Mayor Alex Renaghi said Laguna Beach is required under state housing laws to plan realistically for 394 housing units for the 2021'2029 cycle and that updating the downtown specific plan to add residential uses is part of meeting that requirement.

"We are required to to plan realistically plan for 394 units over the next you know, from 2021 to 2029," Renaghi said. He told host Tom Johnson that the city's agreement with the California Department of Housing and Community Development (HCD) effectively requires updating the downtown plan to include housing opportunities so Laguna Beach stays on track with its housing element.

Renaghi warned that failing to meet the housing element could subject the city to the "builder's remedy," a state enforcement consequence that could allow developers to seek approvals outside local zoning constraints. To avoid that outcome, the city is considering targeted areas where second'story and a limited number of third'story additions would be compatible with the existing downtown character.

Renaghi said the approach underway includes producing renderings and holding multiple public hearings to identify appropriate locations for added residential capacity while preserving the town's pedestrian, village'scale character. He suggested areas such as near The Hive could be suitable for three'story development that would add housing without broadly altering downtown character.

The mayor emphasized the process will include public input and design controls to maintain a "quaint" downtown look and to prevent nonconforming development that does not fit neighboring properties.

Renaghi did not provide a timetable or specific regulatory changes; he said the city plans more public hearings and design work before adopting any changes to the downtown specific plan.