San Diego Land Use and Housing Committee Meeting - July 11, 2024

The Land Use and Housing Committee of the San Diego City Council met on Thursday, July 11, 2024, at 1:00 p.m. (called to order at 20:45 UTC). The meeting covered three main agenda items: approval of the committee minutes, a long-term lease for the World Beat Center in Balboa Park, an informational presentation on the 2024 annual report on homes, and an informational presentation on strategies for affordable and sustainable housing. Public comment was heard on all items.

Consent Calendar

• Approval of Minutes (June 13, 2024): The committee voted unanimously (4-0) to approve the minutes from the previous meeting. A motion was made by Vice Chair Lakava and seconded by Councilmember Whitburn. One member of the public, Lori Saldania, provided comment on the minutes, encouraging the committee to thoroughly review policy matters such as large shelter proposals.

Public Comments & Testimony

Non-Agenda Public Comment: Ten in-person speakers and five virtual speakers addressed the committee on matters not on the agenda. Topics included:

• Purita and Cesar Javier raised concerns about a ceramics factory operating near their home, alleging toxic emissions and inadequate enforcement.
• Johan Balbuena (Roller for Equity campaign) and Terry Best advocated for a cannabis social equity program, emphasizing restorative justice and inclusion.
• Joyce Nyata commented on homelessness policies, referencing a Supreme Court decision on encampments and calling for a holistic approach to the Hope Advine Campus Project.
• Ellen Stone (American Tiny House Association) promoted movable tiny houses as affordable ADUs and requested public awareness campaigns.
• Colleen Cusack and Lori Saldania opposed the direct docketing of the Kettner and Vine shelter proposal, urging the committee to conduct a full review rather than bypassing it.
• Shelby Huffaker (Americans for Safe Access) supported the cannabis social equity plan, citing limited licensed retail access.
• Jeff Hoider asked for more time to review the Environmental Impact Report for Blueprint San Diego and related plan updates, warning of insufficient public review.
• Virtual speakers addressed cannabis health risks and smoke-free multi-unit housing policies.

Item 1 – World Beat Center Lease: Thirteen speakers supported the 25-year nonprofit lease. Speakers included:

• Makeda Cheatham (founder) thanked the committee and emphasized the center’s cultural contributions.
• Shane Harris (People's Association of Justice Advocates) detailed the center's history and advocacy efforts, urging approval.
• Kalita Janicu, Christy, Teresa Moore, and Bernice Rodriguez spoke as volunteers and staff, highlighting community programming and the need for lease security.
• Lori Saldania expressed support but raised concerns about missing HVAC systems in the building.
• Peter Kamisky (Balboa Park Cultural Partnership) supported the lease and encouraged private philanthropy.
• Imani Robinson called the lease “a good first step” but suggested a longer term.
• Two virtual speakers also voiced support.

Item 2 – 2024 Annual Report on Homes: Seven in-person and two virtual speakers commented. Speakers included:

• Cesar Javier questioned the focus on high-density shelter locations and suggested mobile homes.
• Joyce Nyata praised staff but asked about collaboration with other housing bodies and the definition of affordable housing.
• Lori Saldania raised concerns about expedited permits possibly enabling short-term vacation rentals and noted a typo in the report.
• Jeff Hoider used slides to argue that moderate-income housing is undercounted and that affordable housing incentives should target lower income levels.
• Evan Strawn (San Diego Regional Chamber) praised the permitting achievements but noted 82,000 more units needed.
• Colleen Cusack called the report an “F grade,” citing net housing loss and insufficient production.
• Virtual speakers asked for better notification of new developments and more equitable distribution of affordable housing in high-resource areas.

Item 3 – Strategies for Affordable and Sustainable Housing: Seven in-person and three virtual speakers commented. Speakers included:

• Cesar Javier urged using city-owned properties for housing and preserving open spaces.
• Joyce Nyata found the presentation provocative and asked about using AI to assist planning.
• Jeff Hoider advocated for appropriate zoning for missing middle housing and avoiding overzoning.
• Evan Strawn (Chamber) supported the presented policy ideas.
• Lori Saldania stressed quality over quantity and noted the high cost of electricity for seniors in all-electric buildings.
• Peggy Walker requested smoke-free policies in multi-unit housing.
• Saad Assad supported minimum lot size reduction and single-stair reform.
• Blair Beekman called for mixed-income development.
• Wesley Morgan praised single-stair reform for enabling family-sized units and energy efficiency.
• Ricardo Flores (LISC San Diego) emphasized that smaller lot sizes could reduce home costs by 40-50%.
• Steven Russell (San Diego Housing Federation) thanked the committee and suggested a future discussion on ownership opportunities in multifamily housing.

Discussion Items

Item 1 – 25-Year Nonprofit Lease with World Beat Center (2100 Park Blvd): Lucy Contreras (Deputy Director of Real Estate) presented the staff recommendation. The lease term is 25 years with a 10-year option to extend, annual nonprofit administrative fee of $4,397.50 with CPI increases, and the tenant responsible for maintenance and improvements. The building is approximately 11,438 sq. ft. with outdoor space. The city would retain ADA upgrade responsibilities. The committee discussion included:

• Councilmember Whitburn moved approval, thanking the center’s leadership and noting the lease would enable grant applications.
• Councilmember Moreno seconded, recalling past volunteer work at the center and apologizing for the decades-long delay.
• Chair Lee emphasized the importance of public-private partnerships and the center’s cultural significance. The motion passed unanimously 4-0.

Item 2 – 2024 Annual Report on Homes: Grant Rarodi (Senior Planner) presented the city’s housing permitting data for calendar year 2023. Key statistics:

• 9,693 new homes permitted, highest in over a decade.
• 2,576 (26.6%) were deed-restricted affordable for very low, low, and moderate income households.
• 1,909 ADU permits, up sharply.
• 42% of income-restricted affordable homes were processed via the mayor’s executive order (affordable housing permit now program), averaging 9 days.
• The city permitted 70 homes per 10,000 residents, outperforming Los Angeles (49) and San Francisco (38).
• 86% of new homes and 90% of affordable homes were in transit-rich mobility zones 1 and 2.
• Only 27% of affordable homes were in high or highest resource areas, though 69% of the city is classified as such.
• The city needs to permit 82,344 more homes by 2029 to meet its RHNA goals, especially for lower income levels.
• The IBA (Raishin Chen) noted the lack of inclusionary housing data and recommended better tracking. Committee members discussed challenges in tracking moderate-income housing, the need for larger family-sized units (only 16% had three+ bedrooms), and the limited capacity for subsidized housing. The item was informational; no vote taken.

Item 3 – Informational Presentation on Affordable and Sustainable Housing Strategies: David Pearson (architect), Eduardo Mendoza (Livable Communities Initiative), and Stephen Smith (Center for Building in North America) presented innovative code and design strategies. Proposals included:

• Reducing minimum lot sizes to lower land costs and enable more homeownership.
• Adjusting floor area ratio (FAR) calculations to incentivize family units.
• Allowing more units under the California Residential Code (via AB 835 type reforms).
• Introducing accessory commercial units for neighborhood retail.
• Adopting adaptive reuse standards (like San Francisco).
• Single-stair building reform: allowing up to 6 stories with one stairway, as done in Seattle, New York, and many countries, to improve unit layouts, natural light, cross-ventilation, and enable smaller lot development. Interim Chief Building Official Ali Fatah explained that California restricts local amendments to be more restrictive than state code, so single-stair reform would require state or model code changes. He noted the item will be debated at the ICC hearing in Long Beach in October 2024. Committee members asked about affordability impacts and safety. Vice Chair Lakava questioned whether these reforms truly lower housing costs. Chair Lee noted that the state is studying single-stair reform via AB 835 and that a local stakeholder meeting on these strategies could be valuable. The item was informational; no vote taken.

Key Outcomes

• Consent Calendar: Minutes of June 13, 2024 approved unanimously (4-0).
• Item 1: Motion to approve the 25-year nonprofit lease for the World Beat Center passed unanimously (4-0). The lease includes a 10-year option and requires compliance with the zero-emissions municipal building operations policy.
• Item 2: No action taken; report to be presented to the Planning Commission in late August and City Council in September 2024. Staff will work with IBA and the Housing Commission to improve inclusionary housing data tracking.
• Item 3: No action taken. Chair Lee expressed interest in convening a stakeholder group to further discuss the presented strategies, including single-stair reform, adaptive reuse, and lot size reductions, in coordination with city staff and the mayor's office.