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March 17, 2026
ITEM TITLE
Housing Report: Accept the Housing Element 202 5 Annual Progress Report and Housing Successor Annual Report for Fiscal Year 2024-25
Report Number: 26-0063
Location: No specific geographic location
Department: Housing and Homeless Services
G.C. § 84308 Regulations Apply: No
Environmental Notice : The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
Recommended Action
Accept the Housing Element 202 5 Annual Progress Report and the Housing Successor Annual Report for Fiscal Year 2024-25.
SUMMARY
Annually, the City of Chula Vista (“City”) prepares a Housing Element Progress Report on the implementation of the City’s Housing Element, which also includes the Successor Housing Agency Report required by Senate Bill 341 under Health and Safety Code Section 34176.1(f). The Housing Element Annual Progress Report provides detailed information regarding the housing activities of the City from January 1, 2025, to December 31, 2025. The SB -341 Report includes housing and financial activities of the Housing Authority’s Low - and Moderate-Income Housing F und of the former Redevelopment Agency. The respective reports must be submitted to the State of California Department of Housing and Community Development (“HCD”) by April 1 of each year.
ENVIRONMENTAL REVIEW
The proposed activity has been reviewed for co mpliance with the California Environmental Quality Act (“CEQA”), and it has been determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment . Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.
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BOARD/COMMISSION/COMMITTEE RECOMMENDATION
The Housing and Homeless Advisory Commission will be provided with an overview of the 202 5 Housing Element Progress Report at their next meeting.
DISCUSSION
Adopted on July 13, 2021 and amended on September 13, 2022, the City ’s 2021-2029 Housing Element addresses the housing needs and opportunities for present and future Chula Vista residents. Each year, the City must submit to the State of California Department of Housing and Community Development (“HCD”) a standardized summary of its progress in implem enting the policy and action programs outlined within the Housing Element based on the specified goals and objectives. 2025 Housing Element Annual Progress Report
The 2025 Housing Element Annual Progress Report (the “HE Report”), included as Attachment 1 (Executive Summary) and Attachment 2 (Required Housing Element Reporting Forms), provides detailed information regarding housing activities of the City from January 1, 2025, through December 31, 2025.
California Government Code Section 65400 requires the HE Report to include the following: (1) progress in meeting the Regional Housing Needs; (2) the effectiveness of the Housing Element in the attainment of the community’s housing goals and objectives; and (3) progress toward mitig ating governmental constraints identified in the Housing Element.
In 2025, building permits were issued for 717 new residential units, including building permits issued for two deed restricted lower income Accessory Dwelling Units (“ADUs”) that were a part of the City’s ADU loan program and 222 building permits issued for non -deed restricted moderate income ADUs , as detailed in Table 1 on the following page (Table B of Attachment 2). Starting this year, HCD allows ADUs to count toward the Regional Housing Needs Allocation (“RHNA”) if the income level chosen can be proven through surveying.
Staff is working with HCD to revise prior HE Reports to receive moderate-income credit on approved projects using the surveying process.
The “Acutely Low Income” category was added as a tracking requirement in recent years to account for units targeted to households earning at or below 15% of Area Median Income (“AMI”). Because this is a new category and there are no programs or funding sources associated with it, no Acutely Low Income units have been produced in Chula Vista. However, some units designated as Extremely Low Income (at or below 30% of AMI) serve Acutely Low Income households in practice.
In 2025, 63% of units were permitted East of the 805 Freeway, with 37% of units permitted West of the 805.
In Western Chula Vista, a majority of units permitted, 63%, were ADUs, while in Eastern Chula Vista 68% of units came from developments of five or more units, with ADUs providing only 12% of all units.
In 2025, Council District 1, in Northeastern Chula Vista, accounted for 27 units, all ADUs. Council District 2, which includes downtown and the Northwestern Chula Vista, accounted for 151 units. Council District 3, which includes Southeastern Chula Vista, accounted for 39 6 units, 253 of which were part of the Enclave master planned development in the Village 2 Section Planning Area (SPA). Council District 4, which primarily covers Southwestern Chula Vista, accounted for 149 units.
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Table 1
Regional Housing Needs Allocation Progress – Permitted Units Issued by Affordability Income Level
RHNA
Allocation
by
Income
Level
Projection
Period
6/30/20-
12/31/20
2021 2022 2023 2024 2025
Total
Units
to
Date
Remaining
RHNA By
Income
Level
Acutely-
Low
Deed
Restricted -
- - - - - -
- -
Non-Deed
Restricted
- - - - - -
Extremely-
Low
Deed
Restricted -
- 29 - - 7 -
36 -
Non-Deed
Restricted
- - - - - -
Very Low
Deed
Restricted 2,750
12 46 95 - 14 -
167 2,547
Non-Deed
Restricted
- - - - - -
Low
Deed
Restricted 1,777
- 65 276 58 41 2
442 1,335
Non-Deed
Restricted
- - - - - -
Moderate
Deed
Restricted 1,911
- - - - - -
222 1,689
Non-Deed
Restricted
- - - - - 222
Above Moderate 4,667 1,753 749 804 821 1,588 493 6,208 - TOTAL RHNA 11,105
TOTAL UNITS 1,765 889 1,175 879 1,650 717 7,075 5,571
Figures 1-3 on the following pages show housing permits issued by type (ADU, single family and 2 -4 units, and multifamily) for Chula Vista in 2025.
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Figure 1: Accessory Dwelling Unit permits issued, 2025
Figure 2: Single Family (green) and 2-4 Unit (yellow) permits issued, 2025
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Figure 3: Multifamily (5+ Units) permits issued, 2025
Programmatic Accomplishments
While thousands of households and individuals were assisted with essential services (e.g. food distribution, therapeutics, emergency shelter, etc.) by Housing funding through partner agencies in 2025, o ther notable programmatic accomplishments for City administered programs during the reporting period are summarized in Table 2.
Table 2
Housing Assistance Related Programs, 2025
Program Name
Number of Households
Assisted
Tenant Based Rental Assistance 28
Rental Arrears 11
Hotel/Motel Voucher 1
Community Housing Improvement Program (CHIP) 4
In addition to the programs above to help homeless prevention or re-house unsheltered individuals, during 2025, 115 homeless clients were enrolled at the Chula Vista Village at Otay, the City’s emergency bridge shelter, with 23 persons exiting to stable permanent housing . Additionally, eight first -time homebuyer households were created in 2025 with administrative support from the San Diego Housing Commission.
The Development Services ’ Code Enforcement staff also conducts inspections of mobilehome and multi - family properties to preserve quality housing stock as detailed in Table 3.
Table 3
Code Enforcement Related Programs, 2025
Program Name Number of Inspections
Multifamily Housing Inspections 308
3 Mobile Home Inspection Program 215
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Additional Housing Accomplishments
Local Housing Trust Fund (“LHTF”)
The City has made many accomplishments in addition to the City’s progress toward our RHNA allocation, such as being awarded $500,000 from HCD through its LHTF program. LHTF provides matching grants to cities for the purpose of increasing the supply of affordable housing to California residents. The funds are matched with a $500,000 contribution from the City, which established its local housing trust fund in 2024.
The total of $1 million in local housing trust funds will be used to construct new affordable housing in Chula Vista. The City will award the funds to a qualifying project proposal through a competitive selection process and may be leveraged with other available City funds. Projects will be selected based on location, developer experience, level of affordability, and other factors.
Palomar Point
The City, in partnership with Wakeland Housing and Development Corporation, was awarded $8.61 Million in Homekey+ funding from the State of California to support the conversion of the former Palomar Motel into permanent supportive housing. This project is part of the City’s continued efforts to help Chula Vista residents find pathways out of homelessness.
Located in Western Chula Vista, at 1160 Walnut Avenue, the former motel, now known as Palomar Point, will be upgraded into fully independent studio apartments for 27 extremely low-income households experiencing homelessness, including seven units set aside for homeless veterans, and one on-site manager’s unit. The project will undergo major rehabilitation, including new plumbing, roof, fire safety systems, installation of kitchenettes, and other significant upgrades. Once completed, all residents will be offered free on-site supportive services and case management tailored to the specific needs of each resident.
Construction is anticipated to be completed by the end of 2026, with full occupancy expected in the first quarter of 2027.
To support operations, long-term affordability, and services, the project has been awarded 20 Project-Based Vouchers and seven Veterans Affairs Supportive Housing vouchers by the County of San Diego, ensuring ongoing support to keep residents housed.
Prohousing Designation
In May of 2025, the City received the Prohousing Designation from HCD, a recognition reserved for cities and counties that go above and beyond in enacting bold, locally driven policies that accelerate housing production, lower costs, and expand opportunity. One benefit of the Prohousing Designation is the ability to apply for grant funds through the Prohousing Incentive Program (“PIP”). The City applied for, and is expected to receive, $1.12 million in PIP funds in summer 2026. The funds will go toward operating costs for the City’s emergency shelter.
Shallow Rental Subsidy Program (“SRSP”)
In response to market conditions and rental affordability in the senior (55+) populations, the City launched a one -year pilot SRSP in July 2025 to provide a $500 monthly rental subsidy for u p to 40 qualifying households using Housing Successor homeless prevention funds. The City will be completing a senior housing affordability study this year (early 2026) to assess need and future program funding.
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Analysis of Housing Production in Housing Element Period – First Five Years The City has now met its Above Moderate RHNA target through the current HE cycle, and 50% of its overall target of 11,105 units. It is still far short of its RHNA targets for Very Low, Low, and Moderate Income housing.
Historically, all unrestricted or market-rate units have been classified as “Above Moderate.” This year, staff have performed the necessary research to reclassify some unrestricted units as “Moderate Income” to more accurately reflect the actual rental prices for such units, however, there remains a large shortfall in the Low, Very Low, and Extremely Low Income categories.
City staff continue to promote and support the development of housing for these income categories; however, deed-restricted affordable units are inherently harder to produce than unrestricted Above Moderate units, because they typically require significant public or private subsidy. To put the Low and Very Low RHNA targets in perspective, if one assumes a subsidy amount of $100,000 per unit, nearly four hundred million dollars would be needed to meet the remaining cumulative target of 3,882 units (in reality, the public subsidy required per affordable unit is typically much greater than $100,000).
Through the first five years of the current HE cycle, rental housing makes up 74% of all housing development, with the remaining 26% intended as homeownership housing. This emphasis on rental housing is partly due to macroeconomic factors and partly due to state laws, particularly laws regarding construction defect liability, which have had the effect of discouraging the production of multi family homeownership units, i.e., condominiums.
Through the first five years of the current HE cycle, a majority of units, 63%, are within developments of five or more units. This may include both apartment buildings and townhome -style developments in master-planned communities. Single-family homes and ADUs each contributed 15% of the overall housing production, with developments of 2-4 units providing just 5% of housing production.
Senate Bill 341 Report (“SB-341”) (the “SB-341 Report”) On January 1, 2014, SB-341 became effective, amending Health and Safety Code Section 34176.1(f), requiring each housing successor agency that assumed the housing functions of a former Redevelopment Agency to prepare financial statements for the Redevelopment Housing Agency and post a separate report on its website containing information regarding the housing and financial activities of the Low to Moderate Housing Fund (“LMIHAF”) of the former Redevelopment Agency for the previous year.
The Housing Successor Annual Report for Fiscal Year 2024-2025 is included as Attachment 3. As required by HCD, this report will be included with the submittal of the Housing Element Annual Progress Report. Some highlights from this report include a total deposit of $1, 062,200 by the Housing Authority into the Housing Asset Fund from a variety of revenue sources. A total of $ 737,641 was expended by the Housing Authority, all of which were for administrative costs. These expenses included $77,665 in supplies and services and $659,976 in other administrative costs . The Housing Asset Fund balance as of June 30, 2025, was $15,060,183. The sources of funds consisted of loans receivable, cash and cash equivalents along with other miscellaneous items.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council member do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
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Staff is not independently aware and has not been informed by any City Council member of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There are no current -year fiscal impacts as a result of this action. All staff time and costs to prepare this report were included in the current fiscal year budget.
ONGOING FISCAL IMPACT
There are no ongoing fiscal impacts as a result of this action.
ATTACHMENTS
1. Housing Element 2025 Annual Report Executive Summary
2. Housing Element Reporting Forms (Calendar Year 2025)
3. Housing Successor Annual Report-SB-341 (Fiscal Year 2024-2025)
Staff Contact: Stacey Kurz, Director of Housing and Homeless Services Chris Stanley, Senior Planner, Housing and Homeless Services