DATE:
March 25, 2025
CATEGORY:
Consent
DEPT.:
Community Development
TITLE: Housing Element Annual Progress Report
(2023-2031 Housing Element)
RECOMMENDATION
Accept the 2024 Annual Progress Report on the 2023 -2031 Housing Element and direct staff to submit the report to the California Department of Housing and Community Development and the Governor’s Office of Planning and Research (Attachment 1 to the Council report).
BACKGROUND
Housing Element and Annual Progress Report
The Housing Element is one of the seven mandated General Plan elements. It is the only General Plan element subject to mandatory review by a s tate agency, the California Department of Housing and Community Development (HCD). The Housing Element’s purpose is to examine a jurisdiction’s housing needs; create, update, and guide housing policies; and identify locations to accommodate the City’s Regional Housing Need Allocation (RHNA).
On April 11, 2023, the City Council adopted the Sixth Cycle Housing Element, which covers the eight-year planning period of 2023 to 2031. This adoption was the culmination of almost two years of work devoted to preparing the update.
Government Code Section 65400 requires cities to prepare an Annual Progress Report (APR) on Housing Element implementation, using forms and definitions adopted by HCD. These reports are submitted to HCD and the Governor’s Office of Planning and Research. They provide data on annual building permit activity, overall progress in meeting the City’s RHNA, and status of Housing Element program implementation. There was a key change to unit reporting that staff implemented for the Annual Progress Reports (APRs) in the Sixth Cycle Housing Element cycle.
In the previous Housing Element cycle, the City reported net new units (proposed units minus demolished units) for RHNA; but, per HCD direction, all new units will be reported for RHNA.
There is only one minor change to the APR form from the previous year —all instances of SB 35 have been updated to SB 423, which went into effect January 1, 2024, and extends the sunset provision for and makes other substantive changes to SB 35.
Housing Element Annual Progress Report (2023-2031 Housing Element) March 25, 2025
Regional Housing Need Allocation
State law requires local jurisdictions to provide for their fair share of regional housing needs. Per Government Code Section 65584, HCD is mandated to determine the s tatewide housing needs and provides an allocation of housing units to councils of government (COGs) across the state. In the Bay Area, the housing unit allocation is provided to the Association of Bay Area Governments (ABAG).
ABAG is the Bay Area’s metropolitan planning organization and is responsible for assigning the Bay Area’s RHNA to each city and county in the nine -county Bay Area. Housing Element law acknowledges that in order for the private market to adequately address the housing needs of California, local governments must adopt plans and regulatory systems that provide opportunities for (and do not unduly constrain) housing development. The local jurisdictions are, therefore, required to zone adequate developable land to build these units and to take other actions to facilitate housing production across incomes.
The City’s Current RHNA allocation for 2023-2031 is 11,135 units, which is a substantial increase in the number of units from the Fifth Cycle allocation of 2,926 units. This reflects the increasing need for housing units statewide. The RHNA allocation methodology assigns units by income category—specifically, units serving very -low-, low -, moderate -, and above -moderate-income households. Households are categorized in these income groups based on household size and percentages of the Area Median Income (AMI). These income limits are established annually by HCD. The 2024 AMI for Santa Clara County for a household of four was $184,300 (see Attachment 2).
Table 1: City of Mountain View Sixth Cycle RHNA
Income
Group
Area Median
Income % Units
Very Low 0-50% 2,773
Low 51%-80% 1,597
Moderate 81%-120% 1,885
Above Moderate 120%+ 4,880
TOTAL 11,135
Environmental Planning Commission Recommendation
The 2024 Housing Element APR was presented to the Environmental Planning Commission (EPC) for review on February 19, 2025 . At the meeting, the EPC unanimously recommended that the City Council accept the 2024 APR. Several Commissioners voiced concerns and raised questions related to the rate of progress towards achieving the City’s RHNA numbers.
Housing Element Annual Progress Report (2023-2031 Housing Element) March 25, 2025
Annual Progress Report
As noted above, the annual progress report provides the s tate with information on the City’s yearly building permit activity between January 1, 2024 and December 31, 2024 for new housing units (see Table 2 below and Attachment 1, Table A2). The progress report also includes Housing Element policy and program implementation status (see Attachment 1, Table D).
Several Housing Element implementation items are summarized below, including any items completed in the reporting year. Given that this is the second year of the Sixth Cycle Housing Element, many programs are still in progress or have not yet begun.
1. Residential Building Permit Activity and RHNA Allocation
In 2024, the City issued building permits for 217 new residential units , 1 101 of which are
very-low-income units; 17 are low-income units; 18 are moderate-income units; and 81 are above-moderate-income units (see Table 2 and Attachment 1, Tables A2 and B).
Table 2: Sixth Cycle (2023-2031) RHNA Progress—Building Permits Finalized
Affordability by
Household Income 20232 2024 Total Units to
Date
Percent of
RHNA
Allocation
Very Low
0%-50% AMI 142 101 243 8.7%
Low
51%-80% AMI 95 17 112 7.0%
Moderate
81%-120% AMI 147 18 165 8.8%
Above Moderate
121%+ AMI 878 81 959 19.7%
TOTAL 1,262 217 1,479 13.3%
The City of Mountain View continues to experience a high level of residential development activity. Currently, there are 1,646 residential units (1,245 net new residential units) under construction; approximately 2,360 residential units (2,309 net new residential units) approved but not yet under construction; and 3,982 residential units (3,923 net new units)
1 Units are reported based on total project new units, while demolished units are listed separately. This direction was provided in the 2022 and 2023 Annual Progress Report Instructions, and the change was implemented by staff in the 2023 APR. 2 Includes the period from June 30, 2022 through December 31, 2023.
Housing Element Annual Progress Report (2023-2031 Housing Element) March 25, 2025
under entitlement review, including 3,527 residential units (3,473 net new units) with applications deemed complete.3
2. No Net Loss
Senate Bill (SB) 166, also known as the No Net Loss Law ( codified at Government Code Section 65863) , among other provisions, requires local jurisdictions to maintain an inventory of sites zoned to accommodate their share of the region’s housing needs at all income levels. In other words, if a site is developed with fewer units at the specified income level than identified in the Housing Element, the jurisdiction must identify (and rezone, if necessary) additional sites to make up for the shortfall.
Program 1.11 of the Housing Element includes instructions for monitoring no net loss, including the preparation of a “provisional inventory” that will give the City advance notice of impending approvals that would reduce the inventory below the RHNA at any income level.
4 In addition, the program requires the City to account separately for lower- income capacity in the highest-opportunity areas of the City—south of El Camino Real and the area around downtown (bounded by El Camino Real, Mariposa Avenue, Central Expressway, and the State Routes 85 and 237).
The Official and Provisional Inventories are shown in Table 3. No individual income level is below 5% in either the official or provisional inventories ; therefore, it is not currently necessary to identify additional opportunity sites or rezonings to meet the City’s RHNA requirements. The current inventory, updated as of January 1, 2025, can be found on the City’s Housing Element webpage.
5 3 Table A of the APR form does not report on all residential projects currently under entitlement review. “Application submitted” per the Department of Housing and Community Development’s guidance means an application submittal that has been determined complete by the jurisdiction. The remaining units have submitted applications but had not yet been deemed complete as of January 1, 2025.
4 The program stipulates that lower -income sites in the inventory can be converted to moderate- income sites. Therefore, the identification of new sites to address no net loss is only begun when the lower-income inventory is below 5% after reallocating sites to the moderate-income category.
5 https://www.mountainview.gov/our-city/departments/community-development/planning/regulations/housing-element Housing Element Annual Progress Report (2023-2031 Housing Element) March 25, 2025
Table 3: No Net Loss, Official, and Provisional Inventories
Affordability by
Household Income RHNA
2024
Inventory*6
(Official/
Provisional)
2024 Project
Updates
(Official/
Provisional)
Inventory on
January 1,
2025
(Official/
Provisional)
Percent
Buffer
(Official/
Provisional)
Lower (0% to 80%
AMI) 4,370 4,927
5,292
62 -97
4,989
5,195
14.2%
18.9%
Lower, South of El
Camino Real and
Downtown Area
830 1,049
1,066
0 4
1,049
1,070
26.4%
28.9%
Moderate 1,885
2,128
2,028
46 134
2,174
2,162
15.3%
14.7%
Above Moderate 4,880 8,827
9,705
208
153
9,035
9,858
85.1%
102.0%
3. Housing Policies and Programs
The Housing Element includes policies and programs that are intended to remove constraints to housing production, produce housing for all income levels, provide housing assistance, address displacement and homelessness, and create solutions for housing through partnerships and other means. Table D in Attachment 1 summarizes current measures that have been completed in calendar year 2024 to support the Housing Element’s goals with recent efforts summarized below.
Goal 1: An increase in the quantity and diversity of housing options, focusing on active nodes, and walkable neighborhoods with amenities and services.
a. Updated Zoning Regulations—In March 2024, the City updated the Z oning Ordinance and amended the El Camino Real Precise Plan to allow emergency shelters by right to complete Housing Element Program 1.1(f). In November 2024, the City updated the Z oning Ordinance and certain Precise Plans to eliminate minimum parking standards for residential uses to complete Housing Element Program 1.2(b).
b. Gatekeeper Process —The Gatekeeper process is an authorization process to permit legislative amendments (Zoning/Precise Plan or General Plan amendments) that could result in private development projects that support the City’s housing priorities. In June 2024, staff accepted Gatekeeper applications, which completed Housing Element Program 1.3(g). On September 10, 2024, the City held an authorization hearing for these
6 Inventory counts do not include Accessory Dwelling Units.
Housing Element Annual Progress Report (2023-2031 Housing Element) March 25, 2025
applications, where the City Council authorized two projects to proceed with formal applications (one mixed -use commercial/residential project and one commercial -only project).
c. Monitor and Promote Accessory Dwelling Units, Junior Accessory Dwelling Units and SB 9 Developments—An ADU monitoring survey to collect data from project applicants to understand ADU occupancy was created and distributed on December 13, 2024. This action completes work towards the implementation of Housing Element Programs 1.7(a)-(c).
Goal 2: An inclusive and equitable community with available and accessible housing assistance.
a. Reasonable Accommodation—An informational handout was posted to the Development Permits website in June 2024 consistent with Housing Element Program 2.3.
b. Mediation and Fair Housing Programs —Staff continues to implement Program 2.5 by hosting ongoing outreach/education events of housing programs to tenants, local property owners, and managers on a biweekly basis. These events utilize multilingual services.
Goal 3: A comprehensive suite of housing opportunities and services to prevent, respond to, and address displacement and homelessness.
a. Homelessness Prevention and Services for the Unhoused— The City implements Program 3.1 as it provides annual support to Community Services Agency (CSA), LifeMoves, and other partner agencies. In 2024, the City provided funding to CSA for housing -related services and outreach to individuals living in vehicles. Additionally, a $1,000,000 capital funding agreement to CSA for capital improvements to current and future facilities was authorized.
b. Displacement Prevention and Mitigation— The City has developed funding strategies for affordable housing preservation by establishing an acquisition/preservation fund and evaluated the efficacy of the Tenant Relocation Assistance Ordinance (TRAO) by conducting two stakeholder meetings and holding a Council Study Session on December 17, 2024 .
These items complete two milestones in Program 3.2.
Goal 4: A City that is an effective steward of housing solutions through funding, advocacy, partnerships, and community outreach and engagement.
a. Development Streamlining and Processing Revisions —Multiple items were identified to streamline review of affordable housing development per Program 4.1(a). In June 2024, the Council NOFA Review Committee discussed the NOFA process and provided feedback to streamline the process, such as engaging with relevant consultants, improving application accessibility, analyzing different funding methods , and providing training Housing Element Annual Progress Report (2023-2031 Housing Element) March 25, 2025
opportunities to key staff. These are now being implemented. City departments have continued to collaborate to implement the 2021 Development Review Assessment (“Matrix Study”). An online permitting system was launched in April 2023 for building permit applications. Planning and Public Works permits were added in July 2024. This new portal allows for a standardized development permit -related comment letter, another Matrix Study recommendation in the program.
b. Funding for Affordable Housing Units —The City evaluated funding sources for subsidized housing consistent with Housing Element Program 4.3. The City has secured grants or funding from the state’s Local Housing Trust Fund (LHTF) grant, the state’s Permanent Local Housing Allocation (PLHA) grant, federal HOME Investment Partnerships American Rescue Plan Program (HOME-ARP) funding, and federal Community Project Funding (CPF). Other funding options include a developer loan for units in the affordable housing pipeline and investment in the BMR Downpayment Assistance Pilot Program. Through the County Collaborative, an update to the Housing Impact Fee is ongoing. The funding sources begin work on Housing Element Program 4.4 to secure funding for pipeline projects. The City continues its work to secure additional funding, including discussions with nonprofits and foundations to evaluate potential funding partnerships.
ENVIRONMENTAL REVIEW
Annual Progress Report
The California Environmental Quality Act (CEQA) applies only to projects that have the potential for causing a significant effect on the environment. This action is not a project pursuant to Public Resources Code Section 21065 and CEQA Guidelines Section 15378.
NEXT STEPS
Following consideration by the City Council, staff will forward the 2024 Housing Element APR to HCD and the Governor’s Office of Planning and Research (OPR).
Housing Element Annual Progress Report (2023-2031 Housing Element) March 25, 2025
Housing Element Actions Anticipated in 2025
The Housing Element establishes a multi-year program of implementation actions. Programs anticipated to be in process in the upcoming year are summarized in Table 4 below:
Table 4: 2025 Programs in Progress
Program Description Status/Timeline
Program 1.1—Ensure
Zoning and General Plan
for all sites is consistent
with the Housing Element
Site inventory and pipeline
projects
Rezone areas to allow
residential or allow at higher
densities, including small
commercial areas, the
Transit Center, and Moffett
Boulevard.
Moffett Boulevard Precise Plan:
In progress.
Other Areas:
New Business item presented to EPC
and City Council in Q1 2025.
Adoption hearings are tentatively
scheduled for Q3/Q4 2025.
Housing Element Deadline:
December 31, 2025
Program 1.2 and 1.3.d—
Eliminate Minimum
Parking /Review and
Update Ordinance and
Precise Plan
Adopt a transportation
demand management (TDM)
ordinance and an enhanced
TDM criteria.
The TDM framework has been
developed and will be reviewed at
Bicycle/Pedestrian Advisory
Committee, EPC, Council
Transportation Committee, and
Council in Q1/Q2 2025. Adoption
hearings are tentatively scheduled
for Q4 2025.
Housing Element Deadline:
December 31, 2026
Programs 1.4 and 2.6—
Religious and Church
Assembly Sites for
Housing/Affirmatively
Further Fair Housing
Both programs aim to
increase affordable housing
units in areas south of El
Camino Real, which are
considered the City’s highest
opportunity neighborhoods.
Outreach and site analysis completed
during the 2024 reporting period.
Study Sessions at EPC and City
Council (after 2024 reporting period)
to discuss program implementation
and the density approach have been
completed.
Housing Element Deadline:
December 31, 2024
Housing Element Annual Progress Report (2023-2031 Housing Element) March 25, 2025
Program Description Status/Timeline
Program 1.8—Park Land
Ordinance Update
Complete Phase 2 of the
Park Land Dedication
Ordinance update and
adoption of Parks and
Recreation Strategic Plan.
Draft plan in progress. Draft plan
anticipated to be reviewed by the
Parks and Recreation Commission in
Q2 2025 and a Council Study Session
in Q3 2025. Adoption hearings are
tentatively scheduled for Q4 2025.
Housing Element Deadline:
December 31, 2024
Program 1.8—Park Land
Ordinance Update
Adopt the nexus study,
reduced fees, alternate
mitigations and/or other
programs to reduce costs on
residential development.
Item is in progress and anticipated to
be completed prior to the Housing
Element deadline.
Housing Element Deadline:
December 31, 2025
Program 3.1—
Homelessness Prevention
and Services for the
Unhoused
Develop Homelessness
Prevention and Services for
Unhoused Strategy
Draft Homeless Response Strategy
with implementation and
expenditure plan is complete and
was reviewed at a City Council Study
Session in Q1 2025. Adoption
hearings are tentatively scheduled
for Q2 2025.
Housing Element Deadline:
December 31, 2024
Program 3.2—
Displacement Prevention
and Mitigation
Study amendments to the
Mobile Home Rent
Stabilization Ordinance
(MHRSO).
MHRSO review is complete. While
after 2024 reporting period, Council
introduced the MHRSO (first reading)
on March 13, 2025, and adoption
(second reading) is scheduled for
March 25, 2025.
Housing Element Deadline:
March 31, 2025
Program 3.2—
Displacement Prevention
and Mitigation
Develop community
ownership action plan
(COAP).
COAP consultant was selected in
September 2024 and will continue
developing the plan in 2025.
Housing Element Deadline:
June 30, 2025
Program 4.3—Financial
Support for Subsidized
Housing
Complete evaluation of new
funding sources for
subsidized housing, including
increasing housing impact
fees.
A regional Nexus Study is underway
to study housing and commercial
linkage fee requirements. Adoption
hearings are tentatively scheduled in
Q3 2025.
Housing Element Annual Progress Report (2023-2031 Housing Element) March 25, 2025
FISCAL IMPACT
There is no fiscal impact associated with accepting the 2024 APR for the 2023 -2031 Housing Element.
LEVINE ACT
California Government Code Section 84308 (also known as the Levine Act) prohibits city officials from participating in any proceeding involving a “license, permit, or other entitlement for use” if the official has received a campaign contribution exceeding $500 from a party, participant, or agent of a party or participant within the last 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to- play-limits-and-prohibitions.html
Please see below for information about whether the recommended action for this agenda item is subject to or exempt from the Levine Act.
EXEMPT FROM THE LEVINE ACT
☒ General policy and legislative actions
Housing Element Annual Progress Report (2023-2031 Housing Element) March 25, 2025
PUBLIC NOTICING
The City Council’s agenda is advertised on Channel 26, and the agenda and this report appear on the City’s website. Electronic notices were sent to those who signed up on the Housing Element website to receive information regarding updates for Housing Element program implementation.
A newspaper notice has been circulated for this meeting.
Prepared by:
Madelyn Faul
Assistant Planner
Krisha Penollar
Senior Planner
Eric Anderson
Advanced Planning Manager
Approved by:
Christian Murdock
Community Development Director
Audrey Seymour Ramberg
Assistant City Manager
MF-KP-EA/4/CAM
832-03-25-25CR
204429
Attachments: 1. Annual Progress Report
2. 2024 AMI for Santa Clara County