TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Masa Alkire, Community Development Director
Adam Finestone, Planning Manager
SUBJECT:Title
Midyear Update on Sixth Cycle Housing Element Progress
(No Budget Impact) (Community Development Director Alkire)
(Estimated Time: 10 Min.)
RECEIVE AND FILE
Body
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RECOMMENDATION:
Staff recommends that the City Council receive and file the 2026 midyear update on Sixth Cycle Housing Element progress.
FISCAL IMPLICATIONS:
There are no fiscal implications associated with the update.
BACKGROUND:
The Housing Element is one of the State-mandated elements of a city’s General Plan. Manhattan Beach’s Sixth Cycle Housing Element was adopted in 2022 and certified by the California Department of Housing and Community Development (HCD) in 2023. The City Council regularly receives updates on the City’s progress on implementing its Housing Element in the spring of each year when staff presents the comprehensive and detailed Housing Element Annual Progress Report (APR). At its September 15, 2026, meeting, the City Council requested that a brief midyear update be provided as well.
DISCUSSION:
As part of the Housing Element process, HCD and the Southern California Association of Governments (SCAG) establish and allocate housing unit production goals for all jurisdictions as part of the Regional Housing Needs Allocation (RHNA) process. RHNA is broken down into income categories, and the City must plan to accommodate the number of units in each category. The City’s RHNA for the Sixth Cycle planning period is 774 housing units, with 322 in the very low-income category, 165 in the low-income category, 155 in the moderate-income category, and 132 in the above moderate-income (i.e., market rate) category.
The City continues to make progress toward meeting its RHNA, as demonstrated by the Sixth Cycle RHNA Progress table attached to this report. While a majority of new housing units are in the “above moderate-income” category, 11 income-restricted units (eight low-income and three moderate-income) have also been permitted since the beginning of 2026. (Housing units are counted toward the City’s RHNA at the time the building permit is issued for a project.) City staff anticipates a significant increase in housing units that are counted toward the RHNA in 2027 based on building plans that are currently under review, including those at 3600 N. Sepulveda Blvd. (former Fry’s property), 1440 Rosecrans Avenue, and 1500 Rosecrans Avenue. A table showing all multi-family housing projects of six or more units that are currently in the pipeline (preliminary review, building plan review, or under construction) has been attached to this report for reference. It is at the building plan review stage, where an applicant has demonstrated a significant financial commitment to move forward with a project.
PUBLIC OUTREACH:
As this is an informational report only, staff did not conduct any specific outreach ahead of this meeting. However, City staff has conducted a significant amount of outreach in recent years regarding housing issues, including a residents’ forum regarding the Residential Overlay District in spring 2025, informational notices regarding individual projects, noticed public hearings related to the aforementioned zoning text amendments necessary to implement programs in the City’s 6th Cycle Housing Element, and webpages dedicated to Residential Overlay District and State Density Bonus multi-family housing projects and regulations. Staff has also presented Housing Element APRs annually at agendized City Council and Planning Commission meetings. Similar outreach efforts will continue to be provided.
Additionally, at the direction of City Council, the City will be establishing a nine-member housing task force to serve in an advisory role during the preparation of the 7th Cycle Housing Element update. Staff has established a webpage dedicated to the 7th Cycle Housing Element work effort (www.manhattanbeach.gov/7thcycle <http://www.manhattanbeach.gov/7thcycle>) where additional information on the task force can be found. The City Council will be asked to appoint members to the task force at its December 1, 2026, meeting.
ENVIRONMENTAL REVIEW:
The City fully complied with the California Environmental Quality Act (CEQA) at the time the City Council adopted the 6th Cycle Housing Element. This update is not a “Project” as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, no additional environmental review is necessary.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENT/ATTACHMENTS:
1. Sixth Cycle RHNA Progress
2. Multi-Family Housing Projects
3. PowerPoint Presentation