Small Pacific Grove begins planning for a 14-percent jump in housing units, per state mandate.

The number of housing units in Pacific Grove has only increased by a few hundred over the past decade, according to the U.S. Census Bureau, from 8,263 to 8,559. The state of California is now tasking the city with planning for a 14-percent increase, adding 1,125 more units, after its Housing and Community Development officials decided that resource-rich cities – as well as cities that lack diversity – like P.G. have to shoulder a greater burden in housing California’s population.

While some welcome the challenge in the face of great need, others are unhappy the state is dictating change. Even though P.G. isn’t required to actually build those units, it is required to change its zoning and general plan documents to accommodate that number, which came out of the latest round of negotiations for determining the Regional Housing Needs Allocation (RHNA) for 2023 through 2031. If the city does not accommodate the new number in its housing plan, it could face consequences from the state including financial penalties and losing its permitting authority.

When P.G. Housing Manager Anastacia Wyatt presented this to the Planning Commission on May 19, a majority of commissioners balked. “Where is the infrastructure to support this? Where are the schools? Where are the sewers? It’s conundrum to me,” Commissioner Claudia Sawyer said. Several commissioners said that the original number suggested by the Association of Monterey Bay Area Governments for P.G., approximately 650, was already too high. The 1,125 figure – which came about after HCD told AMBAG officials they had not focused enough on fair housing requirements in their methodology – was “over the top,” as Sawyer put it.

The commission voted 5-2 to request that the P.G. City Council appeal the new RHNA number, commissioners Don Murphy and Peter Nodzenski dissenting. “We need housing. We need as much as we can create and we need to start now,” Murphy said.

On June 1, the City Council decided to pass on the Planning Commission recommendation and declined to appeal, in part because most earlier appeals by cities and counties were rejected by HCD.

City staff now have a big task ahead: updating the city’s land use plan that hasn’t been touched since 1994, updating the general plan and making zoning changes that in some cases could mean asking voters to overturn earlier zoning restrictions. The deadline is December 2023.

Wyatt says the city will have to get creative in finding potential building sites where density can be increased. “It’s tricky,” she says. They’re looking at sites owned by the city, school district and California American Water. Wyatt has also been in discussions with churches that are open to building on unused portions of their properties. “It’s going to be a lot of work to get there,” she says, “a lot of cooperation and a lot of public-private partnerships.” She’s planning public workshops, starting this summer, to get feedback.