City of Gonzales
COMMUNITY DEVELOPMENT DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: April 20, 2026
FROM: Taven Kinison Brown, Community Development Director THROUGH: Carmen Gil, City Manager
SUBJECT: Review of Annual Housing Element Progress Report for 2025
RECOMMENDATION
Staff recommends that the City Council receive and review the Annual Housing Element Progress Report for 2025 to be sent to the California Department of Housing and Community Development (HCD) and Governor's Office of Land Use and Climate innovation (LCI).
BACKGROUND
California cities and counties must submit an Annual Progress Report (APR) on their Housing Element to the Department of Housing and Community Development (HCD) and the Governor's Office of Land Use and Climate Innovation (LCI) each year, covering the previous calendar year. These reports track progress in meeting Regional Housing Needs Allocation (RHNA) targets through building permits, entitlements, and rezoning actions.
The City's 6th Cycle Housing Element for the period December 31, 2023 - December 31,2031, was approved by the City Council in August of 2025 and was acknowledge as compliant with statutory requirements of State Housing Element Law by the California Department of Housing and Community Development on September 22, 2025.
As the Council is aware, the balance of the City's new housing has been the construction of new stand alone and attached ADU as well as garage conversions to ADUs. Also fundamentals to the report is a listing of all programs and implementation items (see the attached report entitled, City of Gonzales 2025 APR).
AGENDA
ITEM
12 REVIEWANDANALYSIS
In recording progress towards satisfying our 6th Cycle1, 266-unit RHNA obligation, we have constructed and occupied 16 new units in the Housing Element period December 31, 2023, to today's date in April 2026. We only have 1,250 more units to go.
While the City is not dependent on the Vista Lucia Specific Plan (VLSP) for zoned land areas to meet our Very Low and Low Income Housing needs, because the city adjusted zoning on specific vacant parcels in the Industrial Zone to allow the new "Workforce Housing Overlay", the Vista Lucia Specific Plan Project will be instrumental in meeting our 321-unit, "Moderate Income" and 657-unit "Above Moderate" income targets. A rephrasing of this would be that the VLSP project is necessary for the City to meet our obligation to provide 978-units of "Missing Middle" and "Market Rate" housing.
Table D of the APR records the Program Implementation Status of the new Housing Element. Of approximately 110 action line items there, the table indicates the several items that have already been accomplished, such as the Workforce Housing Overlay placed in the industrial areas and bilingual information brochures, the table also records progress on meetings to be scheduled, other information items and community workshops yet to be implemented for the purposes of recording and enabling as much housing production in the city as we can muster.
ENVIRONMENTAL REVIEW
Reporting to the State Department of Housing and Community Development of the City's process in implementing our 6th Cycle Housing Element, is not a project under the California Environmental Quality Act.
SCHEDULE
Following this City Council review of the Annual Housing Element Progress Report for 2025, staff will transmit the report the next day, April 21, 2026, to the California Department of Housing and Community Development, and the Governor's Office of Land Use and Climate Innovation (LCI).
ALTERNATIVES
Should the City not submit our Annual Progress Report to HCD, that would constitute a violation of state law, leading to ineligibility for state housing funds, potential lawsuits, and court-imposed fines ranging from $10,000 to $100,000 per month. Non-submission halts progress tracking for housing elements, risking revocation of compliance and increased scrutiny from the Attorney General.
BUDGET IMPACT
Time Spent by the Community Development Director to prepare the APR Annual Progress Report has been covered by the City's REAP 2.0 AMBAG- administered state grant for implementation of the City's 6th Cycle Housing Element, resulting in a lesser draw against the Community Development Department's funds for the Director. Consultant costs in assisting the City to implement the 6th Cycle Housing Element are also covered by the City's REAP 2.0 AMBAG-administered state grant, resulting in neutral impact to the budget.
CONCLUSION
Staff recommends that the City Council receive and review the Annual Housing Element Progress Report for 2025 to be sent to the California Department of Housing and Community Development (HCD) and Governor's Office of Land Use and Climate Innovation (LCI).
Attachments:
1. Annual Housing Element Progress Report 2025