A Laguna Beach church that wants to take advantage of state legislation streamlining the process for religious institutions and schools to build affordable housing on their properties has submitted an updated application to the city for a mixed-use, 44-unit affordable development.

Related California, a company operated by longtime Laguna Beach resident Bill Witte, has partnered with the Neighborhood Congregational Church to propose a beachy-looking development at the church’s property at Glenneyre Street and St. Ann’s Drive.

The location is within walking distance to downtown, popular surf beaches, shopping, restaurants and Laguna Beach High. It also includes a plan for a modern-looking spirit center and a community gathering spot.

“We had this dream to create this place in Laguna Beach focused on love and justice, while also promoting economic equity,” said The Rev. Rod Echols, the church’s pastor. “That commitment to economic equity placed us in a really interesting space, an ability to look at affordable housing with clear eyes to see the need and how we might be able to fulfill the need in our own town.”

“Laguna Beach needs more affordable housing, and it needs it for seniors, artists and many others who work lower-wage jobs,” Echols added.

The proposal calls for a mix of studio, one-, two- and three-bedroom apartments that could be homes for extremely low-income households, people with disabilities, and homeless people. In a subterranean parking structure, there would be one space per unit and another 41 spaces for the public and the church.

The new development proposal is a reduction of nearly 40% from an initial proposal last year that would have included 72 units.

The 7,000-square-foot spirit center would be available for community gatherings, weddings, meditation and cultural events.

Under California legislation enacted in 2023, 100% affordable housing projects are exempt from the typical environmental review process, and the law requires the approval process to take place within 90 days of an application being submitted.

Echols said, as with many other churches, Neighborhood Congregational Church has experienced declining membership and its facilities are going underutilized. Over several years, the membership has been thinking about better using the property to “deepen the benefit for the community,” he said.

And, as with many other California cities, Laguna Beach faces state mandates to plan for more affordable housing. The city must plan for and accommodate the development of 394 housing units over the next five years; at least 198 units should be earmarked for lower-income households.

“Only four more years are left,” Echols said. “Our project helps the city fulfill these goals.”

He added that the average rent for a 590-square-foot, one-bedroom apartment in Laguna Beach is approximately $2,600 a month, which he said is 73% higher than the national average rent. He said priority for the new units the project would build would be given to those who work in town.

“Even more than numbers, we understand that safe, affordable housing makes the most dramatic impact on families,” Echols said. “There is a dramatic need in our community for more affordable housing.”

In May, the Laguna Beach City Council identified the church site and the former Ti Amo Restaurant, another city-owned property in South Laguna, as potential locations for affordable housing. Both also appeared in the city Housing Element.

A month earlier, the council had voted to pull money from other housing-related funds to create a trust fund to support affordable development. The new pot of money is meant to help with rent subsidies, accessory dwelling unit development loans and new affordable units.

The city then put out the notice of the new funding opportunity, pledging up to $2.5 million from the housing trust fund to match state grants projects might receive. Developers responded with project proposals to build housing at those two locations.

However, the plan, especially at the church property, drew concern from neighbors who worried about the size of the initially proposed project and its impacts on the neighborhood vibe and their views. They also expressed concern that it would add even more traffic congestion to an already heavily traveled area. There are still signs up opposing the project’s size.

In October, Echols said people representing 200 households within 500 feet of the project attended a meeting about the development. The church has also sent letters to 60 neighbors and emails to 300 residents who have asked to be kept informed. He said he and others have attended 16-plus meetings to familiarize neighbors and interested community groups about the project.

“The feedback we gained has been helpful and made a difference; we heard really good ideas,” he said, adding that a third level was removed from the proposal. “Many of those ideas have been incorporated into our project. The input has yielded a reduction in units by nearly 40%.”

The project will also widen the sidewalks along Glenneyre and create more community space for residents and the public, additional parking and landscaping, he said.

Witte, who said he and his family have lived in Laguna Beach for more than 30 years, said he already has a proven track record of successfully building affordable housing in town, pointing to the 26-unit Alice Court built 21 years ago. The low-income housing is also on Glenneyre Street,  just a few blocks closer to the city’s downtown.

“Because of our local connection, the church decided to work with us,” Witte said, adding that his company has an extensive portfolio throughout the state and has built many affordable housing projects.

“Most people would never know it’s affordable housing,” he said of Alice Court.

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