Posted October 21, 2026 | By Eric Engelbert | Updated as the project progresses.

For more than two decades, Laguna Beach has not built a single 100% affordable housing development. That is about to change at 340 St. Ann's Drive, where Related California is planning 28 affordable apartments plus a manager's unit on land leased from the Neighborhood Congregational Church, a few blocks from Laguna Beach High School and the Coast Highway trolley.

The Planning Commission approved the project unanimously on June 3, 2026, and in July the City Council committed about $6.71 million to help finance it. The church sanctuary and its Montessori school stay; the new building replaces only the parsonage and a surface parking lot.

This post covers what is planned, who it is for, rents and income limits, the approvals and financing, and how it fits Laguna Beach's 394-home state housing mandate.

October 2026 Update: Approved, Waiting on Tax Credits

Topic	Latest
Planning approval	Approved 4-0 by the Planning Commission on June 3, 2026 (design review and coastal permit)
City Council	Approved the lot merger and coastal permit in summer 2026; committed about $6.71 million on July 15, 2026
Financing	Related applied for state and federal low-income housing tax credits by the July 21, 2026 deadline; the next round is not until 2027
Tax credit award	Not confirmed as of October 2026
Construction	Earlier estimates targeted a start as early as December 2026 if financing comes together
Applications	Not open; no leasing or waitlist information has been released

Want to know when applications open? Email us with the subject "340 St. Ann's" and we will let you know as soon as Related or its property manager announces how to apply.

What Is Planned at 340 St. Ann's Drive

29 Apartments28 affordable
1 manager's unit

Three StoriesAbout 30,690 sq ft

41-Stall GarageParking under the building

Church StaysSanctuary, Bridge Hall, and Montessori school remain

Item	Detail
Address	340 St. Ann's Drive, Laguna Beach, CA 92651
Developer	Related California (Newport Beach)
Architect	KTGY
Landowner	Neighborhood Congregational Church, leasing the land for the project
Apartments	28 deed-restricted affordable rentals plus 1 manager's unit
Building	Three stories, about 30,690 sq ft, with a 41-stall garage
Replaces	The church parsonage and a surface parking lot
Lots	Four parcels merged into two: one for the church, one for housing
Zoning	Local Business Professional and R-2; Housing Element Site #1
Approval law	Affordable Housing on Faith and Higher Education Lands Act of 2023 (SB 4)
Affordability term	55 years
Traffic	About 140 daily vehicle trips, per the project's traffic analysis

Related California has a history in town: it built Alice Court, an earlier Laguna Beach affordable project, more than 20 years ago, and its founder is a longtime Laguna Beach resident. The plan was scaled back from earlier, larger versions after neighborhood feedback and a 44% cut in federal affordable housing funding, and Related chose to keep the church and school in place rather than rebuild them.

Who It Is For: Income Levels and Rents

Income Level	Apartments	Income Limit
Extremely low income	9	Up to 30% of Area Median Income
Very low income	3	Up to 50% of Area Median Income
Low income	16	Up to 60% of Area Median Income
Manager's unit	1	Not income-restricted
Total	29

Figure	Amount (as presented in January 2026)
Target household incomes	About $33,550 to $109,680 per year
Planned rents	About $888 to $2,640 per month
Area Median Income	About $138,600 for a four-person household

The church has said the apartments are intended to give preference to people who work in Laguna Beach, including local workers, seniors, artists, and families. Final eligibility rules, preferences, and rents will be set in the regulatory agreement and published when leasing opens.

How to apply: Applications for affordable apartments go through the developer and its property manager, not through a real estate agent. Applicants must document their income. Nothing is open yet, so the best step now is to watch for the announcement and have income documents ready.

How It Is Being Financed

Source	Amount
State Local Housing Trust Fund grant (HCD)	$2.5 million
City matching funds	$2.5 million
Fee waivers	Up to about $740,000
Total city commitment (including deferrals and a reduced gap loan)	About $6.71 million
Related's original request	$8.25 million
Primary financing	Low-income housing tax credits and a bank loan

The council's July 15, 2026 vote was unanimous. The city attorney reminded the council that the Housing Element contains enforceable programs and that falling short on affordable housing has consequences, including exposure to the Builder's Remedy. Once tax credits are awarded, staff will bring back final loan documents and a regulatory agreement before construction can start.

Timeline

Date	Milestone
January 2023	City's Housing Element names 340 St. Ann's Drive as Site #1 for about 31 lower-income homes
December 2025	City receives a $2.5 million state Local Housing Trust Fund grant
January 22, 2026	Community meeting at the church draws about 75 people
June 3, 2026	Planning Commission approves design review and coastal permit 4-0
July 15, 2026	City Council commits about $6.71 million; Notice of Determination filed
July 21, 2026	Tax credit application deadline
Next	Tax credit award, final loan and regulatory agreements, then construction

Why It Matters for Laguna Beach

Laguna Beach must plan for 394 new homes by 2029, including 198 for extremely low, very low, and low-income households. With seven miles of coastline, 23,000 acres of preserved open space, and very little buildable land, the city's plan relies on a handful of sites like this one. 340 St. Ann's is the first of those sites to win approval and the most advanced affordable project in town. Read more in our Laguna Beach housing mandate post and our Downtown Specific Plan Phase II post.

If You Are...	What It Means
A local worker, senior, or artist	A rare chance at a below-market apartment in Laguna Beach; watch for the application announcement
A neighbor	A three-story, 29-unit building with an underground garage and about 140 daily trips, replacing a parsonage and parking lot
A homeowner elsewhere in town	Progress on affordable housing helps keep the city in compliance and reduces Builder's Remedy risk
A buyer	Laguna Beach's constraints on new housing remain; this project does not change the scarcity that supports values

Questions About 340 St. Ann's or Laguna Beach Real Estate?

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