Redevelopment plan to be submitted for Neighborhood Congregational Church site in Laguna Beach

After years of discussion surrounding what the future of the Neighborhood Congregational Church in Laguna Beach could look like, those close to the transformational project say they are prepared to submit an application for entitlements to the city.

The planned mixed-use development would put a 44-unit affordable housing complex on the lot, which represents a reduction of nearly 40% from the original plan for 72 units. There will also be a new spiritual center of approximately 7,000 square feet and a subterranean parking structure.

Bill Witte, the chairman and chief executive of Related California, said the project would likely be submitted to the city on Monday under the guidelines of California Senate Bill 4, legislation enacted in 2023 that streamlines housing development on certain sites, such as churches, and exempts them from environmental review.

“This applies to sites owned by either religious or educational institutions and that must be 100% affordable housing,” Witte said of the legislation. The law calls for the approval process to take place 90 days after application submission, he explained.

Critics of the project had expressed concerns over neighborhood compatibility. Keith Labus, the principal architect with KTGY, said the project was downsized in response to the community’s input.

“After receiving feedback from the community, and specifically our adjacent neighbors through a combination of both public and private meetings, we arrived at this final design, which is 44 units and has removed the [earlier proposed] entire third floor of the residential footprint of the building,” Labus said. “Also, to visually kind of reduce the scale of the building further, we’ve used three distinct architectural styles, so the building will appear to be three separate smaller developments.”

The spiritual center will be given “modern character,” Labus said, while a “beach cottage style” has been planned for the residential building.

Community outreach has included a hand-delivered letter to 60 neighbors, a project website, nccproject.org, and more than a dozen meetings with neighbors and community groups. More than 200 people attended a community meeting on Oct. 7 after notice was given to households within 500 feet of the project.

There would be one parking space per unit, plus spots for on-site management, Witte said. An additional 41 spaces on the premises could be sold to the city for permanently owned public parking.

The target household income levels fall between $33,000 and $117,000, depending on family size, while rents will range from $800 to $2,500. Priority access to the affordable residential units would be given to people who work in Laguna Beach.

Per the Regional Housing Needs Assessment, Laguna Beach must plan for 394 additional housing units in the current housing cycle that ends in 2029.

“From a planning point of view, it’s almost a caricature of a perfect location because it’s across the street from a supermarket, it’s two blocks from the ocean, you can walk everywhere in town,” Witte said. “The high school is nearby, also in walking distance. … To compete for these tax credits, you have to pass a threshold test of proximity to amenities.”

If an application for tax credits is successful following the city’s approval process, Witte said it is “plausible” that construction could begin in April 2026.

“Most of the affordable housing in California, if not all, is funded with the help of low-income housing tax credits, which are administered by the state and for which there are competitive application processes a couple times a year,” Witte said. “Tax credits would provide, by far, the biggest source of funds to build the affordable housing. In order to compete as a project eligible for families, at least half the units must have two- and three-bedroom units. Family projects are slightly easier to gain access to funding for than just senior projects.”

Pastor Rodrick Echols of the Neighborhood Congregational Church said “declining membership, dwindling financial resources, and aging structures” on the campus drove the institution to think about its future. Echols said church membership had three goals: to remain a spiritual community in Laguna Beach, to provide a community benefit that meets a need and to be financially stable.

“We’ve had this dream to create a place … in Laguna Beach focused on love and justice while also promoting economic equity,” Echols said. “That commitment to economic equity placed us at a really interesting space, an ability even, to look at affordable housing with clear eyes, to see the need and to see how we might be able to help fulfill that need right here in our town.

“Laguna Beach needs more affordable housing, and it needs that housing for seniors, artists and many others who work low-wage jobs here in town.”

Echols added that the spiritual center will not only allow for continued meetings of the congregation, but it will also provide greater flexibility for community groups looking to put on events.

Alice Court, a 27-unit senior affordable housing development at 450 Glenneyre Street, was also a Related California project. It was completed in 2004.