March 24, 2026
Agenda Item No. 9
TO:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:
Jaime Murillo, Community Development Director - 949-644-3209, [email protected] PREPARED BY:
Melinda Whelan, Assistant Planner - [email protected], 949-644-3221 TITLE:
2025 General Plan and Housing Element Annual Progress Reports (PA2025-0008) ABSTRACT:
California Government Code Section 65400 requires the City of Newport Beach to prepare and submit an annual report on the status of the City’s General Plan and progress in its implementation, with a focus on the Housing Element. The Planning Commission reviewed and unanimously supported the 2025 General Plan and Housing Element Annual Progress Report (APR) at its meeting on March 5, 2026. For the City Council’s consideration is the review and authorization to submit the APR to the State Office of Land Use and Climate Innovation (LCI) and to the State Department of Housing and Community Development (HCD).
RECOMMENDATIONS:
Find the preparation, review and submission of the 2025 General Plan and Housing Element Annual Progress Report are not subject to the California Environmental Quality Act (CEQA) as the actions are not a project as defined by Section 15378(b)(2) of the Public Resources Code; Review the 2025 General Plan and Housing Element Annual Progress Report; and Authorize submittal of the 2025 General Plan and Housing Element Annual Progress Report to the State Office of Land Use and Climate Innovation and to the State Department of Housing and Community Development.
DISCUSSION:
2025 General Plan Annual Progress Report
California Government Code Section 65400 and the City’s General Plan Implementation Program Imp 1.3 require the preparation of an annual report on the status and progress of the General Plan implementation. Following City Council review, the 2025 APR will be sent to LCI, formerly the Office of Planning and Research (OPR), and the Department of Housing and HCD, as required by State law. There is no standardized form or format for the preparation of the APR; however, the format and content follows the guidance provided by the APR Memo Reporting Year 2025 and the HCD APR Instructions for Calendar Year 2018-2025, including the updated APR form specific to the Housing Element portion.
The APR (Attachment A) reflects the status of the implementation measures between January 1, 2025, and December 31, 2025 (Reporting Period), and does not reflect changes or updates that may have been directed since. The Newport Beach General Plan was adopted in November 2006 pursuant to available guidelines provided by the State at that time, pursuant to Government Code Section 65040.2 and consistent with Section 65400(a)(2). Since initial adoption, the City has updated the Housing and Circulation Elements in 2022, the Noise Element in 2023, and the Land Use Element in 2024. The APR includes a discussion of the status of each General Plan Implementation Program (Appendix A of Attachment A), a comprehensive status update on each Housing Element Implementation Program (Appendix B of Attachment A), and an analysis on the degree to which the City’s existing General Plan complies with criteria identified in LCI’s General Plan Guidelines. Staff believes the City has continued to achieve substantial progress in the implementation of the General Plan and especially the Housing Element. Some of the progress is evident in completed tasks such as the comprehensive Zoning Code Update in 2010; however, most progress is illustrated through ongoing tasks and long-term coordination efforts, with updates highlighted for 2025. The APR also summarizes identified priorities for land use decision making for the reporting period.
General Plan Update
The City embarked on a comprehensive update of the General Plan in 2019, but pivoted in 2020 to focus on preparing the 6th Cycle Housing Element (Housing Element), as well as an update to the Circulation Element.
The City continued to focus its efforts, which ultimately led to the City Council’s initial adoption of the Housing Element on February 8, 2022. After several reviews and revisions with HCD, the City Council re-adopted a refreshed Housing Element on September 13, 2022. The update is a comprehensive statement of the City’s housing policies and serves as a guide for the implementation of these policies. As required by State law, the update examines current housing needs, estimates future housing needs, and establishes goals, policies, and programs pertaining to those needs while demonstrating the capacity to accommodate the City’s Regional Housing Needs Assessment (RHNA) allocation of 4,845 new housing units. Housing programs are responsive to current and future needs and established within the context of available community, state and federal economic and social resources, realistic quantified housing objectives, and affirmatively furthering fair housing (AFFH). On October 5, 2022, HCD determined the Housing Element is in full statutory compliance.
On October 25, 2022, the City Council adopted an updated Circulation Element that included several refreshed policies that are compliant with State law. For example, the updated Circulation Element contains policies related to complete streets and vehicle miles traveled (VMT). The policies were reviewed by the community through extensive outreach and remain consistent with the community’s vision.
Simultaneously with the efforts to update the Housing Element and Circulation Element, the General Plan Update Steering Committee (GPUSC) began meeting in July 2022 to restart the comprehensive update efforts. In November 2022, the City Council appointed a 30-member General Plan Advisory Committee (GPAC) to help represent the community and guide potential policy changes.
In July 2023, the City contracted with Dudek to provide consulting services on the comprehensive General Plan Update. “Phase One” outreach for the comprehensive update to the General Plan was conducted from March 2024 to June 2024. The Phase One Outreach Summary was published in July 2024 and is available on the City’s project website. “Phase Two” outreach was conducted from October 5, 2024, to January 5, 2025. The Phase Two Outreach Summary was published in March 2025.
Starting in August 2025, several Draft General Plan Elements were published online for review. The most recent completed phase, “Phase Three” included an in-person General Plan Review open house on October 21, 2025, and a complementary virtual open house on October 22, 2025. The presentation made virtually is available online here, and provides an overview of the hundreds of responses from Newport Beach residents and community members, collaboration with the GPAC, background analysis from Phases One and Two, and how this informed the draft elements for the 2050 General Plan. Comments on these drafts were accepted through November 17, 2025.
Information regarding the General Plan update efforts to date, including the initiation, evaluation, and overall process, draft elements, etc. can be found on the City’s project website and at Newport, Together.
Housing Element Implementation
The comprehensive General Plan update effort is on a parallel track alongside the City’s implementation of the Housing Element. In November 2023, the City Council adopted an amendment to the Noise Element to adjust the policy framework surrounding housing proximate to John Wayne Airport. In July 2024, the City Council adopted an amendment to the Land Use Element to revise the necessary goals and policies to support housing production in the focus areas identified by the Housing Element. The Noise Element revisions can be found in Exhibit A of Resolution No. 2023-72 and the Land Use Element revisions can be found in Exhibit A of Resolution 2024-51.
Additionally, on September 24, 2024, the City Council adopted Zoning Code Amendments required to implement the Housing Element. These amendments included adding Housing Overlays into the Zoning Code (NBMC Section 20.28.050). The details are provided below in the Policy Actions 1A through 1G Related to Housing Implementation Section of this staff report. 2025 Housing Element Annual Progress Report
Government Code Section 65400 requires that each city, including charter cities, provide an annual progress report on the status of the Housing Element of its General Plan. HCD has provided mandatory forms (Excel spreadsheets) and definitions for the housing portion of the report. The forms include six large tables (Tables A through F). Due to the large size and format of the tables, only a summary of the contents of each table is provided in the attached report. The complete forms will be made available online at https://www.newportbeachca.gov/APR and they will be submitted to HCD in electronic format.
The annual report requires the City to report all housing applications submitted in 2025 including building permits (Table A in APR) and all housing applications with a net increase in units approved and finalized in 2025 (Table A2 in APR). Table B includes the number of units for which permits were issued to demonstrate progress in meeting the City’s RHNA goal. The Southern California Association of Governments (SCAG) prepared the RHNA for each jurisdiction within the SCAG region. SCAG, through the RHNA process, assigned Newport Beach a share of the region’s new housing units needs for the 2021 - 2029 planning period to be a total of 4,845 new dwelling units further broken down by income category.
Housing production towards the 6th Cycle RHNA allocation is best summarized by Table B, which is included in the report and excerpted below, including above-moderate, moderate- and lower-income units.
Table B Summary: Regional Housing Needs Allocation Progress Permitted Units Issued by Affordability
Income Level
RHNA
06/30/2021-10/14/2021
2021
2022
2023
2024
2025
2026
2027
2028
2029
Total to Date
Very Low
1,456
13 8
11 9
15 56
Low
930
21 14
18 28
18 99
Moderate
1,050
3 1
11 13
19 12
59 Above Moderate
1,409
2 31
7 1
33 64
138
Total RHNA
4,845
Total Units Produced
5 66
40 43
89 109
352
While several efforts to accomplish various Housing Element Policy Actions are highlighted below, the Housing Element portion of the APR also includes status and/or progress of implementing each Housing Element Policy Action for the Reporting Period (Appendix B of Attachment A). Appendix B includes a detailed status report for each Housing Element Policy Action.
Significant Residential Development Projects with Affordable Units Another highlight is significant residential projects that include an affordable housing component on sites identified as underutilized. These projects, which are at different stages of review, include: Newport Crossings Mixed-Use Project, Residences at 4400 Von Karman, Residences at Newport Airport Village, Newport Village Mixed-Use Project, 2510 West Coast Highway Mixed-Use Project, Residences at 1300 Bristol Street, Residences at 1400 Bristol Street, Residences at 1600 Dove Street, Residences at 1401 Quail Street, Apartments at 1526 Placentia Avenue, MacArthur Court Mixed-Use, 1470 Jamboree Road Mixed-Use, St. Michael’s Multi-Family, Residences at 12 Corporate Plaza, Mixed-Use at 2332 West Coast Highway, Residences at 120 Newport Center Drive, and Apartments at 1 Park Newport Drive. Cumulatively, these projects have the potential to add 321 lower-income housing units and 15 moderate-income housing units to the city. Each project is detailed in the attached report.
Policy Actions 1A through 1G Related to Housing Implementation Immediately after the Housing Element’s adoption in September 2022, the City began efforts to implement the housing strategy. This predominantly included analyzing the General Plan Land Use Element for necessary amendments needed for consistency, drafting an overlay zoning text for the various focus areas, and creating objective design standards. The goal was to rezone the housing opportunity sites appropriately for housing development. The City worked with the General Plan Update Steering Committee and the General Plan Advisory Committee on this effort, held study sessions with the Planning Commission and City Council, and made draft documents available for public review and input to ensure a transparent process that is representative of the community’s values.
In July 2024, the City Council adopted a General Plan Amendment to revise the necessary goals and policies within the City’s Land Use Element to support housing production in the focus areas identified by the Housing Element. The Land Use Element revised policies and goals can be found in Exhibit A of Resolution 2024-51.
On September 24, 2024, the City Council adopted Zoning Code Amendments to implement the Housing Element by providing the necessary zoning. These amendments included adding a Housing Opportunity (HO) Overlay Zoning District (Overlay) to the NBMC, Section 20.28.050, which provides procedures and development standards for future housing projects. The Overlay provides allowed uses, maximum dwelling unit limits for each subarea, and appropriate development standards such as height, parking, setbacks, and open space requirements. The Overlay also provides a streamlined review process for projects that include a minimum of 20% of units reserved for very low-and low-income households, which serves to incentive the provision of affordable housing through certainty and streamlined review.
Properties that are located within the Overlay are identified in the maps codified in Section 20.80.025 (Housing Opportunity Overlay Zoning Districts Maps) of the NBMC and provided below:
HO-1 Airport Area Environs Area
HO-2 West Newport Mesa Area
HO-3 Dover-Westcliff Area
HO-4 Newport Center Area
HO-5 Coyote Canyon Area
HO-6 Existing 5th Cycle Sites
The Zoning Code Amendment also added Section 20.48.185 (Multi-Unit Objective Design Standards to provide a minimum baseline design standard for all new multi-unit development (See the Section Policy Action 3A: Objective Design Standards).
Lastly, the City Council authorized the submittal of a Local Coastal Program Amendment (LCPA) to the California Coastal Commission (CCC) to amend the City’s Coastal Land Use Plan and Title 21 (Local Coast Program Implementation Plan) to apply the new Overlay to applicable properties in the coastal zone. The City’s LCPA was deemed complete in January 2025 and is tentatively scheduled for a hearing with the CCC in April 2026.
Since adoption of the Housing Overlay and during the reporting period, the City received 10 applications for projects on various sites within the identified HO Subareas. Two of these projects were approved in 2025, with the rest continuing review into 2026. With the increase in housing projects, the City is in progress of identifying process improvements and potential global issues with these projects to improve efficiency and timelines.
Policy Actions 1H, 1I, and 1J Related to Accessory Dwelling Units (ADUs) In 2025, the City pursued several efforts related to revising its regulations pertaining to accessory dwelling units (ADUs) and incentivizing their development. The City adopted revisions to its ADU Ordinance to comply with SB 477, AB 2533, and SB 1211 which went into effect in 2024 and at the beginning of 2025. Among other things, these bills amended Government Code Section 66310 through 66342 to impose new limits on the City to regulate ADUs and JADUs. A summary of those updates and the bills that were addressed through the code amendment can be found below:
SB 477 made changes to the numbering of the sections of Government Code for State ADU and JADU laws.
AB 2533 made various changes to State ADU law (Gov. Code, § 66332) regarding unpermitted ADUs, which the City currently implements through its existing SAFE ADU Program. The City’s SAFE ADU program is an initiative designed to help homeowners legalize existing unpermitted ADUs constructed before January 1, 2020. The program helps homeowners address potential code enforcement issues, liability concerns, and safety risks associated with unpermitted units. This bill went into effect on January 1, 2025, and the City’s SAFE ADU program has already been updated to comply with the provisions.
SB 1211 made various changes to State ADU law (Gov. Code, §§ 66313, 66314, 66323) with regard to replacement parking and special streamlined units referred to as “66323 Units” (described below) on lots with existing or proposed multifamily dwellings. SB 1211 went into effect on January 1, 2025. This bill:
Defines “livable space” as a space in a dwelling intended for human habitation, as the term appears in Government Code sections 66313, subdivision (e), and 66323, subdivision (a)(3)(A).
Specifies that uncovered, off-street parking spaces demolished in conjunction with the construction of an ADU do not need to be replaced.
Authorizes up to eight detached ADUs on a lot with an existing multifamily dwelling (previously limited to two), provided that the number of ADUs does not exceed the number of existing units on the lot.
Prohibits a local agency from imposing any objective development standards on 66323 Units that are not authorized by the provisions of Government Code section 66323, subdivision (a).
SB 1211 also established “66323 Units” under Government Code Section 66323 and clarifies four categories of ADUs (and JADUs) that must be approved ministerially and are not subject to standards set forth in Government Code Sections 66314 through 66322 or the NBMC (i.e. “66323 Units”). These 66323 Units do not have to comply with the City’s objective development and design standards, such as height, setbacks, and size limits. These ADUs must still comply with building code and health and safety requirements.
Subsequent to the City Council adopting a revised ADU ordinance to comply with the bills outlined above, the City Council authorized City staff to submit a Local Coastal Program Amendment to its implementation plan to ensure that the revisions made to the City zoning code (Title 20) are also reflected in the coastal zone through the implementation plan (Title 21) and that it conforms with State law updates. City staff submitted a Local Coastal Program Amendment at the end of 2025 to the California Coastal Commission. The application is currently under review and City staff anticipates that the amendment will be approved by the California Coastal Commission before the end of 2026.
In addition to the items mentioned above, City staff is preparing new code updates to comply with state law that was signed into law in 2025 and went into effect in 2026 (SB 477, AB 435, AB 2533, and SB 1211). City staff anticipates processing these code amendments in 2026 and sharing the updates with the CCC to ensure that the ADU regulations in the coastal zone are consistent with State law.
Website Enhancements: In the spring of 2023, the Community Development Department launched a comprehensive update to the Newport Beach ADU webpage. The webpage is intended to supplement the City’s outreach and foster interest in constructing ADUs. The website continues to include a downloadable guidebook, interactive activities and exercises to help homeowners plan their ADU, an online calculator to estimate costs, and standard plans. The website also includes resources to help the homeowner understand the different types of ADUs by providing links to development standards and processes. External resources are available for potential finance and grant opportunities for homeowners. Users can look up their property attributes including zoning and approximate lot size. An interactive mapping application is also included for residents to see the ADUs that are being constructed in their neighborhoods. The website is updated on a regular basis. For example, in 2025, updates were made regarding the revisions to the ADU code to ensure that the website provides members of the public with the most accurate information consistent with State law. City staff is currently working on updates to the ADU standard plans to reflect the recent building code cycle update. Those plans are anticipated to be available on the website in spring of 2026. The Newport Beach ADU web page can be found at https://www.newportbeachca.gov/adu.
In 2025, 61 ADUs were submitted for review. There were 38 ADUs that received building permits, including two Safe ADUs, and those contributed towards RHNA; and nine that received final inspections including one Safe ADU. Policy Action 1H calls for a total of 240 permitted ADUs for the entire Planning Period (2021-2029). To date, 204 ADUs have been permitted and based on the annual average the 240 units called for by Policy Action 1H will be met or exceeded by the 2026 reporting year.
Policy Action 3A: Objective Design Standards
The Zoning Code Amendment that approved the Housing Overlays also added Section 20.48.185 (Multi-Unit Objective Design Standards to provide a minimum baseline design standard for all new multi-unit development. The objective design standards are intended to result in quality design of multi-unit residential and mixed-use development. Review under the standards supports development that builds on context, contributes to the public realm, and provides high quality and resilient buildings and public spaces. These standards shall be applied uniformly and without discretion to enhance the built environment for both affordable and market-rate multi-unit residential development. The standards would apply to housing throughout the city that consists of a density of 20 dwelling units per acre or greater. Furthermore, the City prepared a Checklist for applicants to help streamline review of the objective design standards. In 2025, two Housing Overlay projects were approved with the Objective Design standards. Additionally, seven Housing Overlay projects were in a preliminary or applied status by the end of 2025. Four of the seven include affordable units.
FISCAL IMPACT:
There is no fiscal impact related to this item.
ENVIRONMENTAL REVIEW:
The General Plan Progress Report, including the Housing Element Progress Report, is not subject to CEQA, as the actions are not a project as defined in Section 15378(b)(2) of the Public Resources Code.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
ATTACHMENT:
Attachment A – General Plan and Housing Element Annual Progress Report 2025 2025 General Plan and Housing Element Annual Progress Reports (PA2025-0008) March 24, 2026
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