Santa Monica has approved about 73% of the housing units the state requires it to build by 2029, but fewer than half of the total mandate has actually been constructed, according to new data City Manager Oliver Chi published Tuesday, July 7, 2026.

The city's Housing Progress Dashboard shows 6,449 units approved toward Santa Monica's 8,895-unit obligation under the state's Regional Housing Needs Allocation. Of those, 4,082 are complete. Another 2,311 remain in the approval pipeline, with just 471 under construction.

The gap between paper approvals and physical buildings is the city's central challenge, Chi wrote in his weekly newsletter.

"Our main challenge now is not the approval of housing projects, as evidenced by the 2,311 approved units currently moving through the pipeline," Chi wrote. "Rather, the challenge is the gap between approval and construction, as development costs, financing constraints, and building expenses have stalled market-rate projects across our region."

Off-site program showing early traction

To close that gap, the City Council adopted the Off-Site Affordable Housing Incentive Program as an urgency ordinance on Tuesday, August 12, 2025. The program lets approved market-rate projects consolidate their affordable housing obligations into dedicated 100% affordable buildings built elsewhere, allowing construction to proceed on both the market-rate and affordable projects.

The initial 1,000-unit pilot cap was reached within about seven weeks, prompting the council to make the program permanent. Ordinance No. 2846 passed 5-0 on Tuesday, January 27, 2026, with Councilmembers Zernitskaya, Raskin, Hall, Negrete, and Mayor Torosis voting yes. Councilmember Snell was absent; Mayor Pro Tem Zwick recused herself.

As of a June 25 city summary, 11 projects representing 1,826 previously approved units have opted in. The largest is 2601 Lincoln Boulevard at 521 units. Three of the 11 are already under construction.

Chi wrote that "moving projects into active construction in under a year is meaningful," noting that approved projects across the state are sitting on approvals indefinitely.

Under the program, developers must place $150,000 per off-site affordable unit into escrow before receiving a building permit. If the affordable project doesn't break ground within 48 months, the city keeps the money.

The numbers in context

Santa Monica's 6th Cycle RHNA obligation of 8,895 units covers the 2021–2029 planning period, with nearly 6,200 required to be deed-restricted affordable, according to the city's certified Housing Element. The city's existing housing stock is roughly 53,000 units.

The 6,449 approved-unit count excludes projects that refiled under the off-site program to avoid double-counting, Chi noted.

Of the 2,311 pipeline units, the affordability breakdown is: 105 very low income, 155 low income, 107 moderate income, and 1,944 above moderate income.

Separately, the city is accepting written comments on a proposed Affordable Housing Integrity Ordinance through Tuesday, July 15, 2026, at [email protected]. The Housing Progress Dashboard is publicly available on the city's website.