Land Use and Housing Committee Meeting – September 4, 2025
Land Use and Housing Committee Meeting – September 4, 2025
The Land Use and Housing Committee met on September 4, 2025, at 9:00 AM. The meeting included non-agenda public comments, approval of consent items, a discussion and vote on establishing a San Diego Affordable Housing Preservation Fund, and an informational presentation on factory-built housing. All agenda items were approved unanimously.
Consent Calendar
- Item 1: Approval of the committee minutes from July 2, 2025. Passed 4-0.
- Item 2: Authorized the first amendment to a pipeline installation and maintenance agreement between the City of San Diego and the U.S. Department of the Navy. Passed 4-0.
Public Comments & Testimony
- Non-Agenda Public Comments: Multiple speakers addressed the committee on various topics:
- Several residents urged the committee not to remove deed restrictions on the 114-acre polo fields in the San Dieguito River Valley, arguing it would set a dangerous precedent for other protected open spaces, including Mission Trails Regional Park. They cited past promises by Surf Cup Sports that there would be no intensification of use, which they claimed have been violated.
- One speaker, Sarah Wardrup, described a car accident caused by traffic congestion from Surf Cup events, noting that such incidents occur weekly.
- Speakers Shelby Huffaker and Miguel McCall advocated for advancing the city's cannabis social equity program, citing declining cannabis tax revenue and the need to address historical harms from the war on drugs. They requested a public equity dashboard, fee relief, and dedicated tax revenue for impacted neighborhoods.
- Lori Saldania asked the committee to require assessments of short-term vacation rental impacts on housing availability in all community plan updates.
- Several speakers urged the committee to adopt smoke-free protections for all multi-unit housing that receives public funds, closing a loophole that leaves privately owned affordable housing without HUD-required smoke-free rules.
- Becky Rapp and Megan Stewart highlighted health equity concerns from secondhand smoke exposure in multi-unit housing, noting that low-income residents and communities of color face disproportionate risks.
- A speaker opposed alcohol ads on transit, and another opposed expanding cannabis retail, citing youth risks.
- Multiple speakers commented on the housing crisis and the need for more affordable housing options, including factory-built housing.
- Consent Agenda Public Comments: Cesar Javier spoke about meeting minutes and the military pipeline agreement, criticizing environmental review processes and air quality issues.
- Item 3 Public Comments: Numerous speakers supported the affordable housing preservation fund, including representatives from Alliance San Diego, San Diego Housing Federation, Legal Aid Society, San Diego & Imperial Counties Labor Council, and San Diego Building Trades. They emphasized that preserving existing affordable housing is critical to preventing displacement and homelessness. A few speakers suggested alternative funding sources, such as a fee on short-term rentals, and others raised concerns about neighborhood impacts from cannabis advertising.
- Item 4 Public Comments: Two industry representatives (Andrew Ronaldo from Impact Housing and Edward Kane from Domo Modular) spoke in favor of factory-built housing, highlighting cost savings, faster construction, and job creation. A speaker expressed concern about ensuring these units remain permanent housing, not short-term rentals.
Discussion Items
- Item 3: Approval of Next Steps to Establish a San Diego Affordable Housing Preservation Fund
- Housing Commission staff presented a strategy to create a preservation fund using $5 million in seed funding from the city's Neighborhood Enhancement Fee. The fund would leverage tax-exempt bonds (501(c)3 or governmental purpose bonds) and public ownership through the Housing Commission or its nonprofit affiliate Housing Development Partners (HDP) to acquire naturally occurring affordable housing (NOAH) properties in high-opportunity areas. Initial acquisitions would target stable, revenue-generating properties needing minimal rehabilitation. Cash flow from properties would be recycled into the fund to grow it over time.
- The Independent Budget Analyst (Amy Lee) noted the strategy is reasonable as a first step but requested a clearer implementation timeline and prioritization framework.
- Committee members expressed strong support for the preservation fund, acknowledging the loss of over 60,000 affordable units since 2000 and the need to act quickly. Councilmember Moreno detailed the bond structure and repayment terms (15-year terms at favorable rates). The committee discussed the importance of eventually attracting philanthropic and private investment to scale the fund.
- Item 4: Factory-Built Housing (Information Item)
- Development Services Department staff presented results of a working group on factory-built housing. Kelly Charles explained the difference between factory-built housing and mobile/manufactured homes, and that the city reviews only site-built portions (foundations, connections, zoning) while state-designated agencies handle factory inspection. The working group produced an updated information bulletin (IB 241) to streamline the process, addressing plan check comments, construction changes, damage during delivery, and traffic control for crane operations.
- Current factory-built housing projects account for nearly 2,000 units in various stages (built, under construction, or in review). Industry representatives from Impact Housing and Domo Modular reported significant time and cost savings (e.g., plan check time reduced by 50%, to about seven months). Automation and lean manufacturing have increased factory throughput by 70%.
- Committee members asked about workforce impacts and future potential. Staff indicated that third-party plan reviews could further speed up permitting, and the city is exploring inspection working groups to improve coordination.
Key Outcomes
- Approval of Consent Agenda (Items 1 and 2): Passed 4-0 (Lee, Kempio, Moreno, Elo Rivera).
- Approval of Item 3 (Affordable Housing Preservation Fund): The committee voted unanimously (4-0) to recommend that the City Council take the actions detailed in the staff report to establish the fund, including transferring $5 million from the Neighborhood Enhancement Fee to the Housing Commission and authorizing the bond-financed acquisition strategy. The Housing Commission will return to the committee for future updates on implementation and prioritization.
- Item 4 (Factory-Built Housing): No vote was taken; the item was informational. The committee expressed support for continued innovation and requested further updates on process improvements.
Meeting Transcript
Good afternoon. Welcome to the land use and housing committee meeting of September 4th, 2025. Our committee liaison, Natalie Klesler will go over instructions for today's meeting. Thank you, Chair. While members of the public are able to attend the meetings in person, this meeting is being televised and live streamed on the city's website, and the council administration will continue to make arrangements for the public to comment using the Zoom webinar platform. Members of the public who wish to provide virtual testimony must enter the virtual queue by raising their hand before the virtual queue closes. The queue will close when the last virtual speaker finishes speaking, or five minutes after in-person testimony ends, whichever occurs first. This will allow for better meeting management between the two platforms and ensure the committee is able to manage and conduct the city business. We appreciate the public's cooperation. Chair. I will now call the Land Houston Housing Committee meeting of Thursday, September 4th, 2025 to order. Natalie, please call the role. Councilmember Kempio. Here. Councilmember Moreno. Present. And Chair, Council President Pro Tem Lee. Here. Also attending the meeting today, Chris Ackerman Avila with Mayor Todd Gloria's office, Deputy City Attorney Corinne Newfer with the City Attorney's Office, Amy Lee with the Independent Budget Analyst Office, and Angeli Hoyos, committee consultant. If you're in person, please complete a speaker slip located at the entrance of chambers and place it on top of the box indicated at the front of the room next to the public comment microphone. Please do so in a timely manner to ensure proper meeting management. In-person testimony will conclude before virtual testimony begins. Members of the public can join the webinar by computer tablet or smartphone by accessing the link, which is listed online in the preamble language of the agenda on the city's webpage. To join the Zoom webinar by phone, please dial 1669 2545252. The webinar ID is 160-683-0623 pound. This information is also available on the agenda and will appear on the screen during the public comment period for each agenda item. Please note that if you're watching via City TV 24 or online, there may be a delay. Please participate via the audio on your phone and mute your TV or computer when it is your turn to speak. If you wish to speak on a particular item, wait for that item to be called and then raise your hand to speak by tapping the raise your hand icon, or if you are a calling participant, press star nine to raise your hand. If you raise your hand during a non-comment period, your hand will be lowered. Chair. Thank you, Natalie for reviewing those instructions for the benefit of the public. A quorum is now present. We will now take up non-agenda public comment. The council members respect and appreciate the public's input and are fully committed to protecting every participant's free speech rights at council and committee meetings. Thank you, Chair. And if you have joined us in chambers and want to speak to non-agenda public comment, please submit a speaker slip at this time. Jeff, please approach the microphone, and you'll be followed by Al Michaels, Vivian Ford, and Polly Wheatley. You and your colleagues on the City Council agree to vote in the next few weeks on a resolution that would amend or abolish a grant deed that for 40 years has protected 600 acres of open space in the San Dieguido River Valley. This includes the former polo fields. The question I want you to consider between now and your vote is how would you justify such a betrayal of public trust to your voters if this was to happen to the dedicated open space parks in your districts? Thank you. Thank you. Al Michaels. I hope this letter finds you well and energized with the great responsibility entrusted to you by our city's residents. I'm speaking to you today as a concerned citizen and a passionate supporter of community development. As an advocate for responsible stewardship of shared public lands to address the issues of deed restrictions currently in place on the city's polo fields. To begin, allow me to acknowledge the brisk history of the polo fields and the cherished role that they play in our city's fabric. For decades, these grounds have been the site of spirited matches, community gatherings, countless memories for residents from walks of all life. They have stood as a symbol not only of an athletic tradition, but also the city's commitment to preserving green spaces and fostering recreation.
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