San Carlos granted building permits for 32 net housing units in 2024, all in the market rate category, inching slowly toward its development goals of 2,735 units for the 2023-31 planning period, the Planning and Transportation Commission learned at its meeting March 3.
Each year, the city must submit an annual progress report on reaching its Regional Housing Needs Allocation, which demands a certain number of developed units for various income level affordability categories. Progress is tracked by building permits issued.
The city is expected by 2031 to issue permits for 739 very-low-income, 425 low-income, 438 moderate-income, and 1,133 above-moderate or market-rate units. So far, the city has issued permits for 77 units since the planning period began, all for market rate developments.
The city’s goal is to permit 3173 units in total as a buffer to ensure the obligation is met, and to add 342 units each year, Chair Kristen Clements said.
“Obviously we’re at the low point in the real estate cycle and it’s very depressing for those of us who know how much development we need,” Clements said.
The 2024 annual progress update shows that, at nearly a quarter of the way through the planning cycle, 4% of the needed market-rate units have been met.
Of the 38 units that were granted building permits — six required the demolition of a previous housing unit — 27 were accessory dwelling units, four were single-family homes, two were single-family homes with ADUs, and one was a four-unit townhome development.
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The city’s prioritization of making readily-available resources for ADU developments appears to be paying off, said Commissioner Janet Castaneda.
Although the number of building permits remains lower than desired, developments in the pipeline are still moving along. In 2024, applications for 23 housing units were completed and 41 units received planning approvals. The majority of these are market-rate units, according to the staff report.
Staff also noted the city’s progress on completely action items that coincide with development obligations. In addition to widely promoted ADU development and construction through webinars and newsletters, the city awarded $76,500 to nonprofit agencies to support the rehabilitation of low- to moderate-income residences.
“It doesn’t really constitute construction, but it does speak loudly towards our support to keeping housing rehabilitated and looking nice,” said Commissioner Ellen Garvey.
The City Council will be presented the 2024 Housing Element progress update at its regular meeting March 24. Staff will then submit the report to the State Department of Housing and Community Development by April 1.
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