Most of these housing units will likely be rental units, based on trends in planning entitlements and developer interest. Program 7 Facilitating Affordable Housing Development aims to provide additional affordable housing units and to eliminate the disparity in the percentage of households in poverty within Los Banos. Additionally, Program 10 Lower-Income and Special Needs Housing provides assistance in finding affordable and subsidized housing options and seeking funds to construct affordable infill housing in Los Banos.
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City of Los Banos
Affirmatively Furthering Fair Housing (AFFH)
According to the UDP, new market-rate construction in gentrifying areas neither worsens nor eases rates of people moving out of the area. It increases rates of people moving to an area across all socioeconomic groups, particularly high-socioeconomic residents. The UDP recommends subsidized housing construction and housing preservation to help existing residents stay in their neighborhood.
Housing preservation and rehabilitation will be implemented in Los Banos through Program 9 Housing Preservation and Rehabilitation. The mix of lower-, moderate-, and above moderateincome housing units in East, North, and South Los Banos will provide affordable housing options for existing lower-income residents and will encourage higher-income households to move into the area. The Site Inventory will not exacerbate overpayment by renters but will add new housing opportunities in areas that need them.
2024-2032 Housing Element FS-61
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Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) Figure f 5-29 Housing Opportunity Sites by Low and Moderate Income Popylation, Los Banos ~ : :, Neighborhoods
c:::J Site Inventory
Low to Moderate Income
Population • Block Group
LJ<25%
-- 25%-50%
50%-75%
75%-100%
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,
29.<
4' '
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6 ACS 2011-2015 and 2017-2021, HCO, PlaceWorks, HUD Region 9, American Community Survey, UC Berkley Urban Displacement Project, TCAC 2012, Ca/EnvfroScteen 4.0, 2021, CAL FIRE, OEHHA, FEMA.
Source: AFFH Data Viewer, 2025
FS-62
East ·~
Banos
Feet
'42
~
447
City of Los Banos
Affirmatively Furthering Fair Housing {AFFH)
Figure FS-30 Housing Opportunity Sites by Overcrowding, Los Banos II II City Boundary
~ ~ ~1 Neighborhoods
LJ Site Inventory
OVercrowding (ACS, 2017 -
2021) - Tract
CJ Less than 5%
[:::-J 5% - 10%
10%-15%
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Source: AFFH Data Viewer, 2025
2024-2032 Housing Element
~41
9'
46 1,650 3,300 N
Feet A
FS-63
448
Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) Figure FS-31 Housing Opportunity Sites by Overpayment by Renters, Los Bahos -~-----· _ ,_ ..
I) ii City Boundary
~ ~ ~I Neighborhoods
D Site Inventory
Overpayment by Renters
(2017-2021) - ACS Tract Level
-- <20%
40%-60%
60%-80%
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Q;J'
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~ /? . • ,lln~:kll'J!I - - ;;.:r!.~_: 31 - - - - ·- - _.,. 29 ,. 33 -1f,i4 - - - - - - - - · · South Los '35
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ACS 2011-1015 and 2017-2021, HCD, PlaceWorks, HUD Region 9, American Community Survey, UC Berkley Urban Displacement Project, TCAC 2022, Ca/EnvJroScreen 4.0, 2021, CAL FIRE, OEHHA, FEMA.
Source: AFFH Data Viewer, 2025
FS-64
fast Los
Banos
Feet
42 --6
449
Sites by Areas of Integration and Segregation
City of Los Banos
Affirmatively Furthering Fair Housing (AFFH)
Central and a small part of North Los Banos are areas of high segregation and poverty. This census tract, along with the rest of Los Banos is predominantly Hispanic/Latino and has a high percentage of non-white residents (primarily between 60 and 80 percent). Housing opportunity sites propose 202 housing units in areas of high segregation and poverty, approximately seven percent of the total number of housing units proposed by the Site Inventory, including 151 lower-income units (11 percent of the total lower-income units). Housing opportunity sites in areas of high segregation and poverty accommodate a mix of income levels in areas that already have a diverse mix of ethnic and racial groups. In addition, 89 percent of the total lower-income units (1,174 units) are proposed in moderate and high resource areas in North, East, and South Los Banos which have a slightly lower percentage of non-white residents and slightly higher median household incomes. This will encourage greater integration of households of varying races/ethnicities in these areas. Figure F5-32 shows the housing opportunity sites by percent non-white residents. The Site Inventory will not contribute to segregation based on race/ethnicity or income level.
As discussed in Chapter F3, Housing Needs Assessment, approximately 10 percent of the population has one or more disabilities. For persons with disabilities who live independently or with other family members, independent living can be supported with special housing features, financial support, and in-home supportive services. The location of housing is also an important factor for people wifli mo fillty restrictions who re ly on publictransportatron forlravel. Areas wim a n1gh er percentage of residents with a disability are Central, East, and North Los Banos. Housing opportunity sites in these areas would add a total of 1,175 units appropriate for lower-income households, 493 units appropriate for moderate-income households, and 646 units appropriate for above moderateincome households in areas with greater walkability and in proximity to transit stops. This will allow more residents to live near transit and create housing opportunities for residents who are unable to drive. The City will implement housing Program 1, Regional Collaboration, to identify active transportation needs and apply for funding to implement projects to meet the transit needs in the southern areas of the city by the end of the planning period.
Sites by Communities Vulnerable to Displacement
According to the UDP, all of Los Banos has a lower risk of displacement by the UDP and there are no sensitive communities. However, Central Los Banos has the highest percentage of renter households (63 percent) and low-income households (56 percent) in the city, indicating households in this neighborhood may be at the greatest risk of displacement in the city. Figure F5-33 shows the housing opportunity sites in relation to the displacement risk. Housing opportunity sites in Central Los Banos accommodate a total of 202 housing units, including 151 units appropriate for lowerincome households, 49 units appropriate for moderate-income households, and two units appropriate for above moderate-income households. These lower-income units will provide affordable housing options for existing very low and low-income residents at risk of displacement.
To ensure that these housing units are not at risk of conversion, the city has Program 8, Preservation of At-Risk Housing, in place.
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Merced County Multi-Jurisdictional Housing Element (2024-2032) Sites by CalEnviroScreen Score
All of Los Banos has high CalEnviroScreen scores, with most parts of the city above the 88th percentile. South Los Banos has the lowest CalEnviroScreen percentile score, 63rd percentile, while the rest of the city has CalEnviroScreen percentile scores ranging from the 89th to 97th percent ile.
Central Los Banos has the highest CalEnviroScreen percentile score, 97th percentile. All housing units proposed by the Site Inventory are located in census tracts with a CalEnviroScreen score great er than the 50th percentile and approximately 82 percent of housing units (2,314 units) are located in census tracts with a CalEnviroScreen score greater than the 88th percentile. The remaining 18 percent of housing units (512 units) are proposed in South Los Banos which has a CalEnviroScreen score in the 63 rd percentile. Figure FS-34 show the housing opportunity sites by CalEnviroScreen score. Housing opportunity sites in census tracts with CalEnviroScreen scores greater than the 88th percentile would accommodate 1,175 lower-income housing units, 493 moderate-income housing units, and 646 above moderate-income housing units. The Site Inventory would not concentrate lower-income units in areas of higher pollution burden.
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Figure FS-32 Housing Opportunity Sites by Total Non-White Population, Los Banos H ii City Boundary
~ ~ ~I Neighborhoods
LJ Site Inventory
Percent of Total Non-White
Population (Racial
Demographics 2020, Block
Group)
20%-40%
40%-60%
60%-80%
Imagery provided by Esri and its licensors © 2025
City of Los Banos
Affirmatively Furthering Fair Housing (AFFH)
'42
~
0 1,650 3,300 N
Feet A ACS 2011-2015 and 2017-2021, HCD, PlaceWorks, HUD Region 9, American Community Survey, UC Berkley Urban Displacement Project, TCAC 2022, Ca!Em,froScreen 4.0, 2021, CAL FIRE, OEHHA~ FEMA.
Source: AFFH Data Viewer, 2025
2024-2032 Housing Element FS-67
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Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) Figure f 5-33 Housing Opportunity Sites by Displacement Risk, Los Banos ~ : .::1 Neighborhoods
LJ Site Inventory
sensitive Communities - UCB
- Urban Displacement
Project
'(]]]}, Vulnerable
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F5-68
42 East Los 6
Banos
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~41
I
9 46
J.650 3,300 N
Feet A
453
Source: AFFH Data Viewer, 2025
Figure F5-34 Housing Opportunity Sites by CalEnviroScreen Percentile Score, Los Banos IL __ JJ City Boundary
~ ~ ~I Neighborhoods
CJ Site Inventory
calEnviroScreen 4.0 -
Composite Score Percentile
61-70%
81 - 90%
91 - 100% (Highest
Scores)
Imagery provided by Esri and its licensors © 2025
1:.
2,
4 zr
South Los
llanos
City of Los Banos
Affirmatively Furthering Fair Housing {AFFH)
'U
~
9 1,650 3,300 N
Feet A ACS 2011-2015 and 2D17-2021, HCD. PloceWor/u, HUD Region 9, American Community Survey, UC B~rktey Urban Displacement Project, TCAC 2022. Calfm1/;l'0Screen 4.0, 2021, CAL FIRE, OEHHA, FEMA.
Source: AFFH Data Viewer, 2025
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Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) Sites Analysis Summary Data
Table FS-10 summarizes the Site Inventory by development priority area, sites, number of units by income level, and census tract characteristics. The majority of housing opportunity sites are in moderate and high resource areas. However, a small portion of proposed housing units are in Central Los Banos which is an area of high segregation and poverty. These opportunity sites in Central Los Banos are also in the area with the highest percentage of LMI residents and highest CalEnviroScreen percentile score.
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Table FS-10 Site Inventory by Census Traci Characteristics Site Inventory Capacity (Units) AFFH Indicators
Number of Above Percent Percent
City of Los Banos
Affirmatively Furthering Fair Housing (AFFH)
Census Tract Existing Moderate- Moderate- Percent Non- TCAC Overpayment by Overcrowded CalEnviroScreen Number Households Lower-Income Income Income White Median Income LMI Households Opportunity Area Renters Households Displacement Risk Percentile Central
06047002201 2,122 151 49 2 66.1% $44,200 67.1% High Segregation & Poverty 45.6% 8.8% lower Displacement Risk 97.1 Ea,t
06047002303 1,911 458 0 316 67.0% $39,272 27.9% Moderate-Resource 65.5% 8.2% lower Displacement Risk 89.4 ----.~ .. ----- ------- --- 06047002304 654 255 444 267 73.6% $70,915 27.9% Moderate-Resource 37.1% 0.0% Lower Displacement Risk 89.4 -- 0604700230S 1,449 217 0 0 72.6% $69,884 27.9% Moderate-Resource 45.2% 4.2% Lower Displacement Risk 89.4 ----- --------- --- ---- --------- 06047002306 736 0 0 28 77.4% $90,847 27.9% Moderate-Resource 16.8% 13.7% Lower Displacement Risk 89.4 North
06047002204 1,395 94 0 33 68.8% $77,911 27.9% Moderate-Resource 63.1% 10.3% lower Displacement Risk 88.9 South
06047002301 2,477 138 59 294 64.7% $86,708 32.4% High-Resource 34.5% 5.7% lower Displacement Risk 63.4 ----------·--- Total 1,313 552 940 Source: California Tax Credit Allocation Committee (TCAC)/California Housing and Community Development (HCD), Opportunity Maps (2023); U.S. Census Bureau, American Community Survey 5-Year Data (2017-2021) 2024-2032 Housing Elemenf FS-71
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MH,c.:~d Cot;nly A.s.s<)Ciolion Qf Gov~rnrnents
Merced County Multi-Jurlsdletlcnc::11 HOU$!ng Element {2024•2032) This page intentionally left blank.
f5~n
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City of Los Banos
Affirmatively Furthering Fair Housing (AFFH)
FS.14 Contributing Factors and Meaningful Actions
AB 686 requires the identification and prioritization of contributing factors to fair housing issues based on all the previously required analysis (outreach, fair housing assessment, Site Inventory).
This section lists contributing factors that create, perpetuate, or increase the severity of one or more fair housing issues that were identified in community outreach, and the analysis in this document. Contributing factors were prioritized based on their impact on fair housing issues as well as the City's ability to address the contributing factors. Chapter F7, Housing Plan includes meaningful actions the City will undertake to affirmatively further fair housing for special needs, racial/ethnic minority, and low-income residents.
Enforcement and Outreach
The City's website does not have information on fair housing or fair housing rights and responsibilities for tenants and landlords. The City's website does have information on services for unhoused individuals and service providers, however most of this information is available only in English.
Contributing factors to enforcement and outreach in Los Banos include:
• Language barriers (Priority Level - Medium): Approximately 54 percent of the population of Los Banos speaks a language other than English and 30 percent speak English less than very well. • Lack of sufficient fair housing outreach (High): The City's website does not contain information on fair housing rights or links to fair housing resources for residents. In addition, residents identified the need for more housing outreach efforts, especially for low-income and minority residents.
■ Lack of fair housing testing and enforcement (Medium): The City does not perform fair housing testing.
• Lack of analysis and reporting of fair housing complaints (High): The City does not publicly report or analyze fair housing complaints.
• Lack of analysis and reporting of lending practices (Medium): There is a lack of reporting and analysis of home mortgage loan data.
• Rationale: Resources to educate, investigate, and enforce fair housing complaints are key to ensuring fair housing protections are accessible and effective for protected classes. In addition, proactive interventions to fair housing issues prevent displacement.
Segregation and Integration Patterns and Trends
Los Banos has a large Hispanic/Latino population and entire city is predominantly Hispanic/Latino.
Central Los Banos has the highest concentration of households living below the poverty line and LMI residents. In addition, Central Los Banos has a high concentration of residents with a disability, female-headed, single-parent households, and is an area of high segregation and poverty. In contrast, South Los Banos has the lowest percentage of non-white residents, higher median household income, and lower percentages of LMI residents, residents with a disability, and femaleheaded, single-parent households.
Contributing factors to segregation and integration patterns and trends in Los Banos include:
2024-2032 Housing Element FS-73
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Merced County Multi-Jurisdictional Housing Element (2024-2032) • Land use/zoning laws (High): Los Banos has a high concentration of medium- and highresidential density and mixed-use zoning designations in Central Los Banos and low-density residential zoning in other neighborhoods.
• Concentration of public and affordable housing in Central Los Banos and East Los Banos (High). • Concentration of older housing units in Central Los Banos (80 percent of units built prior t o 1990 in this neighborhood) (Medium).
■ Displacement of residents due to economic pressures: Home values and rents have increased significantly in Los Banos. Between 2015 and 2023, home value increased from $223,339 to $438,662 (65 percent increase) and median rent for a two-bedroom apartment increased from $775 to $1,297 (SO percent increase). In addition, about 29 percent of homeowners and 46 percent of renters are cost burdened, meaning many households are paying too much for housing. These trends indicate cost burdened and low-income households may be at risk of displacement if the cost of housing continues to rise (Medium). • Rationale: Efforts to deconcentrate segregation should focus on two key areas: increasing affordable housing in both high-poverty and low-poverty neighborhoods to facilitate mobility and implementing measures to incentivize affordable housing development and expand opportunities in areas with higher resources.
Racially and Ethnically Concentrated Areas of Poverty
Central Los Banos is an area of high segregation and poverty, with the highest poverty rate in the city (27 percent) and one of the highest percentages of non-white residents (65 to 70 percent). In contrast, South Los Banos is a RCAA. Approximately 36 percent of residents in South Los Banos identify as non-Hispanic/Latino white (only 19 percent of the total city population identifies as nonHispanic/Latino white) and the median household income is $86,708 (22 percent higher than the city's median household income).
Contributing factors to racially and ethnically concentrated areas of poverty in Los Banos include:
■ Land use and zoning patterns (High): The majority of land zoned for housing within Los Banos is low density residential. Zones allowing higher density residential development are concentrated in the central parts of the city, in Central Los Banos, western and southern parts of North Los Banos, and western parts of East Los Banos.
• Displacement of residents due to economic pressures (Low): While displacement risk is low throughout Los Banos, low-income renter households are concentrated in Central Los Banos. In addition, renter households have high rates of cost burden, indicating they may be at risk of displacement.
■ Location and type of affordable housing (High): Subsidized affordable housing is concentrated in Central Los Banos. Community members and representatives from community organizations expressed a desire for a variety of housing types, including duplexes, triplexes, and studio units. • Rationale: Efforts to deconcentrate areas with a concentration of minorities and poverty should focus on two key areas: increasing affordable housing in both high-poverty and low-poverty neighborhoods to facilitate mobility and implementing measures to incentivize affordable housing development and expand opportunities in areas with higher resources.
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City of Los Banos
Affirmatively Furthering Fair Housing (AFFH)
Disproportionate Housing Needs
Central Los Banos has the highest percentage of renters and severely overcrowded housing units, as well as the highest percentage of housing units older than 30 years old. Central, and portions of North and East Los Banos have the highest rates of overcrowding and overpayment among homeowners and renters. In contrast, South Los Banos has a higher percentage of single, detached housing units, lower percentage of renters, and lower rates of overcrowding and overpayment.
Contributing factors to disproportionate housing needs in Los Banos include:
• Concentration of older housing units in Central Los Banos (Medium): Approximately 80 percent of housing units in Central Los Banos are more than 30 years old and potentially in need of repair. In addition, community feedback identified many rental units are in need of maintenance or repair.
• Concentration of renters in Central and East Los Banos (High): Approximately 57 percent of households in Central Los Banos and 49 percent of households in East Los Banos are renters.
These areas also have the most areas designated for medium and high-density residential land uses.
• Concentration of multi-unit structures in Central and parts of East Los Banos (likely due to land use and zoning patterns (High).
• Prevalence of cost burden and rising housing costs (Medium): Approximately 29 percent of homeowners and 46 percent of renters are cost burdened in Los Banos. In addition, rent costs have increased significantly in recent years. According to Zumper, rent for a two-bedroom apartment has increased almost 24 percent between September 2022 and September 2023, from $1,437 to $1,823.
• Location of newer housing developments (Medium): New housing developments are concentrated in South, North, and parts of East Los Banos), particularly in South Los Banos located south of Wal mart.
• Rationale: The lack of affordable housing options can restrict individuals and families to a limited number of choices, forcing them to settle for substandard housing or pay a disproportionate amount of their income on rent. This can perpetuate cycles of poverty and limit upward mobility. Affordable housing options concentrated in a single area of the city also constrain mobility.
Disparities in Access to Opportunities
Los Banos has a mix of TCAC opportunity scores, from areas of high segregation and poverty to high resource areas. Central Los Banos is an area of high segregation and poverty, North Los Banos is a low resource area, East Los Banos is moderate resource area, and South Los Banos is a high resource area. Education outcomes are low throughout the city, and economic and environmental outcomes are low except for the South Los Banos neighborhood. According to CalEnviroScreen, the entire city has a high degree of pollution burden, particularly Central Los Banos, and a high percentage of the city's population have characteristics that make them more susceptible to environmental health hazards. South Los Banos has the lowest pollution burden, the most positive economic outcomes, and the closest job proximity.
Contributing factors to disparities in access to opportunities in Los Banos include:
• Location of amenities (parks, etc.) (Medium): Los Banos has limited access to parks and amenities. Parks are scattered throughout the city, however, newer neighborhoods (in South 2024-2032 Housing Element F5-75
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Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) and parts of North and East Los Banos) have a greater number of parks, while Central Los Banos has only a few parks.
• Location of environmental health hazards (High): Pollution burden is high throughout the city, and highest in Central Los Banos, due to drinking water contaminants, pesticide use, and groundwater threats. In addition, population characteristics that make Los Banos residents more vulnerable to pollution include asthma, cardiovascular disease, low education attainment, linguistic isolation, and high rates of poverty and unemployment. • Lack of high-quality transit stops (Medium): According to Caltrans data, there are no highquality transit stops in Los Banos (defined as an existing rail or bus rapid transit station, a ferry terminal served by either a bus or rail transit service, or the intersection of two or more major bus routes with a frequency of service interval of 15 minutes or less during the morning and afternoon peak commute periods).
• Limited access to transit in most parts of the city (Low): Most of Los Banos is more than half a mile from a transit stop. While Central Los Banos has the greatest proximity to transit stops, none of the stops have a service interval of 15 minutes or less. • Concentration of low-paying jobs and lack of access to high-paying jobs (Low): The largest employment industries in Los Banos are education services, health care, and social assistance (17 percent of employed population); construction (16 percent of employed population); and retail trade (15 percent of employed population). These industries tend to have lower median incomes.
• Land use and zoning patterns (High): Types of zoning that accommodate land uses with employment opportunities, such as industrial and commercial, are concentrated along State Route 33 and H Street (primarily in Central Los Banos and parts of North and East Los Banos).
Most other areas of the city primarily consist of residential zones that largely consist of lowdensity residential zones. • Rationale: Improving economic opportunities requires a range of policies designed to create jobs, develop the workforce, create housing closer to jobs and ensure that workers can get to jobs. More jobs and more affordable housing give residents more housing choices (type of housing and mobility).
F5.15 Meaningful Actions to Address Fair Housing Issues The findings of this analysis were used to develop meaningful actions, metrics and milestones that promote inclusive communities, increase housing opportunities, and address racial/ethnic and economic disparities in the city. The contributing factors were prioritized to better formulate policies and programs and carry out meaningful actions to further fair housing. Meaningful actions to address fair housing issues are included in the housing programs located in Chapter F7, Housing Plan.
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City of Los Banos
Housing Resources and Site Inventory Analysis
F6 Housing Resources and Site Inventory
Analysis
This section documents the methodology and results of the Site Inventory analysis conducted to demonstrate the City of Los Banos' ability to meet its share of the 6th cycle Regional Housing Needs Allocation (RHNA). This section also discusses infrastructure, services, and financial and administrative resources that are available for the development, rehabilitation, and preservation of housing in the City of Los Banos. Background information on regional development trends and analysis are included in Chapter 4, Regional Housing Resources.
The Site Inventory was developed through the analysis of development trends, the identification of available land, and community input. Community engagement events, including a community workshop held in Los Banos on August 31, 2023, influenced the selection of opportunity sites.
F6.1 Regional Housing Needs Allocation
This Housing Element covers the planning period of January 2024 through January 2032 (also referred to as the 6th cycle). The Merced County Association of Governments (MCAG), as the metropolitan planning organization for the Merced County region, is responsible for preparing the RHNA for the region based on recent growth trends, income distribution, and capacity for future growth. This methodology must align with state objectives, including but not limited to:
• Promoting infill, equity, and environmental protection • Ensuring jobs-housing balance
• Affirmatively furthering fair housing
Los Banos must identify adequate land with appropriate zoning and development standards to accommodate its assigned share of the region's housing need. Los Banos' share of the RHNA is 3,132 units, which is distributed among five income categories, as shown in Table F6-1.
Table F6-1 Los Banos 2024-2032 RHNA
' Income Category (Percent of Merced
County Area Median Income [AMI]) Number of Units Percent of Total Units Extremely Low(< 30% of AMI)* 375 12.0% .. - - ----- - Very Low (30 to 50% of AMI) 344 11.0% Low (51 to 80% of AMI) 493 15.7%
Moderate (81% to 120% of AMI) 566 18.1%
Above Moderate (> 120% of AMI) 1,354 43.2%
Total 3,132 100%
*The RHNA does not project the need for extremely low-income units, but pursuant to Government Code (GC) Section 65583(a), the city must project its extremely low-income housing needs based on Census income distribution or assume 50 percent of the very lowincome units required by the RHNA as extremely low-income units. The City's very low-income requirement is 719 units. The number of extremely low-income units that the city must plan for shown here was projected using Census data. According to the Comprehensive Housing Affordability Strategy (CHAS), data developed by HUD, 26.2 percent of households in the city earned less than 50 percent of the AMI. Among these households, 52.1 percent earned incomes below 30 percent (extremely low). Therefore, the City's RHNA allocation of 719 very low-income units was distributed as 375 extremely low (52 percent of the 719 very low-income units required by the RHNA) and 344 very low-income units. However, for purposes of identifying adequate sites for the RHNA allocation, state law does not mandate the separate accounting for the extremely low-income category.
Source: MCAG, 2022. Final Regional Housing Needs Plan.
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Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) F6.2 Meeting the RHNA
Each jurisdiction must identify adequate land with appropriate zoning and development standards to fulfill its share of the RHNA. Jurisdictions can use planned and/or approved projects, estimated accessory dwelling unit (ADU) production, and vacant and/or underutilized sites to accommodate the RHNA. In some cases, rezoning must occur to ready sites for future residential development.
Once the City has demonstrated in the Housing Element that it has the development capacity to accommodate the RHNA, it has two implementation-related obligations during the planning period:
1. Maintain a "no net loss" policy of its residential development capacity over the housing element planning period, meaning that sites listed in the adopted Housing Element land inventory may not be down-zoned to a lower-density residential zone or rezoned to a nonresidential zone, unless the City up-zones or rezones alternative sites prior to the density reduction or rezone on the inventoried site.
2. Continue to allocate available funding resources to and facilitate the development of affordable housing.
F6.2.1 RHNA Credits
The City may use units in approved and/or permitted residential developments which will be completed within the planning period, and anticipated ADU production, as credit towards fulfillment of its RHNA.
Planned and Approved Projects
Residential developments approved and permitted, but not yet built (also called "pipeline projects") can be credited towards the City's RHNA provided it can be demonstrated that the units can be built by the end of the 5th cycle planning period. Similarly, units that are under construction but have not yet received a building permit as of June 30, 2023, can also be credited towards the RHNA.
Affordability (the income category in which the units are counted) is based on the actual or projected sale prices, rent levels, or other mechanisms establishing affordability of the units within the project. Pipeline projects that can count toward the City's 5th cycle RHNA are listed in Table F5-2 and the locations of these projects are shown on Figure F5-2. For the purpose of this Housing Element, the city is divided into four neighborhoods: Central Los Banos, North Los Banos, South Los Banos, and East Los Banos.
Pipeline projects are mostly concentrated in Northeast and Northwest Los Banos and consist of single-family and multi-family projects. The City currently averages two to three months to process a planning entitlement, and an additional two to three months to process a building permit.
Approximately 10 percent of approvals result in expired entitlements. Considering the City's past trends of project approvals and the current status ofthese projects, all units are expected to receive Certificates of Occupancy by 2027, well before the end of the 2023-2031 planning period. La Plaza Inn Conversion has units available for extremely low-income households as a homeless permanent supportive housing complex. Sunset Hills Development includes four Section 8 units affordable to low-income households. The remaining units were allocated to the above moderate-income category. There are no known barriers that would impede the completion of these projects. The City will continue to monitor these projects through Program 2 and identify alternative sites if necessary.
None of the pipeline projects have any known conditions that would preclude residential F6-2
463
City of Los Banos
Housing Resources and Site Inventory Analysis
development on these sites during the planning period. The following outlines the status of pipeline projects and necessary steps for completion of each project:
■ Southpointe Phase 8 was completed in 2025 and is fully built-out. • Racquet Club Estates has received entitlement approvals and is in the process of obtaining building permits. This project is anticipated to be completed by 2027 and will need to submit building permits and receive building permit approvals before beginning construction. • Sunset Hills Development has received entitlement approvals and is in the process of obtaining building permits. This project is anticipated to be completed by 2027 and will need to submit building permits and receive building permit approvals before beginning construction. • The Villages at Stonecreek IX Tentative Map has been approved. The project will need to obtain Final Map approval, submit building permits, and receive building permit approvals before beginning construction. The project is anticipated to be completed by 2028. ■ Villages at Stonecreek IV project is scheduled for public hearing in Summer of 2025 and anticipates Tentative Map approval at that time. The project will require Final Map, submit building permits, and receive building permit approvals before beginning construction. The project is anticipated to be completed by 2028.
■ La Plaza Inn Conversion project is a planned project. The City is actively working with the property owner to identify a funding source to develop an affordable housing project on the site. The project is anticipated to be completed by 2030. • The Place Road project has received entitlement approvals and is currently under construction.
This project is anticipated to be completed by the end of 2025. • Southpointe Phase 10 has received entitlement approvals and is currently under construction.
This project is anticipated to be completed by the end of 2025. • The East Center Phase 3B Final Map has been approved. This project is anticipated to be completed by 2027 and will need to submit building permits and receive building permit approvals before beginning construction.
2024-2032 Housing Element F6-3
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Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) Table F6-2 Pipeline Projects
Above Percent of
Very Low- Low- Moderate- Moderate- Maximum Estimated
Map Assessor's Parcel Income Income Income Income Total Density Completion ID Project Name Number (APN)1 Units Units Units Units Units Achieved Status Date 1 Southpointe Phase 8 428-220-001 thru 0 0 0 63 63 84% Fully Built-Out Complete 063
2 Racquet Club Estates 428-320-001 thru 0 0 30 0 30 48% Entitlement 2027 014 Approved
3 Sunset Hills 026-053-008, 021, 0 4 11 0 15 167% Entitlement 2027 Development 022 Approved
4 Villages at Stonecreek 430-060-020 0 0 0 72 72 62% Tentative Map 2028 IX Approved
5 Villages at Stonecreek 430-060-022, 023 0 0 0 160 160 85% Under Review 2028 IV
6 La Plaza Inn 081-140-008 60 0 0 0 60 83% Planned 2030 Conversion
7 Place Road 424-120-030 0 0 0 79 79 69% Entitlement 2025 Approved
8 Southpointe Phase 10 424-120-031 0 0 0 132 132 58% Entitlement 2025 Approved
9 East Center Phase 3B 431-270-015 0 0 0 47 47 39% Entitlement 2025 Approved
Total 60 4 41 295 400
1An assessor's parcel number is a series of digits used to identify property. Each parcel is assigned an APN that corresponds to a location on a page in a book of maps maintained by the County Assessor's Office.
F6-4
465
Figure F6-1 Pipeline Projects
'
II I! City Boundary
;_ -_ -_ -; Neighborhoods
G Pipeline Projects
Imagery provided by £srl and Its r,~ensors 4'.> 2025.
Additional data pro1,1;ded by County of Merced, 2023.
2024-2032 Housing Element
~
I
I
I
I
I
North ~•
' Los Banos l ~ -- • •
%,Qi --- t • -~ -
!i)@'..
- -il!F01 • I
Centr.ol ~ •- LosBanos / • -:: -··i . !S' I
WM u~¾, '!# ! ~ I
--- . IJ ~ 0 ~----- .,_ ~ I ·,·- l ----=--~--:-:--::--.~ .r':._ __ J I
e
South Los
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I
0 ~
91 City of Los Banos
Housing Resources and Site Inventory Analysis
o e
East Los
Banos
0 I
~-
~
~f.!t~lll;!
2,000
Feet
4,000 N
A i~o.·: •!:. ,ii-·
r,t· lr -;,.
F6-5
466
Merc ed County Assoc iation of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) Accessory Dwelling Units
Based on an analysis of ADU production in Los Banos over the last five years (2018 through 2022), ADU production that will occur during the 6th housing cycle has been estimated and assumed against the City's RHNA obligation.
The City issued an average of five ADU building permits per year during the last five years.
Extrapolated over the 2024-2032 Housing Element planning period, the City can assume the production of 40 ADUs . ADUs permitted in previous years have been reported in the very low and low-income categories without deed restrictions. While it is likely that some ADUs developed during the planning cycle may be affordable to households with lower incomes, in order to better ensure adequate housing sites are affordable to lower- and moderate-income households and due to the relatively small sample size of permitted ADUs, all anticipated ADUs were conservatively assigned to the above moderate-income category. Table F6-3 shows the recent history of ADU permit issuance.
Table F6-3 Accessory Dwelling Unit Production
Reporting Year ADU Building Permits Issued
2018 0 ------ -- ·------- -- --
2019 2
2020 1
2021 18
2022 4
Total 25
Annual Average 5
F6.3 Summary of RHNA Credits
The City can satisfy approximately 14 percent of its RHNA requirement with planned and approved units and projected ADU development. To achieve the remaining RHNA, the City must demonstrate the availability of sites with appropriate zoning and development standards that allow and encourage the development of 2,692 units. This unit count is broken down by household income level. As shown on Table F6-4, Los Banos has a remaining RHNA of 659 units affordable to very lowincome households, 489 units affordable to lower-income households, 525 units affordable to moderate-income households, and 761 units affordable to above moderate-income households.
Table F6-4 Remaining Share of RHNA
Affordability Category RHNA Units Pending or Approved
(Percent of AMI) Allocation or under Construction Estimated ADUs Remaining RHNA Very Low 719 60 0 659 -- ··~------ - -------
Low 493 4 0 489
Moderate 566 41 0 525
Above Moderate 1,354 553 40 761
Total 3,132 658 40 2,434
F6-6
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F6.4 Methodology
City of Los Banos
Housing Resources and Site Inventory Analysis
F6.4. l Suitable Sites for Affordable Housing
State law requires that jurisdictions demonstrate in the Housing Element that the land inventory is adequate to accommodate that jurisdiction's share of the regional growth. State law has established "default" density standards for the purpose of estimating potential units by income range. In a suburban jurisdiction, a density standard of 20 or more units per acre (primarily for higher-density multi-family developments) would facilitate the development of housing in the lower-income category.
In addition to default density standards, the California Legislature established size requirements for parcels intended to support the development of lower-income units. Government Code Section 65583.2 establishes that sites between 0.5 and 10 acres in size which are zoned for residential development at greater than 20 units per acre are suitable for lower-income projects. Very small parcels, even when zoned for high densities, may not facilitate the scale of development required to access competitive funding resources. Conversely, typically lower-resource affordable housing developers may be unable to finance the scale of project necessitated by very large parcels. No standalone parcels smaller than 0.5 acres are assumed to accommodate lower-income units. The City assumed no more than 150 lower-income units on any individual site.
F6.5 Nonvacant Sites
Nonvacant sites included on the Site Inventory have comparable predevelopment characteristics to developed residential projects in the region. As discussed in Chapter 4, Regional Housing Resources, residential development in Merced County has occurred primarily on vacant sites and sites occupied by agriculture.
The Housing Element must analyze the extent to which existing uses may impede additional residential development. The Site Inventory accommodates approximately 92 percent of its lowerincome RHNA, 70 percent of its moderate-income RHNA, and 76 percent above moderate-income RHNA on vacant sites. As a result of insufficient available vacant land, the City identified the remaining 9 percent of its lower-income RHNA, 30 percent of its moderate-income RHNA, and 20 percent above moderate-income RHNA is proposed on sites currently used by agricultural uses.
F6.5.1 Redevelopment of Existing Uses
Of the 50 sites included in the City's Site Inventory, 47 are vacant and three are on sites with currently operational agricultural uses. These sites are currently zoned for low and medium density residential uses. These site are not under Williamson Act Contract and do not have any characteristics that would impede residential development. See Redevelopment Trends on Agriculture Sites, below.
F6.5.2 Market Demand
Demand for residential development of formerly agricultural land in the San Joaquin Valley is high, and driven by the critical need for more housing, necessity for less water-intensive land use, and the declining property values of agricultural lands due to constrained water resources. The Sustainable Groundwater Management Act (SGMA) has significantly impacted agricultural land use throughout California. Groundwater sustainability plans now require reductions in groundwater use, which 2024-2032 Housing Element F6-7
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Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) could result in the fallowing of between 500,000 and 900,000 acres of cropland in the San Joaquin Valley. The conversion of agricultural land to urban development, which primarily occurs around existing communities, results in a much less water intensive use of land than cropland. 1 Counties throughout the San Joaquin Valley have noticed decreasing property values for agricultural lands in response to limited water supply. 2 Between 2016 and 2018, 74,641 acres of farmland and grazing lands were converted to other uses in California, including 37,583 acres of land that were urbanized. 3 Approximately 44,942 acres were urbanized between 2014 and 2016. 4 In Merced County, 3,968 acres of land were urbanized between 2010 and 2020. 5 California Department of Conservation data from 1984 to 2022 shows land classified as farmland around Los Banos city limits has been converted to urban and built-up land, including land in East Los Banos where the nonvacant sites are located.
6 Trends illustrating local conversion of farmland to urban uses are further supported by recent development throughout Los Banos and the region, where properties previously used for agricultural purposes were redeveloped with housing, as detailed in Redevelopment Trends on Agriculture Sites, below. A significant portion of East Los Banos consists of land previously identified as Prime Farmland and Farmland of Local Importance that has been converted to urban and built-up land.
F6.5.3 Adequacy of Nonvacant Sites
In considering sites, the City identified agricultural land suitable for the development of a variety of housing types. The identified nonvacant site was selected for its high potential for redevelopment and is currently used for agricultural production. Of the 50 sites included in the Site Inventory, 57 are vacant and three are on currently operational agricultural land, Sites 35, 51 (R-1 zoned), and 51 (R-2 zoned. The City anticipates the existing agricultural operations would cease, consistent with recent redevelopment on sites with agricultural uses outlined in Redevelopment Trends on Agriculture Sites, below, and the development of these uses to accommodate low- and mediumdensity residential uses. In considering sites, the City has identified that agricultural land could facilitate the development of a variety of housing types throughout the city. Housing development on agricultural lands are discussed below. All identified nonvacant sites are on sites currently uses as agriculture and were selected for their redevelopment potential and higher probability of turnover, as seen in Table F6-5 were selected through average number of units and average acreage. Of the nonvacant sites in agricultural land, the average number of units is 165 and the average acreage is
21.25. ' Hanak, Ellen, et al. 2023. Managing Water and Farmland Transitions in the San Joaquin Valley. Public Policy Institute of California. https://www.ppic.org/publication/managing-water-and-farmland-transitions-in-the-san-joaquin-valley/ ' Willis, Natalie. 2024. SGMA Breakdown of the 2024 Trends in Agricultural Land and Lease Values. https:/ /www.valleyagvoice.com/asfmra-conference-unveils-insights-into-agricultural-land-values/ 3 California Department of Conservation. 2023. California Farmland Conversion Report 2016-2018. https://www. conservation. ca. gov/ d I rp/f mm p/Docu me nts/f mm p/ pu bs/2016-2018/FCR/FCR _ 16 l 8 _Report. pdf 4 California Department of Conservation. California Farm land Conversion Report 2014-2016. https://www.conservation.ca .gov /d I rp/fm m p/Pages/2012· 2014 _Farmland_ Conversion_ Report.aspx 5 California Department of Conservation. Merced County Important Farmland Data Availability, Historic Land Use Conversion. 2020. https:/ /www.conservation.ca .gov/ d I rp/fm m pf Pages/Merced .aspx 6 California Department of Conservation. 2022. California Important Farmland: 1984-2022. https://maps.conservation.ca.gov/dlrp/ciftimeseries/
F6-8
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City of Los Banos
Housing Resources and Site Inventory A nalysis
Table F6-5 Representative Nonvacant Sites
Achieved
Capacity Density
Site Address Description Size (Acres) (Units) (Units/ Acre) Marcy Springs This 20.00-acre parcel is currently utilized as agricultural 20.00 101 5.08 Rd {Site 35) land and is zoned low-density residential. With its current zoning designation, the site could accommodate 101
dwelling units, with an achieved density of 5.08 dwelling units per acre. Site 35 is adjacent to residential subdivisions and agricultural uses.
Development trends and pipeline projects with similar
predevelopment/proposed development characteristics:
• Villages at Stonecreek IX: previous use agriculture,
zoned low-density residential, similarly located
adjacent to residential subdivisions and agricultural
uses, parcel size 19.4 ac, achieved density 3.71 du/ac
• Villages at Stonecreek IV: previous use agriculture,
located in Los Banos, zoned low-density residential,
similarly located adjacent to adjacent to residential
subdivisions and agricultural uses, achieved density
5.10 du/ac
. Brookside Subdivision: previous use agriculture, zoned low-density residential, similarly located adjacent to
residential subdivisions and agricultural uses, achieved density 5.97 du/ac
• Sundance Village: previous use agriculture, zoned lowdensity residential, similarly located adjacent to residential subdivisions and agricultural uses, 21.63-ac parcel size, total units 97, achieved density 4.48 du/ac Place Rd {Site This 24.31-acre parcel currently utilized as agricultural land 24.31 123 5.08 51, R-1) and is zoned low-density residential. With its current zoning designation, the site could accommodate 123
dwelling units, with an achieved density of 5.08 dwelling units per acre. Site 51 is adjacent to residential subdivisions and agricultural uses.
Development trends and pipeline projects with similar
predevelopment/proposed development characteristics:
• Sundance Village: previous use agriculture, zoned lowdensity residential, similarly located adjacent to residential subdivisions and agricultural uses, parcel
size 21.63 ac, total units 97, achieved density 4.48
du/ac
• Villages at Stonecreek IX: previous use agriculture,
located in Los Banos, zoned low-density residential,
similarly located adjacent to residential subdivisions
and agricultural uses, parcel size 19.40 ac, achieved
density: 3. 71 du/ac
• Villages at Stonecreek IV: previous use agriculture,
located in Los Banos, zoned low-density residential,
similarly located near the city boundary and adjacent
to residential subdivisions and agricultural uses, parcel size 31.40 ac, total units 160, achieved density: 5.10
du/ac
----- -------
2024-2032 Housing Element F6-9
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Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) Achieved
Capacity Density
Site Address Description Size (Acres) (Units) (Units/ Acre) Place Rd (Site
51, R-2)
• Brookside Subdivision: previous use agriculture, zoned low-density residential, similarly located near the city boundary and adjacent to residential subdivisions and
agricultural uses, achieved density 5.97 du/ac
This 19.45-acre parcel is currently utilized as agricultural land and is zoned medium-density residential. With its
current zoning designation, the site could accommodate
272 dwelling units, with an achieved density of 14.00
dwelling units per acre. Site 51 is adjacent to adjacent to residential subdivisions and agricultural uses.
Development trends and pipeline projects with similar
predevelopment/proposed development characteristics:
• Westbrook: previous use agriculture, located in Los
Banos, similarly located near the city boundary and
adjacent residential subdivisions and agricultural uses • Regency Court Apartments: previous use agriculture,
similarly located adjacent to city limits, residential
subdivisions, and near agricultural uses, total units 180, achieved density 18.37 du/ac
• The Villas: previous use: agriculture, located in Los Banos, similarly located adjacent to residential
subdivisions and agricultural uses, total units 231
• Villages at Stonecreek IX and Villages at Stonecreek IV:
previous use agriculture, located in Los Banos, similarly located adjacent to residential subdivisions and
agricultural uses, parcel size 19.4 ac and 31.4 ac
• Village at Shannon Parkway Apartments: previous use
agriculture, similarly located adjacent to the city limits, residential subdivisions, and near agricultural uses,
total units: 216, achieved density 23.38 du/ac
Redevelopment Trends on Agriculture Sites
19.45 272 14.00
The Merced County and San Joaquin Valley region has primarily experienced residential redevelopment on sites previously utilized for agricultural purposes. Regional examples of projects that were previously and are currently being converted from operational agricultural uses to residential uses are listed on Table F6-6.
F6-10
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City of Los Banos
Housing Resources and Site Inventory Analysis
Table F6-6 Redevelopment Trends and Pipeline Projects on Sites with Operational Agriculture
Parcel Size Achieved Density
Jurisdiction Project Name (acres) Total Units (du/ac)
Tulare County
Woodlake Hillside Estates 28.5 75 2.2
Visalia Village at Shannon Pkwy. Apartments 9.24 216 23.38 Merced County
Dos Palos Stocking Street 9.83 44 4.48 -·--··---.. -- ·- ··---- Livingston Manzanita 51.33 213 4.15
Livingston Sundance Village 21.63 97 4.48
Los Banos The Villas 58.95 231 3.92
Los Banos Westbrook 37.81 162 4.28
Pipeline Projects
Los Banos Villages at Stonecreek IX 19.4 72 3.71 ... -·- · •- • . -·- ------ •• ---·---------- - --- ··---- Los Banos Villages at Stonecreek IV 31.4 160 5.1
Merced Regency Court Apartments 9.80 180 18.37 ,-.. -- -- -· -- · -. - --·- -~ -·- -~-~ ·-~· Porterville Brookside Subdivision 38.35 229 5.97 The three residentially zoned sites currently used for operational agricultural purposes show similar predevelopment uses to the sites summarized in Table F6-6, and the resulting example projects are similar to the anticipated development on Los Banos' inventory sites. The three nonvacant sites are of comparable size to many recent redevelopment and pipeline projects (including projects in Los Banos), have a similar number of total units in the project, and similar zoning. These sites range in size from 19.45 acres to 24.31 acres and can accommodate densities of 5.08 to 14 dwelling units per acre, comparable to redevelopment trends on sites with previous agricultural uses. Given these regional trends, the City does not anticipate operational agricultural uses to impede conversion of identified sites from agricultural land to residential use. In terms of proposed development density, Site 35, and Site 51 (R-1 zone), all 5.08 dwelling units per acre, are similar to Stocking Street in Dos Palos, Sundance Village in Livingston, and Villages at Stonecreek IV in Los Banos. Site 51 (R-2 zone) has similar density to Regency Court Apartments in the city of Merced. In addition, similar to redevelopment trends, these sites are adjacent to existing residential uses and other existing agricultural operations.
The three nonvacant sites are not under a Williamson Act Contract and there are no conditions that would impede residential development of these sites. The existing use of these sites are row crops, which is easily ceased, and it is easy to clear the land and repurpose it for development. Unlike agricultural processing or dairy uses, row crops do not typically require extensive infrastructure or investment. All three sites are located in prime location for residential development and are adjacent to existing multi-family uses and residential subdivisions. Given these redevelopment trends on active agricultural sites, the City does not anticipate existing operational agricultural uses to impede conversion from agricultural land to residential development on the three sites included in the Site Inventory.
2024-2032 Housing Element F6-11
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Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) F6.6 Development Trends
As discussed in detail in Chapter 4, Regional Housing Resources, the development characteristics in the region indicate that most of the recently developed residential projects, or projects that are planned to be developed, are on vacant land. Out of the 17 projects identified, 13 are single-family developments, and four are multi-family developments. Approximately 12 percent of these projects include affordable units.
The densities of these projects range from 1.64 to 51.34 dwelling units per acre due to the various zoning requirements in each jurisdiction. The average density of projects with affordable units is approximately 37 dwelling units per acre, and these projects typically achieved a density of 135 percent of the maximum density allowed by the zoning district.
Projects located in low-, medium-, and high-density residential zones typically achieved a density of 67, 60, and 84 percent, respectively, of the maximum density allowed by the zoning district. Overall, the average achieved density is 8.8 dwelling units per acre, which is low. This can be attributed to the predominance of single-family residential developments in the region.
Of the projects discussed in Chapter 4, Regional Housing Resources, two projects used to determine regional development trends are in Los Banos: Manzanita and Sundance Village. Both projects consist of market rate single fam ily units. These projects have an average density of approximately four units per acre with an average achieved density of 55 percent of the maximum density allowed by the zoning district, as shown in Table F6-7.
Table F6-7 Los Banos Development Trends
Total Zoning District Number of Units Percent Density
Project Name Units Acreage Density Zoning District Density (du/ac) Allowed Achieved Overland Court 70 4.68 14.96 Multi-family 30
Apartments {high density) ---
The Villas 231 58.95 3.92 Single-Family 18
(medium density)
Sunrise Ranch 197 43 4.58 Single-Family 6
(low density)
Westbrook 162 37.81 4.28 Single-Family 6
{low density)
Los Banos Average 6.94 ·--·----·--·-··- ·---- , ___ ,. ____ Regional Average 8.80
F6.6.1 Realistic Development Capacity
140.40
1061.10
258.00
226.86
50%
22%
76%
71%
55%
70%
To create a realistic development assumption, the City assumes that the development capacity on each site will be less than the full development capacity allowed by the parcel's zoning or land use designation. Sites do not always develop to their full capacity potential due to factors such as sitespecific conditions and development standards such as open space or parking requirements. To determine a realistic development achievement on the sites in the inventory, the City reviewed pipeline and recently developed projects in the region. On average, the pipeline projects in Los Banos, as shown in Table F6-2, achieved an average density of 88 percent of the maximum density allowed on the site based on the site's zoning and development standards. As discussed in Chapter 4, Regional Housing Resources, the average achieved density for projects collectively in the region is F6-12
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City of Lo s Banos
Housing Resources and Site Inventory Analysis
70 percent. Based on the local and regional trends, the City conservatively assumes the realistic capacity of each site would be 70 percent of the maximum density allowed under the applicable zoning or general plan designation.
The Site Inventory includes parcels in four residential zoning districts with varying allowable densities and development standards. The City's Zoning Code classifies each site into the following zones:
■ Low Density Residential (R-1): This district allows for single-family residential uses with one unit per 6,000 square feet of lot area, equal to a residential density of 7.26 dwelling units per acre. ■ Medium Density Residential (R-2): This district allows for triplexes, duplexes, attached or detached single-family dwellings residential uses with one unit per 4,000 square feet of lot area, equal to a maximum residential density of 10.89 dwelling units per acre. ■ High Density Residential (R-3): This district allows for multi-family residential uses, including apartments and triplexes with one unit per 1,500 square feet of lot area, equal to a maximum residential density of 30 dwelling units per acre.
■ Mixed-Use Residential (R-C): This district allows for mixed-use residential uses with a maximum residential density of 30 units per acre.
The distribution of income levels among sites was determined by zone, district, and parcel size. It is typical for units in single-family zones to be affordable only to above moderate-income households.
Within multi-family zones that have a higher density, units are more likely to be affordable to lowerand moderate-income households.
Table F6-8 details the realistic capacity of available sites by zoning district.
Table F6-8 Realistic Capacity of Sites by Zoning District Above
Lower- Moderate- ModerateTotal Maximum Realistic Income Income Income Zoning District Acreage Density Density Units Units Units Total Units R-1
R-2
R-3
R·C
Total
131.43
87.81 36.40
9.08 316.31
7.26 5.08
20 14
30 21
0 572
608 --------
30 15 133
1,313
0 520
32 0
552
676
156
120
0 940
F6.6.2 Likelihood of 100 Percent Nonresidential Uses on Sites The City identifies 133 units on five sites in the R-C zone, which allows for 100 percent 676
1,248
760
133
2,805
nonresidential uses. In accordance with State law, the housing element must consider the likelihood of nonresidential development on sites that allow for nonresidential uses. To determine likelihood, the City reviewed development that has occurred in nonresidential zones within the last five years.
During this time period, there have not been any residential developments constructed in the R-C zone. Elsewhere in the San Joaquin Valley, residential uses occurred on approximately 18 percent of projects in mixed-use zones in the city of Visalia between 2019 and 2022. During the 5th cycle in Fresno County, the City of Reedley saw development on 16 mixed-use sites included in its Site Inventory. Of these sites, three were developed with residential use. As a result, regional trends indicate that residential uses occur in nonresidential zones on less than one quarter of projects. 2024-2032 Housing Element F6-l 3
474
Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) The Site Inventory considers potential nonresidential development in the R-C zone by assuming conservative realistic densities compared to past and current regional trends and maintaining an adequate buffer of units for all RHNA income categories. All units on R-C sites were allocated to the lower-income category. Additionally, the inventory conservatively assumes a realistic allowable density of 15 dwelling units per acre in the R-C zone, 50 percent of the maximum density allowed in the R-C zone.
Table F6-9 shows regional residential projects within the last five years (i.e. 2019 through 2024) that have occurred in zones that allow for 100 percent nonresidential uses. As shown on the table, residential projects have generally averaged much higher densities (26 units per acre) than what is assumed on in the Site Inventory (15 units per acre). Residential projects in the region also generally achieved nearly 100 percent of their maximum allowable capacity for each zone. Projects that are similar in size, density, and affordability to the R-C zoned sites include Andrade Co, Corvina Duplexes, and the Reedley project. The majority of the other projects achieve higher densities on parcels of similar size. Given these trends, the City believes that the conservative assumptions on RC sites account for the lower frequency of residential projects developing regionally in mixed-use zones.
Table F6-9 Residential Projects in Zones that allow 100 percent Nonresidential Uses Precent of
Dwelling Units Max Income
Jurisdiction Project Name Acres Total Units Per Acre Capacity Category Merced County
Merced City Childs Court 4.01 119 29.68 No Max Very Low, Apartments Density Low ·- --~---·-·--·-·
Merced City 3136 E Gerard Ave 9.44 200 21.19 No Max Above Density Moderate --·- -----··
Merced City Andrade Co. 1.33 24 18.05 No Max Above
Density Moderate
Merced County SPR20-006 0.18 8 44.44 135% Low
Livingston Tierrasanta Villas 3.98 80 20.10 No Max Very Low, Density Low
Tulare County
Visalia Corvina Duplexes 0.5 8 16.00 46% Low
Visalia Lofts at Fort Visalia 1.46 80 54.79 No Max Very Low, Density Low
Visalia Duplex at Murray & 0.19 2 10.53 No Max Low
Encina Density ---- ··--·---·-·--·-
Visalia Rancho Colegio 3.47 80 23.05 66% Very Low,
Affordable Housing Low ---
Visalia Camino Del Rio 3.12 94 30.13 86% Very Low
Visalia Senior Housing at N 2.06 70 33.98 97% Very Low
Highland
Visalia Caldwell/Lovers 11.41 342 29.97 86% Very Low,
Apartments Low -- -- -- ----···•····· ·- · ••
Visalia Demaree/Houston 7.62 243 31.89 91% Very Low,
Apartments Low -- --
F6-14
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City of Los Banos
Housing Resources and Site Inventory Analysis
Precent of
Dwelling Units Max Income
Jurisdiction Project Name Acres Total Units Per Acre Capacity Category Visalia Lovers Tulare 2.78
Apartments
Visalia Cameron Creek 4.81
Garden Units ·- ·---
Visalia S Stonebrook St & 11.77
W Cameron Ave
Fresno County
Reedley Paseo 55 1.76 --·-·--····-----· ··-
Reedley Reedley I Mixed Use 4.25
Reedley Kashian Mixed Use: 2.11
Workforce Housing
Kingsburg Stone Plaza Mixed 0.28
Use Project
_____ ., ______
Average 3.82
32 11.51
30 6.24
276 23.45
55 31.25
80 18.82 - 70 33.18
10 35.71
95.15 26.20
No Max
Density
18%
156%
108%
----
127%
----·-···-·
115%
145%
98%
low
Moderate
Moderate
Moderate -
low
Extremely
low
Above
Moderate
Although residential development is not the prevailing trend in mixed-use zones, the City anticipates that the selected sites have high potential of residential development. All sites included in the R-C zone are vacant and do not have existing uses that would impede development. Additionally, sites are generally located along the city's main arterials (e.g., H Street and 7th Steet) and are located in a pedestrian-friendly environment with a close proximity to goods, services, and transportation.
Under Program 7, the City commits to expand affordable housing options across all income categories through contacting non-profit and private developers to facilitate housing production and pursue funding opportunities. The City will continue to evaluate all future mixed-use development to determine how often development has a residential component edits look good and make adjustments, as necessary, to maintain adequate sites throughout the planning period.
F6.7 Large Sites for Lower-Income Units
The Site Inventory identifies three large sites (larger than 10 acres) that are expected to offer affordable housing opportunities for lower-income households. Two of these sites are split-zoned to allow a mix of low- and medium-density residential. The third site is fully zoned for high-density residential use. As discussed in Chapter 4, Regional Housing Resources, Merced County shows strong trends of residential development on large sites. However, these trends support market-rate development, while affordable units have typically occurred on smaller parcels. As a result, the City conservatively assumed no more than 150 lower-income units on each site, which is consistent with typical state and federally funded developments. Additionally, the realistic density assumptions of these sites range from 50 percent to 60 percent of the allowable maximum density, which is lower than the 70 percent standard used for other sites with appropriate parcel sizes. The four large parcels with lower-income units are shown on Table F6-10. These sites, specifically the three splitzoned sites, are fairly large and would likely need to be subdivided into appropriate sizes (e.g., 1-10 acres) to accommodate developments similar to typical state and federally funded developments (e.g., 50 to 150 units). These sites assume a mix of incomes to support a variety of housing types. 2024-2032 Housing Element F6-15
476
Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) Table F6-10 Large Sites with Lower-Income Units
Above
Lower- Moderate Moderate Total
Address APN Zone Acres Existing Use Income -Income -Income Units Westminster 424010005 R-1/ R-2 57.00 Vacant 150 277 144 571 Wy
Place Rd 424010006 R-1/ R-2 43.76 Agricultural 105 167 123 395 - ------ -· --- - 1445 Ward 083140021 R-3 11.00 Vacant 150 0 0 150
Rd
A summary of recent developments on large sites in the San Joaquin Valley is listed on Table F6-ll.
Market-rate projects on large sites range from 12 to 58 acres and average approximately 188 units per site. Alternatively, projects with deed-restricted units range from 10 to 120 acres and average approximately 291 units per site. Projects like the Vineyards (158 deed-restricted units on 38.9 acres) and West Creed Village (120 deed-restricted units and 135 market-rate units on 120 acres) best represent the three larger split-zoned sites. In addition, the Ben Maddox-K property (292 lower-income units on 10.8 acres) and the Lovers-Caldwell property (342 lower-income units on
11.4 acres) in Tulare County demonstrate that large sites can support large numbers of deedrestricted units.
While the site at 1445 Ward Road exceeds 10 acres (site is approximately 11 acres), the total capacity is reasonably similar to typically developed affordable housing and is consistent with some larger affordable developments (i.e., greater than 150 units) in the San Joaquin Valley. For example, the Ben Maddox-K property (292 lower-income units on 10.8 acres) and the Lovers-Caldwell property (342 lower-income units on 11.4 acres) are similar size to 1445 Ward Road yet yield significantly more units than what is assumed on the site. Additionally, Avalon Commons is approximately seven acres larger yet yields 45 units less than the assumed capacity for 1445 Ward Road. Given the wide range of development trends on large sites in the region, the City anticipates that the assumed capacities on the four large sites are realistic.
Table F6-11 Summary of Recent Developments on Large Sites in San Joaquin Valley Deed-Restricted
Project Acres Units Market Rate Units Total Units
Merced County
Bell Crossing 40.43 0 188 188
Nebela Drive 28.34 0 127 127
Sandstone Way 30.85 0 122 122
Manzanita 51.33 0 213 213
Sundance Village 21.63 0 97 97 - · ----- -·- ·
The Villas 58.95 0 231 231
Westbrook 37.81 0 162 162 ___ ,. _____ .. -----··--
Stoneridge South 29.75 0 160 160 ---· --·------··"·-
Yosemite Village Apartments 11.98 0 220 220
Bruno Apartments 10.73 0 164 164 -----·---------------·-····-·-·----·--. ----- ---··----• Maracor Development, Inc. 13.50 0 396 396
Yosemite Crossing 21.50 0 96 96
F6-16
477
City of Los Banos
Housing Resources and Site Inventory Analysis
Deed-Restricted
Project Acres Units Market Rate Units Total Units
Linc Housing 36.00 54 0 54 - ·-----
Merced Crossing Annexation (Pending) 28.60 65 455 520 ------ Rogina Annexation 147.40 50 350 400
M Street Annexation 37.00 25 175 200 - ------- ····- · ---.•• University Vista Annexation 290.60 44 306 350 ..... _ ---------·- -·-- Virginia Smith Trust (VST) Specific Plan 654.00 325 2,215 2,540 (Merced County Project) ---------
Average 86.13 31.28 315.39 347
Tulare County
the Ben Maddox-K 10.80 292 3 295
Lovers-Ca I dwell 11.40 342 4 346
Cambria 12.80 0 144 144 - ·-·---·---·--··
Hillside Estates 28.50 0 75 75
Average 15.88 159 57 215
Fresno County
Fancher Creek Town Center 91.00 420 240 660
The Vineyards 38.90 158 0 158
West Creek Village 120.0 120 135 255 . ·-·•-···--·--·--- Pare Grove Commons 24.00 213 2 215 ---· ··-- --···-··-··--·· --------·- Campus Pointe 27.50 0 550 550
Avalon Commons 17.80 104 1 105
Average 53.20 169 155 324
Regional Average 35.49 109 125 234
To facilitate and incentivize affordability units on these large sites, the City will implement Program 2 through the following actions:
■ Provide technical assistance, incentives, and strategies as appropriate to facilitate development of affordable housing, including parceling at appropriate sizes or other site planning tools such as clustered development, allowing flexibility for the transferring of densities within the property.
■ Promote the potential subdivision of large sites into multiple parcels for future development through technical assistance, incentives, and strategies during the development phases and when applications are submitted to the City for the identified parcels. ■ Annually meet with property owners and developers to encourage the development of mixedincome housing with a mix of unit sizes, types, and prices. ■ Promote the development of large sites at the densities and affordability levels identified within the housing element.
■ Allow the development in phases within eight years of the Housing Element planning period. ■ Offer expedited processing and fee deferrals, reductions, or waivers for affordable units in development on large sites identified in the Site Inventory. 2024-2032 Housing Element F6-l 7
478
Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) F6.7. l Subdivision Processing for Large Sites
Large parcels may be subdivided by utilizing the City's Tentative Subdivision Map entitlement process. The review process requires a complete application submitted to the Community & Economic Development Department. All tentative subdivision maps with four or fewer lots are reviewed and approved by the Planning Commission. Tentative subdivision maps with five or more lots are reviewed by the Project Review Board prior to the submission of the map to the Planning Commission. Within 30 days after the Tentative Map has been filed with the Planning Department, the Project Review Board meets to review the map's completeness and accuracy, the suitabil ity of the land for purposes of subdivision, conformity of the overall design of the subdivision to the Municipal Code, other City plans, the provisions for and adequacy of street improvements and utilities, and provisions for public areas and services.
The Project Review Board may deem it advisable to recommend additional improvements, easements, dedications, etc., to be included, in which case the subdivider is informed of the nature of the recommendations following the Project Review Board meeting. The Planning Commission shall conduct a public hearing on the Tentative Map. The City Council may overrule or modify any ruling or determination of the Planning Commission in regard to a tentative map and may make conditional exceptions if special circumstances pertaining to the property involved justify a variance.
Program 2 will promote and incentivize the subdivision of large sites to create parcels at appropriate sizes to support affordable housing projects. Incentives would potentially include expedited approval of lot splits or creation of new parcels; waiving of the public hearing requirement related to parcel maps; waiving of the public hearing requirement related to approval of large multifamily uses (provided the project is affordable by deed-restriction), additional density bonus, lot coverage, or allowable height; and fee waivers, reductions, or deferral. By the end of 2027, if development of housing affordable to lower-income households (as assumed in the inventory) is not feasible on these large sites or sites are not parceled at appropriate sizes (e.g., 1-10 acres), within six months (by July 2028) the City will identify additional incentives and planning tools or alternative strategies if necessary to ensure adequate capacity at appropriate sizes for the RHNA.
F6.8 Site Inventory
The Site Inventory lists all sites or parcels that are intended to accommodate residential development in fulfillment of Los Banos' RHNA. The inventory is broken up into four distinct geographic areas of the city:
• North Los Banos
• Central Los Banos
• South Los Banos
• East Los Banos
Sites included in the inventory are listed in Table F6-12 and Table F6-13. The table of sites includes the following items in the column heading order from left to right:
• Map Identification number (a unique reference number assigned by the city to reference the parcel on each map)
• Address or nearest cross street
• APN (Government Code Section 65583.2(b)l))
F6-18
479
City of Los Banos
Housing Resources and Site Inventory Analysis
■ Size in acres (Government Code Section 65583.2(b)(2)) ■ General Plan land use designation (Government Code Section 65583.2(b)(2)) ■ Zoning designation (Government Code Section 65583.2(b)(2)) ■ Description of existing uses (Government Code Section 65583.2(b)(3)) ■ Minimum allowable density by zone
■ Maximum allowable density by zone
■ Inventoried income level (units appropriate for lower-, moderate-, above moderate-income households) (Government Code Section 65583.2(c))
■ Total number of units realistically assumed on the site ■ Opportunity category as designated by the California Tax Credit Allocation Committee (TCAC) 7 The current zoning of the selected sites is shown geographically in Figure F6-2. There are no known barriers outside of financing that would preclude development of these parcels in the planning period.
These sites are also assessed by TCAC Opportunity area which range from areas of High Segregation and Poverty to the Highest Resource areas. The more positive economic, educational, and health outcomes for low-income families, particularly long-term outcomes for children, the higher the score. The scores in each CDP are listed below and a breakdown of each opportunity category is discussed in Chapter FS: Affirmatively Furthering Fair Housing.
North Los Banos
North Los Banos is bounded by city boundaries to the north and west, West Willmott to the south, and North Mercy Springs Road to the east. This area primarily consists of low-density residential zones. North Los Banos is in an area of minimal flood hazard8. This neighborhood can accommodate three sites and has an assumed capacity of 94 lower-income units and 33 above moderate-income units. All sites identified in this area are currently vacant. All sites are in areas of the city that have a TCAC designation of High Resource or Moderate Resource.
Central Los Banos
Central Los Banos is bounded by West Willmott Avenue to the north, West Pacheco Boulevard to the south, North Mercy Springs Road to the east, and city boundaries to the west. This area primarily consists of commercial, industrial, and medium density residential zones. Downtown Los Banos is in an area of minimal flood hazard. This neighborhood can accommodate 18 sites with an assumed capacity of 151 lower-income units, 49 moderate-income units, and two above moderateincome units. All sites identified in this area are currently vacant. All sites are in an area of the city that has a TCAC designation of High Segregation and Poverty. 7 Resource levels designated by TCAC/HCD denote access to economic and educational opportunities such as low-cost transportation, jobs, and high-quality schools and the quality of environmental factors in the area such as proximity to hazards and air quality. TCAC has a composite opportunity score for each census tract. Source: https://www.treasurer.ca.gov/ctcac/opportunity/2023/methodology.pdf • The city has the Flood Hazard designation of "X". Zone Xis the area determined to be outside the 500-year flood and protected by levee from 100- year flood.
2024-2032 Housing Element F6-l 9
480
Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) South Los Banos
South Los Banos is bounded by West Pacheco Boulevard to the north, city boundaries to the south and west, and North Mercy Springs Road to the east. This neighborhood primarily consists of lowdensity residential and commercial zones. South Los Banos is in an area of minimal flood hazard.
South Los Banos can accommodate 12 sites with an assumed capacity of 139 lower-income units, 59 moderate-income units, and 294 above moderate-income units. All sites identified in this area are currently vacant. All sites are in areas of the city that have a TCAC designation of High or Moderate Resource.
East Los Banos
East Los Banos is bounded by city boundaries to the north, squth and east, El Monte Way to the north, and North Mercy Springs Road to the east. This neighborhood primarily consists of low density residential and commercial zones. East Los Banos is in an area of minimal flood hazard. East Los Banos can accommodate 17 sites with an assumed capacity of 930 lower-income units, 444 moderate-income units, and 611 above moderate-income units. All sites identified in this area are currently vacant or on agricultural land. All sites are in areas of the city that have a TCAC designation of Moderate Resource.
F6-20
481
Figure F6-2 Los Banos Site Inventory
IL .JI City Boundary
~ ~ ~I Neighborhoods
Site Inventory by Zoning
R-C
"--""'
Imagery prov;ded by Esri and its ffcensors (} 2025.
Additional data provided by County of Merced, 1013.
2023-2031 Housing Element
~®r
s--11:
~~ii
North ,
-~ l . :
'7ez,Q, _... - - _ ,-_ - f ~: 6....., 1:-s :
rt ~ "@~ ~----1 _ 9 -10 "<Iv I -·
Central Los J,._2 3 -/-4 --44 ,Ta's:
' Banos 15--f '--~21 13 ·-,-
11 48 f U' 19 ~ 12 I &l?r-> 16 22 il<>- "'4 I
(§ - 11-t 1· ~., .,. .... .....141 Wl:!Ell'.l 20
-4>~ ~- 18 4'~ I 40-I D M I
lllflj 30 --- ~ _ - - - - -=·-·- -----·-;··~ - ------ -~=32 ~'n..!1..---~ - 31 •• ' -1' ' -- --:;, - .. -· ·- '-- U ~ 11.....11. • 39· f- 34 .-, - -- ·-. "'~ 33 • ,.J ._JL:..:
!l5
South Los Banos 27
~
j
~
~
I
€1
I
®
East Los
Banos
~ 41
0 1,650
Feet
Los Banos
Site Inventory
42 ~ -
I
.,.
46 3,300 N
A
6-21
482
Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) Table F6-12 Los Banos Site Inventory- Opportunity Sites Map
ID
Site Address
or Street
North Los Banos
5 East B St
6 7th St
8 N Mercey
Springs Rd
Total
Central Los Banos
2 F St
3 708 D St
4 711 C St
7 First St
9 208 G St
10 F St
F6-22
APN
025284035
082420047
082030051
025052025
025081010
025081014
025042001
025051014
025052024
Acres Land Use Zoning
1.07 Medium R-2
Density
0.75 Medium R-2
Density
4.91 High Density R-3
6.73 0.26 Medium R-2
Density
0.17 Medium R-2
Density
0.26 Medium R-2
Density
0.58 Medium R-2
Density
0.17 Medium R-2
Density
0.26 Medium R-2
Density
Current
Use
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Vacant
Minimum Maximum
Density Density
0 20
0 20
0 30
0 20
0 20
0 20
0 20
0 20
0 20
Above
Lower- Moderate- ModerateIncome
Capacity
14 10
70 94
0 0
0 0
0 0
Income
Capacity
0 0
0 0
3 2
3 8
2 3
Income
Capacity
0 0
33 33
0 0
0 0
0 0
TCAC
Total Opportunity
Capacity Category
14 High
Segregation
and Poverty
10 Moderate
Resource
103 Moderate
Resource
127
3 High
Segregation
and Poverty
2 High
Segregation
and Poverty
3 High
Segregation
and Poverty
8 High
Segregation
and Poverty
2 High
Segregation
and Poverty
3 High
Segregation
and Poverty
483
Map
ID
11 12
13 14
15 16
17 18
19 20
Site Address
or Street
305 W J St
860 F ST
860 F ST
1133 F ST
Raven Ln
Raven Ln
West I St
H St
G St
G St
APN
027081024
025102006
025102007
25152005
027060004
027060007
027130002
025114015
025114011
025114012
2024-2032 Housing Element
Acres Land Use
0.48 Medium
Density
0.13 Medium
Density
0.13 Medium
Density
0.90 High Density
0.37 High Density
0.32 High Density
0.32 High Density
0.46 Mixed Use
0.92 Mixed Use
0.92 Mixed Use
Current
Zoning Use
R-2 Vacant
R-2 Vacant
R-2 Vacant
R-3 Vacant
R-3 Vacant
R-3 Vacant
R-3 Vacant
R-C Vacant
R-C Vacant
R-C Vacant
Minimum Maximum
Density Density
0 20
0 20
0 20
0 30
0 30
0 30
0 30
0 30
0 30
0 30
City of Los Banos
Housing Resources and Site Inventory Analysis
Above
Lower- Moderate- ModerateIncome
Capacity
0 0
0 18
0 0
0 6
13 13
Income
Capacity
6 0
0 0
8 7
7 0
0 0
Income
Capacity
0 1
1 0
0 0
0 0
0 0
TCAC
Total Opportunity
Capacity Category
6 High
Segregation
and Poverty
1 High
Segregation
and Poverty
1 High
Segregation
and Poverty
18 High
Segregation
and Poverty
8 High
Segregation
and Poverty
7 High
Segregation
and Poverty
7 High
Segregation
and Poverty - 6 High
Segregation
and Poverty
13 High
Segregation
and Poverty
13 High
Segregation
and Poverty
F6-23
484
Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032} Map
ID
21 22
Total
Site Address
or Street
Henry Miller
Plaza
H St
APN
025072036
025054006
South Los Banos
24 Nettle Wy 430010024
25 Prairie Springs 430010027
Dr
26 Dock Ave 430060005
28 Pioneer Rd 430060017
29 Prairie Springs 430103002
Dr
30 Souza Rd 027171038
31 Souza Rd 027171040
32 Souza Rd 027171005
33 Souza Rd 027171006
34 Souza Rd 027171044
35 Souza Rd 027171045
F6-24
Acres
4.77 2.02
13.42 3.43
16.32 7.70
16.17 7.02
0.22 0.29
0.24 0.29
0.25 0.44
Land Use
Mixed Use
Mixed Use
Low Density
Low Density
Low Density
low Density
Medium
Density
High Density
High Density
High Density
High Density
High Density
High Density
Current
Zoning Use
R-C Vacant
R-C Vacant
R-1 Vacant
R-1 Vacant
R-1 Vacant
R-1 Vacant
R-2 Vacant
R-3 Vacant
R-3 Vacant
R-3 Vacant
R-3 Vacant
R-3 Vacant
R-3 Vacant
Minimum Maximum
Density Density
0 30
0 30
0 7.26
0 7.26
0 7.26
0 7.26
0 20
0 30
0 30
0 30
0 30
0 30
---
0 30
-----
Above
Lower- Moderate- ModerateIncome
Capacity
71 30
151
0 0
0 0
0 0
0 0
0 0
0 Income
Capacity
0 0
49 0
0 0
0 49
4 6
0 0
0 0
Income
Capacity
0 0
2 17
82 39
82 49
0 0
5 6
5 ·----9
TCAC
Total Opportunity
Capacity Category
71 High
Segregation
and Poverty
30 High
Segregation
and Poverty
202
17 High
Resource
82 High
Resource
39 High
Resource
82 High
Resource
98 High
Resource
4 High
Resource
6 High
Resource
5 High
Resource - -·~··-- ----- -·
6 High
Resource
5 High
Resource
·-··-- -
9 High
Resource
485
Map
ID
36 Total
Site Address
or Street
Highway 152
APN
430010062
East Los Banos
1 Westminster 424010005
Wy
1 Westminster 424010005**
Wy
23 Marcy Springs 083100019
Rd -- 27 Mercey 083100009
Springs Rd
37 Gilbert 083100084*
Gonzalez Jr Dr
38 Mercey 083130042
Springs Rd --
39 Place Rd 424010006
39 Place Rd 424010006*
----
40 Canal Farm Ln 428150001
--
41 San Luis St 428160001
42 Snow Goose 084010094
Dr
43 1445 Ward Rd 083140021 *
2024-2032 Housing Element
Acres Land Use
6.60 High Density
58.97 28.50 Low Density
28.50 Medium
Density
20.00 Low Density
1.00 Low Density
8.48 High Density
14.00 Low Density
- 24.31 *** Low Density
19.45**** Medium
Density
1.77 Medium
Density
5.24 Medium
Density
2.04 Medium
Density -
11.00 Medium
Density
Current
Zoning Use
R-3 Vacant
R-1 Vacant
R-2 Vacant
R-1 Agriculture
R-1 Vacant
R-3 Vacant
R-2 Vacant
R-1 Agriculture
R-2 Agriculture
Minimum Maximum
Density Density
0 30
0 7.26
0 20
0 7.26
0 7.26
0 30
0 7.26
0 7.26
0 20
City of Los Banos
Housing Resources and Site Inventory Analysis
Above
Lower- Moderate- ModerateIncome
Capacity
138
138
0 150
0 0
150
0 0
105
Income
Capacity
0 59
0 277
0 5
0 0
0 167
Income
Capacity
0 294
144
0 101
5 27
71 123
0 TCAC
Total Opportunity
Capacity Category
138 High
Resource
491
144 Moderate
Resource
427 Moderate
Resource
101 Moderate
Resource
5 Moderate
Resource
177 Moderate
Resource
71 Moderate
Resource • ·-· ---·-- ---------
123 Moderate
Resource
272 Moderate
Resource --·--
R-2 Vacant 0 20 24 0 0 24 Moderate
Resource ----- ---- -·- --- --
R-2 Vacant 0 20 0 0 73 73 Moderate
Resource
- R-2 Vacant 0 20 0 0 28 28 Moderate
Resource - -·---· ---- ---
R-3 Vacant 0 20 150 0 0 150 Moderate
Resource
F6-25
486
Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) Map
ID
Site Address
or Street APN Acres Land Use
Current
Zoning Use
44 Mercey 428030006 1.00 Medium R-2 Vacant
Springs Rd Density
45 Willmott Road 428310011 7.54 Medium R-2 Vacant
Density
46 Ward St 084020038 2.61 High Density R-3 Vacant
47 Overland Ave 424120034 4.70 High Density R-3 Vacant
48 San Luis St 428121012 5.48 High Density R-3 Vacant
Total 185.61
Los Banos Total 264.73
* Up to 150 units are being used for lower-income.
** This parcel is split zoned and approximately 28.50 acres are R-2. 63.33 acres total. *** This parcel is split zoned and approximately 24.31 acres are R-1. 48.62 acres total. **** This parcel is split zoned and approximately 19.45 acres are R-2. 48.62 acres total.
F6-26
Minimum Maximum
Density Density
0 20
0 20
0 30
0 30
0 30
Above
Lower- Moderate- ModerateIncome
Capacity
14 105
54 98
80 930
1,313
Income
Capacity
0 0
0 0
0 444
552
Income
Capacity
0 0
0 0
35 611
940
TCAC
Total Opportunity
Capacity Category
14 Moderate
Resource
105 Moderate
Resource
54 Moderate
Resource
98 Moderate
Resource
115 Moderate
Resource
1,985
2,805
487
City of Los Banos
Housing Resources and Site Inventory Analysis
F6.8. l Sites Used in Previous Planning Periods
In accordance with Government Code Section 65583, vacant parcels from both the 4th and 5th RHNA cycles and non-vacant parcels from the 5th Cycle may be reused in this Housing Element to accommodate lower-income housing, and must allow residential use by right for housing projects that have at least 20 percent of the units set aside as affordable for lower-income households (i.e., can be approved administratively without requiring Planning Commission or City Council approval).
A total of 13 sites included in the Site Inventory are subject to this by-right requirement, as shown on Table F6-13.
Table F6-13 Sites Used in Previous Planning Periods
Address APN Acres Land Use Zoning Existing Use Total Units Westminster Wy 424010005 28.5 Low Density R-1 Vacant 144 Place Rd 424010006 24.31 Low Density R-1 Agriculture 123 Place Rd 424010006 19.45 Medium Density R-2 Agriculture 272 Canal Farm Ln 428150001 1.77 Medium Density R-2 Vacant 24 Mercey Springs Rd 428030006 1 Medium Density R-2 Vacant 14 7th St 82420047 0.75 Medium Density R-2 Vacant 10
Westminster Wy 424010005 28.5 Medium Density R-2 Vacant 399 Gilbert Gonzalez Jr Dr 83100084 8.48 High Density R-3 Vacant 177 G St 25114011 0.92 Mixed Use R-C Vacant 13
G St 25114012 0.92 Mixed Use R-C Vacant 13
Henry Miller Plaza 25072036 4.77 Mixed Use R-C Vacant 71 H St 25054006 2.02 Mixed Use R-C Vacant 30
San Luis St 428121012 5.48 High Density R-3 Vacant 115
Total 126.87 1,405
F6.8.2 Adequacy of Residential Site Inventory in Meeting RHNA The Site Inventory identifies 1,313 lower-income units, 522 moderate-income units, and 940 above moderate-income units on 50 sites. In accordance with HCD's default density and size requirements, no sites smaller than one-half acre in size are used to accommodate lower-income housing.
Of the identified sites, three are located on land currently occupied by agriculture, while all the other sites are vacant. Since the land is currently zoned for residential uses, the existing agricultural uses are not subject to the Williamson Act. Regional trends indicate a high likelihood of redevelopment of sites with agricultural uses to residential development.
The Site Inventory includes a surplus of 165 lower-income units, giving the City a 14 percent buffer for this income category above the RHNA requirement. The summary of the residential Site Inventory is presented by neighborhood in Table F6-14.
2024-2032 Housing Element F6-27
488
Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) Table F6-14 Adequacy of Residential Site Inventory
Above
Lower-Income Moderate-Income Moderate-Income Total
City's Share of RHNA 1,212 566 1,354 3,132 ---- -· ------ - - ---- Planned and Approved Units 64 41 443 658 ----------- - ---· ADUs Anticipated 0 0 40 40
Remaining RHNA 1,148 525 761 2,434 ·-·--··-··--··-···· -----------· --···· ··- ·--------· ····-··--···-·----··-• --····"" Opportunity Sites (North Los Banos) 94 0 33 127 ---------- ---·- Opportunity Sites (Central Los Banos) 151 49 2 202
Opportunity Sites (South Los Banos) 138 59 294 491
Opportunity Sites (East Los Banos) 930 444 611 1,985
Total Units on Sites 1,313 552 940 2,805
Total Unit Surplus 165 27 179 371 --- --- Percent Buffer over RHNA 14% 5% 14% 12% F6.9 Availability of Infrastructure and Services
The City's Public Works Department is responsible for the City's water system, wastewater system, storm drain system, parks system, storm drainage system, street system, landscaped areas, municipal buildings and City vehicles and heavy equipment. As such, the city will ensure adequate capacity of all infrastructure and utilities to accommodate the housing growth discussed in this housing element. All sites included in the inventory have existing and available infrastructure that can support residential development. Within one week of adoption, City will provide a copy of the adopted 2024-2032 Housing Element to the City's Public Works Department Division, pursuant to Government Code Section 65589.7. All services in the City are sufficient to accommodate the number of units allocated by the RHNA.
F6.9.1 Wastewater System
The City of Los Banos' wastewater treatment facility (WWTF) has an average dry weather flow (ADWF) capacity of 4.9 million gallons per day (MGD) and a peak wet weather flow (PWWF) of 12 MGD. The City's average daily load is 3.55 MGD, and its peak daily load is 6.035 MGD. The City's current capacity of their WWTF meets the City's average and peak daily flows.
The City's sanitary sewer collection system consists of sewer pipelines ranging from four to 30 inches in diameter. The city-wide peak daily load was 6.035 MGD, which results in a treatment capacity deficit of 1.135 MGD. However, the City's sanitary sewer collection system has additional capacity to accommodate more loading in the growth areas of the system.
A report conducted by MKN & Associates for the Merced County Association of Governments 9 determined that the sewer collection system can accommodate approximately 5,252 additional housing units if growth occurs uniformly in all projected growth areas. This exceeds the RHNA requirement of 3,132. Therefore, the City's existing wastewater treatment system is adequate to accommodate RHNA requirements.
9 Merced County Infrastructure Capacity Assessment, June 2023 F6-28
-
489
F6.9.2 Potable Water System
City of Los Banos
Housing Resources and Site Inventory Analysis
Domestic water in the Los Banos area is provided by the City of Los Banos. The Public Works Department is responsible for maintaining the existing wells and distribution system. The typical residential demand is approximately 161 gallons per day per person, according to the City's Master Plan for Water Distribution System, dated 2008 and amended in 2010. Growth of the system to serve new development will require continued looping of lines and expansion of fire flow reserve capacities. Additional water wells and storage facilities have been planned for in the City of Los Banos 2008 Master Plan. It is anticipated that the City's existing water supply will be able to meet the demands of the City's RHNA.
F6.9.3 Storm Water and Drainage
Storm water drainage is accomplished in the city through a system of storm water collection facilities that ultimately discharge into a number of canals owned and operated by irrigation or water districts. Although the City of Los Banos Department of Public Works is responsible for implementing the Drainage Master Plan and maintaining the system, drainage maintenance is not an enterprise function of the city. The City's stormwater system has sufficient capacity to serve new residential development necessary to fulfill the City's RHNA.
F6.9.4 Dry Utilities
Dry utilities are defined as electricity, natural gas, cable, and telephone services. In Los Banos, each dry utility has one provider: Pacific Gas and Electric (PG&E) provides natural gas and electricity services, and AT&T provides telecom services. The City does not anticipate any issues with connecting these utilities to future residential development sites during the planning period.
F6. 10 Environmental Considerations
As noted in Chapter F4, Housing Constraints, environmental constraints to housing development in Los Banos include risk of earthquakes and fire. The sites included in the Site Inventory are all located outside of the identified flood zones.
A city's environmental setting and characteristics can greatly affect the feasibility and cost of developing housing. As noted in Chapter F4, Housing Constraints, environmental factors in Los Banos include potential impacts from wildfire, drought, and flood. There are no known barriers related to shape, access, contamination, property conditions, easements, conservation easements, overlays and airport or military compatibility that could impact housing development on identified sites in the planning period.
Wildfire
Los Banos is located in an urbanized area and is not exposed to wildfire hazards. The surrounding area is also not designated as a very high or high fire hazard area. The potential impacts of a wildfire would not preclude development of housing in Los Banos.
Drought
As for the impacts of a drought, there will be minimal impact on the physical structures of buildings and facilities across Los Banos, however there may be less reliability on infrastructure. The potential impacts of a drought would not preclude development of housing in Los Banos. 2024-2032 Housing Element F6-29
490
Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) Flood
Flood hazards are not a constraint to development, although Los Banos Creek runs through the city.
There a re retention basins that collect runoff from the creek and a reservoir that regu I ates its flow. as the city does not have any natural watercourses. The potential impacts of a flood would not preclude development of housing in Los Banos.
F6.11 Opportunities for Energy Conservation
The City has promoted energy conservation for residential uses through permitting and Community Development Block Grant (CDBG) funds. Through the building permit process, the City ensures that all new residential development meets or exceeds current state energy efficiency standards. CDBG funds are used to implement the City's housing rehabilitation loan program. As of 2020, the City joined Peninsula Clean Energy, a community partner that brings utility savings, rebates, and clean electricity to residents.
F6-30
491
City of Los Banos
Housing Plan
F7 Housing Plan
This eight-year Housing Plan (2024-2032) sets forth a strategy, including goals, policies, and programs, to address housing issues identified in the City of Los Banos.
F7. l Goals and Policies
Goal 1: Regional Collaboration Work collaboratively with jurisdictions in the county to efficiently address housing issues and find regional
solutions.
Policy 1.1 Proactively coordinate with cities, Merced County, and other agencies and organizations to create effective policies and programs and respond to opportunities for achieving common housing goals.
Policy 1.2 Participate in, as appropriate, pursuit of state and federal housing funds to address regional housing issues.
Goal 2: Housing Development Provide an adequate supply and range of housing types to meet the diverse needs of residents.
Policy 2.1 Provide adequate sites for new housing development to accommodate the regional housing needs allocation (RHNA) throughout the planning period.
Policy 2.2 Facilitate a range of housing development that will meet the needs of all income levels including extremely low, very-low, low-, moderate- and above moderate households.
Policy 2.3 Encourage a range of housing types and sizes in large-scale development and annexations.
Policy 2.4 Promote infill development on vacant and underutilized sites within developed areas.
Policy 2.5 Encourage higher density and mixed-use residential development along major transportation and transit corridors and/or near existing or planned community facilities and services.
Policy 2.6 Enact programs that facilitate well-designed, energy-efficient development and flexible standards to encourage high-quality projects.
Goal 3: Affordable Housing
Options
Facilitate the development of affordable housing and
protect the existing supply of affordable housing to
extremely low, very low-, low- and moderate-income
households.
Policy 3.1 Provide a range of incentives and tools to encourage affordable housing for all lowerincome levels, including extremely low-income.
Policy 3.2 Support the Merced County Housing Authority (MCHA) by promoting Housing Choice Voucher (HCV) opportunities.
2024-2032 Housing Element F7-1
492
Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) Policy 3.3 Ensure permit processing procedures to ensure streamlining is available for affordable housing development projects (SB 35).
Policy 3.4 Support the development of Accessory Dwelling Units (ADUs) as an affordable housing option.
Policy 3.5 Promote home ownership for lower- and moderate- income households by pursu ing grant funding for down payment assistance and other homeownership loan programs.
Policy 3.6 Monitor existing affordable housing developments and pursue preservation strategies to maintain their affordability.
Goal 4: Housing and Neighborhood
Preservation
Maintain and improve the city's existing housing stock.
Policy 4.1 Preserve existing residential neighborhoods by promoting balanced design and architecture.
Policy 4.2 Support code enforcement efforts to work with property owners with repairs and rehabilitation of housing to preserve existing housing stock.
Policy 4.3 Utilize Capital Improvement Programs for repairs and improvements of public infrastructure and facilities in existing neighborhoods.
Goal 5: Housing for Persons with
Special Needs
Support and provide housing and services for people with special needs in the community. People with special needs include, but are not limited to, seniors, families with children, people with disabilities, single-parent families, farmworkers, and people who are experiencing
homelessness or at risk of becoming homeless.
Policy 5.1 Assist in local and regional efforts that address the housing needs of special needs residents.
Policy 5.2 Provide reasonable accommodation for individuals with disabilities to access housing opportunities.
Policy 5.3 Support the development of affordable housing units for farmworkers and farmworker families by encouraging the use of federal, state, and local resources.
Policy 5.4 Coordinate with regional agencies and local non-profit/private developers on housing options and services for people who are experiencing homelessness or at risk of becoming homeless.
Policy 5.5 Proactively apply for and utilize available resources to provide and maintain housing for special needs groups.
Goal 6: Resource Conservation and
Sustainable Development
Utilize energy conservation and sustainable measures for new and rehabilitated housing.
Policy 6.1 Support and, as appropriate, incentivize the use of green building techniques for new housing and rehabilitation.
Policy 6.2 Promote energy conservation and efficiency in residential developments.
F7-2
493
City of Los Banos
Housing Plan
Goal 7: Affirmatively Furthering
Fair Housing
Promote housing opportunities and access for residents
regardless of age, race, religion, sex, marital status, ancestry, national origin, color, disability, or economic level in compliance with local, state, and federal fair housing laws.
Policy 7.1 Promote meaningful and informed participation of residents, community groups, and governmental agencies in all local housing and community development activities.
Policy 7.2 Comply with federal, state, and local fair housing anti-discrimination laws ensuring equal access to housing regardless of circumstances as protected by fair housing laws.
Policy 7.3 Provide fair housing services to city residents and ensure that residents are aware of their fair housing rights.
Policy 7.4 Provide residents with housing mobility options by facilitating the development of a variety of housing types and expanding access to housing services.
Policy 7.5 Protect tenants from discriminatory housing practices and displacement.
Policy 7.6 Promote the integration of affordable and special needs housing in existing and planned neighborhoods.
F7.2 Implementing Programs
Program 1: Regional Collaboration
Collaborate with other jurisdictions in the region on housing efforts, including funding opportunities, best practices, and other efforts to address housing, transit, economic development, and homeless issues in Merced County.
Regional collaboration efforts can include, but are not limited to:
■ Affordable housing development opportunities
■ Regional housing programs and outreach efforts
■ Economic development opportunities
■ Creation of a regional Housing Trust Fund
■ Coordination on funding applications and administration ■ Identification of transit opportunities and access near new and established residential areas ■ Development of environmental mitigation that can improve the quality of life for residents ■ Efforts for the development of emergency shelters, low-barrier navigation centers, transitional and supportive housing as well as support services for persons experiencing homelessness or at risk of becoming homeless in the county, including participation in services offered by the County
2024-2032 Housing Element F7-3
494
Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) Specific Actions, Objectives and Timelines
Primary Responsible Departments
Funding Sources
Relevant Policies
AFFH Themes
AFFH Geographic Targeting
AFFH Outcomes
F7-4
• Starting in 2025, at least annually participate in regional meetings related to housing and homeless issues to pursue funding and coordination opportunities. Annually pursue funding opportunities for regional housing issues.
• Starting in 2025, at least annually partner with the Merced County Human Services Agency and/or the Merced County Community Action Agency to proactively address shelter, housing and support services for people experiencing homelessness. Target support in areas with a concentration of encampments, such as on the Rail Trail in Downtown Los Banos.
• Continue to be an active participant with the Merced County Association of Governments (MCAG) and coordinate on regional planning and policy efforts to advance shared goals throughout Merced County.
• Annually work with the Merced Continuum of Care to update and implement the 10-Year Plan to End Homelessness during the planning period.
• Starting in 2025, annually collaborate and coordinate regionally and with the California Department of Housing and Community Development to ensure the effective implementation of the Housing Element. This collaboration will include regular meetings (at least annually), and will include resource sharing, joint efforts with internal and external partners to address regional housing needs and achieve the goals outlined in the Housing Element, including affirmatively furthering fair housing and farmworker needs.
• Starting in 2025, participate in a regional collaboration with developers and affordable housing advocates to support the development of housing and implementation of the Housing Element. • By 2026, establish a working group that meets annually to identify regional housing challenges, including but not limited to affirmatively furthering fair housing efforts and farmworker housing, funding opportunities, and consider input from the working group to coordinate efforts to develop affordable housing and implement the housing element, including making adjustments as appropriate to better achieve the goals and objectives of the housing element.
Planning Department of Local Jurisdictions
General Fund; federal, state, and local grant funds
1.1, 1.2
• Outreach and Education
• Housing Mobility
• New Housing Opportunities in Areas of Higher Resources • Anti-Displacement and Tenant Protection
---------- Citywide
N/A
495
City of Los Banos
Housing Plan
Program 2: Adequate Sites for RHNA and Monitoring of No Net Loss For the 6th cycle Housing Element, Los Banos has been assigned a RHNA of 3,132 units, including:
• Very Low Income: 719 units
• Low Income: 493 units
• Moderate Income: 566 units
• Above Moderate Income: 1,354 units
The City is committed to ensuring that adequate sites at appropriate densities remain available during the planning period, as required by law. As of September 2025, the City has identified capacity for 658 units through projects under construction, approved, or permitted, that will be available during the RHNA projection period. The City also projects 40 ADUs affordable to above moderate-income households will be developed during the planning period. Accounting for these units, the City has a remaining RHNA of 22,434 units (1,148 lower income, 525 moderate income, and 1761 above moderate income) for which the City must identify adequate sites for potential development.
The City has identified vacant and agricultural sites with potential for development/redevelopment, or adaptive reuse of existing uses over the next eight years. None of the opportunity sites require rezoning. The 50 opportunity sites identified have a capacity of 2,805 units (1,313 lower-income units, 552 moderate-income units, and 940 above moderate-income units). Of the 50 sites identified, 13 were used during previous Housing Element cycles and are subject to by-right approval (see Program 3).
To ensure that the City complies with SB 166 (No Net Loss), the City will monitor the consumption of residential and mixed-use acreage to ensure an adequate inventory is available to meet the City's RHNA obligations. To ensure sufficient residential capacity is maintained to accommodate the RHNA, the City will develop and implement a formal ongoing (project-by-project) evaluation procedure pursuant to Government Code Section 65863. Should an approval of development result in a reduction in capacity below the residential capacity needed to accommodate the remaining need for lower and moderate-income households, the City will identify and if necessary, rezone sufficient sites to accommodate the shortfall and ensure "no net loss" in capacity to accommodate the RHNA.
The Site Inventory identifies large sites (larger than 10 acres) that are expected to offer affordable housing opportunities for lower income households.
To facilitate the development of these large sites, the City will:
• Provide technical assistance, incentives, and strategies as appropriate to facilitate development of affordable housing, including parceling at appropriate sizes or other site planning tools such as clustered development, allowing flexibility for the transferring of densities within the property.
• Promote the potential subdivision of large sites into multiple parcels for future development through technical assistance, incentives, and strategies during the development phases and when applications come into the City for the identified parcels. • Annually meet with property owners and developers to encourage the development of mixed income housing with a mix of unit sizes, types, and prices. • Promote the development of large sites at the densities and affordability levels identified within the housing element.
2024-2032 Housing Element F7-5
496
Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) ■ Allow the development in phases within eight years of the Housing Element planning period. ■ Offer expedited processing and fee deferrals, reductions, or waivers for affordable units in development on large sites identified in the Site Inventory.
Specific Actions, Objectives and
Timelines
Primary Responsible Departments
Funding Sources
Relevant Policies
AFFHThemes
Geographic Targeting
AFFH Outcomes
F7-6
• Facilitate the development of 3,132 units over eight years (1,212 lower-income, 566 moderate-income, and 1,354 above moderateincome units). □ Facilitate the development of 40 ADUs during the planning period. □ Maintain an inventory of available vacant and prospective sites that can accommodate new housing and update annually. Make this inventory available to the public and interested developers on the City website.
□ Annually meet with property owners and interested developers to pursue housing development in the city.
□ By July 2025, develop a formal procedure to monitor no net loss in capacity pursuant to SB 166.
• By the end of 2025, establish objective development standards for development to facilitate large-site development in phases if appropriate. Annually promote objective development standards to developers active in the city.
• By the end of 2025, determine and establish incentives for the development of housing on large sites. Incentives may include streamlining/priority processing, technical assistance for subdivisions/lot line adjustments, revised development standards (height allowances, parking, etc.}, or offsite public infrastructure support.
• By the end of 2027, if development of housing is not feasible on these large sites, within 6 months (by July 2028} the City will identify additional incentives and planning tools or alternative strategies if necessary to ensure adequate capacity for the RHNA.
• Every other year beginning in 2027, monitor the progress of projects identified in this Housing Element with pending entitlements counted toward the RHNA. If development is no longer feasible on the identified sites, resulting in a shortfall of RHNA sites, the City will identify alternative sites to satisfy the RHNA within a year.
Planning Department
General Fund
2.1, 2.2, 2.4, 3.1
• Housing Mobility
• New Housing Opportunities in Areas of Higher Resources --- N/A
Facilitate the development of 3,132 units including 1,370 units affordable to lower income households.
Facilitate the development of housing units on the four large sites identified to meet the RHNA.
497
Program 3: By-Right Approval
City of Los Banos
Housing Plan
Pursuant to Government Code Section 65583.2, reusing the following types of sites in the City's site inventory for lower income RHNA are subject to by-right approval exempt from CEQA and subject only to design review based on objective standards when a project includes 20 percent of the units affordable to lower-income households and no subdivision is proposed:
Reuse Sites (No Rezoning Required):
• Vacant sites that were identified in the City's 4th and 5th cycles Housing Element as sites for lowerincome RHNA; and • Nonvacant sites that were identified in the City's 5th cycle Housing Element as sites for lowerincome RHNA.
The by-right approval requirement of reuse sites is effective January 31, 2024.
Rezoning of sites past the statutory deadline of the Housing Element to meet the lower income RHNA are subject to the by-right approval requirement. The by-right approval requirement for rezone sites is triggered by the rezoning. Currently, the site inventory does not include any sites that would require rezoning.
By-right shall mean the local government's review shall not require:
• A conditional use permit
• A planned unit development permit
• Other discretionary, local-government review or approval that would constitute a "project" as defined in Section 21100 of the Public Resources Code
This provision does not preclude local planning agencies from imposing design review standards.
However, the review and approval process must remain ministerial, and the design review must not constitute a "project" as defined in Section 21100 of the Public Resources Code.
Parcels that are subject to by-right approval pursuant to state law are identified in Table F6.4-8 in Chapter F6, Housing Resources. There are 13 sites identified in the sites inventory that are subject to by-right approval, with a capacity totaling 1,405 units.
Specific Actions, Objectives and Timelines
Primary Responsible Departments
Funding Sources
Relevant Policies
AFFHThemes
Geographic Targeting
AFFH Outcomes
2024-2032 Housing Element
Concurrent with the Development Code update to provide adequate sites for the RHNA (see Program 2), update the Development Code to address the by-right approval requirements.
Planning Department
General Fund
2.1, 2.2, 3.1
-- -- -------· ---·---- - -· ___ .. ______ - --
--------- ----- -------·-·-··---- ■ Housing Mobility
• New Housing Opportunities in Areas of Higher Resources Citywide
N/A
F7-7
498
Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) Program 4: Replacement Housing
Development on non-vacant sites with existing residential units is subject to replacement requirements, pursuant to AB 1397. Specifically, AB 1397 requires sites with a residential use within the last five years the replacement of units affordable to the same or lower income level as a condition of any development on a non-vacant site consistent with those requirements set forth in state Density Bonus Law.
Specific Actions, Objectives and Timelines
Primary Responsible Departments
Funding Sources
Relevant Policies
AFFHThemes
Geographic Targeting
AFFH Outcomes
By July 2025, amend the Zoning Code to address the replacement housing requirements .
Planning Department - · --~··----- - General Fund
2.2, 3.6
• Housing Mobility
• New Housing Opportunities in Areas of Higher Resources • Anti-Displacement and Tenant Protection
Citywide
Replace all units as required pursuant to AB 1397.
Program 5: Accessory Dwelling Units
ADUs provide an important affordable housing option in the City. The City's ADU Ordinance is not in compliance with State law as it does not allow the development of ADUs in all residential zones. Los Banos will amend the Zoning Code in compliance with state laws.
Consistent with Government Code Section 65583 and Health and Safety Code Section 50504.5, the City will continue to encourage the production of ADUs and work to provide affordable units for lower-income households.
Specific Actions, Objectives and Timelines
F7-8
• Amend the Zoning Code in compliance with state law by July, 2025. • Facilitate the development of 40 ADUs over eight years, prioritizing South Los Banos.
• Beginning January 2025, facilitate the production of ADUs through efforts including, but not limited to:
□ Updating ADU webpage to include available resources for ADU production, such as grants for pre-development costs available to lower-income homeowners through California Finance Agency (CalHFA).
□ Conduct three educational workshops, campaigns, or outreach events to promote ADU development.
□ Develop as ADU application checklist and publish the checkl ist on the City's website by July 2025.
□ Add information on the ADU permitting process, as well as available resources and incentives, on the City's website by July 2025.
□ Continue to offer expedited reviews including a shortened plancheck period of five days. □ Continue to train staff every two years to properly educate property owners on ADUs and garage conversions.
□ Participate in regional collaboration efforts to create pre-approved ADU plans.
499
Primary Responsible Departments
Funding Sources
Relevant Policies
AFFHThemes
Geographic Targeting
AFFH Outcomes
City of Los Banos
Housing Plan
• Explore an ADU amnesty program. If feasible, establish an ADU amnesty plan by December 2026.
• Explore and determine the feasibility of the following Zoning Code amendments to enhance ADU production during the planning period:
0 Explore increasing the by-right ADU size to further incentivize ADU creation
□ Consider allowance for an increase in the permitted height up to the height of the primary residence for AD Us built above a garage in single-family zones
□ Consider allowances for reduced setback requirements where privacy is not compromised
Planning Department
General Fund
2.2, 2.3, 3.1, 3.4
• Outreach and Education
■ Housing Mobility
■ New Housing Opportunities in Areas of Higher Resources Citywide with emphasis on single-family residential neighborhoods moderate and high resource areas (South and East Los Banos).
Support the development of at least 40 ADUs in Los Banos during t he planning period.
Program 6: Zoning Code Amendments
In order to facilitate a variety of housing types, especially housing for lower-income households and those with special needs, the City will remove constraints to housing development by amending the Zoning Code.
Specific Actions, Objectives and Timelines
2024-2032 Housing Element
Include the following Zoning Code Amendments by the end of 2025 unless otherwise indicated:
• Development Standards: Review and revise the City's development standards (including parking and height) concurrent with Housing Element adoption, particularly in relation to higher-density affordable housing:
□ Revise parking requirements for one-bedroom units to no more than one space per unit.
■ Density Bonus: Revise the Zoning Ordinance to provide additional density bonuses under the criteria set forth by AB 1287 (see Program 7).
• Accessory Dwelling Units: Revise the Zoning Ordinance for compliance with state law (see Program 5).
• Single-Room Occupancy (SRO) Housing: Revise the Zoning Ordinance to allow the development of SRO units in residential districts allowing multifamily uses and/or commercial districts allowing hotel and motel uses and establish a procedure to encourage and facilitate SRO development in the allowable zoning district(s), including development standards.
• Emergency Shelters: Revise the Zoning Ordinance concurrent with Housing Element adoption to allow the development of emergency shelters by-right in the R-1 district, remove the maximum length of stay requirement, and expand the definition of emergency shelters to include interim housing options.
F7-9
500
Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) Primary Responsible Departments
Funding Sources
Relevant Policies
AFFH Themes
Geographic Targeting
AFFH Outcomes
F7-10
• Residential Care Facilities: Revise the Zoning Ordinance to allow care facilities of seven or more residents in all districts that permit residential uses, approved with objectivity and certainty, and subject only to the requirements of residential uses of similar type and form. • Objective Design Standards: Revise Article 23 of the Zoning Ordinance to remove subjective language. Site plan review approval find i ngs will be removed or modified to promote objectivity and approval certainty.
• SB 35: Establish procedure for implementing SB 35 concurrent with Housing Element adoption.
• Farmworker Housing: Review and revise the Zoning Code to ensure compliance with the Employee Housing Act (H&S Code Section 17021.6 and 17021.8), which requires that any farmworker housing consisting of no more than 36 beds in a group quarters or 12 units or spaces designed for use by a single family or household shall be deemed an agricultural land use for the purposes of this section.
Farmworker housing shall not be deemed a use that implies that the employee housing is an activity that differs in any other way from an agricultural use. No conditional use permit, zoning variance, or other zoning clearance shall be required of this farmworker housing that is not required of any other agricultural activity in the same zone. The permitted occupancy in farmworker housing in a zone allowing agricultural uses shall include agricultural employees who do not work on the property where the farmworker housing is located. • Employee Housing: Review and revise the Zoning Code to ensure compliance with the Employee Housing Act (H&S Code Section 17021.5), which requires that housing provided by an employer for up to six employees is considered a residential use, subject to the same standards as single-family residences.
• Low-Barrier Navigation Centers: Revise the Zoning Ordinance to allow low-barrier navigation centers by right in non-residential zones permitting multi-family uses.
• Transitional and Supportive Housing (AB 2162): Revise the Zoning Ordinance to permit Permanent Supportive housing without discretionary action in zones that permit multi-family housing and comply with Government Code section 65621, including but not limited to processing and parking requirements for projects located within one-half mile of transit. In addition, revise the Zoning Ordinance, as appropriate, to permit transitional/supportive housing as a residential use in all zones allowing residential uses and only subject to those restrictions that apply to other residential dwellings of the same type in the same zone. These revisions will include removing the CUP requirements for transitional and supportive housing for 7 or more persons in the R-1 and R-2 zones.
Planning Department
General Fund
2.2, 3.1, 3.4, 5.2, 5.3, 7.4
• Housing Mobility
• New Housing Opportunities in Areas of Higher Resources • Anti-Displacement and Tenant Protection
Citywide
Facilitate the development of 100 units for special needs populations during the planning period.
501
City of Los Banos
Housing Plan
Program 7: Facilitating Affordable Housing Development
The City is committed to expanding affordable housing options for households of all income levels using development tools such as density bonus provisions, waiving development fees and streamlining the application process. The City will contact local non-profit and private developers to facilitate the production of this housing as well as pursue funding opportunities available at the local, regional, state and federal levels.
On a case-by-case basis, the City will provide opportunities for public, private and non-profit groups to develop affordable housing by constructing off-site improvements and physical infrastructure as Capital Improvement Projects. Assistance provided by the City may include traffic, street and sewer upgrades as well as other pedestrian and mobility improvements.
Specific Actions, Objectives and Timelines
2024-2032 Housing Element
• Annually pursue funding at the local, regional, state, and federal levels such as State CDBG, CalHome, PLHA, and Project Homekey funds. • Work with other jurisdictions in Merced County to create a regional list of affordable housing developers. Annually conduct outreach to these developers with information on potential sites, available regulatory concessions and incentives, and potential funding opportunities to construct homes that are affordable to low- and moderate-income households.
• By the end of 2025, revise the Density Bonus Ordinance in compliance with State law (Government Code §65915) to equally provide for density bonuses in all zoning districts where residential uses are permitted and to include provisions relative to density bonuses, incentives, and concessions as required by State law.
• Facilitate the development of affordable housing by allowing improvements to be negotiated.
• Facilitate the development of affordable housing through the provision of the following regulatory concessions and incentives:
0 Density increases under the City's Density Bonus Ordinance. 0 Expedited and streamlined project application review involving any of the following housing categories: above-moderate-income households; very low-income households; large families; persons with disabilities or developmental disabilities; and farmworkers. 0 Potential fee waivers/reductions/deferrals until final occupancy. 0 Reduced parking requirements.
• Continue to review permit fees annually to ensure fees do not inhibit the development of affordable housing and review the City's development impact fees and revise to be competitive with other cities in the region by June 2026.
• Continue to offer fee reductions for senior and special needs housing units.
• Review the General Plan, applicable Specific Plans, Zoning Code, and Zoning Map to evaluate opportunities for removing barriers to housing production, adding housing capacity, and accommodating a greater mix of dwelling types and household sizes (e.g., duplexes, triplexes, fourplexes, townhouses, courtyard buildings), prioritizing opportunities and sites in South Los Banos. Complete first review by January 2026 and implement any changes by January 2027 (see Program 6).
• Beginning in 2025, and annually thereafter, apply for state and federal funds to facilitate the development of affordable housing, including housing for extremely low-income households and those with special ho_~~(ng _need s. Partner w_i~ n_onp_!'.?fi~-~':!_us( ~~ -~ev_i,!':!Pe..~s_t9_ s_u pport F7-11
502
Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) Primary Responsible Departments
Funding Sources
Relevant Policies
AFFH Themes
Geographic Targeting
AFFH Outcomes
the entitlement of at least 100 subsidized housing units affordable to extremely low-, very low-, and low-income households in the city during the planning period, prioritizing sites near services.
Planning Department
Local, state and federal resources, General Fund, CDBG -------- ------- ···•
2.1, 2.2, 2.3, 3.1, 4.1, 4.3, 7.4
• Housing Mobility
• New Housing Opportunities in Areas of Higher Resources Citywide
Increase the percent of the city's housing stock that is multifamily from 12 percent to 15 percent by December 2030, using 2017-2021 ACS data as a baseline.
Entitlement of at least 100 subsidized housing units affordable to extremely low- very low-, and low-income households in the city during the planning period, including at least 75 units in South Los Banos Program 8: Preservation of At-Risk Housing
The City has 584 housing units that are deed restricted as affordable housing for lower-income households. No units are considered at risk of conversion during this Housing Element planning period. Nevertheless, the City will work to preserve these units and will proactively monitor all other units to encourage continued affordability beyond existing covenants and work proactively with owners of affordable units to assist in rehabilitation needs.
Specific Actions, Objectives and Timelines
Primary Responsible Departments
Funding Sources
Relevant Policies
AFFHThemes
Geographic Targeting
AFFH Outcomes
• Monitor affordable units during the planning period.
• Maintain annual contact with property owners of affordable housing regarding any change in status/intent or need for assistance, such as rehabilitation assistance.
• Maintain the AB 987 database to include detailed information on all subsidized units, including those that have affordability covenants.
Update annually.
Planning Department
General Fund
3.6, 5.5
Anti-Displacement and Tenant Protection
Citywide --- - - ---···-·-·-----·- ---
Preserve all 584 affordable housing units.
Program 9: Housing Preservation and Rehabilitation
Only 32 percent of the housing stock in Los Banos is more than 40 years old (built before 1980). Los Banos does not currently have an active housing rehabilitation program. However, the City will apply for CDBG funds during the 2025 annual Notice of Funding Availability (NOFA). The City was awarded CDBG funds in 2015 to support code enforcement services to remove slum and blight in neighborhoods that are considered LMI areas, where low- and moderate-income households make up more than 50 percent of households tract-wide. However, the City is not eligible for CDBG funds to support these programs on a regular basis.
F7-l2
503
Specific Actions, Objectives and Timelines
Primary Responsible Departments
Funding Sources
Relevant Policies
AFFHThemes
Geographic Targeting
AFFH Outcomes
City of Los Banos
Housing Plan
• Starting in 2025, advertise available rehabilitation grant programs on the City's website. Ensure that Code Enforcement has this infor mation when addressing enforcement cases.
• Annually utilize the Code Enforcement Division to track areas where rehabilitation needs are heightened.
• Annually monitor state and federal funding opportunities, such as Section 504 loans and HOME funds.
• Explore funding sources and methods to reinstate the City's residential rehabilitation program by 2026.
• Continue to implement the Nuisance Ordinance, through annual use of CDBG funding set aside for code enforcement services for abandoned or vacant homes and other issues regarding blight in the community.
• Conduct a housing conditions survey following HCD guidelines and publish the results on the City website. As part of the housing conditions survey:
0 Apply for HOME and CDBG grant funds for rehabilitation projects identified as part of the Survey.
° Contact homeowners identified in the Survey as having a home qualifying for the rehabilitation program.
• Annually contract owners of affordable rental properties to provide information related to maintenance and rehabilitation.
Planning Department, Code Enforcement
General Fund
3.6, 4.1, 4.2, 4.3, 5.5
• Outreach and Education
• Place-Based Strategy for Neighborhood Improvements - - - .
Citywide with emphasis on LMI areas (Central Los Banos).
If feasible, apply for one funding opportunity for residential rehabilitation assistance annually.
Complete one housing conditions survey during the planning period.
Assist 3 households annually for a total of 24 during the planning period through code enforcement or rehabilitation efforts (if reinstated).
Program 10: Lower-Income and Special Needs Housing
To assist in the development of housing to meet the needs of extremely low, very low- and lowincome households, the Housing Authority of Merced County (HACM) offers the following programs:
■ Housing Choice Vouchers (HCVs): Offers affordable, decent, and safe housing in open market rentals selected by voucher holders. Voucher holders receive a fixed subsidy, which the Housing Authority pays directly to the landlord, and tenants are responsible for payment of the remainder of the rent.
■ Public Housing: Provides rental assistance to low- and moderate-income families and individuals.
The HACM owns and manages all 421 rental units offered under this program, which are located in communities throughout Merced County.
■ Project-Based Voucher Program (PBVs): The Housing Authority released a Request for Proposal (RFP) for the PBV Program in November 2023, seeking proposals from owners/developers who will commit up to 150 units of their rental housing to receive assistance through project-based vouchers.
2024-2032 Housing Element F7-13
504
Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) ■ Migrant Housing Centers: The Housing Authority manages four Migrant Centers throughout the County. The Migrant Housing Centers provide temporary housing to migrant farm workers available to them during the peak growing and harvest season, which is typically April through November. Migrant Centers managed by the Housing Authority are located in Atwater, Merced, Los Banos, and Planada.
The City will continue to work with the Housing Authority to obtain HCVs and provide the community with information about other available programs. Additionally, the City works with community based organizations and developers on special needs housing and information on emergency shelters. The City of Los Banos is actively working with the Merced County Continuum of Care on a 10-year plan to end homelessness and special needs housing alternatives. Los Banos has also created a Housing Program Division within the Community and Economic Development Department to provide outreach to individuals and connect and provide information to special needs people needing housing or shelter. Los Banos also implements an award program for landlords that participate in renting to homeless individuals that qualify for housing choice vouchers.
The City was recently awarded PHLA funds which will be used to support bridge housing for persons experiencing homelessness. The County currently funds one bridge housing project operated by the Merced County Rescue Mission in Los Banos. The City of Los Banos is currently utilizing their PLHA funds to operate the second bridge home in Los Banos to ensure continuity in services and avoid any displacement of residents.
Specific Actions, Objectives and Timelines
F7-14
• Assist 300 Los Banos households through HCVs annually. • Annually work with the Housing Authority to continue providing assistance in the community.
• Over the eight-year planning period, subsequent to each Point-inTime Count, conduct workshops for the Planning Commission and City Council to share the data from the count.
• Develop an inventory of affordable housing, with contact information and the number of affordable units, and publish the inventory on the City's website by July 2025.
• Connect low-income residents with housing assistance resources, including the HCV program.
□ Add information on the HCV Program and other housing assistance programs to the City's website by July 2025.
□ Promote the availability of assistance programs through all City's social media pages at least twice per year.
0 Attend at least two community events during the planning period to spread awareness and distribute fact sheets on available financial assistance programs.
• In collaboration with the Housing Authority, provide education to property owners and managers to expand awareness of the HCV program to increase acceptance of tenant-based HCVs and to facilitate mobility and provide choices for lower-income households throughout the city. Identify and address challenges that property owners/managers have with existing or prospective HCV holders. 0 Starting in 2025, annually conduct one outreach event for landlords on the HCV program, for a total of seven events during the planning period (i.e., workshops, community events, mailings, etc.). Include education regarding laws prohibiting source of income discrimination (Fair Employment and Housing Act). 505
2024-2032 Housing Element
City of Los Banos
Housing Plan
0 Target outreach to landlords in high resources areas, such as South Los Banos
• Annually utilize recently awarded PHLA funds to work with bridge housing and ensure the residents of the Bridge Homes are not displaced.
• Refer residents to the Central Valley Regional Center for housing and services available for persons with developmental disabilities as inquiries are received. Annually update information on services on the City's website. As available, pursue state and federal funds for direct support for housing construction and rehabilitation specifically targeted for housing for persons with developmental disabilities. • The City shall provide technical assistance when needed and continue to conduct pre-application conferences and meet with farm worker housing developers on an ongoing basis.
0 Post information on the Community and Economic Development Department website within one year of Housing Element
adoption. Information includes a site inventory and available land, housing resources and grant information.
° Contact farm worker housing developers to determine interest and identify constraints to farmworker housing development within the City by the end of 2025 and annually thereafter. 0 Prioritize the review and processing of farmworker housing applications.
° Create and distribute informational materials to raise awareness about farmworker housing programs and opportunities by the end of 2025 and annually thereafter.
0 As part of the working group, described in Program 1, meet annually to discuss and identify efforts to address farmworker housing regionally.
• Consistent with state law that mandates the provision of housing for ELI households, the City will prioritize processing and funding allocation for projects that include units for ELI households, especially farmworker housing.
• Consistent with state law that mandates the provision of housing for special needs households, the City will prioritize processing and funding allocation for projects that include units for special needs households.
• Beginning in 2025 and annually thereafter, pursue funding available at the state and federal levels for affordable housing development.
Specifically, pursue funding programs that target the needs of extremely low- and very low-income households.
• Provide letters of support to funding applications by developers if the proposed projects are consistent with the goals and objectives of this Housing Element, as requested.
• The City, County, and regional collaboration partners will pursue a variety of strategies and funding to encourage the development, rehabilitation and conservation of housing for farmworkers such as such as funding development, integrating housing for farmworkers into development, developer identification, maintaining an inventory of suitable sites, site development, ensure zoning and development standards facilitate a variety of housing types for farmworker housing needs. The City and collaborative partners will make a specific and at least annual effort to assist in the development of housing for farmworkers and conserve and improve the existing housing stock for farmworkers, including but not limited to:
F7-1 5
506
Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) Primary Responsible Departments
Funding Sources
Relevant Policies
AFFHThemes
Geographic Targeting
AFFH Outcomes
F7-l 6
• Contacting nonprofit developers at least every other year to identify opportunities for the development or improvement of housing for farmworkers.
• Coordinating and participating with regional organizations, including non-profit, academic, and employers, to raise awareness, share and employ strategies, or target new resources.
• Coordinating annually with organizations that represent or serve farmworkers.
• Providing incentives and other strategies beyond state density bonus law to encourage housing for farmworkers, including setting aside housing for farmworkers within developments, supporting funding applications, prioritizing entitlements and establishing appropriate zoning and development standards.
• Targeting code enforcement and other resources to the existing housing stock with the most need for rehabilitation and sanitary conditions that could be more likely to house farmworkers and work with regional or other organizations to improve living conditions for farmworkers.
• Perform outreach to religious institutions to provide information and educate them regarding the availability of SB 4 provisions to construct affordable housing units and to connect them with potential affordable housing developers. Create an outreach and technical advisory program that includes the following actions:
° Conduct workshops in 2027 and 2029 to explain recent legislation (SB 4 and AB 1851) and how it can apply to religious facility properties in Los Banos and
invite religious facility owners and local nonprofit developers to participate.
0 Provide informational materials to religious facility property owners on the development process.
0 Provide technical assistance to religious facility property owners to assist with the project entitlements.
° Focus outreach in South Los Banos.
Planning Department
HUD, Self-Help Enterprise funding sources
3.2, 5.1, 5.4, 5.5, 7.4
• Outreach and Education
• Housing Mobility
• New Housing Opportunities in Areas of High Resources
• Anti-Displacement and Tenant Protection
Citywide with emphasis in Central Los Banos.
Promote the use of HCVs in the city with the goal of expanding HCV use by 10 percent by December 2030, using 2023 data as baseline.
Conduct one HCV outreach event annually for a total of seven events during the planning period.
Preserve housing opportunities and services for the 20 residents of the Merced County Rescue Mission upon its closure.
Assist with the development of one farmworker housing project during the planning period.
Increase housing mobility options in Los Banos through SB4 implementation.
507
City of Los Banos
Housing Plan
Program 11: Community and Economic Development
Well-maintained infrastructure creates a safe and accessible urban environment, fostering a sense of community and belonging. Moreover, investing in such improvements attracts businesses and investments, contributing to economic growth and ensuring equal access to essential services. The City will implement the following actions to expand community and economic development citywide.
Specific Actions, Objectives and Timelines
Primary Responsible Departments
Funding Sources
Relevant Policies
AFFHThemes
Geographic Targeting
AFFH Outcomes
2024-2032 Housing Element
• Coordinate with the Public Works Department to review the City's Capital Improvement Projects {CIP} to ensure public facilities and infrastructure are supportive of the needs of underserved communities.
0 As part of the annual CIP program update in FY 25-26, establish a minimum spending target (e.g., 75 percent) and report the percent of CIP budget committed to Central Los Banos and sites that can accommodate lower-income housing.
° Continue to allocate funding for improved community
infrastructure, such as improvements to landscaping, playgrounds, the Ag Sports Complex, and Colorado Ball Park, street
rehabilitation work, wastewater projects, water line replacements, and solid waste infrastructure improvements, focusing
investments in areas of high segregation and poverty such as Central Los Banos.
• Implement actions outlined in the Downtown Strategic Plan, specifically planning efforts for new land uses such as mixed-use residential, retail, office, and civic uses.
• Adopt the Downtown Master Plan that promotes a pedestrian-bicycle friendly downtown to encourage active transportation in the core of the City. Apply for funding beyond CIP annually.
• Hold at least one community workshop in North, South, and East Los Banos by December 2026 to identify active transportation needs. • Apply for funding to implement projects outlined in the Regional Active Transportation Plan by December 2027. Implement at least one active transportation project in North, South, and East Los Banos by the end of the planning period.
• Host at least one employment workshop annually to assist residents in preparing for local job fairs, developing resumes, and preparing for interviews. Workshops should also spread general awareness of available employment, training, and job preparation resources through Worknet Merced County.
• Concurrent with Housing Element adoption, at least every other year, identify funding sources and apply for funding to address additional community development issues such as neighborhood revitalization, parks, safe routes to school, community facilities, or addressing pollution burdens, with the goal of securing funding for two additional community revitalization projects during the planning period.
Planning Department
General Funds
3.1, 4.4
Place-based Strategies for Neighborhood Improvement
Citywide with emphasis on the LMI neighborhood (Central Los Banos and Downtown).
Complete 5 CIP projects during the planning period, including 3 in Central Los Banos.
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Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) Program 12: Fair Housing Outreach and Enforcement
The City of Los Banos works with the Housing Authority of Merced County (HACM} to prov ide fair housing information and resources to residents and housing providers. The Housing Authority contracts with Central California Legal Services (CCLS} to provide services including the distribution of educational materials to property owners, apartment managers, and tenants, and responding to complaints of discrimination (i.e., in-taking, investigation of complaints, and resolution} by referring the affected party to the appropriate agencies.
The City refers fair housing issues and complaints to Fair Housing Council of Central California (FHCCC} and the State Department of Fair Employment and Housing. The Department of Fair Employment and Housing (DFEH} maintains a record of housing discrimination complaints filed in local jurisdictions.
The Housing Authority refers fair housing issues and complaints to the U.S. Department of Housing and Urban Development (HUD}. HUD's Office of Fair Housing and Equal Opportunity (FHEO}. Los Banos has also created a Housing Program Division within the Community and Economic Development Department to provide outreach to individuals and connect and provide information to special needs people needing housing or shelter.
Specific Actions, Objectives and Timelines
F7-18
• Coordinate with Central California Legal Services (CCLS) and other fair housing nonprofit organizations to provide fair housing and tenant/landlord services, including investigation of discrimination complaints, fair housing counseling and education, fair housing testing, and tenant/landlord counseling and mediation.
• Partner with local organizations to distribute information on fair housing services and homebuyer education programs by distributing flyers, attending local events, social media campaigns, and educational workshops in both English and Spanish.
• Coordinate with non-profit organizations, local community groups, and service organizations to increase awareness of and access to housing resources and fair housing assistance. Provide information to homeowners and nonprofit groups via social media, the City's website, and utility bills regarding any funding assistance programs annually.
• Update the City's website to include fair housing rights and responsibilities for landlords and lenders. Complete updates by July 2025.
• In coordination with other Merced County jurisdictions, develop a Fair Housing factsheet to be included with the ADU application packet to inform property owners of their responsibility with state and federal fair housing laws. Publish fair housing guide with ADU applications on or before July 2025.
• Conduct fair housing outreach, including dissemination of the ADU Fair Housing factsheet, at two workshops or community events annually.
• The City should evaluate its compliance with the new transparency requirements per Government Code Section 65940.l(a)(l) and make changes as necessary. Update links on the City's Community and Economic Development Department web page to connect to the most recent versions of each resource and document.
• Conduct an annual Housing Element review and provide opportunities for public engagement and discussion in conjunction with the State requirement of written review of the General Plan by April 1 of each __ year (per Government Code Section_65400). Use the Planning_ 509
Primary Responsible Departments
Funding Sources
Relevant Policies
AFFH Themes
Geographic Targeting
AFFH Outcomes
City of Los Banos
Housing Plan
Commission and City Council as an avenue for public input on housing issues and Housing Element.
Planning Department
General Fund
3.1, 4.4
Enforcement and Outreach
Citywide with emphasis on Central Los Banos {LMI Areas) Assist at least 25 residents and landlords with fair housing services annually, throughout planning period.
Conduct two outreach events annually to disseminate fair housing information (workshop, community event, etc.)
Program 13: Water and Sewer Services
The City of Los Banos is the provider of water and sewer services within city limits. The City confirms that adequate water and sewer services are available to fully accommodate the RHNA. The City will provide a copy of the Housing Element to the Public Works Department, Utilities Division -the City's water/sewer service providers -within one month of the Housing Element adoption (Government Code Section 65589.7).
Pursuant to SB 1087, as the City's water/sewer service provider, the City must adopt a policy to prioritize the allocation of water/sewer services to affordable housing projects in the event capacity is limited.
Specific Actions, Objectives and Timelines
Primary Responsible Departments
Funding Sources
Relevant Policies
AFFHThemes
Geographic Targeting
AFFH Outcomes
2024-2032 Housing Element
• By June 2025, complete update to water and sewer master plans. As part of the master plan updates, adopt a policy to prioritize the provision of water and sewer services for affordable housing development applications when capacity is limited and warrants allocation.
■ Annually, conduct outreach and education on water conservation measure through a social media campaign.
• Pursue/provide rehabilitation assistance that includes energy conservation and weatherization improvements as eligible activities. ■ Within one month of Housing Element adoption, provide a copy of the adopted Element to the Public Works Department, Utilities Division, the City's water and sewer service providers.
Planning Department
General Fund
3.1, 4.4
N/A
Citywide
N/A
F7-19
510
Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) F7.3 AFFH Actions Summary
Government Code Section 8899.50 requires "meaningful actions" well beyond combating discrimination to overcome patterns of segregation and foster inclusive communities. Actions to affirmatively further fair housing include:
• Enhancing housing mobility strategies
• Encouraging development of new affordable housing in high resource areas • Increasing fair housing enforcement and fair housing outreach capacity • Improving place-based strategies to encourage community conservation and revitalization, including preservation of existing affordable housing
• Protecting existing residents from displacement
Actions to affirmatively furthering fair housing are summarized below.
F7-20
511
Affirmatively Furthering Fair Housing Action Matrix
Geographic
City of Los Banos
Housing Plan
Program Specific Commitment Timeline Targeting Eight-Year Metrics Fair Housing Enforcement and Outreach
Program 12: Fair Housing
Outreach and
Enforcement
• Coordinate with Central California Legal Services
(CCLS)/other fair housing nonprofit organizations to
provide fair housing and tenant/landlord services,
including investigation of discrimination complaints, fair housing counseling and education, fair housing testing, and tenant/landlord counseling and mediation.
• Partner with local organizations to distribute information on fair housing services and homebuyer education
programs by distributing flyers, attending local events, social media campaigns, and educational workshops in
both English and Spanish.
• Coordinate with non-profit organizations, local
community groups, and service organizations to increase awareness of and access to housing resources and fair
housing assistance. Provide information to homeowners
and nonprofit groups via social media, the City's
website, and utility bills regarding any funding assistance programs annually.
■ Update the City's website to include fair housing rights and responsibilities for landlords and lenders. Complete updates by July 2025.
• In coordination with other Merced County jurisdictions, develop a Fair Housing factsheet to be included with the ADU application packet to inform property owners of
their responsibility with state and federal fair housing laws. Publish fair housing guide with ADU applications
on or before July 2025.
■ Conduct fair housing outreach, including dissemination of the ADU Fair Housing factsheet, at two workshops or
community events annually.
• The City should evaluate its compliance with the new
transparency requirements per Government Code
Section 65940.l(a)(l) and make changes as necessary.
Update links on the City's Community and Economic
2024-2032 Housing Element
Annually
By July 2025
Citywide with
emphasis on Central
Los Banos (LMI
Areas)
Assist at least 25 residents and
landlords with fair housing services
annually, throughout planning
period.
Conduct two outreach events
annually to disseminate fair
housing information (workshop,
community event, etc.)
F7-21
512
Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) Affirmatively Furthering Fair Housing Action Matrix
Geographic
Program Specific Commitment Timeline Targeting Eight-Year Metrics Housing Mobility
Program 1: Regional
Collaboration
Program 5: Accessory
Dwelling Units
F7-22
Development Department webpage to connect to the
most recent versions of each resource and document.
• Conduct an annual Housing Element review and provide
opportunities for public engagement and discussion in
conjunction with the State requirement of written
review of the General Plan by April 1 of each year (per Government Code Section 65400}. Use the Planning
Commission and City Council as an avenue for public
input on housing issues and Housing Element.
• Participate in a regional collaboration with developers and affordable housing advocates to support the
development of housing
• Amend the Zoning Code in compliance with state law.
• Facilitate the production of ADUs through promotional efforts and incentives outlined in Program 5.
• Explore an ADU amnesty program. If feasible, establish an ADU amnesty plan by December 2026
• Explore and determine the feasibility of the following Zoning Code amendments to enhance ADU production
during the planning period:
0 Explore increasing the by-right ADU size to further
incentivize ADU creation
° Consider allowance for an increase in the permitted
height up to the height of the primary residence for
ADUs built above a garage in single-family zones
° Consider allowances for reduced. setback
requirements where privacy is not compromised
By 2026
July 2025
December 2026
N/A
Citywide with
emphasis on singlefamily residential
neighborhoods in
moderate and high
resource
neighborhoods
(South and East Los
Banos}.
Establish a working group that
meets annually to identify regional
housing challenges, funding
opportunities, and coordinate
efforts to develop affordable
housing.
Support the development of at
least 40 ADUs in Los Banos during
the planning period.
513
Affirmatively Furthering Fair Housing Action Matrix
Geographic
City of Los Banos
Housing Plan
Program Specific Commitment Timeline Targeting Eight-Year Metrics Program 10: Lower
Income and Special Needs
Housing
• Develop an inventory of affordable housing, with contact By July 2025 information and the number of affordable units, and
publish the inventory on the City's website.
• Connect low-income residents with housing assistance
resources, including the HCV program by:
• Adding information to the City's website by July 2025 • Promoting the availability of assistance programs
through social media twice per year
• Attending at least two community events during the
planning period to distribute fact sheets
• Conduct one outreach event for landlords on the HCV
program, for a total of seven events during the planning period (i.e., workshops, community events, mailings,
etc.). Include education regarding laws prohibiting
source of income discrimination (Fair Employment and
Housing Act). ----·-~--------- - ---
Provide technical assistance and incentives when needed and continue to conduct pre-application conferences and meet with farm worker housing developers on an ongoing
basis.
---- -·-----
Perform outreach to religious institutions to provide
information and educate them regarding the availability of SB 4 provisions to construct housing units and to connect them with potential affordable housing developers.
• Conduct workshops in 2027 and 2029 to explain recent
legislation (SB 4 and AB 1851) and how it can apply to
religious facility properties in Los Banos and
• Invite religious facility owners and local nonprofit
developers to participate.
• Provide informational materials to religious facility property owners on the development process.
2024-2032 Housing Element
By July 2025
Twice per year
Contact developers
and create and
distribute
informational
materials by end of
2025 and annually
thereafter
Annually
Citywide
Target outreach to
landlords in high
resources areas,
such as South Los
Banos
Focus outreach in
South Los Banos.
Expand the use of HCVs in the city
by 10 percent by December 2030,
using 2023 data as baseline.
Conduct one HCV outreach event
annually for a total of 7 events
during the planning period.
Assist with the development of
one farmworker housing project
during the planning period.
Contact at least one religious
institution annually to provide
information on SB 4 provisions.
F7-23
514
Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) Affirmatively Furthering Fair Housing Action Matrix
Geographic
Program Specific Commitment Timeline Targeting Eight-Vear Metrics AFFH: Home Sharing
• Provide technical assistance to religious facility property owners to assist with the project entitlements. - --- ---------- Determine the feasibility of a home-sharing program and apply for funding to implement a home-sharing strategy at least every other year.
Every other year
New Housing Opportunities in Higher Opportunity Areas
Program 2: Adequate Sites
for RHNA
• Maintain an inventory of available vacant and
prospective sites that can accommodate new housing
and update annually. Make this inventory available to
the public and interested developers on the City
website.
• Annually meet with property owners and interested
developers to pursue housing development in the city.
• By July 2025, develop a formal procedure to monitor no net loss in capacity pursuant to SB 166.
• Establish objective development standards for
development to facilitate large-site development in
phases if appropriate. Annually promote objective
development standards to developers active in the city. 2024-2032
By July 2025
By December 2025
·-----------------------
Program 3: By Right
Approval
Program 6: Zoning Code
Amendments
F7-24
• Concurrent with the Zoning Code update to provide July 2025 adequate sites for the RHNA, update the Zoning Code to
address the by-right approval requirements
• Complete Zoning Code Amendments outlined in July 2025 Program 6 to facilitate the development and remove
constraints to the development of housing for special
needs populations.
Citywide
Citywide
Citywide
Citywide
Citywide
Secure funding for a home-sharing
program. Once implemented,
facilitate at least 3 home share
matches annually.
Facilitate the development of
3,132 units including 1,370 units
affordable to lower income
households.
Facilitate the development of
housing units on the four large
sites identified to meet the RHNA.
Facilitate the development of
3,132 units including 1,370 units
affordable to lower income
households.
Facilitate the development of 100
units for special needs populations
during the planning period.
515
Affirmatively Furthering Fair Housing Action Matrix
Geographic
City of Los Banos
Housing Plan
Program Specific Commitment Timeline Targeting Eight-Vear Metrics Program 7: Facilitating
Affordable Housing
Development
• Annually pursue funding at the local, regional, state, and federal levels such as State CDBG, Cal Home, PLHA, and
Project Homekey funds.
• Work with other jurisdictions in Merced County to
create a regional list of affordable housing developers.
Annually conduct outreach to these developers with
information on potential sites, available regulatory
concessions and incentives, and potential funding
opportunities.
• Revise the Density Bonus Ordinance in compliance with state law (Government Code Section 65915) to equally
provide for density bonuses in all zoning districts where residential uses are permitted and to include provisions relative to density bonuses, incentives, and concessions as required by state law.
• Facilitate the development of affordable housing
through the provision of regulatory concessions and
incentives.
• Continue to review permit fees annually to ensure fees do not inhibit the development of affordable housing
and review the City's development impact fees and
revise to be competitive with other cities in the region by July 2025.
• Continue to offer fee reductions for senior and special needs housing units.
Place-based Strategies for Neighborhood Revitalization
Program 9: Housing
Preservation and
Rehabilitation
• Advertise available rehabilitation grant programs on the City's website. Ensure that Code Enforcement has this
information when addressing enforcement cases.
• Annually utilize the Code Enforcement Division to track areas where rehabilitation needs are heightened.
• Annually monitor state and federal funding
opportunities, such as Section 504 loans and HOME
funds.
2024-2032 Housing Element
Annually
July 2025
Starting 2025
Annually
By 2026
Citywide
Citywide with
emphasis on LMI
areas (Central Los
Banos).
Increase the percent of the city's
housing stock that is multifamily
from 12 percent to 15 percent by
December 2030, using 2017-2021
ACS data as a baseline.
If feasible, apply for one funding
opportunity for residential
rehabilitation assistance annually.
Complete one housing conditions
survey during the planning period .
Assist 3 households annually for a
total of 24 during the planning
period through code enforcement
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516
Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032} Affirmatively Furthering Fair Housing Action Matrix
Geographic
Program Specific Commitment Timeline Targeting Eight-Year Metrics Program 11: Community
and Economic
Development
AFFH : Transportation
Master Plan
AFFH: Funding for
Community Revitalization
F7-26
• Explore funding sources and methods to reinstate the
City's residential rehabilitation program by 2026.
• Conduct a housing conditions survey following HCD
guidelines and publish the results on the City website. • Annually contract owners of affordable rental properties to provide information related to maintenance and
rehabilitation. ------
■ Coordinate with the Public Works Department to review the City's Capital Improvement Projects {CIP) to ensure public facilities and infrastructure are supportive of the needs of underserved communities.
• Adopt the Downtown Master Plan that promotes a
pedestrian-bicycle friendly downtown to encourage
active transportation in the core of the city. Apply for funding beyond CIP annually. ------- ■ Complete the Transportation Master Plan and implement actions under the plan related to safe routes to school, accessibility, and mobility.
• At least annually apply for funding for community
revitalization projects such as parks, community
facilities, and pollution burden mitigation. This includes applying for funding for the implementation of the
Downtown Master Plan.
• Continue to allocate funding for improved community
infrastructure, such as improvements to landscaping,
playgrounds, the Ag Sports Complex, and Colorado Ball
Park, street rehabilitation work, wastewater projects,
water line replacements, and solid waste infrastructure improvements, focusing investments in areas of high
segregation and poverty such as Central Los Banos.
FY 2025-2026
2024-2032
Annually
Summer 2025
Annually
Citywide with
emphasis on the
LMI neighborhoods
{Central Los Banos
and Downtown).
Citywide with
emphasis on the
LMI neighborhoods
{Central Los Banos
and Downtown).
Citywide with
emphasis on the
LMI neighborhoods
{Central Los Banos
and Downtown).
Neighborhoods with
low transit access
and low walkability
or rehabilitation efforts {if
reinstated).
Complete 5 CIP projects during the
planning period, including 3 in
Central Los Banos.
Complete at least five projects
under the Transportation Master
Plan during the planning period
including three in LMI
neighborhoods.
Complete at least 3 community
revitalization projects in LMI
neighborhoods during the
planning period.
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Affirmatively Furthering Fair Housing Action Matrix
Geographic
City of Los Banos
Housing Plan
Program Specific Commitment Timeline Targeting Eight-Year Metrics ■ Hold at least one community workshop in North, South, and East Los Banos by December 2026 to identify active
transportation needs.
• Apply for funding to implement projects outlined in the Regional Active Transportation Plan by December 2027.
Implement at least one active transportation project in North, South, and East Los Banos by the end of the
planning period.
• Host at least one employment workshop annually to
assist residents in preparing for local job fairs,
developing resumes, and preparing for interviews.
Workshops should also spread general awareness of
available employment, training, and job preparation
resources through Worknet Merced County.
Tenant Protection and Anti-displacement
Program 1: Regional
Collaboration
• Participate in regional meetings related to housing and homeless issues to pursue funding and coordination
opportunities.
• Partner with the Merced County Human Services Agency
and/or the Merced County Community Action Agency to
proactively address shelter, housing and support
services for people experiencing homelessness.
• Work with the Merced Continuum of Care to update and
implement the 10-Year Plan to End Homelessness during
the planning period. ------
Program 4: Replacement
Housing
Program 8: Preservation
of At-Risk Housing
■ Amend the Zoning Code to address the replacement
housing requirements.
• Monitor affordable units during the planning period.
• Maintain contact with property owners of affordable
housing regarding any change in status/intent or need
for assistance, such as rehabilitation assistance.
• Maintain the AB 987 database to include detailed
information on all subsidized units, including those that have affordability covenants.
2024-2032 Housing Element
Annually
July 2025
Annually
Citywide with
emphasis on the
Rail Trail in
Downtown Los
Banos.
N/A
Citywide
Assist with the completion of the
10-Year Plan to End Homelessness
and identify regional strategies to
address homelessness during the
planning period.
Replace all units as required
pursuant to AB 1397.
Preserve all 584 existing affordable
housing units in Los Banos.
F7-27
518
Merced County Association of Governments
Merced County Multi-Jurisdictional Housing Element (2024-2032) Affirmatively Furthering Fair Housing Action Matrix
Geographic
Program Specific Commitment Timeline Targeting Eight-Year Metrics Program 10: Special
Needs Housing
F7-28
• Utilize recently awarded PHLA funds to work with bridge Annually housing and ensure continuity of services to people
experiencing homelessness or at risk of experiencing
homelessness.
Citywide Preserve housing opportunities
and services for the 20 residents of
the Merced County Rescue Mission
upon its closure.
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F7.4 Quantified Objectives
City of Lo s Banos
Housing Plan
Los Banos has established quantified objectives for housing production and rehabilitation for the Housing Element. These objectives are based upon expected availability of resources to address the City's housing needs, expectations regarding future housing development, as well as prior objectives established in earlier housing plans. Table F7-1 below summarizes the City's quantified objectives for implementing its various programs and actions outlined above.
Table F7-1 Quantified Objectives 2024-2032
Target Income and Affordability Level New Construction Rehabilitation Conservation Extremely Low 375 8 194 ·------ Very Low 344 8 195
Low 493 8 195
Moderate 566
Above Moderate 1,354 --- Total 3,132 24 584 (None At Risk) 2024-2032 Housing Element F7-29
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Merced County Assoc iation of Governments
Merced County Multi-Jurisdictional Housing Element {2024-2032) This page left intentionally blank.
F7-30
521
~<;TATE OF CALIFORNIA - BlJSINESS CONSUMER SERVICES AND HOUSING AGENCY
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
DIVISION OF HOUSING POLICY DEVELOPMENT
651 Bannon Street, Suite 400
Sacramento, CA 95811
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
October 6, 2025
Stacy Souza Elms, Director
Community and Economic Development Department
City of Los Banos
520 J Street
Los Banos, CA 93635
Dear Stacy Souza Elms:
GAVIN NEWSOM Governor
RE: City of Los Banos' 6th Cycle (2024-2032) Revised Draft Housing Element Thank you for submitting the City of Los Banos' (City) revised draft housing element update received for review on August 7, 2025, along with revisions that were received on September 29, 2025. The revisions were posted and made available to the public for seven days prior to review. Pursuant to Government Code section 65585, the California Department of Housing and Community Development (HCD) is reporting the results of its review.
The revised draft element, including revisions, meets the statutory requirements described in HCD's May 13, 2025 review. However, the housing element cannot be found in substantial compliance until the City has completed and submitted the necessary rezones (see below) to make prior identified sites available and accommodate the lower-income Regional Housing Needs Allocation (RHNA). The housing element will substantially comply with State Housing Element Law (Gov. Code, § 65580 et seq) when all necessary rezoning and the element are adopted, submitted to, and approved by HCD, in accordance with Government Code section 65583.2, subdivision (c).
A jurisdiction that did not adopt a compliant housing element within 120 days from the statutory deadline (January 31, 2024) must rezone sites within one year of the statutory deadline and meet requirements pursuant to Government Code sections 65583, subdivision (c)(1)(A) and 65583.2, subdivisions (c), (h) and (i), as applicable. As this year has passed and Program 3 (By-Right Approval) has not been completed to meet all statutory requirements, the housing element is out of compliance and will remain out of compliance until the rezoning has been completed and submitted to HCD. Once the City completes the rezoning, a copy of the resolution or ordinance should be submitted to HCD for review. Following this, HCD will issue correspondence regarding the status of the City's housing element compliance.
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Stacy Souza Elms, Director
As a reminder, the City's 6th cycle housing element was due January 31, 2024. As of today, the City has not completed the housing element process for the 6th cycle. The City's 5th cycle housing element no longer satisfies statutory requirements. HCD encourages the City to expeditiously complete rezones and adopt and submit the housing element to HCD to regain housing element compliance.
Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City must continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available while considering and incorporating comments where appropriate. Please be aware, any revisions to the element must be posted on the local government's website and the City should email a link to all individuals and organizations that have previously requested notices relating to the housing element at least seven days before submitting to HCD.
For your information, pursuant to Government Code section 65583.3, subdivision (b), the City must utilize standards, forms, and definitions adopted by HCD when preparing the sites inventory and submit an electronic version of the sites inventory. While the City has submitted an electronic version of the sites inventory, if any changes occur, any future adopted versions of the element must also submit the electronic version of the sites inventory.
Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant, the Affordable Housing and Sustainable Communities programs, and HCD's Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City will meet housing element requirements for these and other funding sources.
For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the City to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor's Office of Land Use and Climate Innovation at:
https://www.lci.ca.gov/planning/general-plan/quidelines.html. 523
Stacy Souza Elms, Director
Page3
HCD appreciates the coordination and effort of the housing element update team to prepare the housing element as part of the multi-jurisdictional housing element process and looks forward to receiving the City's adopted housing element. HCD welcomes the opportunity to provide technical assistance as the City completes its rezoning, including reviewing draft documents. If you have any questions or need additional technical assistance, please contact Andrea Grant, of our staff, at [email protected].
Sincerely,
Paul McDougall
Senior Program Manager
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ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LOS BANOS, ADDING ARTICLE 49 TO TITLE 9, CHAPTER 3 OF THE LOS BANOS MUNICIPAL CODE -
REGIONAL HOUSING NEEDS ASSESSMENT OVERLAY DISTRICT
WHEREAS , State Housing Element Law (Government Code Sections 65580 et seq.) requires that the City of Los Banos City Council adopt a Housing Element for the eight year period 2024-2032 to accommodate the City of Los Banos' regional housing need allocation (RHNA); and WHEREAS, to comply with State Housing Element Law, the City of Los Banos has prepared the 6th Cycle 2024-2032 Housing Element in compliance with State Housing Element Law and has identified sites that can accommodate housing units meeting the City's RHNA; and WHEREAS, on October 22, 2025 the Planning Commission conducted a duly and properly noticed public hearing regarding the proposed Housing Element, reviewed the Housing Element and all pertinent maps, documents and exhibits, including HCD's findings, the City's response to HCD's findings, the staff report, and all attachments, and oral and written public comments and recommended approval of the Housing Element to the City Council; and WHEREAS, on November 5, 2025, the City Council adopted the City's 6th Cycle Housing Element 2024-2032 for the eight-year period in compliance with State law; and WHEREAS , the adopted Housing Element includes Goals, Policies, and Programs that identifies goals, policies, and programs the City of Los Banos is responsible for enabling the production of housing by reducing regulatory barriers, providing incentives, and supporting programs that create or preserve housing, especially for vulnerable populations; and WHEREAS, Program 3: By-Right Approval for 4th and 5th cycle reused sites directs the City to allow development by-right pursuant to Government Code Section 65583.2(c) when 20% or more of the residential units are affordable to low and very-low income households for sites identified on previous Housing Element sites inventories; and WHEREAS , to comply with this Government Code Section, the City is establishing by Ordinance the Regional Housing Needs Assessment Overlay District covering those 4th and 5th cycle reused sites to allow development by-right when 20 % or more of the residential units are affordable to lower income households; and
WHEREAS, the Planning Commission, at a properly noticed public hearing on October 22, 2025 carefully considered all of the information presented to it, including the staff report and information submitted at the public hearing by interested persons, and adopted Resolution No. 2025-29 a resolution recommending that the City Council adopt an ordinance establishing the Regional Housing Needs Assessment Overlay District; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LOS BANOS ORDAINS AS FOLLOWS:
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SECTION 1. Article 49, Regional Housing Needs Assessment Overlay District, shall be added to Title 9, Chapter 3, of the Los Banos Municipal Code as follows:
Article 49. Regional Housing Needs Assessment Overlay District Sec. 9-3.4901 Purpose.
The general purpose of this Article is to facilitate the development of affordable housing while promoting infill development on sites previously identified on housing inventories in the City's 4th and 5th Housing Element Cycles. Only those projects that have 20%) of the total number of units deed restricted for low- and very-low income units, and does not include a subdivision are eligible for by-right development in this Overlay District.
Sec. 9-3.4902 Applicability.
The Regional Housing Needs Assessment Overlay District is applicable to those sites identified in the table below. These sites are the reused sites in the 4th and 5th Housing Element Cycles. These sites are identified in Table F6-13 of the 6th Cycle Housing Element.
Address APN Acres Land t:se Zoning Existing Total
Use Units
Westminster Way 4240 10005 28.5 Low Density R- 1 Vacant 144 Place Rd 424010006 24.31 Low Density R-1 Agriculture 123 - Place Rd 424010006 19.45 Medium _Den~t_y_ _ __ R-2 Agriculture 272 --- -- ----·-- - Canal Farm Ln 428150001 1.77 Me~_ium Den~-- --R-:~. Vacant 24 ·- --- -- - ~- -- - ----------- -·---------- - - · Mercey Spring~_!!!f. __ 428030006 1 Medium Density R-2 Vacant 14 ·-
7th Street 082420047 0.75 Medium Density R-2 Vacant 10
_ Westminster Wa_y __________ 424010005 28.5 Medium Densi!Y .. _ R-2 Vacant 399 Gilbert Gonzalez Jr Dr 083100084 8.48 High Density R-3 Vacant 177 G Street 025114011 0.92 Mixed Use R-C Vacant 13
G Street _____ _ _ _. ___ 025114012 0.92 Mixed Use R-C Vacant 13 ------- --- - - Hen!!_Miller Pl?.!!! ______ <;)]5072036 4.77 Mixed Use R-C Vacant 71 ·- •· .. ·----~- H Street 025054006 2.02 Mixed Use R-C Vacant 30 ···-- ------------ .. ------------ - San Luis Street 428121012 5.48 High_ Density R-3 Vacant 115 Total 126.87 1,405
Section 9-3.4903 By-Right Development.
The City shall implement by-right development for the sites identified in Section 9-3.4902 when a developer builds a project with at least 20% affordable units deed restricted for low- and very-low income units and no subdivision is proposed. Pursuant to Government Code Section 65583.2(c), by right development means the following are not required for development:
1. Conditional Use Permit;
2. Planned Unit Development Permit;
3. Design Review other than Objective Development Design Standards; or
4. Other discretionary, review or approval that would constitute a "project" as defined in Section 2100 of the Public Resources Code (California Environmental Quality Act "CEQA").
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Section 9-3.4904 Review of Application.
A. For ministerial plan permit applications listed in this section, Community and Economic Development Director, or designee, without notice or hearing, shall consider the application ministerially without discretionary review. When the application is in compliance with the relevant standards, the permit shall be issued. The decision may be appealed to planning commission only by the applicant or the owner of the subject property.
B. The application for the ministerial plan permit shall be reviewed for conformance with objective standards established by the General Plan, applicable Specific Plans, Zoning Code, design standards, and other adopted standards.
C. As provided by Government Code Section 65583.2(i), an eligible project is exempt from the California Environmental Quality Act.
D. Permanent supportive housing shall be reviewed consistent with the prov1s1ons of Government Code Sections 65650 et seq.
Low barrier navigation centers shall be reviewed consistent with the provisions of Government Code Sections 65650 et seq.
Section 9-3.4905 Required Findings.
In granting a ministerial plan permit, the Community and Economic Development Director, or designee, shall issue a letter of approval and shall make the following findings:
1. That the project is eligible for by-right approval under state law.
2. That the project complies with all applicable objective zoning and other adopted standards, including but not limited to design review standards.
3. That the project is granted subject to such applicable conditions as required to meet the standards of the use and zone in which it is located and to comply with applicable design standards.
Section 9-3.4906 Interpretation.
If any portion of this Article conflicts with any applicable state law, state law shall supersede this Article. Any ambiguities in this Article shall be interpreted to be consistent with state law. Statutory references in this ordinance include successor provisions.
SECTION 2. To the extent that the terms and provisions of this Ordinance may be inconsistent or in conflict with the terms or conditions of any prior City ordinance, motion, resolution, rule or regulation governing the same subject, the terms of this Ordinance shall prevail with respect to the subject matter thereof and such inconsistent or conflicting provisions of prior ordinances, motions, resolutions, rules or regulations are hereby repealed. 527
SECTION 3. If any section, subsection, subdivision, paragraph, sentence, clause or phrase added by this Ordinance, or any part thereof, is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof irrespective of the fact that any one or more subsections, subdivisions, paragraphs, sentences, clauses or phrases are declared unconstitutional, invalid or ineffective.
SECTION 4. The proposed amendments to the Los Banos Municipal Code do not propose any changes to City policies or regulations that would result in a direct or indirect physical environmental impact; therefore it has been determined that this ordinance amendment is covered by the general rule that the California Environmental Quality Act applies only to projects which have the potential for causing a significant effect on the environment pursuant to CEQA guidelines section 15601(b)(3) and is not subject to environmental review.
SECTION 5. This Ordinance shall go into effect and be in full force and operation thirty (30) days after its final passage and adoption. The City Clerk shall certify to the adoption of this Ordinance and cause the same to be posted and published once within fifteen days after passage and adoption as may be required by law; or, in the alternative the City Clerk may cause to be published a summary of this Ordinance and a certified copy of the text of this Ordinance shall be posted in the Office of the City Clerk five days prior to the date of adoption of this Ordinance; and, within fifteen days after adoption, the City Clerk shall cause to be published, the aforementioned summary and shall post a certified copy of this Ordinance, together with the vote for and against the same, in the Office of the City Clerk.
Introduced by Council Member ____ and seconded by Council Member ___ ___ on the __ day of _____ , 2025.
Passed on the __ day of _ ___ ~ 2025 by the following vote:
AYES: Council Members
NOES:
ABSENT:
APPROVED:
Michael Amabile, Mayor
ATTEST:
Lucille L. Mallonee, City Clerk
528
LOsBanos
COMMUNITY AND ECONOMIC DEVELOPMENT DEPARTMENT
Date: October 24, 2025
Regarding: Notice of Public Hearing
Proposal: City of Los Banos Draft Sixth Cycle Housing Element Update and RHNA Overlay District Ordinance
NOTICE IS HEREBY GIVEN that the City Council of the City of Los Banos will conduct a public hearing to consider approving the Sixth Cycle Multi-Jurisdictional Housing Element (2024-2032) and approving a new ordinance to implement the Housing Element establishing a Regional Housing Needs Assessment (RHNA) Overlay District. The Housing Element is one of the elements of the General Plan that presents a plan for meeting the community's housing needs. It addresses constraints to housing development; available land and resources; housing needs; fair housing; and goals, policies, and programs to provide for housing to meet the needs of households at all income levels.
The Los Banos Planning Commission held a public hearing on Wednesday, October 22, 2025, for the purpose of considering the above mentioned items. At the completion of the public comment, the Planning Commission recommended approval of the Sixth Cycle City of Los Banos Housing Element and RHNA Overlay District Ordinance to the Los Banos City Council.
The Draft Multi-Jurisdictional Housing Element is available for public review. Please visit the project website to download the documents and see other information about the project:
https://mercedmihe.com/
A PUBLIC HEARING on this matter will be held at the next scheduled meeting of the Los Banos City Council on Wednesday, November 5, 2025 at 6:00 p.m. in the Council Chambers of Los Banos City Hall located at 520 "J" Street. Questions regarding the above-referenced item may be directed to Stacy Souza Elms, Community and Economic Development Director, at City Hall or at (209) 827- 2433.
All persons are invited to be present at the public hearing. Written and oral testimony is invited.
Notice is hereby further given that if you challenge the above-described item in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this Notice, or in written correspondence delivered to the Planning Commission at, or prior to, the public hearing per Government Code Section 65009.
Additional information may be obtained from Community & Economic Development Department at 520 J Street, Los Banos, California. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Office of the City Clerk at (209) 827-7000. Notification at least 72 hours prior to the public hearing will enable the City to make reasonable arrangements to allow participation at this hearing
THE CITY OF LOS BANOS
Stacy Souza Elms
Community and Economic Development Director
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