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Creating Housing Options for All — Supporting Our Community, Our Workforce, and Our Future

Costa Mesa is committed to providing housing opportunities for residents at all income levels. In 2024, the City Council adopted a new Affordable Housing Ordinance to ensure that as Costa Mesa grows, it grows in a way that is equitable, sustainable, and aligned with state housing requirements.
This program helps us meet statewide housing goals while protecting the unique character and long-term stability of our community.

What Is an Affordable Housing Program?

An Affordable Housing Program requires certain new residential developments to include rental homes that are affordable to households earning low-income or very low-income wages. These homes look and feel just like market-rate homes but are offered at rental prices that meet state-defined affordability levels.

Costa Mesa’s program applies to rental developments with 50 or more units.
Ownership (for-sale) housing is not included.  Below is a summary of the program requirements.

Affordable Housing Program

Why Costa Mesa Adopted This Program?

Our Community Needs It

A City housing study found that over 47% of Costa Mesa households earn lower incomes, and 29% qualify for very low or extremely low-income housing, but struggle to afford local rents. 

State Housing Requirements

California requires cities to plan for their share of Regional Housing Needs, known as RHNA. For Costa Mesa, this number is 11,760 units across all income levels. Meeting these goals helps the City remain compliant with state law and avoid penalties.

A Balanced, Long-Term Solution

By requiring affordable units within new rental developments, Costa Mesa helps:

  • Provide more housing choices for residents.
  • Support local workers, students, families, and seniors.
  • Reduce overcrowding and overpayment.
  • Promote inclusive, mixed-income neighborhoods.
  • Ensure the City maintains local control over housing decisions.

What the Ordinance Requires

Who Must Comply?

New rental housing projects with 50 or more units.

How Many Affordable Units Are Required?

The number depends on the project’s density (units per acre):

Affordable Housing density

Long-Term Affordability

All affordable units must remain affordable for at least 55 years.

 Fair & Equitable Unit Standards

Affordable units must be:

  • Distributed evenly throughout the project
  • Similar in size (no more than 15% smaller)
  • Proportional in bedroom mix
  • Designed with comparable materials and access to amenities

Alternatives for Developers

Developers may request alternative compliance only if on-site units are found to be economically infeasible:

  • Land dedication
  • Off-site construction of affordable units
  • Payment of in-lieu fees (per square foot of leasable area)

In-Lieu Fees

Developers who receive approval to pay fees instead of building affordable units must pay $10 per square foot of total leasable area in an apartment or for rent development.  These funds go into Costa Mesa’s Affordable Housing Trust Fund, which supports future affordable housing programs, development, and administration.

How This Program Helps Costa Mesa Meet State Housing Requirements (RHNA)

California requires cities to show they have enough sites and policies to meet future housing needs. The Affordable Housing Ordinance is a key part of Costa Mesa’s Housing Element (Program 2A). It helps by:

  • Creating a predictable, consistent way to generate affordable units.
  • Ensuring that nearly all large housing opportunity sites contribute to affordability.
  • Supporting a broader mix of incomes across different neighborhoods.
  • Reducing the need for costly rezoning or loss of local land use control.

When the City examined its 97 “Opportunity Sites,” the ordinance (at its 50-unit threshold) applied to 91% of all potential new housing units.

Benefits to the Community

For Families & Residents

  • More rental options at prices that match the incomes of teachers, nurses, young professionals, seniors, and essential workers.
  • Reduced housing cost burden and improved stability.
  • Inclusion in high-opportunity neighborhoods with access to parks, schools, and community services.

For the City

  • Supports compliance with state housing mandates.
  • Helps maintain local authority over zoning decisions.
  • Encourages high-quality mixed-income developments.
  • Promotes balanced growth and prevents displacement.

For the Local Economy

  • Supports businesses by ensuring employees can live near where they work.
  • Strengthens economic diversity and long-term community vitality.

Where Can I Learn More?

  • Affordable Housing Ordinance (2024-02)
    Full ordinance language can be found here:  Resolution 2024-10

Contact Us

For questions about the Affordable Housing Program, compliance, or development:

Economic & Development Services Department
City of Costa Mesa
(714) 754-5245