Understanding Affordable Housing in Costa Mesa’s Fairview Redevelopment

September 26, 2025

Understanding Affordable Housing in Costa Mesa’s Fairview Redevelopment

The Fairview redevelopment plan in Costa Mesa represents a transformative approach to mixed-income communities, incorporating both rental and for-sale housing with a significant affordable housing component. Currently, the project is in the Specific Plan phase, with details expected to be finalized by late 2026.

For property owners, tenants, and investors, understanding the Fairview development’s affordable housing structure is critical. True Property Management provides expertise on navigating such projects and the local regulations that govern them. Learn more about our property management services in Costa Mesa for investors and tenants.


Affordable Housing Details

The affordable housing component of the Fairview redevelopment is guided by Costa Mesa’s 6th Cycle Housing Element and its recently adopted affordable housing ordinance.

Overall Affordable Housing Targets

  • 40% of total units are expected to be affordable.
  • Based on initial estimates of 2,300 units, though newer concepts explore up to 4,000 units.

Affordability Levels

The units will cater to households at varying income levels:

Income LevelAMI %Estimated Units
Very-Low IncomeUp to 50%575 units
Low Income51–80%345 units
Moderate Income81–120%690 units

Special Needs Housing

The Fairview plan prioritizes housing for individuals with developmental disabilities. This includes:

  • Deed-restricted housing for those with special needs.
  • Authorization for up to three complex needs homes, housing 15 individuals on a transitional basis.

For additional guidance on local affordable housing regulations, True Property Management offers a dedicated resource page.


Inclusionary Zoning and Rental Units

Costa Mesa’s inclusionary zoning ordinance requires developers with 50+ units to set aside a portion as affordable, varying by project density. The Fairview redevelopment will incorporate a substantial number of rental units, particularly among the affordable inventory.

Key Features

  • Mixed-use community: Combining rental and for-sale housing for a balanced, mixed-income neighborhood.
  • On-site production requirement: Rental projects over 50 units must include affordable units for very-low and low-income households.
  • Affordable rents: Units are income-based, ensuring accessibility for residents at different income levels.

An adjacent example, Harbor Village Apartments, demonstrates the success of mixed-income rental housing. Developed partly on state land, it includes market-rate and subsidized units, with 10% allocated for individuals with developmental disabilities.

For investors interested in affordable rental properties, our investment property management page outlines best practices for long-term profitability while complying with housing laws.


How Affordable Housing Rents Are Stabilized

Affordable housing units follow specific income-based regulations rather than standard market-rate dynamics:

  • Income-based limits: Rents are calculated using Area Median Income (AMI) and household size, typically capping rent at 30% of income.
  • Long-term affordability: Legal deed restrictions often maintain affordability for 55 years or more.
  • Exempt from local rent ordinances: The Fairview project’s units are exempt from Costa Mesa’s general rent control laws and the statewide AB 1482 rent cap because their rents are already regulated.

Costa Mesa Tenant Protections

Even though deed-restricted affordable units are exempt from rent control, tenants benefit from additional protections:

  • Just Cause Eviction: Landlords must provide a legal reason for terminating a tenancy after a certain period.
  • Tenant Relocation Assistance: For “no-fault” evictions (e.g., demolition or renovation), landlords are required to assist with relocation, as outlined in state law.

These protections, combined with regulated, income-based rents, ensure that tenants in the Fairview affordable units remain shielded from market-rate rent fluctuations.


Final Thoughts

The Fairview redevelopment reflects Costa Mesa’s commitment to inclusive, mixed-income communities. For tenants, it guarantees long-term, affordable housing options with strong legal protections. For investors and property owners, understanding the nuances of these affordable housing programs is essential to navigating compliance, maximizing returns, and contributing to the community.

True Property Management helps both tenants and property owners understand and manage affordable housing effectively. Explore our full suite of property management services to learn more.

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If you’re seeking a trusted partner for property management in Newport Beach, look no further than True Property Management. Request a free rental analysis today to discover your property’s true earning potential, and let their experienced team handle the rest.

Kurt Galitski- Principal, Broker

(949) 688 7705 | DRE #: 01348644

2919 Newport Blvd, Newport Beach, CA 92663