housing Element sites to address compliance items identified by HCD in a letter addressed to the City in August 2025, to pursue certification of the Housing Element. Significant project milestones took place in 2025 related to the NWWAB effort, including but not limited to: • Selection of the consultant team; • Hosted a community open house, three neighborhood-specific workshops, a walking tour, three focus group discussions, 12 pop-up outreach events, and an online survey from July through October 2025; • Analyzed existing conditions, General Plan, adopted urban plans, specific plans, design guidelines, development standards, and planning application processing procedures; • Began preparing the proposed approach to the rezoning effort and draft development standards, which were presented to the Planning Commission on December 8, 2025; • Preparing the project description, including proposed buildout to study, Notice of Preparation, and Initial Study, which were published November 17, 2025; • Held Planning Commission study session on December 8, 2025 to discuss bifurcation of the NWWAB effort, with the Housing Element sites rezoning be streamlined under Senate Bill SB 131 in early 2026; • Hosting the environmental scoping meeting on December 10, 2025; • Issued a Notice of Preparation and completed the IS/NOP public comment period, which ended on December 19, 2025; • Initiated tribal consultations; and • Initiated the creation of the draft Environmental Impact Report and technical studies. In addition to the NWWAB effort, staff applied for the Regional Early Action Planning (REAP) 2.0 grant funds from the Southern California Association of Governments (SCAG) through OCCOG to further address and implement Housing Element Program actions beyond the NWWAB project scope. In partnership with the City, OCCOG has prepared the project scope of work, released the Request for Proposals (RFP), assisted staff in review and selection of a consultant and entered into an Item #: 26-140 Meeting Date: 03/17/2026 Page 7 of 9 agreement with the City for commencement of work. At the time of writing this report, staff were awaiting confirmation from OCCOG to schedule the kickoff meeting for the project. Additional details regarding the City's progress towards completing the Housing Element Programs is summarized in Table D of Appendix A of the General Plan Annual Progress Report (Attachment 1). Other program actions include, and are not limited to: • Continued progress on the Fairview Developmental Center (FDC) Specific Plan, including: o Held City Council and Planning Commission study sessions; o Received direction for environmental study purposes with a preferred land use plan; o Kicked off the environmental review with a Notice of Preparation and a public scoping meeting held on November 17th, 2025; o Began drafting the specific plan document and environmental impact report; and o Anticipated release of the FDC Specific Plan for public review and schedule workshops for community input in Spring 2026. • Partnered with affordable housing developers and assisted with funding for eligible “Homekey” affordable housing projects for the adaptive reuse of two existing City hotels located at 2274 Newport Boulevard and 1400 Bristol Street • Continued to operate the Bridge Shelter for persons experiencing homelessness and the street outreach team continues to conduct outreach. • Continued to implement a tenant protection program. Conservation Element • Continued to progress on the development of a Climate Action and Adaptation Plan. The CAAP assesses the impact of climate change in Costa Mesa and identifies the highest priority and most feasible solutions to meeting the State’s goal of carbon neutrality by 2045. • Continued to operate the Green Business Program, which helps businesses operate sustainably and receive public recognition for their efforts. In 2025, three businesses were added to the Green Business Program, including IKEA, a national furniture retailer. • The City conducted activities to further restoration and improvement efforts at Fairview Park, including consulting with State officials regarding wetland maintenance permitting, presenting the Fairview Park Master Plan Update to City Council, continuing the post-planting restoration project, and consulting with biologists and State experts to prepare plans and wildlife protection measures for activities at Fairview Park. Noise Element • The City continued to enforce Chapter XIII of Title 13 (Noise Control), which establishes permitted noise levels at various times of the day as well as hours for construction activity, to mitigate noise impacts to residential properties within the City. Safety Element • Update of the Safety Element of the General Plan to ensure consistency with the most recent Local Hazard Mitigation Plan (LHMP), the California Office of Emergency Services (Cal OES) Guidelines, and updated hazard mapping by State and Federal agencies is in process. • Construction was completed on Fire Station No. 4 Training Tower and Site Improvement Item #: 26-140 Meeting Date: 03/17/2026 Page 8 of 9 Project to modernize and upgrade its fire training capabilities. The project replaced a 1966-era training tower that no longer met safety, structural, or operational standards. The project established a state-of-the-art regional training center. • Development of emergency management resources including a webpage on the City website and Emergency Preparedness Guide in order to share preparedness information with the community. • Annual Fire Inspections pursuant to SB 1205 including inspections at public and private schools, hotels, motels, lodging establishments and apartment buildings. Community Design Element • The City processed 20 entitlements for residential, commercial and industrial developments for compatibility with the surrounding neighborhoods and for design quality. The residential developments were also evaluated for consistency with the Residential Design Guidelines. • The City issued 380 permits for new residential construction and remodels that were evaluated for compliance with the City’s Residential Design Guidelines. Open Space and Recreation Element • Expansions and park improvements of Shalimar Park and Ketchum-Libolt Park • Improvements to TeWinkle Lake System • Youth and Teen Recreation Programs including after school and summer programs, youth sports, and preschool programs. • Senior Recreation Programs including Meals on Wheels and the Senior Center’s Mobility program. • Continued Development of the Fairview Park Master Plan, which was presented to City Council several times in 2025, with the most recent update taking place at the December 2, 2025, City Council meeting. Historical and Cultural Resources Element • Purchased a plaque for Leroy Anderson House which was presented to the homeowners on January 14, 2026. The structure is locally significant because it reflects the transitional period of early residential development in Costa Mesa and was also the long-term residence of Leroy P. Anderson, a prominent local attorney. These accomplishments reflect Costa Mesa’s continued commitment to fulfilling its General Plan goals while addressing community needs and state mandates. A complete breakdown of 2025 accomplishments are detailed in the Annual General Plan Progress Report. Appendix A specifically addresses housing-related activities and the state required reporting RHNA progress and goals. ALTERNATIVES: The General Plan APR highlights the City’s progress towards implementation of its General Plan. The City Council may modify the report to include additional actions that showcase its commitment. Item #: 26-140 Meeting Date: 03/17/2026 Page 9 of 9 FISCAL REVIEW: This is an informational report and there are no fiscal impacts associated with the approval of the recommended actions. LEGAL REVIEW: The City Attorney’s Office has reviewed this agenda report and the attached 2025 General Plan APR and were approved as to form. CITY COUNCIL GOALS AND PRIORITIES: This item supports the following City Council goals: • Strengthen the public's safety and improve the quality of life. • Diversify, stabilize, and increase housing to reflect community needs. • Advance environmental sustainability and climate resiliency. CONCLUSION: As required by the Government Code, the 2025 General Plan APR is required to be prepared and submitted to the State annually and provides a status of the City’s progress toward implementing its General Plan. Following City Council approval, the 2025 General Plan APR (including the Housing Element APR) will be submitted to the appropriate State agencies.