Assembly Lands, Housing, & Economic Development Committee - 2026-03-16
Meeting Intelligence Preview
Meeting Summary
The Assembly Lands, Housing, and Economic Development Committee reviewed the fifth annual Affordable Housing Fund report, which includes competitive grants, ADU grants ($13,500 each), and manufactured home down payment assistance ($20,000 or 50% of down payment). The committee directed staff to draft two ordinances regarding short-term rentals: one establishing per-applicant unit limits and another creating permit fees directed to the affordable housing fund. Assembly member Kelly also clarified his proposal to add optional incentive points for developers who provide additional units for licensed professionals (teachers, healthcare workers).
Key Decisions (2)
Direction to Draft Short-Term Rental Unit Limit Ordinance
Committee directed staff to bring back an ordinance establishing an upper limit on the number of short-term rental units per applicant. The specific number was left open for future committee discussion.
Direction to Draft Short-Term Rental Fee Ordinance
Committee directed staff to draft an ordinance charging fees for short-term rental applications, with revenues directed to the affordable housing fund.
Market Signals (5)
Housing Demand
Manufactured home prices continue rising, prompting staff to consider increasing the $20,000 down payment assistance cap after consultation with True North.
Housing Demand
ADU construction costs exceed the $13,500 grant amount; a previous proposal suggested $50,000 per unit would better incentivize ADU development.
Housing Demand
Multifamily per-unit financing gap is approximately $120,000 according to Dowell Agnew Beck study, reduced to about $75,000 with tax abatement and housing fund assistance.
Housing Demand
Private developers are increasingly engaging with the workforce housing loan program after initial hesitation, with rounds 3-5 showing improved participation compared to earlier rounds.
Sentiment
Short-term rental operators who converted from traditional landlords expressed strong preference for short-term rental model and reluctance to return to long-term rentals.