At the December 8, 2021 City Council meeting, staff was asked to return with a brief update on the Regional Housing Needs Allocation (RHNA) process and how it will impact the City of Carmel-by-the-Sea.  At a basic level, RHNA is a process by which the State of California allocates a specific number of affordable housing units that are required to be constructed in a region during an eight-year cycle.  Staff will provide the Council with an overview of how the RHNA numbers are divided across our region, what it means for the City, and a general timeline leading up to implementation of the next cycle.  In addition to RHNA, there are currently other housing-related initiatives to be aware of, all of which have some correlation to RHNA.  So, staff will also include these as part of the verbal report to Council on January 4th.  Those other initiatives include:

• Senate Bills SB8, SB9, and SB10:  Effective as of January 1st, 2022, these recently adopted bills include major elements such as ministerial approval of certain subdivisions, encouraging greater density in single family zoning districts, and other legislative changes aimed at increasing housing production in the State.  Staff will provide an overview of the Bills, and anticipated impacts on the City of Carmel-by-the-Sea

• Feasibility Study and Barriers to Affordable Housing:  In order to make a meaningful attempt at creating opportunities for building affordable housing, first the City must determine feasibility (locations, process, etc.) and identify current barriers which might be able to be removed.  In 2021, the City received three (3) grants totaling $290,000, which are slated to help prepare those analyses.  Over the past few months, City staff has been working with other cities in the Monterey Bay area in an attempt to take a collaborative approach to this study, including potential partnerships on consultant contracts.  Staff will provide an update on those meetings, development of a consultant work plan, and upcoming next steps.

• 2023 Housing Element Update:  By law, jurisdictions are required to update the Housing Element of their General Plans on a periodic basis.  The City of Carmel-by-the-Sea’s required update is due December, 2023.  The main goal of regularly updating a jurisdiction’s Housing Element is to ensure that there are practical plans and regulatory systems in place that provide opportunities for (and do not unduly constrain), housing development.  This update will incorporate requirements from the City’s RHNA assessment, as well as plans and strategies from the previously mentioned grant-funded housing studies.  Staff will provide an overview upcoming milestones on the way to this important General Plan update.