Historic Preservation Package A: Ocean Beach Cottage District Protection at Risk

What is Preservation and Progress Package A?

Preservation and Progress Package A represents Mayor Todd Gloria's attempt to balance historic preservation with housing development goals. The package includes four major components:

1. Updates to Historic Preservation Element of General Plan

The package proposes comprehensive revisions to the city's Historic Preservation Element, the policy framework that guides how San Diego identifies, designates, and protects historic resources. While city officials frame these as "modernization" efforts, critics argue the changes prioritize development over preservation.

2. Changes to Historic Designation Appeal Process

The most controversial component fundamentally alters how property owners and developers can challenge Historic Resources Board (HRB) designations. Currently, the City Council can only overturn HRB decisions if it finds procedural or factual errors. The proposed "de novo" review process would allow City Council to make entirely new determinations based on the same evidence, effectively substituting political judgment for expert architectural and historical analysis.

According to KPBS reporting on the reforms, supporters argue this approach is "more democratic" and allows Council to balance preservation with housing affordability. Critics counter that it "risks allowing City Council to substitute its political judgment for the HRB's expert determination, undermining the professional integrity of the designation process."

3. Amendments to Complete Communities Housing Solutions

Complete Communities Housing Solutions is a city program that offers density bonuses and regulatory relief to encourage housing development near transit and services. Currently, sites within designated historical districts are exempt from Complete Communities rules—except for one notable exclusion.

The Ocean Beach Cottage Emerging Historical District faces unique treatment under the proposed changes. While the 72 designated historic cottages themselves remain exempt, the roughly 3,000 other properties in the neighborhood remain eligible for Complete Communities incentives, creating a patchwork of protections that critics say will enable overdevelopment.

4. Repurposing Historic Preservation Fund

The package redirects funds previously dedicated to general historic preservation toward grants specifically for underrepresented communities. While equity considerations have merit, preservationists worry this reduces overall resources available for maintaining San Diego's architectural heritage.

Ocean Beach Cottage Emerging Historic District: What's at Stake?

The Ocean Beach Cottage Emerging Historic District represents one of San Diego's most distinctive architectural collections. Designated to protect beach cottages and bungalows built between 1887 and 1931, the district encompasses 72 properties designated as contributing resources.

Unlike traditional geographic historic districts that protect all properties within defined boundaries, Ocean Beach's designation is "thematic"—meaning it protects scattered individual cottages united by architectural character rather than a contiguous area. This non-traditional structure has made it vulnerable to policy changes.

Geographic Scope and Boundaries

The district includes properties within the Ocean Beach Planning Area, primarily concentrated in the neighborhood's core residential blocks. Official city mapping shows the distribution of designated cottages, though critics note that early boundary lines were drawn merely to show cottage locations within Ocean Beach, not to create a comprehensive protection zone.

This geographic ambiguity has created confusion about which properties receive historic protections and which remain subject to Complete Communities density bonuses and other development incentives.

The Complete Communities Controversy

A September 2024 case illustrates the stakes. The San Diego Planning Commission unanimously rejected "The Point," a 24-unit apartment project, because Ocean Beach's Historic District provided protection under Complete Communities exemptions. The developers had sought to use Complete Communities rules to bypass local restrictions.

Preservation and Progress Package A would potentially reverse this type of protection, making non-contributing properties within the district boundary vulnerable to similar development proposals.

Property Values in Ocean Beach

Ocean Beach's real estate market reflects its desirability as a coastal neighborhood with distinctive character. According to Redfin's November 2025 data, the median sale price reached $1.2 million, though this represents an 8.2% decline year-over-year—a correction from 2024's peak prices.

The median price per square foot of $747 remains substantially above San Diego County's overall median of $930,000, demonstrating Ocean Beach's premium positioning. However, the 35% year-over-year decline in price per square foot suggests market softening that policy uncertainty could exacerbate.

Research on historic designation generally supports property value premiums. Studies compiled by real estate researchers show that historic designation increases property values by 5-8% on average, with some markets experiencing gains of 19.8-23.7% in slow-growth areas. Even proximity to historic districts adds value—properties see 1.6% price increases for each mile closer to national historic districts.

If Package A strips protections, Ocean Beach homeowners could face a paradoxical situation: losing the value premium associated with historic character while simultaneously experiencing increased development pressure that changes neighborhood appeal.

Mission Hills Historic District: A Different Model at Risk

Mission Hills represents San Diego's more traditional approach to historic preservation, with geographically-defined districts that protect neighborhood character comprehensively rather than thematically.

Mission Hills Heritage Opposition

Mission Hills Heritage, the neighborhood preservation organization, testified strongly against Package A at the January 14 hearing. Their concern centers on the appeal process changes that could allow City Council to override Historic Resources Board designations based on political rather than architectural criteria.

Mission Hills features multiple historic districts including the Mission Hills Historic District and Fort Stockton Line, with Inspiration Heights added to the National Register of Historic Places in December 2021. These designations have helped maintain the neighborhood's character while supporting property values.

Property Values and Mills Act Benefits

Mission Hills historic homes typically command prices from $1.5 million to over $5 million, according to 2025 market analysis, reflecting strong demand for architecturally significant properties near downtown.

Many designated homes qualify for Mills Act property tax savings of 20-70%, providing tangible financial benefits that offset maintenance requirements. Package B, expected later in 2026, will address Mills Act changes—creating additional uncertainty for Mission Hills homeowners who rely on these tax benefits.

Why Mission Hills Homeowners Should Pay Attention

While Package A focuses primarily on appeal processes rather than removing existing Mission Hills designations, the precedent it sets poses long-term risks. If City Council gains authority to override Historic Resources Board decisions, future development-friendly councils could systematically strip protections from Mission Hills and other established historic districts.

Research shows that historic designation provides particular value stability during economic downturns. As one preservation organization notes, "historic landmarks hold their value even in economic downturns"—a compelling benefit during uncertain market conditions.

Community Opposition: 49 Speakers vs. 1

The January 14, 2026 Land Use and Housing Committee hearing revealed the depth of community concern about Package A. Committee Chair Kent Lee and members Stephen Whitburn and Vivian Moreno heard from 49 speakers, with overwhelming opposition to the proposals.

Who Spoke Against Package A?

Save Our Heritage Organisation (SOHO): As California's oldest countywide historic preservation organization, founded in 1969, SOHO brought institutional credibility to opposition testimony. The organization's mission statement emphasizes that "through education, advocacy, and stewardship SOHO's mission is to preserve, promote and support preservation of the architectural, cultural and historical links and landmarks that contribute to the community identity, depth and character of our region."

Mission Hills Heritage: Representatives articulated concerns about how appeal process changes would undermine decades of preservation work and potentially expose Mission Hills' historic districts to political pressure.

Ocean Beach Residents: Community members including local historian Kathy Blavatt (author of works on OB history), Mercy Baron, and Coastal Caretakers representatives testified about the Cottage Emerging District's importance to neighborhood identity.

Their collective concern focused on three core issues:

1. Politicization of Expert Decisions: The de novo appeal process transforms what should be fact-based architectural and historical analysis into political calculations about development pressure versus preservation.
2. Erosion of District Protections: Changes to Complete Communities Housing Solutions treatment of historic districts, particularly Ocean Beach's thematic district, create vulnerabilities to development projects that would have been rejected under current rules.
3. Process Concerns: Critics argued Package A advanced too quickly without adequate community input, particularly given its significant implications for neighborhood character.

The Lone Voice in Support

Only Tyler Martin from the Ocean Beach Planning Board spoke in favor of Package A. Critics characterized Martin as a developer supporting pro-development policies, highlighting the contrast between institutional preservation organizations and individual development interests.

The 49-to-1 testimony ratio underscores the controversy surrounding these proposals and suggests potential political challenges when Package A reaches the full City Council.

Timeline: What Happens Next?

Understanding the legislative timeline is crucial for homeowners making decisions about their properties:

The compressed timeline creates urgency for homeowners in historic districts. Those considering selling face a decision: wait to see how policies change, potentially affecting their property's marketability and value, or act now while current protections and market conditions are known.

How the Historic Designation Appeal Process Works Now vs. Under Package A

Current Process

Under existing rules, the Historic Resources Board (HRB) makes designation decisions based on architectural expertise and established historical criteria. Property owners can appeal HRB designations to City Council, but Council review is limited to identifying procedural errors or factual mistakes. The City Council can only find that "the HRB made procedural or factual errors" or violated its bylaws.

This narrow review standard ensures that political considerations don't override expert architectural and historical analysis.

Proposed Changes Under Package A

Package A introduces "de novo" review, allowing City Council to make completely new determinations using the same evidence the HRB considered. Council members could substitute their judgment about whether a property meets historical criteria, even without architectural expertise.

According to analysis by preservation advocates, this "risks allowing City Council to substitute its political judgment for the HRB's expert determination, undermining the professional integrity of the designation process."

Why This Matters for Property Owners

For homeowners seeking historic designation: The process becomes less predictable. Even if the HRB determines your property meets historical criteria, City Council could overturn that decision based on political considerations like development pressure or constituent complaints.

For homeowners with existing designations: Future councils could use the new appeal process to systematically remove designations, particularly in neighborhoods facing development pressure.

For homeowners opposing designation: The new process provides additional avenues to challenge unwanted historical designations, though this comes at the cost of overall system integrity.

Should Ocean Beach or Mission Hills Homeowners Sell Before the Vote?

The policy uncertainty created by Package A presents Ocean Beach and Mission Hills homeowners with a complex decision-making framework:

Scenario 1: Package A Passes—Protections Weaken

If protections are stripped or weakened:

Potential Negative Impacts:

• Loss of historic character premium (5-8% value reduction based on research)
• Increased development pressure in formerly protected areas
• Changed neighborhood character affecting long-term desirability
• Potential influx of larger multi-family projects under Complete Communities rules

Potential Positive Impacts:

• Greater renovation and expansion flexibility for property owners
• Broader buyer pool including developers interested in density projects
• Reduced maintenance requirements associated with historic designation

Scenario 2: Package A Fails—Current Protections Maintained

If the City Council rejects Package A:

For Properties with Historic Designation:

• Preservation of character-based value premium
• Continued Mills Act tax benefit eligibility (until Package B addresses changes)
• Ongoing renovation restrictions and design review requirements
• Narrower buyer pool limited to those accepting historic designation constraints

For Non-Contributing Properties in Historic Districts:

• Continued uncertainty about Complete Communities applicability
• Potential for future policy changes as development pressure persists

Decision Framework for Homeowners

Consider selling now if:

1. You need certainty: Policy changes could affect both property values and marketability in unpredictable ways
2. You're already considering a move: Acting before policy changes provides a known market environment
3. You want to preserve renovation options: Buyers may discount properties with uncertain regulatory status
4. You're concerned about neighborhood changes: Development pressure is likely to increase regardless of Package A's outcome
5. You have other life priorities: Avoiding the distraction of monitoring ongoing policy battles may be valuable

Consider waiting if:

1. You're committed to neighborhood character: Staying to advocate for preservation may be important to you
2. You value historic designation benefits: Mills Act tax savings and character protections may outweigh uncertainty
3. You expect market appreciation: San Diego's chronic housing shortage suggests long-term value growth despite short-term volatility
4. You can handle regulatory uncertainty: You're comfortable adapting to whatever policy landscape emerges

How Cash Buyers Help Homeowners Facing Policy Uncertainty

Traditional home sales in San Diego's current market face significant challenges. According to recent market data, Ocean Beach homes are taking an average of 44 days to sell compared to 19 days a year ago—more than double the marketing time as the market cools.

Policy uncertainty compounds these challenges. Potential buyers may:

• Demand price concessions to compensate for regulatory risk
• Require extensive contingencies related to future policy changes
• Walk away during escrow if Package A passes and alters their development plans
• Struggle to obtain financing if lenders perceive elevated risk in historic districts

Cash Buyer Advantages in Uncertain Policy Environments

Cash buyers provide several advantages for homeowners in historic districts facing policy uncertainty:

Speed and Certainty: Cash transactions typically close in 7-14 days compared to 30-60+ days for financed purchases. Homeowners can exit before policy changes take effect.

No Financing Contingencies: Lender concerns about historic district regulations or pending policy changes don't affect cash transactions.

As-Is Purchases: Cash buyers typically purchase properties in current condition, avoiding inspection contingencies and repair negotiations that might be complicated by historic preservation requirements.

Simplified Process: Fewer parties involved means fewer opportunities for deals to fall apart due to policy uncertainty.

Professional Evaluation: Experienced cash buyers understand historic district dynamics and can provide fair offers that account for both preservation premiums and regulatory complexities.

When Cash Buyers Make the Most Sense

Cash sales are particularly valuable for Ocean Beach and Mission Hills homeowners who:

• Need to relocate quickly for employment, family, or health reasons
• Want to avoid the stress of monitoring City Council votes and policy implementation
• Are concerned about market softening if Package A passes and alters neighborhood dynamics
• Face properties with deferred maintenance that might complicate traditional sales in historic districts
• Prefer transaction simplicity over potentially higher (but uncertain) marketed prices

Frequently Asked Questions

Conclusion: Navigating Historic Preservation Policy Uncertainty

San Diego's Preservation and Progress Package A represents a pivotal moment for historic preservation in the city. With the City Council vote expected by the end of January 2026, Ocean Beach and Mission Hills homeowners face difficult decisions about their properties' futures.

The 49-to-1 testimony ratio at the January 14 committee hearing demonstrates deep community concern about weakening historic protections, yet the 3-0 committee vote advancing Package A shows political momentum toward policy changes that prioritize housing development over preservation.

For homeowners in historic districts, the dual uncertainty—potentially losing protections that preserve neighborhood character or maintaining restrictions that limit renovation flexibility—creates compelling reasons to evaluate selling options now rather than waiting for policy outcomes to become clear.

Whether Ocean Beach homeowners face stripped protections making their neighborhood vulnerable to development pressure, or Mission Hills property owners worry about precedents that could eventually affect their districts, the policy landscape is shifting in ways that affect both property values and quality of life.

Cash buyers provide a path forward for homeowners who value certainty over speculation about future policy outcomes. As San Diego's housing versus preservation debate continues to evolve, individual homeowners must make decisions based on their own circumstances, timelines, and priorities—with professional guidance from those who understand both real estate markets and regulatory complexity.

The City Council vote in late January 2026 will determine Package A's immediate fate, but the broader policy uncertainty is likely to persist as Package B emerges later in 2026 and San Diego continues grappling with how to balance housing needs with the architectural and cultural heritage that makes neighborhoods like Ocean Beach and Mission Hills distinctive and desirable.