Nestled in the rolling hills of Orange County, California, Laguna Hills is a picturesque suburban city known for its scenic beauty, safe neighborhoods, and strong community spirit. However, like many cities across California, Laguna Hills faces a pressing challenge: providing affordable housing to meet the diverse needs of its residents. With housing costs soaring in Southern California, affordable housing initiatives have become a critical focus for local leaders, planners, and community members. As of March 27, 2025, Laguna Hills is actively working to address this issue through innovative policies, community engagement, and strategic planning. This blog post explores the current state of affordable housing in Laguna Hills, the initiatives driving progress, and the broader implications for the city’s future.
The Housing Crisis in Context
California’s housing crisis is no secret. A combination of high demand, limited supply, and rising construction costs has made it increasingly difficult for low- and moderate-income families, seniors, and young professionals to find affordable places to live. In Laguna Hills, this challenge is compounded by its location in Orange County, where median home prices often exceed $1 million, and rental rates are among the highest in the nation. According to recent data, the fair market rent for a two-bedroom apartment in the area hovers between $2,505 and $3,061 per month—far out of reach for many working households.
The state’s Regional Housing Needs Assessment (RHNA) process has further highlighted the urgency of the situation. For the 6th Housing Cycle (2021–2029), Laguna Hills has been tasked with planning for 1,985 new housing units across various income levels. This allocation reflects the city’s “fair share” of the region’s housing needs, as determined by the Southern California Association of Governments (SCAG). Meeting this goal requires not only creativity but also a commitment to balancing growth with the city’s cherished character.
Laguna Hills’ Housing Element: A Blueprint for Action
At the heart of Laguna Hills’ affordable housing strategy is its Housing Element, a mandatory component of the city’s General Plan. Updated every eight years as required by state law, the Housing Element outlines policies and programs to address housing needs for all segments of the population, from very low-income households (earning less than 50% of the area median income, or AMI) to moderate-income families (earning up to 120% of AMI). For reference, Orange County’s AMI in 2021 was $106,700 for a family of four, though this figure has likely risen with inflation by 2025.
In 2024, the Laguna Hills City Council took significant steps to implement the Housing Element. They adopted Zoning Text Amendment and Zoning Map Amendment No. RZNE-0011-2024, which introduced several key changes:
- Modifying High-Density Residential Standards: The city adjusted development standards in its Mixed-Use (MXU) zoning district to encourage higher-density housing projects, making it easier to build multi-family units that can accommodate more residents affordably.
- Establishing a Housing Overlay Zone: A new Housing (H) Overlay Zone was created, complete with tailored provisions and development standards. This overlay applies to specific sites identified as “Candidate Rezone Sites” in the Housing Element, streamlining the approval process for affordable housing projects.
- Zoning Map Updates: The official Zoning Map was revised to designate these overlay zones, signaling a clear intent to prioritize housing development in strategic locations.
Additionally, the City Council passed Zoning Text Amendment No. RZNE-0012-2024, establishing citywide objective design standards for multi-family and mixed-use developments. These standards aim to ensure that new housing projects are aesthetically pleasing, functional, and consistent with Laguna Hills’ community vision, while avoiding subjective delays in the approval process.
These changes reflect a proactive approach to meeting the RHNA allocation. By removing barriers to development—such as restrictive zoning or lengthy review processes—Laguna Hills is aligning with state laws like the Housing Accountability Act, which limits cities’ ability to deny housing projects that meet certain criteria.
Existing Affordable Housing Options
While Laguna Hills is working toward future growth, it already offers some affordable housing resources. Rancho Moulton, for example, is a family-oriented low-income housing complex subsidized by the U.S. Department of Housing and Urban Development (HUD). Located at 25952 Via Lomas, it provides 51 deed-restricted subsidized units, including 40 two-bedroom apartments, six three-bedroom units, and five four-bedroom apartments. However, demand far exceeds supply, with a reported 10-year waiting list—a stark reminder of the need for more units.
The Orange County Housing Authority (OCHA) also plays a role, administering the Housing Choice Voucher Program (Section 8) in Laguna Hills. This program provides rental assistance to qualified tenants, allowing them to live in privately owned housing. On average, Section 8 vouchers in Laguna Hills cover about $1,400 per month toward rent, with tenants contributing the remainder based on their income. For a two-bedroom unit, the maximum voucher payment aligns with the fair market rent range of $2,505 to $3,061, making it a lifeline for low-income households.
Beyond subsidized options, there are 51 income-based apartments in Laguna Hills, where tenants typically pay no more than 30% of their income toward rent and utilities. These units cater to seniors, families, and individuals with disabilities, offering a small but vital safety net.
Community Engagement and Input
Affordable housing isn’t just a policy issue—it’s a community issue. Laguna Hills has made efforts to involve residents in the planning process, recognizing that local input is essential to crafting solutions that work for everyone. In 2021, the city’s Planning Division launched a survey to gather feedback on how to meet its RHNA goals. Workshops held in 2022, such as those on March 26 and May 3, provided forums for residents to discuss potential housing locations and zoning changes. Presentation boards from these events highlighted opportunity areas, median income trends, and diversity metrics, fostering a transparent dialogue.
This engagement is ongoing. Residents are encouraged to email the Planning Division at planning@lagunahillsca.gov with questions or comments, ensuring that the Housing Element evolves with community priorities in mind. While some residents support affordable housing as a way to keep essential workers—like teachers, healthcare professionals, and service staff—in the city, others express concerns about density, traffic, and preserving Laguna Hills’ suburban charm. Striking this balance remains a key challenge.
Challenges and Opportunities
Building affordable housing in Laguna Hills isn’t without obstacles. High land costs, construction expenses (averaging $500,000 per unit in California), and limited available sites make large-scale projects difficult. The city’s hilly terrain and established neighborhoods further complicate development, as does the need to comply with state environmental and climate goals.
Yet, there are opportunities. The Housing Overlay Zone and streamlined design standards signal a willingness to adapt. Partnerships with nonprofit developers, such as National CORE or Jamboree Housing Corporation (active in nearby cities), could bring expertise and funding to the table. Federal programs like the Low-Income Housing Tax Credit (LIHTC) and state initiatives like the Affordable Housing and Sustainable Communities program offer financial incentives to offset costs. Moreover, Laguna Hills’ proximity to transit and employment centers enhances its appeal for workforce housing—affordable options for middle-income earners who support the local economy.
The Bigger Picture
Laguna Hills’ affordable housing initiatives are part of a broader movement across California to address the housing crisis. The state’s 2025–2027 Statewide Action Plan to Prevent and End Homelessness, unveiled by the California Interagency Council on Homelessness, underscores the urgency of creating affordable homes for all. Locally, these efforts align with Orange County’s push to preserve and expand housing options amid rising costs and gentrification pressures.
For Laguna Hills, success will mean more than just meeting RHNA numbers. It will mean fostering an inclusive community where seniors can age in place, young families can put down roots, and workers can live near their jobs. It’s about ensuring that the city remains a place for everyone—not just those who can afford million-dollar homes.
Looking Ahead
As of March 27, 2025, Laguna Hills is at a pivotal moment. The policies enacted in 2024 are laying the groundwork for tangible progress, but the real test lies in implementation. Will the city secure funding for new projects? Can it navigate community concerns while delivering on its housing promises? The answers will shape Laguna Hills for decades to come.
For residents, staying informed and engaged is key. The city’s website (www.lagunahillsca.gov) offers resources like Ordinance No. 2024-1 and Ordinance No. 2024-2, detailing the zoning changes. Meanwhile, the Planning Division remains a point of contact for those wanting to contribute ideas or learn more.
Affordable housing in Laguna Hills isn’t just about buildings—it’s about people, opportunity, and the future. By embracing innovative initiatives and community collaboration, the city is taking meaningful steps toward a more equitable tomorrow. The journey is far from over, but the path forward is clearer than ever.
