Laguna Beach Special City Council Meeting - July 15, 2026

July 15, 2026

Executive Summary

- The Laguna Beach City Council held a special meeting on July 15, 2026 to approve $6.71 million in funding for a 29-unit affordable housing project at 340 Saint Anne's Drive, operated by Related California on land leased from Neighborhood Congregational Church (NCC). - City Attorney Megan Garibaldi emphasized the consequences of not building affordable housing on inventory sites, including the need to rezone additional properties and potential non-compliance with the city's housing element programs. - The project had previously been reduced from a larger proposal following community input, now consisting of 28 affordable units (9 extremely low income, 3 very low income, 16 low income) plus one unrestricted manager unit, along with a 41-space parking garage. - The ad hoc committee (Council Members Bob Whalen and Sue Kempf) and city staff negotiated a reduced funding package from the original $8.25 million request, including $2.5 million from a state HCD grant, $2.5 million in city matching funds, $740,000 in fee waivers, and approximately $1 million in gap loans. - The city will purchase six surplus parking spaces for $523,000 to generate approximately $30,000 annually in revenue,

Key Decisions

- Adopted a resolution authorizing the Mayor to execute a revised funding commitment letter for $6.71 million in total city funding for the 340 Saint Anne's Drive affordable housing project (approved unanimously). - Authorized the Assistant City Manager or designee and City Attorney to negotiate loan documents and regulatory agreements consistent with the funding commitment terms, with final agreements subject to City Council approval. - Found that no further environmental review is required under State CEQA Guidelines Section 15162. - Modified the funding commitment letter to extend the expir