Novato Planning Commission Meeting: 2024 Housing Element Progress Report – March 10, 2025

On March 10, 2025, the Novato Planning Commission held a regular meeting to receive the 2024 Annual Progress Report (APR) for the Novato Housing Element, take public comment, and vote on a recommendation to the City Council. The meeting was chaired by Curtis Havel and all commissioners were present. The primary focus was the city’s progress toward its Regional Housing Needs Allocation (RHNA) goal of 2,090 dwellings over an eight-year cycle.

Public Comments & Testimony

• Derek Nell, Director of Staff Housing Development for the Novato Unified School District, spoke during public comment. He stated that the school district has been working for over a year on plans to develop education workforce housing on surplus properties. He noted that a final resolution to free up close to 40 acres for housing would go before the school board the following week. Nell expressed hope for collaboration with the city and noted that under new state law, school district impact fees can now be deferred until occupancy, which should help project financing.

Discussion Items

• 2024 Annual Progress Report (APR) Presentation: Steve Marshall, Deputy Director of Community Development, presented the mandatory state report. Key points included:

  • The report covers the 2024 calendar year and reflects the city’s updated housing element adopted in May 2024.
  • Planning entitlements (Table A): 165 units applied for, including 82 from the Old Mission Lodge site (AB 2011 proposal), 66 from the 100 Woodhollow office redevelopment, four lot divisions, and four ADU applications.
  • Completed entitlements (Table A2): 805 units were entitled in 2024, primarily from AMG projects on Grand Avenue and Landing Court, the Village at Novato (near Trader Joe's), and the Lodge on Novato Creek (residential care facility).
  • Building permits issued: A “lean year” – 22 ADUs, one or two JADUs, and one single-family dwelling. Staff corrected an error in the certificate of occupancy table from 67 to 93 units.
  • RHNA credit (Table B): 23 units credited in 2024 (down from 82 in 2023).
  • Program progress (Table D): Significant progress on housing element programs, including rezonings for RHNA shortfall (Gerardo property on Woodhollow and Baywood office at 7th & Grant), and multiple zoning code amendments. The last pending programs (emergency shelters and community care facilities) are scheduled for City Council action on March 11.
  • Outlook for 2025: Unknowns due to LA fire reconstruction demands, material/labor availability, interest rates, and national economic conditions. ADUs expected to remain strong; potential for entitled projects to apply for building permits.

• Commissioner Discussion:

  • Commissioner Derby raised concerns about post-entitlement delays, noting that even after tentative map approval, it may take 18 months to three years to obtain a building permit, especially for large projects like Fireman’s Fund. He urged the city to focus not just on approvals but on facilitating actual construction. He also commented on market conditions: single-family homes remain viable, attached housing is difficult, and apartment projects are stalled due to high costs.
  • Staff responded that the city is compliant with state processing timelines and is working on construction management plans. The city has hired additional planning and building staff, implemented e-permitting, and is acquiring new software to improve permit processing.
  • Commissioner Heath asked about repercussions for not meeting RHNA numbers. Staff explained there are no direct penalties; unmet goals may roll over to future cycles, but that hasn’t been legislated.
  • Commissioner Crockett asked about fees. Staff noted that for certain projects, development impact fees may now be deferred until occupancy under state law. Commissioner Derby confirmed this helps but said the biggest fees are due at final map, so occupancy deferral provides limited relief.
  • Commissioner Engdahl requested a comparison of Novato’s performance with other Marin cities. Staff said they could provide that data after the 2024 cycle is complete. Commissioner Crockett also expressed interest in seeing cities that are performing well, noting that Roseville was cited as an example.
  • Commissioner Havel highlighted the city’s good-faith efforts in laying groundwork (rezonings, code amendments) and reminded the public that the city does not build housing; it sets the table for private development.
  • Vice Chair Crockett noted the presence of two builder’s remedy claims in Novato but questioned their effectiveness given unclear case law. Staff explained the builder’s remedy only applies if a housing element is found not in substantial compliance, and that a new 2024 law gives HCD more authority to determine compliance.

Key Outcomes

• Motion: Commissioner Crockett moved to receive the 2024 Annual Progress Report and recommend that the City Council file the report with the State Department of Housing and Community Development (HCD) and the Governor’s Office of Land Use and Climate Innovation (CLI). The motion was seconded by Commissioner Dawson and passed unanimously (7–0). The recommendation will be forwarded to the City Council for consideration on March 11, 2025.
• Next meeting: Scheduled for March 24, 2025, with a potential zoning code amendment regarding SB9 (state law for duplexes/ lot splits). Staff noted that if not ready, the item will be heard in April.